Harare, (New Ziana) – Enhanced post import clearance audits are to be introduced immediately to deal with the scourge of smuggling and tax evasion, Finance, Economic Development and Investment Promotion Minister has said.
Presenting the ZWG 276 billion 2925 national budget on Thursday under the theme, ‘Building Resilience for Sustained Economic Transformation’, Prof Ncube said there is need to review the current anti-smuggling strategies in the country.
He said high incidences of smuggling are undermining initiatives to enhance local production, value chains and employment creation while creating an uneven playing field between locally produced and legally imported products and undermining government revenue, promoting illicit activities that discourage investment. “In addition, smuggling is a threat to public health and safety as smuggled goods, in particular, food items, medicines and alcohol, are not subject to health and safety controls, he said.
“Whereas government recently introduced drones at ports of entry with a view to combat smuggling, it has become necessary to introduce complementary measures, as smuggled goods continue to flood the market.”
Among the smuggled goods in the country are cement products imported from the region as people take advantage of regional trade agreements.
“Notwithstanding the bulky nature of the product, the removal of cement from the Open General Import Licence, as well as the cost of production in source countries, the retail prices on the local market are indicative of smuggling,” Prof Ncube said, adding that measures need to be taken to ensure the survival of local producers.
Government, through the responsible agencies, will undertake comprehensive investigations with a view to invoke appropriate trade remedies.
“I, therefore, propose that the indicative list of products shown below be deemed as smuggled, unless the seller provides documentary evidence to the Commissioner that customs duty has been properly accounted: Alcoholic & non-alcoholic Beverages; Cement; Clothing & footwear; Dairy products; Diapers; Electrical appliances, cables & accessories; Ploughs & parts thereof; Processed meat; Rice & Pasta; Sugar; Tyres & motor spare parts and Washing powder and Detergents
“Failure to provide such documentary evidence, the smuggled goods will be subject to seizure as provided in the Customs and Excise legislation. In addition, the seller or owner of such goods will be subject to payment of duty, including prescribed penalties.”
The Minister said the Commissioner will be required to provide the Treasury with a monthly report of Post Clearance Audits, accounting for the smuggled goods and revenue recovered with the measures taking immediate effect.
New Ziana
