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GN No.................................................................................. published on ................... ............................................................

THE SURFACE AND MARINE TRANSPORT REGULATORY

AUTHORITY ACT

(CAP. 413)

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THE SURFACE AND MARINE TRANSPORT REGULATORY AUTHORITY

(CLEARING AND FORWARDING AGENTS) DRAFT REGULATIONS, 2016

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(Made under section 39)

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ARRANGEMENT OF REGULATIONS

PART I

PRELIMINARY PROVISIONS

Regulation Title

1. Citation

2. Application

3. Interpretation

PART II

CONDITIONS OF CARRYING ON THE BUSINESS OF CLEARING AND

FORWARDING AGENCY

4. Conditions for carrying out the business

5. Specific Conditions

PART III

APPLICATION FOR REGISTRATION AND ISSUANCE OF CERTIFICATE

6. Application for Registration

7. Requirements for application of registration

8. Issuance of registration certificate

9. Renewal registration certificate

10. Registration certificate not transferable

PART IV

CODE OF ETHICS AND CONDUCT

11. Adherence to Code of Conduct

12. Prohibited conducts

13. No collusion

14. Inspections for ensuring compliance

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15. Notice of Ratification

16. Notice of suspension or revocation

17. Reasons for suspension or revocation

18. Lifting of suspension

19. Liability of licensee

PART VI

COMMUNICATION WITH CLIENTS

20. Communication with clients

21. Complaint against clearing and forwarding agent

22. Contact address

PART VII

OFFENCES AND PENALTIES

23. Offences

24. Power to Compound offences

25. Complaints handling

26. Appeals

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SCHEDULE

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THE SURFACE AND MARINE TRANSPORT REGULATORY

AUTHORITY ACT

(CAP. 413)

___________

REGULATIONS ___________

(Made under Section 39)

___________

THE SURFACE AND MARINE TRANSPORT REGULATORY

AUTHORITY (CLEARING AND FORWARDING AGENTS)

REGULATIONS, 2016

PART I

PRELIMINARY PROVISIONS

Citation 1. These Regulations may be cited as the Surface and Marine

Transport Regulatory Authority (Clearing and Forwarding Agents)

Regulations, 2016.

Application 2. These Regulations shall apply to all Clearing and forwarding

agents.

Interpretation 3. In these Regulations, unless the context otherwise requires- Cap. 413

“Act” means the Surface and Marine Transport Regulatory Authority Act;

“approved tariff” means the rates and charges approved by the Authority; “Authority” means the Authority established under section 4 of Surface

and Marine Transport Regulatory Authority Act;

EACCMA, 2004

Legal Notice

no,1/2005

“cargo”; "cargo" includes all goods imported or exported in any aircraft, vehicle or

vessel other than such goods as are required as stores for consumption or

use by or for the aircraft, vehicle or vessel, its crew and passengers, and

the bona fide personal baggage of such crew

“cartel” means a collective action or agreement by the clearing and

forwarding agents intended to prevent, restrict or distort competition; “clearing and forwarding agent” means a company registered by the

Authority to carry out clearing and forwarding services; “client” means a shipper or consignee as prescribed in transport

document;

“customs documents” means the documents used for cargo clearance

through customs point of entry or exit; Cap. 285 “fair competition” means a fair competition as prescribed under the Fair

Competition Act; Cap. 285 “Fair Competition Tribunal” means the Fair Competition Tribunal

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established under section 83 of the Fair Competition Act;

“shipping documents” means appropriate maritime transport documents

supporting clearance of cargo through Customs, ports and other

authorities and include a bill of lading, manifest, invoice, packing

list, delivery order or any other documents relevant for cargo

clearance in the shipping industry as may be specified by relevant

authorities; and “transport documents” include ocean bill of lading, house bill of lading,

through bill of lading, airway bill, rail waybill and consignment note.

PART II

CONDITIONS OF CARRYING OUT THE BUSINESS OF CLEARING

AND FORWARDING AGENT

Conditions for

carrying out the

business.

4. (1) A person shall not carry out the business of Clearing and

Forwarding Agent unless he is registered by the Authority

(2) Every clearing and forwarding agent shall: (a) maintain professionalism in delivering clearing and

forwarding services; (b) act honestly and transparently when dealing with clients; (c) treat clients with dignity, respect and courtesy; (d) accord facilitation of cargo taking into consideration the

international obligation of Tanzania as coastal State; (e) display in a conspicuous place the approved tariff by the

Authority; (f) be available to carry out operations twenty four hours daily

for seven days of a week, including weekends and public

holidays; Cap. 285 (g) abide by principles of fair competition in the industry in

accordance with the Fair Competition Act; and (h) comply with port safety and security requirements; (i) operate an office registered with the Authority solely

dedicated for clearing and forwarding services measuring at

least 18 square meters; (j) possess communication facilities for operations such as fixed

telephone line, fax, email and internet connection.

(k) be licenced by Tanzania Revenue Authority

(l) be able to provide services electronically (3) A clearing and forwarding agent shall be deemed to maintain

professionalism in accordance with sub-regulation 2(a) if he observe: (a) requirements and obligations set by the Authority and other

government bodies in relation to the clearing and forwarding

operations; (b) lawful commercial and fiduciary responsibilities to;

(i) clients free of cheating or deceits;

(ii) intermediary parties in the course of business both on

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his own account and on behalf of clients free of

cheating or deceits; and (c) any directive given by the Authority.

Specific Conditions 5. (1) Subject to regulation 4, a clearing and forwarding agent shall: (a) employ staff who posseses the East African Customs Clearing

and Freight Forwarding Practicing Certificate;; (b) maintain books of accounts and abide by financial and

operational standards stipulated by relevant authorities; (c) handle all the clients’ documents and cargo properly; (d) avoid using unauthorized person in dealing with clients’

shipments; (e) ensure that staff’s knowledge and skills are improved and

updated in their relevant field; (f) indicate in the invoice to his client, the name and full contact

of the actual beneficiary or attach the original invoice for

outsourced services; (g) prepare and distribute applicable tariff to his customers;

(h) report any act of unfair competition, misconduct or illegality

done by another person in connection with clearing and

forwarding services; (i) lodge clearance documents, pay dues, clear and deliver cargo

in a timely and efficient manner in order to ensure efficient

services; (j) maintain performance efficiency level that conforms to

performance indicators and benchmarks set out by the

Authority as from time to time;

(k) enter into a business contract with his client to inform him on

terms and conditions of services to be rendered in accordance

with these Regulations

(l) not overcharge clients for the services rendered

(m) not misappropriate or misuse clients funds; and (n) ensure its employees wear neat and clean uniform and put on

identity card at all times.

(o) submit to the Authority accurate information or data with

regard to volume of cargo handled.

(2) clearing and forwarding agent should avoid to engage in services that

will have conflict of interest………..

(3) Subject to provisions of sub regulation (1) to this regulation, the

Authority shall have power to verify information submitted by the

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Clearing and Forwarding Agent in any manner deemed appropriate.

PART III

APPLICATION FOR REGISTRATION AND ISSUANCE OF

CERTIFICATE Application for

registration 6 (1) A person intending to conduct a business as a clearing and

forwarding agent shall apply for registration with the Authority in the prescribed form set out in the First Schedule to these Regulations.

(2) The Authority shall prior to the issuance of Certificate of Registration

of clearing and forwarding agent abide by procedures for registering a

clearing and forwarding agent set out in the Second Schedule to these

Regulations. Requirements for

application of

registration

7 -(1) An application for registration shall be accompanied with:

(a) a certified copy of the certificate of incorporation or certificate

of compliance as the case may be; (b) a Memorandum and Articles of Association; (c) a certified copy of a valid business licence;

Cap. 427 (d)

Cap. …… (e)

(f) a certified copy of lease agreement or proof of ownership where

the clearing and forwarding agent office is located; (g) proof of ICT applications by the clearing and forwarding agent.

(h) Proof of third party insurance policy

(i) submit a customer care handling procedures including customers

inquiries and complaints review;

(i) Tax Clearance Certificate issued by Tanzania Revenue Authority

(2) The application form to be submitted to the Authority shall be

accompanied with an application and registration fees set out in the Third

Schedule to these Regulations. Issuance of

registration

certificate

8 The Authority shall issue to the clearing and forwarding agent

with certificate of registration upon:

(a) being satisfied with fulfilment of the requirements for application

of registration under these Regulations; and

(b) Payment of application and registration fees prescribed in the Third

Schedule to these Regulations.

Renewal of

registration

certificate

9. –(1) A registration certificate issued under sub-regulation (1) shall be

renewable annually upon the Authority being satisfied with the

compliance of the conditions of registration and observance of registration

procedures.

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(2) An application for renewal of registration certificate shall be made in

the prescribed form set out in the First Schedule to these Regulations. Registration

certificate not

transferable

10. The certificate for registration issued under these Regulations shall not

be transferable without prior approval of the Authority.

PART IV

CODE OF ETHICS AND CONDUCTS

Adherence to code of

conducts 11. (1) Every Clearing and Forwarding shall adhere to Code of Conducts

for provision of Clearing and Forwarding business. (2) Non-adherence to Code of Conduct shall be an offence under these

regulations.

Prohibited conducts

12. A clearing and forwarding agent shall: (a) refrain from i. fraudulent and corrupt practices; ii. any involvement in cartel or collution; iii. illegal dealings; (b) not claim or introduce unapproved or unauthentic expenses to

customers and business partners; (c) be transparent in the retained deposits or other monies

belonging to the client; (d) be guided by honest and fair dealing (e) act with due deligence and impartiality (f) ensure safety and quality of services are maintained (g) not act to the detriment of the clearing and forwarding services;

and (h) not retain equipment from other service providers without

reasonable cause and advance information; 13. a clearing and forwarding agent shall not collude with any party with

an intention to contravene the provisions of these regulations. PART V

SUSPENSION OR REVOCATION OF REGISTRATION

Inspections for

ensuring compliance 14.–(1) The Authority shall conduct inspections to a clearing and

forwarding agent to monitor compliance with the registration conditions

with or without prior notice.

(2) The Authority may, when conducting inspection, require a licensee to

produce information, records, statements or documents relating to

clearing and forwarding agency.

Notice of

rectification

15.-(1) Where, during inspection, the Authority discovers non-compliance

with the registration conditions or other provisions of these Regulations,

the Authority may issue a fourteen days’ written notice requiring the

clearing and forwarding agent to rectify the anomaly within the time

specified in the notice.

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(2) Where a clearing and forwarding agent fails to rectify the anomaly

prescribed in the notice, the Authority may issue another seven days’

written notice to the clearing and forwarding agent to show cause as to

why the registration should not be suspended or revoked.

(3) The rectification notices referred to in sub-regulation (1) and (2),

shall be copied to the Commissioner for Customs and Excise, Dry port

operators and port terminal operators. Notice of suspension

or revocation 16.-(1) Where the Authority intends to suspend or revoke registration, the

Authority shall issue a twenty-one days written notice of suspension or

revocation.

(2) The notice of suspension or revocation of registration shall be

considered to have been dully served to the clearing and forwarding agent

where it is:

(a) served upon the clearing and forwarding agent or his authorized

representative;

(b) legibly and conspicuously affixed at the registered premises of

business of the clearing and forwarding agent; or

(c) e-mailed to a registered e-mail address of the clearing and

forwarding agent.

(3) Where the Authority is not satisfied with reasons under sub-regulation

15(3), the Authority may suspend or revoke the registration certificate of

the clearing and forwarding agent for such period as the Authority deems

appropriate. Reasons for

suspension or

revocation

17. The Authority shall state reasons for suspension or revocation of a

registration certificate.

Lifting of suspension 18. – (1) A notice of suspension shall specify the period of suspension

and the subject matter upon which its fulfilment shall lead to uplifting of

the suspension.

(2) The Authority shall uplift the suspension after expiration of the

specified suspension period where the clearing and forwarding agent

fulfils the requirements stipulated in the suspension notice. (3) where suspension period expires without fulfilment of the suspension

conditions the Authority may revoke the registration. Liability of licensee 19. An act of violation to these Regulations made by an employee of

the clearing and forwarding agent shall be deemed to be an act of the

clearing and forwarding agent.

PART V

COMMUNICATION WITH CLIENTS

Communication with

clients 20. – (1) After signing the business contract a clearing and forwarding

agent shall within forty eight hours communicate with a client on all

issues that relate to clearance of cargo.

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(2) Without prejudice to the generality of sub-regulation 1, a clearing and

forwarding agent shall communicate to a client on issues that relate to:

(a) any document required for cargo clearance;

(b) expected date of cargo arrival;

(c) status of cargo clearance and forwarding process;

(d) place of storage of the cargo;

(e) information on any reported damage or short landing,

misplacement or loss of cargo;

(f) amount of taxes and charges to be paid in accordance with

approved taxes and tariffs by the Authority;

(g) any expected delays in cargo clearance;

(h) required special procedures, handling equipment and storage

facility for the cargo to be cleared;

(i) expected time of delivery of the cargo;

(j) physical and contact details of the clearing and forwarding agent;

and

(k) all applicable conducts, practices, terms, conditions, prices and

pricing system in accordance with the relevant laws in the

regulated sector. Complaint against

clearing and

forwarding agent

21. A person who is dissatisfied with the services provided by the

clearing and forwarding agent may submit his complaints to the

Authority. Contact address 22. A clearing and forwarding agent shall: (a) provide the Authority with its contact and physical address and

information on shareholders and top management; and (b) notify the Authority of changes of its contact and physical address,

shareholders and top management not later than seven days from

the date of such changes. PART VII

OFFENCES AND PENALTIES

Offences 23. Any person who- (a) carries on the business of clearing and forwarding agency without

a valid registration certificate; (b) in relation to an application for registration, knowingly makes

false statement; (c) furnishes to the Authority any information or explanation which to

his knowledge are false or incorrect; (d) fails to produce a registration certificate upon being required to do

so;

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(e) hinders or obstructs an officer of the Authority, or any other

officer in the performance of their duties under the Act and these

Regulations; (f) contravene any provisions of these Regulations; or

(g) fails to comply with any conditions of registration,

commits an offence and shall, on conviction be liable, to a fine of not less

than three million Tanzanian shillings or to imprisonment for a term of

not less than one year or both. Power to Compound

offences 24.-(1) Notwithstanding the provisions of these Regulations relating to

penalty, where a person commits an offence under these Regulations, the

Authority may, at any time prior to the commencement of the hearing by

any court of any charge, compound such offence and order the person to

pay sum of money, not exceeding half of the amount of the fine to which

the person would otherwise have been liable if he had been convicted of

such offence,

Provided that the Authority shall not exercise its powers under this

Regulation unless the person concerned admits in writing to have

committed such offence. (2) Where the Authority compounds an offence, the order referred to in

sub- Regulations (1)- (a) shall be reduced into writing and there shall be attached to it the

written admission and request referred to in sub-regulation (1) and

a copy of such order shall be given, if he so requests, to the person

who committed the offence; (b) shall specify the offence committed, the sum of money ordered to

be paid and the date by which payment is to be settled; (c) shall be final; and (d) may be enforced in the same manner as a decree of a court for the

payment of the amount stated in the order.

PART VIII

COMPLAINTS AND APPEALS

Complaints handling

25. Where clearing and forwarding agents or consumers the service

relating to these Regulations are in dispute may, jointly or severally, refer

the matter to the Authority for resolution.

Appeals

G.N. No. 15 of 2008

26. Any person who is aggrieved by the decision of the Authority under

these Regulations may appeal in accordance with the SUMATRA

(Complaints and Review Procedure) Rules, 2008.

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FIRST SCHEDULE

________

_________

FIRST SCHEDULE

________

(Made under regulation 6 (1)).

THE UNITED REPUBLIC OF TANZANIA

APPLICATION FOR REGISTRATION AS A CLEARING AND

FORWARDING AGENT

_________________________________________ (Issued under section 6 (1) (c) of SUMATRA Act, 2001

1. Name of Applicant: ……………………………………………………………………….

2. Postal Address: …………………………………………………………………………....

Tel. No.: …………………………………………………………………………………..

Fax No.: …………………………………………………………………………………..

Email Address:……………………………………………………………………………

3. Number of Certificate of Incorporation

……………………………………………….......................................................................

.

Date of issue:

………………………………………………………………………………..

4. Physical registered place of business: Street:

……………………………………………….

Plot No: …………………. House/Building No: …………….

District:…………………..

Region: ……………………..

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5. Type of Registration: New Renewal

6. Previous Registration No. ………………………………… year ……………………..

7. Particulars of current shareholders

Name Nationality Address Percentage

8. Does the company or any of the shareholders or directors or management staff hold any

share or have a controlling interest or is engaged in shipping agency business? YES/NO.

……………………………………………………………………………………………...

.

If Yes, give

details…………………………………………………………………………..

……………………………………………………………………………………………

….

9. Any other business carried on by the company

…………………………………………....

……………………………………………………………………………………………..

.

10. Volume of Business handled or expected to be handled

Year Volume of Cargo handled

Volume of Cargo Expected to be

Handled

Metric Ton Containers Metric Ton Containers

11. Particulars of Current Management Staff:

FULL

NAME

DESIGNATION

/POSITION CITIZENSHIP AGE

QUALIFICATION YEARS OF

EXPERIEN

CE

DATE OF

APPOINTM

ENT TO

PRESENT

POSITION ACADEMIC PROFESSIONAL

1

2

13

3

4

5

I/We declare to the best of our knowledge and belief that all the statements contained in this application

are true and correct. We undertake to notify any changes in the shareholding and location of business

premises.

Name in full:……………………………………………………………………………….......

Position/Designation:

……………………………………………………………………….......

Signature: …………………………………. Date:

…………………………………………….

(Stamp or seal)

This application must be accompanied by copies of documents listed below

a copy of company Certificate of Incorporation

CVs of Management staff

Proof of ownership of office and yard premises

Charges/fees Tariff

C&F Customs License for the previous year

Business License

Tax Clearance Certificate

FOR OFFICIAL USE ONLY

Approval

Comments:

Start Date: ………………………… Expiry Date: ……………………. Registration Cert. No. ………….........

Name: …………………………….. Designation …………………......

Signature: …………………………. Date: …………………………….

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SECOND SCHEDULE

________

(Made under regulation 5 (k)

THE UNITED REPUBLIC OF TANZANIA

PROCEDURES FOR REGISTERING A CLEARING AND FORWARDING AGENT

1. Interpretations

“Authority” means the Authority established under section 4 of Surface and Marine

Transport Regulatory Authority Act;

“officer” means an employee of the Authority assigned to work and attend matters

related to regulation of clearing and forwarding business;

“physical inspection” means inspection by an officer that involves personal presence of

the officer at documented office premises of the applicant for clearing and

forwarding business undertaken to establish qualifications for registration or

continued registration;

“senior officer” means an employee of the Authority in the capacity of senior officer or

above in accordance with approved scheme of service of the Authority at the

time being;

“key performance indicator” means a unit of reference determined by the Authority to

gauge service level performance of a clearing and forwarding company;

“performance benchmark” means measures set out by the Authority to quantify service

level performance of a registered clearing and forwarding company;

2. The Procedures

a. An applicant for registration of a clearing and forwarding agent shall fill-in the

Prescribed Application Form electronically or on printed paper and submit the

dully filled-in Form to the Authority along with certified copies of prescribed

attachments and non-refundable application fee.

b. An officer shall sign and stamp on the submitted Form the date of receipt of the

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application and the date and Payment Receipt Number covering the application

fees.

c. .

d. An officer shall conduct physical inspection of office and facilities of a new

applicant for registration within seven working days from the date of receipt of the

application or notify the applicant an extension of time for inspection and reasons

for the extension.

e. The Authority may decide to conduct physical inspection of office and facilities of

applicant for renewal of registration upon pronouncing the need to carry out such

inspection.

f. An officer who ascertains the need to conduct physical inspection for renewal of

registration of a clearing and forwarding agent shall secure approval of senior

officer prior to conducting the inspection.

g. An officer conducting physical inspection of applicant’s facilities shall produce a

signed report of findings of the inspection which shall include a statement showing

whether the applicant’s facilities satisfy registration requirements or not. The

statement shall form part of attachments to the application form submitted by the

applicant.

h. An officer shall use findings of physical inspection and the submitted application

form as a basis for preparation and issuance of a Registration Certificate for new

Application.

i. An officer shall evaluate Key Performance Indicators (KPI) against set Performance

Benchmarks achieved by a clearing and forwarding agent for at least one past year

and produce a report which shall form part of attachments to the application for

renewal of registration.

j. An officer shall use findings of physical inspection, KPI reports and the submitted

application form as a basis for preparation and issuance of a Registration Certificate

for renewal.

k. An officer of the Authority shall produce a Registration Certificate upon being

satisfied of compliance with conditions of registration, requirements of physical

facilities and fulfilment of set performance benchmarks.

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l. The Director General or any other officer approved by the Director General shall

sign the Registration Certificate.

m. A signed Registration Certificate shall be handed over to the applicant against

payment of prescribed Registration Fees.

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THIRD SCHEDULE

________

(Made under regulation 10(2).

FEES FOR APPLICATION AND REGISTRATION OF A CLEARING AND FORWARDING AGENT

DESCRIPTION AMOUNT (US DOLLARS)

Application fees

Local

Foreign-

30,000 TSZ

50 USD

Annual Registration fees

Local

foreign

170000 TZS

200 USD

………………….. 2016 Makame Mnyaa Mbarawa

DAR ES SALAAM Minister for Works, Transport and Communication