WT/TPR/M/340/Add.1  
19 September  2016 
(16-4931) Page: 1/33 
Trade Policy Review Body  
21 and 23 June 2016  Original: English/anglais/inglés  
 
  TRADE POLICY REVIEW  
ZAMBIA 
MINUTES  OF THE MEETING  
Addendum  
Chairperson: H.E. Ms. Irene Young (Hong Kong, China)  
This document contains the advance written questions  and additional questions by WTO 
Members , and replies provided by  Zambia .1 
 
 
Organe d'examen  des politiques commerciales  
21 et 23 juin 2016  
EXAMEN DES POLITIQUE S COMMERCIALES  
ZAMBIE 
COMPTE RENDU DE LA R ÉUNION  
Addendum  
Présidente : S.E.  Mme. Irene Young (Hong Kong, Chine)  
Le présent document contient les questions écrites communiquées à l'avance par les 
Membres de l'OMC, leurs questions additionnelles, et les réponses  fournies par  Zambie .1 
 
 
Órgano de Examen de las Políticas Comerciales  
21 y 23 de junio de 2016  
EXAMEN DE LAS POLÍTI CAS COMERCIALES  
ZAMBIA 
ACTA DE LA REUNIÓN  
Addendum  
Presidenta: Excma.  Sra. Irene Young (Hong Kong, China)  
En el presente documento figuran las preguntas presentadas anticipadamente por escrito  y 
las preguntas adicionales de los Miembros de la OMC,  así como las respues tas facilitadas por  
Zambia .1 
                                                
1 In English only./En anglais seulement./En inglés solamente.  WT/TPR/M/340/Add.1  
 
- 2 - 
 
  SECTION I : RESPONSES TO QUE STIONS BY THE UNITED  STATES OF AMERICA  
Response to Question 1   
The government of the Republic of Zambia has identified its comparative advantage in Agriculture 
by province. This information forms part of the Revised -Sixth National Development Plan and othe r 
policy documents.  
 
The table below provides summarised information on the comparative advantage for 
each province  
 
Province  Comparative Advantage  
Central Province  maize, sweet potatoes, soya beans and wheat production  
Copper belt Province  agricultural  development in general  
Eastern Province  groundnuts, tobacco, cotton, rice and sunflower  
Luapula Province  fish, rubber, cassava, tea, citrus fruit, rice, sugar and palm oil 
production  
Lusaka Province  agriculture, agro -processing  
Muchinga Province  paddy  rice, cassava, mixed beans and maize production  
Northern Province  cassava, coffee, paddy rice, mixed beans and millet production  
sugar, tea, fish production  
North western Province  
 honey, cassava, mixed beans, pineapples  
Western Province  Livestock, ric e, cassava, cashew nuts, citrus fruits, cattle and fish  
 
Additional steps have been taken to promote value addition based on the identified sectors 
through the Citizen Economic Empowerment Commission.  
 
Given that 70% of Zambia 's population is dependent on  Agriculture for livelihood, the growing 
demand for agro based products worldwide and changes in climatic conditions, the availability of 
vast arable land and water resources and the quest to diversify the economy from copper product, 
present a compelling case for Zambia to invest in the agriculture sector.  
 
Response to Question 2  
 
Initiatives adopted to promote investment in the agricultur e sector include the following:  
 
 construction of dams and canals to support agriculture production and  
 sinking of boreh oles in rural areas  
 establishment of milk collection centres  
 improving access to finance especially in rural areas.  
 promote guaranteed security on land tenure as collateral for small scale farmers to access 
finance for productive assets, technology and oth er inputs  
 rehabilitation and construction or road networks  
 construction of animal breeding centres  
 designation of land banks and improvement in the land tenure system.  
With regard to farm blocks, the Zambian government has set aside land through the land banks 
program for investors who wish to invest in this sector such as the Nansanga Farm Block 
~100,000 ha in Centr al province, Luena Farm block ~ 100,000 ha and Senanga citrus plantation 
1,200 ha  
 
Farm Blocks  
No. Farm block  Province  District  Size (Ha)  
1  Nasanga  Central  Serenje  155 000  
2 Kalumwange  Western  Kaoma  100 000  
3 Luena  Luapula  Kawambwa  100 000  
4 Manshya  Northern  Mpika  147 000  
5 Mikelenge/Luma  North -Western  Solwezi  100 000  
6 Musakashi (SADA)  Copper -Belt Mufulira  100 000  
7 Mungu  Lusaka  Kafue  100 000  
8 Simango  Southern  Livingstone  100 000  
9 Mwase -Phangwe  Eastern  Lundazi  100 000  WT/TPR/M/340/Add.1  
 
- 3 - 
 
  The expectation is that these farming blocks will facilitate on -site agro -processing and linkages 
between agricultural farm blocks, industrial estates and out -growe r schemes.  
 
Therefore, each farming block is designed to have at least one core large -scale farm (core 
venture) of 10 000 hectares and will be complemented by many commercial farms of 1 000 to 
5 000 hectares and small holdings - farms of 30 to 300 hectares  preferably under out grower 
arrangements on similar lines like the Nakambala Sugar Estate.  
 
In addition, Zambia has identified priority sectors that can be supported by way of fiscal a nd 
non-fiscal incentives and Agriculture is one of such sectors. From t he fiscal perspective, the 
initiatives in place include Import duty rates of Zero for tractors, Centre pivots fertilizer, herbicides 
and fungicides. Incentives are available to any investor in identified priority areas, provided the 
investor meets the inve stment threshold of US$500,000.  
 
For investors in Manufacturing operating in Multi Facility Economic Zones (MFEZs), Rural area or 
industrial park, exemption of tax are extended on income for five years, dividend are also exempt 
for the same duration.  
 
Further, the Government is promoting both local and foreign investors including multinational 
companies to invest in the agriculture sector. There are a number of MNCs operating in Zambia, 
especially in the seed sector  
 
Response to Question 3  
 
The Financial Se ctor Development Plan (FSDP) is a comprehensive strategy adopted by 
Government to address the current weaknesses in the Zambian financial system. It is aimed at 
guiding efforts to realize the vision of a financial system that is "stable, sound and market -based 
and that would support sufficient resource mobilization necessary for economic diversification and 
sustainable growth".  
 
Key pri orities under the FSDP include:  
 
1) Harmonization of wider financial sector legislation.  
 
As part of the law review exercise,  consultations have been held with stakeholders to solicit 
comments on financial sector laws that are currently being reviewed. The laws which were 
subjected to review include the following:  
 
 the Securities (Amendment) Bill;  
 Insurance Bill;  
 Pensions Sche me Regulation Bill;  
 the Banking and Financial Services Bill;  
 Leasing Law;  
 Building Societies Act;  
 National Payment Systems Act;  
 Bills of Exchange Act;  
 Cheques Act; and  
 Personal Property Security Interest Bill  
 
2) Financial Education Awareness Programmes  
Following the launch of the National Strategy on Financial Education in July 2012, the FSDP has 
spearheaded various financial education awareness campaigns aimed at empowering Zambians 
with the knowledge, understanding, skills, motivation and confidence that w ill help them secure 
positive financial outcomes for themselves and their families, especially those that are 
disadvantaged by less education and/or poverty. Notable local and international financial education 
efforts under the FSDP include the annual "Fin ancial Literacy Week" which gives financial education 
talks to youths and school children at various forums.  
 WT/TPR/M/340/Add.1  
 
- 4 - 
 
  3) Gender Mainstreaming in the Financial Sector  
In recognition of the important role played by women in national development, gender 
mainstreaming ha s adopted as one of the key focus areas under the FSDP. The main initiatives so 
far include:  
 
 Making the FSDP budget "gender -responsive by including a budget line for gender 
mainstreaming;  
 Conducting a research on women 's access to financial services;  
Implementing the Female and Male operated Enterprises (FAMOS) check tool. This tool is intended 
to enable financial service providers undertake a systematic assessment of the extent to which 
they target women entrepreneurs, their needs and potentialities. The FAMOS check tool also 
assists financial service providers to develop appropriate strategies to extend their outreach to 
women entrepreneurs as well as develop products to meet the needs of women entrepreneurs.  
 
4) Risk Based Know Your Customer (KYC) Guideline s 
The Central Bank issued a Practice Note on Anti -Money Laundering Customer Due Diligence. This 
followed discussions by various stakeholders about the need to create an environment that is more 
permissive (or relaxed) for enhancing financial inclusion, wit h among others Government 
expressing concerns over rural communities being unable to access banking services and products 
due to stringent KYC requirements. The Practice Note is intended to guide financial institutions to 
exercise flexibility on KYC requir ements for opening and maintaining bank accounts and accessing 
other forms of financial services.  
 
5) Establishing a Financial Identification System  
Following the proposal by the Government to enhance the National Registration Card (NRC), the 
Central Bank, t hrough the FSDP embarked on an extensive consultative process aimed at 
improving financial identifi cation in the financial sector.  
 
After consultations with the Ministry of Home Affairs, in 2013 and 2014, it was agreed that the 
FSDP stakeholders come up wi th possible features to be embedded on the proposed NRC as a way 
to accelerate financial inclusion. Notable among the key features identified, include the following:  
 
 Identification function: the card could act as a basis for personal identification but fu rther 
include address verification as a necessary feature for the assessment of Know Your Customer 
(KYC) requirements by financial institutions;  
 ATM card functions: it was proposed that that the NRC include functionality for use at the ATM 
for money withdr awals, maing deposits or money transfers or such related ATM services; and  
 Payment and e -cash functions: this proposal would enable the NRC to be used as a substitute 
for cash. The card owner can deposit funds on the card and pay with the card at acceptin g 
points of services.  
Responses to Question 4  
 
Information on road rehabilitation, maintenance and construction can publicly be found on the 
Road Development Agency corporate website which is www. rda.org.zm. The website contains 
information on on -going pr ojects including the Link 8,000 project, other planned road projects, 
Tenders, Reports, Programmes Acts and other vital Publications.  
Information on other investment opportunities in infrastructure can be found on the Zambia 
Development Agency 's website a t: www.zda.org.zm . 
 
Responses to Question 5  
 
The Intellectual Property Policy is a comprehensive document whose coverage include industrial 
property protection as well as copyright and related rights.  
With regard to copyright, the Policy seeks to provide a  platform for recognition of the specific 
rights of performers and producers. The proposed strategic action points are as listed below:  
 
 WT/TPR/M/340/Add.1  
 
- 5 - 
 
  Economic rights  
 
 Create awareness and outreach programmes on the rights of performers and 
producers;  
 Lobby for enforce ment of rights through strengthening appropriate legislation;  
 Promote teaching of the value of culture in primary and secondary schools;  
 Update the content of curricula in primary and secondary schools so as to promote the 
teaching of cultural subjects;  
 Provide for protection of copyright and related rights in view of the developments in 
ICTs, digital and Internet.  
 Make provision for principles of resale, rights of creators of works and the extension of 
rights in Zambia.  
 Encourage funding of creative proje cts and creativity by individuals and industry.  
 Strengthen the collective management of organizations for the benefit of the copyright 
owners.  
 
Rights of Broadcasters  
 
 Provide for legislation to protect broadcaster 's rights through accession to the Rome 
Convention;  
 Create awareness amongst broadcasting stations on the need to protect rights of 
broadcasters ' signals.  
 
Database Rights  
 
 Provide for database protection under the existing Copyright law.  
 Create awareness on databases and associated rights of dat abase owners and the 
value of protection  
Moral Rights  
 
 Sensitize right holders on their moral rights to their works and to provide for 
protection of moral rights for an indefinite term of protection.  
Responses to Question 6  
 
It remains the Republic of Zamb ia's policy objective to maintain a liberal import and export regime 
that supports industrial development.  
 
It is the understanding of Government that both regional and multilateral trade rules contain 
provisions that allows respective governments to insti tute legiti mate measures to deal with 
anti-competitive tendencies, address national food security concerns and any threats to human 
health, plant life and the environment.  
 
Where it has been found necessary, the government has invoked such measures to deal  with 
legitimate concerns. In particular, exports and import bans have been instituted to deal with 
national food security and protection of human and plant life respectively.  
 
With regard to increasing capacity for industrial sector development, several m easures have been 
undertaken including the review of Zambia 's industrial policy, the establishment of multi -facility 
economic zones and industrial parks and the establishment of the Industrial Development 
Corporation to promote investment where private sec tor does not find it attractive to invest in.  
 
Question 7  
 
Negotiations on Economic Partnership Agreement with the European Union are taking place under 
seven configurations of ACP member States and each of these configurations is at different stages. 
Zamb ia is among the eastern and Southern African Countries negotiating with the EU under the 
Eastern and Southern Africa (ESA) configuration.  
In 2007, ESA concluded an Interim EPA with the EU to ensure that no ESA country lost out in term 
of market access, wit h a provision to continue negotiations on other outstanding issues and 
establish a comprehensive agreement that is not purely market access.  WT/TPR/M/340/Add.1  
 
- 6 - 
 
  Negotiations on the comprehensive EPA have stalled, while four out of the eleven ESA participating 
countries have gone ahead to sign and implement the Interim EPA.  
 
The ESA EPA will be notified to the WTO once the negotiations are concluded and the agreement is 
signed.  
 
The effects of the EPA on Zambia can only be determined once Zambia begins to implement. 
Currently , Zambia is not implementing any part of this Agreement.  
 
The ESA Interim EPA is a purely market access Agreement and as it stands, does not contain 
provisions on Geographical indications. The contents of the comprehensive EPA are still a subject 
of negoti ations and as things stand, these negotiations have stalled.  
 
Question 8  
 
Zambia signed a memorandum of Understanding under the Trade Africa Partnership initiative 
whose objective is to among others assist Zambia to address capacity issues that have constr ained 
Zambia Trade with the US.  
 
The Ministry has also drafted a Framework document with a view to developing a strategy on how 
trade can be enhanced. The key elements of the Strategy as stated in the Framework would, 
among other things, include the identi fication of priority sectors and establishment of an 
implementation institutional framework to fully realize the benefits envisaged under AGOA.  
 
Work is underway to identify key products that could be traded between Zambia and the U .S.  
 
The six month AGOA  Strategy Development Initiative headed by the Honorary Consul of Zambia in 
California and a team from the University of California in Los Angels (UCLA) Anderson School of 
Management is complete and the final report was sent to the Zambia Development Agenc y. The 
goal of the initiative was to develop a practical and sustainable strategy for Zambian businesses to 
access the American market through the Africa Growth Opportunity Act.  
 
Further, Zambia is encouraging SME entrepreneurs to work with the African Wom en's 
Entrepreneurship Program (AWEP) which is already familiar with AGOA to access to U .S. market.  
 
A chamber of commerce, has been establish to promote business linkages . 
 
Question 9  
 
The objects of the Protection of Traditional Knowledge, Genetic Resourc es and Expressions of 
Folklore Act include the promotion of the preservation of folklore, fair and equitable distribution of 
the benefits derived from the exploitation of expressions of folklore as well as promotion of the use 
of traditional knowledge and expressions of folklore for the benefit of traditional communities. 
Additionally, the law is was enacted to ensure that exploitation of expressions of folklore takes 
place with the prior consent of traditional communities or individuals.  
 
The interaction o f the Protection of Traditional Knowledge, Genetic Resources and Expressions of 
Folklore Act with the Copyright and Performance Rights Act will be twofold. Firstly, the interaction 
will relate to the expressions of folklore on the one hand and the performa nce or neighbouring 
rights that are a corollary of folklore expression.  
 
In the event that expressions of folklore are recorded or expressed, there are invariably copyright 
issues that will flow. The ownership of that copyright and the rights of anyone who  performs will 
lead to interaction between the two pieces of legislation. Additionally, management of rights could 
also cause interaction as users of expression of folklore and even owners might assign the 
management of their rights to Collective Managemen t Organisations in either audio visual works or 
indeed reprographics.  
 
Question 10  
 
Fuel plays a critical role in almost all the sectors of the Zambian economy. Zambia imports 100% 
of its fuel needs. As a developing landlocked country, the fuel pricing can  be affected by both WT/TPR/M/340/Add.1  
 
- 7 - 
 
  external and internal factors including exchange rates. Government therefore, finds it necessary to 
maintain a stable price of this commodity to avoid negative effects that may arise from sharp 
fluctuations.  
Agriculture is the main sta y of the Zambian economy. It employs over 70% of the rural population. 
In the support to agriculture, maize is prioritised because of Maize is the staple food for Zambia, 
which is consumed by the majority of Zambians. In addition maize is used in the produ ction of 
animal feed for the livestock sector. It is also used in the production of beverages. However, the 
government is currently working on a diversification programme to encourage the production and 
consumption of other crops.  
 
Question 11  
 
Zambia is f ully aware of the benefits of WTO Notification and has been a recipient of training from 
the WTO Secretariat. While the situation, at the time of the mission  revealed that Zambia had 
21 outstanding obligations, this was noted and a number of notifications have since been 
submitted to the Secretariat. Going forward, Zambia will ensure that notifications are submitted in 
time. However, it should be noted that Zambia experiences challenges to fulfil her obligations due 
to high turnover of trained staff.  
 
Follo w-up on question 11  
 
The notifications were based on the reminder notice from WTO Secretariat. It is the intention of 
government to work on all outstanding notifications.  
 
Question 12  
 
Trade related Technical assistance needs for Zambia are multiple across  a number of areas 
including those highlighted in the Secretariat Report. They range from institutional capacity 
building to awareness creation.  
 
Specific initiatives that could be considered include the following:  
 
 Short term training and/or attachments f or officers;  
 Workshops and seminars and other forms of sensitization  
 Negotiating skills sessions  
 Internships /long term attachment/secondment of experts to institutions in respective 
fields;  
 Technical support for drafting guidelines/ regulations etc.  
 Suppo rt to participate in sessions of respective committees  
 Sharing of be st practice and experience.  
Question 13  
 
Among measures undertake to better utilize AGOA include the following:  
 
 Zambia signed a memorandum of Understanding under the Trade Africa Partners hip 
initiative whose objective is to among others assist Zambia to address capacity issues 
that have constrained Zambia Trade with the U .S. 
 The Ministry has also drafted a Framework document with a view to developing a 
strategy on how trade can be enhanced . The key elements of the Strategy as stated in 
the Framework would, among other things, include the identification of priority sectors 
and establishment of an implementation institutional framework to fully realize the 
benefits envisaged under AGOA.  
 Work is underway to identify key products that could be traded between Zambia and 
the U .S.  
 The six month AGOA Strategy Development Initiative headed by the Honorary Consul 
of Zambia in California and a team from the University of California in Los Angeles 
(UCLA) Anderson School of Management is complete and the final report was sent to 
the Zambia Development Agency. The goal of the initiative was to develop a practical 
and sustainable strategy for Zambian businesses to access the American market 
through the Afr ica Growth Opportunity Act.  WT/TPR/M/340/Add.1  
 
- 8 - 
 
   Further, Zambia is encouraging SME entrepreneurs to work with the African Women's 
Entrepreneurship Program (AWEP) which is already familiar with AGOA to access to 
U.S. market.  
 A chamber of commerce, has been establish to promote  business linkages . 
Question 14  
 
The Zambian Customs administration applies risk management in the selectivity module on the 
Asycuda. Entries are selected to the various channels based on a set criteria depending on the risk 
levels attached to a product, t he importer, country of origin or the declarant etc.  
 
Risk management and risk profiling is not publicly available as having the selectivity parameters 
availed to the public defeats the essence. Suffice to mention also that to promote voluntary 
compliance,  regulatory requirements are available to the public through various publications and 
platforms including legislative framework on the website . 
 
Question 15  
 
Changes to fiscal policy including revision of tariff is done through a consultative process and 
submission for revision of tariffs may be made by individuals, private companies etc. Much as the 
process is consultative, the outcomes of this process are applicable to all once the proposals are 
finally enacted.  
 
Question 16  
 
The questions by the USA to t he Provisional Safeguard notification have been responded and are 
highlighted below:  
 
Question 1  
Section 1 of the notification notes the imposition of provisional safeguards. However, the form of 
the provisional measure is not contained in the notification . Please identify the type of measure 
that is being applied and, if a tariff increase, the amount of the tariff increase.  
 
Answer 1  
In line with Article 6 of the WTO Agreement on Safeguards, which specifies that ' Such measures 
(Provisional Safeguard Measur es) 'should take the form of tariff increase', the type of measures 
applied in this case is tariff increase.  
 
 
Question 2  
Also, with respect to the imposition of provisional measures, Article 6 of the WTO Agreement on 
Safeguards (Safeguards Agreement) pro vides that a Member taking a provisional safeguard 
measure may do so only "[i]n critical circumstances where delay would cause damage which it 
would be difficult to repair. pursuant to a preliminary determination that there is clear evidence 
that increased  imports have caused or are threatening to cause serious injury." In its notification, 
Zambia does not indicate whether it made such a preliminary determination. Please indicate 
whether Zambia made such a determination, and if so the basis for such a deter mination.  
 
Answer 2  
This is to confirm that the provisional safeguard measures were imposed, following a preliminary 
determination of the products in question based on an assessment of the quantities imported into 
Zambia, absolute or relative to domestic p roduction; and a determination as to whether under 
such conditions, the products in question caused or threatened to cause serious injury to domestic 
industry that produce like or directly competing products. It was necessary to institute the 
provisional m easures due to the critical circumstances prevailing at the time. If no immediate 
action had been taken, that would have caused damage which would have been difficult to repair.  
 
 
Question 3  
In the notification, Zambia did not address a number of the facto rs listed in Article 4.2(a) of 
Safeguards Agreement, including: the rate and amount of the increase in imports, changes in the 
level of sales, production, productivity, and employment, or provide quantitative information on WT/TPR/M/340/Add.1  
 
- 9 - 
 
  any of these factors. Please exp lain why this information was not included. Also, Zambia did not 
provide evidence regarding the existence of a causal link between increased imports and serious 
injury or threat thereof in its notification. Please explain why such evidence was omitted. Whe n will 
Zambia be providing updated information to reflect these obligations in the Safeguards Agreement 
and in the Committee's notification format?  
 
Answer 3  
Zambia was guided by Article 6 of the Safeguard Agreement which states that "… the subsequent 
investigation  referred to in paragraph  2 of Article  4 does not determine that increased imports 
have caused or threatened to cause serious injury to a domestic industry…."  
 
According to this Article, steps in Article 4.2 are expected to be done during the full  investigation 
to determine the increase in imports and the causal link between increased imports and serious 
injury or threat thereof. It was therefore not an omission.  
 
The outcome of the full investigation will be communicated once the report is finali sed.  
 
 
Question 4  
For the factors that Zambia states that it did consider (increasing trend in imports, capacity 
utilization, industry share of consumption and demand, and profitability), please indicate the data 
and time period considered in concluding t hat the requirements in Article 6 for taking a provisional 
measure were met.  
 
Answer 4  
Although Article 6 of the Safeguard Agreement does not state requirements for undertaking a 
preliminary determination, which is a basis for instituting a provisional saf eguard measure, the 
reference period used is 2011 to 2013. As stated in Article, requirements for taking a provisional 
measures are:  
 
 critical circumstances where delay would cause damage  
 The duration of the provisional measure shall not exceed 200  days, d uring which period 
the pertinent requirements of Articles  2 through 7 and 12 shall be met  
Zambia, upon instituting the provisional measure (to last 180 days), made a notification to the 
Committee on Safeguards under Article 12.1 (a) and 12(4) and initiated  consultations 
immediately. The Safeguard measures Committee of Zambia will, in accordance with Article 3 (1), 
publish a report setting forth their findings and reasoned conclusions reached on all pertinent 
issues of fact and law. The reference period used  is 2011, 2012 and 2013.  
 
 
Question 5  
Section 2 of the notification states that the "investigations" were initiated on 10 July 2015, which 
seems to indicate that there is more than one active investigation. First, please clarify how many 
investigations th e notification covers. If there are two (or more) active investigations, please 
clarify the products included, and scope of, each investigation.  
 
Second, the investigation(s) were initiated in July, but the notification was not submitted until 
October 2015 . Article 12.1 of the Safeguards Agreement provides that a Member "shall 
immediately notify" the Committee when it initiates an investigation. As has been pointed out by 
Members during past Committee meetings, notifications are oftentimes the only way that  Members 
and interested parties know of the existence of an investigation, so delayed notifications may 
affect the ability of exporters and other interested parties to prepare and present evidence and 
views. Please explain why it took Zambia nearly three m onths to notify both the initiation of its 
investigation and its decision to apply a provisional safeguard measure.  
 
Answer 5  
Kindly note that there is only one investigation being undertaken covering goods as indicated in 
the notification to the WTO.  
 
 WT/TPR/M/340/Add.1  
 
- 10 - 
 
  Question 6  
Article 12.4 of the Safeguards Agreement states that "[a] Member shall make a notification to the 
Committee on safeguards before  taking a provisional safeguard measure referred to in Article 6" 
(emphasis added) and that "consultations shall be in itiated immediately after the measure is 
taken." Please explain how Zambia's application of provisional measures (starting in July 2015) 
and the notification (made in October 2015) is consistent with this obligation. Also, please identify 
the period when c onsultations will take place, as provided for under Article 12.4 of the Safeguards 
Agreement.  
 
Answer 6  
Zambia delayed in notifying the member because it was undertaking safeguards measures for the 
first time, hence lacked the capacity to deliver on time.  With regards to the consultations, the 
notification submitted to the WTO Secretariat, indicates the period of investigations and 
consultations.  
 
 
Question 7  
Section 3 of the notification states that the period of investigation is 10 July 2015 to 
10 Janua ry 2016. In other words, the beginning of the period of investigation coincides with the 
date of initiation. Normally, when an investigating authority conducts a safeguard investigation, it 
looks at past behaviour to determine whether a product is being im ported into its territory in such 
increased quantities so as to cause serious injury to its domestic industry. Please explain why 
Zambia has departed from this norm.  
 
Answer 7  
There is no departure from the norm, as 10 July 2015 to 10 January 2016 is the period for the 
provisional safeguard (180 days) to facilitate investigations. The investigation was based on past 
data to determine whether the products in question were imported into Zambia in such increased 
quantities so as to cause serious injury to its  domestic industry  
 
 
Question 8  
The Committee's document regarding the format for notifications states that "Members are 
encouraged to attach, in an electronic form, publicly available document(s) containing the relevant 
decision(s) made by the competent authority. This document may be in the original language of 
the Member, even when the language is not one of the official languages of the WTO. The 
document will neither be translated nor circulated to the Committee, but will be made available by 
the Secre tariat to Members requesting it." In its notification, Zambia indicates that a decision has 
been made by the investigating authority to impose a provisional safeguard measure. When will 
Zambia submit the relevant decision discussing the reasoning behind it s determination to the 
Secretariat?  
 
Answer 8  
Zambia was guided by Article 12(a) of the Agreement on Safeguard with regard to the provisional 
measure applied. Information regarding investigations and the findings will be submitted once the 
reports are fin alised.  
 
Follow -up on question 16  
 
We take note of the comment by the US on question 16.  
 
Question 17  
 
The Government of Zambia has not yet considered becoming an observer to the Agreement on 
Government Procurement. There is no timetable for becoming an o bserver at the moment.  
 
However, public procurement in Zambia is founded on principles which are consistent with the 
Agreement of Government procurement as follows:  
 
(a) Transparency;  
(b) Competition;  
(c) Economy;  WT/TPR/M/340/Add.1  
 
- 11 - 
 
  (d) Efficiency;  
(e) Fairness;  
(f) Value for money; and  
(g) Accountabi lity. 
Question 18  
Planned Projects  
 
 Agri-Business – Government is seeking private partners in developing the Luena and 
Nansanga farm blocs  
 
 Transport Sector  
o Ndola – Chilibombwe Road: Negotiations are under way  
o Lusaka – Ndola Road: Under evaluation  
o Chingo la – Solwezi – Mutanda: Under evaluation  
o Kasonomwenda Road: Under discussion  
o North -Western Rail: Under discussion  
o Serenje – Pentauke – Chipata Rail (Muchinji -Tanzara): Under preparation  
 
 Financial Sector  
o Zambia National Commercial Bank  
o Indo Zambia Bank  
Question 19  
The bill was presented to the Zambian parliament and assented to by the President of the Republic 
of Zambia. Before its presentation, it was subjected to consultations which included various 
stakeholder workshops. Although the bill was published on the Zambian parliament website, the 
publication was not for public review or comments. Comments were received from different 
interest groups before the bill was published by Parliament on its website.  
 
The enactment of this law has given effect to the African Regional Intellectual Property 
Organisation (ARlPO) Swakopmund Protocol on the Protection of Traditional Knowledge and 
Expressions of Folklore. Therefore, the assenting to the bill by His Excellency the President 
effectively mean that the provision s of the Swakopmund Protocol have been provided for in 
domestic legislation in Zambia.  
 
Question 20  
 Implications of not having a hologram affixed to an audio -visual product in the 
Zambian market.  
 
The hologram is a distinguishing mark between originals an d pirated copies. Any audio -visual 
product placed on the Zambia market without a hologram is considered as not authorised and as 
such is regarded as a pirated copy.  
 
 Is the hologram required in order for the right holder to exercise any of his rights 
granted under copyright law . 
 
The Hologram is just for distinguishing between pirated and original works and does not prevent 
the right holder to exercise their rights granted under the copyright law.  
 
Question 21  
After the amendment to the Copyright and Perfo rmance Rights Act in 2010, the Minister of 
Information and Broadcasting Services issued Statutory Instrument Number 100 of 2013, 
operationalising the Copyright and Performance Rights Amendment Act number 25 of 2010.  
 
The purpose of the 2010 amendment, oper ationalised by Statutory Instrument Number 100 of 
2013, was to include the Subordinate Courts to the courts that are competent to handle copyright 
infringement cases. The Act also removed the requirement for an arresting officer to be a Police 
Officer of t he rank of Inspector or above. Additionally, the Attorney General was made copyright WT/TPR/M/340/Add.1  
 
- 12 - 
 
  holder ad litem for the purposes of the prosecution of an offence under the Copyright and 
Performance Rights Act.  
 
Following the passing of SI 100 of 2013, there has been an increase in a number of cases taken to 
the lower courts and a number of convictions have been recorded.  
However, given that IP rights are private rights, it is only instances that the copyright officers 
attend court as witness that they know of whether there is an infringement case that has been 
taken to court. With that said, it is challenging to give a definitive number of cases that have been 
taken to court.  
 
Question 22  
The bill as well as the Act both permit the enforcement of IPRs through civil and  criminal 
proceedings. Therefore in both the bill and the Act, IPR owners can bring actions under the tort of 
passing off. The Trademarks Bill has provided for the right to institute an action for infringement 
by the owner of an unregistered mark which has  acquired the status of being a well -known mark. 
This is not the case in the current Trademarks Act as protection is only for registered trademarks 
and therefore unregistered trademarks owners do not have the right to institute infringement 
proceedings.  
 
The bill has elaborate provisions that relate to infringement. The bill has provided for detailed 
provisions on infringement where identical or similar marks are used in the course of trade, 
exceptions to infringement, exceptions in relation to advertising  and infringement by breach of 
certain restrictions. The Bill has further provided for non -infringing acts, exhaustion of rights and a 
right by a registered user to commence infringement proceedings. Additionally, a sub licensee will 
have the right to requ est a registered user to commence infringement proceedings. There is also 
provision against threats of infringement proceedings by aggrieved persons.  
 
The bill has also provided for remedies which include an injunction, damages, accounts of profits, 
delivery up, order for disposal, order for erasure and any other remedy the courts may deem fit.  
 
The bill differs greatly from the Act as it has provided a more elaborate procedure for infringement 
proceedings as well as provided for what is not in the Act su ch as exhaustion of rights, rights of 
sub licensees and clear remedies.  
 
Question 23  
The Government is promoting both local and foreign investors including multinational companies to 
invest in the agriculture sector. There are a number of MNCs operating i n Zambia, especially in the 
seed sector. The land tenure system that applies in the agriculture sector is long lease up to 99 
years.  
Question 24  
 Which department regulates food labelling both domestically and for imports  
 
The overall responsibility for foo d regulations lies with the Ministry of Health while the Ministry of 
Commerce, Trade and Industry through the Zambia Bureau of Standards deals with labelling 
requirements which enshrined in technical regulations (or compulsory standards).  WT/TPR/M/340/Add.1  
 
- 13 - 
 
  SECTION I: RESPO NSES TO QUESTIONS BY  THE EUROPEAN UNION  
Question 1:  
 
COMESA has adopted the following Common External Tariff which is yet to be implemented while 
SADC has not yet defined its CET rates:  
 
 0% for raw materials;  
 0% for capital goods;  
 10% for intermediate pr oducts;  
 25% for finished products.  
 
Most Agriculture products (approximately 97%) are bound at 45-125% while  for those 
non-agricultural tariff lines  that are bound, bound rates range from 30 -125%. Certainly  any tariff 
bound at lower levels will make it dif ficult for Zambia to apply the CET as agreed under COMESA.  
 
Question 2:  
 
Zambia has recorded a reduction in exports that attract export duty in last three years. This may 
be attributed to the enhanced capacity in local processing such copper smelter on the  copperbelt 
and north -western provinces of Zambia, increased cooking oil manufacturing plants in Lusaka etc 
that is encouraging value addition . 
 
Question 3, 4 and 5  
 
Zambia is fully aware of the benefits of WTO Notification and has been a recipient of trai ning from 
the WTO Secretariat. While the situation, at the time of the miss ion revealed that Zambia had 
21 outstanding obligations, this was noted and a number of notifications have been submitted to 
the Secretariat. Going forward, Zambia will ensure that notifications are submitted in time.  
 
Question 6  
 
Impact and outcomes of PSDRP I and II.  
 
Private Sector Development Reform Programme was adopted as part of government strategy to 
promote economic growth through job and wealth creation. Emphasis was placed  on building 
private sector capacity to create wealth by streamlining and consolidating service delivery of 
support institutions.  
 
 Phase I of PSDRP run from 2006 to 2009  
 Phase II run from 2010 to 2014  
The following were the main areas of reform:  
 
REFORM AR EA  SPECIFIC OBJECTIVE  
Policy environment & institutions  Create an enabling macroeconomic environment, 
strengthen the public agencies that support PSD and 
enhance public/private dialogue  
Laws & regulations  Improve regulatory frameworks and revise  
investm ent code to foster PSD  
Infrastructure  Enhance infrastructural platform for PSD by 
encouraging privat e investment in infrastructure  
Business facilitation & economic diversification  
 Remove administrative barriers to business entry and 
operation and fac ilitate deve lopment of high growth 
sectors  
Trade expansion  Create opportunities to access regional and 
international markets by Zambian businesses  
Citizens empowerment  Unlock the growth potential of the MSME sector 
through business development support a nd local 
empowerment initiatives  
 
Among achievements made under each phase include the following:  
 WT/TPR/M/340/Add.1  
 
- 14 - 
 
  PSDRP I 2006 to 2009  
 
 2 institutions created (ZDA & CEEC)  
 4 policies approved (ICT, Energy, PPP, MSME)  
 8 Acts passed by parliament (Zambia Tourist Board, Tourism and Hospitality Act. Small 
Claims Court, Labour and Industrial Relations Act, PPP Bill, ICT Bill, Postal Bill, ECT Bill)  
 2 Departments created (Department of Communication & Private Public Partnership (PPP) 
Unit)  
 Credit Guarantee Scheme for MSEs established  
 Ease of Doing Business ranking for Zambia improved to 90 • Business Licensing Inventory 
baseline completed (517)  
PSDRP II  
 
 Online name search system for business names search developed.  
 Registering a business reduced from 30 days to one day.  
 An informational e - business license database (ERegistry) has been established  
 ZRA consolidation the entire domestic taxes into one department to increase efficiency.  
 It takes three days to complete property tax process and three days for tax registration  
 ZRA has introduced a pre -clearance system which enables goods to be cleared before arrival 
at the port of entry.  
 Customs clearance takes three days for import and Customs clearance takes one day for 
export.  
 One stop Border post at Chirundu has been esta blished  
 92 licenses have been eliminated  
 One stop shop for business registration set up  
 Customs E -payment in place This allows taxpayers to pay their taxes online for customs 
taxes.  
 Single business levy has been implemented across all local authorities . 
Question 7  
 
The result of the World Bank Group indicated a fall in efficiencies in trading across the borders and 
in the year 2015, this could be mainly attributed to the system stabilisation challenges experienced 
at the time, following the introduction o f the Central Processing Centres (CPCs). The CPCs are 
meant to:  
 
 Standardise operation procedures at all borders;  
 Operate for extended hours even when some borders have clo sed thus providing a virtual 
24 hours Customs office;  
 Mitigate opportunities for cor ruption as this eliminates physical contact between brokers and 
Customs officials assessing the taxes.  
 
There are about sixteen (16) Government Agencies and a total of thirty one (31) Business 
Processes that have been identified for streamlining under the Single Window. Zambia is taking 
initiatives that will improve on processing efficiencies at the borders and one such initiative is the 
Single window a facility that will allow government agencies that have a role in facilitating trade 
across the borders to  work from a single platform. Coupled with the coordinated border 
management concept, trade is envisaged to flow in a much better and faster way. The other trade 
facilitation reforms in place include:  
 
 Pre-Clearance;  
 E-payment of taxes, with 12 out 19 regi stered banks in Zambia offering the service;  
 Advance Ruling on classification;  
 Authorised Economic Operator (AEO) with thirty three (33) taxpayers (subjected to blue 
lane);  
 One Stop Border Post at Chirundu and plans to roll -out at Nakonde/Tunduma in 2016;  
 Increased border operations hours at key borders namely: Nakonde (24hrs) and Chirundu 
(22 hrs)  
 
 WT/TPR/M/340/Add.1  
 
- 15 - 
 
  Question 8:   
 
The implementation of Asycuda World, coupled with additional initiatives such as the setting up of 
centralised processing centres that have effec tively extended the processing time available for 
Customs declarations processing has contributed to the reduction in dwell time of trade at border 
crossings.  
 
It may be worth noting that the gains are setting in gradually having had a record of reduced 
declaration processing efficiencies. The reduction is attributable to settling in issues (The learning 
curve).  
 
It is worth noting that Asycuda World being a web based system, relies on good connectivity in 
order to attain optimum results. Some of the prelim inary challenges experienced include:  
 
a) connectivity:  The ZRA has ensured that all its Stations are connected to high capacity optic 
fiber wherever a service provider has availed the facility. Furthermore, the VSAT used in 
Asycuda++ has been retained as bac kup. However, some stakeholders do not have the 
requisite ICT facilities to complement their operations. Zambia has put up Direct Trader 
Input (DTI) Bureaus, which are similar to Internet Cafes at all borders to cater for such 
clients at no cost;  
b) Power:  Power instability affects stability of the system and to this effect, the ZRA has put in 
place contingent measures including UPS and generators at the borders;  
c) System stabilisation: Like any new system, there is a transitional phase of stabilisation 
especial ly in our context where there are a number of transformational initiatives aimed at 
customising the system towards a fully paperless customs operations.  
d) Low Skill levels: The skill levels for some of the stakeholders, especially Customs brokers 
are low an d it takes time to transition t o modern way of doing business.  
 
Question 9  
 
The Objectives of the Coordinated Border Management Bill are: 
 
 To provide for coordinated border management to ensure effective and efficient trade 
facilitation;  
 To provide for th e designation of a Lead Agency at ports of entry ;  
 To provide for the development, management and maintenance of border infrastructure;  
 To provide for agreements by the Republic of Zambia with neighbouring states on the 
implementation of one -stop border pr ocessing agreements;  
 To give effect to provisions of agreements on one -stop border posts;  
 To provide for simplified trading arrangements with adjoining states;  
 To authorise the application of the Laws of Zambia and the Laws of the adjoining state in the 
one-stop border post;  
 To repeal and replace the One Stop Border Control Act no. 8 of 2009;  
  To provide for matters connected with or incidental to the foregoing.  
 
The functions of the Lead Agency are to:  
 
 Interface with importers, exporters and private op erators at ports of entry in relation to 
goods; (b) Communicate requirements exporters and importers to facilitate compliance with 
the Law;  
 Coordinate and Liaise with and on behalf of other border agencies on matters related to 
border operations and trade  facilitation;  
 Receive and account for payments on behalf of other border agencies;  
 Enforce deadlines for declaration processing;  
 Coordinate the execution of the crisis response strategy at the port of entry;  
 Determine, where applicable, the terms under wh ich service providers, wishing to operate 
within the customs controlled area, will operate;  
 Coordinate the development, management and maintenance of shared border infrastructure 
except in the case of railway, air and water ports;  
 Implementation of one -stop border agreements concluded in terms of section 10; and  
 Undertake any other functions as may be assigned by the Minister.  WT/TPR/M/340/Add.1  
 
- 16 - 
 
  Question 10:   
 
The Bill will effectively allow for a coordinated approach to border management, implying that 
other government agenc ies at the border can conduct joint inspections, have one payment point 
for all border crossing related fees. Further gains will be registered with the implementation of the 
single window, when all border agencies will access customs declarations and will be able to do 
their respective intervention simultaneously thereby reducing the processing time of declarations.  
 
Question 11:   
 
The law governing the ZPPA was repealed in 2008. ZPPA is a body corporate with perpetual 
succession and a common seal, capable of suing and of being sued in its corporate name, and with 
power, subject to the provisions of the Public Procurement Act, to do all such acts and things as a 
body corporate may, by law, do or perform.  
 
The ZPPA is an independent regulatory body with respo nsibility for policy, regulation, standard 
setting, compliance and performance monitoring, professional development and information 
management and dissemination in the field of public procurement.  
 
The functions of the ZPPA are to:  
 
(a) regulate the procureme nt of goods, works and services by procuring entities and 
ensure transparency and accountability in public procurement;  
(b) monitor compliance with the Public Procurement Act No.12 of 2008 of the laws of 
Zambia and the procurement performance of the procuring entities and make 
recommendations to the Minister of Finance on the performance and functioning of the 
public procurement system;  
(c) issue Standard Bidding Documents and other Standard Procurement Documents for 
use by procuring entities;  
(d) advise the government  and procuring entities on procurement policy and other 
matters relating to public procurement;  
(e) consider applications for deviations to public procurement processes, methods and 
rules and for the accreditation of alternative procurement system;  
(f) commission and undertake investigations in public procurement matters and institute 
procurement audits;  
(g) promote economy, efficiency and maximum competition to ensure value for money in 
the use of public funds;  
(h) promote private sector participation, through fair and no n – discriminatory treatment 
of bidders;  
(i) formulate preference and reservation schemes to promote the economic development 
of citizen bidders and suppliers in collaboration with the appropriate government 
institutions;  
(j) maintain a register of bidders and sup pliers who are suspended or debarred from 
participating in public procurement;  
(k) coordinate and promote capacity building and professional development in the public 
procurement system;  
(l) monitor the execution of contracts entered into by procuring entities;  
(m) organise and maintain systems for the management of procurement data, statistics 
and information and for the publication of data on public procurement opportunities, 
contract awards and other information of public interest; and  
(n) do all such other acts and thi ngs as are incidental to the foregoing or conducive to the 
attainment of the objectives of the Authority.  
 
The ZPPA has undergone restructuring to carry out its mandate. The organisation structure was 
changed and staff with the necessary qualifications and  experience recruited in order to support 
the new mandate.  
 
Question 12  
 
Zambia plans to have its e -procurement system operational to the pilot sites by July 2016 and full 
rollout by 2017.  
The system will offer the following features:  WT/TPR/M/340/Add.1  
 
- 17 - 
 
   e-Registration: The e -registration module will provide a single interface for registration of 
all bidders, Procuring Entities, committees, oversight agencies and all other stakeholders 
who intend to use the e -GP system. All bidders must be registered to participate in bidding 
opportunities.  
 e-Tendering : Online process that manages the tendering lifecycle from advertisement of 
the notice to issuing of an award of contract.  
 e-Notification: This is basically a public procurement information portal that facilitates the 
publication of contract notices, awards, procurement plans, tenders, etc. by Procuring 
Entities.  
 e-Evaluation/ Awarding: This module will automate the evaluation process. The system 
shall have a facility to recommend evaluation results as stated in the Public Procurem ent Act 
and Regulations. This module will also facilitate the Notification of Awards (NOA).  
 e-Contract Management: The e -Contracts module is a dynamic subsystem of e -GP that 
establishes, manages and monitors contracts, collates bid history, monitors perfo rmance 
against agreed service level agreements (SLAs) and key performance indicators (KPIs) and 
alerts buyers to key events, such as contract renewal dates, etc.  
 
The public will not be subjected to conditions to access the system.  The system will avail ce rtain 
information to the public.  
 
Question 13  
 
The Second schedule of the Statutory Instrument No.63 of 2011, Public Procurement Regulations, 
(PPR) indicates applicable thresholds f or various procurement methods.  
 
Open International Bidding procurement met hod is used in circumstances where the estimated 
value of goods and non – consulting services exceeds K5,000,000. However, in cases of 
procurement of works, Open International Bidding is applicable when the estimated value of works 
exceeds K50,000,000. For  Consulting services, Open International Selection is applicable for 
estimated values above K300,000.00.  
 
Question 14  
 
The Public Procurement Act provides the various procurement methods that a procuring entity can 
use. The circumstances for use of a part icular method are also outlined hence ensuring that the 
fundamental principles that govern public procurement are upheld.  
 
Question 15 : 
 
The commodities under consideration by SADC and COMESA are different with each commodity 
having its own list of pests. It is the intention of the Government to work towards harmonization at 
national level where necessary.  
 
Question 16:  
 
Zambia does not anticipate any negative impact by introducing a fee for the provision of health 
certificates on enterprises’ financial sit uation and competiveness as the proposed fee of about K50 
(USD 5) is minimal and manageable even for small and medium enterprises.  
 
Question 17  
 
Initiatives to explore new markets are part of Joint permanent commissions and visits undertaken 
at various lev els. Several initiatives are being implemented through the Zambia Development 
Agency and these trade missions, buyer/seller meetings, trade exhibitions/fairs.  
 
Enhancing capacity of local exporters has included policy reforms, service delivery enhancement,  
support towards product and quality improvement, sensitization on market requirements to, 
capacity building initiatives, including the development of q uality control manuals and 
self-assessment guides, and the promotion of Kaizen principles, among others.  
 
Through collaboration between ITC and the Zambia Development Agency, Zambia has been able to 
provide export development activities in the honey sector. This capacity building project is set to WT/TPR/M/340/Add.1  
 
- 18 - 
 
  market Zambia 's organic honey which has massive export potent ial in the world market. This has 
included value chain development and training on various aspects which have included HACCP, 
Packaging and Branding, Competitive intelligence,  Business Generation Methodology as well as 
market linkages both locally and with  potential importers. The programme has also included 
participation in export promotional activities such as the Apimonida Expo in South Korea and the 
Saudi Arabia Food Expo. It has as well established a network for the sector comprising of various 
stakeho lders.  
 
It is anticipated that similar programmes will be implemented in other potential sectors as well 
such as cassava, gemstones, leather and cotton which have been identified as potential products in 
the ZDA strategic plan.  
 
Question 18  
 
Zambia Develo pment Agency (ZDA) manages an Export Finance Facility called Zambia Export 
Development Fund (ZEDEF). These are basically low interest loans provided to exporting 
companies as well as those with the potential to export. These are mostly for the pu rpose of 
pre-shipment or post shipment requirements by exporters.  
 
The main objective of this Fund is to assist in the expansion of non -traditional exports through 
provision of low interest loans.  
 
The methodology of disbursement of these loans has been through Pro ducer Association (PA) 
lending model until recently when this was changed to individual companies that meet the lending 
criteria which is yet to be implemented by 3rd quarter of this year. To date, the Fund has worked 
with various PAs that represent the in terests of their members such as the following:  
 
1. The Leather Association of Zambia (LIAZ);  
2. The Organic Producers and Processors Association of Zambia (OPPAZ);  
3. The Lumber Millers Association of Zambia (LUMAZ);  
4. The Timber Producers Association of Zambia (TPA Z); 
5. The Association of Zambian Women in Mining (AZWIM);  
6. The Zambia Crocodile Farmers Association (ZCFA);  
7. The Agri -Business Forum (ABF);  
8. Zambia Export Growers Association (ZEGA);  
9. Agro Forestry Association of Southern Province (AFASP).  
10. Small Scale Industries  Association of Zambia (SSIAZ);  
11. Handcrafts Association of Zambia (HAZ);  
12. Zambia Coffee Growers Association - ZCGA  
 
To what extent are the loans below the market price -the current interest rates offered by most 
commercial banks in US$ range from 10% to 14%. Z EDEF at inception offered a very concessional 
rate of only LIBOR plus 1% which was usually around 3%. In order to make it more sustainable, 
ZEDEF increased the rate to effectively 8 -9% which is still quite competitive in comparison to the 
market rates. Thi s effective cost of borrowing comprises 6% interest rate and about 3% 
arrangement fee charged upfront.  
 
 
Question 19  
 
Zambia is already effective in handling VAT but if need for improvement is noted, improvements 
will be done accordingly. VAT refunds are d one in line with legal provisions.  
 
The set time limit for the tax administration to remit a VAT refund is 30 days from the time of 
lodgment of a VAT return. Claims that pass the credibility checks are paid within the set time while 
those that fail the tes t are a subject of an audit. The audit period would vary depending on the 
complexity of the case in question.  
 
As a rule of the thumb refunds are effected within the set time provided for by law and delays are 
only experienced in cases where the claims fai l credibility checks.  
 WT/TPR/M/340/Add.1  
 
- 19 - 
 
  In the case of zero rated supplies arising from exports, delays are experienced only in 
circumstances where the claimant fails to prove an export.  
 
 
Question 20 :  
 
Fiscal incentives are limited to investments of US$500,000 or more. H owever other non -fiscal 
incentives are available through the Zambia Development Agency.   
 
Zambia has extended fiscal incentives to investors who invest not less than US$500,000 in an 
MFEZ, an industrial area, a priority sector or a rural area. Incentives a vailable for investors in 
these sectors of the economy include duty free importations of machinery and equipment, but not 
spare parts, required for use by business enterprises in these sectors. Therefore, when these 
business enterprises import their machin ery and equipment, an import duty rate of zero percent 
applies within a specified period of five years.  
Question 21 : 
 
A. Zambia has one of the lowest Total Tax Rate in  the Southern Africa Development 
Community (SADC) region at 18.6% as at 2014.  
The low Total  Tax Rate is largely attributable to a more favourable tax treatment afforded to the 
manufacturing and agricultural sectors. For instance, unlike other industry sectors, entities 
operating in the manufacturing and agricultural sectors can claim capital all owances at a rate of 
50% on a straight line basis on the cost of plant or machinery purchased.   
 
Zambia is largely dependent on earnings from mining of copper and other minerals and is 
vulnerable to movements in commodity markets. To reduce dependency on c opper mining, the 
government is seeking to diversify the economy by developin g other sectors. The government' s 
key focus is to develop the agriculture manufacturing, tourism and construction together with any 
other industries that add value. Hence, in addi tion to accelerated relief for capital expenditure in 
these sectors, investment in manufacturing, agriculture and other value adding sectors can also 
benefit from tax concessions (including corporate tax, withholding tax and import duty 
exemptions) granted  by the Zambia Development Agency (ZDA), a body which promotes and 
facilitates trade and investment in Zambia. Taxpayers in these and other value adding sectors can 
further benefit from a reduced rate of corporate tax of 15% on nontraditional exports.  
 
B. Strengthening the business environment  is among Government' s key objectives. The 
Zambian Government embarked on the Private Sector Development Reform Programme (PSDRP I 
& II) beginning in 2004 and ending in 2014.  The PSDRP I & II reform objectives have been t o: 
Promote development of competitive business environment in Zambia in order to contribute to job 
and wealth creation; Improve competiveness of business environment through improved 
compliance by businesses; Institutionalize a clear and transparent regula tory regime for 
businesses and remove duplications and overlaps; and Facilitate and develop a legislative climate 
conducive to private sector investment.  
The major Local achievements of the Business Reform Agenda  include, among others: creation of 
a one s top investment facility namely the Zambia Development Agency (ZDA), approving of 
several policies in cluding ICT, Energy, PPP, MSME;  establishment of the Credit Reference Bureau; 
establishment of a Credit Guarantee Scheme for MSMEs at Development Bank of Za mbia; passing 
of Acts such as the Tourism and Hospitality Act, Labour and Industrial Relations Act and the 
Electronic Communication Transaction (ECT) Act; liberalization of the International Gateway; 
identification o f 170 Business Licences earmarked for el imination and rationalization; introduction 
of the E -payment scheme by Zambia Revenue Authority; establishment of One Stop Border Post at 
Chirundu; Establishment of a Pre -Clearance system by ZRA; and installation of Scanners for goods 
inspection at major b orders.  
 
Through the enactment of the Business Regulatory Act No.3 of 2014 - Government has continued 
to streamline licenses for business has created an institution called Business Regulatory Review 
Agency to ensure continued reforms of business licensing as an enabling factor for business 
registration.  WT/TPR/M/340/Add.1  
 
- 20 - 
 
  In addition, through Public Private Partnership Act of 2009 – Government is encouraging private 
sector to partner with Government in investing in special developmental areas where concessional 
terms of repay ments to the private sector is made favorable as a way of creating an enabling 
environment for the private sector to participant.  
 
Question 22 :  
 
With regard to infrastructure and high transport costs, the Government is working on road 
development and reha bilitation through the link Zambia 8000 and pave Zambia 2000 initiatives. 
Substantial progress has been made under these initiatives.  
 
Regarding other measures to reduce the cost of doing business, through the Private sector 
development Reform programme, t he following has been done:  
 
PSDRP I 2004 to 2009  
 
 2 institutions created (ZDA & CEEC)  
 4 policies approved (ICT, Energy, PPP, MSME)  
 8 Acts passed by parliament (Zambia Tourist Board, Tourism and Hospitality Act. Small 
Claims Court, Labour and Industrial Relations Act, PPP Bill, ICT Bill, Postal Bill, ECT Bill)  
 2 Departments created (Department of Communication & Private Public Partnership (PPP) 
Unit)  
 Credit Guarantee Scheme for MSEs established  
 Ease of Doing Business ranking for Zambia improved to 90 •  Business Licensing Inventory 
baseline completed (517)  
PSDRP II 2010 to 2014  
 
 Online name search system for business names search developed.  
 Registering a business reduced from 30 days to one day.  
 An informational e - business license database (E -Registry ) has been established  
 ZRA consolidation the entire domestic taxes into one department to increase efficiency.  
 It takes three days to complete property tax process and three days for tax registration  
 ZRA has introduced a pre -clearance system which enables goods to be cleared before arrival 
at the port of entry.  
 Customs clearance takes three days for import and Customs clearance takes one day for 
export.  
 One stop Border post at Chirundu has been established  
 92 licenses have been eliminated  
 One stop shop f or business registration set up  
 Customs E -payment in place: This allows taxpayers to pay their taxes online for customs 
taxes.  
 Single business levy has been implemented across all local authorities . 
 
Question 23  
 
Zambia appreciate tourism contribution fro m EU members States and would like to have more 
visitors from that region. With regard to Visa requirements from EU member 's states, our 
assessments indicates that visa/or and visa fees are not a constraining factor for visitors coming 
from that region. In  order to encourage more tourists from EU member states, Zambia has 
simplified the process of getting a visa by offering three (3) options; 1) From Zambian Embassies 
abroad, 2) Online Visa processing (eVisa), and 3) at the point of Entry(Visa on Arrival.  
 
In is important to note that there is an on –going review of the visa regime. As country, it is easier 
to review Visa regime on a case by case basis rather than as a block.  
 
Question 24   
 
Actions to promote diversification have included the following:  
 
 Promotion of value addition within the mineral sector and the promotion of production and 
export of gemstones and other minerals other than copper;  WT/TPR/M/340/Add.1  
 
- 21 - 
 
   Promotion of agro processing and investment in the agriculture sector through farming 
blocks;  
 Promotion of inv estment in production of manufactured goods by encouraging both local and 
foreign investors to invest in the Multi -facility economic zones;  
 Promotion of investment in real estate  
 Promotion of investment in the services sector including the tourism sector.  
 Promotion of the horticulture and floricultural sector as well as the honey sector for export 
development  
 The promotion of cluster development for purposes of adding value and addressing 
challenges along the value chains.  
 Consolidation of support services (such as standards and testing facilities) to enhance 
service delivery for better product and quality management.  
 
Question 25 : 
 
Much of Zambia 's trade with the EU, USA and most recently, China and India is on preferential 
terms. National statistics provid e aggregated data and the following are the trade figures for the 
period 2012 to 2016 in Zambian kwacha.  
 
Year CN (CHINA)  U.S. (USA)  IN (INDIA)  EU Total  
2012 8,993,835,335.18  36,425,053.36  341,502,725.94  2,431,883,772.24  11,803,646,886.72  
2013 9,966,556 ,853.32 68,791,230.10  673,029,958.37  2,216,986,764.15  12,925,364,805.93  
2014 8,622,239,548.21  483,776,208.53  183,234,009.64  1,589,555,191.39  10,878,804,957.76  
2015 8,488,370,587.78  19,362,458.82  240,691,899.32  1,956,371,620.11  10,704,796,566.04  
2016 6,374,308,094.22  6,150,309.50  525,280,995.54  1,312,783,679.70  8,218,523,078.96  
 
Question 26  
 
A number of measures have been put in place to cushion the impact of the power shortage in the 
short term, such as, importation of emergency power. Further, Governme nt will continue to 
encourage private sector investment in electricity generation and ensure that investors get a fair 
return on their investments, electricity tariffs will continue to be adjusted to make them cost 
reflective.  
 
Government has put in place the following measures to improve regulation, supervision and 
enforcement of statutory commitments in the sector, strengthen tracking of potential investors 
and improve the efficiency of the system of logging, dissemination of information on available plot s 
for mining and recording of commercial mining activities:  
 
a) The Mineral Resource Development Policy of 2013. This policy puts forth measures for the 
creation of a sustainable and orderly mining industry that contributes to the economic 
development of Zamb ia by: attracting local and foreign investment in the sector for the 
sustainable exploration and exploitation of mineral resources; integrating the mining sector in the 
domestic economy; and ensuring acceptable health, safety and environmental protection 
standards.  
b) The Mines and Minerals Development Act No. 11 of 2015 which repeals and replaces the 
Mines and Minerals Development Act No. 7 of 2008 provides for safety, health and environmental 
protection in mining operations and for the establishment of the M ining Appeals Tribunal. The new 
Mines and Minerals Development Act No. 15 of 2015 came into effected on July 1, 2015.  
In addition, the formulation of the Mines and Minerals Development Act (General Regulations) SI 
No. 7 of 2016. The new act brings about t he separation of licencing from monitoring. It provides 
for among other things:  
 
- An Online portal: Application for mining rights, submission of the statutory report and 
payments (area charges, licence fees etc) will be done on line from any part of the wor ld. 
Portal is currently being piloted.  
 WT/TPR/M/340/Add.1  
 
- 22 - 
 
  c) Formulation of the mining regulation which is in its advanced stage. Currently, the document 
is sitting with the Ministry of Justice.  
 
d) Review of the Explosives Act and also Mining and Environmental Regulations are ye t to start.  
 
e) Geological mapping of the Country which is about 64%. Construction of core sheds which 
has already began. These are aimed at improving and preserve the Country 's geological 
information for prospective investors.  
 
f) Capacity building through the projects. Two projects are currently running in the Ministry:  
- Mineral Production Monitoring Support Project (MPMSP) aimed at building capacity within the 
MMMD, improving the availability of MMMD to receive mineral production data from producing 
companies  and to verify the completeness and accuracy etc. MPMSP is spear headed by the 
Ministry of Mines and Minerals Development. MPMSP will be complemented by Mineral Value Chain 
Monitoring Project (MVCMP) spearheaded by Zambia Revenue Authority (ZRA).  
 
Question  27:  
 
Measures to induce power sector investment are as follows;  
 
 An Office for Promotion for Private Sector Investment (OPPPI) was set up by Government to 
promote private investment in the development of power projects in Zambia. The functions 
include id entifying projects, develops an appropriate solicitation strategy and documents for 
developers and facilitates negotiations for Implementation Agreements that will enable 
private sector invest in generation projects. The office also undertakes feasibilitie s studies 
on potential sites so that investments have information on various projects. There are 
currently several projects being developed by the private sector . 
 
 Power Purchase Agreement  – Firm Power Purchase Agreements are being offered with 
longer expi ry time. It gives confidence to the private sector . 
 
 Tax Incentives  - The power sector was declared as a priority sector under the Zambia 
Development Agency Act and building of mini -hydros, solar, thermal and hydro power plants 
under the priority sector an d makes these investments eligible to certain incentives such as 
five year tax holidays  for any investment that are above 500 million dollars.  
 
 Cost reflective Tariffs  .To ensure a return on investment for the investor, migration path 
for cost reflective t ariffs have been enshrined in the act that will enable tariffs to be adjusted 
yearly until they reach cost reflectivity.  
 
 Renewable Energy Feed in Tariff (REFIT) Strategy  - The Government has developed a 
Renewable Energy Feed in Tariff (REFIT) Strategy. Th e Strategy is aimed at providing 
predictable environment for promoting investment in  renewable energy technologies.  
 
 The Zambia Grid Code: The Government has a grid that legally establishes technical 
requirements for connection to, and use of, the electric al transmission system by parties 
other than the owning electricity utility in a manner that will ensure reliable, efficient, 
economic, secure and safe operation. This will ensure that power from private sector is 
wheeled.  
 
Question 28  
 
Mainstreaming trade  in national policies – concrete actions and measures  
 
 Mainstreamed in curricula at UNZA, and soon at UNILAS: Trade Policy ; 
 National Development and Plan and the Draft Industrial Policy . 
Page 11, paragraph 3.12: The report states that the single business l evy is paid over the 
counter at local authorities.   
 
 WT/TPR/M/340/Add.1  
 
- 23 - 
 
  Question 29:  
 
Government of the Republic of Zambia enacted the Business Regulatory Act in 2014. One of the 
objects of the Act is the establishment of an Electronic Registry which is a centralized databa se 
containing information on licences, permits, authorisations, certificates and regulations, including 
formalities businesses have to comply with, and capable of facilitating the processing of 
applications online. The Electronic Registry is being redevelo ped and will be maintained by the 
Business Regulatory Review Agency which is the principal agency as regards business regulatory 
reforms.  
 
Question 30  
 
This is to confirm that Zambia signed bilateral Trade Agreements with Angola and the Democratic 
Republic  of Congo. Both Agreement have not entered into force.  
 
The Agreements will be notified once the internal processes are finalised.  
 
Question 31  
 
SADC integration process  as governed by the SADC Protocol on Trade envisages the following:  
 
 Establishment of  an FTA by August 2008;  
 Establishment of a Customs Union by 2010;  
 Establishment of a Common Market by 2015;  
 Establishment of a Monetary Union by 2016; and  
 Establishment of Single Currency by 2018.  
 
In 2008, the SADC Free Trade Area was launched with a roa dmap to liberalise intra SADC Trade to 
100% duty free by 2012.  
 
In the recent past, SADC has focussed its efforts on consolidating the SADC FTA and the agenda 
on industrialisation. An Industrialisation Strategy and Roadmap was adopted during the Extra -
ordinary Summit in April, 2015.  
 
COMESA integration process as governed by the COMESA Treaty envisages the following:  
 
 Establishment of a Free Trade Area (FTA) by 2000;  
 Establishment of a Customs Union by December 2008;  
 Establishment of a Common market by 2014 ; and  
 Establishment of a monetary Union and single currency by 2018.  
 
COMESA attained its FTA in 2004 when it was launched. The Customs Union was launched in 2009 
with the following structure of the Common External Tariff (CET), which is yet to be implemen ted:  
 
 0% for raw materials;  
 0% for capital goods;  
 10% for intermediate products;  
 25% for finished products.  
 
The two regional bodies are not yet Customs unions. The two bodies are working towards being 
unions and therefore, Zambia like all the other membe r states is participating in the preparatory 
works towards a customs union and ultimately the use of a common external tariff.  
 
Other than the efforts towards integration that the two bodies making, further effort is going own 
toward a tripartite arrangeme nt that will include the East African Community and ultimately a 
continental customs union.  
 
Question 32  
 
Trade with COMESA as a percentage of total trade. In 2015, Zambia 's export to the COMESA 
Region accounted for 14.09% of total Export Trade.  
 WT/TPR/M/340/Add.1  
 
- 24 - 
 
  Export T rade with COMESA and overall Ex port Trade Data 2010 to 2015 US$  
 2010  2011  2012  2013  2014  2015  
Exports to COMESA  
 695,920,596  1,146,702,283  1,584,172,540  1,900,747,243  1,304,661,368  991,662,904  
Exports to the World  
 7,200,951,149  8,829,248,544  9,639,65 2,576  10,606,851,708  9,686,800,033  7,037,928,784  
Exports as % of total  
 9.66 12.99  16.43  17.92  13.47  14.09  
 
Import Trade with COMESA and overall Im port Trade Data 2010 to 2015 US$  
 2010  2011  2012  2013  2014  2015  
Imports from COMESA  
 1,459,363,290  1,636 ,574,553  1,869,974,117  2,802,527,281  2,538,955,359  2,131,353,792  
Imports from the World  
 5,321,002,628  7,279,139,877  8,806,150,488  10,587,665,178  9,554,981,079  8,554,481,242  
Imports as % of total  
 27.43  22.48  21.23  26.47  26.57  24.92  
 
Question 33  
 
Zamb ia signed the SADC -EAC-COMESA Tripartite Free Trade Area Agreement on 17th June, 2016 
making her the 17th participating Member/partner state to sign this Agreement.  
 
Ratification will be done as soon as aspects related to market access and rules of origin are 
finalised.  
 
Status of negotiations Market Access: market access offer are yet to be exchanged among 
participating countries that do not share any preferential trade arrangements at the moment.  This 
is part of outstanding phase I issues, which should be  concluded as a matter of priority.  
 
Status of negotiations Rules of Origin: negotiations on rules have been categorised under 
"common ", "similar " and "differentiated " following an assessment of current rules applicable under 
SADC, COMESA and EAC.  
 
Negotia tions have continued on the list rules that remai n outstanding under these 
three  categories.  
 
Status of negotiations Trade Remedies: participating countries have been working on possible  
guidelines (Annex II to the TFTA Agreement) to establish rules for th e conduct of trade remedy 
investigations and the application of trade remedy measures in Tripartite Member/Partner States . 
 
Question 34  
 
As highlighted in the report, the utilisation of preferences under various schemes including AGOA 
has been limited due to a number of factors, some of which are internal to Zambia. For any 
meaningful benefit were to accrue to Zambia, measures will have to be taken to tackle these 
limiting factors, which in some cases are industry specific (i.e. quality and quantities, acce ss to 
finance and linkage to buyers) and others relate to measures prevai ling in the export market 
(i.e. conditions for market entry).  
 WT/TPR/M/340/Add.1  
 
- 25 - 
 
  SECTION III: RESPONS ES TO QUESTIONS BY A RGENTINA  
Question 1  
 
The R-SNDP envisages promotion of rural development throug h two types of programmes:  
 
1 National programmes  with a significant rural development emphasis such as roads, 
energy and industrialisation. Therefore, mainstreaming rural development in all 
national level programmes is a critical factor in this regard;  
 
2 Regional programmes  implemented through provincial and district administration 
structures with regional development as the main framework for rural development.  
 
The objective is to r educe the number of people living in abject poverty in rural areas; and 
making rural areas attractive places to live and work.  
 
The Strategic objectives are to strengthen coordination among various players at all levels; 
invest and increase employment opportunities in rural areas and providing key infrastructures in 
roads, educati on, health, housing, agriculture, water and sanitation; open new avenues of 
employment and facilitating security of tenure on traditional land; and improve access to credit, 
and enhancing the provision of skills and entrepreneurship training.  
 
The followin g are the focal national and regional programmes for accelerated rural and 
regional development:  
 
a) Rural Roads;  
b) Agricultural Diversification;  
c) Rural Industrialisation;  
d) Employment and Job Creation;  
e) Tourism Diversification;  
f) Rural Electrification;  
g) Forestry development;  
h) Infrastructure Development in Health and Education; and  
i) improved Water and Sanitation.  
 
Question 2  
 
Zambia has identified priority sectors that can be supported by way of fiscal and non -fiscal 
incentives and Agriculture is one of such sectors . From the fiscal perspective, the initiatives in 
place include Import duty rates of Zero for tractors, Centre pivots fertilizer, herbicides and 
fungicides. Furthermore, the Corporate Income tax is 10% for farming and agro -processing; 15% 
for manufacturing  of fertilizer. The normal Corporate Income Tax is 35%.  
Incentives are available to any investor in identified priority areas , provided the investor meets 
the investment threshold of US$500,000.  
 
Question 3  
 
The CTI policy recognised the challenges that Z ambia has continued to face due to over 
dependency on the production and export of copper in its raw form. To this end, the document 
sets out policy objectives aimed at:  
 
 Product diversification  
 Market diversification  
 Value addition, and  
 Sustaining the gr owth of non -traditional exports as an important factor in achieving 
economic diversification.  WT/TPR/M/340/Add.1  
 
- 26 - 
 
  SECTION IV: RESPONSE S TO QUESTIONS BY CH ILE 
Question 1  
 
Zambia is open to establish trade and economic cooperation arrangements with countries 
(including develo ping countries) where it has been assessed that such cooperation would result 
into mutual benefits. There are several developing countries with who Zambia has entered into 
such cooperation arrangements.  
 
Question 2  
 
Any country outside Africa which is inte rested to explore trade and economic cooperation with 
Zambia could do so by writing through the Ministry of Foreign Affairs for the establishment of a 
Joint Permanent Commission.  
 
Question 3  
 
The process towards the establishment of the National Committee on Trade Facilitation involved:  
 
 the completion of a needs assessment;  
 stakeholder consultations;  
 The development of terms of reference, including the structures of operation;  
 Approval to establish the Committee; and  
 Request for support to establish a p ermanent Secretariat to manage the activities of this 
Committee.  
 Convening of the first meeting of the National Committee  
 
Question 4  
 
Zambia is engaged in the Economic Partnership Agreement through the East and Southern Africa 
(ESA) configuration, which i ncludes the following 11 countries: Comoros, Djibouti, Ethiopia, 
Eritrea, Madagascar, Malawi, Mauritius, Seychelles Sudan, Zambi a and Zimbabwe. Out of these 
11 countries, four countries, namely; Madagascar, Mauritius, Seychelles and Zimbabwe have 
signed th e interim EPA.  
 
Negotiations to conclude a comprehensive EPA with the ESA countries are yet to be concluded.  WT/TPR/M/340/Add.1  
 
- 27 - 
 
  SECTION V: RESPONSES  TO QUESTIONS BY CANA DA 
Question 1  
 
The agenda to diversify the economy is part of Zambia 's national development plan and form s an 
integral part of sector policies, programmes and initiatives. Diversification by its nature is a long 
term activity whose implementation is reviewed in line with set targets as outlined in the national 
development plan.  
 
Among targets set include prod uct and market diversification, promotion of value addition, and 
promotion of the growth and development of sectors other than mining, among others.  
 
Through efforts aimed at diversification, progress has been made towards the expansion of 
Zambia 's non -traditional exports from just about US$500 million in 2003 to US$ 4 billion by 2013. 
The Zambia has continued to pursue measures aimed at diversification of the economy including 
through the setting up of Multi -Facility Economic Zones, Industrial parks and far m blocks.  
 
Question 2  
 
The Government does acknowledge that corruption and poor public service delivery are 
governance problems affecting economic and social development in Zambia. To this end, The 
Government has committed itself to dealing with corruption  head-on under the principle of  
zero-tolerance in the fight against corruption.  
 
No arm of Government or the private sector is immune to the fight against corruption, therefore 
interventions are for both public and private sector institutions.  
 
The Anti -Corruption Commission (ACC) is working with all Zambians to eliminate corruption in 
various spheres of life.  
 
Among notable steps taken include the following:  
 
 The re -instatement of the "abuse of office clause" in the Anti -Corruption Commission act 
number 13  of 2012 in order to scale up the fight against abuse of public resources;  
 The establishment of a special investigation unit in the Anti -Corruption Commission to deal 
with complex financial and other related white collar crimes to enable the ACC effectivel y 
execute its mandate;  
 The regular Corruption Diagnostic Surveys to provide data for timely and focused corruption 
interventions;  
 The government has developed a Strategic plan, which the recent being the plan for 2013 to 
2016, which provides a clear course  of action for the institution;  
 Through the National Capacity Building Program for Good Governance government, whose 
key strategic objectives are (transparency and accountability) has continued to 
strengthening institutional linkages and building instituti onal capacity, and also to identify 
clear policy guidelines to promote good governance;  
 A Governance Development Unit (GDU) has been established in the Ministry of Justice 
coordinate, monitor, and evaluate the Governance Program in Zambia; and  
 Integrity co mmittees have been established in both public and private institutions to 
enhance governance and service delivery.  
 
Zambia is also a member of the Eastern and Southern Africa Anti Money Laundering Group 
(ESAAMLG), which constitutes like -minded countries co mmitted to the implementation of 
international best practices for combating money laundering  
 
Question 3  
 
As part of its modernisation reforms and in order to enhance processing efficiency, Zambia is 
introducing self -assessment and this facility will enabl e taxp ayers who are licensed for 
Self-Clearance or Licensed Customs Brokers to register a declaration, assess the taxes payable, 
make payment and then risk based Customs intervention will be applied, where required. As part 
of the concept, there is conside ration to allow for a start, Self -Clearance whether through brokers WT/TPR/M/340/Add.1  
 
- 28 - 
 
  or by any taxpayer for motor vehicles as it is envisaged that this commodity can easily be 
classified, based on leading questions. To allow for self -clearance, the procedure for making a 
declaration will be adjusted accordingly.  
 
Under the self -assessment procedure, interventions by Customs will be made after payment for a 
declaration. Interventions in this case will be dependent on the outcome of the risk -based 
selectivity parameters set i n the Asycuda World namely green (release of the cargo without 
examination), yellow (release of the cargo after further documentary validation), red (release of 
the cargo after a physical examination) or blue (post audit control) . To ensure controls on the  
self-clearance facility, the penalty regime, which is modelled on the current Compliance Strategy 
with escalating penalties will be automated on the Asycuda World system.  
 
The following deliverables have been done:  
 
i)  Enactment of legislation;  
ii)  Development  of User Requirements;  
iii) Preliminary change management activities, including engagement with Customs 
Brokers;  
iv) Development of the prototype on Asycuda World to cat er for ( a) Self -Assessment; 
b) Penalty Regime c) Deferred Payment of Taxes, where granted.  
 
The Self-Assessment will be implemented at the twenty six (26) Stations and Pilot is scheduled for 
August 2016 with the final site completed by November 2016.  
 
ZRA has an effective Project Governance framework at corporate level, with a dedicated 
Department f or Project Management headed by a Director. This is meant to ensure an effective 
delivery of all projects.  
 
Question 4  
 
The Government of Zambia has not yet considered becoming an observer to the Agreement on 
Government Procurement. There is no timetable f or becoming an observer.  
However, public procurement in Zambia is founded on principles which are consistent with the 
Agreement of Government procurement as follows:  
 
(a) Transparency;  
(b) Competition;  
(c) Economy;  
(d) Efficiency;  
(e) Fairness;  
(f) Value for money; and  
(g) Accountab ility. 
Question s 5 and 6  
 
Government has for a long time appreciated the importance of involving the private sector in the 
economic development agenda of the country. Government has involved the private sector 
through concessioning existing infrastructure such as -rail transport and the operations of 
Mpulungu harbour.  
 
Other projects in the financial sector include Zambia National Commercial Bank (Rabbo Bank 
Group from Netherlands and Zambia Government) and Indo Zambia Bank (India and Zambia).  
With regard t o green field infrastructure development, a hydro power plant, 120  MW Itezhi Tezhi 
Power Project  is being developed in partnership with Tata Power, an Indian company.   
Other Planned Projects include:  
 Agri-Business – Government is seeking private partners i n developing the Luena and 
Nansanga farm blocs  
 Transport Sector  WT/TPR/M/340/Add.1  
 
- 29 - 
 
  o Ndola – Chilibombwe Road: Negotiations are under way  
o  Lusaka – Ndola Road: Under evaluation  
o Chingola – Solwezi – Mutanda Road: Under evaluation  
o Kasonomwenda Road: Under discussion  
o North -Western Rail: Under discussion  
o Serenje – Pentauke – Chipata Rail (Muchinji -Tanzara): Under preparation   
 WT/TPR/M/340/Add.1  
 
- 30 - 
 
  SECTION VI: RESPONSE S TO QUESTIONS BY CH INA 
Question 1 ： 
 
The investor confidence attributed to stable macroeconomic fundamentals coupled with the 
peacefu l 2011 general election contributed to Zambia Registering high inflows. The inflows during 
the period under review were mainly in Mining and quarry industry due to increased copper prices 
and Zambia 's deliberate policy to enhance infrastructure development  such as transport (road, 
rail); education (schools ,colleges, universities); energy(generation, transmission) and health 
infrastructure.  
 
Zambia prioritized investment attraction in the following priority and growth sectors: agriculture, 
tourism, manufac turing, infrastructure and mining by providing investment incentives.  
 
During the period 2009 to 2014 the selected macroeconomic fundamentals were as indicated in 
the table below.  
 
Selected Macroeconomic  Performance Indicators, 2009 -14 
 2009  2010  2011  2012  2013  2014  
Real GDP growth (end -year %)  9.2 10.3 5.6 7.6 5.1 5.0 
GDP per capita (end - year US$)  993.0  1,236.0  1,732.0  1,814.0  1,897.0  1,886.0  
Annual Inflation end - period (%)  9.9 7.9 7.2 7.3 7.1 7.9 
Commercial banks WALBR (%)  22.7 19.4 16.6 8.8 9.8 12.5 
Exchange rate (Annual average)  5046.81  4796.96  4860.52  5142.0  5.39 6.15 
Non- Traditional Exports [fob] 
(US$ million)  952.5  1,259.9  1,690.3  2,851.7  3,558.4  2,272.0  
Total Exports [fob] (US$ million)  21,364.7  34,500.1  42,915.0  48,206.1  57,175.9  59,616. 9 
 
Source:  Bank of Zambia, IMF, CSO.  
Question 2 ： 
 
The National Industrial Policy is focussed on attaining the following:  
 Stimulating and encouraging value addition activities on primary commodities as a means of 
increasing national export earnings and create employment opportunities;  
 Transforming the Z ambian economy into a diversified and competitive industrial sector which 
is well integrated into the international trading system;  
 Stimulating investment flows into export – oriented industrial sector in order to promote 
innovation, technology transfer an d value addition in the national economy;  
 Supporting the effective development and utilisation of domestic productive capacities as a 
means to increasing output and expanding employment opportunities;  
 Facilitating the acquisition of modern technology to su pport value addition and industrial 
processes by domestic firms;  
 Facilitating public and private investments in the National Quality infrastructure;  
 Stimulating innovation and invention of new products through industrial research and 
development and prot ection of intellectual property; and  
 Stimulating investment in supportive infrastructure such as transport, communication, 
energy and education through public private partnerships;  
Inclusiveness is one of the guiding principles of the Industrial policy, t herefore, the government is 
promoting both local and foreign investment with a view to transforming Zambia into a producer 
of competitive value added products for both the domestic and export markets.  
 WT/TPR/M/340/Add.1  
 
- 31 - 
 
  Question 3 : 
 
Zambia rectification actions regarding b usiness related qualifications and licenses include the 
following:  
A. Business Licences  
Enactment of the Business Regulatory Act No.3 of 2014 which provides for:  
 The establishment of Regulatory Services Centers to promote accessibility of business 
licensing and registrations services under one roof;  
 The establishment of business regulatory clearance systems and single licensing systems for 
businesses in each sector so as to promote efficiency in processing applications;  
 The establishment of the E -registry as an electronic data base of licensing requirements and 
parts of regulations that provide for them;  and a system also envisaged to be a 
transactional platform for licensing applications;  
 A set of principles and interventions to guide regulatory agencies whe n regulating and 
licensing business activities in accordance with laws under their mandate such as:  
o Conducting a Regulatory Impact Assessment (RIA) and stakeholder consultations 
when proposing or amending a policy or regulatory framework;  
o Issuing licenses,  permits, certificates and authorizations within 14 days of receipt 
of an application;  
o Classification of licensing and setting charges, fees and levies on permits, 
certificates, licenses and authorizations for purposes of purely covering 
administrative cos ts of the regulatory agency;  
o New regulations affecting the business environment must not unnecessarily burden 
business enterprises to which they are applied to or be overly bureaucratic;  
 That any license in place shall not be continued for more than 5 year s without an evaluation 
of its effectiveness in achieving its intended purpose;  
 The BRRA to conduct a RIA on existing regulatory frameworks that affect businesses in 
various sectors of the economy and make recommendations;  
 The Act also establishes the Busi ness Regulatory Review Agency (BRRA) and its overseeing 
Committee (BRRC) who will make recommendations to the government on how to improve 
the business environment.  
B. Business Related Qualifications  
Government established the Zambia Qualifications Authority  (ZAQA), a statutory body under the 
Ministry of Higher Education, was established by the ZAQA Act No. 13 of 2011 to provide for the 
registration and accreditation of qualifications, and ensure that standards and registered 
qualifications are internationall y comparable.  
 WT/TPR/M/340/Add.1  
 
- 32 - 
 
  RESPONSES TO QUESTIO NS BY BRAZIL  
Question 1:   
 
The COMESA -EAC-SADC Tripartite Free Trade Area was launched on 10 June 2015 in Sharm el 
Shiek Egypt. At the time of the launch, the Agreement was opened for signature and 15 countries 
signed. O ne more country signed after five days and most recently, Zambia signed the TFTA 
bringing the total number of countries that have signed to 17.  
 
In line with the directive of Heads of State and government of the TFTA participating countries, 
negotiations h ave continued to finalize outstanding issues relation to the Elimination of Import 
Duties, Trade Remedies and Rules of Origin.  
 
Status of negotiations Market Access: market access offer are yet to be exchanged among 
participating countries that do not shar e any preferential trade arrangements at the moment.  This 
is part of outstanding phase I issues, which should be concluded as a matter of priority.  
 
Status of negotiations Rules of Origin: negotiations on rules have been categorised under 
"common ", "simila r" and "differentiated " following an assessment of current rules applicable under 
SADC, COMESA and EAC.  
 
Negotiations have continued on the list rules that remain outstanding under these three 
categories.  
 
Status of negotiations Trade Remedies: participati ng countries have been working on possible  
guidelines (Annex II to the TFTA Agreement) to establish rules for the conduct of trade remedy 
investigations and the application of trade remedy measures in Tripartite Member/Partner States  
 
Other areas of focus,  post the launch, include discussions on the Industrial and Infrastructure 
Pillars as well as negotiations on n Movement of Business Persons.  
 
Question 2:   
 
As part of its modernisation reforms and in order to enhance processing efficiency, Zambia is 
introducing self -assessment and this facility will enable taxp ayers who are licensed for 
Self-Clearance or Licensed Customs Brokers to register a declaration, assess the taxes payable, 
make payment and then risk based Customs intervention will be applied, where  required. As part 
of the concept, there is consideration to allow for a start, Self -Clearance whether through brokers 
or by any taxpayer for motor vehicles as it is envisaged that this commodity can easily be 
classified, based on leading questions. To all ow for self -clearance, the procedure for making a 
declaration will be adjusted accordingly.  
 
Under the self -assessment procedure, interventions by Customs will be made after payment for a 
declaration. Interventions in this case will be dependent on the out come of the risk -based 
selectivity parameters set in the AsycudaWorld namely green (release of the cargo without 
examination), yellow (release of the cargo after further documentary validation), red (release of 
the cargo after a physical examination) or bl ue (post audit control) . To ensure controls on the 
self-clearance facility, the penalty regime, which is modelled on the current Compliance Strategy 
with escalating penalties will be automated on the AsycudaWorld system.  
The following deliverables have bee n done:  
 
i)  Enactment of legislation;  
ii)  Development of User Requirements;  
iii) Preliminary change management activities, including engagement with Customs 
Borkers;  
iv) Development of the prototype on AsycudaWorld to cat er for ( a) Self -Assessment; 
b) Penalty Regime ; c) Deferred Payment of Taxes, where granted.  
 
The Self -Assessment will be implemented at the twenty six (26) Stations and Pilot is scheduled for 
August 2016 with the final site completed by November 2016.  
 WT/TPR/M/340/Add.1  
 
- 33 - 
 
  ZRA has an effective Project Governance framework a t corporate level, with a dedicated 
Department for Project Management headed by a Director. This is meant to ensure an effective 
delivery of all projects.  
 
Question 3:   
 
Projects under the Link Zambia 8000 are being implemented by the Road Development Agen cy 
(RDA) in three (3) Phases namely Phase I, II and III. A total of approximately 8,000 kilometers 
are targeted to be upgraded over a period of five (5) to eight (8) years at an initial estimated cost 
of ZMW 31.42 billion or US$5.93 billion.  
 
So far thirty -seven (37) Projects, representing approximately 3,497.09Km under the Link Zambia 
8000 Programme are under implementation.  
Pave Zambia 2000 Project  
The Government of the Republic of Zambia, through the Road Development Agency, intends to 
rehabilitate and c onstruct 2000 km of Urban Roads using concrete block paving and cobblestone 
technology. The Project is expected to take 5 years to implement.  The Project has three 
(3) implementation phases as outlined below : 
 
 Phase 1 - Procurement of Equipment (2013);  
 Phase 2 - Installation of Brick Plants and Commencement of Brick Manufacturing (2014); 
and 
 Phase 3 – Road Construction (2015 to 2019):  
The overall progress (countrywide) for Phase 3 (construction) still stands at only 1.0 percent and 
the rest of the Regions ar e expected to start works by end of June, 2016 when funds will be 
available.  
 
__________