COSTING IN CLEARING AND FORWARDING
CUSTOMS
Customs are duties and taxes which are levied by a central government on
imports of goods into and export of goods from Tanzania
It is collected from the importer or exporter of goods but its burden is born
by consumers of goods not by the importer or exporter who pays it.
TYPES OF DUTIES AND TAXES ADMINISTED BY CUSTOMS AND EXCISE
DEPARTMENT.
1. Import duty
This is the duty imposed on the customs value, usually CIF value of the
goods imported.
The following rates are applicable
0%- for capital goods e.g. machinery
10%- Semi finished goods (intermediary goods) e.g. spare parts.
25% - for finished goods
2. Excise duty on imports
This is imposed on few selected items each at own rate e.g. beer, soft drinks,
cigarettes, saloon and station wagon cars, plastic bags, wine, petroleum
products, e.t.c.
3. VAT on imports
VAT is imposed on all imports except those exempted by the VAT Act.
Currently 18%
1
, 4. Railway and development levy
This is imposed on all imports for the purpose of promoting railway transport.
It is imposed at 1.5% of the CIF value
5. Fuel levy
This is levied on importation of petroleum products
6. Customs processing free
This is the fee imposed for all items imported at 0.6% of FOB price.
COMPUTATION OF CUSTOMS DUTIES
Custom duties are taxed either at ad- valorem e.g taxes charged based on
the value or on specific basis e.g. based on a physical measurement .i.e
height, volume.
Customs duties are calculated by using the following procedures
(a) Calculate import duty,
In order to obtain import duty, take the customs value (usually CIF value)
multiply it by import duty rate.
Hence: Import duty =Customs / CIF value x import duty rate.
Note: CIF means Cost, Insurance and Freight
CIF is obtained as follows.
FOB price/ cost of the goods xx
Freights xx
C&F xx
Insurance xx
CIF XX
(b) Calculate excise duty,
2
CUSTOMS
Customs are duties and taxes which are levied by a central government on
imports of goods into and export of goods from Tanzania
It is collected from the importer or exporter of goods but its burden is born
by consumers of goods not by the importer or exporter who pays it.
TYPES OF DUTIES AND TAXES ADMINISTED BY CUSTOMS AND EXCISE
DEPARTMENT.
1. Import duty
This is the duty imposed on the customs value, usually CIF value of the
goods imported.
The following rates are applicable
0%- for capital goods e.g. machinery
10%- Semi finished goods (intermediary goods) e.g. spare parts.
25% - for finished goods
2. Excise duty on imports
This is imposed on few selected items each at own rate e.g. beer, soft drinks,
cigarettes, saloon and station wagon cars, plastic bags, wine, petroleum
products, e.t.c.
3. VAT on imports
VAT is imposed on all imports except those exempted by the VAT Act.
Currently 18%
1
, 4. Railway and development levy
This is imposed on all imports for the purpose of promoting railway transport.
It is imposed at 1.5% of the CIF value
5. Fuel levy
This is levied on importation of petroleum products
6. Customs processing free
This is the fee imposed for all items imported at 0.6% of FOB price.
COMPUTATION OF CUSTOMS DUTIES
Custom duties are taxed either at ad- valorem e.g taxes charged based on
the value or on specific basis e.g. based on a physical measurement .i.e
height, volume.
Customs duties are calculated by using the following procedures
(a) Calculate import duty,
In order to obtain import duty, take the customs value (usually CIF value)
multiply it by import duty rate.
Hence: Import duty =Customs / CIF value x import duty rate.
Note: CIF means Cost, Insurance and Freight
CIF is obtained as follows.
FOB price/ cost of the goods xx
Freights xx
C&F xx
Insurance xx
CIF XX
(b) Calculate excise duty,
2
