Rebate of duty on donated goods in Zim

22 Mar, 2019 - 00:03 0 Views

The ManicaPost

Zimbabwe is amongst the Southern African countries that were affected by Cyclone Idai which caused a trial of destruction that has affected human and animal life, and infrastructure.

The President of Zimbabwe made an appeal to individuals, corporates, civic society and international community to provide assistance to the affected communities mainly in Chimanimani, Chipinge and Bikita.

The Zimbabwe Revenue Authority (ZIMRA) administers regulations which give relief on duties on imported goods donated by international organisations, and to associations and organisations in Zimbabwe involved in charitable or welfare, in terms of Sections 103 and 124 of the Customs and Excise (General) Regulations published in Statutory Instrument 154 of 2001, respectively. The qualifying goods should be for free distribution to people in need. Interested organisations are encouraged to take advantage of these rebates provided for in the cited sections of Regulations in order to reduce any burden of duty payments at this time of need.

  1. Section 124 of the Customs and Excise (General) Regulations covers goods that are donated to and imported by associations and organisations in Zimbabwe which are involved in charitable or welfare work.

These goods may be imported duty free and VAT free.

1.1 Organisations eligible to enjoy the rebate

  1. a) Organisations and associations involved in charitable or welfare work and registered with the responsible authority being the Department of Social Services falling under the Ministry of Labour and Social Services.
  2. b) These organisations should be registered under the Private Voluntary Organisations (PVO) Act Chapter 17:05 and be in possession of a PVO Number.

1.2 Goods that qualify

  1. a) All goods provided they are fully donated.
  2. b) Vehicles such as passenger type, commonly known as sedans and station wagons, passenger carrying vehicles such as buses, minibuses and the like; and other goods carrying vehicles.

1.3 Exclusions

The rebate of duty does not apply in the following circumstances:

  1. a) Goods purchased from funds obtained from local banking institutions or from local branches of banking institutions registered and operating in Zimbabwe whether or not the funds were donated unless there is proof that the funds were deposited into local banking institutions from a foreign source in order to purchase goods for the use of the charitable organisation
  2. b) Second hand or used motor vehicles
  3. c) Road Tractors (“horses” for pulling trailers), agricultural tractors, special purpose motor vehicles such as works trucks, concrete mixers and the like, and motor cycles
  4. d) New clothing, new shoes and new bed linen
  5. e) All foodstuffs except where the Minister has directed the Commissioner General to grant the rebate. Foodstuffs can only enjoy the rebate after the Minister of Finance and Economic Development has granted such consent.

1.4 Application procedure

Prior to importation of the donated goods, the organisation or association should submit an application, at the nearest ZIMRA office with written particulars of:

  1. a) the objects of the association or organisation
  2. b) the goods in respect of which a rebate is sought, which is the full description of the goods; and
  3. c) the use to which the goods are to be put; and
  4. d) evidence of the donation, this could be in the form of a certificate of donation; and
  5. e) evidence of purchase of goods by a foreign organisation which is donating the goods. This shall not apply to goods that were not purchased; and
  6. f) a declaration to the effect that the goods are being imported solely for the purpose of furthering the objectives of the association or organisation; and
  7. g) an undertaking that the goods will not be sold or be disposed of in Zimbabwe without the prior written permission of the Commissioner and the payment of such duty as maybe due; and
  8. h) any other details required by the Commissioner.
  9. i) The above should be accompanied by the certificate of registration with Social Services Department.

The document containing the objectives of the association or organisation, maybe in the form of a trust deed or constitution or any other document that creates the particular organisation or association.

Upon fulfilling the above conditions, a rebate letter will be issued by the Commissioner.

1.5 Clearance of Goods

The goods should be cleared at the Customs office through which the goods are imported. However clearance should be done through a ZIMRA registered clearing agent and all the documents required should be attached.

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. To contact ZIMRA: WhatsApp line : +263 782 729 862  Visit our website : www. zimra.co.zw Follow us on Twitter : @Zimra_11 Like us on Facebook : www.facebook.com/ZIMRA.11 Send us an e-mail : [email protected]/[email protected] Call us (Head Office) : 04 –758891/5; 790813; 790814; 781345; 751624; 752731  e-TIP : http://ecustoms.zimra.co.zw/etip/

 

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