Tanzania Revenue Authority unveils online platform to dispose of uncleared goods

Dar es Salaam. As part of efforts to ease congestion at customs warehouses, the Tanzania Revenue Authority (TRA) has introduced an online auction platform that will replace public auctions.

TRA Commissioner General Edwin Mhede said yesterday that the online platform will allow more bidders in Tanzania and beyond to participate in auctions, and at the same time do away with middlemen.

“We have decided to do away with public auctions due to a number of reasons that have been hindering the process,” he said.

Mr Mhede added that according to the East African Customs Act of 2004, goods that either enter or leave the country were required to be stored in customs warehouses at airports, borders as well as cargo freight stations and inland container depots.

He noted that goods entering the country are required to be stored at customs warehouses for a maximum of 21 days after which TRA can add another 30 days to allow owners to clear the goods.

If the goods are not cleared within the stipulated period, TRA is mandated to advertise in the media and issue another 30 days.

After 81 days elapse and the goods are not cleared, the authority is mandated to sell them in a public auction. Perishable goods can be sold without necessarily having to go through a public auction.

Dr Mhede said pubic auctions are conducted by marts authorised by TRA.

He noted, however, that the process has encountered challenges in that TRA only has the capacity to conduct one auction per week, and this means that the government is unable to recover unpaid taxes in good time.

At the same time, Mr Mhede said people involved in bidding usually interfere in the process, making it difficult for genuine buyers to purchase goods.

He noted that there has also been price fixing, contrary to economic requirements, thereby hindering the process.

“Even the cost of organising auctions has been high, while productivity is low.”

In view of this, TRA has decided to stop public auctions and replace them with an online process in line with government plans. Mr Mhede noted that through online auctioning, TRA expects to achieve a number of goals, including selling more goods on time through fair competition and ultimately increasing tax collection.

TRA also hopes to enable more bidders to participate in the process compared to public auctions.

“Bidders can participate in the purchase of more than one item without any hustle. The online system is also connected to the vehicle registration system, which makes it easier to access vehicle registration cards,” he said.

The first online auction will be conducted on January 2, 2020, and bidders will be given ample time to register for the process.

For her part, Ms Scolastica Kevele, managing director of auctioneers Yona Limited, commended TRA for its decision to go digital.

“TRA should now conduct a public awareness campaign to ensure that the changeover is successful,” she said.