Export trade

Export trade

Export trade is the process of selling goods and services that are produced within a country to other countries. In export trade, a country or business sells products or services outside its borders to international buyers.

The goods or services sold are referred to as exports. For example, a Tanzanian company might export coffee grown in Tanzania to other countries like the United States or Europe. A person, company, or institution engaged in export trade is referred to as an exporter, and the process of selling goods abroad is known as exportation.

Export trade can be categorized into two types

1. Direct Export: This type of export involves selling products directly to a customer in a foreign country without using any intermediaries or middlemen. The exporter or manufacturer handles all processes related to the export, including client communication, market research, negotiation of contracts, setting up distribution channels, shipment, and collecting payments.
2. Indirect Export: In this type of export, the exporter sells goods to foreign buyers through middlemen or intermediaries, such as merchant exporters, export houses, brokers, or commission agents.

Export procedures in Tanzania

i. Identification of the Potential Customer: The export process begins when the exporter identifies a buyer abroad, either through an order or by exporting goods to their retail outlet. The exporter must carefully research potential customers, understand their needs, and ensure the shipping process can be carried out smoothly and affordably.

ii. Investigation of Domestic and International Regulations: The exporter must ensure that the goods are allowed to be exported from Tanzania and imported into the destination country. This involves checking for any restrictions, prohibitions, or necessary documentation to ensure compliance with both domestic and international laws.

iii. Appointing a Clearing and Forwarding Agent (CFA): The exporter is required to appoint a licensed CFA to handle the clearance of goods for export. The CFA is responsible for ensuring that the necessary export documentation is in order and assists in the customs clearance process.

iv. Securing Required Documents: The exporter must secure all necessary documents for the export process, including the invoice, export license, packing list, Taxpayer Identification Number (TIN), and agent authorization letter. These documents are typically submitted online before the goods are examined.

v. Submission of Documents to Customs: The exporter submits the relevant documents to the CFA, who uploads them into the Tanzania Customs Integrated System (TANCIS). The customs authorities process the documents and verify compliance with all regulations.

vi. Assessment of Taxes and Duties: The customs officer assesses whether export taxes or duties are applicable based on the value of the goods. Most exports from Tanzania are duty-free, but some products may be subject to export taxes or fees.

vii. Booking Shipping and Stuffing Goods: Once the goods are cleared, the CFA books containers and space with the shipping line. The goods are then stuffed into containers under customs supervision to ensure proper handling. The shipping line submits the vessel schedule information to customs for further processing.