Overview of Zimbabwe's Goods Trade Policy
Summary:English Summary: This article provides an overview of Zimbabwe's goods trade policy, overseen by the Ministry of Industry and International Trade (MIIT), detailing policy formulation and macroeconomic strategies.
Overview
Zimbabwe's goods trade policy is primarily overseen by the Ministry of Industry and International Trade (MIIT). The MIIT's responsibilities encompass formulating policies related to industry, trade, and domestic economic development, as well as implementing macroeconomic management strategies. According to official Zimbabwean data, the country's total goods trade reached $13.6 billion in 2021, reflecting a 35% year-over-year increase. Imports totaled $7.57 billion, up 33.3%, while exports amounted to $6.03 billion, representing a 37.3% growth. The trade deficit stood at $1.54 billion, marking a 19.4% increase from the previous year.Zimbabwe maintains trade relations with 196 countries and regions. Its primary trading partners include South Africa, the United Arab Emirates, China, Singapore, and Mozambique.
Commodity Structure of Trade
Major Exports: Tobacco, platinum, gold, chrome ore
Major Imports: Fuel, machinery, vehicles, food
Policy
Trade Regulatory Framework
The primary trade-related laws in Zimbabwe include the Trade Act, the Competition and Fair Trade Act, the Customs and Excise Act, and the Arbitration Act.
Trade Management Regulations
In 1990, Zimbabwe embarked on its Economic Structural Adjustment Programme (ESAP), with trade liberalization as a central component. The country has eliminated import restrictions on most goods and abolished the import licensing system.
Import and Export Inspection and Quarantine
The Zimbabwean government mandates that imported goods valued above USD 10,000 undergo mandatory pre-shipment inspection and price verification by a designated UK inspection company. Additionally, Chinese goods inspected and certified by Chinese inspection bodies must obtain a "clean report" from Hong Kong or Singapore before payment can be settled.
Customs Management Regulations
Zimbabwean customs duties comprise customs duty, excise duty, value-added tax (VAT), and surtax. The Zimbabwe Revenue Authority (ZIMRA) serves as the administrative authority, with customs duty rates ranging from 5% to 40%.
Tariff Adjustments
Since 2012, Zimbabwe has implemented tariff adjustments for certain imported goods. For instance, the import duty on clothing was raised from 40% of the goods' value + USD 1.5 per kilogram to 40% of the goods' value + USD 3 per kilogram. Raw materials used in the garment manufacturing industry, particularly those not produced locally, are exempt from import duties.
Duty-Free Goods
Sports equipment and apparel donated to designated organizations registered with the Sports and Recreation Commission are exempt from customs duties. This exemption also applies to goods related to education, sports, arts, and culture. Local institutions purchasing ambulances and other emergency medical equipment are also exempt from customs duties.
Green Lane Customs Clearance
Zimbabwe has introduced an Authorized Economic Operators (AEO) program, granting expedited customs clearance to companies included on the AEO list.
Restricted and Prohibited Imports and Exports
Zimbabwe restricts or prohibits the import and export of certain goods and items. Restricted goods require permits or licenses from relevant authorities before importation or exportation. Examples include agricultural and horticultural products, plants and plant products, domestic animals, wildlife and hunting trophies, antiquities and national monuments, hazardous substances, firearms, pharmaceuticals, and others.