Source: Zimra blitz on smuggling posts significant success – herald
Business Reporter
THE Zimbabwe Revenue Authority (Zimra) has reported significant success from the enforcement of Statutory Instrument (SI) 7 of 2025, which penalises businesses that fail to provide proof of duty payment for imported goods.
Without disclosing figures, the tax authority said the legislation had significantly curbed tax evasion, resulting in the re-emergence of locally manufactured products on the domestic supermarket shelves.
Smuggled imports command unfairly low prices because they evade paying the requisite customs duties, which naturally inflates the cost of their procurement.
SI 7 of 2025 reinforces Section 223A of the Customs and Excise Act, which empowers Zimra to conduct post-clearance audits.
Under this provision, any goods not properly declared are categorised as “uncustomed goods”.
According to Zimra, the law applies to “goods liable to duty on which the full duties have not been paid, and any goods, whether liable to duty or not, which, being required to be accounted for in terms of this Act, have not been so accounted for”.
The legal instrument provides that any entity found in possession of specified imported goods, not locally produced, must furnish proof of their proper declaration and duty payment.
During the ongoing post-clearance audits on imports, Zimra said its teams conducted visits to formal retail shops and the informal markets.
The tax authority noted a high rate of non-compliance among businesses and importers, many of whom failed to account for the origin and duty status of their goods.
The consequences for non-compliance have been immediate seizure of goods and the recovery of outstanding duties, accompanied by penalties.
Businesses are required to provide evidence of paid duty for all imports; if not, they are obligated to identify and lead Zimra to the suppliers, who must be held responsible for the outstanding duties.
Zimra said that if a business failed to provide such proof or successfully identify the liable supplier, “then the liability to account for the duties rests with them,” resulting in seizures and fines as per the legislation.
The tax authority indicated that the measures had proved effective and were contributing to the re-emergence of local goods on the domestic supermarket shelves, which were now being dominated by smuggled imports.
“These measures have been effective, as noted from the re-emergence of locally manufactured goods whose existence had been threatened by the advent of smuggled imports,” Zimra said without disclosing figures.
The authority also highlighted that the post-clearance audits complemented existing anti-smuggling operations at border posts, enhancing overall control measures.
While acknowledging significant success in curbing smuggled imports, demonstrating the Government’s commitment to combating smuggling, Zimra noted persistent challenges.
It said traders still try to evade controls and payment of the requisite duties, which has reinforced the tax authority’s resolve to maintain the blitz to foster compliance and fair trade on the domestic market.
“Despite these challenges, Zimra affirmed the overall success of the initiative. In terms of success, recoveries of goods and revenues have been significant, demonstrating the serious concern that the Government has on smuggling,” Zimra said.
The tax authority added that “the exercise has also levelled the playing field for all traders, giving an opportunity for local manufacturers to command their fair share of the market as seen from the availability of local products on the local market.”
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