The Commissioner General of the Zimbabwe Revenue Authority (ZIMRA) would like to clarify the impact on duty calculations resulting from the recently promulgated Statutory Instruments 32 and 33.

 

The rates of calculation of duty are as contained in the Customs and Excise (Tariff) Notice, Statutory Instrument 53 of 2017. The value for duty purposes is determined by applying the prevailing exchange rate on the Cost Insurance and Freight (CIF) values of the goods being imported as contained in the invoices issued in the country of supply or export.

 

 

There are three methods of calculation of duty namely ad valorem, specific and a combination of the two rates.

 

For duty calculations using the ad valorem method, the rate of duty is applied on the value for duty purposes to arrive at the duty payable. For such transactions, the value for duty purposes will now be computed based on the revalued Real Time Gross Settlement (RTGS) dollar value.

 

For duty computations using specific rates of duty, such rates are denominated in the newly introduced RTGS dollar. Therefore, such duty calculation transactions will not be affected by the recent legislative changes. Examples of products on which specific duty rates are applied are petrol, diesel, paraffin, wine and cement.

 

For duty computations that are based on combination rates of duty, these include both ad valorem and specific rates, therefore the impact on each rate is as explained above.

 

For designated goods which require duty to be paid in foreign currency as provided for in Statutory Instrument 252A of 2018, the duty calculation remains in foreign currency, and as such the duty payable will be unchanged.

 

 

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.

 

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