IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF SOCIAL SCIENCES AND MANAGEMENT RESEARCH (IJSSMR )

E-ISSN 2545-5303
P-ISSN 2695-2203
VOL. 10 NO. 9 2024
DOI: 10.56201/ijssmr.v10.no9.2024.pg49.66

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Assessment on Effects of Incoterms in Reduction of Exportation Costs to Cash Crops Exporters, A Case of Cashew Nut Exporters at Mtwara Port

Laulence Meshack. Nyenye, Dr. Eliamin Aloyce Kassembe

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Abstract

International commercial terms play a crucial role in international trade, particularly for cash crop exports like cashews. This study explores how Incoterms, a set of international commercial terms, affect cash crop exportation from Tanzania. According to current cashew nut policy developed June 2021, Tanzania’s President Samia Suluhu issued an order instructing that all cashew nuts produced in the Southern regions must be exported via Mtwara Port to counteract congestion at Dar es salaam Port. This research aims to bridge gap existing to exporters at Mtwara Port lacking a comprehensive understanding on the application and implications of Incoterms in international trade transactions by providing an assessment on effects of Incoterms in cost reduction to cashew nut exporters at Mtwara port. The study deployed mixed-methods research designs by In-depth primary and secondary data collection methods were conducted with key stakeholders, such as exporters, port officials, and industry experts. The results, derived from both quantitative and qualitative data analysis, offered insights into the challenges and opportunities related to Incoterms usage particularly in terms of cost reduction, simplified tax calculations, shorter delivery times, and decreased risks associated with goods transportation. By understanding how Incoterms influence export efficiency and risk management, cashew nut stakeholders can develop strategies to maximize exports of cashew nut volume through Mtwara Port and contribute to Tanzania's economic growth. findings were analyzed using descriptive statistical analysis to identify patterns, trends, and relationships between Incoterms and export performance. Based on the findings, recommendations were made on the use of D terms that could enhance the efficiency, competitiveness, and growth of Tanzania's cashew nut market in the global arena compared to previous exportation volumes. It was concluded that the prope

keywords:

Cashew Exports, Incoterms, Mtwara Port, Export Efficiency, Stakeholders

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