The Tanzania Revenue Authority (TRA) has introduced a sophisticated
electronic cargo tracking system (ECTS) to curb dumping of transit goods
into the local market.
The technology, which is set to start in June, this year, will be monitoring goods at entry and exit points in the country.
TRA official in-charge of the transit
unit, Alexander Buchafwe, said this here during an exhibition organised
by Investment Climate Facility (IFC), which is also part of the African
Development Bank’s series of meetings.
The system started in March this year but
TRA gave the business community three months to get prepared for the
operation of the cost-effective technology.
He said ECTS was a system that tracked
movements of vehicles and goods from one point to another and before the
new system the process used by TRA to monitor goods, which were subject
to customs control, was being done manually.
“The process involves getting reports at
every transit checkpoint,” Buchafwe said, adding that there would be no
more checkpoints from Dar es Salaam Port to destined border posts.
According to the official, the new ICT
system will speed up movements of goods on the designed routes by
eliminating idle time during clearance of goods at the border point and
in turn it will complement the government efforts to eliminate
non-tariff barriers (NTBs).
Citing some of the benefits of ECTS, the
official said through the technology it would be easy to identify
illegal diversion of goods, protect government revenue and real-time
consignment tracking as opposed to manual tracking.
“This technology also increases
transparency, uninterrupted movements of goods, quick security bond
cancellation and increases truck turnaround time,” he said.
The ECTS will also reduce the cost of compliance to TRA trade facilitation and increase safety of transit goods.
"ECTS will be able to speed up clearance
of trucks at border points and hence reduce congestion at the border's
customs yards, which is one of the massive problems that have been
hindering trade in the East African region," he explained.
Dumping remains a critical problem that subjects the country to losses amounting to billions of shillings.
Tanzania is estimated to have been losing
25bn/- a month due to fuel adulteration, dumping and compensation of
lost transit goods specifically those going to landlocked countries.
The ECTS system has been built to collect data and provide real time tracking information of trucks and transit goods.
The ECTS consists of two devices namely
M-Track and E-Seal whereby the M-Track is a wireless device, which
tracks and retrieves stolen goods, while the E-Seal is designed to
secure any shipment container and will continuously communicate its
status using radio frequency identification (RFI) wireless technology to
the tracking unit, which is placed in the truck's driver cabin.
Non-tariff barriers are restrictions that result from prohibitions,
conditions or specific market requirements that make importation or
exportation of products difficult and/or costly but due to ECTS most of
these drawbacks will be reduced to a considerable extent.
All goods that are subjected to customs
control under section 6 of the East African Community Customs Management
Act, 2004 need to be tracked by ECTS.