The government of Zimbabwe has introduced measures aimed at reviving the struggling local car industry. New provisions for the Customs and Excise (Suspension) Regulations, 2023 have been announced under the Statutory Instrument 20 of 2023. The changes will impact the importation of Semi-Knocked Down (SKD) single and double cab motor vehicle kits, as well as the registration of approved assemblers. The changes aim to promote local manufacturing of vehicles in Zimbabwe and make the process of registering as an approved assembler more straightforward.

The new provisions state that customs duty will be suspended for three years on SKD single and double-cab motor vehicle kits imported by approved assemblers. This suspension of duty is aimed at encouraging the local manufacturing of vehicles. The changes are also intended to make it easier to become an approved assembler. Previously, it was a complex process that involved submitting extensive documentation and undergoing an inspection. The new provisions streamline the registration process, making it more accessible for smaller manufacturers.

Here are some of the most important changes summarised in a list format:

Customs duty on SKD single and double cab motor vehicle kits will be suspended for three years.
The suspension of duty will be granted to approved assemblers who are registered with the customs and excise department.
Built-up single and double-cab motor vehicle bodies will not be granted a suspension of duty.
Assemblers will import the SKD single and double cab motor vehicle kits at a rate of duty of 10% ad valorem.
The registration process for becoming an approved assembler has been simplified.
Assemblers will have to complete a form (MVAS 1) to claim the suspension of duty.
The Commissioner may reject an application for registration if they believe that adequate control of SKD single and double cab motor vehicle kits is not likely to be maintained, or if any provisions of the section will not be complied with.

To benefit from the suspension of duty, assemblers must be registered with the customs and excise department. The process involves filling in the MVAS 1 form and providing additional documentation. The Commissioner may reject an application if they do not believe that the applicant will be able to comply with the requirements of the section.

The new provisions also specify that SKD single and double cab motor vehicle kits will be admitted under suspension only if the assembler has provided a complete specification of each model of any single or double motor vehicle which they propose to assemble, as well as a comprehensive description of the SKD single and double cab motor vehicle kit.

The changes to the Customs and Excise (Suspension) Regulations, 2023 aim to encourage local manufacturing of vehicles in Zimbabwe by suspending duty on SKD single and double cab motor vehicle kits imported by approved assemblers. The new provisions streamline the process of becoming an approved assembler, making it easier for smaller manufacturers to participate. However, the Commissioner has the power to reject an application if they do not believe that the applicant will be able to comply with the requirements of the section.