Introducing Customs Bond in Tanzania

1. Prepared by:
Salum Mlaponi
Insurance Practitioner-Tanzania
CUSTOMS BONDS

2. CUSTOMS BONDS
 The main source of Government revenue is
taxes, this includes customs duties i.e taxes
imposed on imports of goods.
 Customs duties has to be paid either by private or
commercial entity, if a person or company is
exempted for paying customs duties subject to
certain conditions, then a customs surety bond is
issued.

3. Customs Bond (contd)
 A customs bond is the contractual agreement
used for guaranteeing that a specific obligation
will be fulfilled between customs and importer for
any import transaction.
 The main aim of customs bond is to guarantee
the payments of import or export duties and
taxes.

4. Custom bond (contd)
 The bond is a guarantee to the authority that the
insurance company guarantee to pay the duties
on the goods should a client fail to pay, and
leading to the loss of the duties to the state.
 The type of customs bond and the way it operate
depend much on the customs regime of the state
they are issued.

5. Types of Customs Bond
 There are various types of customs bonds
required by Customs Authority for various reason
i.e situation under which the duties are bonded.
 Forms of customs bonds
 CB0-Custom bond to secure customs duties.
 CB1-Custom bond for delivery of perishable
goods or other goods prior to payment of duty.
 CB2-Custom bond for removal of goods from
port/ place to be examined and entered at
another port or place.

6. Types (contd)
 CB3-Custom bond for warehousing of goods or
removal.
 CB4-Custom bond for exportation of goods.
 CB5-Custom bond for shipment of store
 CB6-Custom bond for security of warehousing
goods.
 CB7-Custom bond for goods to be shipped prior
to entry.

7. Types (contd)
 CB8-Transity bond.
 CB9-Transhpment bond.
 CB10-Custom bond for re-exportation of imported
goods delivered without payments of duties i.e
guarantee to the duties payable on the items
should a client fail to send back the goods have
been sold and duty is lost to the state.

8. Types (contd)
 CB11-Custom bond for customs agents
 CB12-Custom bond for conveyance of goods
subject to customs control.
 CB13-Custom bond to guarantee compliance with
customs laws and securing duties on goods
deposited in an ICD.