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Clearing agents seek government backing on minimum pricing
What you need to know:
- Currently, there is no standard pricing for these services and among the more than 1,400 companies engaged in this business and affiliated with Taffa, each sets its own rates independently.
Dar es Salaam. The Tanzania Freight Forwarders Association (Taffa) has submitted proposals for indicative pricing for customs clearance and cargo handling at ports, borders and airports, calling on the government to introduce a law or regulation that would protect the minimum cost thresholds outlined in these proposals.
Currently, there is no standard pricing for these services and among the more than 1,400 companies engaged in this business and affiliated with Taffa, each sets its own rates independently. This has created an inconsistent pricing environment that affects service quality, revenue collection and the livelihoods of customs agents.
Tanzania Revenue Authority (TRA) Commissioner General Yusuph Mwenda told The Citizen that Taffa had brought forward their proposals, which the authority is carefully reviewing.
Addressing members at the Taffa Annual General Meeting in Dar es Salaam, the association’s president, Mr Edward Urio, said the establishment of indicative pricing had been a long-standing desire among customs agents.
“Countries such as Uganda, South Sudan, the Philippines and Indonesia have minimum pricing thresholds that ensure the government collects appropriate taxes and that customs agents are guaranteed fair payment for their services,” he said.
Mr Urio added that the move aims to protect fair business practices, ensure service quality and promote sustainable logistics operations in Tanzania. Legal backing for minimum pricing, he noted, would bring long-term benefits to the industry, the government and the economy.
He explained that the AGM-approved proposal would now be presented to the government to assist in drafting regulations to enforce minimum pricing for customs clearance and cargo handling at all ports, borders and airports in the country.
“At present, each of the 1,400 companies charges its own rates. This situation reduces government revenue and makes it difficult for customs agents to earn a decent living. Indicative pricing would not only secure livelihoods but also professionalise our industry, which is critical to the smooth operation of the economy.”
Mr Urio further explained that the approach involves first proposing indicative pricing and then requesting the government to draft regulations to enforce compliance.
“Our main competition is not Mombasa; it is southern ports such as Durban, where a 20-foot container costs between $200 and $250 and a 40-foot container between $250 and $300.
In Tanzania, the lack of standard rates has led to situations where some agents accept unreasonably low fees, undermining the dignity of the profession. A government-backed system would increase revenue, restore respect to our sector and ensure proper professional standards.”
Several Taffa members welcomed the initiative. EHS Tanzania Logistics Limited managing director Faith Wilson described the current pricing system as chaotic.
“Everyone sets their own rates. There is no governing body to ensure a standard, fair rate that all agents observe. Indicative pricing would enhance the image of the industry and build trust with clients,” she said.
Another member, Mr Andrew Peter, emphasised the importance of a clear pricing system for both compliance and operational certainty. “Having indicative pricing allows agents to work without fear or anxiety and ensures we pay TRA appropriately. Without it, a client could provide a container worth $100,000 but pay only Sh100,000. This is clearly unfair. A standardised system is the solution,” he said.
Mr Urio also highlighted that implementing minimum pricing would allow the government to capture potential tax revenue that is currently lost due to the inconsistent fees charged across the industry. It would also help agents plan their operations more effectively and attract further investment into the logistics sector.
He added that legal backing for minimum pricing could serve as a model for other service sectors in Tanzania, setting a benchmark for fair trade practices and professional standards nationwide.
