Detention of goods

THIS article focuses on when, how and on what goods are detained by the Zimbabwe Revenue Authority (ZIMRA) through issue of a Receipt for Items Held and Notice of Seizure.

1. Receipt for Items Held (RIH)

This is a receipt issued when goods are detained pending fulfilment of certain conditions by the owner of the goods. The circumstances when goods are detained on Receipt for Items Held are as follows:

a) When an importer properly declares dutiable goods but is unable to simultaneously pay the duties due.

b) When an importer or exporter properly declares controlled goods but does not have the required permit or licence for the goods.

c)When an importer or exporter properly declares goods but does not have adequate documentation to enable the clearance.

d)When goods are abandoned or when the importer or exporter is unknown.

e) Any other instances which warrant that the goods be detained.

1.1 Period of detention for goods on Receipt for Items Held

The owner of the detained goods is able to claim the goods upon fulfilment of the detention conditions within a maximum of sixty (60) days from the date of detention. Thereafter, ZIMRA can dispose of the goods through rummage sale or appropriation to the state.

2. Notice of Seizure

Goods are seized when they are the subject matter of an offence on importation or when an importer contravenes the provisions of the Customs and Excise Act (Chapter 23:02) and any other laws relating to Customs and Excise.

2.1 Some of the most common offences are:

a) Smuggling

b) False Declaration.

c) Forgery of documents for Customs and Excise purposes.

d) Bribery

e) Use of vehicle for smuggling purposes

f) Prohibited goods

2.2 Period of detention for seized goods

The goods are detained until such time when:

• The person from whom the goods were seized has made written representations to the Regional Manager for possible release of goods.

• The owner of the goods has met the conditions set out by the Commissioner.

Such time should not exceed ninety (90) days from the date the goods were seized. Thereafter, ZIMRA can dispose of the goods through various disposal methods, which are available.

3. Release of Detained Goods

Storage charges in the form of state warehouse rent for goods detained in a ZIMRA state warehouse are also payable and accrue from the date of detention to the release date. Please note that for goods held at a container depot, transit shed, or any other designated customs area, the storage charge applicable shall be that charged by the operator and the charge is paid to the operator.

4. How Are Goods Disposed of by ZIMRA?

The following are some of the disposal methods:

• Sale of goods through a public auction.

• Sale of goods through an informal tender.

• Destruction of perishable and dangerous goods.

• Appropriation to the state.

Please note that perishable goods and dangerous goods may also be sold out of hand before the expiry of the sixty or ninety-day period.

Covid-19 is real. Always remember to sanitise, wash your hands with water and soap. Stay safe.

My Taxes, My Duties: Building my Zimbabwe!

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.-chroniclecl.zw

Detention of goods

THIS article focuses on when, how and on what goods are detained by the Zimbabwe Revenue Authority (ZIMRA) through issue of a Receipt for Items Held and Notice of Seizure.

1. Receipt for Items Held (RIH)

This is a receipt issued when goods are detained pending fulfilment of certain conditions by the owner of the goods. The circumstances when goods are detained on Receipt for Items Held are as follows:

a) When an importer properly declares dutiable goods but is unable to simultaneously pay the duties due.

b) When an importer or exporter properly declares controlled goods but does not have the required permit or licence for the goods.

c)When an importer or exporter properly declares goods but does not have adequate documentation to enable the clearance.

d)When goods are abandoned or when the importer or exporter is unknown.

e) Any other instances which warrant that the goods be detained.

1.1 Period of detention for goods on Receipt for Items Held

The owner of the detained goods is able to claim the goods upon fulfilment of the detention conditions within a maximum of sixty (60) days from the date of detention. Thereafter, ZIMRA can dispose of the goods through rummage sale or appropriation to the state.

2. Notice of Seizure

Goods are seized when they are the subject matter of an offence on importation or when an importer contravenes the provisions of the Customs and Excise Act (Chapter 23:02) and any other laws relating to Customs and Excise.

2.1 Some of the most common offences are:

a) Smuggling

b) False Declaration.

c) Forgery of documents for Customs and Excise purposes.

d) Bribery

e) Use of vehicle for smuggling purposes

f) Prohibited goods

2.2 Period of detention for seized goods

The goods are detained until such time when:

• The person from whom the goods were seized has made written representations to the Regional Manager for possible release of goods.

• The owner of the goods has met the conditions set out by the Commissioner.

Such time should not exceed ninety (90) days from the date the goods were seized. Thereafter, ZIMRA can dispose of the goods through various disposal methods, which are available.

3. Release of Detained Goods

Storage charges in the form of state warehouse rent for goods detained in a ZIMRA state warehouse are also payable and accrue from the date of detention to the release date. Please note that for goods held at a container depot, transit shed, or any other designated customs area, the storage charge applicable shall be that charged by the operator and the charge is paid to the operator.

4. How Are Goods Disposed of by ZIMRA?

The following are some of the disposal methods:

• Sale of goods through a public auction.

• Sale of goods through an informal tender.

• Destruction of perishable and dangerous goods.

• Appropriation to the state.

Please note that perishable goods and dangerous goods may also be sold out of hand before the expiry of the sixty or ninety-day period.

Covid-19 is real. Always remember to sanitise, wash your hands with water and soap. Stay safe.

Payback the money

In a win for motorists, the High Court has set aside SI 161 of 2020. Government has been ordered to stop charging for vehicle registration plates in US dollars. And, it has been ordered to reimburse motorists who paid for new plates in foreign currency (US$) since July last year but failed to get them. With the registration plates still in short supply, there are  questions about what this money had been used for, and when motorists can expect their plates.   

Government sets deadline for second-hand car importers

LOCAL importers of second-hand light vehicles that are 10 years old or more have up to the end of next month to clear their cars following the gazetting of Statutory Instrument 89 of 2021.

The Government has announced that second-hand vehicle imports that are more than a decade old from the date of manufacture would not be allowed to enter the country on or after April 2, without a licence.

This means that such cars now need specific import licences for each vehicle, with importers attaching proof of payment when applying for the required licence.

In a statement issued this week, Industry and Commerce Minister Dr Sekai Nzenza said her Ministry in collaboration with the Zimbabwe Revenue Authority (Zimra) has come up with an administrative transitional arrangement to facilitate the clearance and speedy processing of vehicles bought before the gazetting of SI 89 of 2021.

“Following the promulgation of SI 89 of 2021 on the importation of second-hand cars that are more than 10 years old, the Ministry of Industry and Commerce, in collaboration with Zimra, has come up with an administrative transitional arrangement to facilitate the clearance and expedient processing of vehicles purchased prior to the gazetting of SI 89 of 2021,” she said.

“This administrative arrangement will apply from 22 April 2021 to 31st of May 2021, by which date all vehicles bought on or before 2 April 2021, should have been imported into the country.”

While importers of older vehicles now need to apply for a specific import licence, the Government 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.

ZIMRA to speed up clearance of second-hand cars bought before the ban

The Ministry of Commerce and ZIMRA have made a pact to speed up the processing and clearing of vehicles that were bought before the 10-year second-hand car ban or SI 89 of 2021 took effect.

Below is the statement delivered by Minister for Commerce Sekai Nzenza:

1. Following the promulgation of Statutory Instrument 89 of 2021 on the importation of second-hand cars that are more than 10 years old, the Ministry of Industry and Commerce, in collaboration with ZIMRA has come up with an administrative transitional arrangement: to facilitate the clearance and expedient processing of vehicles purchased prior to the gazetting of Statutory Instrument 89 of 2021.
2. The following criteria must be met to quality under this transition of Administration arrangement:
   I. The motor vehicles subject of the application must have been paid on or before 02 April 2021, II. Proof of payment in line with the RBZ Exchange Rate Control Regulations must be attached III. Any Other supporting documentation for the motor vehicle must be submitted.
3. This administrative arrangement will apply from 22 April 2021 to 31″ of May 2021, by which date all motor vehicles bought on or before 2 April 2021, should have been imported into the country. All clients arc hereby directed to contact ZIMRA for clearance purposes.
4. Anyone facing challenges in the clearance processes may contact Commissioner-General ZIMRA, Commissioner Customs and Excise or the Ministry of Industry and Commerce.

Ministry of Industry and Commerce emails are as follows;

Head Office Licence Office	micimport.exp@gmail.com
Bulawayo Province	micbyolicence@mailcom
Manicaland Province	micmanicaland@gmail.com
Mashonaland Central	binduramic@gmail.com
Mashonaland East	micmasheast@gmail.com
Mashonaland West	micchinhoyi@gmail.com
Masvingo Province	masvingomic@gmail.com
Matabeleland North	micmatnorth@gmail.com
Matabeleland South	gwandamic2@gmail.com
Midlands Province	micgweru@gmail.com

ZIMRA officials are available at the following emails:

• Jmujuru@zirnra.co.zw
• schauke@zimra.co.zw
• aswarres@zimra.co.zw
• ichamaomazimra.co.zw

5. All stakeholders are being reminded that SI 89 of 2021 requires prior approval for the importation of second hand vehicles (above 10 years), cement and sugar.

Vehicle Import Ban

The volume of second-hand vehicle imports coming into the country through the Beitbridge border post has started to fall since the beginning of this month.

This follows the introduction of tough regulations on the importation of pre-owned vehicles whose year of manufacture exceeds 10 years which took effect from April 2.

Under the new order, it is mandatory for those importing vehicles falling under such category to seek authorisation or apply for permits from the Ministry of Industry and Commerce.

Only those shipping in vehicles of commercial nature are exempt from seeking permits.

Zimbabwe Revenue Authority (Zimra) spokesperson Mr Francis Chimanda said they were now processing import documents for an average of 22 cars daily at Beitbridge.

These are being processed at Beitbridge, Malindi, and Manica Transit Sheds respectively.

“Prior to the implementation of Statutory Instrument 89 of 2021 on April 2, we would process import documents for 60 vehicles at Beitbridge per day. That has reduced to an average of 22 cars,” he said.

“Unfortunately, I cannot disclose the amount of revenue we are getting from vehicle imports since our system does not separate revenue from motor vehicles and that which is received from other goods”.

Mr Chimanda said they were also using the pre-clearance system to ensure a fast flow of goods at the country’s borders.

He said after the submission of all documents for assessment of duty, it may take an importer, a maximum of two hours depending on pressure and number of other assessments already submitted when the documents are received.

Mr Chimanda said after assessment, it is the duty of the respective importer/client to promptly pay and get a receipt of duty for onwards transmission to the carrier so that the vehicle can be loaded for delivery to Zimbabwe.

“Upon arrival at transit sheds, compliance checks are done by Zimra for issuance of relevant final import clearance documents and normally within a day, a client can do compliance check, get the documents, proceed to pay storage charges leading to the release of his or her vehicle,” said Mr Chimanda.

He said Zimra requires the importers to produce a purchase invoice, copy of identification card, SAD 500 (Export bill of entry from South Africa), SARS Notification (Release), declaration form 47 by the importer, and Import license (For vehicles 10 or more years old) for them to process the customs documents.

In case of rebates, Mr Chimanda said in addition to the above, the importer must have a rebate letter confirming that they have been allowed to import the vehicle under that specific rebate.

Rebate Of Duty On Goods Used In Mining Industry

The Zimbabwe Revenue Authority (ZIMRA) has announced that there is a Rebate of duty on goods imported by a person engaged in the mining industry. We present ZIMRA’s statement below.

According to Section 120 (1) (b) of the Customs and Excise Act Chapter 23:02 as read with Section 113(1) of Statutory Instrument 154 of 2001 (General Regulations) there is a rebate of duty on goods imported by a person engaged in the mining industry? The rebate is granted only in respect of the following goods which are imported or taken out of Bond by persons engaged in the Mining Industry;

a. Eucalyptus, pine and other oils for use in the extraction of gold and other minerals by the flotation process

b. Chemical substances, other than spirits, methylated spirits, fuel oils, lubricants and nitrate of lead, for use in any process for the concentration or refining of ore, or for assay or research purposes.

c. To benefit from this rebate, client should submit to the nearest ZIMRA office for onward transmission to the Regional office or direct to the Regional office, the documents listed below:

d. Application Letter

e. Letter of Undertaking to the effect that the articles shall be used solely for the purpose for which the rebate is granted and if they are sold or otherwise disposed of the duty rebated shall be paid forthwith to the Commissioner

f. Proforma Invoice showing the Full Description and Quantity of the Goods to be imported under the rebate

g. End User’s Certificate

h. A letter from the Mining Commission to Confirm the Existence of that Mine.

i. Current (Valid) Tax ClearanceAt the time of the clearance of the goods, the importer shall be required to attach the Rebate Letter to the bill of entry form 21. The respective Regional Office shall issue a Rebate Letter specific to the Products listed in the Application and the Proforma Invoice.

Temporary Import Permit (TIP)

Documentation required for processing Temporary Import Permit (TIP) for a car. • Valid driver’s passport clearly indicating the duration of stay in Zimbabwe (as shown by immigration stamp and endorsement)• Registration book of the motor vehicle and trailer (if applicable). • Police clearance if from any other country other than Mozambique.  • Affidavit/ letter of authority from the owner of the car and/or trailer if not owner driven. • Valid work permit/ permanent resident permit if driver is a Zimbabwean.  • Vehicle should be in good condition and road worthy .Types of vehicles eligible for (online) Temporary Import Permit (TIP)  • Passenger type (light) motor vehicles commonly known as sedans, station wagons, and motorcycles.  • Goods carrying motor- vehicles with a gross vehicle weight not exceeding five tones such as pick-ups and double cabs.  • Passenger carrying motor vehicles with a seating capacity not exceeding 15 people including the driver.  • Trailers, boat trailer and caravans being pulled by the vehicles mentioned above. What are the fees and charges payable?  • USD10.00 Road Access Fee each time the vehicle enters the country.  • US$30.00 Third party insurance per month and for each subsequent month the vehicle stays in the country.  • USD10.00 Carbon Tax per month and for each subsequent month the vehicle stays in the country. There are other charges like gate pass fee (Beitbridge) and Commercial Vehicle Guarantee (CVG) if the car is hired or a commercial vehicle .Zimra introduced an online Temporary Import Permit (TIP) which you can fill in online to lessen the time you spend at the border. We can help you (if you have all documentation in order) to apply for an online Temporary Import Permit if you send us the following: a. Copy of Certificate of Registration for the car and or trailer. b. Copy of your passport including where the permit/visa is. c. Your permanent address in the foreign country, e.g. South Africa d. The address of where you are going to visit in Zimbabwe or if you are in transit. e. The vehicle and/or trailer registration numbers. f. Expected date of travelg. Engine capacity h. Intended Port of entry into Zimbabwe i. Type of body (sedan/hatchback/double cab) j. Registration number of the car and/or trailer k. Your contact mobile number and email (optional)

ATAF launches Women in Tax Network to promote gender equality

THE African Tax Administration Forum (ATAF) has launched a Women in Tax Network, an initiative aimed at increasing the role of women in taxation and their contribution to national economies in the region.

The establishment of the network is significant as Africa works towards meeting the UN’s Sustainable Development Goals, as part of Agenda 2030 for Sustainable Development with gender equality as a goal enshrined in SDG number five.

Taxation and gender equality have strategic importance to developing countries in general, and Africa in particular.

Both tax and gender equality occupy prime position in the development agendas of nations, hence the need to ensure equal opportunities for both male and female.

“Mainstreaming gender equality is essential in the development and review of tax policies and administration, as the former supports an improved livelihood, while the latter fosters technical competence,” said ATAF in an outcome statement following the virtual launch of the new network on Tuesday.

“Tax policies affect men and women differently and the impact of tax on the different genders has not been fully examined, particularly with regards to the African continent, and focused research in this regard is urgently required.

“The potential and existing links between tax policy and gender equality have largely been ignored in development cooperation.”

The thrust towards gender equality is clearly highlighted in the African Union’s Agenda 2063 Goal 17 where aspiration six is for “an Africa whose development is people driven, relying on the potential offered by African people, especially its women and youth, and caring for children”.

ATAF in collaboration with the African Development Bank (AfDB), organised the event, which attracted over 500 participants from revenue administrations and treasury executives frim the continent, policy experts, among other key stakeholders.

In order to promote sustainable economic growth and poverty reduction, participants said policy interventions in the area of taxation should not negatively affect the outcomes of gender equality.

“The ATAF Women in Tax Network is an opportunity to reflect on the road ahead, what remains to be done in pursuit of gender equality and strategise on harnessing the collective energy of African women in tax related fields by targeting to boost their technical skills and to address gender equality in taxation on our ccontinent,” said ATAF.

The meeting took note of the complexities surrounding gender balance in revenue administrations. The participants deliberated on the relatively high percentage of females in the overall staff complement of tax administrations vis a vis the small number in senior management positions or core technical areas. They concluded that countries need to consider ways to improve their attempts to achieve greater gender equality.

The virtual forum also discussed how African governments can ensure that tax policies and fiscal administrations are gender-sensitive, gender-responsive or gender-transformative by bringing in desired shifts in roles

NEW REGULATIONS ON IMPORTATION OF SECOND HAND VEHICLES

THE PRESS STATEMENT

1.0 INTRODUCTION

1.1 In line with the Control of Goods (Import and Export) (Commerce) (Amendment) Regulations, 2021 (No. 9), and following the 2021 National Budget Statement, the Government gazetted Statutory Instrument 89 of 2021 on the 2^nd of April 2021. The Statutory Instrument has removed Second Hand Motor Vehicles aged 10 years and above from the date of manufacture at the time of importation, from the Open General Import License. It also removes Sugar and Cement from the Open General Import License.

2.0 ADMINISTRATION OF SI 89 OF 2021

2.1 Importation of Second Hand Motor Vehicles which are 10 years and above, from the date of manufacture, will now require consideration for import licenses. This measure is in line with the NDSI, which underscores value addition and encourages effective standards, regulations, and the use of roadworthy vehicles that meet environmental and safety standards.

2.2 Commercial vehicles (tractors, haulage trucks, earth moving equipment) and other specialized vehicles used in mining and construction shall be exempted.

2.3 Importation of Sugar and Cement will also require consideration for import licenses. Sweets are exempted from the import license requirement.

3.0 WAY FORWARD

The Ministry is therefore advising that:

3.1 Clients whose motor vehicles were bought on or before 2 April 2021 will be required to apply for import licenses at the Ministry of Industry and Commerce, attaching proof of payment;

3.2 Clients whose consignments on sugar and cement were bought on or before 2 April 2021 will be considered for import licenses.

3.3 In line with decentralization, clients who meet requirements in 3.1 and 3.2 above will have to make their applications at the Ministry of Industry and Commerce offices at:

Harare – micimport.exp@gmail.com

Bulawayo – micbyolicence@gmail.com

Gweru – micgweru@gmail.com

Mutare – micmanicaland@gmail.com

Masvingo – masvingomic@gmail.com

3.4 Please be advised that there is an e-licencing platform (https://zimservices.pfms.gov.zw) that can be used by importers and exporters.

3.5 For enquiries you can contact the following:

Harare

Mr Sandauke – 0772 874 213

Mr Gowora – 0774 099 514

Mr Mukanjari – 0773 029 506

Bulawayo

Mr Gopoza – 0783 871 460

Mr Dingiswayo – 0774 493 194

Gweru

Mr Mtisi – 0775 856 903

SOMETHING TO TALK ABOUT

STICKY ISSUES

It seems somewhat unfair that individuals who had already bought vehicles shall be expected to get import licenses. Do not lose sight of the fact that it shall not be automatic that once you apply for it you will get it. It is quite possible to not get the license and not forgetting that it is an extra cost some people had not anticipated. Just so know it is not just in writing alone; there are people already whose vehicles have been said cannot pass through until they get the import license. The SI is already in motion as we speak. However, I actually heard someone lamenting that the system is not yet operating for people to actually apply for the import licenses.

HEFTY FINES INVOLVED

If one does not abide by the SI is reported that there is some heavy fine involved. This will even be exacerbated by the fact the individual in question will have to part with money for the storage of the vehicle. Just imagine – the more the days, the more the extra cost.

WHAT HAPPENS TO HELD VEHICLES

So what happens to vehicles that get held? Normal practice is that there comes a time they have to be sold if unpaid for. Will this not contradict the whole rationale behind the SI? Especially given that they would most likely be sold here in Zimbabwe. That would be interesting to see what happens.

THE THRUST APPEARS GOOD BUT…

BALANCE IT OUT

Overall this SI seems geared towards discouraging imports. Well, in a couple of ways that are noble because these second-hand vehicles are to blame for so many negative things locally. In some way, Zimbabwe is being used as a dumping site for used vehicles. Thus discouraging second vehicle imports would in theory be a noble thing. However, this has to be balanced out by a local vehicle manufacturing or assembling industry. If locally there is no proper industry it would not make sense to then discourage imports. Given the Zimbabwean economy, most Zimbabweans cannot afford to import brand new vehicles. So a balance must definitely be struck.

COULD THIS NOT BE ANOTHER CORRUPTION LOOPHOLE

Recently I looked at the new vehicle clearance process that ZIMRA reviewed. The major highlight is that there is no longer a need to print out CCCs i.e. Certificate of Customs Clearance. It will just be checked in the computerised system be it by ZIMRA or CVR. This was welcome in that it will significantly eliminate the incidence of customs officials demanding bribes for CCCs issuances to be expedited.

Now with the requirement of import licenses, you cannot help but feel this will be another way that can be used to make money through bribes. I am quite sure there is a way some individuals will use this new arrangement to line up there their pockets. Let us wait and see.