Customs Clearance

Procedures
2023/2024
Meaning
• Customs clearance is a compulsory process for any goods
entering or leaving a country.
• It involves preparation and submission of documentations
to facilitate exports or imports into the country
• Representing client during customs examination,
assessment, payment of duty and taking delivery of cargo
from customs after clearance along with documents
Cont…
• From this meaning, we may note the following:
i. DOCUMENTATION
ii. PAYMENT OF DUTIES
iii. EXAMINATION
iv. DELIVERY OF GOODS
1.DOCUMENTATION
• The meaning of Documentation:
i. The use of documentary evidence as attachments/proof
As a proof ;Documentation’ refers to the totality of papers
constituing/containing evidence(of/on something).

ii. A furnishing with documents, as to fill the information in the

field, boxes. Etc As a process
iii. As a process; Documentation’ refers to the recording of
something on paper, and subsequent processing of same;
Cont.
• So cargo documentation refers to both the
process of preparing and processing cargo
records(affectionately reffered to as Cargo
Documents)
Importance of Cargo Documentation..
• From the definitions. It is abundantly clear that cargo
documentation constituites:
• An effective means of communication on cargo ,among the
many interested parties
• A for record keeping of Accounting for cargo depandable
source of/for information
• A reliable testimony on a numcritical cargo related
issues:ownership,nature,status(quantity,ber of legality,origin
etc)
Types of Documentations in International
Trade
• There are numerous documents involved in International Trade, many
types, exact number depending on the nature of goods and attendant
Trade or Government Regulations in Tanzania (as Export/Transit/Import
Country) on one hand and counterparty country of destination.
i. Transport Document
ii. Commercial Documents
iii. Financial Documents
iv. Regulatory Documents
v. Insurance Documents
1. TRANSPORT DOCUMENTS
• Document constituing/containing the contract between
cargo owner(affectionately refered to as Cargo shipper )and
cargo transporter(affectionately refered to as Cargo Carrier
for transportation of specified goods to specified
destination.EG BILL OF LADING(sea), AIRWAY BILL(air), ROAD
CONSIGNMENT NOTE(Land) etc
Why is the Transport Documents so
important?
• It is so important because
 It represents the contract of carriage, containing the conditions

that pertain to the shipping transaction. It should be noted

that it will contain all of the terms and conditions under
which the transport operation will take place;
• It is a proof that the merchandise has been delivered for transport;
the seller can demonstrate this to the customer, which is the
only way the buyer could get their hands on this document.
Cont…
• It shows that the goods were delivered in good conditions. The
freight carrier would not accept any merchandise that is visibly
damaged or contains noticeable flaws, notifying the exporter of
the situation. In the event that the freight carrier notices
damage or flaws, the transport document becomes know as a
“dirty” transport document, with the perceived damage noted at
the time of delivery.
Cont..
• It shows the ownership of the goods, determining who is
authorized to present themselves at Customs to receive the
merchandise. In the case of maritime transport, the transport
document is called a “Bill of lading,” known by its initials, BL.
This document represents other values for the recipient named,
as it allows the transmission of ownership of the goods. It is to
say that this document allows the purchaser of the goods to
transmit the ownership of it to someone else, often endorsing
BL, so the second purchaser to carry out the importation.
NB:
• In summary, the importance of the transport document, in any of the modes
of transport used is as follows:
• It allows whoever is nominated to claim the goods before the Customs
authorities upon their arrival;
• It makes it possible to observe the conditions of the contract of carriage;
• It shows that the merchandise has delivered without suffering apparent
damage;
• And in the case of maritime transport, this document makes it possible to
transfer ownership of the goods through a simple endorsement.
• Without one of these documents, the recipient of the goods would not be
allowed to claim the goods at Customs. Delays in obtaining transport
document generate costs and delay the release of goods.
2.Commercial Documents
 Documents whose purpose is attest to the actual price-
paid/to be paid for the goods by the buyer
• E.g Final Invoice , Proforma Invoice
Why is Commercial Invoice is so important?
• It is used to establish the export and import
declaration, the transport title, the documents of origin
and any payment by documentary credit.
• It is therefore required for any international
consignment and is always required for customs
clearance
3. Financial Documents
 Documents whose purpose is to attest to the manner in
which payment for the goods is to be made
• E.g Letter of Credit, Bank Receipts
• These documents are essential in helping businesses in
negotiating the complexities of global trade and
ensuring the success of their trading cycle by
mitigating risk. Documentary credits provide payment
security, facilitating secure trade.
4. Regulatory Documents
 Documents whose purpose is to attest to the weight and
quality of specified goods
 Documents whose purpose is to attest to the existence of

the government/manufacturer consents on the

sale/purchase and/export/import of the goods e.g
permits, certificate
Cont..
• These are documents required for export or import based on
special requirements related to the country of export or
import or the specialized nature of the goods being traded. ■
Specialized documents include export certifications for
natural resource commodities; import permits for strategic
goods such as arms, ammunition and radioactive materials;
health certificate(s) for animals; phytosanitary certificate(s)
for foodstuffs;
5. Insurance Documents
 Documents whose purpose is to attest to the existence of
insurance cover against loss/damage to specified goods
while in transit\
PAYMENT OF DUTIES
• Payment of Import and excise duties above 5 millions
are usually done through commercial banks.
Payments of Import and excise duties with value less
than 5 million shillings is done at Citi bank branch
located at the TRA CUSTOMS HOUSE
EXAMINATION OF GOODS

• This is the physical examination of goods

entered in accordance with section 34 of
the EACCMA, 2004. The verification is to
ascertain that the declaration is correct for
purpose of tax collection as provided for
under Section 41 of the EACCMA, 2004,
Target:
• The verification should target to confirm among others the following
I. Description of the goods vis-à-vis the declaration
II. Declaration of value
III. Declaration on quantity
IV. Declaration on type
V. Declaration on tariff code

The verification findings commonly refered to "Examination Account" should

be captured online by the Customs Examination Officers to facilitate
clearance and release of goods
• Inspection of imported goods is done by using inspectors that are
either TBS officials or any appointed public servant as per Standards
Act No. 2 of 2009, section 23(1)
• the entire importation process which has three main stages; pre-
arrival, arrival, and post arrival of the goods
1.Pre-verification of goods –

• Testing & inspection -

• Issuing of CoC

2. Arrival (At the entry points)

• Verifying CoC
• Upload the information to TRA system for release
• Issue release/hold order
Post Arrival

• Testing for samples for 100% verification

• Sending results to entry points
Documents used for the inspection
• There are two main documents of inspections. The
first document involves inspecting imported goods
through verifying Certificate of Conformity (CoC),
documents which provide proof of compliance to the
required standards. The second form is designated
and used for goods that are to be tested for
verification, the samples are taken to TBS Head
Quarters for testing, and later the results are sent
back to the respective entry point.
• If the test result show that the product has failed
the required test, then the importer has to
return the commodities to the country of origin
or commodities have to be destroyed at
importers own cost.
Release of GOODS
• MEANS SYSTEM AUTHORIZATION OF FINAL CLEARANCE OF GOODS
AND THE SUSEQUENT PHYSICAL REMOVAL OF GOODS FOR DELIVERY
FROM CUSTOMS AREA TO THE IMPORTER
• This is usually done upon payment of duties or execution of sufficient
security bond to secure the taxes payable
• Once the goods have been released in he respective customs system,
the cargo is delivered to the owner by the clearing agent and this may
then be followed with the process of bond cancellation for bonded
cargo
Provided that:
• .no offence has been found
• The import or export licence or any other documents required have
been acquired
• All permits relating to the procedure concerned have been acquired
and
• Any duties and taxes have been paid or that appropriate action has
been taken to ensure their collection