This study has used descriptive analysis in order to identify the implication of tariff reduction on custom revenue in Tanzania under the EAC. Chart flow coupled with documents review was used to draw conclusion.
The study employed secondary data from UN-COMTRATE in which imports and export data between Tanzania and other EAC members as well as between Tanzania and the rest of the world was found. The study also employed data from the EAC website about internal tariff and data from previous studies coupled with documents from EAC website was used for the external tariff analysis.
The conclusion reached indicated that the reduction of tariff has positive impacts on custom revenue. Meanwhile, the analysis has also raised concerns about the balance between imports and export flow, following the persistence deficit on Tanzania BOP.
While investigating the impact of tariff reduction on custom revenue, factors hindering maximum utilization of the opportunities created by trade liberalization were also identified.
Using the obtained results and documents review; recommendations that can help in guidance during the alteration of trade policies in a way that negative impacts of the reformation can be mitigated, were made.