TANZANIA SIGNS UP FOR CUSTOMS DEAL

Tanzania has joined Kenya, Uganda and Rwanda in fast tracking the movement of goods along the main corridors (Northern and Central) under the Customs seals in the Comesa region.

This follows the signing of an inter-surety agreement by Tanzania’s National Insurance Corporation (NICT) to join Comesa Regional Transit Guarantee (RCTG) scheme thereby allow the country to issue regional Customs bond guarantees.

The RCTG Scheme is a Customs transit regime designed for the ease of movement of goods under Customs seals in the Comesa region and to provide the required Customs security and guarantee to the transit countries.

The scheme ensures that Customs in a transit country receive proper payment for dues and duties for any goods in transit.

Bonds or guarantees are given by the owner of goods or their agents to the benefit of the Customs of the country of transit.

“This will now enable the NICT to issue regional Customs transit bonds as part of the national chain of sureties that are signatories to the Inter Surety Agreement,” said NICT acting managing director Sam Kamanga.

Tanzania Revenue Authority has already configured its national IT system.

Last year, Uganda, Kenya and Rwanda started using the Comesa Customs bonds scheme after the rollout of the EAC Single Customs Territory.

READ: Comesa bond scheme speeds up transit of goods in Northern Corridor

The rolling out of the RCTG on the Northern Corridor from Mombasa to Kampala and Kigali has reduced transit time from an average of 21 days to four days.

Trucks with RCTG spend about 30 minutes on both sides of the border post in contrast to an average of two days for trucks that are not in possession of a single regional transit Customs bond guarantee.

“A three-day delay in clearing a transit truck at a border post added $1,500 to the cost of doing business,” said Comesa Secretary General Sindiso Ngwenya.

“The implementation of the RCTG aided by a virtual trade facilitation system that integrates all trade documents and different Customs authorities in real time on the basis of a single sign would significantly reduce trade costs and enhance the competitiveness of economies,” he added.

Comesa regional bonds scheme has so far generated premium incomes of over $600,000 from sureties covering 194 clearing and forwarding agents across the three East African countries. It was fixed at 0.5 per cent — a reduction from the initial 0.75 per cent.

The RCTG was introduced in 2012 on the Northern Corridor to ease movement of goods from Mombasa to the landlocked countries in the region.

Rwanda, which has already converted all local transit bonds into RCTG, is the stand-out performer, while Uganda has embarked on a similar process, accommodating both small operators and big businesses.

The scheme will be rolled out in the Central corridor, which covers Tanzania, Burundi and DRC. However the North-South Corridor countries are still held back by key member states like Zambia not ratifying the RCTG agreement.

The Ethiopia-Djibouti corridor is still experiencing challenges relating to the sharing of premiums on RCTG bonds.

The East African