Exporters seek payment modality review

Edgar Vhera

Agriculture Specialist Writer

THE Horticultural Development Council (HDC) has urged the Government to extend the number of days within which exporters are mandated to repatriate export proceeds from the current 90 to 180 days.

In its update for April 2025, the council said exporters were facing challenges in paying local producers due to delays in receiving their earnings from exports.

“The current 90-day acquittal window for export proceeds is placing exporters under severe financial pressure due to delayed payment cycles,” it said.

“HDC has formally requested an extension of the period to at least 180 days to better align with export operational realities and ensure timely payments to producers.”

Export Produce Growers Association of Zimbabwe chairman, Mr Clarence Mwale, concurred saying: “When we send the product, we have 90 days to acquit Customs Declaration forms (CD1s).

“The 90-day period is not enough, considering that we only get paid when the product has been sold on the market.”

He said the processes to pay Zimbabwean banks are longer and highly scrutinised, necessitating the need for a whole season to work before the start of CD1 acquittals.

Though in the past most horticulture exports were airlifted and reached the market early, facilitating early payment from customers, the trend is now changing with customers requiring an environmentally friendly mode of transport.

Air freight, even though sometimes necessary for time-sensitive perishable goods, has a significantly higher carbon footprint than sea or road.

This use of sea marine lengthens the days that the product is delivered, causing a delay in payment times.

The Reserve Bank of Zimbabwe (RBZ) standardised acquittal periods for all exporters to 90 days from the date of raising of the Form CD1.

The Government put in place laws which govern the export of goods and services and these are administered by the Zimbabwe Revenue Authority (ZIMRA), which has been empowered to ensure compliance with the regulatory controls.

The business of exporting starts upon receipt and acceptance of a bona fide export order from a customer.

The exporter then prepares a commercial invoice, a packing list and applies for exchange control approval from a commercial bank.

The CD1 Form is an exchange control form used by exporters to facilitate the export of goods in pursuance of a contract of sale.

The form is processed by authorised dealers (commercial banks) on behalf of the RBZ.

The exporter’s shipping agent sends to ZIMRA copy of CD1 Form, certificates of origin (if any), commercial invoice, supplier’s invoice, original export permits/licences (if necessary), Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) permit (if required) and any other shipping documentation.

ZIMRA issues the Bill of Entry Form 21 to authorise the export consignment to leave the country within 10 days.

To acquit CD1 Forms, the exporter has to inform the bank that processed it of receipt of export proceeds.

On being furnished with satisfactory proof, the bank will then clear the CD1 Forms. Failure to acquit CD1 Forms may result in an embargo being placed on further exports.

After 90 days from the day of Form CD1 approval, funds for exported items are due for acquittal. Failure to apply to Exchange Control for extension of the acquittal period will result in the red-flagging of the exporter.

Under red-flagging status, the exporter cannot raise new Form CD1s, hence the exporter cannot export.

The failure of the exporter to remit the export proceeds will after some time result in the exporter being blacklisted.

THE Reserve Bank of Zimbabwe (RBZ) in 2005 blacklisted 74 exporters who failed to meet the deadline to remit their export earnings.