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Sikhulekelani Moyo-Bulawayo Bureau
THE need to conduct early training on rules of origin and other trade protocols is critical in equipping local businesses with adequate information for effective preparation and participation in the African Continental Free Trade Area (AfCFTA).
Rules of origin are the rules to attribute a country of origin to a product to determine its “economic nationality”.
The need to establish rules of origin stems from the fact that the implementation of trade policy measures, such as tariffs, quotas, and trade remedies, in various cases, depends on the country of origin of the product at hand.
As the country prepares to exploit AfCFTA opportunities, the Confederation of Zimbabwe Industries (CZI) in partnership with the Zimbabwe Revenue Authority (ZIMRA) have embarked on a nationwide training for local industries to provide them with information about the rules of origin.
Yesterday, CZI and Zimra teams were in Bulawayo where different industry representatives attended the training programme. In his welcome remarks, CZI lead research officer Mr Macdonald Mutengo said Zimbabwean businesses must urgently master the rules of origin and familiarise with key trade protocols.
He said the AfCFTA deal, which came into force in January 2021, presents an opportunity to access new markets, improve competitiveness, and foster economic growth. Zimbabwe is one of the pioneer signatories to the historic deal.
“Today, we’ll explore the intricacies of these rules, their implications for our local industries, and how we can leverage them to our advantage,” said Mr Mutengo.
“We have gathered experts and practitioners from Zimra who will share insights, best practices, and practical strategies.”
Mrs Makhosazana Kuture from Zimra customs and excise division said a product shall be accepted as originating from the AfCFTA state-party when wholly obtained in the state-party and when having undergone substantial transformation in the state-party.
She explained that products are regarded as wholly obtained in a state-party when exported to another state-party if only that state-party has been involved in their production.
Further, Mrs Kuture said no materials from outside the AfCFTA should be used in the production of goods as any use of such materials disqualifies the products from being “wholly obtained”.
“This criterion generally applies to the natural resources of a state-party and to products made entirely from materials obtained in a state-party,” she said.
Mrs Kuture also said if a product does not qualify under the wholly obtained origin criteria, they may qualify under the sufficiently worked or processed criteria.
This case arises when certain materials of non-African origin are used in the manufacture of a product in Africa.
“Under the AfCFTA, to be considered under the sufficiently worked or processed origin criteria, a product should fulfil one of the following: non-originating material content, change in tariff heading, change in tariff sub-heading; and specific processes and value-added,” she said.
Zimbabwe Leather Development Council secretary, Mr Jacob Nyathi, said the training on rules of origin was important as this gives producers room to start their preparations for trading on the continental market.
“For some of the product lines the agreement hasn’t kicked in, so it is good to start to assess the expectations so that the industry can plan and be the first on the goal,” said Mr Nyathi.
“The AfCFTA rules of origin are good for Zimbabwe’s low-hanging fruits like leather and textile, where we have a comparative advantage in terms of our skills and manufacturing background.
“AfCFTA is key to local industries, as this will open market opportunities and improve their exports, and this will help them in terms of raw material sourcing.”
Bulawayo Chamber of Small and Medium Enterprises, Mr Coustine Ngwenya, said SMEs should take advantage of such training so they can start preparing to trade under the AfCFTA trade agreement.
Online Reporter