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Foreign Exchange Regulations, 1998

Government Notice 629 of 1998

Foreign Exchange Regulations, 1998
This is the latest version of this Government Notice.
Citation
Government Notice 629 of 1998
Primary work
Foreign Exchange Act
Date
31 July 2002
Language
English
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Tanzania
Foreign Exchange Act

Foreign Exchange Regulations, 1998

Government Notice 629 of 1998

  • Published in Tanzania Government Gazette
  • Commenced on 16 October 1998
  • [This is the version of this document at 31 July 2002.]
  • [Note: This legislation was revised and consolidated as at 31 July 2002 and 30 November 2019 by the Attorney General's Office, in compliance with the Laws Revision Act No. 7 of 1994, the Revised Laws and Annual Revision Act (Chapter 356 (R.L.)), and the Interpretation of Laws and General Clauses Act No. 30 of 1972. All subsequent amendments have been researched and applied by Laws.Africa for TANZLII.]
[Sections 6 and 7(1)]

Part I – Preliminary provisions (regs 1-2)

1. Citation

These Regulations may be cited as the Foreign Exchange Regulations.

2. Interpretation

In these Regulations, unless the context otherwise requires—"the Act" means the Foreign Exchange Act1;1Cap. 271"bearer certificate" means certificate for title to securities the delivery of which, with or without endorsement, the title to the securities is transferable;"Bureau de Change" means a business enterprise licenced by the Bank to carry on the business of buying and selling foreign currency as established under Section 5(a) of the Foreign Exchange Act2;2Cap. 271"certificate of title of securities" means any document of title whereby person recognises the title of another to securities issued or to be issued by the first mentioned person and, in the case of any such document with coupons, whether attached or on separate coupon sheet includes any coupons which have not been detached;"coupon" means a coupon representing dividends or interest on a security;"currency of Tanzania" means currency issued in terms of the Bank of Tanzania Act3;3Cap. 197"debt conversion" means debt conversion as administered by the Bank;"foreign currency account" means any account credited with foreign currency only, maintained with a bank which is an authorised dealer;"goods" means all kinds of movable property including animals;"nominee" means a person who is not entitled to exercise any rights in relation to any security, coupon or policy of assurance except in accordance with instructions given by some other person;"note" includes part of a note;"order" means an order made by the Governor under section 7 of the Foreign Exchange Act4;4Cap. 271"policy of assurance" means any policy securing the payment of a capital sum or annuity on the occurrence of a specified event which is certain to happen and includes—(a)any policy by which the payment of money is assured on death, except death by accident only, or the happening of any contingency dependent on human life; and(b)any policy securing the payment of an immediate annuity,and the reference in this definition to the occurrence of a specified event which is certain to happen shall include the occurrence, which is certain to happen, or one of the specified events, none of which by itself is certain to happen;"unit" means, in relation to a unit trust scheme, a right or interest, whether described as a unit or a sub-unit or otherwise, which may be acquired under the scheme;"unit trust scheme" means any arrangement made for the purpose, or having the effect, of providing for persons having funds available for investment, facilities for the participation by them as beneficiaries under a trust, in profits or income arising from the acquisition, holding, management or disposal of securities or any property whatsoever.

Part II – Foreign currency and gold (regs 3-7)

3. Dealing in foreign currency

(1)Any person whether a resident or a non resident of Tanzania may within Tanzania—
(a)hold any amount of foreign currency;
(b)sell any amount of foreign currency to an authorised dealer or a Bureau de Change;
(c)open and maintain a foreign currency account with a bank which is an authorised dealer.
(2)Subject to such direction as may be issued by the Bank any person who is a resident of Tanzania travelling outside Tanzania may for the purpose of general travel and upon production of documentary proof of being a resident purchase from a Bureau de Change or a Commercial Banks foreign currency in any amount.
(3)Subject to such directions as may be issued by the Bank, any person who is a resident of Tanzania may for purposes other than general travel—
(a)remit through commercial banks such amount of foreign currency as shall be prescribed by the Bank from time to time for specified purposes;
(b)import into or export from Tanzania any amount of currencies of contiguous countries.
(4)Subregulation 3(b) shall apply to residents of countries contiguous to Tanzania for purposes of facilitating border trade.
(5)Any person maintaining a Foreign Currency Account may at any time and without any restrictions, draw any amount of foreign currency for the purpose of making payment within or outside Tanzania.

4. Declaration of foreign currency

Subject to such directions as may be issued by the Bank any person whether a resident or a non-resident of Tanzania shall not upon entering Tanzania be required to declare any foreign currency in his possession:Provided that any non-resident entering Tanzania and intending to leave Tanzania with any foreign currency exceeding the equivalent of five thousand United States dollars shall declare to the Customs authorities the amount of foreign currency in his possession at the point of entering Tanzania.

5. Dealing in gold

Except with the permission of the governor, no person other than the person so authorised shall buy, borrow, sell, lend, hold or otherwise deal in gold coins or gold bullion.

6. Dealing in raw gold

Any person may within Tanzania sell, or hold with intent to sell to an authorised dealer, raw gold.

7. Duty to collect certain debts

(1)Except with the permission of the Governor, no person resident in Tanzania who has a right, whether present or future and whether vested or contingent, to receive foreign currency, or to receive a payment in the currency or to receive a payment in the currency of Tanzania, from a person resident outside Tanzania shall, do or refrain from doing, any act with intent to secure—
(a)that receipt by such person in Tanzanian of the whole or part of such foreign currency or, as the case may be, of such payment in the currency of Tanzania is delayed; or
(b)that such foreign currency or payment ceases in whole or in part, to be receivable by him in Tanzania.
(2)Any person resident in Tanzanian who has a right to receive any foreign currency, from a person resident outside Tanzania, shall comply with any direction given by the Governor to ensure the receipt by such person within a reasonable period of time, of such foreign currency or such payment.

Part III – Payments (reg 8)

8. Payment in Tanzania

Except with the permission of the Governor, no person shall—
(a)make any payment in Tanzanian currency to or for the credit of a person resident outside Tanzania; or
(b)make any payment in Tanzanian currency to or for the credit of a person resident in Tanzania by order or on behalf of a person resident outside Tanzania; or
(c)place any sum in Tanzania currency to the credit of any person resident outside Tanzania:
Provided that where a person resident outside Tanzania has paid a sum in or towards the satisfaction of a debt owed by that person, paragraph (c) shall not prohibit the acknowledgement or recording of the payment in Tanzanian currency.

Part IV – Securities (reg 9)

9. Acquisition, sale or transfer of securities

(1)Any person may acquire, sell or transfer any security or coupon within Tanzania subject to the provisions of the Tanzania Investment Act5 and the Companies Act6 in Mainland Tanzania or any relevant law applicable in Tanzania Zanzibar, provided that the acquisition of such security or coupon by a non-resident shall be effected in foreign currency.5Cap. 386Cap. 212
(2)Any Tanzania resident may acquire, sell or transfer to any person within or outside Tanzania, any security or coupon on which capital moneys, dividends or interest are payable or expressed to be payable in foreign currency or in respect of which the holder has an option to require payment of any capital moneys, dividends or interests in foreign currency:Provided that the security or coupon to be sold or transferred outside Tanzania on which capital moneys, dividends or interest are payable or expressed to be payable in foreign currency have been funded exclusively by externally acquired funds and the acquisition, sale or transfer shall be notified to the Bank for statistical purposes.

Part V – Import and export (regs 10-17)

10. Export of currency notes and gold

Except with the permission of the Governor no person shall export or cause to be exported from Tanzania—
(a)any notes or coins which are or have been at any time legal tender in Tanzania; or
(b)any gold.

11. Time of exportation of goods

(1)With the, exception of goods exported from Tanzania by post, the time of exportation shall be deemed to be the time—
(a)when a declaration is made to an authorised officer in terms of customs regulations; or
(b)when a bill of lading, airway bill, consignment note or any other relevant document is delivered to an authorised customs officer.
(2)Where goods are exported from Tanzania by post, the time of exportation shall be the time when the relevant documents are delivered to an authorised Customs Officer.

12. Import of gold currency notes or coins

Any person whether a resident or a non-resident of Tanzania may import any amount of gold, raw gold or any foreign currency whether in the form of currency notes, coins, travellers' cheques, bank drafts or in any such other form.

13. Payment for exports

(1)Export of goods of any class or description outside Tanzania, shall only be made after the Bank is satisfied that—
(a)payment for the goods have been made to a bank account in Tanzania in such manner as the Bank may approve in relation to the goods of that class or description, or that such payment will be made within such time as the Bank shall specify; or
(b)the amount of the payment that has been made or is to be made is such as to represent a fair price for the goods.
(2)For the purposes of this regulation "export" does not include the taking out of anything from Tanzania by any person travelling to any destination outside Tanzania which in the opinion of the Bank such person may reasonably require for personal use.
(3)The Governor may be writing under his hand, delegate to a public officer all or any of the functions of the Bank under this regulation subject to such limitations as the Governor may specify.
(4)If payment for any goods exported from Tanzania is not made within the period of time within which it ought to be made under subregulation (1) of this regulation, the Governor may give such directions to any person as he may deem expedient for the purpose of obtaining or expediting the receipt of the payment in question.
(5)For the purpose of paragraph (a) of subregulation (1) of this regulation, payment for goods of any class or description shall be made in foreign currency or such other mode as shall be approved by the Bank.

14. Withholding payment for exports

(1)No person resident in Tanzania shall do any act which involves or is in association with or is preparatory to, delay or the withholding of any payment by a person resident outside Tanzania to a bank which is an authorised dealer, which payment is due in respect of the exportation of goods for a period exceeding the period specified by the Bank from time to time.
(2)No authorised dealer shall—
(a)aid, abet or do any act which involves or is in association with or is preparatory to the contravention of or contravenes any provisions of these regulations; or
(b)delay or withhold collection of payments for exports.

15. Provisions relating to export documents

The documents of title to the goods exported outside Tanzania shall be made to the order of an authorised dealer who shall be assigned the right to receive payment and the documents shall be deposited with the authorised dealer who is a party to the declaration made to the commissioner of Customs and Excise and is entitled to receive foreign currency on behalf of the person exporting the goods.

16. Payments for imports

Notwithstanding any law to the contrary, it shall be a condition for the importation of goods into Tanzania that—
(a)the price paid or to be paid for the goods by the importer as indicated in the relevant import document shall represent a fair and reasonable return for the goods and shall be the best price available in the market taking into account the quality and quantity of the goods in the country of origin; and
(b)the quality of the goods corresponds with the description indicated in the relevant import document and recognised international standards.

17. Written recourse to Governor

(1)Any person by whom any foreign currency has been remitted from Tanzania on the faith of an application stating an intention that any goods should be imported shall, if the goods are not so imported within six months of the date of such application or the Date of remittance of the currency, as the case may be, notify the Governor in writing of all the material particulars with respect to such goods, and such notification shall be made within twenty-one days immediately following the expiry of the six months.
(2)The Governor may be writing under his hand, delegate to a public officer his functions under this regulation.

Part V – General provisions (regs 18-27)

18. Transfer of policies of assurance

Any person may transfer into or from Tanzania any right to the sums assured by any policy of assurance acquired outside Tanzania provided that servicing of such assurance policy is realised by externally acquired funds

19. Settlement of property

Any person who owns immovable property in Tanzania may assign or transfer such property to beneficiaries abroad provided that the property was acquired through external resources subject to any laws in force in Tanzania.

20. Loans

Any institution authorised to lend, may lend any amount of money in Tanzania shillings or foreign currency or assign treasury bibs, or securities denominated in Tanzania shillings to any individual or body corporate resident in Tanzania whether the body corporate is foreign controlled or otherwise.

21. Blocked account

(1)Where under any provision of these Regulations the permission of the Governor is required for the making of any payment or the placing of any sum to the credit of any person resident outside Tanzania, the Governor may direct that the sum payable or to be paid or credited shall be paid or credited to a non-interest bearing blocked account.
(2)No sum standing to the credit or a non-interest bearing blocked account shall be dealt with except with the permission of the Governor.

22. Persons leaving Tanzania

(1)Where any person resident in Tanzania leaves the country the Governor may, before, at or after the time he leaves Tanzania direct that, for such period as may be specified in the direction, payments by him or on his behalf and to him or to his credit and transactions in or in relation to securities in which he is in any way concerned shall, whether or not he continues to be resident in Tanzania, be subject to such restrictions as may be specified in the direction.
(2)The Government may direct that all or any of the assets in Tanzania of a former resident of Tanzania are to be held to the order of or by a person specified by him and shall not be dealt with except with the permission of the Governor.

23. Determination of residence

The Governor may direct that for all or any purposes of these Regulations a person is to be treated as a resident or a non-resident Tanzania as may be specified in the direction.

24. Exemption

Any provision of these Regulations imposing any obligations or prohibition, shall have effect subject to such exemption as may be granted by the Governor and any such exemption may be either absolute or conditional, general or special.

25. General powers of Governor

(1)Any order, permission, consent or authority granted by the Governor under these Regulations shall be published in newspapers of general circulation in such a way as in the opinion of the Governor, may give to any person entitled to the benefit of such order, permission, consent or authority an adequate opportunity of getting to know of the same.
(2)Any order, direction, permission, consent or authority given by the Governor under provisions of the Act and these Regulations—
(a)may be either general or special; and
(b)may be revoked or varied by a subsequent direction, permission, consent, or authority; and
(c)shall be given to such person and in such manner as the Governor thinks appropriate and if so given shall be valid for all purposes.
(3)Notwithstanding paragraph (c) of subregulation (2) of this regulation a person shall not, by virtue of any direction given by the Governor under these Regulations not being a direction published in turns of section 26 of the Interpretation of Laws and General Clauses Act7 for Mainland Tanzania or the relevant law applicable in Tanzania Zanzibar be convicted of an offence under these Regulations, unless the direction was served on that person or that person knew or avoided getting to know of the giving thereof:7Cap. 1Provided that, where reasonable steps were taken for the purpose of bringing the purport of the direction to the notice of that person, it shall be for him to show that he neither knew nor avoided getting to know of the giving thereof.
(4)The Governor may, to such extent and subject to such restrictions and conditions as he deems fit, delegate or authorise the delegation of any or all of his powers under these Regulations to a bank officer or any other agency and reference in these Regulations to the Governor shall be construed accordingly.

26. Evidence and information

(1)The Governor may give to any person directions requiring such person, within such time and in such manner as may be specified in the directions, to furnish the Governor or to any person designated in the directions, any information in his possession or control which in the opinion of the Governor is required for the purposes of securing compliance with or detecting evasion of these Regulations.
(2)A person required to furnish information shall also produce such books of accounts or other documents in his possession or control as may be required for the said purpose by the Governor or by the person designated by the Governor.
(3)No person shall with intent to evade the provisions of these Regulations—
(a)destroy, mutilate, deface, secrete or remove any books of accounts or other documents; or
(b)obstruct any person in the exercise of any power conferred on him by virtue of these Regulations.

27. Revocation

[Revokes the Foreign Exchange Regulations, 1992.]

History of this document

31 July 2002 this version
Consolidation
16 October 1998
Commenced
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