Customs disputes in Tanzania arise when importers or exporters challenge decisions of the Commissioner General of the Tanzania Revenue Authority (TRA), typically involving classification, valuation, or licensing requirements under customs law. These disputes are governed by both East African Community law and Tanzania’s domestic tax dispute framework as collectively highlighted below.

• East African Community Customs Management Act, 2021 (EACCMA)

This Act provides the regional basis for customs management and dispute resolution in Tanzania and other EAC Partner States by harmonizing dispute settlement for decisions on duties, valuations, and classifications under sections 229-231 among other things. Despite such harmonization when it comes to the part of resolving customs disputes arising between the taxpayers and the Authority it is vested under Domestic Tax Authorities.

• The Customs (Management and Tariffs) Act (Cap. 403) R.E 2023

This is the primary law that is customised to management of customs disputes procedures domestically. It supplements the EACCMA by providing for implementation of Tariff structures and importantly it identify the mode of enforcement of customs laws and dispute resolution under section 127 and Part XIV.

• The Tax Administration Act (Cap. 438, R.E.2023) (TAA)

The TAA Integrates customs assessments into Tanzania’s broader tax system. TAA ensures uniformity in handling objections and appeals. One of the notable provisions under The TAA is section 62 which requires an objection to a tax decision (including customs assessments) to be lodged in writing within 30 days, stating grounds and accompanied by supporting documents.

• The Tax Revenue Appeals Act (Cap. 408, R.E.2023) (TRAA)

The TRAA establishes the Tax Revenue Appeals Board (TRAB) and the Tax Revenue Appeals Tribunal (TRAT) as specialized bodies for resolving tax disputes . Further this law and its rules provide a general procedural framework of these two bodies.

Procedures for Dispute Resolution.

This process is tiered, starting administratively and escalating to judicial level, ensuring exhaustive remedial procedure.

1. Filing an Objection to the Commissioner General

The first stage of the customs dispute resolution process in Tanzania is the administrative review filed by the Taxpayer. This internal review mechanism with the Tanzania Revenue Authority (TRA) is a mandatory step before any further appeal can be lodged. In accordance with section 229(1) of the EACCMA the taxpayer who is aggrieved by a tax decision, such as a disputed customs assessment made by the Commissioner General, must primarily follow this procedure to ensure their objection is filed within 30 days since filing. The review must be considered by the commissioner who gives decision thereto within 6 months.

Please note, the taxpayer must first pay to the TRA the whole undisputed sum or one third of the assesed sum, whichever is higher.

2. First Appeal to the Tax Revenue Appeals Board (TRAB)

TRAB has sole appellate jurisdiction over TRA-related civil disputes from commissioner’s decisions. Appeal must be lodged within 45 days of decision using Form TRB.2 which is prescribed under the Tax revenue Appels Board Rules G.N. No. 217 of 2018. Prior to institution of the appeal the taxpayer must file a written notice of intention to appeal the Commissioner General within 30 days from the day of Commissioner General’s decision being appealed against.

3. Second Appeal to the Tax Revenue Appeals Tribunal (TRAT)

The appeal process starts with filing a notice of appeal within 15 days, formal appeal is then filed within 30 days using Form TRT.2 which is prescribed under the Tax Revenue Appeals Tribunal Rules G.N. No. 222 of 2018.

4. Final Appeal to the Court of Appeal of Tanzania

The Court of Appeal of Tanzania is the apex body, whose decision is conclusive with regards tax disputes. A party dissatisfied with the TRAT’s decision may appeal to this apex court.

Reduction or waiver of Tax not in Dispute.

The taxpayer with good reasons can apply to the commissioner for reduction or waiver of Tax not in dispute for the admission of a review application. For this application to be granted the Taxpayer must show good reasons to the commissioner, The said good reasons includes

• Financial hardship,
• Uncertain questions of laws and facts
• Apparent errors or
• High recovery costs,

Please note, if the reduction or waiver is rejected the taxpayer must pay the entire of the assessed duties.