29/01/2020
We are all importing every now and then, and as common as you think this sounds, here is a quick fact. The latest value for Current account balance (BoP, current US$) in Zimbabwe was ($307,810,900) as of 2017(Index Mundi). Increasing exponentially since then. To think of it, you have to pay duty whenever you procure beyond Zimbabwe, if unless otherwise the law deems the product as exempt or zero-rated.
Thus to determine the value for duty purposes, the following adjustments are made to the amount actually paid or payable for the commodity being imported in reference to the Customs and Excise Act, Chapter 23 02_Updated.
1)In determing the value for duty purposes on any imported goods in reference to Section 106 of the aforementioned act, there shall be added to the amount actually paid or payable for the goods.
a)The following to the extent to which they are incurred by the buyer and are not included in the price actually paid or payable for the goods:
i) Commission or brokerage except buying commission incurred in the actual purchase of the goods.
ii) The cost of containers which are treated as being one for customs purposes with the goods in question.
iii) The cost of packing i.e labour and materials.
and
The value, apportioned to the imported goods as considered appropriate by the Commissioner, of any of
the following goods and services if supplied directly or indirectly by the importer free of charge or at reduced cost, for use in connection with the production and sale for export of the imported goods, to the
extent that such value has not been included in the price actually paid or payable—
(i) materials, components, parts and similar items incorporated in the goods to be valued; and
(ii) tools, dies, moulds and similar articles used in the production of the goods to be valued; and
(iii) materials consumed in the production of the goods to be valued; and
(iv) engineering, development work, art work, design work, plans and sketches undertaken elsewhere
than in Zimbabwe and necessary for the production of the goods to be valued;
(c) royalties and licence fees, including any payments for patents, trade marks or copyright and for the right
to distribute or resell the goods, but not including charges for the right to reproduce the goods in Zimbabwe, which the buyer is required to pay, directly or indirectly, as a condition of sale of the goods for
export to Zimbabwe, to the extent that such royalties and fees are not included in the price actually paid
or payable for the goods to be valued; and
(d) the value of any part of the proceeds of any subsequent resale disposal or use of the goods to be valued
that accrues directly or indirectly to the seller.
(2) In determining the value for duty purposes of any imported goods in terms of sections one hundred and
six to one hundred and twelve, there shall be added to the price actually paid or payable for the goods—
(a) the cost of transport and insurance from the place of manufacture to the place of export and all other
charges and expenses incidental to placing the goods on board the means of transport by which the
[email protected] are removed from the country of exportation, if such cost is not included in the price actually paid
or payable for the goods to be valued; and
(b) if the goods in question have to be exported to Zimbabwe through another country, freight, insurance
and other charges from the country of supply to the country where the goods are placed on board the
means of transport for direct transportation to Zimbabwe, if such cost is not included in the price actually paid or payable for the goods to be valued; and
(c) the cost of freight and insurance from the place where the goods were placed on board the means of
transport by which they were removed to Zimbabwe to the place of importation in Zimbabwe, if such
cost is not included in the price actually paid or payable for the goods to be valued:
Provided that—
(i) where the goods to be valued were imported by air transport, the cost of freight and insurance
shall be deemed to be fifteen per centum of the free on board value of the goods to be valued
plus any charges and expenses referred to in paragraph (b), unless the importer satisfies the
proper officer to the contrary;
(ii) where the goods to be valued were imported by air transport free of charge or at reduced cost or
are commercial goods brought in as passengers’ baggage, the cost of freight and insurance shall
be deemed to be fifteen per centum of the free on board value of the goods to be valued plus
charges and expenses referred to in paragraph (b);
(iii) where the goods to be valued were imported by any transport other than air transport, the cost of
insurance shall be deemed to be one per centum of the free on board value of the goods to be
valued unless the importer satisfies the proper officer to the contrary;
(iv) where the goods to be valued were imported by any transport, other than air transport, free of
charge, or at reduced cost or are commercial goods brought in as passengers’ baggage or by
means of transport owned by the importer and there is no documentary evidence of the delivery
cost from the place where the goods are loaded into the importer’s means of transport, the cost of
freight shall be deemed to be—
A. five per centum of the free onboard value of goods, in addition to the proved sea, air or
other freight charges from the country of original export, where applicable, when the
goods were transported from Botswana, South Africa, Lesotho, Swaziland, Mozambique,
Zambia, Namibia or Malawi;
B. seven and one-half per centum of the free on board value of the goods, in addition to the
proved sea, air or other freight charges from the country of original export, where applicable, when the goods were transported from any country in Africa other than a country
referred to in paragraph A of this proviso;
(v) an importer shall, on demand, produce to an officer a statement of air, sea and other freight
charges whenever goods referred to in subparagraph A or B of proviso (iv) are to be valued; and
(d) in the case of goods imported by post, all charges for postage and insurance which are reflected on or in
any document accompanying the postal article:
Provided that, where the postage and insurance cannot be ascertained in this manner, the postage
and insurance shall be deemed to be fifteen per centum of the free on board value of the goods to be valued.
(3) In determining the value for duty purposes of any imported goods in terms of sections one hundred and
six to one hundred and twelve, there shall be deducted from the price actually paid or payable for the goods, to the
extent that they are included therein amounts equal to—
(a) the cost of transportation, loading, unloading, handling, insurance and associated costs incidental to the
transportation of the goods within Zimbabwe from their place of importation; and
(b) buying commission, if identified separately from the price actually paid or payable for the goods.
