News / Local
RBZ comes up with parameters in motor vehicle clearance
30 May 2021 at 03:40hrs | Views
THE Reserve Bank of Zimbabwe (RBZ) has come up with Exchange Control parameters for consideration in the motor vehicle clearance process in line with Statutory Instrument 89 of 2021 on licensing requirements for importation of second-hand motor vehicles.
In a letter to the Zimbabwe Revenue Authority (Zimra) acting commissioner general, Mr Rameck Masaire, RBZ governor Dr John Mangudya said the bank has since been receiving requests for confirmation letters that payments for motor vehicle imports were made in line with Exchange Control regulations.
"Reference is made to the Press Statement by the Ministry of Industry and Commerce on Statutory Instrument 89 of 2021 and your subsequent Public Notice 41 of 2021 dated 02 April 2021.
"The Bank has since publication of the above, received requests for confirmation letters that payments for motor vehicle imports were made in line with Exchange Control regulations.
"Accordingly, we wish to advise on the following Exchange Control parameters for your consideration in the motor vehicle clearance process," said Dr Mangudya.
For the proof of payment for imports funded from local banks, he said the respective facilitating banks can provide the proof of payment in the form of a copy of an outward Telegraphic Transfers (TTs) and/or accounts statements for card transactions, that is international credit or debit cards.
Dr Mangudya noted that banks may also provide support letters as confirmation of international payments.
In terms of proof of payment for imports funded from foreign currency cash, he said:
"Where payment has been made using foreign currency cash in excess of the prescribed limit of US$2 000, which is the maximum amount allowable per single exit at the port of exit, the importer shall provide an Exchange Control Authority to export foreign currency cash in excess of the prescribed limit. Kindly note that Exchange Control does not grant such authorities in retrospect."
Dr Mangudya said for proof of payment for imports funded using free funds, in terms of the existing Exchange Control framework, the funding of imports from offshore sources or using free funds was permissible.
He added that where Zimra suspected any cases of money laundering, such cases may be reported to the RBZ Financial Intelligence Unit.
Government gazetted Statutory Instrument 89 of 2021 last month and it says that imports of second-hand vehicles more than 10 years old from the date of manufacture on the day they enter Zimbabwe on or after 2 April were no longer automatic and now need specific import licences for each vehicle, with importers attaching proof of payment when applying for this licence.
The amendment to the first schedule of the original regulations was made by Industry and Commerce Minister Dr Sekai Nzenza and while importers of most older vehicles now need to apply for a specific import licence, the Minister exempted from the requirement commercial vehicles, listing these as tractors, haulage trucks, earth-moving equipment and specialised vehicles used in the mining and construction sectors.
"Applications for importing cars, motorcycles and light trucks more than 10 years old, along with applications to import cement or sugar, can be made at the offices of the Ministry of Industry and Commerce in Harare, Mutare, Bulawayo, and Gweru in line with Government decentralisation policies," Minister Nzenza said in a statement explaining her gazetted statutory instrument.
The requirement to seek permission to import every light second-hand vehicle over 10 years old is in line with the National Development Strategy 1, which underscores value addition and encourages effective standards, regulations and use of roadworthy vehicles that meet environmental and safety standards.
In a letter to the Zimbabwe Revenue Authority (Zimra) acting commissioner general, Mr Rameck Masaire, RBZ governor Dr John Mangudya said the bank has since been receiving requests for confirmation letters that payments for motor vehicle imports were made in line with Exchange Control regulations.
"Reference is made to the Press Statement by the Ministry of Industry and Commerce on Statutory Instrument 89 of 2021 and your subsequent Public Notice 41 of 2021 dated 02 April 2021.
"The Bank has since publication of the above, received requests for confirmation letters that payments for motor vehicle imports were made in line with Exchange Control regulations.
"Accordingly, we wish to advise on the following Exchange Control parameters for your consideration in the motor vehicle clearance process," said Dr Mangudya.
For the proof of payment for imports funded from local banks, he said the respective facilitating banks can provide the proof of payment in the form of a copy of an outward Telegraphic Transfers (TTs) and/or accounts statements for card transactions, that is international credit or debit cards.
Dr Mangudya noted that banks may also provide support letters as confirmation of international payments.
In terms of proof of payment for imports funded from foreign currency cash, he said:
"Where payment has been made using foreign currency cash in excess of the prescribed limit of US$2 000, which is the maximum amount allowable per single exit at the port of exit, the importer shall provide an Exchange Control Authority to export foreign currency cash in excess of the prescribed limit. Kindly note that Exchange Control does not grant such authorities in retrospect."
Dr Mangudya said for proof of payment for imports funded using free funds, in terms of the existing Exchange Control framework, the funding of imports from offshore sources or using free funds was permissible.
He added that where Zimra suspected any cases of money laundering, such cases may be reported to the RBZ Financial Intelligence Unit.
Government gazetted Statutory Instrument 89 of 2021 last month and it says that imports of second-hand vehicles more than 10 years old from the date of manufacture on the day they enter Zimbabwe on or after 2 April were no longer automatic and now need specific import licences for each vehicle, with importers attaching proof of payment when applying for this licence.
The amendment to the first schedule of the original regulations was made by Industry and Commerce Minister Dr Sekai Nzenza and while importers of most older vehicles now need to apply for a specific import licence, the Minister exempted from the requirement commercial vehicles, listing these as tractors, haulage trucks, earth-moving equipment and specialised vehicles used in the mining and construction sectors.
"Applications for importing cars, motorcycles and light trucks more than 10 years old, along with applications to import cement or sugar, can be made at the offices of the Ministry of Industry and Commerce in Harare, Mutare, Bulawayo, and Gweru in line with Government decentralisation policies," Minister Nzenza said in a statement explaining her gazetted statutory instrument.
The requirement to seek permission to import every light second-hand vehicle over 10 years old is in line with the National Development Strategy 1, which underscores value addition and encourages effective standards, regulations and use of roadworthy vehicles that meet environmental and safety standards.
Source - sundaynews
