EDITORIAL: Right move by Tasac to defer exclusive mandate

On February 23, 2021, the Tanzania Shipping Agencies Corporation (Tasac) issued a Public Notice declaring March 15, 2021, as being the effective date of implementing its exclusive mandate on additional items.

However, following the notice, players from the private sector engaged in the business of clearing and forwarding of goods voiced their concern and disapproval of the decision made by the State-run corporation.

Some of the major concerns directly aimed at understanding the double role played by Tasac – one being a shipping agency, while on another hand it is also the regulator.

It seems like the government has heard the cries and the concerns of the stakeholders in the shipping business. On March 13, the government issued another public notice extending the effective date for implementation of the additional mandate.

The government should be commended for this prudent move. The implementation has been extended to May 15, 2021, from the previously communicated March 15. The extension provides room for those who’ve invested in the shipping industry to make adjustments and necessary alignments.

What the extension means is that the previously exclusive mandate under the purview of Tasac pursuant to the law, which include; clearing and forwarding functions in relation to import and export of minerals, mineral concentrates, machineries, equipment, products or extracts related to minerals and petroleum, firearms and ammunitions, live animals, government trophies, has now been extended to include; clearing and forwarding of fertilizers, industrial sugar, domestic sugar, edible or cooking oil, wheat, oil products, gas, liquefied gas and chemicals or any liquid related products.

Clearly, the government through its agency is making major extension which will virtually alter import and export operations and significantly impact many businesses.

Therefore, deciding to listen to the calls for postponement of implementation date is an indication that the government is willing to listen and work closely with the private and foreign companies involved in the clearing and forwarding business.

But, other companies that operate in the clearing and forwarding sector should take note of the new date. According to the government, the new date for implantation of the exclusive mandate order will be final, and they’ve asked all stakeholders to do the necessary preparations or adjustments of their plans and operations accordingly.

Working together

Additionally, what is even more encouraging is the fact that stakeholders have been asked to seek from Tasac any clarification needed to enable smooth implementation of the additional mandate.

The new public notice as endorsed by the Director General of Tasac is a step in the right direction in creating a harmonious operating ground that will lead to growth of both exports and imports. Furthermore, it also creates room for more dialogue between the private stakeholders and the government on how the two parties will work together effectively in light of the new changes. As the main maritime administration authority, Tasac is vested with the duty of ensuring that clearing and forwarding activities at all major ports are done smoothly. Pursuant to the law, Tasac also has the mandate to regulate maritime transport services, maritime environment, safety and security. This means that the purview of the Corporations is so profound that all aspects of its functions need to be in order.