Business / Economy
Zim bilateral trade agreements
07 Nov 2012 at 22:30hrs | Views
Zimbabwe has bilateral trade agreements with several countries in which all qualifying goods enter the territory of one another without payment of customs duty. This article will focus on the following:
Zimbabwe/Namibia;
Zimbabwe/Malawi; and
Zimbabwe/Botswana.
The above agreements have similar terms and conditions.
When did these agreements become effective?
Zimbabwe/Botswana Trade Agreement 1988.
Zimbabwe/Namibia Trade Agreement 1993.
Zimbabwe/Malawi Trade Agreement 1995.
What do the agreements entail?
In terms of these agreements goods originating from Zimbabwe do not attract customs duty and surtax in the importing countries and goods originating from the exporting countries enter Zimbabwe duty and surtax free as well.
What products are covered by these agreements?
Goods grown, produced or manufactured in the territory of either contracting party.
What are the categories of goods considered grown or produced in the territories?
Mineral products extracted from the soil.
Agricultural products harvested or gathered therein.
Live animals born and raised therein.
Products obtained from live animals.
Forest products harvested therein.
Fish and other fish products gathered therein or from its marine economic zone.
Scrap and waste resulting from manufacturing operations within that country.
How about manufactured goods?
Manufactured goods should attain a minimum local content of 25 percent. This means that the component of local materials including local labour used in the manufacturing process of a product should be at least 25 percent.
How does one qualify to export goods under these agreements?
In Zimbabwe, exporters intending to export goods in terms of these agreements must apply for registration at the nearest Zimra Office. Once it is ascertained that the goods qualify as originating from Zimbabwe, the application is processed and the exporter is allocated a reference number which must be quoted on every Certificate of Origin upon exporting products to those specified countries.
What happens to imports into Zimbabwe?
On imports, the local company does not need to register the products but the products will enter Zimbabwe customs duty and surtax free if they are covered by a valid Certificate of Origin from the supplier in the exporting country. It is that supplier who registers in their home country.
What export documentation is required in terms this agreement?
Commercial Invoice for the goods.
Consignment Notes.
Freight and Insurance statements.
Licences and permits, where required.
Certificate of Origin, duly stamped and signed by Zimra. This serves as confirmation that the goods being exported are of Zimbabwean origin.
What are the benefits of exporting goods under these agreements?
Since trade agreements remove tariffs and other barriers between nations, this has the effect of lowering prices and allowing goods to become competitive in the foreign markets.
Disclaimer: This article was compiled by the Zimbabwe Revenue Authority for information purposes only. Zimra shall not accept responsibility for loss or damage arising from use of material in this article and no liability will attach to the Zimbabwe Revenue Authority.
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This article was submitted by the Zimbabwe Revenue Authority.
Please contact us as follows:
Visit our website : www. zimra.co.zw
Follow us on Twitter : @Zimra_11
Like us on Facebook: www.facebook.com/ Zimra.11
Send us an e-mail: pr@zimra.co.zw
Call us (Head Office): 04 -758891/5; 790813; 790814; 781345; 751624; 752731.
Zimbabwe/Namibia;
Zimbabwe/Malawi; and
Zimbabwe/Botswana.
The above agreements have similar terms and conditions.
When did these agreements become effective?
Zimbabwe/Botswana Trade Agreement 1988.
Zimbabwe/Namibia Trade Agreement 1993.
Zimbabwe/Malawi Trade Agreement 1995.
What do the agreements entail?
In terms of these agreements goods originating from Zimbabwe do not attract customs duty and surtax in the importing countries and goods originating from the exporting countries enter Zimbabwe duty and surtax free as well.
What products are covered by these agreements?
Goods grown, produced or manufactured in the territory of either contracting party.
What are the categories of goods considered grown or produced in the territories?
Mineral products extracted from the soil.
Agricultural products harvested or gathered therein.
Live animals born and raised therein.
Products obtained from live animals.
Forest products harvested therein.
Fish and other fish products gathered therein or from its marine economic zone.
Scrap and waste resulting from manufacturing operations within that country.
How about manufactured goods?
Manufactured goods should attain a minimum local content of 25 percent. This means that the component of local materials including local labour used in the manufacturing process of a product should be at least 25 percent.
How does one qualify to export goods under these agreements?
In Zimbabwe, exporters intending to export goods in terms of these agreements must apply for registration at the nearest Zimra Office. Once it is ascertained that the goods qualify as originating from Zimbabwe, the application is processed and the exporter is allocated a reference number which must be quoted on every Certificate of Origin upon exporting products to those specified countries.
What happens to imports into Zimbabwe?
On imports, the local company does not need to register the products but the products will enter Zimbabwe customs duty and surtax free if they are covered by a valid Certificate of Origin from the supplier in the exporting country. It is that supplier who registers in their home country.
What export documentation is required in terms this agreement?
Commercial Invoice for the goods.
Consignment Notes.
Freight and Insurance statements.
Licences and permits, where required.
Certificate of Origin, duly stamped and signed by Zimra. This serves as confirmation that the goods being exported are of Zimbabwean origin.
What are the benefits of exporting goods under these agreements?
Since trade agreements remove tariffs and other barriers between nations, this has the effect of lowering prices and allowing goods to become competitive in the foreign markets.
Disclaimer: This article was compiled by the Zimbabwe Revenue Authority for information purposes only. Zimra shall not accept responsibility for loss or damage arising from use of material in this article and no liability will attach to the Zimbabwe Revenue Authority.
-----------------------
This article was submitted by the Zimbabwe Revenue Authority.
Please contact us as follows:
Visit our website : www. zimra.co.zw
Follow us on Twitter : @Zimra_11
Like us on Facebook: www.facebook.com/ Zimra.11
Send us an e-mail: pr@zimra.co.zw
Call us (Head Office): 04 -758891/5; 790813; 790814; 781345; 751624; 752731.
Source - zimra
