Duty Drawback Tanzania: How Exporters Recover Import Duty on Inputs

This guide explains duty drawback in Tanzania for manufacturers and traders who pay import duty and then export. It reads the drawback sections of the East African Community Customs Management Act (EACCMA), the drawback regulations, the two TRA forms, the grounds for refusal, how VAT is recovered instead, the Zanzibar position and a worked example in shillings and dollars.

Who should read this

• Manufacturers that import inputs and export part of their output, outside a special economic zone or a bonded factory.
• Traders that re-export imported goods after paying duty on entry, for example when a local sale falls through.
• Finance teams that carry import duty on the balance sheet and want the cash back.
• Clearing agents who prepare the export entries that a drawback claim depends on.
• Zanzibar exporters, because customs duty is a Union matter and the same rules apply there.

If you import under a duty exemption or under the EAC duty remission scheme, read our guide to duty remission quarterly returns as well. Drawback is a different tool with its own conditions.

What the law says

Customs law in Tanzania is East African Community law. The EAC Secretariat records the Act's date of assent as 31 December 2004 and its commencement as 1 January 2005. TRA publishes the Revised Edition of 30 June 2019 on its site. That edition notes that the EAC Secretariat's official text prevails over any copy.

Section 2 defines duty drawback as a refund of all or part of any import duty paid on goods that are exported. The definition also covers goods used in a manner or for a purpose prescribed as a condition of drawback. The operative rules sit in Part X, under the heading "Drawback, Remission, Rebate and Refund".

The section text we read is the version published by the Uganda Revenue Authority, because the Act is common to all partner states. The regulations are on TRA's site as the EAC Customs Management Regulations, 2010. The EAC is also reviewing the Act and its regulations, so check for amendments before you file.

What is duty drawback and how does it differ from remission?

Drawback is a refund after the event. You pay import duty when the goods enter, export the goods or the products made from them, then claim the duty back. The cash is out of the business from entry until TRA pays.

Remission works at the front end. Under section 140, the EAC Council of Ministers approves named manufacturers and quantities, and the inputs then enter at a reduced or nil rate. TRA's Taxes and Duties at a Glance 2025/26 lists the remission lines approved for Tanzania and marks them "valid for one year". Remission beneficiaries file quarterly returns, and a missed return can cost the remission.

Two other routes avoid paying duty at all. Manufacturing under bond lets a factory import inputs under a customs bond that is discharged on proof of export. A licensed special economic zone operates under the Investment and Special Economic Zones Act No. 6 of 2025, administered by TISEZA. The WTO Secretariat's 2019 review of the EAC describes these export schemes as harmonised across the partner states.

Which goods qualify for duty drawback?

Section 138 covers two broad cases. The first is imported goods exported in the same state, such as a consignment re-exported unused. The second is goods loaded on an aircraft or vessel as stores. Section 139 adds a third case: imported inputs used to manufacture goods that are exported.

For manufactured goods, section 139 sets five conditions:

• the exported goods must be a direct result of the imported goods used to make them;
• the owner must obtain authorisation from the Commissioner of Customs before manufacture;
• the Commissioner must fix, or agree to, the yield rate of the operation;
• the description, quality and quantity of the compensating products must be specified;
• the Commissioner must prescribe the drawback coefficient that converts exports into a refund.

Regulation 139(4) adds an important limit. No drawback is granted on materials that were imported tax-exempt. You cannot recover duty you never paid.

The C31 declaration also matters for regional sales. The exporter declares that the goods are not meant to be re-landed in the Partner States. Drawback is therefore built for goods that leave the East African Community. Confirm the treatment of sales to Kenya, Uganda or another partner state with TRA before you rely on a claim.

When is drawback refused?

Most failed claims fail on paperwork or timing, not on principle. Section 138(3), as published, refuses drawback where the home-consumption value of the goods is less than the drawback claimed and the import duty on the goods was less than US$100. Regulation 142 adds seven grounds.

Section 138(4) gives one relief. Where goods were properly loaded and are then destroyed on board by accident, or materially damaged and landed or abandoned with permission, drawback may still be allowed as if they had been exported.

How do you claim duty drawback from TRA?

The procedure runs in three stages: registration, yield, then the claim. TRA lists both drawback forms under "EAC Customs Forms" in its resource centre.

Registration. Regulation 139(1) requires the claimant to register with the Commissioner and provide the particulars and documents the Commissioner asks for. Registration produces a duty drawback (DDB) registration number, which appears on the claim form. For manufactured goods, section 139 requires the Commissioner's authorisation before production starts.

Yield. Under regulation 139(2), the exporter records the rate of yield on Form C30, the Duty Drawback Rate of Yield Notification Form. The form lists each imported input by HS code, splits imports from COMESA or SADC and from third countries, and lists each export with its standard input and output ratio. That ratio is the basis for the drawback coefficient.

Claim. Under regulation 139(3), the claim goes on Form C31, the Duty Drawback Debenture and Claim Form. It must be supported by the original commercial invoice, the packing list and a claim form signed with the printed names of the authorised officers. Form C31 links the import entries to the export entries, shows the FOB value and coefficient, and states the amount claimed in dollars.

The form then passes through four hands at TRA: the proper officer certifies the amount, a recommending officer verifies it, the Commissioner approves it, and a paying officer records payment. Under regulation 140, drawback is paid on the quantity exported, shipped as stores or used as prescribed.

The export entry itself goes through TANCIS, TRA's customs system. Our guide to the TANCIS import declaration explains the entry data a drawback claim must match. A licensed clearing agent usually lodges both sides.

We found no government fee for a drawback claim in TRA's published material, and the Zatra fee register carries no drawback line. Confirm with TRA whether any charge applies to your claim.

Does drawback cover VAT, RDL and the customs processing fee?

The Act defines drawback as a refund of import duty. On the Mainland, VAT on imports is charged at 18% (F0312) and recovered through the VAT system, not through drawback. A registered exporter claims the import VAT as input tax under section 72 of the VAT Act, Cap. 148 R.E. 2023. Exports of goods are zero-rated under section 55, so an exporter often sits in a credit position. Section 86 provides for a refund without carry forward, and section 88 governs the application.

Our guide to VAT refunds in Tanzania covers that file. Note that Auditax International (20 May 2025) describes the drawback scheme as refunding "import duty and VAT on inputs". The statutory text we read speaks of import duty only, so treat VAT as a VAT Act refund.

Two other import charges need care:

• Railway Development Levy at 2% of customs value (F0309), charged under the Railways Act.
• Customs Processing Fee at 0.6% of FOB value (F0311), as published by TRA.

Neither is called import duty in its own instrument. We found no published TRA position on refunding either through drawback. Budget them as a cost unless TRA confirms otherwise in writing.

Choosing between drawback, remission, bond and a special economic zone

Drawback is the most flexible route because it needs no zone, no bond and no Council approval. It is also the slowest for cash. The table compares the four routes for an exporter of manufactured goods.

Our guide to VAT, tax and import duty incentives covers exemptions. For the zone route, see TISEZA investor registration.

How does duty drawback work in Zanzibar?

Customs duty is a Union matter. The list of Union matters published by the Vice President's Office includes "customs duty and excise duty". The EACCMA, its regulations and the drawback forms therefore apply to goods imported through Zanzibar, and TRA's customs function administers them.

VAT is different. Zanzibar runs its own VAT through the Zanzibar Revenue Authority (ZRA), at a 15% standard rate with exports zero-rated. TRA's Taxes and Duties at a Glance records 15% on taxable goods imported into Zanzibar. A Zanzibar exporter recovers import VAT through ZRA, not through TRA and not through drawback.

One point is open. A shipment from a Zanzibar factory to the Mainland stays inside the partner state, so it is unlikely to count as an exportation for drawback. Confirm the treatment with TRA before you price such a sale. Our guides to the Zanzibar VAT rate and threshold and Union and non-Union taxes explain the split.

Worked example: a Dar es Salaam manufacturer claiming drawback

A manufacturer in Dar es Salaam imports 100 tonnes of an input. Assume the tariff line carries 25% under CET band 3 (F0306). Confirm the real HS classification before you rely on any rate. We use an illustrative rate of TZS 2,500 to USD 1; use the Bank of Tanzania rate on the day in a real file.

The customs value is USD 200,000, or TZS 500,000,000. The FOB value is USD 180,000, or TZS 450,000,000.

TRA agrees a yield on Form C30: 100 tonnes of input make 80 tonnes of finished product. Within the 12 months after paying duty, the company exports 48 tonnes to a buyer outside the EAC and sells 32 tonnes locally.

The exported 48 tonnes used 60 tonnes of input, which is 60% of the lot. The drawback is 60% of TZS 125,000,000, or TZS 75,000,000. Form C31 states the claim in dollars, so the claim is USD 30,000 at the illustrative rate. The duty on the 32 tonnes sold locally, TZS 50,000,000, stays with TRA.

The duty well exceeds the US$100 floor in section 138(3). The claim must reach customs within 12 months of the export date under section 138(2). Lodge it as soon as the endorsed export entry is back, because every month of delay is working capital lost.

Now compare remission. If the input were on Tanzania's approved remission list at 0%, the company would pay no duty on the 100 tonnes. It would then owe quarterly returns and must use the inputs as approved. The cash saving at entry is the full TZS 125,000,000, against TZS 75,000,000 recovered later under drawback.

What to do now

1. Map the duty paid. List every import entry for the last 12 months with its duty, HS code and payment date.
2. Match exports to imports. Link each export entry to the input lots it used, and flag lots near the 12-month limit.
3. Register with TRA. Apply for a DDB registration number and the Commissioner's authorisation before the next production run.
4. Fix the yield. File Form C30 with a defensible input and output ratio, supported by production records.
5. Collect export proof. Make sure each export entry carries the officer's certificate, and obtain landing certificates where asked.
6. File Form C31 promptly. Claim within 12 months of export, with the invoice, packing list and signed claim form.
7. Run VAT separately. Claim import VAT as input tax with TRA, or with ZRA in Zanzibar, and apply for any refund.
8. Review the route each year. Compare drawback with remission, bonded manufacture and a zone licence as volumes change.

Key dates and deadlines

The two 12-month limits run from different dates. A lot imported in January 2026 must leave by January 2027. If it leaves in December 2026, the claim must be in by December 2027.

How Zatra helps

Zatra reviews a manufacturer's import and export records, measures the duty that can be recovered, and builds the yield file for Form C30. We prepare the C31 claims, reconcile them to TANCIS entries, and track each lot against both 12-month limits. We also compare drawback with remission, bonded manufacture and a zone licence on your real volumes.

Our import and export compliance team runs the customs file. Our tax advisory and planning desk handles VAT recovery, and our TRA audit and dispute team handles rejected claims. For export permits, see our guide to exporting from Tanzania.

Costs come in two separate buckets. Government charges, such as duty, levies and any customs fee, are paid at the official rate against TRA's control number. Zatra's professional fee is quoted on its own line and never mixed with government charges. Zatra prepares and files, but does not decide or guarantee any authority's outcome. Seizures, prosecutions, disputes before the Tax Revenue Appeals Board and formal legal opinions go to an advocate.

Sources and status

Accurate as at 20 October 2026.

• East African Community Customs Management Act, 2004, Revised Edition 2019: TRA copy, revised to 30 Jun 2019; s.2 and Part X arrangement read. Accessed 20 Oct 2026.
• EACCMA text, ss.138 to 140: Uganda Revenue Authority, 2004 Act as published online. Accessed 20 Oct 2026.
• EAC Customs Management Regulations, 2010: TRA copy, 2010; regs 139 to 142. Accessed 20 Oct 2026.
• TRA resource centre, EAC Customs Forms: TRA, 2026; Forms C30 and C31. Accessed 20 Oct 2026.
• Taxes and Duties at a Glance 2025/26: TRA, July 2025. Accessed 20 Oct 2026.
• Review of the EAC Customs Management Act, 2004: EAC Secretariat, 2026. Accessed 20 Oct 2026.
• ZRA Value Added Tax page: Zanzibar Revenue Authority, 2026. Accessed 20 Oct 2026.
• Customs and Trade: Auditax International, 20 May 2025. Accessed 20 Oct 2026.
• Zatra fee register lines F0239, F0242, F0246, F0306, F0309, F0311, F0312, TZ-08, TZ-09: fees at 26 Sep 2026. Accessed 20 Oct 2026.

Figures to confirm before you act

• Section 138(3) floor: the US$100 figure and how its two limbs combine, against the EAC Secretariat's official text
• RDL and Customs Processing Fee: whether TRA refunds either through drawback
• Sales to partner states: whether exports to Kenya, Uganda or other EAC states qualify
• Zanzibar to Mainland shipments: whether TRA treats them as exports for drawback
• Processing time: TRA has published no service standard for paying drawback that we could find
• Claim fee: whether any charge applies to registration or a claim
• Tariff rate: the 25% band in the example is assumed; confirm the HS code and CET rate
• Exchange rate: the example uses TZS 2,500 to USD 1 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.