FEAR OVERWHELMS BEVERAGE MAKERS

Dar es Salaam. Major beverage companies may be forced to halt production due to hurdles in clearing industrial sugar at the Dar es Salaam Port.

The firms include Coca-Cola Kwanza, Bonite Bottlers and Nyanza Bottlers, according to information obtained by The Citizen from the Confederation of Tanzania Industries (CTI).

Reasons for the delay could not be immediately established, but a CTI official appeared to point an accusing finger at the Sugar Board of Tanzania (SBT) and the Tanzania Revenue Authority (TRA).

CTI policy and advocacy acting director Akida Mnyenyelwa confirmed on Tuesday that beverage firms were facing hurdles in clearing their industrial sugar consignments, mainly due to delayed issuance by SBT of permits.

Reached for comment, an SBT official, who asked not to be named because he was not authorised to speak to the media, said: “Some procedures are yet to be finalised before permits for the imported industrial sugar are issued.

“The consignments will be released as soon as possible because the government is aware that they are needed urgently by those who imported them.”

The source further said SBT and CTI officials had been meeting under the auspices of the Ministry of Industry, Trade and Investment.

Mr Mnyenyelwa said Nyanza Bottlers’ uncleared consignment was 1,450 tonnes, while that of Bonite Bottlers was 650 tonnes.

“We urge the government to speed up the process of verifying the consignments so that they can be released to avert possible cessation of production,” he said, adding that “CTI is in constant communication with ministry officials on the matter. 

We’re optimistic that the government will accord our concerns the seriousness they deserve.”

According to Mr Mnyenyelwa, the beverage producers had complied with all conditions of importing industrial sugar as per procedures and regulations spelt out under the East African Community Import Duty Act of 2004.

He said TRA had already conducted verification to determine whether the imported sugar was for industrial or domestic use.

TRA taxpayer services and education director Richard Kayombo said yesterday that he was not aware of the matter.

“The matter has yet to be brought to the attention of my office. I would like to advise manufacturers and other importers to let us know if they face any hurdles in the process of importation so that solutions can be found quickly,” he said.

The Citizen has learnt that manufacturers are required to seek clearance from TRA’s duty elimination scheme before the list of applicants is forwarded to the EAC Secretariat, ready for publication in the bloc’s gazette.

SBT levies an import charge of $6 (Sh13,440) on every tonne of industrial sugar.

Tanzania consumes about 170,000 tonnes of industrial sugar annually, and the country is a net importer of the raw material.

Domestic sugar production

Addressing a rally at Kagera Sugar Company premises in Misenyi District, Kagera Region, earlier this month, President John Magufuli directed the Ministry of Industry, Trade and Investment to assign employees behind irregular issuance of import permits other duties.

“They can be assigned other duties such as issuing permits for other agricultural products,” he said.

The Head of State also challenged local manufacturers to increase production to cut the deficit of sugar for domestic use currently standing at over 120,000 tonnes.

Tanzania has four major sugar producers, namely Mtibwa and Kilombero, both in Morogoro Region; Kagera Sugar in Kagera Region and TPC in Kilimanjaro Region.

The four factories’ combined annual capacity is 300,000 tonnes, against the national demand of 420,000 tonnes.

Source: The Citizen