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 Imports.
Key exchange control objectives on imports include controlling the outflow of foreign currency, effective use of available foreign currency in terms of the country’s priorities, adequate foreign currency is available to stabilize the local currency.These measures also benefit local industries and may be used with import restrictions
through import bans, use of import permits or prohibitive duty.
Key Control Measures.
- Exchange Control approvals.
- Monitoring of outstanding acquittal of advance foreign payments.
- Payments from local sources of Use of free funds.
Exchange Control approvals.
Central banks may prohibit certain foreign payments or require prior Exchange Control approvals for some payments. According to the Reserve Bank of Zimbabwe’s website, importers of goods and services are allowed to effect foreign payments through their Authorised Dealers without seeking prior Exchange Control approval from the apex bank.
RBZ Circular 1 of 2021 requires authorised dealers to seek prior Exchange Control approval for the funding, from the auction, of all non-current expenditures in respect of goods already received or services already rendered.
Monitoring outstanding acquittals of advance foreign payments
In reference to RBZ Exchange Control Order, 1996 goods and services paid for in advance must be received within three months. Advance foreign payments shall be acquitted using Bill of Entry (BoE) as confirmation of receipt of the goods in the country. As a control measure authorised dealers and RBZ Exchange Control monitor and make follow ups on outstanding acquittals of advance foreign payments.
Payment for imports from local sources
The main sources of foreign currency for payments out of Zimbabwe include the Foreign Exchange Auction Trading System (“Auction”) which was introduced in 2020,positive balances in Nostro FCAs from for example export proceeds and free funds. According to the RBZ Exchange Control Directive RV175/2020 of 22 June 2020 (the directive) foreign currency sold at the Auction system shall only be for settlement of foreign payments.
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