Forwarders want TASAC to amend some regulations

By ABELA MSIKULA

FREIGHT forwarders have urged the up-coming Tanzania Shipping Agencies Corporation (TASAC) to amend some parts of its regulations which seem to contradict the already existing principles.

They were speaking in Dar es Salaam yesterday during the Maritime Sector Stakeholders meeting for collection of views on the TASAC Draft regulations, before it goes into full operations, soon. TASAC operations are results of demerging of Surface and Marine Transport Regulatory Authority (SUMATRA) in to two parts to separate marine transport services from the surface ones.
Tanzania Freight Forwarders Association (TAFFA)’ s Vice President Edward Urio said different penalty rates to whoever goes wrong with freight rules was one of TASAC regulations part to be rectified to avoid confusions in forwarding industry.
“As of now, freight forwarders do operate under the East Africa Customs Directorate which directs a $10,000 penalty for whoever goes opposite with the regulations. At the same time, this up-coming organ comes with a $20,000 penalty.
The simple translation is a wrong-doer must pay both penalties at a time, which is a huge burden. This is a small segment of areas we call for amendments,” he said. The Vice President said in other words, paying both penalties meant a forwarding agent would run bankrupt given that the current regulations directed issuance of 50m/- bond, by the one in need of the License Clearing Premium;
hence, reduction of $30,000 (penalties) at once was a serious challenge. Tanzania Cargo Consolidators Association (TACA)’s representative, Ms Hawa Ally complained on an increase in license fee, urging TASAC to consider that the Association was there to serve small traders whose business capitals were too limited.
She defended her views that, TACA used to collect small cargos (abroad) into one container wherein the owners do pay a flat rate transport charge. Changes in license fee by TASAC will definitely undermine small traders since the move will also force an increase in transport charges.
“We are not complaining on the formation of this new shipping agency but should stick on to our recommendations over proposed amendments so as to smoothen our business. We, and the new Agency are all focusing on rising of individuals’ and the nation’s economy at large,” she commented.
TASAC Acting Director General, Eng. Japhet Loisimaye dismissed stakeholders’ anxiety; saying the new Agency prioritized everyone’s opinions, for promoting effective management and operations of shipping services.
He further told participants that maintaining cargo safety and security, promoting and maintaining maritime environment; promoting efficiency, economy and reliability, fostering the development and expansion of the sector was all TASAC objectives.
“In order to implement Tanzania Shipping Agencies Act, 2017, it is necessary to develop the Agencies’ regulations, 2018. The Merchant Shipping Act, 2003 is conveniently implementable as it has its regulations to enable its enforcement, the Tanzania Shipping Agencies Act does not have any regulations. The essence of this meeting therefore, is to fill the gap by pursuing development of regulations for the Act,” he said.