This document outlines and explains the treatment of insurance in determining the value for duty under the transaction value method, in accordance with section 106 of the Customs and Excise Act.

Explanation of terms

The definition of insurance is provided for in section 2 of the Customs and Excise Act (Chapter 23:02) as, “in relation to the cost, insurance, freight value of any goods, means any costs, charges and expenses of or associated with the insurance of the goods from the place of export in the country of exportation to the place of importation in Zimbabwe”

The valuation of goods imported into Zimbabwe for Customs purposes are on a cost, insurance and freight basis, thus the insurance costs related to the transport of the imported goods should be included in the Customs value.

Section 113 (2) (c) (iii) of the Customs Act specifies the rate of one percent of the Free On Board (F.O.B) value to be the deemed cost of insurance for goods transported by any means other than air transport and post. The rate is applicable were:

  1. Goods are not insured, or
  2. Documentary evidence for the premium is not produced, is not adequate or satisfactory; or
  3. The importer has paid insurance charges in excess of one percent of the FOB value.

Imports by Air

In terms of Section 113 (2) (c) (i) of the Customs and Excise Act, the cost of freight and insurance for goods transported by air shall be deemed to be 15% of the free on board value of the goods to be valued plus any other charges and expenses referred to in Section 113 (2) (b) unless the importer satisfies the proper officer to the contrary.

Imports by Post

Section 113 (2) (d) of the Customs and Excise Act provides that for goods imported by post, the postage, insurance and any charges reflected on the parcel shall be included in the value for duty purposes. If the postage and insurance cannot be ascertained or where the stamps have fallen off, the total postage and insurance shall be deemed to 15% of the free on board (FOB) value of the goods to be valued.

The onus is therefore on the importer or his agent to declare and produce documentary evidence of the insurance paid.

Please click on the hyperlink below for detailed information regarding Zimbabwe Customs valuation system:

Valuation manual:

Customs and Excise Act [Chapter 23:02]:


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, (ZIMRA).