Bonded Warehouse Tanzania: How Duty Waits Until Goods Leave Bond

This bonded warehouse Tanzania guide explains the licensing rules, the security bonds TRA asks for, the warehousing period, removal for home use, re-export or transfer, VAT on removal, losses and penalties, and how the rules apply in Zanzibar. A worked example puts real USD and TZS figures on the cash-flow benefit.

Who should read this

• Importers of spare parts, vehicles, consumer goods or industrial inputs who sell in stages and want to pay duty as goods move, not when the ship arrives.
• Regional distributors who hold stock in Dar es Salaam for buyers in Tanzania and in neighbouring markets.
• Logistics firms and property owners thinking of applying for a general or private customs bonded warehouse licence in TRA's 2027 round.
• Duty-free shop operators at airports and border points.

The timing matters now. TRA's 2027 customs licence round opened on 30 September 2026, and every 2026 customs licence expires on 31 December 2026. Our brief on the customs licences 2027 notice covers all six licence types. This guide goes deeper on warehousing.

What the law says

Customs warehousing in Tanzania runs on Community law. The East African Community Customs Management Act, 2004 (EACCMA), revised 30 June 2019, published by the Tanzania Revenue Authority (TRA), applies in every EAC Partner State. Part IV of the Act, headed "Warehousing of Goods", runs from section 47 to section 69. We read the arrangement and operative text in the 2004 text published by the Kenya Revenue Authority and checked the amended section 57 against a copy of the 2019 revised edition.

Part IV has two halves. Sections 47 to 61 are general provisions: what may be warehoused, entry, operations in the warehouse, transfer, abandonment, the warehousing period, removal and penalties. Sections 62 to 69 deal with bonded warehouses: licensing, revocation, the keeper's duties, stowage, production of goods and Government warehouses.

The detail sits in the East African Community Customs Management Regulations, 2010, also on TRA's site. We read them in the tralac copy. Part V (regulations 64 to 73) covers warehousing procedure. Regulations 74 to 81 cover bonded warehouses. Regulations 82 to 87 cover Government and Customs warehouses.

Section 2(1) defines a bonded warehouse as "any warehouse or other place licensed by the Commissioner for the deposit of dutiable goods". A Government warehouse is a place provided by a Partner State's Government and approved by the Commissioner. The warehouse keeper is the holder of the licence.

What is a bonded warehouse, and how does it differ from an ICD?

A bonded warehouse holds goods that have been formally entered for warehousing. Duty is suspended, and the goods can stay for the warehousing period. The owner chooses later whether to enter them for home consumption, export them, move them to another warehouse or supply them as ship or aircraft stores.

An inland container depot (ICD) or container freight station (CFS) is different. Section 14 lets the Commissioner license a depot for goods under customs control before they are cleared. It is an extension of the port, not a long-term store. Storage charges there follow the dry port tariff, explained in our guide to demurrage and storage at Dar es Salaam.

A Customs warehouse is different again. Import cargo not documented within 21 days of discharge is moved there, and rent runs at USD 0.3 per cubic metre per day under regulations 82 and 84 (register line NEW-03-26). That is a penalty route, not a planning tool.

Which types of customs warehouse exist in Tanzania?

Section 62(2) creates two licence types. A general warehouse may store any dutiable goods. A private warehouse may store only goods that belong to the warehouse keeper. Duty-free shops and manufacturing under bond sit alongside them.

The Regulations do not set separate licensing rules for duty-free shops. Regulation 79(3) requires the sign "Duty Free Shop", and regulation 68(2) relieves sales to departing passengers from the removal bond. Treat a duty-free shop as a bonded warehouse with retail conditions, and confirm the current conditions with TRA before signing a concession.

How do you get a bonded warehouse licence from TRA?

Section 62(1) lets the Commissioner license any building or place as a warehouse on application. The Commissioner may refuse, suspend or revoke a licence and must give reasons. Regulation 74 requires an application on Form C18 with a plan of the premises. The licence itself is issued on Form C19.

TRA's customs licensing page lists the standing conditions. The premises must be in a commercial or industrial area. The site needs a three-metre perimeter fence with electric wire, lighting and fire-fighting equipment. The applicant shows a certified rental contract longer than the licence term, or proof of ownership. The page sets a minimum area of 1,000 square metres for a private warehouse and 2,000 for a general one.

The 2027 round adds conditions. TRA's notice Invitation to apply for customs licenses for the year 2027 appears on TRA's public notices page dated 30 September 2026. As summarised in our 10 October brief, it moves filing to the Tanzania Electronic Single Window (TANESW). It also sets ownership tests:

• A general customs bonded warehouse must be 100 percent Tanzanian owned and managed.
• A private customs bonded warehouse needs at least one third Tanzanian ownership and management.
• The ownership rules do not apply to private warehouses for manufacturers, assemblers and authorised motor vehicle dealers, or to manufacturing under bond.
• Motor vehicle bonded warehouses in Dar es Salaam region need 2,000 square metres (private) or 3,000 (general).

The 31 October 2026 cut-off in the notice applies to new customs agent applications. For bonded warehouses the notice gives no separate cut-off. A warehouse not renewed by 31 December 2026 is suspended in the system from 1 January 2027, so file renewals well before December.

Ownership has a wider context. GN 487A of 2025 reserves certain activities for citizens, as Clyde & Co reported on 29 July 2025. A foreign-owned group that wants a general warehouse should take advice from an advocate before any share transfer. Fronting arrangements are offences, not workarounds.

What does a bonded warehouse cost in fees and security?

Two kinds of government cost apply: the annual licence fee and the security bonds. Regulation 75(1) states that "the annual licence fee for a bonded warehouse shall be one thousand five hundred dollars", with a pro rata fee for part of a year. Section 62(3) adds that licences expire on 31 December each year.

A bond is a guarantee, usually from a bank or insurer, not cash paid to TRA. The guarantor charges its own commission, which is a commercial cost. A licence issued on 1 April pays nine twelfths of USD 1,500, which is USD 1,125.

Section 62(3) and the Kenya Revenue Authority's bonded warehouse procedure of 27 June 2025 both fix expiry at 31 December. TRA's page says licences are valid for twelve months from issue. The 2027 notice treats 31 December 2026 as the common expiry.

How long can goods stay in bond?

Section 57(1) sets the base period at six months from the date of warehousing. With the Commissioner's written permission, goods may be re-warehoused for a further three months. Since the 2015 amendment, the Commissioner may extend that by another period not exceeding three months. The working maximum for ordinary goods is therefore twelve months.

The proviso allows longer periods for three classes: certain goods held by licensed manufacturers, goods in duty-free shops, and new motor vehicles held by approved assemblers and dealers.

When the period ends without re-warehousing, section 57 provides for sale by public auction after one month's notice. Perishable goods can be sold without notice. Proceeds pay duty first, then sale costs, rent, port charges and freight. The owner may claim any balance within one year of the sale; after that it goes to Customs revenue.

Section 56 deals with abandonment of warehoused goods. We did not read its operative text this session, so confirm the terms with TRA before relying on it.

How are goods removed from bond, and what duty is paid?

Every removal starts with a new customs entry lodged by a licensed customs agent in the customs system. The four exits are:

• Home consumption. Duty, levies and VAT are paid on the entry. Section 60(1) requires removal within 14 days after the entry.
• Export or re-export. Section 60(2) requires removal and export within 30 days, extendable by up to 30 more days. No Tanzanian import duty is paid.
• Transfer to another warehouse. Section 54 requires an entry and security, and the goods are re-warehoused on arrival.
• Stores. Section 55 allows delivery as ship or aircraft stores.

Goods entered but not removed in time are forfeited under section 60(3), unless the Commissioner directs otherwise. That makes the 14-day and 30-day windows hard limits.

The rate of duty is the rate in force when the goods are entered for home consumption. Section 120 of the Act is headed "Time of entry determines rate of duty". We read the heading but not the operative text this session. Treat this as the working rule and confirm it with TRA for a large removal.

The rule cuts both ways. A Finance Act rate cut on 1 July lowers duty on goods still in bond. A rate rise, or an end to an EAC duty stay, raises it. Section 47(2) and the section 51 proviso fix the quantity and description from the warehousing account.

The charges on a home-consumption entry are those for any import. See our guides to import duty, VAT and excise and customs valuation. The main lines are the EAC Common External Tariff bands of 0, 10, 25 and 35 percent (F0304 to F0307). Add the 2 percent Railway Development Levy on CIF (F0309) and the 0.6 percent Customs Processing Fee on FOB (F0311). TRA lists these in Taxes and Duties at a Glance 2025/26.

How is VAT handled on removal from bond?

Import VAT follows the customs entry. Under section 8(1)(a) of the Value Added Tax Act, Cap. 148 R.E. 2023, VAT on an import is payable when goods are entered for home consumption in Mainland Tanzania. Section 8(4) treats import VAT as if it were customs duty. Section 9 sets the base as the customs value plus duty and any other tax, levy, fee or charge, excluding VAT itself.

Goods in bond therefore carry no import VAT until the ex-bond entry. The Mainland rate is 18 percent (F0312). A VAT-registered importer can claim import VAT as input tax in the return for that month, due by the 20th of the following month (F0245). The benefit of bond is timing and cash, not a lower tax bill, unless the goods leave Tanzania.

Section 44(2) treats goods supplied after import but before entry for home consumption as delivered outside Mainland Tanzania. A sale of goods while they sit in bond, recorded on Form C16 under regulation 71, is therefore outside Mainland VAT on that sale. The buyer then pays import VAT on the ex-bond entry. Confirm the treatment with TRA before invoicing a large in-bond sale.

What records must a warehouse keeper keep?

Section 64 requires the keeper to provide an office for customs officers, weighing and measuring equipment, and secure storage. The keeper must keep records of all warehoused goods and make them available to the proper officer. Goods must be stacked so that every package can be reached. A breach is an offence with a fine of up to USD 1,000.

Section 65 bars moving, opening or re-marking goods without approval, subject to the operations allowed under section 51. Repacking, sorting and assembly need prior approval on Form C15 under regulation 70. Regulation 80 requires a return of goods remaining in the warehouse, due by 31 July for stock held at 30 June. TRA's conditions also require a computer linked to the customs system.

What happens if goods go missing from bond?

Losses become duty debts quickly. Section 67 requires the keeper to produce all warehoused goods on request.

TRA can also call the security bond. Where a matter moves toward prosecution, seizure or forfeiture, instruct an advocate at once, because review and appeal deadlines are short.

How does this work in Zanzibar?

Customs is a Union matter. A Zanzibar Revenue Authority (ZRA) presentation hosted by the Addis Tax Initiative states that TRA administers Union taxes and ZRA handles non-Union taxes. EACCMA applies to the United Republic as a Partner State. Our note on Union and non-Union taxes explains the split.

A licence for Mainland premises does not license premises in Zanzibar.

Worked example: six months in bond, four tranches

This example is hypothetical. A VAT-registered Dar es Salaam distributor imports vehicle spare parts with a CIF value of USD 200,000 and an FOB value of USD 190,000. The goods fall in the 25 percent CET band. We use TZS 2,500 to USD 1 for illustration only.

Option A, duty paid on arrival. The distributor pays USD 101,065.20, about TZS 252,663,000, before the goods leave the port.

Option B, warehoused and removed in four equal tranches. The parts go into a public bonded warehouse. A quarter is entered for home consumption at months 1.5, 3, 4.5 and 6. Each tranche pays USD 25,266.30, about TZS 63,165,750. The average deferral is 3.75 months.

At an assumed overdraft cost of 16 percent a year, deferral saves USD 101,065.20 × 16% × 3.75 ÷ 12 = USD 5,053.26, about TZS 12,633,150. Peak cash out on day one falls from USD 101,065.20 to nothing, and never exceeds one tranche at a time.

Now suppose the third tranche is sold to a buyer in a neighbouring market and re-exported from bond. That quarter pays no Tanzanian duty, levy or VAT. The USD 25,266.30 is never paid, rather than paid and reclaimed through duty drawback.

The example leaves out the keeper's commercial rent and handling and the agent's fees. Set those against the saving.

What to do now

1. Decide whether bond fits your stock. Model duty, VAT and finance cost for duty-paid and warehoused routes, as in the example.
2. Choose general or private. Use a licensed public warehouse first; apply for a private licence only where volumes justify the bonds.
3. Check ownership against the 2027 notice. Confirm whether the 100 percent or one-third test applies, and take advocate advice before any restructuring.
4. Arrange the security. Approach a bank or insurer early for the warehouse bond (F0347 or F0348) and the revolving bond (F0350).
5. Prepare the premises file. Assemble the title or lease, site plan, fencing, CCTV and fire-fighting evidence before filing on TANESW.
6. Renew before 31 December 2026. Existing keepers should file renewals well ahead of expiry to avoid suspension on 1 January 2027.
7. Diary the warehousing periods. Track the six-month date for each entry and apply for re-warehousing in writing before it passes.
8. Set up the stock ledger. Reconcile entries, removals and stock monthly, and file the regulation 80 return by 31 July.

Key dates and deadlines

How Zatra helps

Zatra models the duty, VAT and cash-flow case for warehousing, and prepares the licence application file for TRA. That covers ownership review, premises checklist, bond coordination with the bank and the TANESW submission. For existing keepers we set up the stock reconciliation and the re-warehousing diary.

Our import and export compliance team runs the customs side. Our TRA audit and dispute team handles post-clearance audits and deficiency queries. For goods moving through Tanzania to a third country, see our guide to transit goods, and for declarations see the TANCIS import declaration.

Costs come in two separate buckets. Government charges, including the licence fee, duty, levies and VAT, are paid at the official rate against the authority's control number. Bank or insurer commission on bonds is billed by the guarantor. Zatra's professional fee is quoted on its own line and never mixed with them. Zatra prepares and coordinates, but does not decide or guarantee any authority's outcome. Prosecution, seizure, forfeiture, disputes before the Board or the courts, and legal opinions go to an advocate.

Sources and status

Accurate as at 24 October 2026.

• EAC Customs Management Act, 2004, revised 30 June 2019: TRA copy. Accessed 24 Oct 2026.
• EAC Customs Management Act, 2004: KRA copy; ss.2, 47 to 69 read. Accessed 24 Oct 2026.
• EACCMA revised edition 2019: consultancy-hosted copy; s.57 as amended 2015 and ss.62 to 69 read. Accessed 24 Oct 2026.
• EAC Customs Management Regulations, 2010: TRA copy; read via the tralac copy, regs 57 to 87. Accessed 24 Oct 2026.
• TRA public notices: listing dated 30 Sep 2026. Accessed 24 Oct 2026.
• TRA customs licensing page: undated standing conditions. Accessed 24 Oct 2026.
• Value Added Tax Act, Cap. 148 R.E. 2023: TRAB copy; ss.8, 9 and 44 read. Accessed 24 Oct 2026.
• KRA procedure for licensing a bonded warehouse: Kenya Revenue Authority, 27 Jun 2025. Accessed 24 Oct 2026.
• ZRA presentation on Union and non-Union taxes: Addis Tax Initiative, undated. Accessed 24 Oct 2026.
• Clyde & Co on GN 487A of 2025: law firm note, 29 Jul 2025. Accessed 24 Oct 2026.
• Zatra fee register lines NEW-03-23, NEW-03-24, NEW-03-26, F0347, F0348, F0349, F0350, F0353, F0504, F0846, F0304 to F0307, F0309, F0311, F0312, F0245, F0246: fees at 26 Sep 2026. Accessed 24 Oct 2026.

Figures to confirm before you act

• 2027 notice conditions: we could not open the scanned notice this session; ownership, area and renewal terms come from our 10 October reading of it
• Licence expiry: 31 December under s.62(3) against twelve months from issue on TRA's page
• Rate of duty on removal: the operative text of s.120 was not read this session
• Abandonment terms: the operative text of s.56 was not read this session
• Bond amounts: minimums from TRA conditions; TRA may set higher security for a given warehouse
• In-bond sales and VAT: application of VAT Act s.44(2) to Form C16 transfers
• Zanzibar: filing desk, VAT collection channel and whether the ownership test applies
• EACCMA after June 2019: TRA's page cites an "East African Community Customs Management Act, 2023"; check the EAC Gazette for amendments to Part IV
• Exchange rate and finance cost: the example uses TZS 2,500 to USD 1 and 16 percent a year for illustration only

This article is general information based on official sources available at the date of publication. It is not legal, tax or financial advice. Laws and notices change. Verify with the issuing authority or consult Zatra before acting.