If you are thinking of partaking into Importing and exporting business, then this articles is for you. We also offer acquittal services for both imports and exports. Lets dive in the legislation governing importing and exporting of goods and services in Zimbabwe.
Imports and exports laws are governed by the Exchange Control Act (Chapter 22:05) is the principal Act, the Exchange Control (General) Order, 1996 (Statutory Instrument 110 of 1996) (General Order), issued by the Reserve Bank of Zimbabwe (RBZ) with the approval of the Minister.Directives, circulars and orders, issued by the RBZ to supplement the provisions of the General Order, in terms of section 35 of the said Regulations of 1996.
The exchange control regulatory framework is dynamic as laws are changed from time to time to deal with live issues. Firms should seek prior Exchange Control approval where necessary or outsource such service to consulting firms like us.
Exchange control regulations on exports
Some of the key exchange control objectives on exports are meant to ensure that foreign currency earnings are received on time, foreign currency is available when required for foreign payments and that adequate foreign currency is available to stabilise the local currency.
Section 21 of the regulations of 1996, unless otherwise authorised by an exchange control authority, no person shall export any goods or cause any goods to be exported from Zimbabwe unless the Commissioner General of ZIMRA is satisfied that:
- Payment for the goods has been made to a Zimbabwean resident in such manner as may be prescribed, or will be so made within such period after the date of export as may be prescribed, and,
- The amount of the payment that has been made or will be made is such as to represent a return for the goods which is, in all the circumstances, satisfactory in the interests of Zimbabwe.
Key Measures
The following key measures on exports used by authorities are analysed below:
- Registration with RBZ Exchange Control
- Time frame for receipt of export earnings
- Export receipts surrender requirements
- Retention of export receipts
- Acquittal of CD1 forms.
Registration with the Exchange Control
Bsinesses in the exporting are required to make a once- off registration with their bank by completing the papers necessary for the registration of exporters. Form CD1 has to be raised for exports and will be used by the bank and RBZ to track any outstanding acquittals.
Timeframe for receipt of export earnings
According to section 13(2) of the General Order of 1996, exports made before payment thereof must be paid for within three months (90 days) from date of export. It is important to note that exporters who may face challenges in repatriating export proceeds within the stipulated period may submit applications for extended periods.
Export proceeds surrender requirements.
In terms of the RBZ 2023 Monetary Policy Statement & Directive RY002/2023 exporters are required to surrender 25 percent of their foreign currency received on their domestic Foreign Currency Account (FCA) and be paid the local currency equivalent at the ruling interbank rate.
Retention of export earnings
In terms of the circular, effective 11 January 2021, exporters may now retain net export receipts in their domestic FCAs for an indefinite period. Prior to this the limit was 60 days after which an exporter had to liquidate. This measures changes from time to time.
CD1 acquittals
CD1 forms must be acquitted within set time frames. Banks and RBZ monitor outstanding CD1s.
In case you need to acquit your exports, get in touch with us on [email protected] or call +2637710 30251.
