Did you know that companies operating in Zimbabwe can benefit from the duty drawback system to enhance their productivity and competitiveness?

A duty drawback refers to obtaining a refund of Customs Duty paid on imported goods where the imported goods will be treated, processed, or incorporated in other goods for export; or are exported unused after their importation.

There are two types of duty drawback systems which are same state drawback and industrial drawback.

  1. Same state drawback:

This is when goods are initially imported and then exported unused in terms Section 120(1)(b) of the Customs and Excise Act (Chapter 23:02) as read with Section 99 of  the Customs and Excise (General) Regulations Statutory Instrument 154 of 2001. An example is where a company may order goods and pay duty for them on importation. If the company subsequently realises that there are anomalies in the goods imported or a wrong supply was made the company may export the goods unused and then apply for a refund of duty that would have been paid previously.

The following conditions should be met before the same state drawback of duty can be granted.

  • The goods must be exported unused.  Unused means not used in Zimbabwe.  A second-hand article imported into Zimbabwe but not actually used in the territory would still qualify for drawback of duty on export.
  • The goods must be exported within two years from the date on which duty was paid.
    • The goods must be exported from a custom house or customs post
  • Completion of Form 44 “Combined Payment and Application for Drawback of Duty Voucher” in triplicate at the time of exportation. The form can be downloaded from the ZIMRA website www.zimra.co.zw
  1. Industrial drawbacks:

This is a process where goods for example raw materials are imported for manufacture and then the finished goods are exported after a process of manufacture in terms of Customs and Excise Industrial Drawbacks Regulations Statutory Instrument 278A of 1991

The materials used in the manufacture must be accounted for to the satisfaction of the Commissioner General of the Zimbabwe Revenue Authority.

The following conditions should be met for Industrial Drawback of Duty

  • The documents used on importation of the materials must be endorsed that the goods are intended for manufacture and the finished goods will be exported under drawback at the time when clearance is made.
  • Companies manufacturing goods intended for export under drawback shall keep a stock book showing full details of goods imported and those manufactured
  • The Commissioner General of ZIMRA may determine the quantity of materials contained in the goods manufactured and this quantity shall be deemed to the quantity contained therein.