SUPPLY YOU SINCE 2008
APPROVED IMPORT AND EXPORT EXPERTS
Customs Excise Duty.
Clearance Guide.
This column focuses on clearance procedures for commercial importations and exportations with a bias on documents required and how clearance is done.
Commercial Importations
These are goods imported for commercial purposes by any individual or an organization. Clearance of such importations is done by a Bill of Entry which is processed in the ASYCUDA system; hence an importer should have a Business Partner Number which is activated for Customs purposes. The documentation is complex as mainly coded language is used hence the need to engage the services of a licensed clearing agent.
Documents required when clearing commercial importations include:
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Bill of Entry (Form 21)
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Suppliers’ invoices
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Export or Transit Bill of Entry from the country of export (where applicable)
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Bill of Lading (where applicable)
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Value Declaration Forms
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Rail Advice Notes
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Freight statements
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Insurance statement
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Invoices for port charges (where applicable)
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Original permits, licenses, duty free certificates, rebate letters, value rulings (where applicable)
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Agent/importer’s worksheet
*N.B: Copy of ITF 263 should be attached.
Calculation of Customs Excise Duty.
Duty is calculated on the basis of Cost, Insurance and Freight (CIF) value of the imported goods.
The CIF value of the imported goods is an aggregate of the cost of goods, insurance, freight and any other charges incurred outside Zimbabwe.
Completion, Submission and Clearance of Goods.
Calculations On Customs Excise Duty = (CIF Value x Duty Rate) + Excise Duty (if applicable)
Components
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CIF Value: Cost, Insurance, and Freight value of the imported goods.
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Duty Rate: Percentage rate of duty applicable to the imported goods, as specified in the Customs Tariff.
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Excise Duty: Additional duty levied on specific goods, such as alcohol, tobacco, and fuel.
Steps
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Determine the CIF Value: Calculate the total value of the imported goods, including cost, insurance, and freight.
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Identify the Duty Rate: Determine the applicable duty rate for the imported goods, using the Customs Tariff.
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Calculate the Customs Duty: Multiply the CIF Value by the Duty Rate.
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Add Excise Duty (if applicable): If the imported goods are subject to excise duty, add this amount to the customs duty.
Example
CIF Value: $10,000
Duty Rate: 20%
Excise Duty: $500 (applicable to specific goods)
Customs Excise Duty = ($10,000 x 20%) + $500 = $2,000 + $500 = $2,500
Clearance Procedure for Customs Excise Duty.
Clearance Procedure:
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Registration of Bill of Entry: A Bill of Entry (Form 21) is registered on Direct Trader Input.
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Submission of Documents: Two sets of documents are submitted, clearly marked "ZIMRA Copy" and "Importer's Copy" or "Exporter's Copy".
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Attachment of Supporting Documents: All supporting documents must be attached.
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Payment of Clearance Fee: A clearance fee (prescribed amount) is paid to Zimra (the current minimum is US$10.00 for a single line entry and inclusively charge on each additional line included).
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Processing and Assessment: Documents are processed, assessed, and if correct, a Release Order is issued.
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Inspection of Goods: If necessary, an Examination Order is issued, and an inspection is carried out to verify quantities, classification, origin, values, or any other aspect.
Additional Requirements:
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Importers without a tax clearance certificate (ITF 263) must pay a 10% Informal Cross Border Trader's Tax on the value for duty purposes.
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Agents must ensure sufficient funds in their ZIMRA account to cover duties and clearance fees.