Key Procedures

1. Identify the product and market – Determine what goods are in demand by conducting a simple market survey. A retailer in Mwanza, for example, might notice that mobile phone accessories sell well near universities.

2. Source the goods – Buy from wholesalers, manufacturers, or other retailers. A shopkeeper in Dar es Salaam might purchase soap, cooking oil, and sugar from a wholesaler in the city.

3. Negotiate price and terms – Agree on price, quantity, payment method (cash or credit), and delivery arrangements.

4. Complete the transaction – Receive the goods, inspect them for quality, and make payment. Keep records such as receipts or invoices for accounting purposes.

5. Resell to customers – Sell the products to final consumers, either in a retail shop, market stall, or through mobile vending.

Documentation in Domestic Trade

Even in local trade, basic documents help protect both buyers and sellers:

• Receipt or invoice – Shows the items bought, quantity, price, and date
• Delivery note – Confirms goods were received
• Credit agreement – Written record if goods are bought on credit

International trade involves more complex procedures because goods cross national borders. The two main types are export (selling out) and import (buying in).

Export Procedures (Selling to Another Country)

When a Tanzanian business wants to sell products to a buyer in Kenya, Uganda, or any other country, the following steps apply:

Step 1: Identify a foreign buyer – The exporter finds a customer abroad through trade fairs, online platforms, or business contacts.

Step 2: Check regulations – Ensure the product is allowed for export from Tanzania and can be imported into the destination country. Some goods may be restricted or prohibited.

Step 3: Appoint a Clearing and Forwarding Agent (CFA) – A licensed CFA handles customs procedures on behalf of the exporter. This is required by law in Tanzania.

Step 4: Prepare export documents – Key documents include:

• Commercial invoice
• Packing list
• Export license (if required)
• Taxpayer Identification Number (TIN)
• Agent authorization letter

Step 5: Submit documents to customs – The CFA uploads documents to the Tanzania Customs Integrated System (TANCIS) for processing.

Step 6: Pay any applicable taxes or duties – Most exports are duty-free, but some products may incur export fees.

Step 7: Book shipping and deliver goods – The CFA arranges container space, stuffs the goods under customs supervision, and hands them to the shipping line.

Import Procedures (Buying from Another Country)

When a Tanzanian business imports goods (for example, electronics from China), the process mirrors export but in reverse:

1. Obtain an import license – For certain goods, an import license from the relevant authority is required.
2. Open a letter of credit (LC) – If paying through a bank, the importer arranges payment security.
3. Appoint a clearing and forwarding agent – The CFA in Tanzania will clear the goods at the port.
4. Submit import documents – Bill of lading, commercial invoice, packing list, certificate of origin, and import declaration.
5. Pay customs duties and taxes – Import duties are calculated based on the value and type of goods.
6. Clear the goods from the port – After inspection and payment, goods are released to the importer.

Key Institutions in Tanzania's International Trade

• Tanzania Revenue Authority (TRA) – Manages customs, duties, and taxes
• Tanzania Trade Development Authority (TANTRADE) – Promotes exports and provides trade information
• Bank of Tanzania – Handles foreign exchange transactions
• Clearing and Forwarding Agents (CFAs) – Licensed agents who handle documentation and customs clearance

Incoterms (International Commercial Terms)

Incoterms are standard trade terms that define the responsibilities of buyers and sellers in international transactions. Common incoterms include:

• FOB (Free on Board) – The seller delivers goods on board the vessel. The buyer pays for shipping and insurance.
• CIF (Cost, Insurance, and Freight) – The seller pays for transport and insurance to the destination port.
• EXW (Ex Works) – The buyer picks up goods at the seller's premises and handles all transport costs.

Understanding incoterms helps traders know who pays for what during shipping.

Scenario: Amina, a young entrepreneur from Arusha, wants to export organic honey to Rwanda. She has found a buyer in Kigali who orders 500 kilograms monthly.

What Amina must do:

1. Register her business and obtain a TIN from TRA
2. Apply for an export license if required for honey
3. Appoint a licensed CFA to handle customs
4. Prepare documents: invoice, packing list, certificate of origin
5. Submit documents through TANCIS
6. Book transport (road freight to the Rwanda border)
7. Ensure the honey meets Rwanda's import food safety standards

Meanwhile, if a shop owner in Arusha wants to import smartphones from Dubai, they must:

1. Confirm the phones are allowed into Tanzania
2. Use a CFA to clear goods at the port
3. Pay import duties (usually 25% CIF value for electronics)
4. Collect the phones after customs clearance

This case shows that both exporting and importing require following specific steps, documents, and professional help (CFAs) to succeed.

• Domestic trade involves buying from wholesalers and selling to retailers or consumers
• International trade requires following export and import procedures
• Key documents include invoices, packing lists, and licenses
• Clearing and Forwarding Agents (CFAs) are essential for customs clearance
• Incoterms like FOB and CIF define shipping responsibilities
• Institutions such as TRA and TANTRADE support traders in Tanzania

If you are a Form 4 student whose parent runs a small shop in Mbeya, understanding these procedures helps them source goods more efficiently. For example, if your parent wants to import textiles from Tanzania's trade fairs or buy in bulk from a wholesaler in Dar es Salaam, knowing the proper documentation and negotiation steps ensures they get quality goods at better prices and avoid delays at checkpoints.