Tanzania legislation change affects business in Zambia

Tanzania legislation change affects business in Zambia
Written by Patson Chilemba
Sunday, September 06, 2009 6:57:26 PM

THE Dar-es-salaam Port logistics committee in Kapiri Mposhi has complained to Zambia's envoy in Tanzania to intervene in the matter where new legislation in Tanzania has affected the conduct of business in Zambia.

In a letter dated August 18, 2009, and jointly signed by the committee's chairman Chrispine Kasonde and secretary Darius Kapembwa, the committee stated that the Zambian communities had been facing difficulties in transporting transit goods from Dar-es-salaam to Kapiri Mposhi due to the change in legislation on the Tanzanian side. The committee stated that the current system required each and every importer transiting goods to hire a wagon or luggage van at a cost of US $3,100 and US $3,400.

"Those charges are beyond most importers who import petty consignments," the committee stated. "The transportation difficulties referred to above emanated from change of legislation by Tanzania Revenue Authority to bar importers from transporting transit goods from the port to TAZARA rail terminal using containerized trucks."

The committee stated that the change in legislation was as a result of concerns of revenue loss due to unscrupulous traders who purported to be transiting goods and yet they imported for the local market.

"It has come to our knowledge that this measure was intended to prevent loss of revenue on the part of TANZANIA REVENUE AUTHORITY (TRA). In the process of preventing loss of revenue, TANZANIA REVENUE AUTHORITY (TRA) introduced two measures. These are; (a) Loading and transportation of goods must be done at the port instead of taking goods to Tazara in containerized trucks," the committee stated. "(b) TAZARA management were instructed to set a bonded warehouse at their terminal to which goods shall be moved in bond and customs officers seconded to it for the purpose of managing it. TAZARA has already provided warehouse as instructed."

The committee stated that before the change of legislation, goods would be loaded in containerised trucks, which were sealed and taken to TAZARA terminal by customs officers, and all the transit documents would be prepared for each consignment.

"TAZARA and TANZANIA REVENUE AUTHORITY (TRA) officers would witness the offloading from trucks into TAZARA warehouse. TRA officers were not managing the warehouse and loading of cargo into luggage vans/wagons. Transportation charge was based on the actual weight the importer had," the committee stated.

The committee stated that now importers who hired wagons/vans had ended up incurring storage charges as they waited for other importers to consolidate goods in order to share the cost of hire.

The committee stated that it was therefore felt by the Zambian community that the TRA had not fulfilled its mandate of trade facilitation.

They stated that the new measures had resulted in sharp increase in the cost of transportation and other costs such as storage charges.

The committee stated that TRA had not seconded its staff to TAZARA bonded warehouse as per agreement, and that this was supposed to have been implemented by June 2009.

The committee stated that with the high unemployment and high cost of living in the country, citizens had diverted to conducting small businesses in the name of cross border trading in order to sustain themselves and their families.

"It is felt that the current system if continued will push a number of these small traders onto the streets. We therefore, appeal through your good office to request TRA immediately second officers to TAZARA bonded warehouse so as to re-introduce the old system of moving goods in containerized trucks from the port to TAZARA terminal (Bonded warehouse)," stated the committee.

The letter has also been copied to Zambia's communications and transport permanent secretary, Tanzania's ministry of infrastructure permanent secretary, TAZARA managing director, TRA commissioner, Tanzanian High Commissioner to Zambia and the regional generals managers for TAZARA.