Online Reporter
Business Reporter
THE Government has gazetted new regulations allowing registered clothing manufacturers to import critical raw materials duty-free.
Under the new framework, the suspension of customs duty applies to a specific list of materials, including denim, cotton fabrics, sewing thread and zippers, on condition they are used exclusively for clothing production.
The move effectively transitions the sector from the previous rebate system to the suspension model.
To qualify, companies must undergo a formal registration process with the Zimbabwe Revenue Authority (ZIMRA).
The applicants must hold a valid tax clearance certificate and submit to physical inspections of their factory premises and machinery by ZIMRA officers.
Participating manufacturers are required to establish on-site secure stores for all suspended materials that must be fastened with customs locks.
Furthermore, firms must maintain detailed stock books to account for the receipt and disposal of every duty-free item.
Manufacturers must submit an annual report to the Government, detailing how the tax relief has contributed to job creation, increased production capacity and new capital investments.
The suspension will be “immediately withdrawn” from any manufacturer that fails to produce this report or violates record-keeping rules.
Defaulting companies will be compelled to pay all previously suspended duties, along with additional penalties.
Currently, 56 companies, including industry leaders such as Archer Clothing and Faith Wear, have already been cleared to begin importing under the new regulations.
