A Dissertation Submitted to the Dar es Salaam Campus College in Partial Fulfillment of the Requirements of Masters of Business Administration (Corporate Management) Degree of Mzumbe University.Measures to actively facilitate trade are increasingly seen as essential to assist in developing countries in expanding trade and benefiting from globalization. Trade facilitation is a concept that considers the simplification, harmonisation, standardisation and modernisation of trade procedures. Its principle aim is to reduce transaction costs in international trade, especially those between business and government actors at the national border. The concept of trade facilitation has received exceptional attention over the last few years, especially in the context of supply chain security, customs modernisation, international trade systems, WTO trade negotiations, capacity building and market access type questions. This has inter alia resulted from unpredictable crossing time that impact trade and the overall performance of the supply chain due to increased transaction costs that ultimately adversely affect business community, government and the public at large. Therefore this study examined the challenges of Customs on trade facilitation, specifically the Customs clearing process at Holili border. The study focused on identifying the problems and the reasons behind those problems, which have negative contribution on the length time of clearing process. This study was conducted using techniques of qualitative and quantitative research. An attempt was made to ensure triangulation by using four data collection methodsInterviews, focus groups, observation and questionnaires with Tanzania Revenue authority’s (TRA) employees, clearing and forwarding agents and third parties. Data collection instruments used were interview sheet, Questionnaire and documentary review. The case study was described as the appropriate research strategy while Interviews, focus group discussion and a survey were used as the data collection methods. The sample of the study was taken from Holili. Data were statistically analyised through Ms Excel and accordingly findings were presented through the use of tables to get the logical findings. The research findings are discussed in detail in chapter four and found that inter alia, ICT infrastructure improvement can be seen as a leverage point to improve speed clearance of goods at Holili customs station.