Zimbabwe restores duty on imported basic commodities

THE Government has restored the payment of import duty on selected basic goods, which fall away from the customs traveller's rebate.
A traveller's rebate is a duty-free allowance, which is granted to travellers subject to prescribed conditions. It is divided into two categories namely total rebate and partial rebate.

Under the new order, duty is now payable on the basic goods effective today. These include cooking oil, maize meal, milk, sugar, rice, flour, salt, bath soap, laundry soap, washing soap, washing powder, toothpaste and petroleum jelly, which now attract an import duty with effect from 1 February, 2024.

The regulations are contained in Statutory Instrument 10A of 2024) Customs and Excise (Suspension) (Amendment) Regulations, 2024) (no 272) that was gazetted on Thursday following the expiry of an olive branch, which was extended to importers by the Government in June last year and ended on January 31.

"The Minister of Finance, Economic Development and Investment Promotion, in terms of Section 235 as read with Section 120 of the Customs and Excise Act [Chapter 23:02], has made the following regulations: — 1. These regulations may be cited as the Customs and Excise (Suspension) (Amendment) Regulations, 2024 (No. 272) …. 2. The Customs and Excise (Suspension) Regulations, 2003, published in Statutory Instrument 257 of 2003 (hereinafter called "the principal regulations"), are amended by the repeal of section 9I (Suspension of duty on Cooking Oil, Maize meal, Milk, Sugar, Rice, Flour, Salt, Bath Soap, Laundry Soap, Washing Soap, Washing Powder, Toothpaste and Petroleum Jelly) with effect from 1st February, 2024," read part of the Statutory Instrument.

In June last year the Government lifted all restrictions on the importation of basic commodities to boost market supplies and granted a 100 percent retention of domestic foreign currency earnings.

Prior to the latest development goods were paying import duty and levies up to 40 percent. However, under the new import regulations travellers may import the basic goods for personal consumption provided they fall under the travellers' rebate category.

The new law affects those items falling out of the traveller's rebate such as commercial goods or goods for resale will there pay duty.

In addition, all other import requirements must be fulfilled, for instance an import permit from the Ministry of Agriculture is required for mealie meal imports falling outside the traveller's rebate, which currently stands at US$200.

According to the country's customs regulations, a total rebate is an allowance granted on all used personal effects.

These include articles pertaining to or carried upon the body such as used clothes and toilet requisites but excludes such articles as radios and cameras, among others.

The partial rebate is an allowance granted on goods imported by a traveller once a month on the date of his/her first entry into Zimbabwe in that calendar month on condition that: – goods are properly declared, goods are not for resale or of a commercial nature, the value of goods does not exceed us$200.