Cross-border traders hit by duty on blankets, shoes

Comment & Analysis
BY JENNIFER DUBEThe Zimbabwe Revenue Authority (Zimra) on Monday introduced 40% import duty on blankets, footwear, refrigerators and stoves, in a move that has left cross-border traders facing an uncertain future.

The products were previously included in the traveller’s rebate where a person was allowed to bring in products duty- free once in a calendar month.

Zimra said: “Travellers who wish to import blankets, footwear, refrigerators and stoves will continue to benefit from the reduced rates that were implement with effect from January 1 2011.”

But hundreds of travellers were caught unawares by the changes and were reportedly forced to leave their goods at border posts because they could not raise money to pay duty.

Bus crews and taxis at Harare’s Roadport said the move had hit their business hard as people were no longer bringing goods from South Africa and Botswana.

“I was into buying and selling blankets and I was doing very well but I left my blankets in South Africa after the driver told me I will be required to pay US$40 for each blanket as duty,” said Laina Mateko who had just arrived from South Africa.

“I ended up coming with just one and I paid R80 for it.

“I also left some shoes which I intended to resale after being informed that I would have to pay duty for them.

“Some people I travelled with were forced to leave their potatoes at the border after failing to pay the duty.”

Many people in the informal sector were cashing in on the sale of blankets and footwear, especially during winter.

A Zimra official said the aim of the import duty was to protect local industries.

“People are still allowed to bring in goods worth US$300 for free per month but electronic goods, such as fridges and stoves, and footwear and blankets are no longer part of that list,” he said.

Finance minister Tendai Biti announced in his mid-term policy statement that customs duty on rice, maize, maize-meal, flour, cooking oil and salt would be introduced from September 1.

He said the move was meant to protect local industry from cheap imports.