FAQ

Question: Can an EPZ enterprise bring in foreign workers?
Answer: Yes, the EPZ act states for the provision of business visa at the point of entry to key technical, management and training staff for a maximum of two months. The act also states for entitlement to an initial automatic immigrant quota of up to five persons during the start up period and thereafter any application for an extra person shall be submitted to the authority.

Question: Are skilled and productive workers available in Tanzania?
Answer: Yes, skilled and productive workers are available in Tanzania as the fruits from many universities, colleges and training and vocational institutions available in Tanzania.

Question: Can an investor convert a pre-built industrial premise in the Tanzanian customs territory into an export processing zone, for lease to investors?
Answer: Yes, where no EPZ facilities currently exist in that location. This pre-built industrial premise may either be a single factory (stand alone) EPZ or a multi-factory EPZ (industrial park). The latter is preferred because it can provide industrial space for other EPZ investors to occupy. The premises should conform to the requirements of the EPZ Act and the investor must apply for gazettement of the premises and obtain a developer licence. Each of the EPZ enterprises therein must also obtain an operator licence.

Question: Can an investor convert an existing manufacturing company?
Answer: No, an investment should be a new one.

Question: Can EPZ companies sell their products to Tanzania?
Answer: EPZ companies are given allowance to sell their products inside Tanzania up to and not exceeding 20% of their products.

Question: Do special labour laws apply to EPZ companies?
Answer: No, EPZ companies are subject to the same labour regulations as other companies in Tanzania. Thus EPZ workers enjoy the same rights and privileges as workers in the customs territory, including right to join unions.

Question: How does one obtain a licence to become an Export Processing Investor?
Answer: To obtain an EPZ license, the  interested investors should submit an  application request  with  accompanied by the following documents:
A copy of memorandum and articles of association or a copy of certificate of incorporation:
An export business plan indicating type of goods to be produced or processed, production volume, volume of exports, type of raw materials to be used, production process intended to be used, export plan etc
EPZ area where the business is intended to be carried on, supported by a lease agreement or title deed for privately owned stand alone infrastructure.
An Environmental Impact Assessment (EIA) report.

The EPZ Authority is committed to respond to all applications and issuing EPZ licenses to qualifying investors within 7 days.
 Question: What activities are eligible for EPZ incentives?
Answer: Activities eligible for licensing are those of:
Zone Developer (the party that builds a zone, provides premises for investors to occupy and manages those premises)
Zone Operator (the party that undertakes the export-oriented investment activities)
Zone Service Provider (the party that provides required services in the EPZ zones for daily running like power supply, water supply, meal providers, transport service and other variety of services in the EPZ zones)

Question: What exemptions are EPZ companies allowed as incentives?
Answer: Exemptions allowed to EPZ companies as incentives are as follows:
i) Exemption from corporate tax for ten (10) years
ii) Exemption from payment of custom duty, VAT and other taxes on raw materials and goods of capital nature related to production in EPZs.
iii) Exemption from all taxes and levies imposed by Local Government Authorities on products produced in EPZs. iv)Exemption from VAT on utility and wharfage charges.
v) Exemption from withholding tax on rent, dividends and interests for 10 years. vi)Exemption from payment of customs duty, VAT, and any other tax payable in respect of importation of one administrative vehicle, ambulances, fire fighting equipment vehicles and up to two busses.
vii) Exemption from pre-shipment or destination inspection requirements
viii) Exemption from any conditional transferability of profits, dividends and loyalties.
ix) Exemption from out-site customs inspection outside the Export Processing Zones,

Question: Where can EPZ enterprises be located?
Answer: EPZ enterprises must be situated in one of the earmarked export processing zones. These are specific areas that for the purposes of implementing the operating provision and incentives of the export processing zones scheme are treated as being outside the customs territory for VAT, customs tariff and exchange control purposes.
There are currently 3 available EPZ industrial sites which include The Millennium Business Park at Ubungo(Dar es Salaam), The Hifadhi EPZ at Ubungo(Dar es Salaam) and Vector Health EPZ at Kisongo(Arusha). Furthermore, there is one special economic zone (SEZ) called Benjamin William Mkapa SEZ. All those four industrial sites are available for lease. Besides, there are other sites in 13 regions which have been set aside for EPZ development. Each site is approx. 2000 hectares. Investors are Invited to develop satellite towns, factory buildings and warehouses for lease or own operation. Development can be done privately or under Public Private Partnership. Various forms of partnership accepted (BOT, BOOT, and Concession Agreement etc).

 Question: Are members of my family allowed to work?
Answer: Yes, they can apply for work permit if they are on residence visas, then they have to follow the Tanzanian Rules and Regulations

Question: Are there any obligations to have Tanzanian shareholders in an EPZ?
Answer: No, an EPZ firm may be 100% foreign owned, 100% Tanzanian owned or any combination of foreign/Tanzanian ownership.

Question: Are there any restrictions in bringing my family?
Answer: No, provided you follow the immigration procedures.

Question: Are there any restrictions to importing and exporting of goods?
Answer: No, there are no restrictions to importing and exporting goods as long as it is in accordance with your licence. No duties are imposed on goods imported and/ or exported from within the EPZ.

Question: Can chemical dye be imported?
Answer: Natural and synthetic dyes can be imported. However, we do not allow importing chemical compounds and dyes that contain Radioactive substances.

Question: Can I convert my driving licence?
Answer: Yes. The United Republic of Tanzania recognizes driving licences from certain countries. A local driving licence can be issued against this upon completing certain formalities.

Question: Can I transfer my money outside the country freely?
Answer: The authorities impose no restrictions on the movement of capital and profits through any authorized bank in free convertible currency.

Question: Can I travel outside the country without any restrictions ?
Answer: Yes, provided you have a valid visa.

Question: Can I utilize my EPZ licence to operate outside Tanzania?
Answer: No, the EPZ licence allows you to operate only in Tanzania. However, finished products are allowed to be sold outside Tanzania.

Question: Can we licence for pharmaceutical plants?
Answer: Yes, according to the environment & health standards.

Question: Do banks in Tanzania allow companies or individuals to open bank accounts in the US Dollar?
Answer: Yes, as well as other major international currencies.