Tanzania: Hide, Skin Smuggling Cripples Local Industries

SMUGGLING of hides and skins is denying the domestic investors the required raw materials for sustainable production of leather products.
Reliable sources have it that premium prices offered by some neighbouring countries have fueled the malpractice, creating acute shortage of raw materials for the local factories.
Leather Association of Tanzania (LAT) Executive Secretary Joram Wakari, speaking with the Daily News at the ongoing 37th Dar es Salaam International Trade Fair (DITF), said smuggling of the animal products to the neighbouring and Asian countries remains rampant.
Mr Wakari said even the government hike on export levies to about 90 per cent to discourage trading of raw hides and skins has only succeeded to increase revenue collections on the products to 70bn/- recorded last year.

Some Japanese and Chinese investors are reported to have expressed interest to invest in the leather sector but they remained worried over the availability of raw materials for the factories.
Available statistics show that between 30 and 40 per cent of the hides and skins is smuggled to Kenya and Uganda while another 40 per cent goes through the Dar es Salaam port.
"Instead of discouraging smuggling, the increased export levies have fueled the malpractice by few unfaithful businesspersons," he noted, adding that, "Others still pack hides and skins as transit cargo to evade inspection at custom checkpoints," He said even those who pass through the official way, they do not provide true export statistics to evade paying the required taxes.

Mr Wakari said only total ban from exports of hides and skins will help tame the illegal business which is plunging the nation into massive revenue losses. Tanzania was currently second from Ethiopia with large number of livestock after the division of Sudan into Sudan and South Sudan.
Statistics show that smuggling of raw hides and skins to neighbouring countries, cost the government about 5bn/- annually. It is estimated that at least 50,000 hides cross the border to neighbouring countries, monthly, denying the government about 427m/- in export levy.