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The Zimbabwean government has announced new regulations regarding exemptions from the ban on importing motor vehicles older than 10 years.
In March 2024, the government banned the importation of vehicles over 10 years old from the date of manufacture, requiring those bringing them in to cover re-exportation costs.
But in July 2024, Statutory Instrument 111 of 2024 allowed inherited cars, vehicles of returning citizens, and diplomats’ cars to be imported even if older than 10 years.
Further amendments have now been introduced through Statutory Instrument 172 of 2024, published in a supplement to the Government Gazette Extraordinary on October 18, 2024.
Statutory Instrument 172 of 2024, alongside SI 54 and SI 111 of 2024, exempts all immigrants, as defined by Customs and Excise regulations, from the ban on importing motor vehicles older than 10 years.
To qualify for this exemption, individuals must meet the eligibility requirements set by the Zimbabwe Revenue Authority (ZIMRA). Reads Statutory Instrument 172 of 2024:
<blockquote>
IT is hereby notified that the Minister of Industry and Commerce, in terms of section 4(1) of the Control of Goods (Import and Export) (Commerce) Regulations, 1974, published in Rhodesia Government Notice 766 of 1974, hereby makes the following regulations:-
1. These regulations may be cited as the Control of Goods (Import and Export) (Commerce) (Amendment) Regulations, 2024 (No. 13).
2. The Control of Goods (Import and Export) (Commerce) Regulations, 1974, published in Statutory Instrument 766 of 1974 (“hereinafter called the principal regulations”), is amended in section 3(2) by the deletion of paragraph (iii) and the substitution of the following-
“(iii) “immigrant” as defined in terms of section 9 NO (1) of the Customs and Excise Suspension Regulations, 2003, published in Statutory Instrument 257 of 2003; and
(iv) “immigrant” as defined in terms of section 105(1) of the Customs and Excise (General) 
Regulations, 2001, published in Statutory Instrument 154 of 2001.”.
3. The principal regulations are amended by the insertion of new sections after section 3 as follows-
“3A. Motor vehicles that were imported into Zimbabwe or were at the border post awaiting clearance prior to the publication of this statutory instrument in the Gazette and fall within the exempted categories shall be similarly exempted. This exemption shall be deemed to have come into effect on 29th March, 2024.
3B. Antique, classic, vintage, and historic vehicles that are at least 25 years or older from the date of manufacture and satisfying the following characteristics are exempted-
(i) design and engineering: representative of its 
era;
(ii) originality: retains most of its original features; (iii) condition: well-maintained or restored;
(iv) rarity: limited production numbers or unique features;
(v) significant historical or cultural importance.”.
4. The principal regulations are amended by the deletion of the explanatory note and the substitution of the following-
                                                       Explanatory note
“All categories listed in section 3(2)(i) to (iv) must fulfil the necessary eligibility requirements as required by the Zimbabwe Revenue Authority.
“The vehicles exempted under section 3B will require an Import Permit from the Ministry of Industry and Commerce prior to importation.”
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

The government in Zimbabwe changed the rules about importing old cars. In March 2024, they said no cars over 10 years old could be imported. But in July, they made exceptions for certain people like returning citizens and diplomats. Now, in October, they made more changes. Immigrants can also bring in older cars, as long as they follow the rules set by the Zimbabwe Revenue Authority. Some old cars like antiques can also be brought in with a special permit. These new rules are important for people who want to bring old cars into Zimbabwe.

Government Revises Ban On Importing Vehicles Over 10 Years Old

The Government of Zimbabwe has lifted the ban on the importation of vehicles older than 10 years if they meet certain criteria.
According to Statutory Instrument 111 of 2024 [CAP. 14:05] Control of Goods (Import and Export) (Commerce) (Amendment) Regulations. 2024 (No. 11), inherited cars, those of returning citizens and diplomats can be imported into the country even if the cars are older than 10 years. Reads the Statutory Instrument:
<blockquote>
It is hereby notified that the Minister of Industry and Commerce, in terms of section 4(1) of the Control of Goods (Import and Export) (Commerce) Regulations, 1974, published in Rhodesia Government Notice 766 of 1974, hereby makes the following regulations:-Notwithstanding section 3(1), second hand motor vehicles aged ten years and above belonging to the following shall be allowed entry into Zimbabwe, deceased estates (inherited motor vehicles); or diplomats returning to Zimbabwe from their postings abroad; or returning residents.
</blockquote>
In March 2024, the government banned the importation of vehicles that are more than 10 years old from the date of manufacture, and those bringing any shall bear the costs of re-exportation.
Statutory Instrument 54 of 2024 cited as Control of Goods (Import and Export) (Commerce) (Amendment) Regulations, 2024 (No. 10) gazetted by Industry and Commerce Minister Mangaliso Ndlovu deleted the old 2021 need for an import licence for older cars and replaced it with a pure ban plus a re-export requirement.
Imports of commercial vehicles, tractors, haulage trucks, earth-moving equipment and other specialised vehicles used in mining and construction sectors were exempted from the ban.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

The Zimbabwe government changed the rule banning old cars over 10 years from being imported. Now, inherited cars, those of returning citizens, and diplomats can bring in cars older than 10 years if they meet certain criteria. In March 2024, the government had banned these cars from being imported, but now they are allowed under certain conditions. However, commercial vehicles, tractors, haulage trucks, and specialized vehicles used in mining and construction are still exempt from this ban. The old rule needed an import license, but now it's just a ban with a requirement for re-export if necessary.

Government Modifies Ban On Imports Of Vehicles More Than 10 Years Old

Zimbabwe has banned the importation of vehicles that are more than 10 years old from the date of manufacture, and those bringing any shall bear the costs of re-exportation.
Statutory Instrument 54 of 2024 cited as Control of Goods (Import and Export) (Commerce) (Amendment) Regulations, 2024 (No. 10) gazetted by Industry and Commerce Minister Mangaliso Ndlovu on Thursday, deletes the old 2021 need for an import licence for older cars and replaces it with a pure ban plus a re-export requirement. It reads:
<blockquote>
Second-hand vehicles aged 10 years and above from the date of manufacture shall not be imported. Any second-hand vehicle prohibited under this subsection shall be re-exported by the owner of the said vehicle at his or her expense.
</blockquote>
The previous and now repealed section said people were required to obtain an import licence from the Ministry of Industry and Commerce to import vehicles that were 10 years or older.
Imports of commercial vehicles, tractors, haulage trucks, earth-moving equipment and other specialised vehicles used in mining and construction sectors remain exempted from the ban.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Zimbabwe Bans Importation Of 10-year-old Used Vehicles

Russia has overtaken China to become Zimbabwe’s second major source of imports, behind South Africa, according to statistics released by the Zimbabwe National Statistics Agency (ZIMSTAT).
Three countries, that is, South Africa (34.7%), the Russian Federation (15.2%) and China (11.9%), accounted for around sixty-two percent of Zimbabwe’s total import value of US$901.5 million in October 2023.
Below are the trade statistics released by ZIMSTAT this Monday, 27 November:
External Trade Statistics: October 2023 – The total value of exported goods in October 2023 was US$831.9 million, representing a 22.7% increase from US$678.1 million reported in September 2023.
Imports for October: 2023 amounted to US$901.5 million, an increase of 16.7% from US$772.2 million recorded in September 2023.
The trade deficit for October 2023 was US$69.6 million, translating to a 26.4% decline from the deficit of US$94.6 million recorded in September 2023.
Sept 2023 exports value = USD678.1 million Oct 2023’s exports value = USD831.9 million. Among the country’s major export destinations in October 2023 were China (38.4%,) and the United Arab Emirates (22.8%), South Africa (16.3%).
The three countries accounted for around seventy-seven percent of the total export value of USD831.9 million.
Sept 2023 imports value = USD772.7 million Oct 2023 imports value = USD901.5 million.
Zimbabwe’s major source countries of imports in October 2023 were South Africa (34.7%), the Russian Federation (15.2%) and China (11.9%).
The three countries accounted for around sixty-two percent of the total import value of USD901.5 million.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

South Africa, Russia, China Account For Over 60% Of Zimbabwe's Imports

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

Zimbabwe spends more than US$400 million annually in importing medical drugs, a deputy director in the Ministry of Industry and Commerce, Dayford Nhema has said.
Speaking at the launch of a local pharmaceutical firm Sapps Pharmaceuticals, Nhema said the bill for importing drugs was too high. <a href="https://www.theindependent.co.zw/business-digest/article/200012378/zim-spending-us400m-annually-on-drug-imports">He said</a>:
<blockquote>
In terms of imports of pharmaceutical products, Zimbabwe spends over US$400 million annually on imported drugs, estimated at almost 90%.
The importation process, coupled with transport costs, results in our citizens bearing the brand of expensive healthcare products.
</blockquote>
Nhema said it was important to capacitate the local industry to help the country save foreign currency. He said:
<blockquote>
The government is implementing the duty-free importation of pharmaceutical ingredients.
We are also implementing the local content strategy with the ultimate objective of seeing increased productivity in the pharmaceuticals sub-sector.
</blockquote>
Sapps Pharmaceuticals was licensed by the <a href="https://pindula.co.zw/Medicines_Control_Authority_of_Zimbabwe">Medicines Control Authority of Zimbabwe</a> (MCAZ) in November 2021 and started manufacturing drugs last year becoming the 10th player in the manufacturing of medicine locally.
Its founder, Kudzai Hove, said that he started the company out of frustration as patients would come in need of medicines but they could not afford them.
Pharmaceuticals Manufacturers Association chairman Emmanuel Mujuru appeal for financial support for the industry.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Zimbabwe Spending US$400m Annually On Medicinal Drug Imports - Govt

The recent move by the Government to suspend import duty and import value-added tax (VAT) on selected groceries is something Zimbabweans have become familiar with as it happened exactly 12 months ago.
The suspension was lifted in late November 2022, which means it has taken the Government just six months to reverse its decision amid soaring prices and a runaway exchange rate.
On Friday, 12 May, the Government suspended import duty and import value-added tax (VAT) on 11 basic grocery items: maize meal, rice, milk, flour, sugar, 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 development evokes a sense of déjà vu as similar measures to address rampant price increases were put in place in May 2022.
In May last year, Ministry of Finance and Development permanent secretary George Guvamatanga directed Zimbabwe Revenue Authority (ZIMRA) then acting Commissioner-General Regina Chinamasa to suspend duty on selected products for a period of six months with effect from 17 May 2022. Wrote Guvamatanga:
<blockquote>
Reference is made to the press statement by the Minister of Finance and Economic Development where a pronouncement was made regarding the introduction of measures aimed at ensuring access to affordable basic commodities, in view of the recent substantial increases in prices of locally manufactured products.
In view of the above, Zimbabwe Revenue Authority is hereby authorised to suspend duty on the following products for a period of six months with effect from May 17, 2022.
</blockquote>
Rice, flour, cooking oil, margarine, salt, sugar, maize meal, milk powder, infant milk formula, tea (whether or not flavoured), petroleum jelly, toothpaste, bath soap, laundry bar were to be imported duty-free.
Finance and Economic Development Minister Mthuli Ncube scrapped the suspension of import duty when he presented the 2023 national budget on 24 November 2022.
In his budget presentation at the New Parliament Building in Mt Hampden, Ncube said:
<blockquote>
Mr speaker sir, the government suspended customs duty on basic commodities in order to cushion consumers from unjustified price increases, this measure has contributed to stability in prices of basic commodities, hence the suspension which expired on November 16, 2022 will not be extended.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Six Months Ago Govt Re-imposed Duty On Basic Groceries

Confederation of Zimbabwe (CZI) president Kurai Matsheza has said the recent suspension of import duty and import value-added tax (VAT) on 11 basic groceries by the Government will have a negative impact on the economy.
On Thursday, Finance and Economic Development Minister Mthuli Ncube announced several measures to stabilise the exchange rate and prices.
Among other things, Ncube scrapped import duty and import value-added tax (VAT) on selected products.
On Friday, Finance and Economic Development permanent secretary George Guvamatanga directed Zimbabwe Revenue Authority (ZIMRA) commissioner-general Regina Chinamasa to suspend import duty and import VAT on maize meal, rice, milk, flour, salt, cooking oil, sugar, petroleum jelly, toothpaste, bath soap and washing powder.
Speaking to <a href="https://www.newsday.co.zw/local-news/article/200011563/industry-frets-over-suspension-of-import-duty">NewsDay</a> on Sunday, Matsheza said the move choke local manufacturers and was also tantamount to exporting jobs. He said:
<blockquote>
The lifting of duties on the 11 products has more negatives than positives on the economy.
This measure means as a country we’re outsourcing the production of those products, hence exporting jobs.
While the intention is to protect the general consumer from the price increase, the general consumer will not be importing, it’s small businesses and big to some extent who will be importing and then retailing in US dollars.
This deepens dollarisation as basic goods will only be available in USD [supposedly at ‘low’ prices].
</blockquote>
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.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Captains Of Industry Say Suspension Of Duty Will Export Jobs And Choke Small Businesses

Renowned economist Gift Mugano has commended Treasury for allowing businesses to keep 100% of their locally generated forex revenue.
Speaking to <a href="https://www.newsday.co.zw/thestandard/business/article/200011510/it-will-not-work-industry-tells-ncube">The Standard</a>, Mugano a professor of economics, however, said the removal of import duty on 11 selected products will expose the local industry while draining foreign currency from the country. He said:
<blockquote>
The move by the government to open the borders for basic commodities under the argument that they want to push improvement and availability of basic commodities; I don’t think it’s a good one.
It clearly exposes our local industry and it becomes a significant drainer of foreign currency because we are allowing unrestricted draining of foreign currency to import goods.
My view on this: I think the government is being emotional about the current price spike.
The tragedy is that the price hikes will continue because local manufacturers will be forced to charge Zimdollar and United States dollars in the shops as required by law, but those who are going to import commodities, particularly cross border will not charge in Zimbabwean dollars.
This will further deepen dollarisation and use of United States dollar because they need foreign currency to be able to go back and import again.
</blockquote>
According to The Standard, the Zimbabwean dollar fell to $2 700 against the United States dollar from about $1 200 a week ago.
But officially, during the same period, the Zimbabwe dollar fell to $1 222.27, against the greenback.
The depreciation of the local unit has led businesses to increase prices to preserve the value of goods and services, thereby making a recent 100% salary increment for civil servants meaningless.
In fact, some commentators say civil servants were better off before the salary increment in April than they are at present as far as their earnings in local currency are concerned.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

"Removal Of Import Duty On Groceries Will Expose Local Industry And Drain Forex"

The Zimbabwe National Chamber of Commerce (ZNCC) Matabeleland Chapter has called for taxes on all imports to discourage the importation of locally-available commodities.
Speaking at the ZNCC Matabeleland Chapter’s annual pre-budget consultations held in Bulawayo this Thursday, ZNCC Bulawayo Chapter chairperson, Mackenzie Dongo said taxes will save the local industries. He is quoted by <a href="https://www.zbcnews.co.zw/protect-local-industry-zncc-says/">ZBC News</a> as saying:
<blockquote>
We need to protect our local industries. We need to make sure that all imports are taxed because these products are flooding the local market. 
</blockquote>
His remarks come barely months after the <a href="https://news.pindula.co.zw/2022/05/16/here-is-the-list-of-basic-grocery-items-to-be-imported-duty-free/">government removed duty</a> on some commodities to increase imports as a measure to curb inflation. It also <a href="https://news.pindula.co.zw/2022/05/21/zimbabwe-remove-import-licences-requirement-for-7-commodities/">removed import licence requirements</a> on some commodities.
The government accused local businesses of unjustly raising the prices of their commodities. Cross-border traders would bring cheaper commodities from beyond the country’s borders forcing local businesses to reduce their prices, according to authorities.
Local businesses, on the other hand, argued that doing business was expensive saying their prices only reflected costs incurred.
<h2>They attributed inflation to these factors:</h2>
<blockquote>
1). They said fuel which has been going up was forcing them to raise their prices to recoup costs incurred.
2). They said taxes were too high.
</blockquote>
Meanwhile, Louis Herbst, ZNCC Matebeleland Chapter vice president urged the government to use the 2023 budget to fund the resuscitation of the Bulawayo industry agenda. Bulawayo used to be Zimbabwe’s industrial hub.
<h2><a href="https://news.pindula.co.zw/">Pindula News</a></h2>

ZNCC Calls For Taxes On All Imports To Discourage Importation Of Locally-available Commodities

According to trade data released to the ZBC News by the Zimbabwe National Statistics Agency this Wednesday, Zimbabwe imported goods worth US$193.6 million from South Africa last month. This is a 17 percent increase from imports worth US$175. 4 million the same period in 2017.
Trade between the two countries since January has reached US$905 million. Zimbabwe exported goods worth US$160.2 million against imports valued at US$193.6 million in September this year. Imports from South Africa included vehicles, groceries, electrical gadgets, toiletries, chemicals, wooden furniture among others. Exports to South Africa included scrap metal, agricultural produce, beef, minerals and tobacco.
South Africa remains Zimbabwe’s number one trading partner. Other notable trading partners for Zimbabwe included Singapore, China, Japan, Zambia, India, United Arab Emirates and Mauritius.
More: <a href="http://www.zbc.co.zw/zim-imports-from-sa-up-17-percent/">ZBC</a>

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