Import procedures and documentation in Tanzania

Import procedures and documentation in Tanzania

In order to import goods in Tanzania, the following procedures may be followed.

1. Making an inquiry: This requesting information on goods to be imported. This can be made orally, electronically through an internet or by writing a letter.

2. Contract to buy goods: An importer enter into contract with exporter and receivers a pro-forma invoice.

3. Applying and obtaining import permit or import license from legal empowered body. Sometimes government permit importation of some goods without import license, such goods are shown in the open in general license (OGL) list issued by the Government from time to time.

4. Arrangement for payments. The importer arranges how the payment will be made to the exporter — this may include methods such as telegraphic transfer, letter of credit, or bank draft.

5. Receipt of the shipping documents and documents of the title. These include documents such as the bill of lading, airway bill, invoice, and certificate of origin which are necessary to claim ownership and take delivery of the goods.

6. Customs Clearance: Customs Clearance can be done by clearing and forwarding agents.

7. Collection of goods: A bill of entry is prepared and submitted to customs officer and goods are released after payments of important duty (if any). Bill of entry is a document containing the name of the port of which goods are received, name of the ship, descriptions and value of the goods entering the country.

Import control

Is an action taken by a country to regulate the volume of goods to be purchased from the foreign country. This will be among the measures to protect the balance of payment being in disequilibrium (unfavorable).

Advantages of controlling imports

1. To Protect Infant Industries at Home Against Imported Goods It gives young or emerging industries time to grow without being crushed by competition from well-established foreign producers.

2. To Make a Country Self-Reliant By limiting imports, the country is encouraged to produce essential goods locally, reducing dependence on foreign suppliers.

3. To Reduce the Balance of Payment Problem Import control helps to limit foreign spending and improve a country's trade position by reducing the trade deficit.

4. To Encourage Specialization at Home By focusing on producing goods where the country has a comparative advantage, it can improve productivity and efficiency.

5. To Avoid the Entry of Harmful Commodities into a Country Import control prevents the importation of dangerous or substandard goods that may pose a risk to health, safety, or morals.

6. To Enable a Country to Develop Its Own Natural Resources By restricting imports, countries are motivated to explore and utilize their own raw materials and resources for local production.

Disadvantage of controlling imports

1. Resources misuse by protected industries because this will encourage inefficient industry to remain in a business. This results to misuse of resources.

2. Increasing costs: High tariffs on raw –materials imported increase the cost of production while tariffs on finished goods raise prices and cost of distribution which can cause inflation.

3. Encourage poor quality of goods: Protected industries may become careless and produce poor quality products.

4. Protected industries may fail to produce enough to meet demand appropriately hence storage of goods in the local market.

5. Monopoly creation: When the industry is comprised with few organized firms protection may cause monopoly which can lead to poor services delivery.

6. Smuggling: High tariffs encourage smuggling because importers are not willing to pay high tax levied on imported goods.

7. Limited choice to consumers especially for goods produced abroad.

Methods or ways of controlling importation/imports

1. Imposing heavy tariffs: Tax or duty levied on traded commodities crossing the national boundaries.

2. Fixing import quotas: Fixing maximum units or value of goods/services for import allowed.

3. Total ban policy: A complete prohibition of importation of named goods.

4. Exchange control policy: Through the central bank a country restrict the amount of foreign currencies available for importing goods.

5. Subsidization policy: Government may subsidize domestic producers to enable them to complete with foreign sellers, hence low prices for home goods.

6. Adopting devaluation policy: Deliberate action by government to reduce the value of her currency so as to make import expensive.