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COMESA implemented the Simplified Trade Regime (STR) to help the small to medium trader to benefit from the preferential rates enjoyed by commercial traders when importing or exporting goods within Comesa member states. The regime is operational between Zimbabwe and Zambia, and Zimbabwe and Malawi.
Goods imported under the Simplified Certificate of Origin enter Zimbabwe free of customs duty. This certificate is issued at the border by the Customs officer and is for consignments of US$1000 or less. The value is the cost of the goods including the insurance and the freight (transportation charges) up to the border post of entry into Zimbabwe.
How does it work?
The Simplified Trade Regime intends to overcome any challenges by simplifying the whole process of clearing goods for small to medium scale cross border traders by way of introducing:
- A simplified certificate of origin which should be signed and stamped by a Zimra official at the border post for all goods that appear on the Common List.
- A simplified Customs document filled as the trader enters the where they are exporting to.
- A common list of qualifying goods displayed at all border posts within Comesa.
Who can use the STR?
It is meant for the benefit of cross-border traders importing or exporting goods from one Comesa member state to the other. Travellers who do not have goods for sale should not use the Simplified Trade Regime.
It is also important to note that no rebate is granted on goods imported under STR, since the goods are for resale.
When can it be used?
Where a small to medium scale cross- border trader is exporting goods valued at US$1000 or less per consignment he or she can use the STR. The goods should be listed on the Comesa STR Common List and should be for re-sale or use in the business.
How is it used?
STR is used for goods that have been grown or wholly produced in the Comesa Region and appear on the Common List, the trader will complete a simplified Customs Document (declaration form) and a simplified Comesa Certificate of Origin. These documents are filled in at the border post by the trader and are stamped and certified by a Customs official. Goods imported and exported should comply with the normal food safety, plant and animal health regulations including environmental protection. Import or Export permits needed to import or export certain agricultural foods and animal products are still required.
What is payable?
- The STR does not exempt the importer from payment of Value Added Tax (VAT) where the goods are liable to such a tax. The current rate is 15 percent of the value of the consignment.
- Where the importer does not have a Tax Clearance Certificate (ITF 263) presumptive tax at a rate of 10 percent of the value of the consignment will require to be paid.
- As is the case with all commercial importations if the goods being imported a liable to surtax then it will require to be paid.
Which Goods Does the STR apply to?
Some of the goods appearing on the Common list that qualify for preferential treatment are shown in the tables above:
Please note that the above list is not exhaustive. A comprehensive list can be found from Comesa website or from the Comesa Trade Information Desk at the border posts implementing STR.
What are the advantages of using STR?
1. Comesa rates of customs duty are applied on clearance of the goods.
2. Fast clearance at the border posts.
3. Reduced clearance costs.
4. No need to smuggle your goods risking your life and goods.
Where can I find more information?
Comesa has established Trade Information Desk (TID) office at the border post which is manned by a Trade Information Desk Officer (TIDO). The officer can provide you with more information on the clearance procedure and the list of goods that qualify for STR.
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.
NB. Please note the “Did You know?” article entitled ‘Submission of Income Tax Returns for 2012 Tax Year” published in the Herald and Chronicle on July 25 2013 had an error which read “The returns will be required to be submitted within 36 days before 30 September 2013.” The correct position is “The returns will be required to be submitted before 30 September 2013”. Any inconvenience caused is sincerely regretted.
To contact Zimra: 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] Call us (Head Office): 04-758891/5; 790813; 790814; 781345; 751624; 752731
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