THE SHIPPING AGENCY ACT, 2002

ARRANGEMENT OF SECTIONS

PART I

PRELIMINARY PROVISIONS

Section Title
1. Short title and commencement.
2. Interpretation.

PART II
SHIPPING AGENCY SERVICES

3. Services of a shipping agent.

PART III
ADMINISTRATION

4. Functions of the Divisional Director.

5. Functions and duties of Authority.
6. Exclusive rights.
PART IV
CAPITAL AND OTHER REQUIREMENTS FOR SHIPPING AGENTS

7. Qualifications for registration and licensing.

8. Capital requirements.
9. Margin of solvency.
10. Restriction on transfer of shares.

PART V
LICENSING PROCEDURES

11. Application of licence.

12. Licence not transferable.
13. Suspension or cancellation.

1
2 NO. 11 Shipping Agency 2002

14. Effect of suspension or cancellation of an order.

15. Communication to be deemed complete.
16. No compensation for loss.

PART VI
OFFENCES AND PENALTIES

17. Liability of body corporate.

18. Liability of employee or servant of shipping agent.
19. Offences and penalties.

PART VII
GENERAL PROVISIONS

20. Power to issue directions.

21. Power of entry and inspection.
22. Maintenance of records.
23. Regulations.
No. 11 Shipping Agency 2002 3
THE UNITED REPUBLIC OF TANZANIA

I ASSENT,

No. 13 OF 2002

27th May, 2002

An Act to provide for the regulation and control of the business of shipping
agency and for matters connected therewith

I I
ENACTED by the Parliament of the United Republic..
PRELIMINARY PROVISIONS

1. This Act may be cited as the Shipping Agency Act, 2002 and shall Short title
come into operation on such date as the Minister may, by notice in the and corn-
Gazette appoint. mence-
ment

Interpre-
2. In this Act unless the context otherwise requires: -
tation
''Authority'' means the Surface and Marine Transport Regulatory Au-'
thority;
"Divisional Director'' means the Divisional Director of the Authority re-
sponsible for shipping agency matters;
''Director General'' means the Director General of the Authority;
''licence'' means a licence to carry on business of shipping agency issued
under this Act;
''Minister'' means the Minister responsible for shipping matters;
''Ministry'' means the Ministry responsible for shipping agency
matters;
4 NO. 11 Shipping Agency 2002
"principal'' means a person for whom another person acts on his behalf as
an agent in the business of shipping agency;
''prescribed'' means prescribed by regulations made under this Act;
Act No.
12 of
"port services or facilities'' shall have the meaning assigned to them in the
1977 I Tanzania Harbours Authority Act, 1977;
''shipping agent'' means any person or company engaged in providing
shipping agency services on behalf of the principal.

PART II
SHIPPING AGENCY SERVICES

Services 3. The shipping agency services shall include but not limited to the
of a following-
shipping
agent,
(a) arrangements for the arrival or departure of ship;
(b) arrangements for the provision of port services through port opera-
tors, Customs and other Government or semi-governmental insti-
tutions, firms or private individuals;
(c) arrangements for cargo documentation and forwarding of cargo;
(d) arrangements for procuring and processing of documents and per-
forming activities required for dispatch of cargo;
(e) arrangements for the provision of services pertaining to crew mat-
ters; and
(f) arrangements for the provision of ship stores, supplies, ship repair-
ing and any other related services.

PART III
ADMINISTRATION

Functions 4. Functions of the Divisional Director in relation to shipping agency

of the matters, shall include-
Divi-
sional
Director (a) to provide assistance and advice to the Director General in the
regulation and control of the business of shipping agency;
(b) to advise the Director General in the performance of his functions
and duties under this Act;
No. 11 Shipping Agency 2002 5
(c) to advise the Director General on matters related to licensing and
for any other matter submitted to the Division by the Director
General or the Minister; and
(d) to advise the Director General on any measures to be taken against
any contravention made under this Act or regulations made under
this Act.

5-(1) Notwithstanding the functions set out under section 6 of the Functions
Surface and Marine Transport Regulatory Authority Act, 200 1, the addi- and
tional functions and duties of the Authority shall be- duties of
Authority
Act No. 9
(a) to licence and register shipping agents; of 2001
(b) to superintend the conduct of shipping agents;
(c) to formulate and enforce the standards required of the conduct of
the business of shipping agency;

A to afford guidance to shipping agents on-

(i) the standardisation of shipping agency contracts;
(ii) the amendment of the terms and conditions in shipping agency
contracts; which are obscure or are unfair to the shipping
agents; and
(iii) the simplification or clarification of terms and conditions in
shipping agency contracts.
(2) Before coming into operation of the Surface and Marine Transport
Regulatory Authority Act, 2001 or the Authority, the Minister shall as-
sume all functions and duties of the Authority relating to shipping agency
business under the Surface and Marine Transport Regulatory Authority
Act, 2001.

6. -(1) Every person who immediately before the commencement of Continu-

this Act, was a holder of a licence authorising him to carry on business of ation of
shipping agency is, upon payment of prescribed licence fees, authorised business
after
to continue carrying on such business for a period of six months from the operation
date of commencement of this Act. of the Act

(2) At any time within six months from the date of commencement of this
Act, any person carrying on business of shipping agency pursuant to
6 NO. 11 ShippingAgency 2002
subsection (1), may apply for, and upon satisfying the requirements of
sections 7 and I I be entitled to the grant of a licence under this Act.

(3) Any person carrying on business of shipping agency pursuant to

subsection (1), who elects not to apply for a licence or who having ap-
plied for a licence has not satisfied the requirements of sections 7 and I 1,
shall cease to carry on business of shipping agency on expiration of the
period referred to in subsection.

PART IV
CAPITAL AND OTHER REQUIREMENTS FOR SHIPPING AGENTS

Qualifica- 7. No person shall, after coming into operation of this Act, be regis-
tions for
registration tered and licensed as a shipping agent unless that person-
and
licensing (a) is a citizen of Tanzania;
Cap. 212 (b) is a body corporate incorporated under the Companies Ordinance
in which more than fifty per cent of the share capital is held di-
rectly or indirectly by a citizen of Tanzania.

Capital 8-41) The Minister shall, upon consultation with the Authority by
require- order published in the Gazette, prescribe the minimum paid up share
ments
capital to be maintained by a shipping agent.
(2) The Minister may, from time to time, by order published in the
Gazette, vary the minimum paid up share capital prescribed under sub-
section (1).

Margin of 9.-(l) Any person or company carrying on business as a shipping

solvency agent shall, at all time while carrying on such business, maintain of sol-
vency of not less than the amount which the Minister shall by regulations
published in the Gazette prescribe.

(2) The regulations made under subsection (1) shall prescribe the method
of calculating the assets and liabilities of a shipping agent for the purpo-
ses of this section.

(3) Any shipping agent acting in contravention of this section commits

an offence.
No. 11 Shipping Agency 2002 7
10-(1) No shipping agent shall at any time declare, credit or pay any Restriction
dividend or make any other transfer from profit if the payment or transfer on transfer
of shares
results in the shipping agent not meeting the margin of solvency require-
ment provided in section 9.
(2) If any shipping agent contravenes the provisions of this section,
the shipping agent commits an offence.

PART V
LICENSING PROCEDURES

11.-(1) Any person intending to carry on the business of shipping agency Appfica-
shall make an application to the Authority on the prescribed form and tion of
licence
pay the prescribed fee.
(2) Where the Authority approves an application made under subse-
ction (1), the Authority shall issue a licence to the applicant.
(3) The Authority shall not issue a licence to any applicant if-
(a) the applicant is a ship owner, an operator or a charterer;
(b) the applicant does not possess the prescribed qualifications for
the proper carrying on of the business of shipping agency;
(c) the applicant has a known criminal record inside or outside the
country or
(d) the provisions of this Act or regulations made under this Act have
not been complied with.

12. No licence issued under this Act shall be transferable to any other Licence not
transfera-
person. ble

13.(1) Subject to subsections (2) and (3) if the Authority is of the Suspension
or cancelia-
opinion that any person to whom a licence has been issued is unfit to tion
carry on the business of shipping agency, the Authority may by notice in
writing suspend the licence for any period specified in the notice, or
cancel the licence.

(2) No notice made under subsection (1) shall be made against a ship-
ping agent without a written notice requiring the shipping agent to show
cause within a period specified in the notice on why such notice should
not be made.
8 NO. 11 Shipping Agency 2002

(3) The notice issued pursuant to subsection (2) shall be for a period of
thirty days during which, if the shipping agent to whom a notice was
issued has failed to demonstrate that he is a fit and proper person to carry
on the business as authorized, the Authority shall proceed to suspend the
licence.

(4) Notwithstanding the provisions of subsections (2) and (3), the

Authority shall have power to suspend any licence issued under this Act
if it is of the opinion that the agent no longer satisfies the requirements or
has lost qualifications with regard to which a licence was issued.

Effect of 14. An order made under subsection (1) of section 13 to a shipping

suspension agent shall come into force on the date on which that order was commu-
or
cancellation
nicated by the Authority to the shipping agent, and shall continue to be in
of an order force notwithstanding that an appeal against that order has been referred
to the Fair Competition Tribunal.

Communi- 15. Any notice or order required to be cominnicated to any shipping

cation to be
deemed
agent under this Act, shall be deemed to be communicated after the ex-
complete piry of seven days from the date of dispatch of that notice or order by
whatever means.

No 16. No shipping agent who, prior to the coming into operation of this
compensa- Act, was carrying on business as a shipping agent shall be entitled to
tion for
loss compensation for any loss incurred by way ofbusiness or otherwise or by
reason of him not being issued a licence under this Act.

PART VI
OFFENCES AND PENALTIES

Liability of 17.-(1) Where an offence is committed by a body of persons, if that

body body of persons is a body corporate, every person who at the time of the
corporate
commission of the offence was a director, manager, secretary or other
similar officer of that body corporate shall be deemed to have committed
that offence unless that person proves that the offence was committed
without his knowledge or connivance and that he exercised all due dili-
gence to prevent the commission of the offence having regard to the na-
lure of his functions and all other circumstances.
No. 11 ShippingAgency 2002 9

18. Where an offence is committed by any employee or servant of a Liability of

shipping agent while engaged in the business of that shipping agent, that employee
or servant
offence shall be deemed to have been committed by that shipping agent of shipping
unless the shipping agent proves that the offence was committed without agent
his knowledge.

19. Any person who- Offences

and
penalties
(a) furnished any return, written information or explanation containing
any particulars which to his knowledge are false or incorrect; or
(b) acts in contravention of any provision of this Act or any regula-
tions made under this Act commits an offence and on conviction is
liable subject to a penalty prescribed by the Regulations regarding
a specific offence, to fine of not more than US $20,000 or its
equivalent in Tanzania Shillings or to imprisonment for a term of
not more than five years or to both.

PART VIII
GENERAL PROVISIONS

20. The Divisional Directors may issue to any shipping agent any Power to
direction necessary for the purpose of efficient implementation of the pro- issue
directions
visions of this Act or any regulations made under this Act.
Power of
21. The Divisional Director or any prescribed officer, may- entry and
inspection
(a) enter and inspect at all reasonable hours of the day the premises in
which the business of shipping agency is carried on; or
(b) inspect and take copies of any records required under this Act to
be kept in respect of the business of shipping agency orany other
records relating to such business,
for the purpose of ascertaining whether the provisions of this Act or regu-
lations made under this Act are being complied with.
(2) Any person who hinders or obstructs the Divisional Director or
any prescribed officer in the performance of his duties under this Act,
commits an offence.

22. Every shipping agent shall maintain such records as may be Mainte-
prescribed. nance of
records
10 NO. 11 Shipping Agency 2002
Exemption
from
23.-(1) Notwithstanding any of the provisions of this Act, the Minis-
application ter may, by order published in the Gazette, exempt any Parastatal organi-
of certain
sation carrying on business of shipping agency from application of any
Provisions
Of the Act
or all Provisions of this Act.

(2) An order made pursuant to subsection (1) shall set out the terms
and conditions attached to the exemption and state the time during which
that order shall remain in force.

Regula-
24.-(1) The Minister may, after consultation with the Authority, make
tions regulations for the purpose of carrying out or giving effect to the provi-
sions of this Act.

(2) In particular and without prejudice to the generality of the powers

conferred under subsection (1), the Minister may make regulations in
respect of-

(a) the period for which and the terms and conditions subject to which
licences may be granted;
(b) the furnishing of all such statements, declarations or records re-
lating to the business of shipping agency as may be necessary for
ensuring efficient administration of the provisions of this Act or
regulations made hereunder;
(c) the standards to be observed by shipping agents and the prohibi-
tion of acts or omission in contravention of such standards;

(d) a penalty that may be imposed on conviction for an offence against

this Act;
(e) any other matter required by this Act or regulations to be pre-
scribed.
(3) The regulations made under this section shall be published in the
Gazette.

Passed in the National Assembly on the 22nd April 2002

Clerk of the National Assembly