TANZANIA – The Zanzibar Liquor Control and Advisory Board has intervened to prevent the clearance of alcoholic beverages illegally imported by three companies at the Zanzibar Multipurpose Terminal (ZMT) at Zanzibar Port.
In a letter addressed to the director general of the Zanzibar Ports Authority, the board identified the companies as ZMMI, Scotch Co. Ltd, and One Stop Ltd.
These companies attempted to clear their alcohol shipments without the required import permits, violating Section 33 of the Zanzibar Alcoholic Beverages Advisory and Control Act No. 9 of 2020.
In March, the three companies acknowledged that 25 containers of alcoholic beverages and seven beer dhows were stuck at Malindi port in Zanzibar.
Authorities had refused to release the shipments despite clearance by the Tanzania Revenue Authority (TRA), Zanzibar Revenue Authority (ZRA), and other government agencies. The companies claimed that the imports were made before their import permits were denied renewal.
The board has confirmed that these companies are not authorized to import alcohol into Zanzibar for the year 2024.
Akif Ali Khamis, the director general of the Port Authority, confirmed receipt of the board’s letter and noted that the shipments are currently being held at the port due to the lack of necessary import permits.
“Yesterday, we received a letter from the liquor control board ordering us to continue holding the consignment they imported because they have not been granted alcohol import permits into Zanzibar,” Khamis stated.
He also mentioned that shipping duties have been paid by the involved parties since the merchandise arrived at the port. The shipments will remain held until new decisions are made, with costs determined according to the law.
After their import permit applications were denied, the three companies resorted to legal action, filing Claim No. 08 of 2024 in the Zanzibar High Court to compel the issuance of permits.
However, the court ruled on February 19, 2024, that the authority to issue import permits lies solely with the Zanzibar Liquor Control and Advisory Board, dismissing the companies’ claims.
The companies’ continued attempts to import alcohol without permits have been described as deceptive and contrary to Zanzibar laws.
However, a significant development emerged when Section 33 of the Zanzibar Alcoholic Beverages Control and Counseling Act No. 9 of 2020, which restricted import permits to Zanzibar-owned companies and limited the number of permits to three, was declared unconstitutional by the Zanzibar High Court in April 2024.
Judge George J. Kazi ruled that Section 33(1) of the LCA was “inoperative” and “a legal nullity,” violating fundamental rights enshrined in the Zanzibar Constitution, including the freedom to conduct business and the right to earn a living.
The judgment emphasized that the restriction on import permits contradicted the Zanzibar Constitution and the Fair Competition and Consumer Protection Act (FCFCPA).
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