How to Import from China to Tanzania

How to Import from China to Tanzania

Importing goods from China to Tanzania has become an increasingly popular business practice due to China’s status as a global manufacturing powerhouse and Tanzania’s strategic location in East Africa. Importing from China allows Tanzanian businesses to access a wide range of affordable products, from electronics to textiles, machinery, and raw materials. However, navigating the import process can be complex, involving various legal and logistical steps.

1. Research and Select Products for Import

Before diving into the process of importing goods from China, it’s crucial to conduct thorough market research. Knowing the demand for specific products in Tanzania, as well as understanding market trends and competitors, is key to ensuring profitability.

How to Import from China to Tanzania

Identifying Market Demands

The Tanzanian market has a growing appetite for various goods, including electronics, clothing, machinery, automotive parts, construction materials, and furniture. To identify the right products for import, consider the following steps:

  • Survey local markets: Visit local trade shows, online marketplaces, and retail shops to see what products are in demand.
  • Check government regulations: Some products may have import restrictions or require special permits (e.g., food products, pharmaceuticals, chemicals).
  • Evaluate pricing: Importing goods from China can offer substantial cost savings, but compare wholesale prices from Chinese manufacturers with local market prices.

Finding Reliable Suppliers in China

Once you’ve determined the product you want to import, the next step is finding a reliable supplier in China. There are numerous online platforms where suppliers can be found, including:

  • Alibaba: One of the most popular platforms for connecting buyers with Chinese suppliers.
  • Made-in-China.com: Another reputable online marketplace for sourcing a wide range of goods from Chinese manufacturers.
  • Global Sources: A platform similar to Alibaba, but often used by businesses looking for higher-end or specialized products.

When selecting a supplier, consider their:

  • Reputation and reviews: Look for feedback from other international customers.
  • Product quality: Request samples before placing large orders.
  • Payment terms: Ensure that the supplier offers secure payment methods and reasonable terms.

2. Understand Tanzania’s Import Regulations

Before importing goods from China to Tanzania, you need to be aware of the country’s regulations regarding imports, which are set by the Tanzania Revenue Authority (TRA) and the Tanzania Bureau of Standards (TBS).

Import Restrictions and Requirements

Certain items may be prohibited or require specific approvals before they can be imported into Tanzania. These items include but are not limited to:

  • Agricultural products: Some fruits, vegetables, and seeds are restricted to prevent the introduction of pests and diseases.
  • Pharmaceutical products: Medicines, medical devices, and health-related products must be registered with the relevant authorities, such as the Tanzania Medicines and Medical Devices Authority (TMDA).
  • Chemicals: Some chemical goods require clearance from the Tanzania Industrial Research and Development Organization (TIRDO).

It’s essential to consult the TRA and the TBS for specific guidelines and to ensure that your products comply with Tanzania’s import regulations.

Import Licenses

Most goods imported into Tanzania require an import license. Businesses must register with the TRA and obtain an importer’s registration certificate (IRC). This process is relatively straightforward and involves submitting basic business details to the TRA for approval. It is also necessary to register with the TBS if you are importing regulated products, such as food or chemicals.

Customs Valuation

Customs valuation is the process of determining the value of imported goods for the purpose of calculating import duties and taxes. In Tanzania, the customs value is typically based on the CIF (Cost, Insurance, and Freight) value, which includes the cost of the goods, shipping charges, and insurance fees. This valuation helps to determine the amount of tax and duty to be paid upon entry into the country.

3. Import Tax and Duties in Tanzania

Tanzania imposes various taxes and duties on imported goods. These taxes are levied by the TRA and vary depending on the type of product being imported. Understanding the different types of taxes is critical for budgeting the total cost of importing from China.

Value Added Tax (VAT)

One of the primary taxes applied to imports in Tanzania is the Value Added Tax (VAT). According to Peafah, the VAT rate on most imported goods is 18%, which is calculated based on the customs value of the goods (CIF value). Businesses should be prepared to pay VAT on top of the import duties.

Key Points:

  • The standard VAT rate is 18%, but some goods may be exempt or subject to reduced rates.
  • VAT is payable at the time of import clearance, and businesses can claim back VAT on sales once they are VAT-registered.

Import Duty

Import duty is another tax applied to goods entering Tanzania. The import duty rate depends on the classification of the product. Tanzania uses the East African Community (EAC) Common External Tariff (CET), which determines duty rates on different categories of goods. For instance:

  • Electronics and machinery: Typically attract a 10% duty rate.
  • Clothing and textiles: These products may be subject to a 25% duty rate.
  • Food products: Certain food items may have lower duty rates, but some are still subject to tariffs ranging from 10% to 20%.

Import duties are generally calculated on the CIF value, including both the goods’ cost and the shipping and insurance costs.

Other Taxes and Fees

In addition to VAT and import duty, several other taxes and fees may apply, depending on the type of goods being imported:

  • Excise Duty: This tax applies to specific products like alcoholic beverages, tobacco, and petroleum products.
  • Customs Clearance Fees: These are administrative fees charged by the customs authorities for processing the import documentation.
  • Port and Handling Charges: These charges are levied by the port authorities for handling and storage of goods at Tanzanian ports.

It is essential to be aware of all these fees and taxes to accurately calculate the total cost of importing goods.

4. Shipping and Logistics

Shipping goods from China to Tanzania involves several logistical steps, from selecting the right shipping method to ensuring timely customs clearance. Businesses need to plan their shipments carefully to avoid delays and extra costs.

Shipping Methods

There are two primary methods of shipping goods from China to Tanzania:

  • Sea Freight: The most common and cost-effective method for bulk shipments. Goods are typically shipped in containers and transported via the port of Dar es Salaam, Tanzania’s main port. Sea freight is ideal for large shipments but takes longer, typically ranging from 30 to 60 days, depending on the origin and port handling.Advantages of Sea Freight:
    • More economical for large shipments
    • Suitable for bulky goods

    Disadvantages of Sea Freight:

    • Slower delivery times
    • Higher risk of damage if goods are not properly packaged
  • Air Freight: Air freight is faster but more expensive compared to sea freight. This option is suitable for high-value, urgent, or smaller shipments. It takes approximately 5 to 10 days for goods to reach Tanzania via air freight.Advantages of Air Freight:
    • Faster delivery times
    • Suitable for high-value or time-sensitive goods

    Disadvantages of Air Freight:

    • Higher shipping costs
    • Limited capacity for bulky or heavy items

Freight Forwarders and Customs Brokers

When importing from China to Tanzania, it’s advisable to use freight forwarders and customs brokers. These professionals specialize in handling the logistical and documentation aspects of imports, ensuring that goods are shipped efficiently and meet all legal requirements.

  • Freight Forwarders: Freight forwarders organize the transportation of goods from China to Tanzania, handling the shipping process, including booking cargo, negotiating rates, and arranging for inland transportation.
  • Customs Brokers: Customs brokers are professionals who help with the customs clearance process. They assist with filing the necessary import documents, paying import taxes, and ensuring compliance with Tanzania’s import regulations. Their services are essential for avoiding delays and fines.

Packaging and Labeling Requirements

Proper packaging and labeling are essential for a smooth shipping process. Goods must be adequately packaged to withstand the shipping process, particularly for long sea freight journeys. Additionally, labeling requirements must adhere to Tanzanian standards, which may include:

  • Product origin labeling
  • Quantity and weight
  • Importer’s contact information

For certain regulated products, like food and pharmaceuticals, additional labeling requirements may apply. Businesses should confirm these requirements with the TRA and the TBS.

Insurance

Insurance is highly recommended when importing goods, especially via sea freight, where there is a higher risk of damage or loss. Shipping insurance can cover the cost of goods in case of accidents, theft, or natural disasters during transit. Many shipping companies offer insurance as part of their services, but businesses can also choose to purchase additional coverage based on their needs.

5. Customs Clearance

Once your goods arrive in Tanzania, they must undergo customs clearance before they can be delivered to your business or warehouse. The customs clearance process involves several steps, including:

  1. Document Submission: You must submit all required documentation, including the bill of lading, commercial invoice, and packing list, to the TRA.
  2. Customs Inspection: The customs authorities will inspect the goods to ensure compliance with Tanzanian regulations.
  3. Payment of Taxes and Duties: The relevant import taxes (VAT, import duties, etc.) must be paid before the goods are cleared for delivery.
  4. Release of Goods: Once the goods pass inspection and taxes are paid, they are released for delivery to your designated address.

The customs clearance process can take anywhere from a few days to a week, depending on the efficiency of the paperwork and the inspection process. It’s important to work with a customs broker to navigate the complexities of clearance and avoid any delays.

6. Distribution and Delivery

After your goods have cleared customs, the next step is distribution and delivery. Depending on your business needs, you can either store the goods in a warehouse or deliver them directly to customers. Tanzanian businesses often use local transport companies or distributors to handle the movement of goods across the country.

Warehousing

If you plan on importing large volumes of goods, you may consider using warehousing services in Tanzania. Warehouses allow businesses to store goods safely until they are ready to be sold or distributed. This option is particularly useful for businesses that import on a regular basis and need a place to store goods before distribution.

Delivery to Customers

If you are operating an e-commerce business or selling products directly to consumers, you will need a reliable delivery network to ensure that products reach customers in a timely manner. In Tanzania, businesses often work with courier companies, such as DHL, Tanzania Postal Corporation, or local delivery services, to ensure fast and reliable deliveries.

By understanding the import procedures, taxes, shipping logistics, and distribution channels, Tanzanian businesses can effectively import goods from China and access a wide array of products at competitive prices. With the right planning, you can take advantage of the growing trade relations between China and Tanzania, and build a successful import business.

Tagged with: ,