ZIMBABWE REVENUE AUTHORITY (ZIMRA)
ZIMRA is an agent of the state in assessing, collecting and enforcing the payment of all revenues.
TAXES CHARGED ON IMPORTED GOODS
CUSTOMS AND EXCISE DUTY
Customs Duty is levied on imported goods in terms of the Customs and Excise Act [Chapter 23:02] whilst Excise Duty is levied on certain locally manufactured goods in terms of the same Act. Rates of Customs and Excise Duties are set out in the Customs Tariff. The rates vary according to the category of goods.
Surtax is also payable on goods that attract at least 40% as Customs Duty and where specific or combination rates of duty are applied. This tax is ordinarily charged at a rate of 15% ad valorem. However, light motor vehicles of tariff heading 8703 that are more than five years from the date of their manufacture attract surtax at a rate of 25% ad valorem.
Value Added Tax (VAT) is another tax levied on imported goods and services in terms of the Value Added Tax Act [Chapter 23:12]. Please note that VAT is an indirect tax charged on the supply of goods and services in Zimbabwe.
Duty may be reduced or waived where the following circumstances exist: suspension, rebates, bilateral and multilateral agreements, and remissions. No duty is levied on exports.
Immigrant Rebate- Immigrant means any person who enters Zimbabwe:
to take up employment or permanent residence, or as a visitor but remains to take up employment or permanent residence; or
as a diplomat but remains to take up employment or permanent residence or to attend any educational institution. This includes spouses or children of such persons
for the purposes of attending any educational institution
a person who has previously resided or been employed in Zimbabwe who returns to Zimbabwe after having resided outside Zimbabwe for a period of not less than two years
An immigrant can import duty free household effects plus one motor vehicle provided:
the immigrant owned the goods at the time of his/her arrival or at the time of their importation
the goods are imported at the time of arrival of the immigrant.
the goods are intended for personal use in Zimbabwe by the immigrant
the goods are not for resale or for commercial use
an immigrant importing a motor vehicle is over sixteen years of age
COMMERCIAL GUIDELINES ON IMPORTS AND EXPORTS
All commercial exports, regardless of the value, require Exchange Control approval in the form of a CD1 form, which can be obtained from any commercial bank. This also applies to goods exported for the purposes of repair and return.
Additional requirements include a Bill of Entry Export (Form 21) supported by invoices and consignment notes which are determined by the mode of transport:
- Export permits for controlled/restricted goods.
- A clearance fee is also payable at the prescribed rate.
- Certificates of origin should be submitted where goods are exported under bilateral or any agreements e.g SADC, COMESA agreements.
1.Bill of Entry Import (Form 21) supported by:
- Invoices for the goods,
- Freight and insurance statements where applicable
- Bills of lading
- Airway bills, rail advice notes, road consignment notes depending on mode of transport
- Import permits for controlled/restricted goods
- Certificates of origin where goods are imported in terms of certain bilateral agreements.
2. A clearance fee at the prescribed rate shall be payable in addition to Customs Duty, Value Added Tax (VAT) and Surtax.
3. Importers can take advantage of the pre-clearance facility where the importer or his agent may lodge documents with Zimra on or before the arrival in Zimbabwe of goods dispatched by railway train, road or air transport.
REFUND AND REBATE OF DUTY ON SPECIFIED GOODS
Same State Drawback
Granted on goods that were duty paid, and are exported unused and in the form in which they were imported.
Granted on duty-paid raw materials used in the manufacture of Zimbabwean products, which are exported unused in Zimbabwe.
A drawback of duty can be claimed within two years from the date of payment. The claim should be submitted within thirty days from the date of export.
All places and towns with a Customs House process claims for drawbacks.
Inward Processing Rebate (IPR)
A rebate of duty is granted on goods imported or taken out of bond for inward processing by a registered person.
Processing means the manufacture of goods and includes any one or more of the following operations:
- Fitting or assembling
- Industrial packing or re-packaging
- Industrial packing or re-packaging
- Mixing and blending
An application for registration should be made to the Zimra office nearest to the premises of the applicant. Once approved, the registered person should operate in accordance with the provisions of the Customs and Excise (Inward Processing) Regulations (Statutory Instrument 59 of 1997).