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Construction of Tanzanite Bridge in Dar es Salaam is one of the tax benefits. Pay tax to build our Nation
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INTRODUCTION 

Tanzania Revenue Authority wishes to inform the business community that in a bid to promote faster clearance of goods through Customs within the region, the Authorized Economic Operator (AEO) program was introduced to enable compliant traders to benefit from a special treatment at the regional level throughtout the cargo clearance process.  Establishment of AEO program is meant to enhance trade facilitation and promote partnership between Customs and business as per World Customs Organization’s SAFE Framework of standards.

AEO is defined as an individual, a business entity or a company that is involved in international trade and is duly authorized by the Commissioner for Customs to transact business with Customs under special arrangements.

APPLICANT TO AEO PROGRAM

Any trader involved in the international supply chain and carries out Customs related activity in the East Africa Community (EAC)  can apply for the AEO status. An applicant will be assessed in line with the respective nature of business, and AEO status will be related to the specific trader’s categories that the trader has qualified for. The categories are:

1)    Importers

2)    Exporters

3)    Clearing and Forwarding Agents

4)    Transporters

5)    Manufacturers (engaged in import and export), and

6)    Bonded Warehouse Operators

REGIONAL AEO BENEFITS

The AEO shall enjoy benefits applicable for the category/ categories that they are authorized for, throughout the EAC countries. The Regional AEO shall be uniquely identified throughout the clearance process. The benefits include: 

Importer/ Exporter/ Manufacturer

Expedited processing of customs declarations (entries). All AEO declarations will be given priority throughout the whole clearance process. This will include:

1)    Automatic processing of declaration

2)    No physical or document examination except for random or risk based interventions/exceptional cases

3)    Electronic Cargo Tracking System (ECTS) requirement waiver where applicable

4)    Expedited payment of refund claims

5)    Reduced Customs security wherever applicable

Clearing and Forwarding Agents

1)    Guaranteed renewal of Customs agent’s license

2)    Priority to participate in Customs initiatives

3)    Priority treatment in cargo clearance chain

4)    Waiver of movement bond requirements for AEO

NB: This benefit shall not absolve the Clearing Agent from any liability in the event that the consignment is lost or short-landed.

Transporters

1)    Guaranteed renewal of transit goods licence and any other licences issued by Customs.

2)    Exemption from the mandatory use of Customs Electronic Cargo Tracking System (ECTS).

3)    Priority clearance at the borders.

 

Warehouse Operators

1)    Self-management of bonded warehouse

2)    Guaranteed renewal of Warehouse Operator’s license

3)    Reduced Customs security wherever applicable

 

ELIGIBILITY REQUIREMENTS

 

To be eligible for authorization, the Commissioner of Customs may require to verify any statement in an application. The applicant should be able to provide information pertaining to all of the following or any other:

1)      Company details

Company details should indicate company profiles, contact persons, nature of business and employee profile. 

2)      Record of Compliance

applicant should not have contravened any laws, rules and regulations pertaining to Customs, Domestic Taxes and all relevant Government Agencies for a period of 3 years prior to application for authorisation. 

3)      Maintenance of records

The applicant shall maintain timely, accurate, complete and verifiable records relating to its customs transactions. The applicant must demonstrate that the computer systems, the organizational internal operational procedures and processes will ensure compliance. 

4)      Financial Solvency

The applicant must demonstrate adequate financial standing. The applicant shall be deemed to have met the conditions of solvency if it can be proven for the past 3 years. The applicant must have fulfilled his obligations regarding payments of Customs duties, taxes and other charges for last three years. 

5)      Security and safety standards

The applicant must demonstrate a high level of awareness on  security and established safety measures, internally and in its business activities with clients. Understanding and implementation of safety and security controls must extend to the applicants personnel.   

6)      Volume of business

The volume of the applicant’s business will be used to gauge eligibility (Risk assessment) for authorisation.

7)      Nature of Goods Traded

The applicant shall be assessed as to the nature and flow of goods traded in.

8)  Trade Partners

The applicant shall have to prove to the satisfaction of Customs that its trade partners demonstrate high level of awareness of security and established safety measures. 

For further inquiry and information you may contact NATIONAL PROJECT MANAGER onPhone Number +255222863446

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