Factors That Lead to Efficiency and Effectiveness of Custom Bonded Warehouse Operations in Tanzania

Revenue collection has become an important agenda especially for less developed countries including Tanzania. Achievement of management's expectation is increased revenue collection and improved quality or services to the taxpayers for customerSatisfaction. Due to its importance then, establishment of efficient and effective revenue collection system is pertinent. Revenue collection, especially in the bonded warehouses, has been perceived to be inefficient due to irregularities in the operations of bonded warehouses.This study aimed at assessing "the factors that lead to efficiency and effectiveness of the Custom Bonded Warehouse operations in Tanzania” To solicit information the study used the views and opinions of Bonded warehouse operators, clearing and Forwarding Agents, and TRA Custom Officials through survey method and questionnaires. The study adopted an exploratory research design with a quantitative approach in which cross sectional sampling was employed as research strategy. Documentary review assisted in obtaining important information from arespective operator.The study examined the factors that influence effective and efficient operations and the quality of services offered by TRA to the operators of custom bonded warehouses. The factors are: logistics management, value added distribution, improved information technology, agility and asset management, quality of service, customer satisfaction and effective and efficient management.To provide a better understanding on how quality of service can be improved, we have studied different models such as Gap Model, Gronroos Model and uses of service quality measurement. Conceptual Model was also developed to find out how Independent and Dependent Variables can influence efficient and effectiveness of the Bonded Warehouse.The research findings have shown that for greater extent customer service which lead to customersatisfaction, efficient time release as part of quality of service influence efficiency and effectiveness of the Bonded warehouse operations. Furthermore, findings reveal that it takes two or more days ror goods clearance from the port to the Bonded warehouse and the same days for TRA to provide services to the customers after lodgment for in - bonding and ex — bonding of goods in the warehouse.From the findi
ngs, it is recommended that areas of high rate of complain need to be addressed by motivating its staff in order to provide high quality of service.