WT/TPR/S/106 Trade Policy Review
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III. TRADE POLICIES AND PRACTICES BY MEASURE
(1) INTRODUCTION
1. Zambia's trade policies remain fundamentally unchanged since its Trade Policy Review
in 1996, both in policy direction and tariff structure.  The tariff structure still has four bands (zero,
5%, 15% and 25%), and the average (unweighted) duty rate remains at around 13%.  The maximum
tariff band of 25% applies primarily to consumer and other "non-essential" goods.  There are noexport taxes, charges or levies, nor discriminatory internal taxes on imports.  Along with trade
liberalization, the programme of decentralization and deregulation has continued in other spheres of
domestic economic activity, such as parastatal reform and privatization.
2. Tariffs continue to be Zambia's main trade policy measure, and virtually all are  ad valorem
(98.6% of total tariff lines) .  Customs valuation is, in principle, based on transaction value.  The
previously mandatory preshipment inspection system has been discontinued.  Quantitative restrictions
have been eliminated and import controls are maintained only for environmental, sanitary,
phytosanitary, moral, health, and security reasons.  An import permit, though, is required for most
agricultural products.  Export controls and regulations are also minimal.  Exports are assisted by a
variety of incentives ranging from tax exemptions and concessions to duty drawback.
3. Since January 1996, 204 out of a working portfolio of 280 state-owned enterprises,
encompassing practically every sphere of economic activity, have been privatized.  Tendering was the
most frequently used procedure for privatization.  There have been no changes in legislation on
competition since its enactment in 1994, but enforcement has been reinforced through the Zambia
Competition Commission (ZCC), an implementing agency established in 1997.
4. Zambia's public procurement regime provides for price preferences, subject to a local content
of at least 40%.  Zambia has no contingency trade remedy action in force;  it is preparing itslegislation on safeguards and is planning to further amend its anti-dumping and countervailing
legislation.  Financial constraints hamper the Zambia Bureau of Standards' ability from carrying out
its mandate.
5. Intellectual property legislation exists on patents, copyright, trade marks, merchandise marks
and designs, but not on service marks.  The Government intends to revise existing legislation to alignit on the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights.  Resource and
capacity constraints are the main hindrances.
(2) M
EASURES DIRECTLY AFFECTING IMPORTS
(i) Registration and documentation
6. All businesses engaging in domestic or internatio nal trade must be registered with the Patents
and Companies Registration Office, an executive agency of the Ministry of Commerce, Trade and
Industry.  Trading activities are open to Zambians and foreigners.  Registration fees are set at a
minimum of K 139,000 for Zambian companies (depending on share capital, the fee increases by
K 5,000 increments for each additional K 200,000 of share capital); and a minimum of K 294,000 for
a foreign company.1
                                                     
1 Zambia Investment Centre (2001).Zambia WT/TPR/S/106
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7. Certification must be obtained for imports of:  livestock (Department of Animal Production
and Health);  live plants (Plant Quarantine  and Phytosanitary Service - PQPS);  food and
pharmaceuticals (Ministry of Health);  and firearms and ammunition (Zambia Police).2  For a
pharmaceutical licence to be issued, the importer must have suitable premises for operations and
storage, and employ qualified professionals, as certified by the Pharmacy, Medicines and Poisons
Board.
8. All imported goods must be fully declared at the point of entry;  liability for the payment of
customs duty and VAT arises at the point of importation.  Commercial import consignments are
declared on a Customs Declaration Form, primarily used for data collection purposes.  The Import
Declaration Fee (IDF) has discontinued on 1 July 1998.  Imports may be handled by customs clearing
agents, who must be registered with the Zambia Revenue Authority.  The services of customs clearingagents must be used if the goods are to be cleared inland.
9. Zambia has bilateral agreements with Mozambique, Tanzania, and South Africa that include
Memoranda of Understandings on cooperation in customs administration matters.  Smuggling of
goods has declined since Zambia's commitment to trade liberalization.
(ii) Customs inspection and clearance
10. The Zambia Revenue Authority (ZRA), established on 1 April 1994 as a corporate body by
a 1993 Act of Parliament, is responsible for public revenue, including customs-related issues.
3  The
ZRA's operations are overseen by a Board, whose members are drawn predominantly from the private
sector.  The chief executive of the Authority is the Commissioner General, appointed by the President
of Zambia.  Though the Authority is an autonomous body, its income is derived from monthly
funding by the Government.  The ZRA Advice Centre (ZRAAC), created within the ZRA, operates as
a one-stop shop for general information on all the Authority's operations.
11. Zambia eliminated preshipment inspection requirements on imports in 1998.  Zambia uses the
UNCTAD's Automated System for Customs Data and Management (ASYCUDA) declaration-
processing system.  The ASYCUDA++ system has recently been introduced.4  When fully
implemented, the ASYCUDA national system is to be fully linked to the COMESA regional centre.
12. To clear merchandise through customs, an im porter must provide the Customs Declaration
Form, along with the usual commercial documents su ch as the bill of lading, airway bill, and
commercial invoice.  For goods to be cleared at the border, the importer needs to use the ZRA
form CE20, the standard form for entry and exit.  According to the authorities, customs clearance is
usually accomplished within a few hours, providing that all documents are in order.  In case of
incomplete forms and other difficulties, delays can result.5
13. The use of bonded warehouses is subject to wr itten application to, and authorization by, the
ZRA.  Goods leaving the bonded facility have to be declared to the ZRA or the relevant Customs
Office.  All bonded warehouses are licensed and operated according to prescribed regulations and
must pay an annual fee of K 808,000.  The operator of a bonded warehouse must also post a bond.
Goods entered for warehousing are not subject to duty until removed and re-entered for home
                                                     
2 Body in charge of certification in parentheses.
3 The ZRA has three divisions:  a Direct Taxes Division; a Customs and Excise Division;  and a Value
Added Tax (VAT) Division.
4 Zambia Revenue Authority (2002).
5 Zambia Investment Centre (2001).WT/TPR/S/106 Trade Policy Review
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consumption, but they are subject to any applicab le anti-dumping duty at the time of warehousing.
Goods may be stored in a bonded warehouse for up to two years, following which they need to be
cleared and entered for export or consumption.  If they have not been removed at expiration of the
period, the goods are disposed off via auction or tender, and the proceeds applied to the charges
against the goods.  If an importer or owner of goods is unable to pay the duty on them, the goods are
deemed to be forfeited and disposed off via auction or tender;  following deduction of all costs,expenses, charges, and unpaid fines from proceeds of the sale, the residual amount is returned to the
importer or owner.
14. An importer unsatisfied or aggrieved by a customs-related determination can appeal the
decision to the Revenue Appeals Tribunal, established under the Revenue Appeals Tribunal Act of
1998.  Until 2001, appeals were accepted only on issues related to customs valuation or customsclassification;  a refusal to license is now also possi ble to appeal.  Appeals to the Tribunal’s ruling can
be made to the High Court;  final appeal is to the Supreme Court.
(iii) Tariffs, other duties, and taxes
15. Goods imported into Zambia are generally subject to three types of duties: the customs tariff,
the excise duty, and the value-added tax.  The latter two apply equally to imported and domesticallyproduced goods.  Zambia adopted the Harmonized System (HS) in 1988.  Its 2001/02 tariff has
6,041 lines at the HS eight-digit level.  With the exception of 80 lines bearing alternate tariffs, all
other lines have ad valorem  tariffs.  Products subject to alternate duties include butter, wheat flour,
clear beer, and motor vehicles (Table III.1).  No items are subject to seasonal, specific, compound,
variable or interim tariffs.
Table III.1
Alternate tariffs, 2001/02
Product description Customs tariff
Butter 25% or K 850 per kg., whichever is greater
Wheat flour 25% or K 1000 per kg., whichever is greater
Cooking oil and margarine 25% or K 850 per kg., whichever is greater
Sugar 25% or K 500 per kg., whichever is greater
Sweets 25% or K 2000 per kg., whichever is greater
Aerated soft drinks 25% or K 650 per litre, whichever is greater
Clear beer 25% or K 800 per litre, whichever is greater
Electric accumulators 25% or K 1100 per litre, whichever is greater
Motor vehicles, e.g. cars 25% or K 2 million per vehicle, whichever is greater
Motor vehicles, e.g. pick-ups 15% or K 2 million per vehicle, whichever is greater
Source: Information provided by the Zambian authorities.
16. Implementation of tariff and customs regulations rests with the Zambia Revenue Authority.
Tariffs are changed on a financial-year basis as part  of budgetary deliberations;  an Act of Parliament
is the final authority for tariff amendments.
(a) MFN tariff levels and structure
17. Since 1996, the tariff structure of Zambia has remained broadly unchanged.  There are still
four tariff bands, although the rates on certain products have been changed within the 1996 range
(zero, 5%, 15%, and 25%).  The changes have occurred as part of a tariff rationalization process.  The
2001/02 simple average MFN tariff is 13.4% (Table AIII.1);  the 1996 average was 13.6.Zambia WT/TPR/S/106
Page 33
18. The coefficient of variation of 0.7 (as against 0.68 in 1996) indicates continued modest
dispersion of tariff rates from one category of products to another.  The modal (most common) rate of
15% applies to some 33% of tariff lines.  Close to two thirds of all lines bear a tariff rate of either 15%
or 25%, while some 21% of tariff lines (1,265 line s) are duty-free (Chart III.1).  Productive machinery
for agriculture as well as certain items such as books and pharmaceuticals are imported duty free.
Virtually all raw materials and most industrial or productive machinery fall within the 0 to 5% tariffcategories, and 72% of mining and quarrying-related tariff lines attract the 5% tariff rate.  The 15%
tariff band is generally applicable to imports of intermediate goods;  the 25% rate is reserved for final,
"non-essential" goods, including many consumer goods, and agriculture-related tariff lines.
(20.9%)
(15.1%)(33.0%)
(31.0%)
04008001,2001,6002,000
Duty free 5 15 25Chart III.1
Distribution of applied MFN duties, 2001/02
Number of tariff lines
Calculations include the ad valorem  part of alternate rates.  Figures in parentheses denote the share of
 total lines.WTO Secretariat calculations, based on data 
provided b y the Zambian authorities.Note:
Source : Tariff rates  (%)
19. Agriculture (including hunting, forestry, and fishing) remains the most protected sector,
followed by manufacturing (ISIC Revision 2 definition), with applied average MFN tariff rates of
18.7% and 13.2%, respectively.  The 25% tariff rate applies to a relatively high number of agricultural
products (Chart III.2).  The average applied MFN tariff in the mining and quarrying sector is 8.2%.
When the WTO definition is used, agriculture is still the most tariff-protected sector (18.5% on
average).  Applied MFN tariffs on WTO defined non-agricultural products, including petroleum,
average 12.7%.WT/TPR/S/106 Trade Policy Review
Page 34
Total
Manufacturing 
Mining and quarrying 
AgricultureDuty-free
5%
15%
25%01020304050607080Chart III.2
Breakdown of applied MFN duties by sector, 2001/02
Per cent
Note:
Source :Calculations include the ad valorem part of alternate rates.
WTO Secretariat calculations, based on data provided by the Zambian authorities.
20. In aggregate, Zambia's tariff structure shows negative escalation from first-stage processed
products to semi-finished goods, and positive escalation to finished products (Table III.2).  However,
positive escalation is present mainly on:  basic metal industries, with average applied MFN tariff rates
ranging from 2.8% on first stage processed products, and 7.1% on semi-processed products, to 15.0%on fully-processed products; and paper, paper products, printing and publishing, with average rates
rising from 5.0% on first-stage processed products, to 10.0% on semi-processed products, and 18.1%
on fully processed products.
21. During the Uruguay Round, Zambia bound customs duties on 16.24% of all tariff lines.  In
agriculture (WTO definition), all tariffs are bound, almost entirely at the ceiling rate of 125%, with afew exceptions, such as wheat and "meslin", rye, barley, and oats (45%); cocoa beans, cocoa paste,
cocoa butter, fat and oil, and chocolate and other f ood preparations containing cocoa (50%); and cocoa
powder, not containing added sugar or other sweetening matter (60%).  Meanwhile, tariffs were bound
on 3.6% of tariff lines for non-agricultural products, at the simple average bound rate of 42%.
6
Although tariff bindings are always desirable, their practical significance in Zambia in constraining
future tariff increases is undermined, as bound rates substantially exceed tariff levels.  Zambia has
made no commitments to reduce these ceiling bindings.
                                                     
6 See WTO (1996), for the list of non-agricultural products covered.Zambia WT/TPR/S/106
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Table III.2
MFN tariff escalation by ISIC-2 digit categories, 2001/02
ISIC
CodeDescriptionNumber of
linesAvg.  applied
tariffRangeStandard
deviation
(Per cent)
Total 6,041 13.4 0-25 9.5
- 1st stage of processing 697 15.2 0-25 9.2
- semi-processed 2,266 8.8 0-25 8.7
- fully processed 3,078 16.5 0-25 8.8
11 Agriculture and hunting
- 1st stage of processing 251 18.0 0-25 8.7
12 Forestry and logging
- 1st stage of processing 27 14.3 0-25 9.4
13 Fishing
- 1st stage of processing 49 24.2 5-25 3.4
21 Coal mining
- 1st stage of processing 4 15.0 15-15 0.0
22 Crude petroleum and natural gas production
- 1st stage of processing 3 11.7 5-15 5.8
23 Metal ore mining
- 1st stage of processing 23 5.0 5-5 0.0
29 Other mining
- 1st stage of processing 79 8.7 0-25 6.8
31 Manufacture of food, beverages and tobacco
- 1st stage of processing 107 19.3 0-25 8.0
- semi-processed 71 19.1 15-25 5.0
- fully processed 341 20.7 0-25 7.8
32 Textile, wearing apparel and leather industries
- 1st stage of processing 38 14.6 0-25 4.7
- semi-processed 487 14.0 0-25 6.3
- fully processed 444 24.1 5-25 3.8
33 Wood and wood products, including furniture
- 1st stage of processing 5 21.0 15-25 5.5
- semi-processed 36 22.8 15-25 4.2
- fully processed 52 23.3 5-25 4.3
34 Paper, paper products, printing and publishing
- 1st stage of processing 19 5.0 5-5 0.0
- semi-processed 68 10.0 5-25 7.0
- fully processed 72 18.1 0-25 10.4
35 Chemicals, petroleum, coal, rubber, plastics
- 1st stage of processing 58 6.5 0-15 6.1
- semi-processed 1,200 6.0 0-25 8.3
- fully processed 368 15.8 0-25 9.6
36 Non-metallic mineral products except of petrol. & coal
- 1st stage of processing 2 25.0 25-25 0.0
- semi-processed 32 13.1 5-25 5.4
- fully processed 131 14.3 5-25 5.8
37 Basic metal industries
- 1st stage of processing 16 2.8 0-5 2.6
- semi-processed 362 7.1 0-25 7.6
- fully processed 2 15.0 15-15 0.0
38 Fabricated metal products, machinery & equipment
- semi-processed 6 18.3 5-25 8.2
- fully processed 1,462 12.7 0-25 8.3
39 Other manufacturing industries
- 1st stage of processing 16 18.1 5-25 7.9
- semi-processed 4 12.5 5-15 5.0
- fully processed 205 20.0 0-25 6.6
40 Electricity
- fully processed 1 15-15 15 0.0
Note: Calculations include the ad valorem   component of alternate rates.
Source : WTO Secretariat calculations, based on data provided by the Zambian authorities.WT/TPR/S/106 Trade Policy Review
Page 36
(b) Other duties and taxes
22. In addition to customs tariffs, Zambia levies excise duties on certain products at rates ranging
from 5% to 125%.  Prior to the 2002 Budget, the major rates of excise duty were as follows:
electricity (7%), mineral/aerated water (10%), domestic kerosene (15%), industrial kerosene (30%),
diesel and petrol (60%), certain light oils and preparations (15%), petroleum gases and other gaseous
hydrocarbons (30%), opaque beer (35%), clear be er (85%), ethyl alcohol (125%), tobacco and wine
(125%).  In the 2002 Budget, excise duty was reduced from 60% to 30% on diesel fuel (automotive
gas-oil), and from 85% to 70% on clear beer.  Similarly, excise duty on electricity, a critical
production input and basic consumption good for many households, was reduced from 7% to 5%.
The duty on non-domestic kerosene was also reduced to 15%.  At the same time, to mitigate some of
the revenue losses from these measures, excise duties were introduced on a number of "luxury"cosmetic goods (perfumes and toilet waters, personal deodorants, manicure and pedicure preparations,
pre-shave, shaving or after-shave preparations, depila tories and other perfumeries, etc.) at the rate of
20%, and on certain transport vehicles at the rate of 5%.
7  The 15% surtax on locally produced opaque
beer was removed in 2001.
23. According to the authorities, rates are the sa me whether goods are domestically produced or
imported.  Excise duty is applied to the c.i.f. value of imports plus customs duty;   and on the sales
price (i.e. production costs plus mark-up) of locally produced goods.
24. In 1995, Zambia replaced its sales tax of 23% with a 20% value-added tax (VAT), with the
intention of enhancing export competitiveness by eliminating the cost of input sales tax for exporters,
and to remove distortions created by the cascading of the sales tax and other "nuisance taxes".8  The
VAT rate was reduced to 17.5% in July 1997.  This remains the standard rate collected on both goods
and services.  VAT is levied on the c.i.f. value of imports plus tariffs, and on the sales price ofdomestic goods.
25. Certain items are either zero-rated (subject to the VAT at the zero rate) or exempt from VAT
(not subject to the VAT/VAT Act).  This differentiation allows refunds of VAT already paid on inputs
used to produce zero-rated items, while the VAT collected on inputs used to produce goods exempt
from the VAT cannot be refunded.  Major zero-rated items include exports of goods and services fromZambia, including the directly linked services;  basic foodstuffs (excluding frozen, canned or dried
basic foodstuffs) and certain agricultural products;  certain agricultural inputs;  aviation fuel;  certain
tourist services;  and medical supplies.  Hotel accommodation in Livingstone is zero-rated (on an
experimental basis) for two years starting in 2001.
26. VAT exemptions apply to, inter alia :  water supply and sewerage services provided by a local
authority; health supply services;  educational services, from nursery school to university;  books and
newspapers;  passenger transport services by air, road, rail, and boat;  certain financial services;  the
supply to a bank of gold in bullion form; supplies to specified persons/groups of persons;  funeral
services;  domestic kerosene;  trade union subscriptions;  mosquito nets;  and road construction
agreements, concluded prior to 1 July 1995.
9  The VAT paid by tourists on goods worth more than
K 1,000,000 is refunded when the goods are exported.
27. The import declaration fee (IDF) was discontinued on 1 July 1998.
                                                     
7 Zambia Revenue Authority (2002).
8 See WTO (1996) for details.
9 Zambia Revenue Authority (2002).Zambia WT/TPR/S/106
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28. Zambia bound other duties and charges at 0%.
(c) Tariff preferences
29. Exceptions to MFN tariff treatment include preferential access for members of regional
trading arrangements in which Zambia participates:  all goods are freely traded between Zambia and
COMESA members that have met their free-trade area (FTA) commitments (Chapter II(5)(ii)(a)).
Tariff preferences are accorded by Zambia to the other  COMESA members on a reciprocal basis.
30. The Southern African Development Community (SADC) is another significant regional
agreement for Zambia;  among other countries, it includes South Africa.  Effective 30 April 2001,
Zambia began to implement its commitments under the SADC Trade Protocol and to grant duty-free
access, on a reciprocal basis, to imports of Category A products from SADC members that have also
deposited their implementation instruments.10  Zambia has no bilateral agreements that provide for
reciprocal tariff preferences.
(d) Rules of origin
31. Zambia has both preferential and non-preferential rules of origin.  Preferential rules of origin
apply under regional and bilateral trade arrangements to which Zambia is a signatory.11  While
COMESA provides for four alternative criteria for determining origin on which an exporter may
claim eligibility for preferential treatment (Chapter II(5)(ii)(a)), SADC rules of origin are negotiated,
in many cases, on a product-by-product basis, making them complex and varied across products
(Chapter II(5)(ii)(b)).  In all cases, an appropriat e certificate of origin, issued by the exporting country
must accompany eligible imports.  For countries co vered by more than one agreement, an importer
has a choice of arrangement under which to import the goods.
32. Under the non-preferential rules of origin sp ecified in Section 73 of the Customs and Excise
Act (Chapter 322 of the Laws of Zambia), provided a manufactured good contains not less than acertain (unspecified) level of material or labour as local content, or has been subjected to certain
unspecified processes, its last point of processing is deemed its origin.
(e) Duty and tax concessions and exemptions
33. In the past, Zambia had numerous duty and tax exemptions.  Under the 1993 Investment Act,
farmers, non-traditional exporters, import-competing firms and small-scale and village enterprisesqualified for numerous duty concessions on machinery and equipment.  In order to limit revenue
losses, the 1995 and 1996 Budgets confined the scope of duty concessions to selected goods and
beneficiaries.
12  According to the authorities, the duty concessions still in force are generally provided
under legal instruments;  the provision of selective suspensions has been abolished.  However, the
1994 Statutory Instrument 24 on eligibility criteria for selective suspensions of duty on manufacturinginputs is still in force.  However when a claim is made for duty concession, the burden of proof to
show requisite entitlement lies upon the claimant.
34. In the 2002 Budget, as a measure towards tackling the problem of malaria, customs tariffs
were removed on fabrics used in the manufacture of mosquito nets and were suspended on
insecticides used in the treatment of mosquito nets.  Jute and other textile bast fibres, used in the
                                                     
10 Zambia Investment Centre (2001).
11 WTO document G/RO/N/15, 20 January 1997.
12 WTO (1996).WT/TPR/S/106 Trade Policy Review
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packaging of cotton lint were also removed from the list of products subject to customs tariffs.
Products imported under international conventions or agreements to which Zambia is a signatory
(e.g. the Vienna Convention on Diplomatic Relation s) are also exempt from customs duties (tariffs
and VAT).  The Investment Act, the Value-Added Tax Act and the Mines and Minerals Act also
provide for duty and tax concessions (sections (iii)(b);  (3)(iv);  and (4)(i)).
35. The following rebates, refunds, and remissions of duty remain in effect:  (i) refund or
remission of duty on goods destroyed or lost by accident while under Customs and Excise Division
control;  (ii) remission of duty on warehoused goods not worth duty;  (iii) refund of duty paid on
goods found to be defective or of faults manufacture after release from Customs and Excise Division
control;  (iv) refund or remission of excise duty on destroyed or defective goods;  (v) rebate of duty on
goods temporarily imported;  (vi) remission or rebate of duty on goods re-imported and on pettyconsignments;  (vii) refund or remission of duty on goods for diplomatic personnel;  (viii) remission
of duty on goods, including motor vehicles, temporarily imported by visitors and tourists;
(xix) remission of duty on commercial travellers' samples, on new residents' effects and on travellers'
effects;  (x) remission of duty on goods used in occupational therapy or training;  (xi) rebate, refund or
remission of duty on goods for scientific, relief or other programmes;  (xii) rebate, refund or remissionof duty on goods for establishment, rehabilitation or expansion of a business enterprise;  (xiii) refund
or remission of duty on goods for approved technical staff;  (xiv) refund or remission of duty on
goods imported or purchased by TAZARA;  (xv) refund or remission of duty on goods for
construction or operation of pipeline;  (xvi) ref und of duty on fuel, lubricants and other technical
supplies used in public transport aircraft;  (xvii) refund or remission of duty on aircraft stores and
equipment;  (xviii) remission of duty on airline and airline operator's documents;  (xix) rebates, refund
or remission of duty for a holder of mining rights;  (xx) remission of excise duty on goods purchasedin bond by the Zambia Defence Force;  and (xxi) rebate or remission of duty on goods imported by
the National Assembly.
36. The duty suspensions on maize provided for by the 1996 Statutory Instrument 12 is still in
force.
13
(iv) Customs valuation
37. Zambia applies tariffs on the c.i.f.  value of imports, the components of the value of import
being cost, insurance (up to entry point), freight and other costs related to acquisition and importation
of the goods.  All expenses incidental to placing goods on board the ship ready for export to Zambia
are also included.  The dutiable value of goods is always considered to be, not less than the f.o.b.
price of the goods to the importer.
38. Zambia has discontinued its mandatory preshipment inspection system.  Since 1 January
2000, the principal methods used for customs valuation have been based on the transaction value,
i.e. the price actually paid or payable when a good is sold for export to Zambia.14  In cases where the
transaction value cannot be ascertained, the price actually paid for similar goods, adjusted for
differences in cost and charges based on distance and mode of transport, is determined as thetransaction value.  If more than one transaction value is ascertained, the lowest value applies.
Alternatively, in case of presumed under-valuatio n of imports, a computed or deductive value may be
used, based on production and commercial cost of the imported good.  There are no import deposit
requirements nor are minimum import prices applied.
                                                     
13 See WTO (1996).
14 WTO document G/VAL/N/1/ZMB/1, 5 October 2000.Zambia WT/TPR/S/106
Page 39
39. Zambia is a member of the World Customs Organization.
(v) Import prohibitions, quantitative restrictions, and licensing
40. Zambia completed the dismantling of import li censing in 1995.  Following the suspension of
the Exchange Control Act in 1994, and termination of the open general licence (OGL) scheme,
Zambia does not exercise licensing requirements on imports, save for a short negative list, primarily
for (according to the authorities) sanitary and phytosanitary purposes and as a result of the CITESagreement.
41. According to the authorities, Zambia maintains import prohibitions and controls only for
environmental, moral, health, and security reasons, and under international conventions.  Import
prohibitions cover:  (i) false or counterfeit coins or banknotes, and any coins or banknotes that are
intended for circulation in Zambia, although they are not legal tender in Zambia;  (ii) any goods thatare indecent, obscene or objectionable;  (iii) goods manufactured or produced wholly or in part by
prison labour or within or in connection with any prison, jail or penitentiary excluding  bona fide  gifts
made by a prisoner for the personal use of a private individual;  (iv) pirated and counterfeit goods and
any goods bearing false or misleading marks or descriptions as to their origin, purpose and use;
(v) qilika;  (vi) any goods prohibited for import by or under the authority of any law;  and (vii) anyother goods that may be declared to be pr ohibited goods by official statutory order.
42. Zambia maintains no quantitative restrictions.
(vi) Anti-dumping, countervailing, and safeguard measures
43. Sections 74, 75, and 79 of Zambia's Customs and Excise Act (Chapter 322 of the Laws of
Zambia), as amended up to 1999, provide the legal basis for anti-dumping and countervailing
measures.  Zambia plans to update its anti-dumping and countervailing provisions to bring them into
compliance with its WTO obligations, perhaps as early as 2003.
15  There are also provisions for anti-
dumping and countervailing measures under the COMESA Treaty and SADC Protocol.
44. A petitioner who considers that a countervailing or an anti-dumping duty ought to be imposed
on imported goods must provide necessary information in support of the complaint to the
Commissioner of Customs and Excise (the Commissioner is responsible for the administration of the
Customs and Excise Act, including its anti-dumping and countervailing provisions).  On receipt of thecomplaint, the Commissioner undertakes an investigation and reports the results to the Finance
Minister, who makes the final decision (in consultation with the Minister of Commerce, Trade and
Industry).  The legislation does not apply to goods imported into Zambia under rebate of the ordinary
duty.
45. The level of anti-dumping duty to be levied mu st be equivalent to: an amount by which the
domestic value (in the country of export) exceeds the export price (if any) of the concerned good;  an
amount equal to the domestic value of the good, in case of a good for which there is no export price;
or an amount to be determined by the Commissioner of Customs and Excise, should the good be one
for which there is no export price or domestic value.
                                                     
15 For Zambia's initial notification on relevant laws and regulations on anti-dumping, see WTO
document G/ADP/N/1/ZMB/1, 27 April 1995.  The Customs and Excise Act and the Customs and Excise(General) Regulations, 1999 with amendments to the section on anti-dumping duties (Section 74, 75, and 79)),
were notified to the WTO (as an accompanying document).  See WTO document G/VAL/N/1/ZMB/1,
5 October 2000.WT/TPR/S/106 Trade Policy Review
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46. A 15% anti-dumping duty, in effect since the early 1970s, on window and door frames of iron
or steel (HS 7308 3000), irrespective of the country of origin16, was repealed in 1999.  No anti-
dumping action is currently in force in Zambia.
47. Statutory Instrument 54 of 1994 lays down the investigations required for imposing
countervailing duties on "subsidized imports" to Zambia.  It requires that procedures and conditions
be in conformity with those stipulated in any in ternational trade agreements to which Zambia is a
signatory.  The amount of countervailing duty pa yable must be equal to the amount of any export
compensation, incentive, subsidy or other amount paid or payable to an exporter, manufacturer or
supplier in respect of the export of the good concerned.  No countervailing action has been taken by
Zambia.
48. Zambia does not have any specific safeguard laws and has never taken safeguard actions.
Proposed  safeguard legislation is currently being discussed with the Ministry of Legal Affairs and the
Ministry of Commerce, Trade and Industry (MCTI).
(vii) Standards and other technical requirements
(a) Standards, testing, and certification
49. The Zambia Bureau of Standards (ZABS) is Zambia's National Standards Body responsible
for the development of standards and conformity assessment schemes, which include product
certification, and quality management systems certification.  The Bureau operates under the Standards
Act No. 20 of 1994 (Chapter 416 of the laws of Zambia), which is a revision of the Zambia Bureau of
Standards Act No. 22 of 1982.  Under the Act, three types of standards can be established in Zambia:
voluntary standards published by ZABS; compulsory standards for the promotion of public safety or
otherwise in the public interest; and export standards for the promotion or development of exports.
The two latter types can be declared only by the Minister responsible for Commerce, Trade andIndustry;  to date, none has been declared.
50. Zambian exporters may produce goods that comp ly with the requirements set by foreign
importers even if such standards are at variance with national standards.  However, if an export
standard is declared, then exporters may not export unless they comply with this standard.  Under the
Act, the Minister may restrict for a limited period, the sale of any product that is suspected of beingdangerous or unsafe.  A supplier of any product j udged to be unsafe or dangerous is liable to
prosecution and may, in addition, be ordered to recall the product from the market at his own expense
and accordingly compensate the buyers of the product.  The Standards Law has not been revised
since 1994, but there are plans to revise some of its provisions.  The expected revision is to, inter alia ,
re-emphasize the functions of the Bureau taking into account the development of the quality function;and to provide for re-organization of the administrative function to align the Bureau's activities on
those regional and international bodies, i.e. to cover,  inter alia , standards, metrology, certification,
and testing.
51. Zambian standards are mainly based on international standards developed by international
standards-setting bodies such as the International Standards Organization (ISO), and the CodexAlimentarius Commission.  Zambia is an affiliate member of the International Electro-Technical
Commission (IEC), but has not been a member of the ISO since the 1980s;  plans are under way for
Zambia to rejoin the organization by the end of 2002.  As a result, Zambia has not had access to ISO
publications except on an ad hoc basis.  This severely hampers ZABS' ability to carry out its mandate.
                                                     
16 WTO (1996).Zambia WT/TPR/S/106
Page 41
Zambia has notified the WTO with respect to the adoption of the Code of Good Practice and the
creation of a WTO/TBT Enquiry Point under the ZABS.17  However, the Enquiry Point has not been
active because it lacks financial and basic technical resources (Chapter II(7)(ii)).  Zambia also
continues to participate in regional programmes aimed at harmonizing standards and conformity
assessment schemes such as those under COMESA and SADC.18
52. ZABS implements the Standards Act by formulating various standards, such as basic
standards, product standards, and method standards.  It implements the standards through a product
certification marking scheme whereby a manufacturer of a product that meets a Zambian standard
may apply to use the Bureau's certification mark under a scheme of supervision that includes
inspection and testing of the marked product.  Pa rticipation in the certification scheme is open to
manufacturers outside the country as well.  The Bureau also provides training and consultancy instandardization, as well as schemes for inspection of designated commodities.  ZABS also operates a
small metrology laboratory, which offers calibration services in the fields of mass, length, and
pressure.
53. Currently, there are around 350 Zambian Standards, covering building and construction, food
and agriculture, textiles, and chemicals.  A number of draft standards have been finalized but notpublished because of resource limitations.  ZABS has limited testing facilities, and Zambia does not
have an accreditation body.  ZABS has signed a Memorandum of Cooperation with the Malawi
Bureau of Standards and cooperates with national standards bureaux within SADC and COMESA, but
it has not entered into any mutual recognition agreements.  Therefore, there is no automatic
recognition of any overseas certification schemes, even when the service providers claim to be
accredited abroad.  Where the service provider is registered in Zambia, ZABS may unilaterally
recognize the accreditation.
(b) Sanitary and phytosanitary requirements
54. Zambia's sanitary and phytosanitary regulations are administered, as appropriate, by the
Ministries responsible for Agriculture;  Commer ce, Trade and Industry;  and Health.  These line
ministries have the enquiry points for dealing with  issues related to Zambia’s international sanitary
and phytosanitary obligations.
55. The Section of Animal Production and Health, within the Ministry of Agriculture and
Cooperatives, administers the Animal Production and Health Act.  This Act provides detailed
guidelines on disease reporting, control procedures, including public health and imports and exports
of live animals and animal products.
19  A veterinary permit is required for imports of live animals, and
must be accompanied by a sanitary certificate from the exporting country.  The Act also provides forthe establishment of the institutional framework for animal disease control and the definition of the
roles of the various stakeholders.
56. The Plant Quarantine and Phytosanitary Service, a division within the Ministry of Agriculture
and Cooperatives, regulates plant movement.  The Service administers the Plant Pest and Diseases
Act and the Noxious Weeds Act.  These Acts cover movement of plants, seeds, fruits, plant parts, andother plant materials.  The Noxious Weeds Act covers the introduction, prevention of spread, and/or
establishment of noxious and/or invasive species.  Transportation and moving of the above within or
                                                     
17 WTO document G/TBT/CS/N/104, 16 October 1998.
18 Zambia Bureau of Standards (2002a).
19 The Department has been notified to the WTO as the national enquiry point (WTO document
G/SPS/N/ZMB/2, 2 September 1998).WT/TPR/S/106 Trade Policy Review
Page 42
out of the country must comply with the stipulated regulations, including import permits and
phytosanitary certificates, as the case may be.
57. All foodstuffs, of plant or animal nature, incl uding timber and seeds, are subject to inspection
on arrival in Zambia.  Grain shipments are currently subject to fumigation to minimize the spread of
storage pests, including the Larger Grain Borer.  Imports of live animals, plants, and seeds are subject
to quarantine regulations, irrespective of the country or region of origin.  Except in suspicious cases,products are not generally tested at the borders.  Infected or infested, and unlawfully imported goods
that are not possible to treat are subject to destruction without compensation.  Rates for certification
and inspection fees vary according to the Fees and Fines Act administered by the Ministry of Legal
Affairs.
58. The Ministry of Health deals with all other issues relating to food safety and labelling.  The
Ministry administers the Food and Drug Act.  The Act has recently been reviewed to align it on the
Codex Alimentarius prescriptions.
59. Prohibited goods that are unlawfully imported into Zambia are seized, forfeited, and
destroyed.
(c) Marking, labelling, and packaging
60. A national standard stipulates labelling requirements;  these mainly reflect Codex
Alimentarius requirements.  Sale of perishable products that do not show expiry dates has been
banned by the Government; such products are subject to seizure if shelved at retail outlets.  For
purposes of labelling, the country of origin of a processed food is the country in which the product
undergoes processing and changes its nature.
61. The Zambia Bureau of Standards is responsible for labelling standards.  Guidelines were
published in 1992 and have not been revised since.  Unlabelled food and babies' food containing afood additive are generally not allowed to be sold.  The Food and Drug Act of September 1978, which
specifies packaging and labelling requirements, is still in force.
62. Under the National Flag and Armorial Ensigns Act of 1965, neither the national flag nor the
armorial ensigns of Zambia, or any part of the design thereof, can be copied, duplicated or marked on
a good that is to be sold or imported for sale, without written permission.
20
(viii) Government procurement
63. Zambia is neither a member of nor an observer to the Plurilateral Agreement on Government
Procurement.
64. The Zambia National Tender Board Act of 1982 (Chapter 394 of the Laws of Zambia)
provides the legal framework for the regulation and procurement of goods and services for theGovernment of Zambia and its parastatal bodies.  The Zambia National Tender Board (ZNTB), a
government institution operating under the provisions of that Act, is responsible for all public
procurement-related activities.  These include enhancing the capabilities of government ministries and
parastatals in the area of procurement, as well as implementation of procurement decisions consistent
with agreed procedures of donor organizations and funding agencies.
                                                     
20 Dun and Bradstreet (2001).Zambia WT/TPR/S/106
Page 43
65. Subject to certain threshold levels, responsibility for procurement is in the hands of the
respective ministry:  currently, procurement up to K30 million is handled by the ministry or
department.  Once the procurement unit within a ministry or department has been trained in proper
procurement procedures, and certified by ZNTB, the threshold can be raised to a maximum of
K1.2 billion.  Tenders above that amount are to be handled directly by the ZNTB's Central Tender
Committee.
66. There are three types of formal tendering methods:  selective tender;  limited tender;  and
open tender.  Selective and limited tenders are conducted from a shortlist of prequalified firms.  The
list needs to be approved by a relevant tender committee and is usually updated annually.  These
tenders do not require gazetting.  An open tender must be gazetted;  it is open to any bidder, national
or international.
67. Price preferences are available to local suppliers:  goods manufactured in Zambia containing
local materials, labour and services representing not less than 40% of the value of the finished
product, are eligible for a price preference of 15%;  goods produced by Zambian small business
enterprises are eligible for a price preference of 20%;  local contractors are eligible for a price
preference of 7.5%;  and goods imported and held in stock by merchants in Zambia are eligible for aprice preference of 5%.
68. Efforts are also under way to deal with the problems of corruption within the procurement
process.  A Code of Conduct for officials involved in procurement matters has been formulated and is
in the process of implementation.  ZNTB, in the meantime, is working with the World Bank and other
donors to improve the procurement regime, to make it consistent with international standards.
Official interest has also been expressed about membership of the Agreement on Government
Procurement;  however, the obligations that membership to the agreement will entail are not yet fullyunderstood.
69. A ministry or parastatal that is not satisfied with determinations made by the Central Tender
Committee can appeal to the ZNTB, which is the Secretariat for redress.
(ix) Local-content requirements
70. A local content of at least 40% makes local suppliers eligible for a 15% price preference
under Zambia's tendering system (section (viii) above).
71. In an amendment to the Investment Act, in 199 6, special incentives for investment in import-
substitution industries using a significant proportion of local raw material and resulting in net foreign
exchange savings, were withdrawn.  Investors granted investment certificates with these special
incentives prior to January 1996, however, are eligib le to continue enjoying such incentives.
(x) Other measures
64. Zambia currently applies no trade sanctions, either nationally or internationally, except in
conformity with United Nations Resolutions or other regional organizations of which it is a member.
72. Zambia has no countertrade or offset arrangements, or agreements with foreign governments
or enterprises, designed to influence the quantity or value of goods and services exported to Zambia,nor does it maintain any surveillance measures on imports.WT/TPR/S/106 Trade Policy Review
Page 44
(3) MEASURES DIRECTLY AFFECTING EXPORTS
(i) Registration and documentation
73. There are no specific requirements for exporters.  All businesses engaging in trade are
required to register with the Patents and Companies Registration Office.  Documentation is the same
for all exporters.  Exporters must complete and submit an export declaration form indicating range
and value of products being exported, mainly for statistical purposes, along with an accompanyingcommercial invoice and packing list for shipment.  If preferences are being claimed in the importing
market (e.g.  reduced tariffs), then an appropriate stamped certificate of origin from the Zambia
Revenue Authority is required.  Meat and poultry products, under the coverage of the Veterinary
Department, require a sanitary certificate, and a phytosanitary certificate is required for plants, seeds
and fruits.
21
74. Exporters of textiles and clothing are required to register with the ZRA in order to benefit
from preferences under AGOA and SADC.
75. Following repeal of the Exchange Control Act in February 1994, Zambia abolished export
surrender requirements.  However, subsequent to the depreciation of the kwacha, the Bank of Zambia
decided to put in place regulatory measures aimed at stabilizing the exchange rate (Chapter I(2)),effective January 2001.
22
(ii) Export taxes
76. According to the authorities, there are no taxes, charges or levies on exports from Zambia.
(iii) Export prohibitions, controls, and licensing
77. Zambia maintains export prohibitions on certain logs (Chapter IV(2)(iii)(e)), under
international agreements and conventions to which it is a signatory  (e.g. the Convention on
International Trade in Endangered Species of Wild Fauna and Flora (CITES)).  Grain exports, maizein particular, are occasionally subject to ban by the Ministry of Agriculture and Cooperatives during
drought years, to forestall shortages on the domestic market.  Such a ban was put in place in 2002.
78. There are no general export licensing requirements.  However, export declaration forms must
be completed, primarily for statistical purposes.  Certain goods continue to require special export
permits:  fertilizers, firearms, live animals, historical artefacts, and wildlife trophies.  Gemstonesexports are subject to pre-export inspection and valuation by the Ministry of Mines and Minerals
Development, which thereafter issues a special permit.  Timber, too, requires a verification certificate
from the Forestry Department.
23
                                                     
21 Zambia Investment Centre (2001).
22 As foreign exchange supply was often short and erratic, speculative tendencies developed to the
extent that the U.S. dollar became a parallel legal tender.  Local services and goods providers invoiced anddemanded payment in hard currency, preferring to hold U.S. dollars, given the predictable depreciation of thekwacha.  By end 2000, speculation had reached such heights that supply of foreign exchange was made only atmonths-end when kwachas were needed to cover corporate/wage obligations;  this pent up demand, in turn,
caused further slippage in the value of the kwacha.
23 Zambia Investment Centre (2001).Zambia WT/TPR/S/106
Page 45
79. There are no export quotas and no voluntary restraints operating on exports from Zambia.
(iv) Export subsidies and assistance
80. Zambia provides a variety of incentives to assist exporters and investment in export-oriented
industries.  Under the 1993 Investment Act, most recently amended in 1998, a concessional income
tax of 15%, compared with the standard rate of 35%, is granted to exporters of non-traditional goods
who hold an investment licence.24  Investments in the tourism sector that earns foreign exchange in
excess of 25% of gross annual earnings are exempt from duties and VAT.
81. Exporters are entitled to a duty drawback on inputs used for export production.  The duty
drawback scheme is based on an input-output coeffici ent system at the individual firm or sector level.
Certain inputs (capital items, mi ning inputs) are ineligible.  The duties on imported raw materials used
in export production can be refunded within 30 days.  Exports are also zero-rated for VAT refundpurposes, although imported machinery and accessories still attract VAT.
25
82. Goods stored in bonded warehouses or manufactured under bond are normally exempt from
customs duties and taxes when they are exported.
83. The income tax on agricultural enterprises is 15% instead of the 35% applied to other
enterprises.
(v) Export-processing zones
84. An Export Processing Zones (EPZ) Act (No. 7 of 2001) was enacted in November 2001.  The
Act provides for the establishment of an EPZ Authority in September 2002, and its functions;
constitution of the EPZ Authority Board; the establishment of EPZs and their licensing and
regulation; and the granting of incentives to investors and business enterprises in EPZs.  Apart from
the EPZ Authority, the Act envisions investors – referred to as developers – to develop EPZs in which
other investors will apply for licences to set up enterprises qualifying for EPZ status.
85. The Act also provides for granting EPZ status to new investment, to incremental investment
or to existing enterprises exporting 80% or more of their production, and for special incentives by
exempting those companies (given EPZ status) from the following taxes for a period of ten years
(with the possibility of renewal):  corporate tax;  withholding tax on dividends and tax on interest or
royalties;  capital gains tax;  import VAT;  customs duties on imported raw materials, plant andmachinery, intermediate and capital goods;  and excise duty.  Local labour laws apply to EPZ
companies.
(vi) Export promotion and finance
86. The Export Board of Zambia (EBZ) is a statutory government agency established in 1985 to
promote, develop and encourage exports of non-traditional goods from Zambia.  The EBZ is largelyfinanced by the Government; its members pay a nominal annual membership fee and contribute to
costs of promotional activities, including trade fairs.  The Board executes projects financed by foreign
donors relating to its activities.  Additionally, it provides informational and technical assistance to
registered exporters, aimed at diversifying products and markets, especially for non-traditional
                                                     
24 Investment licences are granted by the Zambia Investment Centre for all activities, excluding
banking, insurance, mining and quarrying.
25 Export Board of Zambia (2001).WT/TPR/S/106 Trade Policy Review
Page 46
exports; quality improvements; effective export marketing; promoting investment in export-oriented
enterprises; and fostering human resource development in export production and marketing.
87. The EBZ manages and coordinates the operati ons of a Global Trade Point Network of the
Global Trade Point Programme, an UNCTAD programme.  This programme both uploads Electronic
Trade Opportunities in Zambia for other countries, and downloads such opportunities elsewhere for
Zambian businesses.  Zambia is one of the eight trade points in Africa that have become operationaland have received UNCTAD's recognition.  The infrastructure for this programme needs to be
strengthened.
88. Three projects have benefited from external assistance:  Export Development Programme I,
Export Development Programme II, and the Mining Sector Diversification Programme
(Chapter IV(3)).  The Export Development Prog ramme (EDP), funded by the European Union, has
provided preshipment finance to producers' associati ons in five sectors.  The sectors are fresh cut
flowers, fruits, and vegetables;  coffee;  tobacco ;  high-value crops (paprika, herbs, spices, and
essential oils);  and cotton and textiles.  Credit is of three types:  short-term credit against export
documentation or letters of credit (60-180 days);  short-term credit for production inputs (up to
12 months);  and short-term credit for marginal capital expenditure.  These credits have enabled theassociations to undertake bulk purchases of inputs and make huge savings in input prices and
procurement costs.  The EDP I ended in September 1999, and EDP II is scheduled to begin in
September 2002.  It has been expanded to include leather, wood, and organic products.
89. A multi-purpose credit facility at the Bank of Zambia provides medium and long-term credit
financing through registered participating financial institutions (PFIs), which in turn lend to private
enterprises engaged in export related activities.
90. Zambia is a participant in the Africa Trade Insurance (ATI) programme, a pan-African
institution supported by the World Bank and by Lloyd's of London underwriters.  Its objective is to
facilitate access to, and improve the terms of finance for imports into and exports from participating
African countries.  ATI makes available to exporters quick and automatic political risk insurance for
trade transactions.  This is expected to increase Zambian exports to neighbouring countries.
(4) M
EASURES AFFECTING PRODUCTION AND TRADE
(i) Incentives
91. The 1993 Investment Act, as amended in 1996 and 1998, provides for general incentives,
such as tax concessions for enterprises established in rural areas, income tax reductions, and income
tax exemptions on dividends from farming.  Capital expenditure allowances, deductible in calculating
profits, are permitted for buildings, plant and machinery and farm improvements.  The income tax isreduced by one-seventh for rural enterprises during their first five charge years of business.
Additionally, a 100% allowance, in respect of expenditure, is available for certain improvements to
farming land, including surveys and water conservation;  and deductions are available for investment
in technical education and research.  The Act also al lows for tax paid in respect of foreign income to
be treated as a credit for countries with double taxation agreements with Zambia.
92. Under the Mines and Minerals Act 1995, any investment, including prospecting, by a holder
of a mining right can be deducted from income tax, and imports of productive mining equipment
required for exploration or mining can be exempt from customs, excise and VAT.  Further, the 1996
Finance Act reduced the rate of corporate tax from 35% to 30% for companies listed on the Lusaka
Stock Exchange, and abolished the super tax on profits made by large-scale mining enterprises.  In the
2002 Budget, the following tax concessions were extend ed to all mining companies: reduction in theZambia WT/TPR/S/106
Page 47
rate of taxation on income to 25%; removal of withholding tax levied on dividends, royalties, and
management fees as well as on interest payable by mining companies to shareholders and affiliates;
and reduction of the rate of mineral royalty to 0.6% of gross minerals produced.
93. Importation of most items of agricultural machinery, some categories of industrial machinery,
e.g. industrial furnaces and ovens, printing machinery, and other machinery used in food preparation,
and certain "merit" goods, e.g. books, fertilizers, primary forms of rubber, and steel, are exempt fromcustoms duty.  The value added tax system, meantime, permits VAT registration at the outset of
investment, input taxes to be recovered on capital purchases through monthly VAT returns (even prior
to commencement of trading), and repayment of excess input taxes over output taxes, rather than the
former being held as a credit against future liabilities.
(ii) Assistance to adjustment, and research and development
94. Under the provisions of the Small Enterprises Development Act of 1996, a Micro and Small
Enterprise Development Fund, operationalized through the National Savings and Credit Bank, has
been established under the aegis of the Small Enterprise Development Board to finance viable
economic activities.  Commercial banks operating in rural areas are exempted from payment of tax on
income or interest arising from lending to the small-scale sector.  Also, expenditure incurred intraining staff specializing in micro and small-scale enterprise financing is tax deductible.
95. The Government has put in place many schemes intended to facilitate the growth of micro
and small enterprises (MSE), as a means of attaining larger industrial-development goals.  The policy
with regard to the MSE sector is aimed at cr eating an enabling environment conducive to the
promotion of industrial and commercial business activities, labour productivity, flow of information,
capacity utilization, and export orientation.  Assistance schemes include favourable tax allowances on
the written down value of MSEs capital investments in buildings, equipment and machinery, as wellas a tax concession scheme involving a five-year tax holiday for MSEs based in rural areas (three
years for MSEs based in urban areas).  The Small Enterprises Development Board, offers a variety of
services, including feasibility studies/busi ness plan preparation, investment promotion,
entrepreneurship training, and facilitation of financial services.
96. Zambia has a Technology Development Advisory Unit (TDAU) based at the University of
Zambia.  The Unit provides training information and guidance, and acts as a bridge to research and
development centres.  The TDAU also provides design and testing services, and advice to small-scale
industries in selecting and procuring plant, equipment, and spare parts.  Research activities are
undertaken in livestock and pest control, tree improvement, water resources, and building industry
and food technology.
(iii) State-owned enterprises and privatization
97. Reflecting Zambia's ongoing liberalization efforts, State participation in productive and trade
activities has declined.  However, certain parastatals such as the Zambia Electricity Supply
Corporation (ZESCO), Zambia Telecommunications  Ltd. (ZAMTEL), and Zambia State Insurance
Corporation (ZSIC), still hold monopolies or exercise rights in their respective field of activity.
98. Zambia is in the process of privatizing almost all its state-owned enterprises through the
Zambia Privatization Agency (ZPA), established in June 1992 (under an Act of Parliament) as an
independent body, with an in-built majority of private-sector representation.  The ZPA reports to the
Ministry of Commerce, Trade and Industry.  By la w only three of the twelve members are appointed
by the State, they are (a) the Permanent Secretar y in the Ministry responsible for Commerce, TradeWT/TPR/S/106 Trade Policy Review
Page 48
and Industry;  (b) the Permanent Secretary in the Ministry responsible for Finance;  and (c) the
Attorney General.
99. The rest of the ZPA members, who are independently nominated by various sponsoring
bodies, and vetted by Parliament before being finally appointed by the President, are:  a representative
of the Zambia Confederation of Chambers of Co mmerce and Industry (ZACCI);  a representative of
the Zambia Congress of Trade Unions (ZCTU);  a representative of the Zambia Federation ofEmployers (ZFE);  a representative of the Law Association of Zambia (LAZ);  a representative of the
Zambia Institute of Certified Accountants (ZICA);  the Dean of the School of Business of the
Copperbelt University (CBU);  a representative of the churches in Zambia;  a representative of the
Bankers Association of Zambia (BAZ);  and a representative of the farmers.
100. State-owned enterprises are privatized in accordance with the divestiture sequence plan,
prepared by the ZPA and approved by the Cabinet.  Once targeted for privatization, enterprises are
valued by private (foreign or Zambian) agents.  Following receipt of bids, an appraisal process is
conducted by teams of ZPA staff and consultants.  Prior to final sale, either to Zambians or foreigners,
the draft sale agreement is reviewed by the Attorney General.  The Finance Minister may, on the
advice of the Cabinet, retain a part of a privatized enterprise and convert it into a "golden share";  sucha share awards the Government special rights to intervene, in exceptional cases and in the national
interest, in the operation of the firm.  Shares are also reserved for employees upon consultation.
101. Pursuant to Sections 8 (2)(f) and 22 of the Privatisation Act 1992 (now known as Chapter 386
of the Laws of Zambia), the modes of privatization that ZPA is mandated to employ are:  (i) public
offering of shares;  (ii) private sales through negotiated or competitive bids;  (iii) offer of additional
shares to reduce Government share holding;  (iv) sale of the assets and business;  (v) reorganization of
the enterprise before its partial or whole sale;  (vi) management or employee buyouts;  (vii) lease andmanagement contracts;  or (viii) long-term concessioning.
102. According to the authorities, tendering has be en the most frequently used privatization
procedure.  Though the initial sales were primarily smaller enterprises, the ZPA has since tackled a
much wider range.  Its working portfolio of 280 companies encompasses practically every sphere of
activity in manufacturing, agriculture, mining, financial services, tourism, transport, retailing, anddistribution.  As of 30 June 2002, 254 companies have been privatized and negotiations have been
completed for an additional three companies;  22 companies are "under preparation".
26
103. Following a slow start, the privatization process picked up momentum during the mid 1990s.
Eighty-one companies were sold in 1996 and a further 57 privatized in 1997.  The numbers have since
tapered off;  only eight companies were privatized over the twelve-month period ending31 December 2001 and two more over the six-month period ending 30 June 2002.  Cumulatively,
since January 1996, 204 companies have been privatized.  Notable among those privatized in 2001
were Kagem Mining Ltd., Dunl op Zambia Ltd., Lublend Zambia Ltd., and the Lunsemfwa and
Mulungushi Hydropower Stations.
27  The slowdown in the pace of privatization can partly be ascribed
to the fact that the smaller companies, which are easier to sell, have been disposed of and Governmentis handling more complex transactions that take longer to complete.  Low world commodity prices,
particularly for copper, as well as concern about political developments, have also been factors.
Table III.3 presents a list of public enterprises still in operation.
                                                     
26 Zambia Privatization Agency (2002).
27 Ministry of Finance and National Planning (2002a), "Privatization and Parastatal Reforms".Zambia WT/TPR/S/106
Page 49
Table III.3
State-owned companies, June 2002
Name of company Field of activity Share owned by State Status
Zambia Railways Limited Transportation 100% Negotiations in progress
Engineering Services
CorporationEngineering services 100% Mode of sale being determined
Indeni Petroleum Refinery Co. Oil refinery 100% 5% shares have been offered to ZPTF;
45% to be sold later
Ngoma Lodge-Kafue Nat'l.  Park Tourism 100% No bid in initial effort; to be re-advertised
Kafue Textiles (Zambia) Ltd. Textiles manufacturing 100% Withdrawal from privatization being
considered
Monarch Engineering 100% Advertised for resale; tender closed on
21 June 2002
Mosi-OA-Tunya (four
undeveloped sites)Tourism 100% Under preparation for leasing
Mukuba Hotel Tourism 24% Under preparation for sale
Mulobezi Railway Transportation 100% To be concessioned
National Airports Corporation –
LivingstoneTransportation 100% Mode of sale being determined
National Airports Corporation –
MfumeTransportation 100% Mode of sale being determined
National Airports Corporation –
NdolaTransportation 100% Mode of sale being determined
Ndola Lime Limited Manufacturing 100% Advertised for sale; closing date -26 July
2002
Nitrogen Chemicals Chemicals 100% Withdrawal from privatization being
considered
South Luangwa Park -- Luambe
CampTourism 100% Still available; under preparation for
leasing
TAZAMA Pipeline Oil pipeline 50% (with Tanzania) Company to be concessioned;  bidding
documents to be issued soon
Zambia Clay Limited Brick manufacturing 100% Previous sale rescinded;  company to be
re-advertised
Zambia Educational Publishing
HousePublisher 100% Decision yet to be made
Zambia Electricity Supply
CorporationElectricity generator and
distributor100% Preparations for concessioning under way
Zambia National Commercial
BankBanking 99.8% 51% being sold by competitive tender
Zambia Postal Services
CorporationPostal services 100% Consultant being recruited to provides
options for Government decision
Zambia State Insurance
Corporation Ltd.Insurance 100% To be restructured prior to privatization
Zambia Telecommunications
Company Ltd.Telecommunications 100% Cabinet has approved selling 20% shares.
Government still needs furtherclarifications
Source: Zambia Privatisation Agency (2002), Status Report as at 30 June.
104. The keystone for the entire programme so far has been the privatization of Zambia
Consolidated Copper Mines (ZCCM), the State's mining monopoly.  This privatization initiallyinvolved the unbundling of the conglomerate into nine autonomous units (packages) for separate
sale, the ZCCM privatization was completed in April 2000.  ZCCM is now dissolved and its mainWT/TPR/S/106 Trade Policy Review
Page 50
assets – the Nchanga, Konkola, and Nampundwe mines – have been sold to the South African mining
company, Anglo-American Corporation Plc.28  The remaining assets of ZCCM were sold to a
consortium comprised of Canada's First Quantu m Minerals Limited and Swiss trader Glencore
International AG.  What remains of ZCCM has been transformed into a holding company, under the
name of ZCCM Investment Holding Plc;  the Government of Zambia is the majority shareholder
(86.7% as of February 2002).
105. According to the ZPA, the companies currently  being prepared for privatization include a
large fertilizer manufacturing company, a large textile manufacturing complex, and the national
telecommunications services provider .29
106. Proceeds from the sales of shares and assets are paid into a Privatization Revenue Account
held at the Bank of Zambia.  Section 39(2) of the Privatization Act provides for various uses ofprivatization proceeds, including funding of the cost of privatization and the Privatization Trust Fund;
funding the restructuring of state-owned enterprises to be privatized; supporting redundancy payments
schemes, in consultation with the Ministry responsible for labour; and rehabilitating existing plants
and supporting new capital investment.  Total proceeds from the sale of privatized entities, up to
30 June 2001, was US$446 million plus K 20,580 million.
30
(iv) Competition policy
107. The Competition and Fair Trading Act (Chapter 417 of the Laws of Zambia) entered into
force on 15 February 1995.  The Act deals with agreements and concerted practices of enterprises and
organizations that are appreciably anti-competitive – cartels, exclusive dealership arrangements, bid
rigging, price maintenance – as well as issues pertaining to abuse of dominant position.  The Act is
aimed at ensuring effective competition in commerce and industry, and, in the process, safeguarding
consumer welfare and promoting economic growth.  There have been no changes to the Act since itsassent in 1995.
108. The Act introduced a code of conduct for all business entities and prohibits anti-competitive
trade practices, including the formation of cartels and collusive tendering.  The various prohibitions
listed under the Act relate to Anti-Competitive Trade Practices (Section 7); Merger Control
Regulations (Section 8);  Trade Agreements, Import and Export Cartels (Section 9);  Anti-Competitive Trade Practices by Associations (Section 10);  Controlling Monopolies and
Concentrations of Economic Power (Section 11), and Unfair Trading/Consumer Welfare and
Protection (Section 12).  For determination of abuse of dominant position, an entity must substantially
control a class of business throughout Zambia and have engaged in/be engaging in practices of an
anti-competitive nature that have the effect of preventing or lessening competition substantially.Generally, an entity is considered to be dominant if it has a level of market power that allows it to
behave independently of competitive pressures (e.g. pricing and distribution strategies).  An important
though not conclusive factor in determining dominan ce is the entity's market share;  less than 40%
denotes unlikelihood of market dominance.  Another important factor in establishing dominance is
whether there are barriers to market entry that give the existing entity an unfair advantage (strategic,economic or otherwise) over new or potential entrants.
                                                     
28 Anglo-American Corporation's recently announced d ecision to sell, transfer or close its Zambian
copper assets, including its investment in the Konkola Copper Mines, has added a dimension of uncertainty toZambia's economic liberalization programme.
29 Zambia Privatisation Agency (2002).
30 In respective currencies.Zambia WT/TPR/S/106
Page 51
109. Exemptions under the Act, listed in Section 3, include non-application of the Act to non-
manufacturing activities, e.g. mining.  Sanctions and penalties against anti-competitive practices
consist of fine not exceeding K 10 million or imprisonment for up to five years, or both.31  Decisions
are subject to appeal to the High Court, within 30 days of service of the notice of the decision and to a
further appeal, if necessary, to the Supreme Court.  The first case against anti-competitive practices is
just being prepared.
110. The Act (under Section 4) provides for an implementing agency, the Zambia Competition
Commission (ZCC).  The Commission has been in ex istence since May 1997 as a statutory corporate
body under the Ministry of Commerce, Trade and Industry.  ZCC monitors restrictive business
practices by firms and acts as an advocate for competition policy in the elaboration of
other government policies, such as privatization.  The institutions represented on the Board ofCommissioners are:  Ministry of Finance and Ec onomic Development; Ministry of Commerce, Trade
and Industry;  Zambia Federation of Employers;  Law Association of Zambia;  Zambia Bureau of
Standards;  Zambia Institute of Chartered Accountants;  Consumer Protective Association of Zambia;
Zambia Association of Chambers of Commerce a nd Industry;  Zambia Congress of Trade Unions;
Economics Association of Zambia;  and Engineering Institution of Zambia.
111. Between 1 January 2000 and 31 December 2000, 83 competition cases were handled;
14 cases were brought forward from the previous year.  Of the 69 complaints investigated during the
year 2000, almost half pertained to merger activity;  37 cases were carried forward to 2001.  Overall,
in the period 1998-2000, 172 cases were received, of which 135 were closed (Table III.4).  The most
cases received were Section-7 cases relating to restrictive business practices (39%), closely followed
by Section-8 cases relating to mergers and acquisitions (38%).  Cases related to trade agreements
(Section 9), trade associations (Section 10), and unfair trading (Section 12) typically constituted
approximately 25% of the case workload.
32
Table III.4
Competition cases receiveda, 1998-01
Legal Contravention 1998 1999 2000 2001 1998/2001
Section 7 (Restrictive Business
Practices)11 27 29 11 78
Section 8 (Mergers and
Acquisitions)13 21 31 16 81
Section 9 (Trade Agreements) 8 5 2 5 20
Section 10 (Trade Associations) 2 1 0 4 7
Section 12 (Unfair Trading) 5 10 7 11 33
T o t a l 3 96 46 94 7 2 1 9
a Cases  on which a final determination has not been made during a particular year are carried forward to the next year.  Eight
Section 7 cases, seven Section 8 cases and one Section 9 cases were carried over into 2002.
Source: Zambia Competition Commission (2001)  Annual Report ;  and additional information from the Zambian authorities.
112. As part of its liberalization reforms, Zambia has eliminated virtually all forms of price
controls.  However, the prices of petroleum products, air transport services, and fixed telephone
services are subject to approval by the relevant regulators.
                                                     
31 Section 16 of the Act.
32 Zambia Competition Commission (2001).WT/TPR/S/106 Trade Policy Review
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(v) Protection of intellectual property rights
(a) Overview
113. Zambia is a member of the World Intellectual Property Organization (WIPO)33 and the
African Regional Industrial Property Organization (ARIPO).  Zambia is a party to the Paris
Convention, the Berne Convention, the Patent Co-operation Treaty, the Madrid Protocol on Marks,
and the Harare Protocol.  Zambia is also signatory to the Universal Copyright Convention (underUNESCO).
114. The current intellectual property legislation of Zambia comprises: the Patents Act, the Trade
Marks Act, the Merchandise Marks Act, the Registered Designs and the Copyright and Performance
Rights Act.  Except for the last law, which was enacted in 1994, all of these laws became operational
in 1958.  In 1995, all Zambian laws were updated and consolidated into the version in use today,referred to as the 1995 Edition of the Laws of Zambia.  While the Patents Act covers all fields of
technology (provided that the invention is new, is not obvious, is practically useful, and does not
offend laws), the Trade Marks Act excludes service marks from registration.  A patent is obtainable,
and a design is registrable, through the traditional route (or national procedure) and through the
Harare Protocol, while a trade mark is registrable through the traditional route and can be registeredinternationally through the International Bureau of WIPO.
115. Zambia is amending its legislation on intellectual property to fully align it with the WTO
Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).  This is expected to be
completed by January 2006, though no changes have been enacted since 1996.  Substantial foreign
technical assistance, including from international in stitutions such as WIPO, would be helpful towards
attaining that goal.  In order to be compatible wi th the TRIPS Agreement, Zambia is making changes
to its industrial property laws (e.g. increasing the patent life from 16 to 20 years, introduction of apractice for service marks and geographical indications, etc.).  It is also preparing the enactment of a
new Plant Varieties Protection Act;  the final bill is under consideration by the Seed Control and
Certification Institute.
116. The Patents and Companies Registration Office (PCRO), part of the Ministry of Commerce,
Trade and Industry (MCTI), executes most but not all Zambian industrial property laws, which arestatutes relating to trade marks, patents, merchandise marks, and industrial designs.  Data on
applications and grants/registrations of industrial property rights are presented in Table III.5.  The
Copyright Administration Office of the Ministry of Information and Broadcasting Services regulates
copyright.
34
117. The onus is on the right owner for bringing cases against infringement under the respective
industrial property law35, except under the Merchandise Marks Act.  In these civil cases, the State has
little or no active role except provision of the courts.  However, counterfeiting of trade marks is
considered a criminal offence under the Merchandise Marks Act, and the customs authority is
empowered to seize offending imports (but not exports).
                                                     
33 WTO document  IP/N/4/ZMB/1, 7 November 1996.
34 The various enquiry points have been notified to the WTO (WTO document IP/N/3/Rev.4, 22 June
2000).
35 The intellectual property laws of Zambia (in section 8 of the Patent Act, section 13 of the Registered
Designs Act and section 73 of the Trademarks Act) co nfer national treatment and MFN treatment to foreign
nationals who are based in WTO Members or in member States of the Paris Convention (WTO document
IP/N/2/ZMB/1 of 23 June 2000).Zambia WT/TPR/S/106
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Table III.5
Intellectual property-related applications and grants/registrationsa, 1994/01
Year Patents Trade marks Designs
Applications 42 507 1 1994
Grants/Registrations 39 123 -
Applications 37 741 6 1995
Grants/Registrations 35 40 9
Applications 44 798 1 1996
Grants/Registrations 45 406 5
Applications 30 781 7 1997
Grants/Registrations 43 317 9
Applications 39 817 6 1998
Grants/Registrations 51 556 10
Applications 37 927 22 1999
Grants/Registrations 44 494 6
Applications 50 1,119 53 2000
Grants/Registrations 30 525 6
Applications 33 804 15 2001
Grants/Registrations 27 755 25
a All figures contained in the table may be subject to a variance of about  ± 10 as they are based on advertisements from the
Zambia Patent and Trade Marks Journal for the period.
Source: Information provided by the Patents and Companies Registration Office (PCRO).
118. Although there have been a few recent examples of effective enforcement, notably against
pirated musical and video recordings, piracy is still rampant.  Small-scale trade mark infringement
also occurs for some packaged goods through copied or deceptive packaging.
(b) Copyright
119. Copyright is protected by the 1994 Copyright and Performance Rights Act, which covers,
inter alia ,  literary, music, sound recordings, audio-visual and artistic works, broadcasts, and
computer programs.  Protection is executed by the Of fice of the Registrar of Copyright, within the
Ministry of Information and Broadcasting Services.  The Registrar of Copyright, a public officer
appointed under the Service Commissions Act, 1991, registers and monitors the activities of
collecting societies, examines cases of alleged copyright infringement, and arbitrates between users of
artistic works and artists/societies.  Where necessary, the Registrar provides information and adviceon copyright matters to the Minister of Information and Broadcasting Services.  Subject to Articles II,
III and IV of the Appendix to the Berne Convention, the Registrar may grant licences to individuals to
translate or reproduce certain works.  The Copyright Act has not been amended since its enactment in
1994.
120. Copyright protection covers both economic and moral rights.  The rightholder has exclusive
economic right to authorize or prohibit the use of the work.  Exclusive moral right is to ensure that the
work is not misrepresented.  The duration of copyright protection extends for 50 years after the
author's death or, for audio-visual work, 50 years after it was first created or first made available to
the public.  For computer programs, the duration is also 50 years from the date of first use, while for
typographic arrangements it is 25 years from the date of first publication.
121. Copyright may be infringed by:  doing/performing a substantial part of an act controlled by a
copyright, without the consent of the owner of the copyright;  trading in infringing copies;  or
transmitting/broadcasting for the purpose of produc ing infringing copies.  Copyright infringementsWT/TPR/S/106 Trade Policy Review
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are actionable in a court of law and punishable, on a first conviction, by a fine not exceeding 50,000
penalty units (or ten penalty units for each infringing copy, whichever is greater)36, or imprisonment
for a term not exceeding five years.  Right holders may also be granted compensation by way of
damages, injunctions, and confiscation of profits.
(c) Patents
122. Patent protection is provided for by the Patents Act of 1958 and the 1995 Statutory
Instrument 54.  A patent is obtainable under this law through either the National Procedure or the
ARIPO procedure.  The Patents and Companies Registration Office, an executive agency of the
Ministry of Commerce, Trade and Industry, administers the law.  There are many general principles
provided for under the law, which are applicable to both procedures.  The most notable of these
include the requirement that, for a process or product to be patentable, it must be novel, not obvious(or must involve an inventive step), must be capabl e of application in trade or industry, and must not
be seen to promote immorality or otherwise be offensive to written laws.  A further provision enables
a priority claim under the Paris Convention to  be made in any (convention) application that is based
on an earlier application made in another country.
123. It takes a minimum of 18 months to patent an item or process.  Under the National Procedure,
the application, accompanied by a filing fee of US$115 (if applicant is a foreign resident, whether a
Zambian citizen or not,) or K 30,000 (if applicant, has a local business address, whether a Zambian
citizen or not), is first substantively evaluated to see whether the technical content meets the
patentability qualifications.  Should the application be  acceptable, it is advertised in the Zambia Trade
and Patent Marks Journal to allow opposition from third parties, who must respond within three
months.  If no opposition is forthcoming, or any opposition is successfully challenged, the applicant
must request that a patent be granted.  Any opposition must be made to the Patents and CompaniesRegistration Office, which delivers it to the High Court for a hearing.  Appeals are possible to the
Supreme Court.
124. The ARIPO Procedure (AP), as stated in the Patents Act, is basically regulated under the
Harare Protocol.  This Protocol empowers ARIPO to  grant patents (and register industrial designs)
with effect to, and on behalf of, member states (like Zambia) that have effectively signed the HarareProtocol.  Any Harare Protocol contracting state is a receiving office for any patent application.  The
Patents and Companies Registration Office will prel iminarily examine the application as to form and
send it promptly to the ARIPO Secretariat (AS).  The AS will institute a further formal examination
followed by substantive search and examination.  Sh ould the application pass this stage, the AS will
then notify the applicant and Zambia.  Where the Zambian office considers that, for reasons of a legalbarrier, the patent granted by the AS will not have effect in Zambia, it must send a negative notice to
the AS within six months of the notification of impending grant.
125. According to section 28 (4) of the Patents Act and subject to the Act and conditions appearing
on the patent, any patent granted with effect in Zambia gives the patentee full power, sole privilege
and authority by the patentee, or his agents and licencees during the term of the patent to make, use,exercise and vend the invention within Zambia in such a manner as to him seems appropriate so that
he shall have and enjoy the whole profit and advantage accruing by reason of the invention during the
term of the patent.  Any person who contravenes these rights is deemed to infringe them and is liable
to injunction, interdiction, payment of damages, cost s and any other penalties as the High Court may
deem necessary.
37  A compulsory licence is obtainable in Zambia on the grounds of insufficient use of
                                                     
36 A penalty unit currently equals K 180.
37 The High Court is the court of first instance for infringement proceedings.Zambia WT/TPR/S/106
Page 55
the patented technology by the patentee in Zambia and, therefore, failure to meet the reasonable
requirements of the public.38 The reasonable requirements of the public are said not to be met in the
following circumstances:  (i) if the patented inve ntion, capable of being worked in Zambia, is not
being worked on a commercial scale, for no satisfactory reason;  (ii) if such working is being hindered
by the importation of the patented article by the patentee or his agents or by other people not
representing the patentee but whom the patentee is not suing for infringement;  (iii) if the demand forthe patented article in Zambia is not being met satisfactorily on reasonable terms;  (iv) if, by reason
that the patentee has declined to grant a licence on reasonable conditions, any current trade or industry
in Zambia (or the establishment thereof) is being prejudiced, and it is in the public interest that
licences should be granted;  (v) if any trade or industry in Zambia is being prejudiced by unfair
conditions attached by the patentee to the purchase, hire, licence or use of the patented article orprocess;  and (vi) if any restrictive condition, restraint of trade and public policy has been inserted in
any contract made for the sale or lease of or license to use or work any article or process protected by
the patent.
39
(d) Trade marks
126. Two laws govern the trade mark system in Zambia:  the Trade Marks Act and the
Merchandise Marks Act.  While the Trade Marks Act is the only legislation that provides for the
registration of trade marks and its incidental activities, it does not provide for practice relating to
service marks.  The Act regulates conduct for registration of a trade mark, rights given on registration
(including that the onus is on the proprietor to bring any civil action for infringement), infringement
of these rights, and obligations on trade mark owners after registration.  The Act provides for an initial
protection of seven years, which is extendable on payment of a renewal fee for another 14 years at
each renewal.40  The Merchandise Marks Act, on the other hand, regulates only the use of trade
descriptions.  It prohibits use of offending trade descriptions and forged trade marks on merchandise,
imported or for manufacture or sale in Zambia.
127. Trade marks are registrable in or with respect to Zambia under the National Procedure and
under the Madrid Protocol.41  Both methods are subject to certain general principles of practice.  For
instance, only the genuine owner of a trade mark is entitled to make a legally valid application.  TheNational Procedure provides that an application, upon filling in the PCRO, will undergo a formal
examination followed by a substantive search and examination to determine its suitability for
registration.  If acceptable, the applicant will be notified and must advertise the application in the
Zambia Trade and Patent Marks Journal  promptly to avoid lapse.  Opposition may be filed by any
person within two months of the advertisement;  if filed, a hearing is conducted by the Registrar,whose decision is subject to appeal to the High Cour t.  If there is no opposition, or if the application
                                                     
38 Observing the granting of patents in Zambia in order to encourage and foster trade and
industrialization in the country.
39 Restrictive conditions include prohibiting a purchaser, lessee or licensee from using any article(s)
supplied by the patentee or a person representing him, and requiring the licensee to acquire only from thelicensor any article not protected by the patent.
40 This Act is being amended to incorporate provisions of the Madrid Protocol, to which Zambia
became bound from 15 November 2001.
41 For a Zambian national or resident to take advantage of the Protocol, the trade mark in question must
already be registered in Zambia or the subject of a trade mark application pending registration in Zambia.
Application is made to the International Registrations Department of the World Intellectual PropertyOrganisation (WIPO), which thereafter registers the trade mark and informs all states where the international
registration is intended to extend to.  Domestic legislation to implement the obligations under the Madrid
Protocol is still pending.WT/TPR/S/106 Trade Policy Review
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survives opposition, the applicant must request the office to issue a certificate of registration; failure
to do so may cause the application to fall into irretrievable lapse.  Unlike enforcement measures for
patents and industrial designs, counterfeiting of trade marks is a criminal offence under the
Merchandise Marks Act, and the customs authority is empowered to seize offending imports (not
exports).
128. Current legislation does not protect service mark s.  However, in order to comply with the
TRIPS Agreement in respect of service marks, the Zambian Government is soon to amend the current
Trade Marks Act in order to assimilate into it adequate provision for protection of service marks.
(e) Designs
129. The Registered Designs Act of 1958, as amended, provides for protection of designs that are
either functional or artistic;  it is administered by the Patents and Companies Registration Office(PCRO).  The Act does not provide for opposition procedures.  The process of application is relatively
simple and governed under both the National Procedure and the ARIPO Procedure.  Following
substantive examination of an application (filed us ing forms prescribed under the Registered Designs
Act) and its approval, a term of protection of five  years is afforded, renewable for two consecutive
periods of five years.  To be registered, the design must be original and not similar to a design alreadyregistered.
130. Infringement cases are heard by the High Court.  Relief by way of injunctions and damages
may be awarded to the registered design holder.  Damages are not possible when the defendant was
not aware and had no reasonable grounds at the time for supposing that the design was registered.
False representation of a design is when a person indicates that a design is registered in Zambia when
it is not.  This is punishable, on conviction, by a fine of 1,500 penalty units or (on failure to pay)
imprisonment for a maximum of six months, or both.  Zambia has acceded to the Harare Protocol onPatents and Designs within the framework of ARIPO.  It has signed (but not ratified) the Washington
Treaty on Intellectual Property in Respect of Integrated Circuits, which has not come into effect yet.
(f) Geographical indications
131. Zambia intends, before January 2006, to implement various items of legislation, including
some amendments to old or current relevant laws, in order to meet its obligations for compliance with
the WTO TRIPS Agreement.  Specifically, Zambia intends to amend the Trade Marks Act to
incorporate protection of geographical indications.  The Trade Marks Act already contains provision
(Section 42) for protection of certification marks.