THE UNITED REPUBLIC OF TANZANIA FZ Novenner, 1967 ‘An Act to impose transfer taxes on certain manufactured goods of Kenyan or Ugandan origin which are transferred to the United Republic and to provide for the Management and Administration of transfer taxes and for other matters related thereto or connected therewith Ust Decenser, 1967] ENACTED by the Parliament of the United Republic of Tanzania. 1.—(1) This Act may be cited as the Transfer Tax Act, 1967 and Shc te, shall be read and construed with the East African Customs and Transfer somme= Tax Management Act, 1952. ipgigtion (2) This Act shall come into operation on the Ist December, 1967.54.45) @) This Act shall extend to Zanzibar as well as to Tanganyika. No.2 2 In this Act, unless the context otherwise requires— Incerpretton “foreign country” means any country other than one of the Partner tates; “Management Act” means the East Aftican Customs and Transfer TaxBAI.C, Management Act, 1952; “manufactured goods” means the goods defined or otherwise listed in ‘Annex IV to the Treaty, as from time to time amended or added to: “master” includes any person for the time being having or taking charge ‘or command of any aircraft or vessel; inister” means the Minister for the time being responsible for finance; “Partner States” means the United Republic, the Sovereign State of ‘Uganda and the Republic of Kenya; “proper officer” means any officer in the service of the East African ‘Customs and Excise Department, or for the time being performing duties in relation to the Customs, whose right or duty it is to require the performance of, of to perform, the act referred to; 1 soirition otienster No. 44 Transfer Tax Act’ 1967 1967 “transfer” means the movement of goods from one Partner State to ‘another either difectly or indirectly but shall not include goods in transit, goods. for transhipment or goods for warehousing in a bonded warehouse, “transfer tax” includes suspefided transfer tax; “Treaty” means the ‘Treaty for East, Aftican Co-operation, as_from time’ to tie modified, 9 copy of which Treaty is set out in the ‘Schedule td the ‘Treaty for East African Co-operation (Implementa- tion) Act? 1967. 1) There shall .be |, levied and collected in respect of she iptntacuyod goods spevied'in the second comin of te Fit Schedule to ‘this Act which have their origin in the Partner States specified in the third column of that Schedule and are. transferred 10 the United Republic, transfer taxes at the rates 5 in the fourth column of the said Schedule and, subject to su section 5, suspended transfer taxes column of the said Schedule, (2) A transfer tax, other than a suspended transfer tax, shall. be effective for such period as is set out in the sixth column of the First Schedule to this Act. (3) All transfer taxes shall be levied, collected and paid in accordance vith the provisions ofthis Ac, read and construed withthe Management. (4) Notwithstanding the provisions of subsection (1), where the total amount of transfer tax computed with reference to any one transfer tax document includes any fraction of a shilling; that fraction shall be disregarded and the amount of transfer tax charged, levied, collected and paid shall be determined accordingly. 4, Where any manufactured goods are liable to. transfer tax, the tax shall constitute a debt due to the United Republic by the owner of the goods and may, without prejudice to any other means of recovery, be recovered by suit by the Commissioner-General of Customs and Excise, 5.—(1) The Minister may, by order published in the Gazette, add to, amend, repeal or replace the First Schedule to this Act. (@) No tax referred to in the First Schedule as a suspended transfer tax shall be charged, levied and collected until it, has been brought into operation by order of the Minister published in the Gazette and every such order shall vet out the period for which the tx is to be effective. @) Every order made under subsection (1) of subsection (2) shall ‘be submitted for the approval, to be signified by resolution, of the National Assembly within fifteen days of the order being made or, if te Neonat Assembly is not meeting, within fifteen days after it next meets,No. 44 Transfer Tax Act 1967 1967 3 (4) If any such order is not approved by the National Assembly within the time specified in subsection (3) or is disapproved by the National Assembly the order shall thereupon either expire forthwith or cease to have effect, as the case may be, but without prejudice to anything previously done or suffered to be, done under the order. () Notwithstanding subsection (3), where in compliance with en order under subsection (1) which is subsequently not approved or is disapproved by the National Assembly any person who has paid transfer tax prior to the coming into force of such order or has paid transfer tax at an increased rate as a result of such order, there shall be paid to such person an appropriate refund having ‘regard {o the law in force immediately prior to the coming into force of the pede snd hae in cmplane wi an on ay foes ty pwn hhas paid transfer tax at @ reduced rate or has not been obliged to pa transfer tax a8 a result of such order, such person shall be lable 0 make good the deficiency by paying the difference between the amount of transfer tax already paid by hitn and the amount which he would Rave bee ale to poy ed te ode not come int fore 6.—(1) For the purposes of this Act, manufactured goods shall be orisinot accepted as originating in the Republic of Kenya or the Sovereign manufecured State of Uganda where— te @) they have been wholly produced in those States; or (©) they have been produced in those States and the value of any ‘materials imported from a foreign country or of undetermined origin which have been used at any stage of the production of the goods does not exceed seventy per cent of the ex-factory value of the goods. (2) The rules contained in the Second Schedule to this Act shall apply to the determination of the origin of manufactured goods for the Purposes of this Act. 7. Where any manufactured goods are liable to transfer tax ad vatue of valorem, the value of such goods shall be taken to be that laid down Bods fo by the ‘Thied Schedule to this Act and transfer tax sball bo paid on al that va Provided that in the case of manufactured goods transferred under a contract of sale and entered for the payment of transfer tax, tax shall bbe deemed to have been paid on that Value if, before the goods are released after transfer, tax is tendered and accepted on a declared value based on the contract price and for the purposes of this proviso— (@) the declared value of any goods is their value as declared by or con behalf of the buyer in the United Republic in making entry of the goods for transfer tax; (2 sas val bal bs doom tobe Bape on the carat price it i represeats that properly adjusted to take account Gteumstances diferentating the contract from such contact of sale as is contemplated by the Third Schedule to this Act; andNo. 44 Transfer Tax Act 1967 1967 ‘Time of satry rate of uty © the rate of exchange to be used for determining the equivalent in the currency of the United Republic of any other currency shall be the current selling price for sight drafts in the United Republic as last notified before the time when the goods are entered for the payment of transfer tax: Provided further that, where under Article 15 of the Treaty, the Partner State in which the goods are manufactured is liable to pay to ‘the United Republic the full amount of customs duty collected in respect of goods imported and used in the manufacture of the manu- factured goods, the amount of such duty paid over shall be deducted from the value provided for by this section: Provided further that, where under Article 18 of the Treaty the Partner State in which the goods are manufactured is liable to pay to the United Republic the full amount of excise duty collected in respect ‘of goods manufactured or processed or used in the manufacture of ‘manufactured the amount of such duty paid over shall be deducted from the vaiue provided for by ths section. 8—(1) All manufactured goods which are subject to a transfer tax under this Act shall be entered by the owners in such manner and within such period after the transfer of such goods to the United Republic as may be prescribed under the Management Act ot such further period as may be allowed by the proper offer forthe payment ‘transfer tax. @) Where an entry is delivered to the proper officer, the owner shall fumish therewith full particulars. together with the transfer form, invoice and all other evidence in support of the entry. @) Entries may be delivered to the proper officer for checking before the arrival at the port or other place of discharge of the ves) OF unloading of the aircraft or vehicle, in which the goods are transferred to the United Republic; and in any such case the proper officer may in his discretion permit any goods to be entered before the arrival of the ‘vessel aircraft or vehicle, 9—{(1) Subject to subsection (2), transfer tax shall be paid at the rate in force at the time when the goods liable to such tax are entered for the payment of transfer tax: Provided that, in the case of manufactured goods transferred overland, the time of entry of such goods for the payment of transfer tax shali te deemed to-be tho time wie the transfer las paid (2) Where manufactured goods are entered for the payment of transfer tax before the arrival at the port of discharge of the aircraft for vessel in which such goods are transferred, the transfer tax upon Such goods shall be paid at the rate in fore at the time of arival of the aircraft or vessel at the port of discharge.No. 44 Transfer Tax Act 1967 1967 10—(1) Where any manufactured goods can reasonably be classified Mamata. under two or more names, classes, or descriptions, with the result that {jet $0045 there isa difference in the liability to transfer tx or in the transfer tanster wx {ax to which such goods are liable, then such goods shall be classified ishest lunder the name, class or description which results in such goods being ‘spiiable Hable to: cranser tax, or being Hable to the higher or highest rate ol transfer tax applicable, as the case may be. (2) In determining for the purposes of subsection (1) which is the higher or highest rate of transfer tax applicable, regard shall be had to a suspended transfer tax which has been brought into operation. 11. Where any transfer tax or drawback of transfer tax is imposed Trenser or allowed under any law according to any specified weight, measure, U04.. strength or value, then, unless specific provision is made to the contrary to appl in any law, such transfer tax or drawback of transfer tax shall be Bgpotion deemed to apply in the same proportion to any greater or less weight," ‘measure, strength or value, as the case may be. 12, Where any goods are composed in part of an article which is Tranter liable to transfer tax, such goods shall be liable to transfer tax as such article formed the whole of the composition of such go Where any such goods are composed, either entirely or in two or more articles liable to transfer'tax, such goods st i to transfer tax as if the article forming part and liable to the higher for highest rate of tax formed the whole of the composition of such ‘goods: Provided that— (@) such goods shall not be liable to transfer tax as if any article forming part thereof, were the whole of the composition of such ‘goods where the Commissioner-General, in his discretion, is Satisfied that it would be inequitable or impractical to apply this section; (&) in no case shall the transfer tax to which such goods are liable under this section be less than that to which they would be liable if this section were disregarded. 13.—(1) Where goods are transferred to the United Republic in an Transer ‘unassembled condition then, notwithstanding that the parts thereof i 20 may be separately liable to, or be free from, transfer tax, such goods su" hall be liable to the transfer tax to which they would be, or be free from transfer tax, as the case may be, as if they had been transferred to the United Republic in a fully assembled condition: Provided that where the parts of any such article are separately transferred to the United Republic, the Commissioner-General may in his discretion apply this section to any such parts. @ Subject to this Act, integral parts of an article liable to transfer {ax ad valorem ot not liable to transfer tax and transferred to the Inited Republic as spare parts or for ent_purposes shall, unless it is otherwise specifically provided, be liable to the same rate of transfer tax or be not liable to transfer tax, as the case may be, as the article itself. E e &6 No. 44 Transfer Tax Act 1967 1967 Refund of 14-—(1) Subject to subsection (2), the Commissioner-General may grant a refund of any transfer tax which has been paid in error. @) No refund of any transfer tax shall be granted unless, the claimant presents his claim within twelve months of the date of the payment of the transfer tax. Drawback of — 15,—(1) Subject to this section, drawback of transfer tax may, on ‘ansfer'®x exportation or the performance of such conditions as may’ be prescribed, be allowed in respect of such manufactured goods, in such amount, and on such conditions, as the Minister may by regulations prescribe. (2) Where the owner of any goods cla drawback in respect thereof, then, as a con: drawback, he shall— {@) enter such goods in the form and in the manner prescribed under the Management Act and produce such goods for examina- tion by the pr ‘before the exportation thereof or the Fedorhance Bf conditions on which deawnce i loweds and (b) make and subscribe a declaration on the form prescribed under ‘the Management Act to the effect that the conditions under which drawback may be allowed have been fulfilled and, in the case ‘of goods exported or put on board any aircraft or vessel for use as stores— © that such goods have actually been exported or put on board for use a8 stores, as the case may be; and Gi) that such goods have not been recimported and are not intended to be re-imported into the United Republic; and Gi) that such owner at the time of entry of such goods for drawback was, and continues to be, entitled to drawback; and (©) present his claim for drawback within a period of twelve months from the date of the exportation of goods or the performance of the conditions on which drawback may be allowed. @) Drawback shall not be allowed in respect of any goods where— (@) the value of such goods for transfer tax is Jess than the amount of the drawback which may be otherwise allowed; (&) the transfer tax thereon was less than fifty shillings. @) Where the officer is satisfied that any is under drawback, ater belg duly put on board any alreral, ves os vebiels for exportation or for use as stores— (@) have been destroyed by accident on board such aircraft, veel or proposes to claim, mn to the grant of such © have been ranteraly damaged on board such aircraft, vessel or vehicle and that such goods have, with the permission of the Propet fcr, been discharged at ny port or place within the inited Republic and abandoned to the Customs, then drawback may be allowed in respect of such goods as if such goods had actually been exported or used as stores.No, 44 Transjer Tax Act 1967 1967 i 16.—(1) Where he is satisfied that it is in the public interest to do Remision of so, the Minister may, by order published in the Gazette, remit, in “wet whole or in part, any transfer tax payable by any person on any Ianufactured goods transfered to the United Republic. (2) 4 remission order made, wer subsection (2) may ape ete to particular transfers or generally in respect of red by Specified persons or persons of a specified @) Every order made under subsection (1) shall be laid before the National Assembly. 17, The Minister may make regulations for carrying the purposes and over to provisions of this Act into effect. a ons ‘Gestion 3) FIRST SCHEDULE Teavsren Taxes 1 2 a 4 5 6 BIN. Description Partner Rateof —Ratoof Period of, Tem cofmamfac State of transfer tax suspended effect of No. tured goods origin twansfer wx tansfer tax ‘Section 6) SECOND SCHEDULE [Ruwss ron Tus Derexisarion or Tae Onion of MaxurAcrurep Goons Interpretation Je) In these Rales— imateras” ices products, pats and components used in the production of goods; I" and “a proces of production” inchude the application of any operation or ose. with the exception Of ton oF Prose te ‘one ‘roses, with the ception Of any operation or Droses which conte only of (@) packing, wherever the packing materials have been produced; (©) splitting up ito tots; (©) sorting or trading; @)Bneray, foc, plant, machinery and tools used in shi barael Ste' ables used the ulstenence otsNo. 44 Transfer Tax Act 1967 1967 Goods wholly produced in the Parner States 2, For the of subsection he following are among. the oducts whi Sl be Tegard au wholy produced. tthe Ptr Salee— “@) mineral products extracted from the ground within the Partner Sats: ©) vesstablo products harvested wid the Partner States, (© live animals born and raised within the Partner Sates; (0 ele produced ‘within the Partner Stes excel from one or both of the & srl wikia ozs 4 0 a Tilers "containing no cloment imported from qutside the Partner Stats Sr of undetermined Og. os Aprliaion of percentage criterion 3, om, the purposes of paragraph (6) of subsection (1) of secon 6 the following rules Sat apne () any materials which meet the condition of subsection (© son's be reget se ca er ‘rom outsae Unit of Quaiietion 4) Bach rl in» coninent sal be cometary cass 20 within mibpararaph () of this parasraph, goods shal be tated One See oe (2 An ‘ousenbled or dimenbed arte which imported in more than, one colleen because aot fell for tary eto retin 1 ate SPEPSRBC'ceigament sya the option of he tanto, be Weied se Ge tse.No. 44 Transfer Tax Act 1967 1967 (2 Ay scum te, al snr fh od a py be nt ok Behe Re ehh SUS NS RRL 2S is Treatment of mixtures Ga) In the case of mixtures, not being, groups, sets or susemblies of separable faves dealt with under rile 4, 8 Partner Stats may refuse to accept af orilnaling in the Partner States any product gesultng from the mining together of goods which Would |ghahly gS oninating In the Partnr States, with goods which, would not so, ally, the charictere of the product as a whole ate not escatialy diferent from te characterises of tho goods wich have Been Mixed (©) In the case of particular products where itis recognized by the Common Market cofinal 0 'bedenrale to perl ane Se ind Sees henge tees ‘uly suck product sll baceped a oad th Pate? Sates m Sexes of Sick part thereat as may be shown to correspand to, iy of goods ov jn'tht artnet Sites ‘ued inthe mining bj to sich Conditions af ray be agreed by the Common Market Coutl, Certfcates of origin 1. The wanseror of any goods from one Parter State to another Partner Site shal, 4g Toque By eo or by ceaporourise aneny, iovide gestae ath of suth foods, detemined in accordance with the piovions of subsection () of seco Slag of th’ Seite led or atcrvse subhtened bythe manufac of ich (Geation 7) ‘THIRD SCHEDULE pane aaa fl Mme fa ae ola Dts dat aire ‘€ cransfor tothe Univ epublica hope norte het tn 3 aplasia ri oe ye es ee eae ees a ot tes Stet os Sat tr ge oom a ae ct © ay mee Leen WO, era conn era hs crane (© that the buyer will bear any transfer tax chargeable in the United Republi 2. A sale in the open market between buyer and eller independent of each other presupposee— (@) thatthe price isthe sole consideration; and (0 tha art of the of the subsenuent retale, we or dspomt of tho foods wl acarue elber desty or inditely tothe "st ‘associated with him. af te se 3. Where the goods tobe valued— ‘a amufacured in acordanco with any patented laventon or are goods to (© Sic any renced dain has beed apd, M2 oe traaferred under forgn trade mak, or are transferred fr sale (wheter of (© i ar ator mutacin unde aTorigs vdesame i,m, ale dtined nn espn tg covers ‘right to use the patent, design or trade mark in respect tse woods,” Pre adNo, 44 Transfer Tax Act 1967 1967 4 For the purposes of pamgraph 3 ofthis Schedule, “ade mar incudes & sag and’ ecupad'a “oreign tude mah mena" a rade ath wed for Os ‘urpose of fndeain thn goods in Yellin to which ited re those of @ a prion by whom the gogds tobe valued have been grown, prod ORE Rete ce! tor fis aense dat Si elise ie’ ed (©) «. prtonsocted in bosnds th any sich pron a is refemed to in ae pafasraph “ay of tha parser (©) person to whom any such petton a is mentioned ia subparagraph (a) of © Pike pear ay ee SSolvil af te busin in wonteston wl ‘which te nde mask i tne ites al, ae pt er i sso See ee ees Soca LE CaS eee ae Passed in the National Assembly on the twenty-sixth day of October, 1967. Cierk’ tothe Sees lational Assembly “Prnted by Wie Goverament Printer, Dar ev Salam,