EXPORT PROCEDURES
A business acquires its legal existence through official registration by the appointed registration authority. Registration of the business, subject to fulfilling other requirements, gives it the right and power to conduct business transactions. The business registration authority in Tanzania is the Business Registration and Licensing Agency (BRELA), a semi-autonomous government executive agency under the Ministry of Industry and Trade. It was established by the Government Executive Agency Act, No.30 of 1997.

A business can be registered in two main ways:
(i) As a Company under the Companies Ordinance Chapter 212 of the Laws of Tanzania; or
(ii) As a Business Name under the Business Names Registration Ordinance Chapter 213 of the Laws of Tanzania.

A business can be registered as a private company, a public company or a foreign company. The nature and general requirements of these forms of company registration are as follows:
Private company:
Requires a minimum of two (2) members (shareholders) and a maximum of fifty (50) members. The shares are not freely transferable. They cannot be freely sold or transferred by one person to another. They therefore cannot be listed on a stock exchange for the purpose of having the shares traded in. To do so they must be registered as public companies.
Public company:
The minimum number of members of a public company is seven (7) members but there is no maximum limitation. A public company publishes a prospectus inviting the general public to subscribe and eventually buy its shares when they are allotted to them. Therefore being a public company does not mean being state owned or controlled. It simply implies that any person is free to subscribe and buy shares in the company. Buying shares in a public company makes the buyer part owner of the company and entitles him/her to vote at the company's General meetings and to share in the profits of the business of the company.
Foreign company:
This refers to a company incorporated outside Tanzania and which seeks to operate in the country as a branch of a foreign company. Even if all the subscribers and/or shareholders are nationals of the United Republic of Tanzania the company is still regarded as a foreign company. Such companies are registered under Part XII of the Companies Ordinance Cap. 212.

To register a private or public company the applicants must:
(a) Submit a letter indicating the proposed name under which they wish the company to be registered.
(b) The registry then undertakes a clearance search to determine that the exact name or one closely similar to it is not already registered.
(c) If the applied name is not available the applicant is informed and advised to submit another name.
(d) If the name is available the applicant is advised so and proceeds to prepare the Memorandum and Articles of Association and submits the same to the Registrar.
(e) The Memorandum and Articles of Association is submitted together with dully filled Form No. 1 (declaration of compliance with all requirements relating to formation of a company), Form No. 14 (particulars of Directors) and Form No. 15 (notice of situation of the registered office specifying physical location rather than postal address).
(f) When all requirements are met the Registrar issues a Certificate of Incorporation which shows, among other things, the registered name of the company, its registration number and the date of registration.
For a foreign company registration procedure involves submission of the following to the Registrar:
Certified copies of the company's Memorandum and Articles of Association.
- Notice of situation of the registered office in the country of domicile, i.e. the country of incorporation.
- List of Directors of the company.
- Persons resident in Tanzania who are the representatives of the company.

Upon being satisfied with the company's application the Registrar issues a Certificate of Compliance to the applicant.

Payable Fees:
There are three types of payments in respect of company registration:
(a) Registration fees: registration fees is incremental depending on the nominal share capital of the company being registered, andthe rates in Tanzania Shillings are as follows:
- Not more than TShs.20,000 2,400
- More than Tshs.20,000 but not more than TShs.100,000 4,800
- More than TShs.100,000 but not more than TShs.500,000 7,200
- More than TShs.500,000 but not more than TShs.1,000,000 9,600
- More than TShs.1,000,000 but not more than TShs.2,000,000 12,000 - More than TShs.2,000,000 but not more than TShs.3,000,000 14,400
- More than TShs.3,000,000 but not more than TShs.5,000,000 18,000
- More than TShs.5,000,000 but not more than TShs.10,000,000 24,000
- More than TShs.10,000,000 120,000

Registration fees for a foreign company is USD 500.
(b) Filing fees:
Total registration fees for private and public companies is TShs.9,600, being TShs.2,400 for each submitted document - Memorandum and Articles of Association and Forms No.1, 14 and 15. For a foreign company a filing fee of USD 300 is payable.
(c) Stamp duty: TShs.2,400 is payable for the original copy of the Memorandum and Articles of Association and additionally TShs.1,200 is payable for each extra copy of the Memorandum and Articles. Form No.1 also attracts stamp duty at TShs.1,200.
Every business, export and import businesses included, is required to obtain a valid trading/business license from the local government authority where the business in conducted. The license is valid for one year, running from 1st July to 30th June of the following year. The license expires on 30th June irrespective of when it was acquired during the twelve-month period.

Briefly the procedure for obtaining a business license is as follows:
• For a new license, an application form is obtained from the local government office upon payment of a fee. In Dares Salaam the current fee is TShs.5,000 per form.
• After filling the application form, it is endorsed by land and health officers from the local government authority after inspecting the premises for compliance with planning and health regulations.
• The application form is tabled before a licensing Committee of the local government authority which authorises issuance of a business license.
• The applicant must obtain a Tax Clearance Certificate from the area office of the Income Tax Department of Tanzania Revenue Authority before the business license is issued. The tax clearance provides evidence that the applicant's tax affairs are in order. For a new business the Tax Clearance Certificate is issued without demand for payment of provisional income tax. Provisional tax is payable after three months of commencement of business.
• A business license is issued after making payment to the local government authority in respect of license fee and provisional services levy. The amount of the business license fee depends on the type and size of the business.
• For renewal of existing license, an application form is filled as usual but inspection of the premises by land officers is not necessary. However, the application form must be endorsed by health officers after inspecting the business premises as for new businesses.
• A Tax Clearance Certificate is obtained after paying provisional income tax (and tax arrears plus penalty, if any).
• A business license is issued after payment of fees and provisional services levy to the local government authority.
• A penalty of 25% of the business license fee is imposed if one is caught doing business without a valid business license.

General export/import licensing requirements which were common before trade liberalisation have been abolished. However, some products still require specific licenses/permits from government departments, statutory agencies or controlling bodies legally empowered to do so. Therefore, before venturing into the export/import business it is advisable to seek advice from trade support institutions, banks, government departments or international trade professionals to establish if there are any licenses/permits required for the goods you wish to export or import. For example, licenses/permits for the following products are obtainable from the following bodies:
. - Forestry Products: Ministry of Natural Resources and Tourism (Forestry Department).
. - Fisheries Products: Ministry of Natural Resources and Tourism (Fisheries Department).
- Wildlife Products: Ministry of Natural Resources and Tourism (Wildlife Department).
- Minerals/Gemstone Products: Ministry of Minerals and Energy (Mining Department).
- Food Products: Ministry of Agriculture and Food Security.
- Traditional Export Crops (coffee, tobacco, cotton, raw tea, raw pyrethrum, etc.): Crop Marketing Boards.
- Firearms and Explosives: Ministry of Internal Affairs.
Note that apart from government departments and marketing boards, there are other bodies with statutory powers to certify, inspect or issue permits for specific sectors or products. For example:
- The Pharmacy Board: importers of pharmaceuticals are required to apply for and obtain a Certificate of Official Approval to Import Pharmaceuticals from the Board before embarking on importation.
- The National Food Control Commission: importers of processed foods are required to apply for Registration and Import Permits from the Commission before importation of such foods. The Commission’s regulatory role is focused on safeguarding human health.
- Produce Inspection and Phytosanitary Section (Plant Protection Department, Ministry of Agriculture and Food Security): importers of plant products, e.g. cereals, seeds and other perishables, are required to apply and obtain permits from the Section. Likewise, exporters of plant products have to apply and obtain Phytosanitary Certificates from the S ection, after the products have been inspected and fumigated against pests and diseases. The Section supervises the fumigation processes.
- Tanzania Bureau of Standards: enforces compliance with national and international standards in respect of imports and exports. It operates a Batch Certification Scheme for all imports covered by compulsory standards which is designed to combat dumping of substandard products in the Tanzania market.

Exporting starts with the exporter receiving a Purchase Order from a buyer abroad. Once an agreement has been reached to export the goods to the buyer and the mode of shipment has been determined and agreed the following stages and procedures are followed:

SHIPMENT BY AIR
(a) The Exporter/Forwarding Agent obtains an export license/permit/certifications from relevant authorities (if they are required).
(b) The Exporter/Agent proceeds to book cargo space with a carrier (Airline) or its Agent. On confirmation of cargo space and payment of requisite charges and fees, an Airway Bill is prepared for the cargo. This is done on presentation of the following:
- A Commercial Invoice (raised by the Exporter)
- An Export License/Permit (if applicable)
- Technical Certification (if applicable), for example, health, quality, weight, certificate of origin, etc.
(c) The Exporter/Agent purchases and lodges a dully filled set of Single Bill of Entry (SBE) at TRA Customs Long Room together with the Commercial Invoice, Packing List, Cargo Space Confirmation (Airway Bill), Export Permits (if applicable) and Technical Certifications. No duties or taxes are payable on most categories of exports.
(d) The Exporter transports the goods to the relevant airport and hands them to the Carrier ready for loading on the plane and flight to the appropriate overseas destination.

SHIPMENT BY SEA
(a) The Exporter/Agent obtains an Export License/Permit from the relevant authorities (if applicable).
(b) The Exporter/Agent applies for Technical Certification from the relevant regulatory authorities (if applicable).
(c) The Exporter/Agent approaches a Ship Owner (Shipping Line) or a Shipping Agent to book cargo space on a ship and obtain a Shipping Order.
(d) The Exporter/Agent purchases and lodges a duly filled Single Bill of Entry at TRA Customs Long Room together with a Commercial Invoice (raised by the Exporter), Packing List, Shipping Order, Technical Certifications and Export License/Permit (if applicable).
(e) The Shipping Order (issued in five copies) with a ‘STOP’ note endorsement from Customs, together with all the above mentioned attachments, are sent to Customs Wharf for reconciliation and then forwarded under dispatch to Tanzania Harbours Authority - Revenue Accountant’s Office.
(f) THA Revenue Accountant’s Office assesses and raises a THA invoice specifying various charges the Exporter is required to pay to THA for their services.
(g) After payment, 4 copies of the Shipping Order are sent to THA Export Office for verification and preparation of Export Acceptance and Shipment (EA&S) forms.
(h) With EA&S the Exporter/Agent requests permission of Operations Manager to receive and secure export cargo in the Port. Export cargo is received in the port against Delivery Notes.
(i) The endorsed “Stopped” Shipping Order together with duplicate copy of EA&S forms are dispatched to Customs Wharf for verification of cargo and release.
(j) The Shipping Order is dispatched back to THA Export Office where it is attached to the original EA&S form and endorsed with a ‘RELEASED’ note retaining the duplicate copy of the Shipping Order.
(k) The first, second and third copies of the Shipping Order, with 2 copies of the EA&S forms, are forwarded to the Loading Point where cargo is loaded aboard the vessel against EA&S forms.
(l) The Berth Records Clerk presents the Shipping Order and relevant EA&S form to the Chief Officer of the vessel who signs and stamps the documents, retaining the original copy of the Shipping Order.
(m) The third and fourth copies of the Shipping Order together with the 2 copies of EA&S forms are sent back to THA Export Office.
(n) The Exporter/Agent finally submits a Certified Shipping Order to the Shipping Agent and obtains a Bill of Lading.