Reprieve for vehicle importers

by | Apr 22, 2021 | Business, Local News | 0 comments

Hosia Mviringi

Importers whose vehicles were already in transit when the Government effected a law which said that vehicles older than ten years now need a special permit to import have been given a waiver by Government to clear their assets.
The new law was gazetted on April 2, 2021.

Following the promulgation of Statutory Instrument 89 of 2021, the Ministry of Industry and Commerce, in conjunction with the Zimbabwe Revenue Authority, has come up with an Administrative Transitional Arrangement to assist in the clearance of vehicles purchased before the gazetting of the Statutory Instrument.

According to the arrangement, all motor vehicles which were paid for on or before April 2 2021 will be eligible for importation on an open import licence (without the need for a special import permit from the Ministry of Industry and Commerce).

This decision by the government comes as a huge relief to importers who could have failed to beat the deadline due to logistical challenges.

Such importers will be required to present proof of payment in line with Reserve Bank of Zimbabwe Exchange Rate Control Regulations.

Statutory Instrument 89 of 2021 requires prior approval for imports of motor vehicles 10 years and older to avoid inconveniences.
The instrument has become necessary as the government looks at growing local production capacity by encouraging consumption of locally produced goods and services.
The motor vehicle value chain presents huge opportunities for local entrepreneurs both in spare parts manufacturing and vehicle service providers.
Local manufacturing of motor vehicles has a positive impact on downstream industries such as battery, spares and tyre manufacturing.