The shortage of consumer goods from formal wholesalers and retailers is partly due to ongoing anti-smuggling operations by a multi-sectoral taskforce, a senior official has stated.
The Ministry of Industry and Commerce is leading the taskforce, which includes ZIMRA, the Zimbabwe Republic Police (ZRP), the Reserve Bank of Zimbabwe (RBZ), the Consumer Protection Commission, and other law-enforcement agencies.
George Charamba, spokesperson for the Presidency, commented on the recently promulgated Customs and Excise (Designated Deemed Smuggled Goods) Regulations, 2025.
These regulations require manufacturers, wholesalers, and retailers to provide proof that customs duty has been paid for goods in their possession.
Charamba revealed that ZIMRA is currently holding 30-tonne loads of consumer goods sourced from South Africa, intended for smuggling into Zimbabwe. Charamba posted on X:
<blockquote>
What you may not know is that ZIMRA is holding 30-tonne loads upon loads of consumer goods sourced in SA and meant to be smuggled into Zimbabwe. These trucks belonged to different wholesalers and retailers.
The low stock levels we see in the formal market are partly related to management issues and partly to impounded contraband from the ongoing anti-smuggling operations. We know where we are going; there will be order in the market. Trust us!
</blockquote>
Over the weekend, ZIMRA Commissioner-General Regina Chinamasa said that ZIMRA impounded goods valued at approximately US$2.4 million and state warehouses are at full capacity with recovered goods.

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ZIMRA is stopping people from smuggling goods into Zimbabwe, which is causing a shortage of items in stores. The taskforce includes different agencies working together to stop smuggling. The government is requiring businesses to show proof that they paid customs duty for their goods. ZIMRA has impounded a lot of goods from South Africa that were meant to be smuggled. The market will become more organized once the smuggling is stopped. ZIMRA has impounded goods worth $2.4 million and their warehouses are full. The government is working to fix the problem.

ZIMRA’s Smuggling Crackdown Blamed For Empty Shop Shelves

The government has introduced new regulations that presume certain goods to be smuggled unless the owners can provide evidence of customs duty payment.
Under the Customs and Excise (Designated Deemed Smuggled Goods) Regulations, 2025, any manufacturer, wholesaler, retailer, or consumer found in possession of designated goods without proof of duty payment to ZIMRA will be considered to have smuggled the goods. They will be liable for the payment of the duty, along with any applicable penalties.
The designated goods include alcoholic and non-alcoholic beverages, cement, clothing, footwear, dairy products, diapers, electrical appliances, cables, ploughs and their parts, processed meat, rice, pasta, sugar, tyres, motor spares, washing powder, detergents, biscuits, sweets, and laundry soaps.
The regulation doesn’t target consumers but traders and manufacturers. It says:
<blockquote>
For the avoidance of doubt, no customer shall be required to produce proof of payment of duty on imported goods purchased from a local manufacturer, wholesaler or retailer.
It shall be the responsibility of the person who would have imported the goods or the manufacturer (in the case of such imported goods used as inputs into production), wholesaler or retailer of such imported goods to provide satisfactory documentary evidence to the extent that the goods have been properly imported.
</blockquote>
<img alt="Image" decoding="async" src="https://pbs.twimg.com/media/GiTqx9cWQAANe-N?format=jpg&amp;name=small"/>

The government made new rules to stop smuggling goods. If people have certain things without proof of paying customs duty, it will be assumed they smuggled them. The list includes drinks, clothes, food, electronics, and more. People can't ask customers for proof, but makers and sellers must show proof for imported goods. If caught, they must pay the duty and fees. This rule is for companies, not regular people buying things. The goal is to stop smuggling and make sure taxes are paid.

Government Imposes New Regulations To Combat Smuggling

The government has suspended customs duty on semi-knocked down (SKD) single and double cab motor vehicle kits imported or taken out of bond by an approved assembler for the assembly of single and double cab motor vehicles.
This suspension will be in effect for five years, from January 1, 2025, to December 31, 2029.
According to Statutory Instrument 194 of 2024, published in the Government Gazette on December 30, 2024, Treasury has also suspended customs duty on semi-knocked down bus kits imported or taken out of bond by an approved assembler for the assembly of buses.
This suspension will also be in effect for five years, from January 1, 2025, to December 31, 2029. The SI states:
<blockquote>
IT is hereby notified that the Minister of Finance, Economic Development and Investment Promotion has, in terms of section 235 as read with section 120 of the Customs and Excise Act [Chapter 23:02], made the following regulations:-
1. These regulations may be cited as the Customs and Excise (Suspension) (Amendment) Regulations, 2024 (No. 277).
2. These regulations shall come into effect on 1st January, 2025.
3. The Customs and Excise (Suspension) Regulations, 2003, published in Statutory Instrument 257 of 2003 (hereinafter called “the principal regulations”), are amended as follows-
(a) in section 9V (“Suspension of duty on semi-knocked down (SKD) single and double cab motor vehicle kits imported by approved assembler“) by the deletion of subsection (7) and substitution of-
“(7) Customs duty is suspended to a rate of zero per centum on SKD single and double cab motor vehicle kits imported or taken out of bond by an approved assembler for use in the assembly of single and double cab motor vehicles in terms of this section for a period of five years from 1st January, 2025 to 31st December, 2029.”;
(b) by the insertion in section 9HH “Suspension of duty on public service buses imported by approved importers” of following-
“With effect from 1st January, 2025, duty suspension shall only apply to public services buses that were purchased on or before 28th November, 2024, and cleared for consumption by 14th February 2025. Thereafter the suspension of duty provided under this section shall cease and duty shall be payable on all public service buses imported into Zimbabwe.”
(c) in section 9KK (“Suspension of duty on semi-knocked down (SKD) bus kits imported by approved assembler”) by the deletion in of subsection (2) and substitution of-
“(2) Customs duty is suspended to a rate of zero per centum on SKD bus kits imported or taken out of bond by an approved assembler for use in the assembly of buses in terms of this section for a period of five years from 1st January, 2025 to 31st December, 2029.”
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

The government has stopped charging taxes on vehicle kits for five years.
This means that companies can import parts to build cars without paying extra money to the government.
The new rules will start on January 1, 2025, and end on December 31, 2029.
This will help car companies save money, so they might be able to sell cars for cheaper.
The idea is to boost the car industry in Zimbabwe.
Companies that make buses will also benefit from this new rule.

Government Suspends Customs Duty On Vehicle Kits For Five Years

On May 29th, 2023, Zimbabwe’s Minister of Finance and Economic Development, Professor Mthuli Ncube, issued a directive requiring all <a class="MarkdownLink_linkifiedLink__KxC9G">customs duty</a> to be paid in local currency. This directive is part of additional measures introduced by the minister to stabilize the country’s macroeconomy and the rapidly depreciating <a class="MarkdownLink_linkifiedLink__KxC9G">local currency</a>.
As per the directive, seen by Pindula News, all government agencies and parastatals are required to collect their fees in local currency, and non-exporters will be required to pay ZESA in the local currency. While all customs duty will have to be paid in local currency, exceptions will be made for designated or luxury goods, and importers may choose to pay in foreign currency. Here are excerpts from the minister’s statement:
<blockquote>
Promotion of use of the domestic currency:
i. All Government Agencies including Parastatals will substantially now collect their fees in local currency;
ii. Payments to ZESA by non-exporters will be made in the local currency; and
ii. All Customs Duty to be payable in local currency, with the exception of designated or luxury goods. and where the importer opts to pay in foreign currency.
</blockquote>
The impact of this directive is a matter of debate among economists. Some believe that it will promote the use of the depreciating <a class="MarkdownLink_linkifiedLink__KxC9G">Zimbabwean dollar</a>, thereby stabilizing the <a class="MarkdownLink_linkifiedLink__KxC9G">foreign currency exchange</a> rate. However, others argue that the local industry remains unable to meet demand, necessitating the need for imports to augment its efforts. 
With the government recently opening borders to allow the importation of some previously banned commodities, there will be an increased demand for foreign currency to import goods, as the local currency is not a legal tender beyond Zimbabwe’s borders.
Furthermore, while the directive may encourage the use of the local currency, it may also discourage <a class="MarkdownLink_linkifiedLink__KxC9G">foreign investment</a> in the country. International businesses may be hesitant to invest in a country where they cannot easily repatriate their profits in a foreign currency. They are attracted to Zimbabwe due to the widespread use of the US dollar, which they have been siphoning off leading to a depletion of foreign exchange reserves. Whether the directive is good or bad may depend on one’s perspective.
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Mthuli Ncube: All Customs Duty To Be Paid In Local Currency

Thousands of dollars could have been misappropriated at the Zimbabwe Revenue Authority (ZIMRA) after a leaked letter reveals that customs duty paid by a Harare-based firm “disappeared” from the Authority’s system.
The ZIMRA Commissioner Customs and Excise, in a letter dated 5 May 2020 and addressed to Customs Excellence Private Limited, said the customs duty payments for vehicles, which the company claimed to have made, did not appear in the taxman’s system.
Below is the letter:
<blockquote>Reference is made to the issues you have been raising concerning confirmation of customs duty payments and the meeting held in my office on the matter.
As I stated in the meeting verifications in our system, which I did in your presence, showed that the customs duty payments and assessments for the vehicles in question do not appear in our system.
I note that you are still of the opinion that the payments were made in fulfilment of your clients’ obligations concerning their motor vehicle importations.
However, as I have stated such clearances and payments are not reflected in our system.
You also requested access to the importation documents for these vehicles, however, since there is no record in our system such documents cannot be availed.
You are therefore urged to ensure that your clients pursue regularizing the clearance of their vehicles in order to get their release.
<img alt="Image" decoding="async" src="https://pbs.twimg.com/media/EXzsNU7WkAIUmuL?format=jpg&amp;name=large"/></blockquote>

Customs Duty Payments 'Vanish' From ZIMRA's System

Harare-based businessman and socialite, <a href="https://www.pindula.co.zw/Genius_Kadungure" rel="noopener noreferrer" target="_blank">Genius “Ginimbi” Kadungure</a>, has consented to pay an additional US$58 655 09 duty to the <a href="https://www.pindula.co.zw/Zimbabwe_Revenue_Authority" rel="noopener noreferrer" target="_blank">Zimbabwe Revenue Authority (ZIMRA)</a> for his imported Bentley Continental GT car.
ZIMRA had attempted to seize the vehicle on the pretext that it had not paid the requisite customs duty and Value Added Tax (VAT), with Kadungure approaching the <a href="https://www.pindula.co.zw/High_Court_of_Zimbabwe" rel="noopener noreferrer" target="_blank">High Court</a> to block the move.
However, on Friday, ZIMRA and Kadungure’s attorney Brighton Pabwe reached an agreement after they appeared before High Court judge Webster Chinamhora.
Speaking after the court hearing, Pabwe said:
<blockquote>With consent, parties have reached an agreement. A reconciled figure will be around US$140 124.</blockquote>
Ginimbi had initially paid US$81 469 as import duty for the vehicle to ZIMRA.
Justice Chinamhora ruled that the additional US$58 655 09 should be paid on or before January 24 this year.
<h4>More: <a href="https://www.newzimbabwe.com/ginimbi-to-pay-us141k-duty-for-bentley/" rel="noopener noreferrer" target="_blank">NewZimbabwe.com</a></h4>

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