Doing Business in Tanzania 2016 Country Commercial Guide for U.S. Companies INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2016. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES. Contents Doing Business in Tanzania ........................................................................................................................................ 4 Market Overview ................................................................................................................................................... 4 Market Challenges ................................................................................................................................................. 5 Market Opportunities ............................................................................................................................................ 6 Market Entry Strategy ............................................................................................................................................ 6 Political and Economic Environment ......................................................................................................................... 6 Political Environment ............................................................................................................................................. 7 Selling U.S. Products and Services ............................................................................................................................. 7 Using an Agent to Sell US Products and Services ................................................................................................... 7 Establishing an Office ............................................................................................................................................. 7 Direct Marketing .................................................................................................................................................... 8 Joint Ventures/Licensing ........................................................................................................................................ 8 Selling to the Government ..................................................................................................................................... 8 Distribution & Sales Channels ................................................................................................................................ 8 Selling Factors and Techniques .............................................................................................................................. 9 eCommerce ............................................................................................................................................................ 9 Trade Promotion and Advertising ........................................................................................................................ 10 Pricing................................................................................................................................................................... 11 Sales Service/Customer Support .......................................................................................................................... 11 Due Diligence ....................................................................................................................................................... 11 Local Professional Services .................................................................................................................................. 12 Web Resources .................................................................................................................................................... 12 Trade Regulations, Customs and Standards ............................................................................................................ 12 Import Tariffs ....................................................................................................................................................... 12 Trade Barriers....................................................................................................................................................... 13 Import Requirements and Documentation ......................................................................................................... 13 U.S. Export Controls ............................................................................................................................................. 13 Temporary Entry .................................................................................................................................................. 13 Labeling/Marking Requirements ......................................................................................................................... 14 Prohibited & Restricted Imports .......................................................................................................................... 14 Customs Regulations ............................................................................................................................................ 14 Trade Standards ................................................................................................................................................... 14 Trade Agreements................................................................................................................................................ 16 Web Resources .................................................................................................................................................... 16 Investment Climate Statement ................................................................................................................................ 17 Executive Summary .............................................................................................................................................. 17 Openness to and Restriction on Foreign Investment .......................................................................................... 18 Conversion and Transfer Policies ......................................................................................................................... 24 Expropriation and Compensation ........................................................................................................................ 24 Dispute Settlement .............................................................................................................................................. 24 Performance Requirements and Investment Incentives ..................................................................................... 27 Right to Private Ownership and Establishment ................................................................................................... 29 Protection of Property Rights .............................................................................................................................. 30 Transparency of the Regulatory System .............................................................................................................. 32 Efficient Capital Markets and Portfolio Investment ............................................................................................ 33 Competition from State-Owned Enterprises ....................................................................................................... 34 Responsible Business Conduct ............................................................................................................................. 35 Political Violence .................................................................................................................................................. 36 Corruption ............................................................................................................................................................ 37 Bilateral Investment Agreements ........................................................................................................................ 38 OPIC and Other Investment Insurance Programs ................................................................................................ 39 Labor .................................................................................................................................................................... 39 Foreign Trade Zones/Free Ports/Trade Facilitation ............................................................................................. 40 Foreign Direct Investment and Foreign Portfolio Investment Statistics .............................................................. 41 Contact for More Information on the Investment Climate Statement ............................................................... 43 Trade and Project Financing .................................................................................................................................... 44 Methods of Payment ........................................................................................................................................... 44 Banking Systems .................................................................................................................................................. 44 Foreign Exchange Controls..................................................................................................................................