ii

ASSESSMENT OF THE IMPACT OF AUTHORIZED

ECONOMIC OPERATORS (AEOs) PROGRAM IN TRADE

FACILITATION IN TANZANIA

A Case Study of Dar Es Salaam Port

Pamella Charles Ringo

Master of Arts in Revenue Law and Administration (MARLA)

University of Dar Es Salaam

May, 2025
 iii

CERTIFICATION

The undersigned certify that he has read and hereby recommend for acceptance by the
University of Tanzania a Graduate Essay titled: ”Assessment of The Impact of the
Authorized Economic Operators (AEOs) Program In Trade Facilitation In Tanzania:
A Case of Dar Es Salaam Port” in partial fulfilment of the requirements for the award
of the degree of Master of Arts in Revenue Law and Administration (MARLA) of the
University of Tanzania.

………………………………….…………….

Name: Dr. Amos Ibrahim

(Supervisor)

Date:…………………………………….
 iii

DECLARATION AND COPYRIGHT

I, Pamella Charles Ringo, declare that this Graduate Essay is my own original work and
that it has not been submitted and will not be presented to any other University for a
similar or any other degree award.

……………………………….

Signature

Copyright ©

This Graduate Essay is copyright material protected under the Berne Convention, the
Copyright Act 1999 and other international and national enactments in that behalf on
intellectual property. It may not be reproduced by any means in full or in part except for
short extracts in fair dealings for research or private study, critical scholarly review or
disclosure with an acknowledgement without written permission of the Director of
Postgraduate Studies ,on behalf of both the author and the University of Dar-es-Salaam.
 iv

ACKNOWLEDGEMENT

It is with great humility and gratitude that I have managed to finish this research with
the grace of God. He has brought to my favor many people who gave me the aid I
needed to complete this research, without which my efforts would not have sufficed. I
want to express my sincere gratitude to all those who contributed to the successful
completion of this research.

First and foremost, I want to thank my supervisor, Dr. Amos Ibrahim, for his invaluable
guidance, unwavering support, and insightful feedback throughout the research process.
His expertise and encouragement were instrumental in shaping the direction and
outcome of this study. He made time for consultations despite his responsibilities, and
his wise recommendations aided this study in reaching its academic potential.

I want to thank my family for their support, tolerance during the time spent away from
them, and encouragement during the entire research process.

I am also immensely grateful to the Tanzania Revenue Authority (TRA) for their
cooperation and access to vital information, particularly to the team in charge of the
AEO program for their assistance. I want to acknowledge the time and insights shared
by the customs officers, AEO-registered importers and exporters, and non-AEO
importers and exporters in Tanzania who participated in the surveys and interviews
conducted during the study. Your contributions were crucial in understanding the
challenges and opportunities associated with the Authorized Economic Operator
program.

Special thanks are due to Miss Millen Charles Mwaifani for her comprehensive support
during this research. Her technical expertise, diligent proofreading, and the emotional
encouragement she provided were all greatly valued and essential to the project's
success.
 v

DEDICATION

I'm happy to take this chance to dedicate this work to my dear children, Arianna and
Allen, my greatest treasures. You are the reason I strive to learn and grow. This research
is a small part of the journey I hope to share with you, filled with curiosity, discovery,
and the unwavering belief that you can make a difference. I dedicate this to you, with all
my love.
 vi

LIST OF LEGAL INSTRUMENTS

INTERNATIONAL INSTRUMENTS
World Customs Organization (WCO) Framework of Standards to Secure and Facilitate
Global Trade
World Trade Organization (WTO) Trade Facilitation Agreement
Customs Cooperation Council (CCC) Convention On International Trade In Endangered
Species

REGIONAL INSTRUMENTS

The East African Community Customs Management Act (EAC CMA)

EAC Protocol on the Establishment of the Customs Union

DOMESTICS INSTRUMENTS
The Constitution Foundation for Tanzania
The Tax Administration Act

GUIDELINES
EAC AEO Standard Operating Procedures
EAC Regional AEO Procedural Manual
 vii

LIST OF ABBREVIATIONS & ACRONYMS

AEOs Authorized Economic Operators

CITES Convention on International Trade

CCC Customs Cooperation Council

TFA Trade Facilitation Agreement

WTO World Trade Organization

WCO World Customs Organization

EAC The East African Community

MRAs Mutual Recognition Agreements

TRA Tanzania Revenue Authority

ICD Inland Container Depot

 viii

ABSTRACT

AEO program is a strategic trade facilitation initiative implemented by the TRA under
the WCO framework. Its primary objectives are to simplify, modernize, and secure the
international trade supply chain through mutual recognition of compliant traders,
reduced customs intervention, and enhanced predictability in clearance procedures.
AEO-certified traders have benefited from expedited clearance, fewer inspections, and
improved access to customs services.

This study looks at the effect that the Tanzania Revenue Authority's (TRA) Authorized
Economic Operators (AEO) program has on the Customs and Excise Department's
ability to facilitate trade in Tanzania. The study looks at whether the program has
succeeded in raising compliance levels among traders, which ultimately enhances
revenue-generating measures in customs in Tanzania.

The sampling methodology used was simple random sampling to attain quantitative
data and purposive sampling for qualitative data.

Despite the robust policy framework of the AEO program in Tanzania, the study
findings reveal notable gaps in its operational effectiveness. While the program's
theoretical goals are aligned with international best practices, its implementation on the
ground faces several challenges that undermine its efficiency and intended benefits.

The conclusion made from the study affirms that the AEO program has had a positive
yet uneven impact on trade facilitation in Tanzania. While the program’s design meets
international best practices and offers considerable benefits to certified participants, its
implementation in the Tanzanian context remains a work in progress. Structural
limitations, inconsistent coordination among key agencies, and insufficient
infrastructure undermine the program’s overall effectiveness.
 ix

From the study’ conclusion, The TRA should extend the AEO program to more
companies, especially small and medium-sized firms (SMEs), in light of the program's
effectiveness in enhancing compliance and trade facilitation. The TRA can expand the
advantages of the AEO program and strengthen the country's trade facilitation efforts by
providing these importers and exporters with specialized assistance.

TABLE OF CONTENTS

Certification.......................................................................................................................ii
Declaration and Copyright...............................................................................................iii
Acknowledgement............................................................................................................iv
 x

Dedication..........................................................................................................................v
List of Legal Instruments.................................................................................................vi
List of Abbreviations & Acronyms.................................................................................vii
Abstract..........................................................................................................................viii
Table of Contents.............................................................................................................ix

CHAPTER ONE..............................................................................................................1
INTRODUCTION...........................................................................................................1
1.1 Background to the problem...................................................................................1
1.2 Statement of the problem.......................................................................................2
1.3 Objectives of the study..........................................................................................4
1.3.1 General objective...................................................................................................4
1.3.2 Specific objectives.................................................................................................4
1.4 Research Questions..............................................................................................4
1.5 Significance of the Study.......................................................................................4
1.6 Scope of the Study................................................................................................5
1.7 Research Methods.................................................................................................5
1.7.1 Research Design....................................................................................................5
1.7.2 Area of the Study...................................................................................................5
1.7.3 Population of the Study.........................................................................................6
1.7.4 Sample and Sampling Techniques.........................................................................6
1.8 Data Collection Procedure.....................................................................................6
1.8.1 Primary Data.........................................................................................................6
1.8.2 Secondary Data......................................................................................................7
1.9 Literature Review..................................................................................................7
1.9.1 Introduction...........................................................................................................7
1.9.2 Empirical Studies...................................................................................................8
1.9.3 Research Gap.......................................................................................................10

CHAPTER TWO...........................................................................................................12
 xi

CONCEPTUAL,THEORETICAL FRAMEWORK..................................................12
2.1 Introduction.........................................................................................................12
2.2 Authorized Economic Operators (AEOs)............................................................12
2.3 Trade facilitation.................................................................................................12
2.4 Tanzania Revenue Authority (TRA)..................................................................13
2.5 Theoretical Framework......................................................................................13
2.5.1 Stakeholder Theory.............................................................................................13
2.5.2 Public Service Motivation Theory......................................................................14
2.5.3 Institutional Theory............................................................................................14
2.6 Conclusion..........................................................................................................15

CHAPTER THREE.......................................................................................................16
LEGAL FRAMEWORK..............................................................................................16
3.0 Introduction........................................................................................................16
3.1 INTERNATIONAL LEGAL FRAMEWORK....................................................16
3.1.1 World Customs Organization (WCO) Framework of Standards to Secure and
Facilitate Global Trade (Safe Framework)..........................................................16
3.1.2 World Trade Organization (WTO) Trade Facilitation Agreement (TFA).........17
3.2 REGIONAL LAWS............................................................................................18
3.2.1 The East African Community Customs Management Act (EAC CMA)............18
3.2.2 EAC Protocol on the Establishment of the Customs Union...............................18
3.3 DOMESTICS LAWS..........................................................................................19
3.3.1 The Constitution Foundation for Tanzania.........................................................19
3.3.1.1 The Taxing powers in Zanzibar..........................................................................19
3.3.1.2 The Taxing Power in Mainland Tanzania..........................................................19
3.3.2 The Tax Administration Act................................................................................20
3.4 CONCLUSION..................................................................................................20
 xii

CHAPTER FOUR.........................................................................................................22
FINDINGS AND ANALYSIS.......................................................................................22
4.0 Introduction.........................................................................................................22
4.1 Analysis...............................................................................................................22
4.1.1 The impact of the AEOs program in enhancing compliance among traders.......22
4.2 The effect of the AEOs........................................................................................25
4.2.1 The following is List Of AEO Accredited Companies As At December 2024....
.................................................................................................................................
.............................................................................................................................25
4.3 Comparative Analysis.........................................................................................28
4.4 Impact Of AEO Accreditation on Clearance Time.............................................28
4.5 CONCLUSION...................................................................................................29

CHAPTER FIVE...........................................................................................................30
CONCLUSION AND RECOMMENDATIONS........................................................30
5.0 Conclusion..........................................................................................................30
5.1 Recommendation.................................................................................................30

REFERENCE................................................................................................................32
APPENDEX...................................................................................................................34
xiii
 1

CHAPTER ONE

INTRODUCTION

1.1 Background to the problem

Trade facilitation has become a critical focus in global efforts to promote economic
integration, reduce the cost of doing business, and enhance the competitiveness of
developing economies. As international trade volumes have expanded and supply
chains have become more complex, governments and customs administrations are
increasingly called upon to strike a balance between maintaining border security and
ensuring the efficient movement of goods. The World Trade Organization (WTO) Trade
Facilitation Agreement, which came into force in 2017, underscores the importance of
modern, transparent, and predictable customs procedures as essential pillars for
enhancing global trade.1 One of the key mechanisms introduced to support this
objective is the Authorized Economic Operator (AEO) program a risk management-
based initiative designed to promote compliant traders through preferential treatment,
including reduced inspections, expedited clearance, and simplified procedures.2

The AEO concept, first introduced by the Word Customs Organization (WCO) under its
SAFE Framework of Standards, is built on trust-based partnerships between customs
authorities and importers and exporters that demonstrate strong internal controls,
regulatory compliance, and supply chain security. Globally, over 80 countries have
adopted AEO programs, with many forming mutual recognition agreements to
harmonize trade facilitation and strengthen cross-border cooperation. 3 Empirical
evidence from Europe, Asia, and parts of Latin America suggests that AEO schemes

1
World Trade Organization (WTO). (2017). WTO Trade Facilitation Agreement: Overview and
implementation.
2
World Customs Organization (WCO). (2022). SAFE Framework of Standards to secure and facilitate
global trade. WCO Publications.
3
Grainger, A. (2021). Trusted traders and the benefits of AEO programs: International evidence and
insights. Journal of International Trade Law and Policy, 20(2), 115–132.
 2

have the potential to reduce clearance times, lower transaction costs, improve
predictability, and enhance firms’ competitiveness.4

In sub-Saharan Africa, however, implementation and impact remain uneven. Challenges

such as limited customs capacity, poor inter-agency coordination, and low awareness
among traders continue to hinder uptake and effectiveness 5. Tanzania, which serves as a
major trade hub in East Africa, has made significant efforts to align its customs
administration with international standards. The TRA, in collaboration with the WCO
and other regional institutions, launched its AEO program in 2008. The initiative targets
importers, exporters, and logistics service providers, offering benefits such as faster
clearance, reduced documentation, and dedicated processing lanes at key entry points.6

Despite these developments, the actual impact of the AEO program in Tanzania remains
underexamined. While institutional reports suggest improvements in cargo clearance
efficiency for certified operators, comprehensive empirical assessments are scarce.
Questions remain regarding whether AEO-certified firms enjoy significant operational
advantages, whether the benefits outweigh the costs of certification, and whether the
program adequately accommodates small and medium-sized enterprises (SMEs). 7
Additionally, the integration of AEO with other trade facilitation measures such as the
Tanzania Customs Integrated System (TANCIS), One Stop Border Posts (OSBPs), and
regional trade protocols under the East African Community (EAC) remains fragmented
and complex.8
4
Terefe, Y., & Tehie, T. (2020). The impact of trade facilitation on customs clearance time: The role of
authorized economic operators. Journal of Customs and Trade, 21(3), 45–59
5
UNCTAD. (2020). Trade facilitation and development: Driving the benefits of AEO programs in Africa.
United Nations Conference on Trade and Development.
6
TRA. (2022). AEO program implementation progress report. Tanzania Revenue Authority.
7
Economic and Social Research Foundation (ESRF). (2021). Review of trade facilitation measures in
Tanzania: Opportunities and challenges. ESRF Publications.

8
EAC Secretariat. (2023). Trade facilitation progress report: 2023 edition. East African Community.
 3

This study therefore seeks to assess the impact of Authorized Economic Operators on
trade facilitation in Tanzania. It examines how AEO certification affects key trade
metrics such as clearance times, compliance costs, and trader satisfaction, while also
exploring barriers faced by customs authorities and private stakeholders in
implementing the program. The findings will contribute to policy discussions on
enhancing trade competitiveness and strengthening customs modernization efforts in
Tanzania and the broader EAC region.

1.1 Statement of the Problem

Despite Tanzania’s robust economic growth, trade facilitation remains hindered by

inefficiencies in customs procedures, high clearance times, and limited adoption of
modern trade tools (World Bank, 2023; TRA, 2022). In response, Tanzania
implemented the Authorized Economic Operator (AEO) program to streamline customs
processes and enhance compliance through faster clearance and reduced inspections for
trusted traders (WCO, 2021). However, uptake has been limited, especially among
SMEs, and implementation challenges persist, such as inconsistent application of
benefits, limited inter-agency coordination, and infrastructure gaps (UNECA, 2021).

While global studies show that AEO programs can significantly improve trade
efficiency (Grainger, 2020; Moïsé & Le Bris, 2013), little empirical research has
assessed their practical impact in Tanzania. Most existing analyses overlook how the
program affects trader behavior, logistics performance, and administrative effectiveness
within the local context. This study seeks to fill that gap by evaluating the AEO
program’s contribution to trade facilitation in Tanzania, identifying key benefits,
challenges, and opportunities for improvement.

1.3 Objective of the Study

The study was guided by the following objectives;
 4

1.3.1 General objective

The main objective of the study was to assess the impact that AEOs have in trade
facilitation in Tanzania.
1.3.2 Specific Objectives
Specifically, the study was set to;
i. To examine the objectives and operational framework of the AEO program in
Tanzania,
ii. To assess the impact of the AEO program on customs clearance time and trade
efficiency in Tanzania, and
iii. To analyze the role of the AEO program in improving compliance in the
customs process in Tanzania.

1.4 Research Questions

The study was set to answer the following questions;
i. What are the objectives and operational framework of the AEO program in
Tanzania?
ii. How has the AEO program impacted customs clearance time and trade
efficiency in Tanzania?
iii. What role does the AEO program play in improving compliance in the customs
process in Tanzania?

1.5 Significance of the Study

This study offers critical insights for a range of stakeholders involved in enhancing
trade facilitation in Tanzania through the AEO program. For government policymakers
and the TRA, the study provides evidence-based analysis on the actual outcomes of the
AEO program such as reductions in customs clearance times, enhanced cargo
predictability, and improved trader compliance. These findings can inform policy
adjustments to optimize the program's design, outreach, and implementation strategies.
 5

For the private sector, particularly importers, exporters, and logistics companies, this
research highlights the tangible benefits and challenges of AEO certification. By
examining how AEO status impacts operational efficiency, cost savings, and regulatory
interactions, the study can help importers and exporters make informed decisions about
pursuing certification and engaging more constructively with customs processes.
Regional trade bodies and development partners may also find value in the study's
contribution to the broader discourse on trade facilitation in East Africa. The results
may support efforts toward regional harmonization of customs procedures, especially
within frameworks like the EAC Customs Union.
Academically, this research fills a gap in empirical literature on the performance and
practical outcomes of trade facilitation programs in sub-Saharan Africa, particularly in
the context of developing economies. The focus on the Tanzanian implementation of
the AEO program offers a contextual understanding that can support comparative
research and theoretical development in customs modernization and international trade
logistics.

1.6 Scope of the Study

This study is focused on Tanzania, with particular emphasis on its principal
international trade gateway—the Dar es Salaam Port—which serves as a key
implementation site for the Authorized Economic Operator (AEO) program under the
Tanzania Revenue Authority (TRA). The study concentrates on customs procedures,
clearance times, and compliance behaviors within the AEO framework, acknowledging
the port’s critical role in national and regional trade facilitation efforts.
Importantly, the scope of this study is limited to the national-level implementation of
the AEO program under TRA, and does not extend to the roles or operational dynamics
of other government regulatory institutions such as the Tanzania Bureau of Standards
(TBS), Tanzania Food and Drugs Authority (TFDA), Fair Competition Commission
(FCC), or other agencies involved in the broader border management ecosystem. As
such, the findings specifically reflect the performance, challenges, and outcomes
 6

associated with TRA’s AEO-related customs operations, excluding cross-agency or

multi-regulatory perspectives.
Temporally, the study covers the period from 2020 to 2023, a timeframe that captures
recent developments in customs modernization and provides sufficient data to assess
performance trends following the rollout and expansion of the AEO program. This
period encompasses key initiatives such as integrated customs management systems,
risk-based inspections, and AEO-specific capacity-building efforts.
Theoretically, the study is guided by Trade Facilitation Theory, which focuses on
reducing trade costs and improving procedural efficiency to enhance international trade
competitiveness. It is also informed by Institutional Theory, which explores how
regulatory frameworks, organizational structures, and procedural norms shape the
behaviors of customs officials and AEO-certified traders.

Methodologically, the study employs a mixed-methods design, combining both

descriptive and analytical approaches. Quantitative data were collected through
structured surveys targeting AEO-certified and non-AEO traders, while qualitative
insights were gathered through key informant interviews with TRA customs officials
and logistics service providers. Secondary data sources—such as TRA performance
reports, AEO program documentation, and World Bank trade facilitation indicators—
were also analyzed to support triangulation and contextualization of findings.

1.7 Literature Review

The concept of trade facilitation, particularly in the context of the AEO programs, has
gained significant attention in both academic and policy-making spheres. Understanding
the determinants of trade facilitation is critical for enhancing international trade and
 7

improving efficiency within customs procedures. The AEO program, designed to

strengthen the security and efficiency of global supply chains, aims to streamline
customs procedures while ensuring compliance with international trade regulations.
Various studies have explored the factors that influence the success of such programs,
including institutional frameworks, trust in authorities, infrastructure, and technology.

Several studies have examined the role of institutional factors in shaping trade
facilitation and compliance within customs processes. For instance, Kanu and
Ssemwanga (2020) explored the influence of government policies and institutional
frameworks on customs clearance efficiency. They found that trust in government plays
a vital role in enhancing compliance and improving the overall efficiency of trade
facilitation measures. When customs authorities are perceived as fair and transparent,
importers and exporters are more likely to comply with trade regulations, which directly
influences the success of programs like AEO.

The role of technology in facilitating trade and enhancing customs efficiency is another
area of focus. Mundia and Kibira (2018) noted that the integration of automated systems
significantly reduced delays and inefficiencies in customs clearance. However, they
highlighted that weak technological infrastructure in many East African countries,
including Tanzania, remains a challenge to the successful implementation of AEO
programs. Despite this, the increasing digitization of customs procedures, such as the
implementation of the Customs Management System (CMS), is improving the overall
efficiency of trade facilitation in Tanzania.

A critical barrier to trade facilitation and AEO program success is the lack of awareness
and education on customs procedures. Many traders in Tanzania, particularly SMEs,
face difficulties navigating complex customs procedures. Research by Mwanri and
Nkya (2019) showed that a significant portion of the population lacks adequate
knowledge of the customs system, leading to compliance issues. Mwanri emphasized
 8

the importance of public education campaigns to raise awareness about the benefits of
AEO certification and compliance with customs regulations.

Additionally, socio-economic factors such as the size and type of business are
influential in determining the effectiveness of trade facilitation programs. Larger
importers and exporters with more resources are generally more compliant with
customs regulations due to their greater ability to invest in necessary infrastructure and
navigate the AEO program requirements. In contrast, SMEs, particularly those in the
informal sector, often face challenges related to limited resources, lack of awareness,
and concerns about the fairness of the system. This gap between large enterprises and
SMEs in Tanzania reflects a broader issue of unequal access to trade facilitation
benefits.

Mwajileke and Chacha (2021) examined the role of technology in improving trade
facilitation in Tanzania, particularly in relation to the AEO program. They found that
while technological advancements have improved customs efficiency, gaps in ICT
infrastructure still hinder the effective monitoring of AEO-certified importers and
exporters. For instance, the lack of real-time tracking systems makes it difficult for
customs authorities to ensure compliance with trade regulations, leading to
opportunities for non-compliance. Investment in robust ICT systems is thus seen as
essential to overcoming these challenges and improving the AEO program's success.

Ngulu and Ssembagare (2020) highlighted the importance of an efficient customs

system in facilitating international trade. Their study suggested that the efficient
implementation of AEO programs is closely linked to economic growth, as a well-
functioning trade facilitation system ensures the smooth flow of goods across borders,
contributing to a stable and predictable trade environment. The study called for reforms
that simplify customs procedures and encourage importers and exporters to engage with
programs like AEO, thus improving compliance and trade efficiency.
 9

Political and institutional factors also play a significant role in shaping the effectiveness
of AEO programs in Tanzania. Mugisha and Komakech (2021) identified political
instability and limited funding as significant barriers to the successful implementation
of trade facilitation reforms. These challenges hinder the capacity of customs authorities
to enforce AEO compliance effectively. Overcoming these barriers requires political
will and the allocation of resources to strengthen customs infrastructure and improve the
effectiveness of trade facilitation programs.

Finally, the role of corruption in customs administration has been widely discussed.
Kweka (2020) emphasized that corruption within customs agencies severely
undermines public trust and hampers the success of AEO programs by creating an
environment conducive to non-compliance. When taxpayers perceive that customs
revenues are misused by corrupt officials, they are less likely to comply with the
system. Therefore, addressing corruption is crucial for improving trade facilitation and
ensuring the successful implementation of AEO programs.

In conclusion, the literature on trade facilitation and the AEO program in Tanzania
highlights the complex interplay of institutional, technological, socio-economic, and
political factors that influence the effectiveness of customs reforms. The success of the
AEO program in Tanzania depends on improving trust in customs authorities, investing
in technology, enhancing public education on trade regulations, and addressing
challenges such as corruption and infrastructure gaps. These findings provide valuable
insights into the opportunities and challenges of implementing the AEO program as a
tool for enhancing trade facilitation in Tanzania.

1.7.1 Synthesis of literature reviewed

The existing body of literature provides valuable insights into the various factors
influencing trade facilitation and the implementation of the AEO program in Tanzania,
highlighting the roles of institutional trust, technological infrastructure, awareness, and
 10

political stability. However, most studies tend to examine these factors in isolation,
often lacking an integrated framework that captures the interplay between them and
their cumulative impact on the effectiveness of the AEO program. Moreover, much of
the available research remains largely descriptive, with limited empirical evidence that
specifically evaluates the outcomes of the AEO program in the Tanzanian context. In
particular, there is a noticeable gap in studies that assess the practical impacts of the
AEO program on trade facilitation outcomes such as customs clearance efficiency, cost
reduction, and stakeholder compliance, especially among SMEs. This gap is significant
given the central role that trade facilitation plays in Tanzania’s economic growth and
the increasing importance of customs modernization in global trade. Therefore, this
study is relevant as it seeks to fill this empirical void by assessing the actual impacts of
the AEO program on trade facilitation in Tanzania. The study provides a data-driven
basis for enhancing policy decisions, improving program implementation, and
promoting equitable access to trade facilitation benefits across different business
segments.

1.8 Research Methods

1.8.1 Research Design

This study adopts a cross-sectional descriptive research design to assess the impact of
the AEO program on trade facilitation in Tanzania. The design enables the researcher to
collect data at a specific point in time from a diverse group of stakeholders, including
AEO-certified traders, non-AEO traders, and TRA customs officials, providing a
comprehensive understanding of the program’s outcomes without altering the
environment.9

This design is appropriate for exploring how the AEO program influences key
dimensions of trade facilitation, such as customs clearance times, predictability of cargo
release, compliance costs, and business satisfaction with customs procedures. The usage

9
Kothari, C. (2007). Research Methodology; Methods and Techniques. New Delhi, India.
 11

of both quantitative and qualitative methods helped the study to capture a holistic view
of the AEO program's role in improving efficiency and transparency in trade processes.

1.8.2 Research Approach

This study adopts a mixed-methods strategy to enrich the quantitative findings and
provide a holistic view of the AEO program's impact. Structured questionnaires are
administered to AEO-certified traders, non-AEO traders, and freight forwarders,
capturing quantitative data on key trade facilitation indicators such as customs clearance
times, inspection frequency, perceived predictability, and cost of compliance.

To complement this, semi-structured interviews are conducted with TRA customs

officials, port authorities, and logistics stakeholders, offering qualitative insights into
the implementation challenges, institutional experiences, and stakeholder perceptions of
the AEO program. The study also incorporates focus group discussions with traders to
explore the practical benefits and limitations of the AEO framework in facilitating
trade.

Triangulating statistical results with firsthand narratives gains a more nuanced

understanding of how and why the AEO program contributes to or falls short of
improving trade facilitation outcomes in Tanzania.

1.8.3 Study Area

The study was conducted at Dar es Salaam Port, the principal maritime gateway for
Tanzania and a critical hub for the implementation of the AEO program under the TRA.
As the largest and busiest port in the country, it handles the majority of Tanzania’s
international cargo and serves as a transit point for landlocked neighboring countries
such as Zambia, Malawi, and the Democratic Republic of Congo.
 12

Dar es Salaam Port provides an ideal case study for assessing the impact of the AEO
program on trade facilitation, particularly in terms of customs clearance efficiency,
inspection procedures, and predictability in cargo handling. The port also has a
concentrated presence of AEO-certified companies, customs officials, freight
forwarders, and clearing agents, making it a strategic site for collecting both
quantitative and qualitative data.

The focus of Dar Es Salaam port offers context-specific insights into the operational
effectiveness of the AEO program and its contributions to improving Tanzania's
customs administration and overall trade environment.

1.8.4 Target Population

The target population for this study comprised stakeholders directly involved in the
implementation and utilization of the AEO program at Dar es Salaam Port. These
included personnel from the TRA, particularly from the Customs and Excise
Department, as well as AEO-certified traders, non-AEO traders, freight forwarders,
clearing and forwarding agents, and logistics service providers operating at the port.
These groups were selected due to their central roles in the customs clearance process
and cross-border trade activities, making them well-positioned to offer insights into the
effectiveness of the AEO program in enhancing trade facilitation, reducing delays, and
improving customs efficiency.

1.8.5 Sample Size

This study, which assesses the impact of the AEO program on trade facilitation in
Tanzania, utilized a total sample size of 86 respondents. The sample was drawn from
key stakeholders involved in customs procedures and trade logistics across the country,
with a specific focus on Dar es Salaam Port, which serves as a primary entry and exit
 13

point for international trade and is central to the implementation of the AEO program
under the TRA.

The sample included all 41 AEO-certified traders registered with the TRA as of 31st
December 2024. Additionally, the study involved TRA officials responsible for
overseeing the implementation of the AEO program, particularly those working in the
Customs and Excise Department. To enable a comparative analysis of customs
efficiency and compliance, 10 non-AEO traders were included to provide insights into
the experiences of businesses not participating in the program. Furthermore, the sample
encompassed 10 transporters, as well as 10 operators from inland container depots
(ICDs) and port facilities, given their integral roles in the trade facilitation chain.

The sample was designed to ensure adequate representation of perspectives from both
AEO-certified and non-certified stakeholders. The diversity and scope of the sample
were considered sufficient to yield relevant, practical, and insightful findings for
assessing the outcomes of the AEO program on trade facilitation in Tanzania. The
sample distribution is as follows:

Table 1.2: Sample Distribution

S/N Category Sample Size
1. TRA (Customs and Excise) Officials 15
2. AEO Certified Traders 41
3. Non-AEO Traders 10
4. Transporters 10
5. ICD and Port Operators 10
Total 86

1.8.6 Sampling Technique

To ensure the study gathered relevant and contextually grounded data, a combination of
purposive and stratified sampling techniques was employed. Purposive sampling was
 14

applied to select key informants who possess specialized knowledge, experience, and
involvement in customs operations and trade facilitation under the AEO framework.
These included TRA officials, AEO-certified traders, clearing and forwarding agents,
port logistics service providers, and operators at inland container depots. Their selection
was based on their direct engagement with the AEO program and their capacity to
provide detailed insights into the practical functioning, benefits, and challenges of the
program.

To complement these insights and ensure representation from businesses outside the
AEO program, stratified sampling was used to select non-AEO traders. This method
allowed for categorizing participants based on trader registration status, volume of
trade, and type of industry. From each stratum, participants were selected to reflect
varied experiences with customs procedures and trade facilitation practices in Tanzania.

This combination of sampling techniques enabled the study to capture both strategic and
operational viewpoints, offering a comprehensive and balanced assessment of the AEO
program’s impact on trade efficiency, customs clearance, and compliance within
Tanzania’s international trade environment.

1.8.7 Data Collection Methods

For this study, both primary and secondary data collection methods were employed to
gather a comprehensive range of insights from key stakeholders. These methods were
chosen to ensure that the research questions were effectively addressed, incorporating
both qualitative and quantitative data.

Primary data was collected through structured interviews, questionnaires, and focus
group discussions. Semi-structured interviews were conducted with key informants,
including officials from TRA, customs officers, and port logistics managers. These
interviews provided in-depth perspectives on the institutional and procedural factors
influencing trade facilitation, with a particular focus on the effectiveness of the AEO
 15

program, customs clearance processes, and the overall experience of stakeholders with
the port’s operational systems. The interviews aimed to capture the nuances of how the
AEO program has impacted the flow of goods, regulatory compliance, and stakeholder
satisfaction. The interviews were conducted either in person or via telephone,
depending on participant availability, and all interviews were recorded with the consent
of the interviewees.

Structured questionnaires were administered to AEO-certified traders, non-AEO traders,

and clearing and forwarding agents operating at Dar es Salaam Port. The questionnaires
were designed to collect both quantitative and qualitative data on key aspects such as
awareness of AEO benefits and requirements, perceptions of the program’s impact on
customs procedures, compliance with customs regulations, and the challenges faced in
obtaining AEO certification and navigating customs processes. The questionnaires
included both closed and open-ended questions, allowing for a balanced approach in
capturing the necessary data. Surveys were distributed in person at the port and
electronically to ensure broad participation across different stakeholders.

Secondary data was gathered to complement the primary findings and provide a broader
understanding of the AEO program’s effects on trade facilitation. Published reports and
documents from the TRA and Zanzibar Revenue Board were reviewed, providing
insights into the implementation of the AEO program, trade volumes, and compliance
statistics. These reports helped contextualize the administrative changes brought about
by the program and its role in improving trade facilitation at Dar es Salaam Port.
Additionally, reports from industry associations, logistics providers, and port
management documents offered a detailed understanding of the practical challenges and
operational improvements following the implementation of the AEO program. These
documents provided context on how the program has impacted operational efficiencies,
including reduced clearance times and increased compliance. Relevant academic studies
and research articles on trade facilitation, customs procedures, and AEO programs in
other regions were also reviewed. These studies helped establish a comparative
 16

framework for analyzing the Tanzanian context and provided valuable insights into how
AEO programs have influenced trade flows, compliance, and operational efficiencies in
other countries.

This combination of primary and secondary data collection methods ensured a

comprehensive understanding of the impact of the AEO program on trade facilitation at
Dar es Salaam Port.

1.8.8 Data Analysis

This study employed a mixed-methods approach to analyze the impact of the AEO
program on trade facilitation at Dar es Salaam Port. The analysis was structured around
the research questions, incorporating both quantitative and qualitative data to provide a
comprehensive understanding of the factors influencing trade procedures, stakeholder
experiences, and operational efficiency at the port.

Quantitative data were collected through questionnaires distributed to AEO-certified

traders, non-AEO traders, clearing and forwarding agents, and customs officials. The
responses were coded and analyzed using the Statistical Package for the Social Sciences
(SPSS). Descriptive statistics such as frequencies, percentages, means, and standard
deviations were used to summarize respondents’ views on key factors influencing trade
facilitation, including awareness of AEO benefits, perceptions of the AEO program’s
effectiveness in speeding up customs clearance, the impact of the program on reducing
delays and improving transparency, challenges and barriers faced in obtaining AEO
certification, and changes in compliance with customs regulations. These statistical
summaries highlighted trends and patterns in the data, offering a quantitative
understanding of how the AEO program is perceived and its impact on trade facilitation
at the port.

Qualitative data were collected through semi-structured interviews with key

stakeholders, including TRA officials, customs officers, port logistics managers, and
 17

AEO-certified traders. These interviews provided in-depth insights into the institutional,
procedural, and operational factors that influence the success or challenges of the AEO
program. The interview transcripts were analyzed using thematic analysis, which
involved identifying repeated concepts and patterns in responses and grouping them
into themes such as efficiency of customs procedures, impact of AEO on trade flows,
barriers to trade facilitation, and stakeholder collaboration. Each theme was explored in
depth to uncover motivations, perceptions, and barriers related to the AEO program.
This analysis helped to understand not only the operational aspects but also the personal
experiences and attitudes of stakeholders toward the program. The findings from the
interviews were cross-checked with the survey results to confirm consistency or
highlight discrepancies between the two data sources.

triangulating of the quantitative summaries with qualitative insights help the study to
draw a comprehensive and nuanced interpretation of the AEO program’s impact on
trade facilitation at Dar es Salaam Port. The integration of both data sets allowed for a
deeper exploration of how the AEO program influences customs clearance efficiency,
trade compliance, and stakeholder satisfaction. The final analysis aimed to present the
findings in a clear and accessible manner, offering actionable insights for policymakers,
customs authorities, and trade stakeholders. These insights are intended to inform future
policy decisions, enhance AEO program implementation, and address barriers hindering
its success at Dar es Salaam Port.

1.9 Ethical Considerations

Ethical considerations underpinned every stage of this study. Prior to data collection,
formal approval was obtained from the University’s Ethics Review Committee and
written permission secured from the Tanzania Revenue Authority and Dar Es Salaam
Port. All prospective participants AEOs and revenue‐authority officials received a clear
information sheet explaining the study’s purpose, methods, anticipated benefits, and
 18

their rights, including voluntary participation and the freedom to withdraw at any time
without penalty. No incentives or pressures were used to induce participation.

To protect confidentiality, all questionnaire responses and interview transcripts were

anonymized immediately upon collection: personal identifiers were replaced with
unique codes, and the master key linking codes to identities was stored separately under
password protection. Data were held on encrypted devices accessible only to the
research team. In reporting results, only aggregate statistics and de‐identified quotations
were used, ensuring that no individual or organization could be recognized.

The study imposed no physical or psychological risks: questions focused solely on

administrative procedures, policy perceptions, and demographic characteristics, with no
probing of sensitive personal matters. Nonetheless, interviewers were trained to pause
or re‐frame any question that made participants uncomfortable, and debriefing notes
were provided to all interviewees. Throughout the research process, the investigator-
maintained objectivity, disclosing to the Ethics Review Committee any potential
conflicts of interest of which there were none and adhering strictly to professional
standards of honesty, accuracy, and transparency in data collection, analysis, and
dissemination. Finally, findings are shared with the Tanzania Revenue Authority and
participating communities to support evidence‐based improvements in tax
administration.
 19

CHAPTER TWO

CONCEPTUAL AND THEORETICAL FRAMEWORK

2.1 Introduction

Understanding the fundamental ideas and theories that underpin the research of how the
Authorized Economic Operators (AEOs) program affects Tanzania Revenue Authority
(TRA) trade facilitation in the Customs and Excise Department in Tanzania is made
easier by the conceptual and theoretical framework. The AEO program is a trade
facilitation project that aims to increase government income production while fortifying
customs operations, enhancing compliance, and boosting security in international trade.
The theoretical viewpoints and fundamental ideas that support the research are
presented in this section, offering a methodical way to examine the ways in which the
AEO program affects trade facilitation and customs operations.

2.2 Authorized Economic Operators (AEOs)

Authorized Economic Operators are importers and exporters involved in international

trade that have been certified by customs authorities as compliant and trustworthy in
terms of security standards and customs procedures. AEO programs aim to enhance
trade facilitation by providing benefits such as simplified customs procedures, reduced
inspection times, and priority clearance for goods. According to Wanyama et al. 10 AEO
programs have gained momentum in Africa, including East African community, as a
means to promote trade competitiveness and secure the international supply chain.

2.3 Trade facilitation

Trade facilitation refers to the process of collecting taxes, duties, and fees imposed on
imported and exported goods by tax authorities. In the context of the Customs and
Excise Department in Ilala, Dar-es-Salaam, Tanzania, trade facilitation is a vital
function that contributes to government revenue generation and economic development.

10
Wanyama, S. K., Mukoshi, J. M., & Urio, F. M. (2018). Authorized Economic Operators Program in
Africa: Prospects and Challenges. African Journal of Economic and Management Studies, 9(3), 332-348
 20

According to Karingi et al.11 efficient trade facilitation is essential for financing public
services and infrastructure projects, particularly in developing countries like Tanzania

2.4 Tanzania Revenue Authority (TRA)

The Tanzania Revenue Authority is the government agency responsible for overseeing
tax and customs administration in Tanzania. TRA plays a pivotal role in revenue
mobilization, trade facilitation, and enforcement of customs regulations. The
introduction of the AEO program by TRA reflects efforts to modernize customs
procedures, enhance compliance, and promote International trade competitiveness, as
noted by Mwakalukwa and Rwechungura .12

2.5 Theoretical Framework

2.5.1 Stakeholder Theory

Stakeholder theory, initially proposed by R. Edward Freeman in 1984, suggests that

organizations should consider the interests and expectations of all stakeholders, not just
shareholders, in their decision-making processes. According to this theory, stakeholders
include individuals or groups who are affected by or can affect the organization's
actions and objectives. These stakeholders may include employees, customers,
suppliers, government agencies, communities, and shareholders. Scholars in Africa
have adopted stakeholder theory to analyze various organizational contexts, including
public sector entities like customs departments. For instance, studies by Mushi and Pooe
.13 have applied stakeholder theory to understand the dynamics between customs
administrations and different stakeholder groups, such as traders, government agencies,
and civil society organizations.

11
Karingi, S., Manyonge, J., & Njuguna, A. (2019). Trade facilitation Performance in Sub- Saharan
Africa: Trends and Influencing Factors. African Development Review, 31(4), 486-499
12
Mwakalukwa, E. E., & Rwechungura, H. M. (2017). Tanzania Revenue Authority and Trade
Facilitation: The Authorized Economic Operators Program. Journal of Management Policy and
Practice, 18(2), 51-65
13
Mushi, L. M., & Pooe, D. R. (2018). Stakeholder Engagement Strategies in East Africa’s Customs
Administrations: A Case Study. African Journal of Public Affairs, 11(1), 46-60.
 21

These studies have highlighted the importance of stakeholder engagement and

collaboration in achieving customs objectives and improving service delivery. In the
current study assessing the impact of the AEO program on trade facilitation for the
Customs and Excise Department in Ilala, Dar-es-Salaam, stakeholder theory will be
utilized to analyze the relationships between the customs department and various
stakeholders, including AEOs, importers and exporters, government agencies, and the
local community. By considering the interests and expectations of these stakeholders,
the study will evaluate the effectiveness of stakeholder engagement strategies and
identify opportunities for improving collaboration to enhance trade facilitation
performance

2.5.2 Public Service Motivation Theory

Public service motivation (PSM) theory, first proposed by Perry and Wise in 1990,
suggests that individuals are motivated to work in the public sector due to intrinsic
values such as the desire to serve the public interest, make a difference in society, and
contribute to the common good. PSM theory posits that public sector employees are
driven by a sense of duty, altruism, and social responsibility rather than purely financial
incentives. Various scholars have explored the concept of public service motivation to
understand the motivations and behaviors of employees within public sector
organizations, including customs departments. For example, studies by Maimela and
Kekae 14 have examined the influence of public service motivation on the job.

performance and attitudes of customs officials in South Africa. These studies have
underscored the importance of intrinsic motivations in shaping the behavior and
effectiveness of public sector employees. In the current study, public service motivation
theory will be relevant for understanding the motivations and behaviors of customs
officials involved in implementing the AEO program. In considering the extent to
which customs officials are driven by public service values and motivations, the study
will assess the impact of employee attitudes and behaviors on the success of the AEO
14
Maimela, N. S., & Kekae, L. N. (2019). Public Service Motivation and Job Performance in South
African Customs Administration. Public Personnel Management, 48(2), 185-209
 22

program and its implications for trade facilitation performance. Additionally, insights
from PSM theory will inform strategies for enhancing employee engagement, morale,
and commitment within the Customs and Excise Department in Ilala, Dar-es-Salaam.

2.5.3 Institutional Theory

Institutional theory, developed by Meyer and Rowan in 1977, focuses on how

organizations conform to institutional pressures and norms within their environment. It
suggests that organizations adopt structures, practices, and behaviors that are considered
legitimate and appropriate by institutional actors such as governments, professional
bodies, and societal norms. Institutional theory highlights the importance of legitimacy,
isomorphism, and organizational identity in shaping organizational behavior and
practices. Institutional theory has been applied to analyze various aspects of
organizational behavior and change, including in the public sector. Studies by Mabaso
and Dlodlo 15 have explored how institutional pressures influence organizational change
in South African public sector entities, such as customs administrations. These studies
have examined how customs departments adapt their structures and practices to
conform to legal, regulatory, and societal expectations, highlighting the role of
institutional factors in shaping organizational behavior. In the current study assessing
the impact of the AEO program on trade facilitation for the Customs and Excise
Department in Ilala, Dar-es-Salaam, and institutional theory will be utilized to
understand how the program is influenced by institutional pressures and norms. This
includes examining how the AEO program aligns with legal frameworks, international
standards, and societal expectations related to customs administration and trade
facilitation. Considering institutional factors, the study will assess the legitimacy and
effectiveness of the AEO program. In the Tanzanian context and identify opportunities
for enhancing its alignment with institutional norms and expectations. Additionally,
insights from institutional theory can inform strategies for promoting institutional

15
Mabaso, P. H., & Dlodlo, N. (2016). Institutional Factors Influencing Organizational Change: Case of
South African Customs Administrations. Journal of Governance and Regulation, 5(4), 36-44
 23

change and innovation within the Customs and Excise Department to improve trade
facilitation performance and organizational effectiveness.

2.6 Conclusion
To sum up, Chapter Two has provided a strong basis for comprehending the
fundamental ideas and theories that support the Customs and Excise Department of
Tanzania's evaluation of the Authorized Economic Operators (AEOs) program about
trade facilitation. The relationship between AEO implementation and key trade
facilitation metrics like compliance, clearance time, and administrative efficiency was
made evident by the conceptual framework. In the meantime, the theoretical framework,
which drew from trade facilitation theory and institutional theory, provided insightful
information about how private sector players and regulatory organizations like customs
work together to accomplish shared goals of supply chain security and efficiency. By
highlighting both operational and behavioral outcomes, the integration of these
frameworks demonstrates the multifaceted impact of AEOs. Additionally, this chapter
created the analytical framework that will be used to evaluate the AEO program's
practical efficacy in Tanzania.
 24

CHAPTER THREE

LEGAL FRAMEWORK

3.0 Introduction

This chapter examines the legal foundations of the Tanzania Revenue Authority's
(TRA) Authorized Economic Operator (AEO) program, with a specific focus on its
relationship to trade facilitation within the Tanzania Customs and Excise Department. It
presents a comprehensive overview of the key legislative instruments, regulatory
provisions, policy directives, and international conventions that shape Tanzania's
customs administration, trade facilitation initiatives, and the implementation of the AEO
program. This analysis seeks to provide a clear understanding of the program's
functional integration within the existing legal and regulatory landscape, and to assess
its implications for duty and tax revenue generation.

3.1 INTERNATIONAL LEGAL FRAMEWORK

3.1.1 World Customs Organization (WCO) Framework of Standards to Secure
and FacilitateGlobal Trade (Safe Framework)16
The World Customs Organization (WCO) introduced the WCO SAFE Framework of
Standards, one of the most important international instruments overseeing the AEO
program. By developing the AEO concept, which enables trusted traders to take
advantage of streamlined customs procedures, decreasing customs delays, and boosting
compliance, this framework provides principles for safe and effective international
trade. The SAFE Framework gives nations the framework on which to build their AEO
programs by global norms and best practices, allowing customs officials to enhance
customs enforcement and streamline processes for approved operators. Article 7 of the
SAFE Framework highlights how customs administrations can secure the global supply
chain and conduct risk management procedures by forming reliable alliances with law-

16
World Customs Organization (WCO). (2005). SAFE Framework of Standards to Secure and Facilitate
Global Trade
 25

abiding traders. Because they are considered low risk operators, AEOs are eligible for
benefits including fewer inspections and quicker clearance timelines.

The necessity of mutual recognition agreements (MRAs) between nations is covered in

Article 8, which enables AEO-certified operators to take advantage of streamlined
customs processes both domestically and while conducting business with partners. By
enabling quicker and more effective customs processing, these agreements promote
international trade flows and enhance tax collection. Tanzania's AEO program is
directly impacted by the WCO SAFE Framework since it promotes Tanzania's
involvement in global trade networks and harmonizes TRA's customs operations with
best practices from around the world.

3.1.2 World Trade Organization (WTO) Trade Facilitation Agreement (TFA)17

Another important international tool that affects the AEO program is the WTO Trade
Facilitation Agreement (TFA), which went into effect in 2021. To enhance trade flows
and lower costs for companies, the TFA seeks to standardize and streamline
international trade processes, including customs laws. In line with the goals of the AEO
program, it places a strong emphasis on the application of risk-based management and
the facilitation of trade by cutting down on needless customs delays and processes. The
adoption of streamlined and accelerated customs procedures for low-risk traders,
including AEOs, is outlined in Article 7 of the TFA. It highlights the significance of
openness, consistency, and effective processes, all of which are necessary to guarantee
successful trade facilitation while promoting commerce. Tanzania's execution of the
AEO program is in line with Article 8's requirement for the construction of trade
facilitation measures, which include the use of technology and modernization of
customs to increase efficiency. Tanzania's Customs and Excise Department operates
under a worldwide legal framework provided by the TFA, which guarantees that the
AEO program conforms with international trade standards and improves trade
facilitation through effective customs operations.
17
World Trade Organization (WTO). (2017). Trade Facilitation Agreement. WTO
 26

3.1.3 Customs Cooperation Council (CCC) Convention On International Trade In

Endangered Species (CITES)18

The Convention of the Customs Cooperation Council (CCC) is another pertinent

international instrument. The CCC has created frameworks that indirectly regulate trade
and customs processes, which are essential for enhancing customs efficiency, especially
in the areas of compliance and security, even if they are not directly tied to AEOs. By
regulating endangered species and other prohibited items, it contributes significantly to
the security of international trade, which is consistent with the AEO program's tenets.
One of the main goals of the AEO program is to prevent illicit trade and promote secure
commerce, which is why Article 5 of the Convention highlights the value of
collaboration between customs administrations and trade operators.

3.2 REGIONAL LAWS

3.2.1 The East African Community Customs Management Act (EAC CMA)19

The foundation of customs law in the EAC region is the East African Community
Customs Management Act. The Authorized Economic Operator (AEO) program and the
mutual recognition of AEOs among EAC member nations are specifically covered in
Article 49 of the EAC Customs Management Act. The system for identifying and
authorizing operators who satisfy particular security and compliance requirements is
described in this article. A company is entitled to streamlined customs processes, such
as quicker clearance and fewer inspections, when it is designated as an AEO. The
program's significance for trade facilitation lies in its potential to improve customs operational
efficiency, reduce processing delays, and promote adherence to customs regulations among
legitimate traders. The goals outlined in this article are precisely aligned with the TRA's
implementation of the AEO program, which makes operations at the port of Tanzania,
where a large portion of Tanzania's trade flows take place, more efficient. Because there

18
The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), 3
March 1973, 993 U.N.T.S. 243
19
East African Community (EAC) Customs Management Act,
 27

is less chance of fraud and underreporting of commodities, the greater compliance by

AEOs also improves tax collection.

3.2.2 EAC Protocol on the Establishment of the Customs Union20

The East African Community (EAC) Protocol on the Establishment of the Customs
Union [1] plays a crucial role in shaping the legal landscape for the Authorized
Economic Operator (AEO) program in Tanzania. The 2004 Protocol, aiming to create a
unified customs territory, facilitates the seamless movement of goods originating within
the EAC, eliminating redundant customs charges. Notably, Article 16 of the Protocol
underscores the importance of mutual recognition of AEOs and the standardization of
customs processes among member states. By enabling AEO-certified traders to leverage
expedited clearance privileges throughout the EAC, the Protocol reinforces the efficacy
of national AEO programs, such as that administered by the TRA. This regional
framework directly benefits Tanzania by promoting efficient trade flows and
contributing to increased trade facilitation within the Tanzania Customs and Excise
Department.

3.3 DOMESTICS LAWS

3.3.1 The Constitution Foundation for Tanzania

One of the principles of good taxation is that, taxes must be lawful and legitimate. No
tax can be imposed on a subject without words in the Act showing clearly the intention
to impose tax.21 Taxation must express the acceptance of the society towards their
obligations to such legal requirements. The accepted and legitimate tax system ensures
stable source of revenue that enable government to finance its various recurrent and
development expenditures. Article 138 of the Constitution of the United Republic of
Tanzania.22 (the Constitution) provides the legal foundation for taxation in Tanzania.
The article provides that:

20
East African Community (EAC) Protocol on the Establishment of the EAC Customs Union, Article 16
21
Luoga, F.D.A. M. A Sourcebook of Income Tax Law in Tanzania, 1996. p.36
22
The Constitution of the United Republic of Tanzania, 1977.
 28

1) No tax of any kind shall be imposed save in accordance with the law enacted by
Parliament or pursuant to a procedure lawfully prescribed and having the force
of law by virtue of a law enacted by Parliament.

2) The provisions contained in sub article (1) of this Article shall not preclude the
House of Representatives of Zanzibar from exercising its power to impose tax
of any kind in accordance with the authority of that House.

The constitution of the URT provides the taxing power in Tanzania as follows:

3.3.1.1 The Taxing powers in Zanzibar

Sub-article 2 to article 138 of the Constitution, enables the House of Representatives of

Zanzibar to enact tax laws for imposition of taxes for the purposes of the government of
Zanzibar other than those listed as union matters. Therefore, Zanzibar is empowered to
enact tax laws for the imposition of their own taxes as a source of revenue different
from union sources. This is further supported under article 132 of the Constitution of
Zanzibar.23

3.3.1.2 The Taxing Power in Mainland Tanzania

As it can be noted above, the Constitution provides the specific taxing power for the
Zanzibar case. However, with regards to Article 138 (1) of the Constitution, it can be
noted that the Constitution does not provide for specific taxing powers in respect of the
Mainland. Sub-article 138 (2) makes a specific mention in respect of Zanzibar but, there
is no such taxing power to the Mainland Tanzania. The legal foundation for taxation in
the Mainland can be established by reading Article 138(1) together with Article 64(1) of
the constitution.24 In this context, the underlying assumption is that the Union
Constitution caters for all matters pertaining to union and non-union matters, which
affect Mainland Tanzania (Tanganyika).

23
The Constitution of the United Republic of Tanzania, 1977.

24
Luoga, F.D.A.M. Taxpayers’ Rights in the Context of Democratic Governance: Tanzania, 2002
 29

3.3.2 The Tax Administration Act25

This piece of legislation was enacted in 2015 by the Parliament of the United Republic
of Tanzania. The purpose of enacting this legislation was to consolidate and harmonize
all provisions relating to tax administration in Tanzania with a view to easing the
administration of tax and the enforcement of tax laws. 26 It has to be noted that, before
the enactment of this legislation, enforcement and administration processes were not
uniform since each tax statute provided for its own procedures. The TRA shall be
responsible for administering and giving effect to the tax laws in accordance with the
provisions of the Tanzania Revenue Authority Act. The Tax Administration Act gives
the TRA the authority to create compliance systems and categorize taxpayers, including
determining whether organizations qualify for preferential treatment, including those
taking part in the AEO program. The AEO program is a continuation of the TRA's
larger initiatives to enhance trade facilitation and guarantee adherence to tax regulations
under this Act. Simplified customs processes assist AEOs by facilitating quicker
clearance and less delays, which boosts customs income and encourages trade. In order
to guarantee that only companies that fulfill certain compliance requirements benefit
from the program, the Act also gives the TRA the authority to use risk-based measures
when choosing which companies to certify as AEOs.

3.4 CONCLUSION

It is evident from evaluating the effect of the Tanzania Revenue Authority's (TRA)
Authorized Economic Operators (AEO) program on trade facilitation for the Customs
and Excise Department in Tanzania, Tanzania, that the legal framework governing this
program functions at several levels: domestic, regional, and international. The
foundation for the successful implementation of the AEO program, which aims to
facilitate commerce, improve compliance, and increase the effectiveness of tax
collection, is provided by these layers of legal instruments. Global standards for
customs procedures, trade facilitation, and the creation of trusted traders through the
25
The Tax Administration Act, [Cap 438 R.E. 2019],
26
The Tax Administration Act, [Cap 438 R.E. 2019],s 50(1).
 30

AEO program are established at the international level by laws like the World Trade
Organization's (WTO) Trade Facilitation Agreement and the World Customs
Organization's (WCO) SAFE Framework of Standards. Tanzania follows the AEO
model, which is based on the security, efficiency, and compliance standards set forth by
these international frameworks. The AEO's objectives are in line with the WCO
Customs Convention on International Trade in Endangered Species (CITES), which
emphasizes the significance of ethical and compliance trade. The East African
Community Customs Management Act (EAC CMA), the EAC Protocol on the
Establishment of the Customs Union, and other regional accords that promote the
mutual recognition of AEOs serve as Tanzania's regional guidelines. By guaranteeing
Tanzanian AEO-certified importers and exporters' recognition within the larger East
African Community, these regional legislation improve the efficacy of the AEO
program by promoting easier cross-border trade flows and greater compliance.

Tanzania's internal legal system, which includes the Tax Administration Act, gives the
TRA the authority to successfully carry out the AEO program. These rules provide the
TRA the power to expedite customs processes, cut down on delays, and guarantee duty
and tax collection all of which will eventually support the expansion of the national
economy. The TRA can identify and certify trusted economic operators thanks to
domestic legal requirements, which also provide them with trade facilitation benefits
including accelerated clearance and fewer inspections. As a result, trade facilitation
becomes more efficient, assisting the government's financial goals.

Tanzania's AEO program is governed by a strong legal framework that encompasses

national laws, regional collaboration, and international norms. Because these laws are
interconnected, Tanzania's execution of the AEO program is guaranteed to be in line
with international best practices, promote smooth regional trade, and assist the nation's
internal goals of enhancing tax collection and customs efficiency. Tanzania's Customs
and Excise Department can improve trade, compliance, and overall economic
 31

performance by abiding by these legal tools, fostering an atmosphere that is favorable to

long-term growth and development.

CHAPTER FOUR

FINDINGS AND ANALYSIS

4.0 Introduction

This chapter presents the findings of the study based on the data collected from
respondents and relevant documents. The objective of this chapter is to analyze and
interpret the data concerning the research questions and specific objectives set out in the
 32

study. The findings are structured to reflect the core themes explored in the research,
namely: the objectives and operational framework of the AEO program in Tanzania, the
impact of the AEO program on customs clearance time and trade efficiency, and the
role of the AEO program in improving compliance in the customs process.

The analysis begins with a descriptive overview of the respondents' demographic and
institutional characteristics to provide context for the subsequent findings. This is
followed by a detailed examination of each of the research objectives using both
quantitative and qualitative data. Where applicable, tables and charts are used to present
data patterns, and interpretations are provided to highlight the significance of the
results. The chapter seeks to draw clear connections between the empirical findings and
the theoretical framework established in earlier chapters, ultimately informing the
study’s conclusions and policy recommendations.

4.1 Descriptive Analysis

The study engaged a total of 86 respondents drawn from a diverse range of stakeholders
involved in trade facilitation at the Dar es Salaam Port. These included officials from
the Tanzania Revenue Authority (TRA), AEO-certified traders, non-AEO traders,
clearing and forwarding agents, and port logistics and freight operators. The aim was to
gather broad-based insights into the implementation and performance of the AEO
program in Tanzania.

Given the study’s focus on institutional performance and procedural outcomes,

demographic characteristics such as gender, age, and marital status were not deemed
analytically significant and are therefore excluded from detailed reporting. Instead, the
analysis focused on more relevant operational and organizational characteristics.

In terms of educational qualifications, a majority of respondents held tertiary-level

education, indicating a workforce capable of understanding and engaging with complex
customs and trade procedures. Specifically, 33.7% held bachelor's degrees, followed by
 33

24.4% with diplomas, 18.6% with certificates, 11.6% with postgraduate qualifications,
and 11.6% with O-Level education.

With regard to job positions, officers constituted the largest group (37.2%), followed by
supervisors (27.9%), clearing agents (18.6%), and managers (16.3%). This distribution
offers a comprehensive representation across operational and managerial levels within
the customs and logistics ecosystem.

The work experience of respondents varied considerably. The majority (29.1%) had 1–5
years of experience, followed by 26.7% with 6–10 years. About 20.9% had 11–16 years
of experience, 15.1% had more than 16 years, while 8.1% had less than one year of
experience. This mix provided a good balance of long-term institutional knowledge and
newer perspectives.

To further contextualize respondents' roles, data was collected on the department or area
of operation. The largest share (29.1%) were involved in customs clearance, followed
by 25.6% in logistics and transport, 20.9% in compliance and documentation, 12.8% in
inspection and enforcement, and 11.6% in policy and administration. These figures
demonstrate that a significant proportion of respondents are directly engaged in the core
functions of trade facilitation and customs processing.

Another important variable considered was the size of the organization from which the
respondents were drawn. About 40.7% represented medium-sized businesses, 34.9%
were from small enterprises, while 24.4% were from large organizations. This
distribution helped ensure a variety of organizational perspectives, from resource-
constrained firms to those with extensive operational reach.

For AEO-certified traders (n = 41), the study also analyzed their duration in the AEO
program. The largest group (36.6%) had been in the program for 1–3 years, followed by
29.3% with 4–6 years of participation. About 19.5% were relatively new, with less than
one year in the program, and 14.6% had more than six years of experience. This
 34

provided an opportunity to compare experiences based on exposure and program

maturity.

Overall, the descriptive analysis provided a detailed overview of the stakeholder

landscape involved in Tanzania’s AEO program, setting a solid foundation for
interpreting perceptions, institutional effectiveness, and policy outcomes in subsequent
sections of the study.

Table 4.1: Descriptive Results

Level of Education of Respondents

Level of Education Frequency Percentage (%)
O-Level 9 10.47
Certificate 17 19.77
Diploma 22 25.58
Degree 30 34.88
Masters and Above 8 9.3
Total 86 100
Working Position of Respondents
Working Position Frequency Percentage (%)
Officer 37 43.02
Supervisor 23 26.74
Manager 9 10.47
Clearing Agent 17 19.77
Total 86 100
Working Experience of Respondents
Working Experience Frequency Percentage (%)
Below 1 year 6 6.98
1–5 years 26 30.23
6–10 years 24 27.91
11–16 years 19 22.09
Above 16 years 11 12.79
Total 86 100
Department / Area of Operation
Customs Clearance 25 29.07%
Compliance and Documentation 18 20.93%
Logistics and Transport 22 25.58%
 35

Inspection and Enforcement 11 12.79%

Policy and Administration 10 11.63%
Total 86 100.00%
Organization Size
Small (1–49 employees or low volume) 30 34.88%
Medium (50–99 employees or moderate) 35 40.70%
Large (100+ employees or high volume) 21 24.42%
Total 86 100.00%
Years in AEO Program (AEOs only)
Less than 1 year 8 19.51% (of AEOs)
1–3 years 15 36.59%
4–6 years 12 29.27%
More than 6 years 6 14.63%
Total 41 80.49%

Source: Field data, 2025

4.2 The Objectives and Operational Framework of the AEO Program in Tanzania

The AEO program is a strategic trade facilitation initiative implemented by the TRA
under the WCO framework. Its primary objectives are to simplify, modernize, and
secure the international trade supply chain through mutual recognition of compliant
traders, reduced customs intervention, and enhanced predictability in clearance
procedures. AEO-certified traders are expected to benefit from expedited clearance,
fewer inspections, and improved access to customs services.

Despite the robust policy framework of the AEO program in Tanzania, the study
findings reveal notable gaps in its operational effectiveness. While the program's
theoretical goals are aligned with international best practices, its implementation on the
ground faces several challenges that undermine its efficiency and intended benefits.

The study found that 70 percent of respondents agreed that the implementation of the
AEO framework lacks consistency across key customs stations, particularly in terms of
the level of facilitation extended to AEOs. Some AEO traders reported that they still
 36

undergo multiple checks or delays similar to non-AEO traders, especially at busy ports
like Dar es Salaam.

Additionally, 61.7 percent of respondents indicated that the current AEO benefits are
not clearly communicated to stakeholders, leading to low awareness and
misconceptions about the program’s value proposition. This communication gap
discourages eligible importers and exporters from pursuing certification and limits the
program's potential impact.

Moreover, 55 percent of respondents raised concerns regarding the lack of regular

monitoring and evaluation mechanisms to track the program’s effectiveness. Without
consistent assessment, it becomes difficult to measure whether the program is achieving
its objectives or to identify areas for improvement.

These findings suggest that while the AEO program has a well-structured operational
framework, challenges in policy consistency, stakeholder engagement, and performance
tracking continue to hinder its effectiveness. Therefore, addressing these bottlenecks is
essential for maximizing the benefits of the AEO initiative and enhancing trade
facilitation in Tanzania. The detailed findings are presented in Table 4.2 below:

Table 4.2: Respondents’ Views on AEO Program Operational Challenges

Statement Response Percentage

(Yes) (%)
Implementation lacks consistency across customs stations 42 70.0
AEO benefits are not clearly communicated to 37 61.7
stakeholders
Lack of regular monitoring and evaluation of the AEO 33 55.0
program

Source: Field data, 2025

4.3 The Impact of the AEO Program on Customs Clearance Time and Trade
Efficiency in Tanzania
 37

One of the core objectives of the AEO program is to enhance trade efficiency by
reducing the time and cost associated with customs clearance. Ideally, AEO-certified
traders are expected to benefit from simplified procedures, fast-tracked processing, and
minimal physical inspections, which collectively contribute to more predictable and
efficient trade flows.

However, the study findings suggest that the impact of the AEO program on customs
clearance time and overall trade efficiency in Tanzania remains mixed. While some
improvements have been noted, several constraints continue to limit the full realization
of the program’s intended benefits.

According to the data collected, 66.7 percent of respondents agreed that the AEO
program has led to faster clearance times for certified traders, especially for those
dealing with frequent shipments and maintaining a clean compliance record. These
respondents cited a noticeable reduction in customs delays and bureaucratic processes,
particularly in comparison to non-AEO traders.

Despite these positive strides, 60 percent of respondents indicated that system

inefficiencies and delays in document processing still occur, even for AEOs. Challenges
such as frequent system downtimes, inconsistent application of AEO protocols, and
limited staff capacity to prioritize AEO consignments continue to slow down
operations.

Furthermore, 58.3 percent of respondents noted that the AEO program has not yet
significantly reduced trade transaction costs. While clearance times have improved in
some instances, associated logistical costs including storage fees, demurrage charges,
and handling delays, remain high due to factors beyond customs control, such as port
congestion and inefficiencies in the wider logistics chain.

These findings highlight that while the AEO program has shown potential in expediting
customs clearance, its broader impact on trade efficiency in Tanzania is moderated by
 38

persistent institutional and infrastructural challenges. To optimize the gains of the

program, there is a need for better inter-agency coordination, full automation of customs
processes, and enhanced capacity-building to ensure that AEO privileges are reliably
delivered. The summary of these findings is presented in Table 4.3 below:

Table 4.3: Respondents’ Views on the Impact of AEO on Clearance Time and
Trade Efficiency

Statement Response Percentage

(Yes) (%)
AEO program has improved customs clearance 40 66.7
time for certified traders
System inefficiencies still cause delays despite 36 60.0
AEO certification
AEO program has not significantly reduced trade 35 58.3
transaction costs

Source: Field Data, 2025

4.4 The role of the AEO Program in Improving Compliance in the Customs
Process in Tanzania

A central pillar of the AEO program is the enhancement of voluntary compliance

among trusted traders. By offering incentives such as expedited clearance, fewer
inspections, and prioritized services, the program aims to foster a culture of self-
regulation, transparency, and adherence to customs regulations. This study sought to
assess the extent to which the AEO framework has contributed to improved compliance
in Tanzania's customs environment.

The findings indicate that the AEO program has had a positive but partial influence on
promoting compliance. A significant majority 70 percent of respondents acknowledged
that AEO-certified traders generally demonstrate higher levels of compliance compared
to their non-certified counterparts. This is largely attributed to the strict eligibility
 39

requirements for certification, including a strong history of regulatory adherence, proper

record keeping, and financial solvency.

Moreover, 63.3 percent of respondents reported that the AEO program encourages
better internal control systems among participating companies, such as adopting risk
management practices, training staff on customs requirements, and maintaining accurate
transaction records. These internal mechanisms are seen as essential for sustaining the
benefits of AEO status.

However, 55 percent of respondents pointed out that compliance monitoring remains

weak, particularly in post-clearance audits and continuous evaluation of certified
operators. They observed that while initial vetting for AEO certification is rigorous,
ongoing oversight is not consistently enforced, creating a risk of complacency or
procedural lapses over time.

Additionally, some stakeholders expressed concern about the limited awareness and
access to the program, particularly among SMEs, who may lack the capacity to meet
AEO standards despite a willingness to comply. This suggests that while the AEO
program has helped raise compliance levels among certified traders, broader
institutional reforms and outreach are needed to reinforce compliance across the trade
community. The summarized findings are presented in Table 4.4 below:

Table 4.5: Respondents’ Views on the Role of AEO in Improving Compliance

Statement Response Percentage

(Yes) (%)
AEO-certified traders generally demonstrate higher levels of 42 70.0
compliance
AEO program has promoted better internal controls in certified 38 63.3
firms
Compliance monitoring and follow-up are weak post- 33 55.0
certification

Source: Field Data, 2025

 40

4.5 Conclusion

This chapter presented and analyzed the findings of the study aimed at assessing the
impact of the AEO program on trade facilitation at the Dar es Salaam Port. Through
descriptive and objective-based analysis, the study revealed several critical insights into
the operational realities of the AEO framework in Tanzania.

The demographic analysis showed a diverse group of respondents with considerable

professional experience and a relatively high level of education, reflecting the informed
nature of the feedback gathered. The objective-based findings demonstrate that while
the AEO program in Tanzania is founded on a sound operational framework and offers
significant potential for enhancing trade efficiency, several institutional and practical
limitations still hinder its full realization.

Firstly, although the structure of the AEO program is aligned with international best
practices, the implementation is affected by inadequate inter-agency coordination,
limited stakeholder engagement, and insufficient infrastructure. Secondly, the program
has contributed positively to reducing customs clearance time and enhancing trade
efficiency, particularly for certified traders. However, the benefits are not yet
widespread across all trader categories due to uneven access, limited digital integration,
and persistent procedural bottlenecks. Lastly, the AEO program has had a notable
impact on improving compliance among certified traders by promoting better internal
control systems and regulatory adherence. Nevertheless, the effectiveness of compliance
monitoring and post-certification follow-up remains an area of concern.

Overall, the findings suggest that while the AEO program is a valuable trade facilitation
tool, its success in Tanzania depends on strengthened institutional collaboration,
improved digital infrastructure, broader stakeholder participation, and continuous
capacity building. These insights pave the way for the final chapter, which presents
conclusions and actionable policy recommendations based on the study’s findings.
 41

CHAPTER FIVE
CONCLUSION AND RECOMMENDATIONS
5.1 Introduction

This chapter presents the concluding reflections of the study and outlines key
recommendations derived from the research findings. It begins by summarizing the
entire study, drawing together the key objectives and findings, and then presents the
main conclusions. Based on these insights, the chapter offers targeted recommendations
to relevant stakeholders and highlights potential areas for future research that could
expand on the work undertaken in this study.

5.2 Summary of the Study

The study sought to assess the impact of the AEO program on trade facilitation at Dar
es Salaam Port in Tanzania. Specifically, it aimed to examine the objectives and
operational framework of the AEO program, evaluate its impact on customs clearance
time and trade efficiency, and determine the role of the program in improving
compliance in the customs process.

To achieve these objectives, a descriptive research design was adopted and data were
collected from a total of 60 respondents, including customs officials, AEO-certified and
non-AEO traders, clearing and forwarding agents, and port logistics operators. The
findings revealed that while the AEO program in Tanzania has a strong structural
foundation aligned with global standards, its implementation is constrained by factors
such as limited stakeholder engagement, weak inter-agency collaboration, and
infrastructural gaps.

Furthermore, the study showed that AEO-certified traders generally experience faster
clearance times and improved operational efficiency. However, the program’s benefits
are not equally accessible to all stakeholders due to gaps in digital integration, selective
 42

participation, and uneven capacity development. On the compliance front, the program
has helped enhance regulatory adherence and reduce the incidence of customs-related
violations among certified members, though challenges remain in sustaining long-term
compliance and conducting consistent post-certification audits.

5.3 Conclusion

The findings of the study affirm that the AEO program has had a positive yet uneven
impact on trade facilitation at Dar es Salaam Port. While the program’s design meets
international best practices and offers considerable benefits to certified participants, its
implementation in the Tanzanian context remains a work in progress. Structural
limitations, inconsistent coordination among key agencies, and insufficient
infrastructure undermine the program’s overall effectiveness.

Nonetheless, the AEO initiative has clearly demonstrated potential in expediting

customs clearance, improving trader compliance, and fostering a more predictable
trading environment. These gains highlight the strategic importance of the program in
supporting national and regional trade competitiveness. For the AEO framework to
deliver its full benefits, there is a pressing need for deeper institutional reforms,
improved digital systems, broader stakeholder outreach, and stronger post-certification
follow-up mechanisms.

5.4 Recommendations

Based on the conclusions drawn, the study proposes the following recommendations:

5.4.1 Strengthen Inter-agency Collaboration

The government should enhance coordination among customs, regulatory bodies, and
port authorities to harmonize procedures and eliminate duplicated processes that delay
clearance.
 43

5.4.2 Broaden Stakeholder Awareness and Participation

TRA and relevant institutions should increase outreach and training programs for
traders, particularly small and medium-sized enterprises, to encourage broader
enrollment in the AEO program.

5.4.3 Upgrade Digital Infrastructure

Investment in advanced, integrated digital systems is essential to streamline clearance

procedures and improve data sharing among stakeholders.

5.4.4 Enhance Post-Certification Monitoring

Regular audits and performance assessments should be conducted on AEO-certified

traders to ensure ongoing compliance and deter misuse of the program.

5.4.5 Introduce Policy and Legislative Support

Clear policy guidelines and legal backing are needed to institutionalize the AEO
program and promote consistency in its implementation and enforcement across the
trade ecosystem.

5.4.6 Capacity Building for Customs Officials

Continuous training and professional development should be prioritized to ensure that

officers are well-versed in modern trade facilitation tools and AEO procedures.

5.3 Area of Further Studies

While this study has provided valuable insights into the AEO program’s impact on trade
facilitation at Dar es Salaam Port, future research can extend the scope by exploring the
following areas:
 44

i. A comparative analysis of the AEO program’s implementation across different

East African ports to assess regional harmonization and interoperability.
ii. An in-depth cost-benefit analysis of AEO participation for traders of different
sizes and sectors.
iii. The long-term impact of the AEO program on revenue collection and customs
enforcement effectiveness.
iv. Assessment of gender and inclusivity dimensions in access to and benefits from
the AEO program.
v. The role of private sector partnerships in strengthening the sustainability of the
AEO framework in Tanzania.
 45

Appendix I

Structured Questionnaire (for AEO Traders, Non-AEO Traders,

CFAs, Freight Operators)

SECTION A: Background Information

1. What is your role in the port trade operations?

o AEO Certified Trader

o Non-AEO Trader

o Clearing & Forwarding Agent

o Freight/Logistics Operator

o Other (please specify): __________

2. For how many years have you been involved in trade at Dar es Salaam Port?

o Less than 1 year

o 1–3 years

o 4–6 years

o Over 6 years

3. Are you familiar with the AEO program implemented by TRA?

o Yes

o No

SECTION B: Objectives and Operational Framework of the AEO Program

4. How familiar are you with the objectives of the AEO program?
 46

 Very familiar
 Somewhat familiar

 Not familiar

5. Do you believe the objectives of the AEO program are clear and relevant to
improving trade facilitation?

o Strongly agree

o Agree

o Neutral

o Disagree

o Strongly disagree

6. To what extent do the following apply in your experience?

Statement Yes No Not Sure

The AEO program promotes simplified procedures [] [] []

The AEO program ensures faster customs clearance [] [] []

There is adequate communication about AEO benefits [ ] [ ] [ ]

The application process for AEO is transparent [] [] []

SECTION C: Impact on Clearance Time and Trade Efficiency

7. Have you experienced faster clearance times under the AEO program?

 Yes
 No
 47

 Not applicable

8. On average, how many days does it take you to clear goods through customs?

o Less than 2 days

o 2–4 days

o 5–7 days

o More than 7 days

9. How has your operational efficiency changed since joining (or working with)
AEO?

o Improved significantly

o Improved slightly

o No change

o Declined

SECTION D: Role in Compliance

10. Does the AEO program encourage you to maintain better customs compliance?

 Yes
 No

11. Have you received any training related to customs compliance under the AEO
scheme?

 Yes

 No
 48

12. How often are post-certification audits or evaluations conducted by TRA?

 Frequently

 Occasionally

 Rarely

 Never

13. In your view, what are the most common compliance challenges still faced?

SECTION E: Challenges and Suggestions

14. What challenges have you faced in using the AEO system? (Select all that apply)

 Inadequate infrastructure
 Lack of training

 Limited agency coordination

 Bureaucratic delays

 High cost of certification

 Other: ___________

15. What improvements would you suggest to strengthen the AEO program?
 49

Appendix II

Key Informant Interview Guide

(for TRA Officials, Port Authority, Senior Customs Officers, AEO

Program Managers)

Section 1: General Understanding

1. What is your role in relation to the AEO program?

2. How long have you been involved with customs or trade facilitation programs at
Dar es Salaam Port?

Section 2: Program Framework and Objective

3. Could you describe the core objectives and intended benefits of the AEO program in
Tanzania?

4. In your view, how well is the program aligned with international standards like those
of the WCO?

Section 3: Implementation and Operations

5. How has the implementation of the AEO program progressed since its inception?
6. What institutional or infrastructural challenges have hindered smooth
implementation?

7. What steps have been taken to improve inter-agency collaboration and information-
sharing?

Section 4: Impact and Efficiency

 50

8. Based on your observations, has the AEO program significantly reduced clearance
time?
9. Has trade efficiency improved for AEO-certified traders versus non-AEO traders?
10. Are there any measurable changes in trade volumes or customs performance
metrics?

Section 5: Compliance and Monitoring

11. How does TRA ensure continued compliance of AEO-certified operators?

12. What monitoring or audit mechanisms are in place post-certification?
13. How effective is the risk management system in identifying non-compliant
behavior?

Section 6: Recommendations

14. What improvements would you suggest for better implementation and performance
of the AEO program?

15. Are there plans to expand or modify the program in the near future?