SMEs told to learn requirements of cross-border trade

08Mar 2016
Beatrice Philemon
Business
The Guardian
SMEs told to learn requirements of cross-border trade

TANZANIAN small and medium scale entrepreneurs (SMEs) will fail to benefit from business opportunities available in East Africa and beyond if they will not grasp the demands of cross-border trade.

Foreign Affairs, East African, Regional and International Cooperation minister Dr Augustine Mahiga (2rd l) and Kenya’s Labour and East African Affairs Minister Phyllis Kandie (2rd r) cut the ribbon to officially launch the first One Stop Border Post (OSBP) in Holili/Taveta towns.

Tanzania Revenue Authority (TRA) Principal Custom Officer Anitha Mtasiwa sounded the warning at the just-ended workshop on Business Process Analysis organised by International Trade Centre (ITC) in collaboration with Small Industries Development Organization (SIDO).

She said that SMEs need to learn the ropes because most of those trading in the East African region incur losses because they do not understand the importance of issues such as contract of sale and how it would benefit their businesses and other issues relating to export procedures.

“As Tanzanian traders doing business in East Africa region and abroad, make sure you have a contract of sale before you export or import goods to avoid any future risks. It is very dangerous to export or import goods without a contract of sale, SMEs should be serious on the matter otherwise they will continue to make losses and eventually close shop,” Mtasiwa said.

According to her, contract of sale help buyers or sellers to understand their role in any transaction.

“There are so many people in the country who export goods but are not aware of export procedures, as a stakeholder from TRA, I express my gratitude to the International Trade Centre (ITC) for conducting this workshop for the honey sector so that beekeepers can understand export and import procedures,” she said.

The training will help them benefit from what they produce, export and import. Apart from contract of sale, ITC has trained participants on required documents once they decide to venture in exporting or importing goods.

Mtasiwa said currently, 80 per cent of cross-border traders are women entrepreneurs, noting that stakeholders engaged in this sector have a role to train women on export procedures to help them benefit from their trade.

Meanwhile, ITC’s Consultant in Business Process Analysis, Namsifu Nyagabona, added that during the training, SMEs were taught on required documents when they need to export goods.

She said everybody keen to export or import should obtain certificate of origin from TCCIA, obtain export permit, land transport permit, radiation analysis certificate, and other important requirements such as customs declaration forms, TIN number, and phytosanitary.

Others include screen cargo for security, obtain letter of credit, obtain customs clearance, verifications and finalise air freight documents and other issues.

During the workshop, it was also acknowledged that high licences fees from government institutions affect entrepreneurs in operating their business more effectively.

Nyagabona said that they have also discovered that a majority of entrepreneurs trading honey and spices are not aware on how to use radioactivity analysis certificates for goods they want to export or import.

“I told them that everybody keen on exporting or importing honey or spices should visit Tanzania Atomic Energy Commission (TAEC) offices to obtain the certificate before the said food is exported out of the country or distributed for human and animal consumption,” she said.

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