By Thupeyo Muleya
Beitbridge 10 February 2011
The number of vehicles being imported from various countries across the globe into the country through Beitbridge border post has drastically increased following the decision by Government to review excise duty in this year’s fiscal budget, an official has said.
It is understood that the Zimbabwe Revenue Authority (Zimra) has been working extra hard to clear the vehicles which continue to trickle in as importers seek to benefit from the new importation rates.
In an interview yesterday, Zimra’s Commissioner responsible for Legal and Corporate Affairs, Ms Florence Jambwa said that they had recorded a significant increase in the number of car imports since the beginning of this year.
She said, “The number of vehicles imported through Beitbridge Border Post has gone up significantly since January 2011 mainly due to the fact that many importers delayed the delivery of vehicles they bought last year to this year so as to benefit from the new rates of duty effective 1st January 2011.
“At Beitbridge Border Post, 3150 vehicle submissions have been made for the month of January 2011 compared to 2310 vehicles imported in January 2010. There has been a marked increase of 840 vehicles imported in January this year compared to the same period last year.
“On average, we handle about 15 car carriers per day translating to 101 vehicles that we clear per day.
“There are peak periods for arrival of car carriers especially Thursdays and Fridays and on these days we handle about 30 carriers per day translating to about 150 vehicles cleared per day on these days.
Ms Jambwa added that the government had reviewed excise duty for cars with an engine capacity of between 1000cc and 1500cc to 25 percent , while that for cars with engine capacity exceeding 1500cc was reduced to 40 percent.
“Cars with the engine capacity of between 1000cc and 1500cc now attract excise duty of 25%, Value added tax (VAT) 15% and a surtax of 25% that is if the vehicle is more than 5 years old. In the case of the vehicle s with engine capacities exceeding 1500cc will attract a customs duty of 40%, VAT of 15% and a surtax charge of 25% if the are more than 5 years old.
“In essence the reduction of Customs Duty brought about by the November 2011 Budget means that car importers now pay a total of 80% or 55% (if vehicle is not more than 5 years old) for the vehicles with engine capacities exceeding 1500cc as compared to a total of 100% or 75% which they were being charged last year.”
She said the authority was equal to the task although they were faced with challenges of vehicles piling up at the vehicle workstation adding that they were in the process of moving all the clearance processes at Manica Bonded Warehouse.
Last year the parastatal moved the clearance of all imported vehicles from the Customs yard in a bid to decongest the border post after a number of importers were dumping their cars there after failing to pay duty.
The vehicles are charged $25 handling fee at the new ware house and attract $10 per day at the EPZ warehouse and this has seen most importers clearing their cars expeditiously. Failure to pay the calculated duty in 3 months would see the cars being sold at a rummage sale.
“The challenge we are facing as Zimra is that of congestion at the vehicle clearance workstation. With that in mind we intend to move all the clearance processes to one office at Manica Bonded Warehouse. This arrangement will ensure that the clearance process are done expeditiously and will also help decongest the area”, said Ms Jambwa.
She said they were also working towards reducing the time importers spent at the border post processing the clearance of their vehicles. On average some people spend between two and three days to get their vehicles cleared at the border post.
Most of these cars are being purchased at SRP Shipping and Car Junction, all in Durban South Africa, while some are being purchased directly from Dubai, Japan, Singapore, The United Kingdom and the US.
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