Introduction
In response to increasing smuggling cases in Zimbabwe, the Zimbabwe Revenue Authority (ZIMRA) is enhancing controls on imported goods through stringent post clearance audits. This strategy aims to ensure that all items entering the country are properly documented and that duties and taxes are fully paid. It is crucial for retailers, wholesalers, manufacturers, and individual importers to understand these procedures, their obligations, and the support available to them.
What Are Post Clearance Audits?
A post clearance audit by ZIMRA is a detailed review of records and imported goods to ensure proper declaration and payment of Customs Duties and VAT. If smuggling or under declaration is suspected, ZIMRA can inspect premises, question individuals, seize records, and verify transactions with foreign customs. Failure to provide valid English-language documentation may result in goods being classified as smuggled, leading to seizures, hefty fines, and interest on unpaid duties.
What Importers Need to Do
Importers must ensure compliance with ZIMRA by providing clear documentation of lawful importation and duty payment, all in English. Failure to meet these requirements can result in goods being deemed smuggled, leading to significant penalties, including hefty fines and potential imprisonment.
Designated Goods Deemed to Be Imported
SI 7 of 2025 establishes that certain goods such as beverages, cement, clothing, and staple foods will be considered imported if there is no documentary evidence of their importation, making it crucial for importers to keep accurate records. While final customers purchasing from local sellers do not need to show proof of duty payment, the responsibility for demonstrating legal importation and duty compliance rests solely with the original importer.
When ZIMRA Re-determines Your Declaration
If ZIMRA identifies discrepancies in your customs declarations, the Commissioner can issue a formal notice for re-determination, and you have 30 days to appeal the decision. Importers must amend their declarations as directed, but proactive correction of errors will not incur penalties, promoting transparency and compliance.
How Baker Tilly Tax and Advisory Services Can Help
1. Comprehensive compliance checks: Ensure all your records and documents are fully up to date with ZIMRA’s requirements.
2. Duty and VAT assurance: Verify that all customs duty and VAT payments and calculations are accurate.
3. Certified document translations: Arrange for certified translations if any of your documents are in a foreign language.
4. ZIMRA inspection preparation: Prepare clients thoroughly for ZIMRA inspections and assist with required documentation.
5. Audit process support: Provide guidance and support throughout the entire post clearance audit process.
6. Appeals and dispute guidance: Advise and assist you through any appeals or disputes with ZIMRA.
7. Ongoing regulatory advice: Keep you updated on changes in customs and tax laws.
With Baker Tilly Tax and Advisory Services as your partner, you can navigate these regulations successfully and meet your obligations with ZIMRA.
References
• Customs and Excise Act (23:02)
• Income Tax Act (23:06)
• SI 7 of 2025 - Customs and Excise (Designated Deemed Smuggled Goods) Regulations, 2025
By George Mpala,
Tax Consultant at Baker Tilly
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