Tanzania is among the leading producers of cashew nuts in Africa, contributing significantly to its agricultural exports. Key regions for cashew farming include Mtwara, Kilwa, and areas near Dar es Salaam.
The Cashewnut Board of Tanzania (CBT), established under the Cashewnut Industry Act No. 18 of 2009, regulates the industry. Its goal is to improve efficiency and meet stakeholder needs, driving national development.
This guide highlights the Cashewnut regulations in Tanzania and the steps for buying cashew nuts Tanzania and exporting cashew nuts in Tanzania.
The Regulatory Body
The Cashewnut Board of Tanzania (CBT) oversees the cashew nut industry. It replaced the Tanzania Cashewnut Marketing Board (TCMB) in 1984. It oversees the growth and regulation of the cashew nut sector.
The CBT includes:
- A chairman is appointed by the President.
- Representatives from large and small-scale processors, farmers, and the Ministry of Agriculture.
- Experts in cashew nut research and industry operations.
The CBT ensures compliance with Cashewnut compliance laws and promotes fair practices.
How to Obtain a Cashew Nut Buying License in Tanzania
To legally purchase cashew nuts in Tanzania, you must secure a buying license through the Agricultural Management Information System (ATMIS). Here’s a step-by-step guide:
- Registration on ATMIS:
Create an account and register as a buyer. - Bid Security Payment:
Pay the required Bid Security based on the quantity you plan to buy
50-100 tons: TZS 20,000,000
101-250 tons: TZS 50,000,000
251-500 tons: TZS 100,000,000
501-1,000 tons: TZS 300,000,000
1,001-3,000 tons: TZS 500,000,000
Over 3,000 tons: TZS
1,000,000,000
The Bid Security is refundable.
Participating in Cashew Nut Auctions
With a valid buying license, you can engage in CBT-organized auctions. You’ll receive a sales catalogue 12 hours before the auction. On auction day, submit your bid in person between 8:00 am and 4:00 pm. After 4:00 pm, bids are publicly opened, and the highest bidder is announced. The minimum bidding quantity is 50 tons, except for local processors.
Steps After Obtaining a Cashewnut Buying License
Once you have a buying license, follow these procedures to complete your purchase:
- Receive a sales catalogue via email 12 hours before the auction.
- Check the CBT website for auction details.
- Submit a bidding application to the Cooperative Union.
- Drop your bid in the tender box on auction day (8:00 am 4:00 pm).
- Wait for the bid result notification.
- Collect the sales invoice from the Cooperative Union.
- Pay the invoice and receive the warehouse receipt.
- Present the receipt and release warrant to the warehouse operator.
- Obtain the Cashewnut consignment and Produce Dispatch Note.
- Submit all documents to the Cooperative Union for final clearance.
Steps to Obtain an Export Permit for Raw Cashewnut
Exporting cashew nuts involves additional regulatory steps. Here’s what you need to know:
- Apply for an Export Permit:
Log in to the Production Management System (PMS) using credentials provided by CBT. - Submit Documentation:
Include the following in your application:
1. Application letter for an export permit.
2. Commercial invoice with importer and exporter details.
3. Booking confirmation for shipping. - Permit Issuance:
The export permit, valid for 10 days, is issued free of charge. - Choose your export port (Dar es Salaam or Mtwara).
Be aware of extra costs, including:
- Gunny bags fee: TZS 80.46 per kg
- Cashew development contribution: TZS 110 per kg
- Storage charges: TZS 38 per kg
- Export levy: USD 160 per metric ton or 15% of FOB value, whichever is higher
Conclusion
The process of buying and exporting cashew nuts in Tanzania requires adherence to strict regulatory guidelines. The process involves obtaining a buying license, participating in auctions, and securing an export permit. For smooth transactions, ensure all documents are accurate. For expert guidance on navigating these procedures, contact Ubora Landmark Limited at contact@uboralandmark.co.tz.
FAQs
To get a license, register on ATMIS, pay the refundable bid security, participate in the auction, and follow the post-auction steps for payment and consignment collection.
Apply for an export permit through the PMS, submit the required documents, and follow the port-specific procedures for shipping.
It is a refundable deposit paid based on the quantity of cashew nuts being purchased, ensuring financial commitment from bidders.
Yes, exporters can use Dar es Salaam or Mtwara ports, but there are slight differences in procedures.
You need an export application letter, a commercial invoice, and a booking confirmation.
Yes, reach out to Ubora Landmark Limited at contact@uboralandmark.co.tz for professional support.