Reprieve for second-hand car importers

Yvonne Ncube, Chronicle Reporter
GOVERNMENT has extended the grace period for the importation of second-hand cars that are over 10 years old to the end of June to allow clearance of outstanding vehicles which were purchased before the gazetting of Statutory Instrument 89 of 2021.

Government in April announced that second-hand vehicle imports that are over a decade old from the date of manufacture would not be allowed to enter the country on or after April 2, without a license.

However, in a joint statement released on Wednesday, the Ministry of Industry and Commerce in collaboration with the Zimbabwe Revenue Authority (Zimra) said they will extend the transactional period until the end of the month.

The two bodies have come up with an administrative transitional arrangement to facilitate the clearance and processing of vehicles bought before the gazetting of SI 89 of 2021.

The ministry stated that the cars must have been paid for on or before April 2, 2021, adding that proof of payment in line with the RBZ Exchange Rate Control Regulations must be attached along with any other supporting documents.

This is not the first time the country has banned the importation of used vehicles as in 2011, Government barred the import of vehicles more than five years old, although the ban was later reversed following an outcry from the public.

“Following the promulgation of Statutory Instrument 89 of 2021 on the importation of second-hand cars that are more than 10 years old, the Ministry of Industry and Commerce, in collaboration with Zimra is extending the administrative transitional arrangement up to 30 June 2021. This has been done to allow the clearance and processing of outstanding vehicles purchased prior to the gazetting of SI 89 of 2021. 2.

“Motor vehicles must have been paid for on or before 30 June 2021 and Proof of payment in line with the RBZ Exchange Rate Control Regulations, must be attached; and any other supporting documents will still apply,” read the statement.

The transitional period was meant for the processing and importation of all vehicles that had been bought on or before the second of April 2021. By 31 May all these should have been fully cleared and in the country but now, however, there’s an extra month for car owners to complete the clearance process.

Zimra spokesperson Mr Francis Chimanda last month revealed that the volume of second-hand vehicle imports coming into the country through the Beitbridge Border Post has started to fall following the introduction of tough regulations on the importation of pre-owned vehicles whose year of manufacture exceeds 10 years which took effect from April 2.

Zimra requires the importers to produce a purchase invoice, copy of identification card, SAD 500 (Export bill of entry from South Africa), SARS Notification (Release), declaration form 47 by the importer, and import licence (For vehicles 10 or more years) for them to process the customs documents.

In the case of rebates, the importer must have a rebate letter confirming that they have been allowed to import the vehicle under that specific rebate.

One needs at least US$5 000 to buy a modest second-hand vehicle that is 10 years or older and at least US$10 000 to buy a fairly newer model. This is inclusive of import duties. — @SeehYvonne