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SEA FREIGHT LOCAL IMPORT DEPARTMENT BORDER IMPORT CLEARANCE PROCEDURE

Document NO: BLX-TZA-SFI-PRO-0003 REV 06

Effective date: 17 January 2020

This Document is uncontrolled when printed This document is the property of Bolloré Logistics; Distribution and reproduction prohibited without

authorization of the Q-HSE Manager ``

Management System

Procedure

SEA FREIGHT LOCAL IMPORT DEPARTMENT

Border Import Clearance

Procedure

Prepared By Reviewed By Approved By

Celine

NATAI

Augustine

MWANG'ANGA

Bosco HAULE

Client Operation

Manager QHSE Manager

Sea freight Import Manager




This Document is uncontrolled when printed Page 1 of 13

This document is the property of Bolloré Logistics; Distribution and reproduction prohibited without

Authorization of the Q-HSE Manager ``

1.0 Scope and Purpose

1.1 Purpose

To outline the documentation requirements and procedure for clearance

purposes through a border post into Tanzania, and for cargo destined for

Tanzania home use (local consumption).

1.2 Scope

Local (Tanzania) standard clearance through a border post (duties & taxes payable). This procedure does not apply to personal effects

2.0 Responsibilities

Local Declaration team

• Shall ensure all appropriate documentation checked correctly and retained i.e. Check invoice if has correct, date, number, proper description, value, quantities etc.

• Basing on the document submitted he/she shall all information has been lodged in TANCIS

• Shall ensure the correct selection of cargo category to be imported

• Shall guide the company/client on the required permits for importation

• In case of disputed assessment , he/she shall guide the customer on what to be done

• Shall maintain communication on any update concerning the cargo Local Customer Service Unit

• Shall maintain communication with the customer on their cargo to keep them updated

• Shall ensure the account for the such customer is opened in the system

• Shall ensure all appropriate documentation checked correctly and retained

• Shall ensure the customer is updated on the progress of cargo on regular bases

• Shall clear the cargo within the agreed timeline

Head of Department

• Shall ensure the procedure is established, documented, implemented, communicated and maintained







3.0 Reference Documents

• ISO9001:2015 Quality Management system requirements

4.0 Definitions & Abbreviations

BTL Bollore Transport and Logistics

ISO

The International Organization for Standardization is an international standard-setting body composed of representatives from various national standards organizations

Quality Management system

(QMS) is a formalized system that documents processes, procedures, and responsibilities for achieving quality policies and objectives.

BIF Bond in Force

COC Certificate Of Conformity

COO Certificate Of Origin

QHSE Quality, Health, Safety and Environment

CRMS Customs Risk Management System

ICD Inland container depot

CRO Customs Release Order

GPSA Government Procurement Services Agency

TASAC Tanzania Shipping Agencies Corporation

TICTS Tanzania International Container Terminal Services

PAD Pre Arrival Declaration

CL Clearance plan

TPA Tanzania Ports Authority

TFDA Tanzania Food and Drugs Authority TAEC Tanzania Atomic Energy Commission

POD Port of Destination

POL Port of Loading

PSI Pre Shipment Inspection

GCLA Government Chemist Laboratory Authority RCN Road Consignment Note

CIF Cost, Insurance And Freight TBS Tanzania Bureau of Standards

TI Temporary Importation SOC Shipper Own Container FOB Free on board

CSU Customer Service Unit







5.0 Process & Methodology

Scanned copies of clearance documents are required within a minimum of seven

(7) working days prior loading of the cargo at POL.

This requirement is compulsory since it may otherwise delay the clearance

process of the consignment & attract additional charges pertaining to Parking

Fees & Truck detention charges at the respective borders.

Scanned copy of clearance documents shall be shared to the following:

• Sea-Freight Imports Local Manager

• Client Operations Manager

• Customer Service in Charge – Road Freight

• Declaration Officer 5.1 Documentation Requirement

5.1.1 Authority Letter

An Authority Letter allowing Bolloré Logistics Tanzania Ltd. (referred to as BTL) to act as the appointed Clearing & Forwarding Agent must be issued by the receiver and addressed to TRA, “Commissioner of Customs & Excise Duty”. The consignee for each consignment per truckload basis must issue an Authority Letter

5.1.2 Commercial Invoice

The Commercial Invoice must be detailed (as per pertaining Packing List) and the total CIF value (Cost, Insurance and Freight) of the consignment must be indicated. The Commercial Invoice must be addressed to the Consignee, providing full style physical address.

A full and comprehensive description of each item must be provided to avoid rejection during the Customs clearance process. The currency of the Commercial Invoice must be clearly specified and the invoice must be clearly worded in English

BTL recommends to:

• Have the exact details reflected on the Packing List copied and pasted on the Commercial Invoice.

• Values of each goods indicated in the adjacent column.

• A line for the “insurance cost” after the “Cargo value”

• A line for the “Freight cost” after the “Insurance cost” line

• A total CIF value indicated at the bottom of the document and after the “Freight cost” line.







It is important that the Commercial Invoice specify separately the amounts for Cost (Goods Value), Insurance and Freight. If the Commercial Invoice is not on CIF basis, it is compulsory to provide an Insurance Debit Note and a Freight Invoice for Customs Declaration purposes.

The shipper for each consignment on a per truckload basis must issue a Commercial Invoice.

5.1.3 Packing List

Description of the goods on the Packing List must match with the details

mentioned on the Commercial Invoice. The Packing List must indicate for each

item / package; the marks & numbers, cargo description, weight in metric tons,

dimensions in meters (Length, Width, Height) and cubic measurement.

The shipper for each consignment on a per truckload basis must issue a Packing

List.

5.1.4 RCN (Road Consignment Note)

The RCN is the “Transport” document. It stipulates the carrier, mode of transport,

registration details of the transport equipment utilized and the cargo details as

described on the Commercial Invoice and Packing List. If the cargo is

containerized, then the Container Number and Seals Numbers must be

mentioned on the RCN. Additional information can be inserted on the RCN

subject to the nature of the cargo and / or client’s requirements.

The C&F agent undertaking the transport at POL for each consignment per

truckload basis must issue RCN. A draft RCN (which does not necessarily match

exactly with the final RCN) must also be provided well in advance, to initiate the

pre-clearance formalities on Tanzania side.

The original (final version) will follow along with the other set of documents

provided to the truck driver at the time of truck dispatch.

5.1.5 Taxpayer Identification Number certificate

The consignee/receiver must provide a copy of the valid TIN Certificate prior to

commencement of customs pre-clearance

5.1.6 C17 Export Entry

The C17 Export Entry is the Export Customs entry processed at origin.







5.1.7 EAC / SADC COO (Certificate of Origin)

An EAC or SADC COO is applicable only for cargo originating from EAC or SADC

countries.

This Certificate of Origin will be issued by the Chamber of Commerce in the

country of origin. The COO is required by the Tanzanian Authorities to confirm

the true origin of the cargo and to obtain the preferential exemption under the

“rule of origin”.

A Copy of the COO must be forwarded in advance, as it constitutes one of the

requirements to initiate the pre-clearance formalities in Tanzania. The original

COO is required at the border post for Customs clearance purposes.

The Chamber of Commerce for each consignment must issue COO.

5.1.8 CoC (Certificate of Conformity)

Certificate of Conformity (COC) is compulsory in Tanzania for a wide range of

products as stipulated under TBS Pre-shipment Verification of Conformity

(PVoC) program, for which a comprehensive list can be obtained through the

authorized inspection bodies such as BV or SGS, or the TBS website itself.

The COC must be organized at load port by the shipper or supplier. TBS has

appointed various organizations within different regions of the world, who are

authorized to carry out PSI and issue COC.

Note that failure to avail the COC and a penalty will be levied by the Authorities

(15% of the CIF value). A risk for the consignment to be rejected will also be

substantial.

Further information on the TBS PVoC program can be found at the following

website:

http://www.tbs.go.tz/index.php/services/category/pre-

shipment_verification_of_conformity/







5.1.9 C41 Form

A C41 form is a Customs document, which stipulates the particulars of the goods

and their customs value. The consignee (or importer) must issue this document

for each specific consignment.

The consignee is required to duly fill , sign and stamp this form and forward it to

BTL well in advance since it constitutes one of the requirement to initiate the pre-

clearance formalities in Tanzania.

A C41 Form must be issued by the consignee on a per truckload basis

5.1.10 Other Documents

Other documents may be required by the Authorities to execute the clearance

formalities, such as but not limited to Exemption letters, Permits from

Government bodies (TBS, TFDA, TAEC, GCLA etc.).

Such requirements are mainly linked to the nature of the goods and it is the

responsibility of the importer to obtain the relevant permits and documentation.

Depending on the agreed scope of work, BTL can assist in obtaining some of

these permits.

More information on some of the requirements can be found at the following

websites:

TFDA - www.tfda.or.tz

TAEC - www.taec.or.tz

GCLA - http://gcla.go.tz

Ministry of Agriculture, Food Security & Co-operatives -

http://kilimo.go.tz/legislation%20and%20regulations/legislations/legislations.htm

5.2 Import Clearance process

5.2.1 TANCIS Clearance Plan

Based on receipt of full set of clearance documents as stipulated under section

1 – Summary of Documents, a customs entry declaration will be prepared and

submitted online by BTL on the TANCIS system. The customs declaration can

be done in two possible ways:







a) TANCIS PAD prior to truck arrival, awaiting manifest details

Provided full set of clearance documents are received from the client prior

to truck arrival at the designated Tanzanian border, the declaration

application can be done in which case TRA will treat the declaration as

PAD, awaiting manifest registration details which once confirmed by TRA

Border Post will be uploaded and linked by BTL to the customs entry

declaration on TANCIS

b) TANCIS PMD – Post Manifest Declaration Clearance Plan

For customs declaration after truck arrival at the border, BTL will arrange

for Post manifest declaration on TANCIS.

Please note both of the above customs entry declarations take an average of 2

working days for registration i.e. If no rejection is raised by TRA on the system.

An exception to the rule is shipment with numerous line items, which take up 3-

4 working days depending on the list of items imported as per invoice / packing

list provided.

In the event of a rejection, BTL Declaration Desk will immediately inform the

customer and/ or the relevant Bolloré office. An automatic notification email will

be sent to the Importer and the Clearing Agent.

If the declaration is successfully done, TANCIS system generates out an

assessment notice (TANSAD) with reference number TZDL-14-Followed by

numerical number e.g. TZDL-14-100020.

Furthermore, the system generates payment advise notice and payment control

number forms which are used for payment of the taxes assessed thereof.

Importer or agent arranges payment to TRA account through direct online

transfer or bank transfer.

Once the payment is made the same should be reflected into the system to be

able to proceed for selectivity, which shows level of intervention on physical

cargo verification, by Customs.

5.2.2 Customs Selectivity –CRMS

Upon payment of Taxes, the CRMS will indicate the level of physical customs

selectivity, which can be as follows:







• Green: Direct release without physical verification

• Yellow: Documentary check and/or Verification

• Red: Physical verification compulsory

5.2.3 Customs Verification

If CRMS marks the shipment selectivity as “RED”. The physical verification is

compulsory. Bollore Africa Logistics Tanzania Ltd will arrange with the TRA

Border Post to book for the verification exercise.

Once booking is done, the truck will be directed by TRA to the verification area

& the customs officer will organize to verify the contents loaded on the truck.

Upon completion of the verification exercise, the customs officer will input the

verification account on CRMS, waiting for the same to be reviewed by the

customs supervisor / manager in charge at the designated border post.

NB: In case of any additional items & /or discrepancies found in the declaration

documents, customs will hold the customs release and will raise a query which

consignee / Appointed clearing agent will be required to justify by providing

reasonable explanations & /or confirm compliance with the findings i.e. Agreeing

to pay the related additional taxes as well as applicable penalty charges.

5.2.4 TANSAD Tanzania Single Administrative Document

Upon completion of Customs verifications, Customs will finalize the verification

remarks on TANCIS and issue TANSAD which enables the customs release

order to be printed.

NB: For Customers that are marked on the “Green Chanel” the TANSAD will be

issued immediately upon selectivity.

5.2.5 Customs Release Order

A Copy of the TANSAD needs to be printed and lodged at Customs to enable

them to issue the Customs release Order







6.0 Imports under exclusive mandate of TASAC and GPSA

Implementation of The Tanzania Shipping Agencies Act, 2017 and The Public

Procurement Regulations, 2013 were made effective in 2019. Tanzania Shipping

Agency Corporation (TASAC) and The Government Procurement Services

Agency (GPSA) have been given mandate to carry out customs clearance as

detailed below.

6.1 Clearance under TASAC

The government of Tanzania has mandated TASAC to carry out customs

clearance of all: minerals, mineral concentrates, machineries, equipment,

products or extracts related to minerals and petroleum, ammunition, live animals,

and arms government trophies or any other goods as the Minister may by order

published in the gazette.

Therefore, when importing the afore-mentioned cargoes, the customs clearance

procedure described above shall be carried out by TASAC.

6.2 Clearance under GPSA

GPSA is the government agency responsible for procurement and customs

clearance shipments consigned to the government of Tanzania, ministries and/or

any government agencies.

Therefore, when importing the afore-mentioned cargoes, the customs clearance

procedure described above shall be carried out by GPSA.







7.0 Key Performance Indicators and Responsibilities

Summarised customs border clearance lead times under single customs territory (SCT)

SN Summarised Clearance steps Process owner Expected Timeline

1 Provision of Clearance Documents (Full set including all applicable permit, exemptions & copy of RCN)

Client 5 days prior to loading

2

TANCIS formalities (i.e. Lodging of customs entry with TRA)

BTL Tanzania

1 Day after securing Full set of documents & prior to truck arrival at the border. 3-4 working days for consignments with more than 50 line items / truck.

3 Issuance of Final assessment on SCT (copy shared with Client) BTL Tanzania 1 Day

4 Payment of Duties & Taxes

Client Within 2 Days of completion of TANCIS formalities

5

Manifest approval formalities on SCT by TRA at the ICD in Kenya (TRA officer approves manifest before sighting of the truck)

BTL Tanzania 1 -2 Days

6 Green light for cargo loading & truck dispatch to ICD in Kenya BTL Tanzania 1 Day

7 Physical Customs Verification (KRA + TRA) at the ICD Kenya

KRA/TRA / BTL Tanzania

1 Day

8 Lodge BT (Bonded Transportation) document on SCT BTL Tanzania 1 Day

9 BT (Bond Transportation) approval by KRA at the ICD in Kenya

BTL Tanzania Same day of Lodging BT

10 BT approved - C2 (Cargo movement sheet) issued on SCT ( BLX TZ & KRA can view).

BTL Tanzania Same day of BT issuance

11 Trucks enroute to border for clearance BTL Tanzania 1 day

12 Border clearance Kenya side - Sighting & release (some cases verification is requested)

BTL Tanzania 1 day

13 Border clearance Tanzania side- Sighting & release (some cases verification is requested)

BTL Tanzania 1 day

14 Truck enroute to destination BTL Tanzania 2 days from Namanga Border







8.0 Revision history

Sn Rev No.

Revision date

Review made by;

Description Of Changes Made

1. 05 10, July 2018 QHSE

Manager(MR)

Revision made on; Procedure format 1.0 Scope and Purpose, 1.0 Definitions & Abbreviations, 2.0 Reference Documents 3.0 Responsibilities, 5.0 Revision history 9.0 Records

2 06 17 January

2020 QHSE

Manager(MR)

Review to include section 5.3 Clearance under TASAC and 5.4 Clearance under GPSA, 4.0 Definitions & Abbreviations to include GPSA and TASAC







9.0 Records

• Authority Letter

• Commercial Invoice

• Itemized Packing List

• RCN (Road Consignment Note)

• Taxpayer Identification Number Certificate

• C17 Export Entry

• C41 Form

• EAC and/or SADC COO (Certificate of Origin)

• COC (Certificate of Conformity