Calculation of Duty on importation of private motor vehicles and suspension of duty on Motor Vehicle imports by the physically handicapped persons

The duty to be paid on importation of motor vehicles into Zimbabwe is based on the Cost, Insurance and Freight (CIF) value plus other incidental charges and expenses incurred in the purchase of the vehicle and its subsequent transportation up to the first point of entry into Zimbabwe. This CIF value and the other charges constitute what is known as the Value for Duty Purposes (VDP). Such other charges include, inter alia, and where applicable:

· Port handling charges, e.g. at Durban Port, Walvis Bay, Beira, Dar es Salaam;

· Storage charges; and

· Any other special handling fees, if not already included in the CIF Value.

The charges that are levied are Customs duty, Surtax and Value Added Tax (VAT). Surtax is only charged on passenger type motor vehicles that are more than five (5) years old at the time of importation. Please note that both Customs duty and Surtax (where applicable) are calculated on the Value for Duty Purposes (VDP). VAT is calculated on the total of VDP plus the calculated Customs duty payable. This value is known as the Value for Tax Purposes (VTP). Passenger motor vehicles more than five years old are charged surtax at a rate of 35%.

Below is a table showing examples of how to calculate duty payable on the most commonly imported private motor vehicle types using arbitrary CIF values.

**NB: All values are in USD

 

Year of Manufacture/Type of vehicle

Engine Capacity/Payload

CIF Value

$

Other Charges

$

VDP

$

Duty

$

Surtax

$

VTP

$

VAT

$

Total amount payable

$

2012

Sedan/ Station Wagon

1495cc

6 000

_

6 000

@40% = 2 400

_

8 400

@ 15%

=1 260

3 660

2005

Sedan/Station Wagon

1495cc

4 000

1 200

5 200

@ 40% = 2 080

@ 35% = 1 820

7 280

@ 15%

= 1 092

4992.00

2001

Sedan/Station Wagon

1800cc

5 000

900

5 900

@ 40% = 2 360

@ 35% = 2065

8 260

@ 15%

= 1 239

5 664

2012

Sedan/ Station Wagon

3000cc

10 000

600

10 600

@ 40%

= 4 240

_

14 840

@ 15%

= 2 226

6 466

2004

Pick -up truck

Payload of up to 800kg

3 000

1 000

4 000

@25%

=1 000

-

5 000

@ 15%

= 750

1 750

2005

Pick -up truck

Payload more than 800kg but not exceeding 1400kg

4 000

1 200

5 200

@40%

= 2 080

-

7 280

@ 15%

= 1 092

3 172

2002

Pick- up truck

Payload more than 1400 kg but with a gross vehicle mass of less than 5 tonnes

7 000

1 500

8 500

@40%

= 3 400

-

11 900

@15%

= 1 785

5 185

2007

Double Cab

2500cc

7 000

1 500

8 500

@60%

= 5 100

-

13 600

@15%

= 2 040

7 140

 

**NB: Please note that ZIMRA at entry points may re-assess values of the motor vehicles if the declared values do not reflect a true market price in the country from where they were bought.


Suspension of duty on Motor Vehicle Imports by the physically handicapped persons

What does suspension of duty mean?

Suspension of duty is the waiver of Customs Duty and Surtax. Value Added Tax (VAT) is payable at a rate of 15% based on the value of the motor vehicle plus freight, insurance and any other charges incurred before delivery of vehicle to Zimbabwe.

What is required from you?

v Current letter from a specialist doctor stating the following:

§ The nature and degree of disability

§ Giving indications of the type of vehicle you could drive under the circumstances

§ The extent of disability (whether it is temporary or permanent)

v An invoice/proforma invoice /document for the recommended motor vehicle which should include the following information:

  • Engine number
  • Chassis number
  • Type of transmission
  • Year of manufacture

v Application letter

v Proof of source of funds

v Copy of identification particulars

v Proof of current residence

Which persons qualify for the privilege?

A physically handicapped person:

  • who is blind - if the Commissioner is satisfied that the vehicle is to be used for the benefit of that person; or
  • with a physically disability that is not temporary - if the vehicle has automatic transmission and additionally, or alternatively, special controls that render it suitable for use by that person, and the Commissioner is satisfied that the vehicle is to be used by that person; or
  • with any physical disability that impedes his personal mobility and is not temporary, whether or not the vehicle is of a description referred to above as long as the Commissioner is satisfied that the vehicle is to be used by that person.

What type of vehicle qualifies?

  • The make and model should be a sedan or a station wagon classified under tariff heading 8703 and carrying not more than 10 persons.
  • The applicable light commercial motor vehicles are those classified under any of the following tariff codes: 8704.2130, 8704.2140, 8704.3130 or 8704.3140 in Statutory Instrument 111 of 2012.

What is the age restriction for the vehicle?

The year of manufacture should not be more than 10 years.

How many motor vehicles can one import under this privilege?

In terms of the suspension regulations, a physically handicapped person can import one passenger or one light commercial motor vehicle without payment of the applicable Customs Duties.

What is the procedure for claiming this privilege?

  • One should apply in writing to the ZIMRA Commissioner for a possible grant of a suspension of duty for the physically handicapped, stating the disability and also justifying the need for that particular vehicle.
  • Pro-forma invoices for the vehicle intended for importation should be attached and such invoice should clearly state year of manufacture, engine and chassis numbers and the cost of the vehicle.
  • The doctor`s letter stating the nature and degree of disability should be attached.
  • Application can be posted or submitted to any nearest ZIMRA office.
  • Applicant will then be invited to an interview at ZIMRA to ascertain the correctness of the application and other submitted documents.
  • If the application is approved, the applicant will be issued with a letter granting the suspension of Customs Duty and Surtax only and such letter should be attached when the vehicle is finally imported.
  • If suspension of duty is not granted, the applicant will have to pay duty and Value Added Tax (VAT) when the vehicle is finally imported.

What are the disposal conditions for the vehicle?

A motor vehicle on which duty has been suspended shall not be disposed of by the importer within five years of its importation unless:

  • the Commissioner has given written permission for its disposal, and

the suspended duty has been paid.

 

duty to be paid on importation of motor vehicles into Zimbabwe is based on the Cost, Insurance and Freight (CIF) value plus other incidental charges and expenses incurred in the purchase of the vehicle and its subsequent transportation up to the first point of entry into Zimbabwe? This CIF value and the other charges constitute what is known as the Value for Duty Purposes (VDP). Such other charges include, inter alia, and where applicable:

· Port handling charges, e.g. at Durban Port, Walvis Bay, Beira, Dar es Salaam;

· Storage charges; and

· Any other special handling fees, if not already included in the CIF Value.

The charges that are levied are Customs Duty, Surtax and Value Added Tax (VAT). Surtax is only charged on passenger type motor vehicles that are more than five (5) years old at the time of importation. Please note that both Customs Duty and Surtax (where applicable) are calculated on the Value for Duty Purposes (VDP). Value Added Tax is calculated on the total of VDP plus the calculated Customs Duty payable. This value is known as the Value for Tax Purposes (VTP).

Below is a table showing examples of how to calculate duty payable on the most commonly imported motor vehicle types using arbitrary CIF values:

**NB: All values are in USD

Year of Manufacture/Type of vehicle

Engine Capacity/Payload

CIF Value

$

Other Charges

$

VDP

$

Duty

$

Surtax

$

VTP

$

VAT

$

Total amount payable

$

2009

Sedan/ Station Wagon

1495cc

6 000

_

6 000

@25% = 1 500

_

7 500

@ 15%

=1 125

2 625

2005

Sedan/Station Wagon

1495cc

4 000

1 200

5 200

@ 25% = 1 300

@ 25% = 1 300

6 500

@ 15%

= 975

3 575

2001

Sedan/Station Wagon

1800cc

5 000

900

5 900

@ 40% = 2 360

@ 25% = 1 475

8 260

@ 15%

= 1 239

5 074

2008

Sedan/ Station Wagon

3000cc

10 000

600

10 600

@ 40%

= 4 240

_

14 840

@ 15%

= 2 226

6 466

2004

Pick -up truck

Payload of up to 800kg

3 000

1 000

4 000

@25%

=1 000

-

5 000

@ 15%

= 750

1 750

2005

Pick -up truck

Payload more than 800kg but not exceeding 1400kg

4 000

1 200

5 200

@20%

= 1 040

-

5 340

@ 15%

= 936

1 976

2002

Pick- up truck

Payload more than 1400 kg but with a gross vehicle mass of less than 5 tonnes

7 000

1 500

8 500

@40%

= 3 400

-

11 900

@15%

= 1 785

5 185

 
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