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The Government has given companies and individuals the green light to import 100 bags of cement (5 tonnes) and 100 bags of fertiliser (5 tonnes) duty-free with immediate effect until 31 December 2023.
In a Press statement issued this Wednesday, 08 November, the Minister of Industry and Commerce, Sithembiso Nyoni, said the move is aimed at alleviating the shortage of the products in the market.
She, however, said those intending to import the products above 5 tonnes will require import licences from her Ministry. Said Nyoni:
<blockquote>
Following the Cabinet update on the supply situation of cement and fertilizer, the Ministry of Industry and Commerce will have an administrative arrangement with the Zimbabwe Revenue Authority (ZIMRA) to alleviate the shortages in the market.
The arrangement will allow the importation of 100x50kg bags (5MT) of cement and 100x50kg bags (5MT) of fertilizer.
This arrangement will be implemented with immediate effect.
Companies or individuals will be allowed to import fertiliser and cement of the quantities shown above up to 31 December 2023 without the requirement of an import licence.
Quantities above this will require import licences from the Ministry.
This does not apply to commercial imports.
</blockquote>
Zimbabwe is experiencing an acute shortage of both fertiliser and cement which has resulted in prices shooting through the roof.
The shortage of fertiliser is negatively affecting a booming construction industry while the unavailability of fertiliser threatens the success of the 2023/24 summer cropping season.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

Zimbabwe Allows Cement, Fertiliser Imports Of Up To 5 Tonnes Duty-free

The Zimbabwe Anti-Corruption Commission (ZACC) says it will confiscate at least 2 000 vehicles that were imported through the abuse of the civil servants’ rebate scheme.
The underhand dealings were unearthed during an operation dubbed “Operation No to Abuse of Civil Servants Rebate Scheme” conducted by ZACC working together with the Zimbabwe Revenue Authority (ZIMRA).
Speaking in an interview with <a href="https://www.herald.co.zw/zacc-to-impound-2-000-illegally-imported-vehicles/">The Herald</a> before her appointment as Zimbabwe’s Prosecutor-General, former ZACC chairperson <a href="https://pindula.co.zw/Loice_Matanda-Moyo">Justice Loice Matanda-Moyo</a> said:
<blockquote>
Working jointly with ZIMRA, ZACC through its investigations department has also engaged in “Operation No to Abuse of Civil Servants Rebate Scheme”.
The operation anticipates conviction-based forfeiture of about 2 000 vehicles which were acquired through the abuse of the civil servants’ rebate scheme.
</blockquote>
In 2019, the Government introduced the civil servants motor vehicle rebate scheme.
Under the scheme, civil servants who had served in the civil service for 10 years and above were allowed to import motor vehicles up to a specific value for each employment grade without paying import duty.
The scheme is governed by Statutory Instrument 52 of 2019 of Customs and Exercise [General] [Amendment] Regulations.
Last year, <a href="https://www.pindula.co.zw/2023/06/21/zacc-arrests-car-dealers-using-civil-servants-to-import-vehicles-duty-free/">reports suggested that some car dealers in Harare and other areas were importing vehicles using fake civil service rebate letters</a>.
Some civil servants were allegedly importing vehicles for others and charging a fee of up to US$1 500.
The vehicles remained registered in the civil servant’s name but driven by someone else.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

ZACC Says To Impound 2 000 Vehicles Illegally Imported By Civil Servants

The Zimbabwe National Chamber of Commerce (ZNCC) says the removal of import controls is promoting excessive hoarding of cheaper basic grocery items from abroad.
In its latest report, ZNCC said this is being done in anticipation that the controls might be returned later and traders intend to take advantage of importing duty-free and quota-free regimes. ZNCC said:
<blockquote>
This hoarding for future supply will result in a long-term supply of imported goods that will continue to affect the local industry for a longer period of time and will render useless some of the tools that were spelt out to promote industrialisation in the Zimbabwe Industrialisation Development Policy.
Even when the controls are returned later, they will have no effect as the hoarded supplies will continue to be distributed and pose serious competition to local producers.
For example, when the SI 98 of 2022 expired in November 2022, some warehouses were still filled with goods that could supply the informal and formal sectors for the next three to four months…
The move to import goods duty-free will reduce government revenue collections, at a time when the national budget has already been eroded by inflation.
Removing import controls on basic commodities might also reduce demand for local raw materials that feed into local industries.
As demand for cheaper imported finished products grows, the market for locally produced goods’ will contract, which will also reduce local production and demand for raw materials used in their production, especially in the agro-processing sector, which is a key value chain in Zimbabwe.
</blockquote>
In May this year, the Government removed duty on 11 selected imported basic grocery items and allowed shops and other Zimbabwean businesses to keep 100 percent of the foreign currency they get from sales.
The products that will be imported duty-free include maize meal, rice, milk, flour, sugar, salt, cooking oil, petroleum jelly, toothpaste, bath soap and washing powder.
The move came after shops hiked prices and some started to charge for certain products exclusively in foreign currency following a sudden fall in the value of the Zimbabwean dollar against other currencies.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Removal Of Import Controls Promoting Hoarding - ZNCC

The Government on Friday suspended import duty and import value-added tax (VAT) on 10 basic grocery items: maize meal, rice, milk, flour, salt, cooking oil, petroleum jelly, toothpaste, bath soap and washing powder.
The suspension of the import duty and import VAT shall be valid for six months from 12 May 2023.
The Permanent Secretary for Finance and Economic Development George Guvamatanga has since directed Zimbabwe Revenue Authority (ZIMRA) Commissioner General Regina Chinamasa, to “urgently draft the necessary legal instrument and implement the duty suspension with effect from 12 May 2023”. Wrote Guvamatanga:
<blockquote>
Furthermore, the Ministry of Industry and Commerce is expected to complement the measure through the inclusion of the above goods on the Open General Import Licence.
</blockquote>
The move is in line with the measures announced by Finance and Economic Development Minister Mthuli Ncube on Thursday.
Among other things, Ncube said retailers and wholesalers can now keep all the foreign currency they collect from customers.
The announcement came after shops hiked prices of basic food items in response to the rapid weakening of the Zimbabwe dollar against other currencies.
The removal of import duty on products can result in lower prices for consumers and improved access to goods.
However, removing import duty may also have some negative effects such as loss of government revenue, adverse effects on domestic industries, and dependency on foreign producers.
Meanwhile, in a statement on released on Friday, Buy Zimbabwe chairperson Munyaradzi Hwengwere said the Government’s decision to scrap import duty on basic grocery items will leave the local manufacturing industry vulnerable to cheap imports.
Buy Zimbabwe called for an emergency meeting with wholesalers and retailers to map a way forward.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

List Of Duty-free Grocery Items Released

The government has extended the deadline for the importation of public service buses to December 2020. The buses are imported duty-free and a single bus operator can import up to 55 buses The Sunday Mail reports.
This was revealed in a government gazette SI276 which said:
<blockquote>…3. (1) Approved tour operators shall, for a period of twelve months beginning on 1st January, 2020, be allowed to import a maximum of fifty-six new buses of a sitting capacity of at least eight to fifty-five passengers including the driver under the suspension of duty as provided for in this section.</blockquote>
The government introduced the transport subsidy through <a href="https://www.pindula.co.zw/Zimbabwe_United_Passenger_Company">Zupco</a> and private bus operators have been roped in to provide transportation in urban areas.
More; <a href="https://www.sundaymail.co.zw/more-duty-free-buses-expected">Sunday Mail </a>

Licensed Bus Operators Can Import More Duty Free Buses Till December 2020 - Transport Ministry

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