customs mordernazation for trade facilitation …...(mba 2017, bsc economic 2006) tanzania revenue...

TANZANIA REVENUE AUTHORITY TRA

.

CUSTOMS MORDERNAZATION FOR TRADE FACILITATION ESA-MEMBER: CASE STUDY

TANZANIA CUSTOMS ADIMISTRATION

PresenterGeorge.G.Msuya

SeniorCustomsOfficer(MBA2017,BscEconomic2006)TANZANIAREVENUEAUTHORITY

11October,2018


Causes of Customs Modernization n  Increase of Global Business n  Meet WCO Standard Major Tax Reform for Trade Facilitation n  1989 the committee under Presidential

Commission on Taxation and Expenditure n  1992 the Parliament amend Customs

Tariff Structure n  1996 the Government establish semi-

autonomy authority (TRA) 13WCO Picard 11 Oct 2018

2


Global customs Modernization Procedures

n  The Authority work in hand with global customs modernization procedures of WCO i.e RKC

n  Revenue collection has increased from Tsh 25 Billion 1997 to Tsh 450 Billion 2017

n 

13WCO Picard 11 Oct 2018

3


13 WCO Picard, 11 oct0ber

4

Customs Collection

-

100

200

300

400

500

600

Monthly Average (Bilions)


Area of E-Commerce & ICT n  ASYCUDA was introduced in 2005 by UNCTAD Outcome of introduction of ASYCUDA n  The trade delays and Customs clearance was

reduced à  The average time taken from lodgment to release goods across

airports has decrease from 4 days to 9 hrs and 7 days to 2 days across sea ports in Tanzania

ASYCUDA brought need to Electronic Payment §  Payment of Customs duties were done by

cash


5


Area of E-Commerce & ICT n  The government introduce Tanzania-Inter

Bank System Scheme (TISS) supported by ASY- Bank

Outcomes of Electronically Payment n  Importer can transfer money from his

account to authority account n  Unnecessary queues and corruption end n  Importer protected from danger of being

attacked


6


Area of E-Commerce & ICT

Automated system for Electronic submission n  ASY-SCAN submit Customs Documents n  It help to accelerate clearance time In 2014, shifted from ASYCUDA to TANCIS n  TANCIS manage to integrate all Customs

procedures in one dialog with agents n  Importer can assess Customs Duties and

submit to Customs which give room to graduate to WCO scheme of AEO


7


Risk Management Develop Computerized system for Risk n  Risk Management Unit assess Risk of an

Entry by enter business profile in the system n  System assign RED-LIGHT to a questionable

Importer and GREEN-LIGHT to the complying trader

Investment on Non-intrusive instrument n  Containers should pass through high

radiation scanner for detection 13WCO Picard 11 Oct 2018

8


Risk Management

n  Identified irregularities at scanner lead to physical inspection

Develop Electronic Cargo Tracking System n  Transit goods monitored by Transit Unit by

tracking goods up to exit border points n  Transit check point became useless ,

transit goods only inspected at OSBP à  Time for Transit cargo movement reduced from 7 days to 3 days

from port of Dar es salaam to all exit borders


9


Transit Route

Wednesday 27 February 19

10


Post Clearance Audit n  Department was formed in 2002 in view of

advancing the release in order to facilitate trade

n  The auditing is conducted based on risk analysis of the trader and item

n  Non- compliance is detected by misclassification and under valuation

n  False declaration led to additional payment of duties & taxes together with penalties.


11


Post Clearance Audit Tax identified

12

Years Tax Identified (Billions)

2009/10 10.7

2010/11 12.6

2011/12 15.8

2012/13 20.7

2013/14 31.9

2014/15 22

2015/16 17 0

5

10

15

20

25

30

35

2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16

Tax Identified (Billions)


Integrity for Trade Facilitation Develop an Internal Affair Department in 1999

n  duties involve traditional audit work which grounded on staff regulation

n  Department is performing investigation and valuation on Negligence of staffs and involvement in corruption practices

n  2017 to 2018,the department handle 111 Cases 53 restated, 4 termination and 54 investigation still on


13


Recommendation and Conclusion n  Research find out efforts in modernization is

apparent ,Traders are facilitated and revenue collection has increased

n  But importers are willing not to comply still they fabricated invoices and misclassification

n  2011, 53 traders were registered as AEO the number reduced up to only 2 who are recognized as AEO based on customs criteria

n  ISCM of WCO can be one of the solution to avoid undervaluation and misclassification


14


Wednesday 27 February 19

15

Initial Export goodsDeclaration & UCR

Initial Declaration IM/EX & UCR, Crew and

PAX lists

Initial Export goodsDeclaration & UCR

C2C push or pull information exchange

Exporter orAgent

Exporter orAgent

CUSTOMSEX, Risk assessment,

Export controls intelligence CUSTOMS

Transit/Transhipment, Export controls

intelligence

CUSTOMSIM, Risk assessment,

Export controls intelligence

Other intelligence stores

Common risk profiles and

criteria

Other intelligence sources

Carrier or Agent

1

2 4

5

677

Claiming VAT refund

Pay Customs duties and

taxes

Online Interface to share dataOnline Interface to share data

3

Customs ISCM WCO guidelines


Thanks for your attention