Tag / Zimra

by Mike Poverello

Exporters Blast ZIMRA and RBZ Red Tape

 

Zimbabwe‘s export procedures have come under severe criticism as they are said to be contributing to the country’s poor export performance. Local manufacturers have lamented delays in documents processing by the Zimbabwe Revenue Authority and the Reserve Bank of Zimbabwe, which they say is constraining the movement of goods into regional and international markets.

Latest official statistics show that the country’s trade deficit stands at around US$2,9 billion due to the underperformance of the export sector. Surface Investments executive director Mr Narottam Somani says although they have lodged complaints with ZIMRA over the issue there have been no positive outcome.

“The CD1 approval procedures and ZIMRA Bill of entry procedures are too lengthy and as such they spoil the whole momentum of exports. Government, ZIMRA and the RBZ need to appreciate the value of reducing period of these procedures. “We have engaged officials from ZIMRA and the RBZ over the need to file our CD1 and bill of entry forms online which will help reduce the time period to one day. They say that they appreciate our concerns but nothing has materialised,” he said. (Note for South African readers – CD1 refers to a ZIM exchange control document and not the SARS’ new electronic declaration form)

Surface Investments is the country’s largest multi-oilseed processing firm and it exports crude oil to Malawi and cotton linters, and cotton hulls to South Africa and Europe.

Both exporters and importers contend that the country’s export transit procedures have not improved significantly despite ZIMRA’s rollout from last year of the ASYCUDA World version 4.0.21 to over 14 of its stations. Implementation of the system was largely expected to expedite clearance procedures at the country’s border posts. ASYCUDA 2.3 was the earliest version to be introduced in Zimbabwe in 1992 and was upgraded to versions 2.5 and 2.7. ASYCUDA++ later came on board in the form of version 1.15 and 1.18. An expert in the field of transit procedures yesterday said improving these processes would take a wider regional approach.

“Transit operations of most countries in the region typically suffer from a number deficiencies such as lack of simplified and standardised customs procedures, documents and data processing that generally yield costly implications such as delays at border posts, opportunities for theft and corruption practices, and inflated transit transport costs.

“The key area that needs to be addressed therefore relate to regional harmonisation of transit procedures.” Source: The Herald (Harare)

 

by Mike Poverello

ZIMRA, Business to form Customs Forum

The Zimbabwe Revenue Authority (ZIMRA) is working in partnership with organised businesses associations in crafting a Memorandum of Understanding, creating the Zimbabwe Customs to Business Forum, an official has said. ZIMRA’s commissioner for customs and excise Mr Happias Kuzvinzwa said last week that the forum was a platform for his organisation and business to collaborate on issues of compliance, policy, capacity building, integrity and technical engagements. He was addressing delegates at the Shipping and Forwarding Agents’ Association of Zimbabwe 8th annual conference held in Beitbridge last week. Mr Kuzvinzwa said the interim steering committee was finalising the draft MoU and terms of reference.

“The forum is a prelude to the implementation of the authorised economic operator scheme. Membership of this forum is open to the businesses affiliated to recognised associations and shall be governed through a steering committee which is a higher committee, and standing committees which are lower committees chaired and constituted by both ZIMRA and business.

“The standing committees are organised in clusters for easy management of programmes. We expect all the concerned parties to sign the MoU soon upon its finalisation” he said.

Mr Kuzvinzwa added that in line with the SAFE framework of standards, ZIMRA would soon be plotting the authorised economic operators. He said the scheme sought to reward all compliant operators in the supply chain who meet the set criteria. He added that groundwork had been done and teams will be conducting stakeholder consultations and awareness workshops next month. “I would also want to urge the freight industry to embrace as a culture and operation ethos integrity, voluntary compliance, relevant competencies, and information technology.

“Missing these industry risks is being packed into the dustbin of history as you become irrelevant and classified as non-tariff barriers.” he said. Mr Kuzvinzwa added that ZIMRA was also in the process of putting in place a border agency single window through ASYCUDAworld. He said all border agencies would be connected to the workflow process through ASYCUDAworld to ensure that respective mandates are coordinated and streamlined.

“Discussions are at an advanced stage with other border agencies on the implementation of the single window and Beitbridge has been selected to pilot the programme with ZIMRA providing computer workstations at their respective offices,” he said.

Source: The Herald (Zimbabwe)

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by Mike Poverello

Zimbabwe Industry slams ASYCUDA

With much talk of intra-African trade, perhaps its a good time to consider increased collaboration between customs administrations regarding modernisation initiatives. It helps little for trade if the system only works on one side of the border. The case in point demonstrates a painful realization of too little mediation with stakeholders.

THE Zimbabwe Revenue Authority‘s introduction of the latest version of an automated customs clearance management system has brought industry to its knees as goods in transit are stuck at the country’s ports. The system challenges at Zimbabwe’s ports is particularly worrisome for importers as the majority are set to close shop today for the festive season. ASYCUDA is an acronym for Automated System for Customs Data, an automated customs clearance management system.

The Shipping and Forwarding Agents’ Association of Zimbabwe (Sfaaz) held a crisis meeting in Harare, where they intended to engage the Ministry of Finance and Zimra officials who had been invited. Ministry of Finance and Zimra officials were, however, conspicuous by their absence. Sfaaz chairman Mr Phanuel Gukwe said the system, whose implementation commenced in October, had significantly slowed down clearance procedures. “There is perennial breakdown of operations at most ports, which means no imports are coming out of Zimra, funds are locked in prepayment accounts and turnaround of bill of entries is taking up to two weeks instead of the normal three hours.

“Contrary to expectations when Zimra proposed the system, the situation at ports has worsened drastically,” he said. The situation at the country’s ports, which is now in its third month, might have implications on the revenue collection targets for the fourth quarter, especially in terms of excise duty, import duty and customs tax.

Questions sent to Zimra were unanswered by the time of publication yesterday. ASYCUDA 2.3 was the earliest version to be introduced in Zimbabwe in 1992 and was upgraded to versions 2.5 and 2.7. ASYCUDA++ later came on board in the form of version 1.15 and 1.18. Currently, Zimra is rolling out ASYCUDA World version 4.0.21 to over 14 stations.

Mr Gukwe said Zimra had ignored the association’s earlier proposal to stagger the implementation of the new system. “We had proposed to Zimra to follow the example of South Africa, which undertook to implement the system at limited ports at a time, but they rather chose to go wholesale. Zimra also ignored us when we pressed them for a fallback system to be put in place,” he said.

The Wednesday crisis meeting, that was emotionally charged, saw importers level a range of accusations against Zimra. Some said Zimra had only two examining officers at some border posts, which means the slow clearance was an issue not just of failure in connectivity but also manpower shortages. It was also observed that when clients of local importers called Zimra to find out about the system challenges, Zimra officials were telling them that problems with the system had since been rectified, a situation that was portraying the local importers in bad light.

“I do not think it is legal for Zimra officials to be discussing these matters with our clients, they should only communicate with those who put in the bill of entry,” said one Sfaaz member. Others accused Zimra for being nonchalant. “Zimra should be taking responsibility on this matter. They could have at least eased our plight by arranging for the reduction or waiving of storage fees. We are paying some serious money for storage for weeks on end, which is driving up our landing costs,” said an importer.

Observers warn that if the problem continues, it could have wider repercussions on the economy, which is still a net importer of most goods. Meanwhile, Sfaaz officials were yesterday engaged in a closed door meeting with top Zimra officials over the matter. Source: The Herald (Zimbabwe)

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