CUSTOMS

BAF III – BAF 306 Public Finance & Taxation II (Dec, 2023)
 5.0 Introduction to Customs
 Introduction;
 meaning and sources of customs laws,
 Import and Export procedures,
 Interactive QnA
Complete the following Task before our session starts 0730hrs
i. Download the East Africa Community Customs
Management Act 2004 R.E 2017
ii. Brief understand the History of East Africa Community,
• When was it established and founding member states
• State the current number of EAC members and their names
• Aims of Establishing EAC
 Introduction
 The Meaning under the EACCMA, 2004: Section 2(1):
Customs means the customs departments of the
Partner States
 Tasks of Customs:
i. Ensuring that cross-border flows of goods
ii. Ensuring that cross-border flows of people
iii. Ensuring that cross-border flows of means of
transport
All these tasks must comply with laws and regulations
embodied in Customs legislation, other legislation or
international instruments it is empowered to administer
 Importance/Contribution of Customs
 Contributes to national economic prosperity (through
fair and accurate revenue collection)
 Economic development (through trade facilitation),
 Public health and safety (through suppression of illicit
trade), and
 National security (through prevention and detection of
smuggling of restricted, prohibited and strategic goods).
 Customs and excise department of Tanzania
• Customs and excise department of Tanzania Revenue
Authority is under the Commissioner for Customs
• Department collects all import and export taxes, these
taxes include;
i. excises duties,
ii. value added tax on imports,
iii. import duties
iv. export duties and
v. Railway and Development Levies
 meaning and sources of customs laws
• Section 2 of the EACCMA, 2004 [R.E] defines Customs
law inclusively to encompasses;
i. the Act itself,
ii. Acts of the Partner States and of the Community
relating to Customs,
iii. relevant provisions of the Treaty,
iv. the Protocol,
v. regulations and directives made by the Council and
vi. relevant principles of international law.
 Sources of Customs Law in EAC
Sources of Customs Law in EAC includes;
i. Treaty for the Establishment of the East African Community
ii. The Protocol on the Establishment of the East African
Customs Union, 2004 and its Annexes
iii. Regulations and Directives made by the Council e.g. The
East African Community Customs Management
(Compliance and Enforcement) Regulations, 2012.
iv. Applicable Decisions Made by the Court (Case
Laws/Precedents)
v. Acts of the Community enacted by the Legislative Assembly
e.g. The East African Community Customs Management
Act, 2004 [R.E].
vi. Relevant Principles of International Law, e.g. Revised KYOTO
Convention and The Nairobi Convention
 Import and Export procedures
Under the EACCMA, 2004: Section 2(1)
• “import” means to bring of cause to be brought into the
Partner States from a foreign country;
• “export” means to take or cause to be taken out of the
Partner States;
• There are various Customs formalities to ensure
compliance with Customs law such as report to the
proper officer on the prescribed form and in the
prescribed manner (customs forms visit below link)
• https://www.tra.go.tz/index.php/forms/150-customs-forms
 Importation
• On arrival all cargo of an aircraft, vehicle or vessel which is unloaded must
be declared to customs in a prescribed form indicating the appropriate
customs regime within 21 days after the commencement of discharge
or such further period as may be allowed.
• The goods should be entered either for home consumption, transit,
transhipment, warehousing or to an Export Processing Zone.
• Where there is insufficient information, the declaration may be made
on provisional status subject to approval by the proper officer.
• Where provisional entry has been allowed, the proper officer will require
the owner to deposit an amount estimated as the duty payable.
• Where goods have not been entered for clearance within 21 days, they
will be deemed as deposited in a customs warehouse where rent will
be charged at the prescribed rates.
• Where goods are not removed from the customs warehouse within the
notice period granted by Customs, they may be sold by public auction to
recover customs duty and warehouse rent payable on them
 Exportation
• Prohibited goods shall not be exported and restricted
goods may only be exported subject to compliance with
certain requirements and authorization.
• All goods for export must be declared in a prescribed form
• Exports must only leave through authorized ports, airports or
exit routes.
• All vehicles, aircraft or vessels must obtain clearance from
the proper officer prior to departing for foreign.
• All export cargo should be duly declared to Customs
supported by documentary evidence.
• All cargo entered for export should be exported within thirty
days from the date of entry or such further period as the
Commissioner shall allow.
 Forum Discussion
1. According to EACCMA differentiate between prohibitions
and restrictions goods. For each provide at least ten
examples lastly discuss the Reasons for imposition of
Prohibitions or Restrictions.
2. Differentiate between Certificate of Exports and Certificate
of Origin
3. Differentiate between Bonded Warehouse and Custom
Warehouse
 Forum Discussion
4. Warehousing is the practice of storing, holding and handling
goods in a warehouse. A customs bonded warehouse is a
warehouse licensed by the Commissioner of Customs for the
storage of goods imported into the region pending the
payment of duties. The goods are stored in the joint custody of
the bonded warehouse keeper and customs.
Required:
i. What are the benefits of using a Customs Bonded
Warehouse?
ii. How many types of bonded warehouses are there? Describe
them.
iii. What are Duties of the warehouse Keeper?
THANYOU
END