Assessment of the Challenges Behind the Ineffective Customs Clearance of Goods at Sea Port

Shepa, Charles Msuka (2013) Assessment of the Challenges Behind the Ineffective Customs Clearance of Goods at Sea Port. Masters thesis, The Open University of Tanzania.

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Abstract

The study was about the Challenges behind Ineffective Customs Clearance of Goods at Sea Port a case study of Medical Stores Dar Es Salaam. Most of the drugs and medical supplies are procured by MSD from oversea suppliers through international tenders as per threshold set by PPA, 2004. All imported goods are subject to customs clearance at the port of entry in every destination country. Delay in customs clearing of goods causes to emerge and increase of demurrage costs and lack of essential drugs. Basing on the fact that the main objective of each organization is cost reduction and profit maximization, the situation at MSD contravened this fact, the researcher ought to assess the existing challenges in clearing process leading to the increasing of costs through such delays. The Research methodology concerned about data collection where the researcher was applying systematic approaches in data collection so as come up with the specific findings. The researcher used both qualitative and quantitative methods to find the challenges behind ineffective customs clearance activities of sea port consignments. The study used 33 respondents using purposive and convenience sampling techniques, and methods of data collection (primary data and secondary data) as tables were drawn by used special program known as SPSS. The findings revealed that, among major challenges come as the results of clearance procedures in Tanzania being too long, surrounded with corruption environment due to multiple documentation requirements, and the procedures are neither transparent enough nor documented. At MSD, it was revealed that there is small number of clearing staffs compared to the tasks and the long payment procedures were some source of the problems. Basing on the findings, it was recommended that, MSD should increase the number of clearing staffs and should consider using pre-payment procedures by depositing amount of money in advance to ease clearing process.

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