Government suspends import duty on commercial tyres

GOVERNMENT has with immediate effect suspended customs duty on the importation of tyres meant for commercial businesses and trucks for a period of two years.

The latest development is contained in Statutory Instrument (S.I.)175 of 2024 published in the Government Gazette on Monday.

Under the new order, importers of tyres meant for commercial purposes, mostly for buses and lorries, will only pay value added tax on the total value of the tyres they will be importing.

However, they will still have to comply with other customs regulations and authorisation through the Ministry of Industry and Commerce.

Previously the importers were paying customs duty at a rate of US$5 per kg on all tyre imports. The import for such commodities has been ring-fenced to not more than 1,5 million tyres over the next 24 months (two years).

“Customs and Excise (Suspension) (Amendment) Regulations, 2024 (No. 274). It is hereby notified that the Minister of Finance, Economic Development and Investment Promotion has, in terms of Section 235 as read with Section 120 of the Customs and Excise Act (Chapter 23:02), made the following regulations: — These regulations may be cited as the Customs and Excise (Suspension) (Amendment) Regulations, 2024 (No. 274),” read part of the statutory instrument.

“The Customs and Excise (Suspension) Regulations, 2003, published in Statutory Instrument 257 of 2003, are amended in Section 9EE (“Suspension of duty on commercial tyres imported by approved importers) by substitution of the following — For a period of two years with effect from date of publication, customs duty is suspended on commercial tyres imported by approved importers.”

In terms of the new section, approved tyre importer means an importer authorised and licensed by the Minister responsible for Industry and Commerce.

Under the new regulations, the Commissioner of Customs and Excise will be responsible for granting the suspension of duty and may refuse such on the basis of non-compliance with Section 34C of the Revenue Authority Act (Chapter 23:11).