WT/TPR/S/252 Trade Policy Review 
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III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) INTRODUCTION  
1. Zimbabwe has recently taken steps to reduce its tariff rates autonomously, with a view to 
lowering domestic production costs.  Nonetheless, at 15.4% (with ad valorem  rates ranging from zero 
to 160%), its simple average applied MFN tari ff rate is among the highest in the region.  
Consequently, although Zimbabwe's tariff bindings cover only 22.4% of all lines, on 61 tariff lines, 
applied rates exceed the corresponding bound levels  (in some cases by as much as 60 percentage 
points), and 64 lines carry non- ad valorem  rates that could potentially exceed their ad valorem  
bindings.  The presence of non- ad valorem  tariffs on some 6.1% of all tariff lines (for which 
ad valorem  equivalents could not be calculated) means that the overall average rate has likely been 
underestimated.  
2. Agriculture is the most tariff protected sector , with an average applied MFN tariff rate of 
25.1% (13.9% on non-agricultural prod ucts), based on the WTO definition.  Under ISIC (Revision 2), 
applied MFN tariff rates average 17.3% in agricultur e (including livestock, forestry, and fisheries), 
15.4% in manufacturing, and 5.9% in mining and quarrying.  A range of other duties and charges may 
apply to imports and/or exports;  these include a su rtax, a trade development surcharge, VAT, excise 
duties, as well as a carbon tax and a redemption levy on fuel imports.  Different, specific excise duties are applied on tobacco products, depending on their place of origin.  A range of presumptive taxes, targeting the informal sector, and price controls are in place.  Tariff suspensions apply to a number of 
essential food items, and full rebates of tariffs and VAT  may be granted for a variety of reasons;  the 
particular focus on inputs under some rebate schem es further increases the effective protection of 
selected economic activities and companies.  
3. Zimbabwe grants tariff prefer ences under bilateral and regi onal trade agreements (SADC, 
COMESA) to which it is a signatory;  the simple av erage rates of its preferential tariffs range from 
0.2% (SADC, excluding South Africa) to 11.4% (South Africa). The continued relevance of membership in these overlapping agreements would n eed to be reviewed;  aggregate preferential 
imports remaining rather modest at so me 18% of total imports in 2010.  
4. Zimbabwe levies customs duties on the c.i.f. va lue of imports, computed as an aggregate of 
all costs up to the point of entry into its customs territory.  The methodology used for calculation of 
the cost of freight in the absence of satisfact ory documentary evidence provides for preferential 
treatment of shipments transported from some of its neighbouring countries, as opposed to those 
transported from any other African country.  The authorities acknowledge having difficulties in 
customs valuation of second-hand motor vehicles in particular. 
5. Zimbabwe is among the regional leaders in th e deployment and upgrading of computerized 
customs clearance systems.  Noneth eless, the documentation required often involves more than one 
competent authority, which may levy fees and ch arges independently. Administrative fees under the 
permit system for domestic and international trad e in wild life specimens are calculated on an ad 
valorem  basis;  a range of additional licences are required, depending on the purpose of import.  
Export bans or suspensions, maintained on selected  products for value-added or self-sufficiency 
purposes may, from time to time, be replaced with export taxes. 
6. State ownership and intervention in the economy  remain significant, rendering the supply of 
key goods and services inefficient and costly.  Zimbabwe's Competition and Tariff Commission is 
responsible for investigating and correcting anti-co mpetitive conduct on the domestic market;  it also 
has an investigative role in trad e remedies.  Due to delays in updating legislation, all mergers are Zimbabwe WT/TPR/S/252 
 Page 21 
 
 
currently subject to notification and thereby to a f ee of 0.5% of the merging parties' combined annual 
turnover or combined value of assets in Zimbabwe ;  the absence of notification fee ceilings often 
results in abnormally high levies.  Zimbabwe ha s never initiated any investigations nor imposed any 
measures under its trade remedies legislation.  Efforts to bring Zimbabwe's intellectual property 
regime into closer conformity with the provisions  of the TRIPS Agreement have translated into a 
number of legislative amendments. 
(2) MEASURES DIRECTLY AFFECTING IMPORTS  
(i) Procedures 
7. The Zimbabwe Revenue Authority (ZIMRA), opera ting under the portfolio of the Minister of 
Finance, is responsible for, inter alia , providing integrated border services.  Its mandate is governed 
by the Revenue Authority Act and the Acts specified therein.1  ZIMRA enforces various import and 
export controls on behalf of government ministries, as well as foreign exchange controls on behalf of 
the Reserve Bank of Zimbabwe (RBZ).2  Other government departments, intervening in the control of 
imports or exports at Zimbabwe's border posts includ e:  the Ministry of Agriculture (plants and plant 
products);  the Department of Veterinary Serv ice (animals);  the National Parks and Wildlife 
Management Authority (wildlife specimens and tr ophies);  the Environmental Management Agency 
(hazardous substances);  the Medicines Control Au thority of Zimbabwe (medicines and allied 
substances);  National Museums and Monuments of  Zimbabwe (relics and national treasures);  the 
Registrar of Firearms (firearms);  and the Vehicle Inspection Department (fitness of vehicle and load shipped).  According to the authorities, coordinatio n within the customs clearance process eliminates 
the possibility of ad hoc inspections by representatives of individual departments. 
8. Zimbabwe has adopted the Automated System for Customs Data (ASYCUDA), developed by 
UNCTAD, for the computerization of customs clearance procedures.  Deployment of the system's third version, ASYCUDA++, started in 2001;  it has enabled ZIMRA to automate certain processes, 
including the registration and risk-based processi ng of declarations submitted remotely, and the 
control of removals in bond and transit cargo.
3  In 2009, ZIMRA embarked on a migration to the 
latest, internet-based version, ASYCUDA World, which paves the way for automation of most 
customs-related processes and greatly improves a ccessibility.  At present, more than 90% of 
Zimbabwe's foreign trade is covered by at least ASYCUDA++4;  ASYCUDA World is operational at 
14 stations, representing 61% of all customs offi ces.  As of 31 March 2011, the submission of 
commercial customs declarations (bills of entry)  at ZIMRA offices equipped with ASYCUDA World 
may be done entirely via the internet;  physical submission of hard copies, including of supporting 
documents, is no longer required unless risk assessment  calls for documentary or physical inspection.5   
                                                      
1 Revenue Authority Act, 11 February 2000.  Vi ewed at:  http://www.par lzim.gov.zw/cms%5Cacts 
%5CTitle23_REVENUE/REVENUE_ AUTHORITY_ACT_23_11.pdf. 
2 Since March 2010, ZIMRA has been appointed by th e Motor Insurance Pool of  Zimbabwe as the sole 
agent issuing Road Traffic Act insurance policies (and  collecting premiums thereon) for foreign-destined 
vehicles and all foreign-registered vehicles entering  Zimbabwe.  ZIMRA online information.  Viewed at:  
http://www.zimra.co.zw/index.php?option=com_ content&view=article&id=9&Itemid=14. 
3 ASYCUDA++ is designed to function in difficult telecommunications environments and may be 
operated through GSM networks. 
4 Non-computerized posts are very small and do not handle commercial consignments. 
5 ZIMRA online information.  Viewed at:  h ttp://www.zimra.co.zw/index.php?option=com_content 
&view=article&id=1231:zimra-embraces-asycuda-world-fo r-customs-clearance-with-e ffect-from-31st-march-
2011-no-manual-entries-of-bills-of-entry-will-be-accepted-at-border-posts-and-inland-stations-where-automated -system-for-customs-data-asycuda-world-has-been-ro lled-out-unde&catid=21:did-you-know&Itemid=91. WT/TPR/S/252 Trade Policy Review 
Page 22 
  
9. Customs declarations are processed according to  a risk-assessment method that provides for 
four lanes:  green (ready for clearance), blue (defe rred control), yellow (inspection of documents), and 
red (physical inspection).  A structure of layered risk profiles, providing for the setting of nationwide 
and station-specific parameters for risk assessment  purposes, facilitates continuous review and timely 
updating.  The main factors taken into account fo r the risk assessment are:  value rulings (goods 
typically undervalued in declarations), country of origin, tariff peaks (goods subject to high rates of 
duty), and significant fluctuations in the quantity of the good imported.  
10. According to the authorities, the average time required for processing correct bills of entry is 
three hours.  However, notwithstanding the advan ces in automation of customs clearance procedures, 
ZIMRA's service delivery has been negatively aff ected by intermittent electricity shortages and 
network connectivity challenges across Zimbabwe.6  Moreover, a 2011 World Bank survey reports a 
deterioration, during 2007-10, in the estimated time  and cost per container for both import and export 
transactions.7  Accordingly, Zimbabwe ranks 168th of 183 countries on the trading across borders 
indicator;  in this respect, Zimbabwe is outperfo rmed by all economies in its regional comparator 
group. 
11. Anyone wishing to import (or export) goods for commercial purposes must register with 
ZIMRA to obtain a Business Partner Number (BPN).  Applicants must provide personal identification 
(companies:  a certificate of incorporation), c ontact details, and a Zimbabwean bank account;  
registrations are typically processed within a week.8  Clearance of commercial imports9 valued above 
US$1,000 is done on the basis of:  a bill of entry;  suppliers' invoices;  consignment notes, such as a 
rail advice note, air way bill or bill of lading;  frei ght statements;  cargo manifests;  and insurance 
statement.  Where applicable, supporting documentati on must include:  export or transit declaration 
from the country of origin;  value declaration (required only for consig nments valued above 
US$100)10;  invoices for port charges;  originals of permits, licences, duty-free certificates, rebate 
letters, or value rulings;   certificates of origin;  and a copy of the importer's tax clearance certificate 
(section (2)(v)).   
12. The dutiable value of all imports is the sum of  the purchase cost and all expenses incurred for 
insurance and freight up to the point of entry into  Zimbabwe; proof of these charges is required for 
customs clearance.11  Insurance and freight inside Zimbabwe are not taken into account.  Importers 
and exporters are required to keep proper reco rds of all transactions, including all supporting 
documentation, for at least six years.  Zimbabwe phased out pre-shipment inspection requirements in 
1998.  
13. Although not formally required, engaging th e services of professional customs brokers 
(clearing agents) is recommended by ZIMRA, as the tariff classification's complexity is exacerbated by a multitude of duty rebates and suspensions (sec tion (4)(i)), for which spec ific customs procedure 
                                                      
6 ZIMRA online information.  Viewed at:  http ://www.zimra.co.zw/index.php?option=com_content& 
view=article&id=1122:customs-clearan ce-delays&catid=5: notice&Itemid=7. 
7 World Bank Group (2011).  Data are current as of 1 June 2010. 
8 Registration forms are available free of charge fr om ZIMRA offices.  First-time importers may be 
allocated a pseudo BPN, pending the completion of regist ration formalities.  No information was made available 
on registration or licensing procedures for the purpose of conducting business as a professional trader. 
9 Commercial imports include goods imported by organizations. 
10 According to the authorities, the value declaration is a means to obtain additional details on the 
transaction (beyond those provided on the invoice), such as the relationship between the buyer and the seller. 
11 Failure to provide proof of insura nce and freight charges is not penali zed;  an estimate is used instead 
(section (2)(iv)). Zimbabwe WT/TPR/S/252 
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codes must be used.12  Clearing agents operate under an annual licence, which is renewable;  the 
licence fee for 2011 has been reduced from US$500 to US$100.13  To obtain a licence, applicants 
must submit a certificate of incorporation (a certified copy);  the national registration numbers, finger prints, and police clearance of shareholders, directors and any employees authorized to act on behalf 
of the clearing agent;  curricula vitae  of all employees (with proof of customs experience);  and a tax 
clearance certificate (section (2)(v)).  A bond of  US$10,000 is required to allow the company to 
operate as an agent;  a separa te bond of at least US$250,000 must be posted by clearing agents 
wishing to transact.  Clearing agents set their commissions freely;  according to the authorities, 
commissions tend to be quite low because of the strong competition among clearing agents. 
14. ZIMRA has put in place a pre-clearance facility, which allows the importer or his agent to 
lodge all requisite documents  before the arrival in Zimbabwe of goods dispatched by rail, road or air.  
A mechanism is also in place for advance rulings, on  both tariff and tax issues;  tariff advance rulings 
are valid for 12 months.  To avoid delays at the point  of entry, importers and clearing agents who have 
posted a transaction bond with ZIMRA may also opt for the imports' removal under bond.  Under this 
option, the goods are moved for fi nal clearance at an inland port;  typically, they must be cleared 
within ten days.  Under the dispute settlement pro cedures in place, importers must appeal through the 
administrative channel (station supervisor, ma nager, regional manager, or Commissioner
14) before a 
matter can be taken to the fiscal courts.  The mo st frequently encountered issues concern customs 
valuation.  The majority of infractions are punishable by fines ranging from US$100 to US$5,000 (or three times the duty-paid value, if greater);  certa in cases are liable to criminal prosecution with terms 
of imprisonment of at least one year (Table AIII.1). 
15. Imported goods may be stored in a state-owne d warehouse until duty obligations have been 
settled;  the applicable storage fees are determined  according to weight or the nature of the goods:  
motor vehicles (US$10/day), goods under 500 kg (U S$2/day), and goods above 500 kg (US$4/day).  
Goods may also be imported duty free into a licensed bonded warehouse for up to two years.  During that period, the importer can sell the goods directly from the warehouse and, upon payment of the 
relevant duties and taxes (relate d to commercial importation for domestic consumption), obtain the 
release of the quantities sold.  Temporary importations  can be cleared by payment of a deposit, which 
is refundable on export, or by an application for temporary importation privileges, which are 
guaranteed by a bank or an insurance company.  
(ii) Goods in transit 
16. Goods in transit through Zimbabwe must have security coverage for the full amount of 
customs duty at stake;  this requirement is fu lfilled either through a cash deposit or contracting a 
clearing agent who has a bond with ZIMRA.
15  Goods released from customs under the transit regime 
are expected to exit Zimbabwe within three days;  the bill of entry is acquitted electronically at the 
                                                      
12 Any attempt to take advantage of a non-applicable co de is punishable as a false declaration, and the 
goods are liable to seizure.  An accounting fee of US $10 is payable for amendment of each incorrect bill of 
entry submitted. 
13 Statutory Instrument 13/2010. 
14 In terms of the Customs and Excise Act, Commi ssioner means:  (a) the Commissioner in charge of 
the department of the Zimbabwe Revenue Authority, which is declared in terms of the Revenue Authority Act to 
be responsible for assessing, collecting and enforcing the payment of duties in terms of this Act;  or (b) the 
Commissioner-General of the Zimbabwe Revenue Authority, in relation to any function which he has been authorized under the Revenue Authority Act to exercise. 
15 The COMESA Regional Customs Transit Gu arantee (RCTG CARNET) scheme is not yet 
operational in Zimbabwe;  the authorities are in the process of studying implementation experience in COMESA's northern corridor. WT/TPR/S/252 Trade Policy Review 
Page 24 
  
point of exit.  Failure to meet this deadline w ould result in a late acquittal fine of US$400 upon 
clearing the goods for exit; if the bill of entry remains outstanding in the system, the goods are presumed to have been consumed locally and the re levant security deposit or bond will be claimed.   
17. In an effort to curb transit fraud, which ma y unduly penalize the clearing agents involved, 
Zimbabwe's transit regime for mo tor vehicles was modified with effect from 1 November 2010.  Such 
vehicles may no longer be driven on any domestic road and must be transported on a long-haul vehicle carrier.  
(iii) Rules of origin 
18. Zimbabwe does not have rules of origin for non- preferential purposes.  According to its latest 
notification to the WTO, it applies preferential rules of origin under the COMESA and SADC 
regional agreements, as well as under bilatera l trade agreements with Botswana, Malawi, 
Mozambique, and Namibia.
16  Zimbabwe's bilateral agreement with the Republic of South Africa also 
stipulates preferential rules of origin, but these have  not been notified. By and large, preferential 
imports account for a modest share of Zimbabwe's total imports (section (2)(v)). 
19. Zimbabwe's bilateral trade agreements with Bo tswana, Malawi, Namibia, and the Republic of 
South Africa stipulate virtually identical rules of origin, with a minimum local-content threshold of 
25%;  this threshold is raised to 75% for certain ty pes of woven fabric traded with the Republic of 
South Africa.17 For trade flows between Zimbabwe and Mozambique, preferential treatment is 
conditional on exports having undergone at least 25% domestic value added in either country.  
20. Annex I to the SADC Trade Protocol on rules of origin sets out basic requirements for goods 
to be regarded as originating:  the product must have been wholly obtained in one of the parties18;  or 
the non-originating materials incorporated in the pr oduct must have undergone "sufficient working or 
processing" in accordance with the co nditions set out in Appendix I of Annex I;  or the value of all 
non-originating materials must not exceed 10% of the ex-works price of the good.  There is no regime-wide rule of origin but Appendix I of Annex I lists the specific criteria (mostly with respect to 
HS tariff headings (at various levels)) that non-orig inating materials must meet for a final good to 
acquire originating status.
19 
21. For the purposes of intra-community trade, CO MESA origin may be conferred on products 
shipped directly from one member State to anot her if the products have been wholly obtained20 or 
have undergone substantial transformation in the COMESA member State.  In the latter case, the 
products must either:  have non-COMESA material content whose c.i.f. value does not exceed 60% of 
the total cost of materials used in the production pr ocess;  or have transformation-related value added 
of at least 35% of their ex-factory cost;  or become classifiable under a tariff heading (at the 
HS six-digit level) other than the heading under wh ich they were originally imported.  Goods deemed 
by the COMESA Council of the Common Market to be of particular importance for the economic 
                                                      
16 WTO document G/RO/N/55, 16 October 2007. 
17 ZimTrade (2011). 
18 Article 4 specifies the type of goods that can be regarded as being wholly produced in the member 
states.  It gives a list of the products in this category and establishes the criteria that a vessel must satisfy for it to be regarded as forming part of the territory of a member state. 
19 For further details, see the Secretariat report in WTO document WT/REG176/4, 12 March 2007. 
20 For example, minerals extracted from the soil or  seabed and products of agriculture, fishing or 
hunting, or manufactured wholly from these products, without imported inputs. Zimbabwe WT/TPR/S/252 
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development of the member states and incorporating at least 25% local value added are also eligible 
for COMESA origin.21  
22. Zimbabwe is among the pilot countries impl ementing, since July 2010, the COMESA 
Simplified Trade Regime (STR) fo r cross-border trade in "originating" goods valued at US$500 or 
less (per consignment).  The STR concept has thr ee elements:  a simplified certificate of origin 
obtainable from customs officials at the border post of exit;  a simplified customs document (declaration) to be filled out upon crossing the borde r;  and a common list of goods eligible for the 
STR.  The regime does not relieve the trader of othe r requirements and obligations at the border, such 
as export/import licences and phytosan itary certificates.  For lack of  consensus on a common list of 
eligible goods, the STR is being implemented on the basis of bilaterally negotiated lists of products;  
one such list has been drawn up for trade betw een Zambia and Zimbabwe and is currently 
implemented at three posts along their common border.
22  
23. Both COMESA and SADC have developed model certificates for "originating" goods;  these 
certificates are recognized in Zimbabwe.  Where bilate ral and plurilateral agreem ents exist in parallel, 
importers may choose which certificate of origin to obtain, depending on the terms they identify as 
more advantageous;  preferential treatment is app lied on the basis of the documentation provided for 
customs clearance.  Blank certif icate-of-origin forms, including for exports under non-reciprocal 
preferential regimes, are obtainable from the Zimbabwe National Chamber of Commerce, the Confederation of Zimbabwe Industries, and ZimTrade  (section (3)(v)).  The completed forms must be 
submitted to ZIMRA for certification of compliance with  the relevant eligibility criteria;  to this end, 
the exporter may be required to provide a detail ed description of the manufacturing process and a 
factual cost analysis (along with supporting documentation) for each product.  
(iv) Customs valuation 
24. Zimbabwe's customs valuation rules are containe d in Part X of the Customs and Excise Act.  
In principle, the primary method of valuation is  the transaction value of the imported goods;  when 
necessary, recourse to alternative methods follo ws the hierarchy set out in the WTO Customs 
Valuation Agreement.  A declaration of value is required for all imports that are subject to the 
payment of duty and whose total value for duty pu rposes exceeds US$100 in respect of each complete 
consignment.  
25. Zimbabwe levies customs duties on the c.i.f. va lue of imports, computed as an aggregate of 
all costs up to the point of entry into its customs territory.  In the absence of satisfactory documentary 
evidence, the cost of insurance and freight is de emed to be 15% of the f.o.b. value of goods 
transported by air.  For goods imported by any other m ode of transport, the default cost of insurance is 
set at 1% of the f.o.b. value;  the corresponding rate for the cost of freight is either 5% (for goods transported from neighbouring countries
23) or 7.5% (goods transported from any other African 
country).  Estimation of freight and insurance e xpenses incurred between the country of supply and 
the country where the goods were placed on board the means of transport for direct transportation to 
Zimbabwe is based on international standards.  
                                                      
21 Value added is defined as the difference between the ex-factory cost of the finished product and the 
c.i.f. value of the materials imported from outside the member states, which enter into its production. 
22 The list contains 92 product categories defined mainly at HS 4-digit level;  it covers live animals, 
many food items, wine and spirits, and some manufactured goods (cement, paints, certain articles of plastic, 
leather accessories, paper and printed matter, certa in textiles and footwear, car batteries, etc.) 
23 The eligible countries are Botswana, South Af rica, Lesotho, Swaziland, Mozambique, Zambia, 
Namibia, and Malawi. WT/TPR/S/252 Trade Policy Review 
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26. According to the authorities, customs valuation of second-hand goods, particularly motor 
vehicles, is the most important source of contenti ous cases for dispute settlement;  technical assistance 
would be welcome in this area. 
(v) Tariffs 
27. Pursuant to the Customs and Excise Act, th e Minister of Finance may, by statutory 
instrument24, set rates of customs duties, excise duties, a nd surtax.  The Minister may also prescribe, 
by way of regulations, any suspension, drawback, rebate, remission or refund of duty as may be 
deemed expedient.  The Competition and Tariffs Commission, through the Minister of Industry and 
Commerce, advises the Minister of Finance on, inter alia , the setting of tariff rates and the granting of 
exemptions or concessions, including to a speci fic company.  According to the authorities, a 
consolidated version of the Customs Tariff (including  preferential rates and duty rebates, but not duty 
suspensions) is published upon migrating to a new version of the Harmonized Commodity 
Description and Coding System (HS).  The transparency of Zimbabwe's trade regime could be improved by establishing an easily accessible source of up-to-date information on subsidiary legislation through which trade measures, including tariff suspensions and amendments to tariff and 
tax rates, have frequen tly been implemented. 
28. Since the introduction of the multi-currency system  in 2009, Zimbabwe has gradually lowered 
tariffs on selected raw materials, intermediate i nputs, and capital goods with a view to reducing 
domestic production costs.
25  Customs duties on devices powered by solar energy and energy-saving 
bulbs were eliminated un ilaterally in August 2010.26  A number of tariff suspensions have also been 
introduced with a view to stimulating the development of particular sectors or assisting vulnerable 
groups of society;  the subject goods include:  ge nerators, basic commodities (list of eligible goods 
reduced in 2010), agricultural goods, raw mate rials, capital equipment for mining development 
operations, solar equipment, and ICT equipment (Table AIII.2).27 
29. Tariffs, excise duties, and VAT on imports accounted for over a third of aggregate tax 
revenue in 2009-10;  their shares have rebounded after the decline in 2006-08 (Table III.1).  In 2010, 
customs duties made a smaller contribution to reve nue than VAT on imports, reflecting in part the 
broadening of the base for VAT.   
Table III.1 
Tax revenue by main sources, 2005-10 
(%) 
Tax heading 2005 2006 2007 2008 2009 2010 
Individuals 28.25 23.70 31.43 16.46 15.38 19.42 
Companies 15.85 22.99 16.80 66.02 4.56 11.56 
VAT on local sales 23.11 20.24 19.24 5.42 19.35 20.71 
VAT on imports 9.77 6.39 4.88 0.05 18.13 16.81 
Customs duties 12.18 10.49 9.41 0.003 20.28 15.76 
Excise duties 3.31 3.82 3.09 0.71 8.06 7.63 
   on imports .. 3.25 3.08 0.71 4.84 4.37 
Table III.1 (cont'd) 
                                                      
24 Such statutory instruments may become void retroactively if they are not confirmed in legislation 
passed by Parliament. 
25 Statutory Instruments 26A of 2009, 145 of 2009, 120 of 2009, 164 of 2010, and 191 of 2010. 
26 Ministry of Finance (2011). 
27 Statutory Instruments 154 of 2008, 180 of 2009, 3 of 2010, 23 of 2010, 133 of 2010, 147 of 2010, 
169 of 2010, 170 of 2010, 190 of 2010, and 191 of 2010. Zimbabwe WT/TPR/S/252 
 Page 27 
 
 
Tax heading 2005 2006 2007 2008 2009 2010 
   on local sales .. 0.57 0.01 0.000001 3.22 3.26 
Other taxes 7.00 11.00 13.54 11.33 12.90 6.64 
Carbon tax 0.52 1.37 1.60 0.00 1.34 1.47 
.. Not available. 
Source:  WTO Secretariat calculations, based on data provided by the Zimbabwean authorities. 
(a) Applied MFN tariff 
30. Zimbabwe grants at least most-favoured-nation (MFN) treatment to all its trading partners, 
including those that are not WTO Members.  Its 2011 applied MFN customs tariff is based on 
HS 2007, and comprises 5,932 lines at the 8-digit le vel.  Almost 94% of all tariff lines, including 
duty-free lines, have ad valorem  rates (Table III.2);  the remaining 6.1% carry either specific 
(56 lines) or compound (308 lines) rates.  Most non- ad valorem  duties apply to certain imports of 
alcoholic beverages, tobacco,  apparel, and footwear.  
Table III.2 
Structure of MFN tariffs, 2007 and 2011 
(%) 
  2007 2011 U.R. 
1. Bound tariff lines (% of all tariff lines) 22.4 22.4 n.a. 
2. Duty-free tariff lines (% of all tariff lines) 6.6 9.9 2.3 
3. Non- ad valorem  tariffs (% of all tariff lines) 6.4 6.1 2.6 
4. Tariff quotas (% of all tariff lines) 0.0 0.0 0.0 
5. Non- ad valorem  tariffs with no AVEs (% of all tariff lines) 6.4 6.1 2.6 
6. Simple average tariff rate 17.5 15.4 92.5 
 Agricultural products (WTO definition)a 27.5 25.1 143.9 
 Non-agricultural products (WTO definition)b 15.9 13.9 10.0 
 Agriculture, hunting, forestry, and fishing (ISIC 1) 18.1 17.3 115.1 
 Mining and quarrying (ISIC 2) 6.3 5.9 n.a. 
 Manufacturing (ISIC 3) 17.6 15.4 86.2 
7 Domestic tariff "spikes" (% of all tariff lines)c 6.8 1.6 0.0 
8. International tariff "peaks" (% of all tariff lines)d 35.4 30.4 68.7 
9. Overall standard deviation of applied rates 17.8 15.8 69.1 
10 "Nuisance" applied rates (% of all tariff lines)e 0.0 0.2 0.0 
n.a. Not applicable. 
 a WTO Agreement on agriculture definitions. 
b Excluding petroleum. 
c Domestic tariff spikes are defined as those exceeding three times the overall simple average applied rate.  
d International tariff peaks are defined as those exceeding 15%. 
e Nuisance rates are those greater than zero, but less than or equal to 2%.  
Source:  WTO Secretariat calculations, based on data provided by the Zimbabwean authorities. 
31. For lack of import price data, the ad valorem  equivalents (AVEs) of non- ad valorem  rates 
could not be calculated.  Consequently, only the ad valorem  components of compound duties could be 
taken into consideration in the calculation of tari ff averages for analytical purposes.  This, together 
with the exclusion of lines for which no AVEs could be  calculated, implies that the tariff averages 
hereunder represent lower bounds of the actual average rates. 
32. Subject to these limitations, Zimbabwe's simple  average applied MFN tariff is 15.4% in 2011, 
down from 17.5% in 2007.  The coefficient of variation of 1.0 indicates relatively high tariff WT/TPR/S/252 Trade Policy Review 
Page 28 
  
dispersion (Table III.3), with ad valorem  rates ranging from zero to 160%;  some 9.9% of tariff lines 
are duty free, the modal tariff range is 0-5%, and 1.6% of the total lines carry rates of over 50% (Chart III.1).  Agriculture is the most tariff prot ected:  the average applied tariff on agricultural 
products (WTO definition) is 25.1%, whereas the corresponding average for non-agricultural products 
is 13.9%.  Using the ISIC definition, the simple  average applied MFN tariffs are:  17.3% for 
agriculture including livestock, forestry and fisher ies;  5.9% for mining and quarrying; and 15.4% for 
manufacturing (Table AIII.3). 
33. In aggregate, the tariff depicts mixed escalation:  semi-processed products are subject to a 
lower average applied rate than raw materials, whereas fully processed products attract the highest 
average applied rate (Table AIII.3).  At a more  disaggregated level, positive tariff escalation is 
prevalent in several industries, pointing to high rates of effective protection.  This, for example, is the 
case of food and beverages;  tex tiles and apparel;  and wood products  (Chart III.2).  However, the 
high overall protection of raw materials is clearly reflected in the prevailing pattern of escalation, 
which tends to discourage investment in processing industries because of the non-competitive inputs.  
Thus, the tariff structure may not be conducive to diversification of economic activity through value 
addition at the semi-processed stage, justifying investors' arguments for duty and tax concessions 
already granted under numerous schemes.
28  Such concessions increase tariff escalation and thereby 
the effective protection of selected activities and co mpanies (section (2)(v)(e)).  Furthermore, the high 
tariff protection of certain finished products does not encourage the industries concerned to improve 
their international competitiveness. 
Table III.3 
Summary analysis of Zimbabwe's MFN tariff, 2011 
Analysis No. of 
lines Applied 2011 rates 
Imports 2010
(US$ million)Simple avg. 
tariff (%) Range tariff 
(%) Std-dev  
(%) CV 
Total 5,932 15.4 0-160 15.8 1.0 5,798.0 
       
HS 01-24 986 23.9 0-160 22.6 0.9 1,078.2 
HS 25-97 4,946 13.8 0-80 13.6 1.0 4,719.8 
By WTO definitiona       
Agriculture 827 25.1 0-160 22.7 0.9 1,063.6 
Live animals and products thereof 94 31.0 0-40 14.8 0.5 28.8 
Dairy products 27 26.9 0-40 16.6 0.6 29.5 
Coffee and  tea, cocoa, sugar, etc. 144 21.3 0-40 15.6 0.7 287.5 
Cut flowers and plants 33 12.0 0-40 14.0 1.2 0.9 
Fruit and vegetables 167 31.1 0-40 14.2 0.5 53.8 
Grains 18 7.8 0-15 4.6 0.6 292.9 
Oil seeds, fats, oils, and their products 89 12.7 0-40 12.3 1.0 173.3 
Beverages and spirits 98 61.6 0-140 33.5 0.5 52.8 
Tobacco 31 65.7 10- 160 52.4 0.8 121.6 
Other agricultural products 126 10.0 0-40 10.8 1.1 22.6 
Non-agriculture (excl. petroleum) 5,080 13.9 0-80 13.9 1.0 3,894.0 
Fish and fishery products 234 14.2 0-40 18.2 1.3 18.2 
Mineral products, precious stones, and 
precious metals 338 14.9 0-60 13.3 0.9 271.5 
Table III.3 (cont'd)
                                                      
28 Confederation of Zimbabwe Industries (2010) draws attention to the local market's failure to supply 
raw material to industry;  its policy recommendations include measures to provide for duty-free importation of raw materials. Zimbabwe WT/TPR/S/252 
 Page 29 
 
 
Analysis No. of 
lines Applied 2011 rates 
Imports 2010
(US$ million)Simple avg. 
tariff (%) Range tariff 
(%) Std-dev  
(%) CV 
Metals 653 13.2 0-65 11.3 0.9 414.8 
Chemicals and photographic supplie s 933 7.8 0-40 8.1 1.0 559.5 
Leather, rubber, footwear, and travel goods 189 19.1 0-60 13.5 0.7 93.3 
Wood, pulp, paper, and furniture 312 16.0 0-40 13.8 0.9 166.4 
Textiles and clothing 925  21.3 5-40 14.8 0.7 115.2 
Transport equipment 191 16.4 0-80 17.7 1.1 1,174.4 
Non-electric machinery 568 6.6 0-65 11.2 1.7 487.3 
Electric machinery 293 13.7 0-60 14.1 1.0 437.8 
Non-agricultural articles n.e.s. 444 16.3 0-60 13.7 0.8 155.6 
By ISIC sectorb       
Agriculture, hunting, forestry, and fishing 370 17.3 0-160 21.2 1.2 418.7 
Mining 98 5.9 5-20 2.3 0.4 29.6 
Manufacturing 5,463 15.4 0-140 15.4 1.0 5,298.2 
By stage of processing       
Raw materials 757 13.3 0-160 17.5 1.3 557.0 
Semi-processed products 1,875 8.7 0-40 6.2 0.7 963.6 
Fully-processed products 3,300 19.7 0-140 17.7 0.9 4,277.4 
 
a 25 tariff lines on petroleum products are not taken into account. 
b International Standard Industrial Classification (Rev.2).  Electricity, gas, and water are excluded (1 tariff line). 
Note: CV = coefficient of variation. 
Source : WTO Secretariat estimates, based on data provided by the Zimbabwean authorities. 
 
(9.9)(35.6)
(16.6)
(6.5)(8.0)
(1.5)(0.4) (0.0)(18.9)
(0.0) (0.0)(1.6)
0102030405060708090100
05001,0001,5002,0002,500
0 0-5 5-10 10-15 15-20 20-25 25-30 30-35 35-40 40-45 45-50 >50The figures in brackets correspond to the percentage of total lines. Totals do not add to 100% due to non- ad valorem
duties.
WTO Secretariat calculations, based on data provided by the Zimbabwean authorities.Chart III.1
Breakdown of applied MFN tariff rates, 2011
Number of tariff lines
Note:
Source :Percentage
Number of lines 
Cumulated percentage (right-hand scale)
 
 
 WT/TPR/S/252 Trade Policy Review 
Page 30 
  
0.010.020.030.040.050.0Chart III.2
Tariff escalation by ISIC 2-digit industry, 2011
Source : WTO Secretariat estimates, based on data provided by the Zimbabwean authorities.
All products
Food, 
beverages
Textiles, 
apparel
Wood 
products
Paper, 
printing
Chemicals,
plastics
Non-metallic 
mineral 
products
Basic metal 
products
Fabricated 
metal products
Other 
manufacturingNOT APPLICABLEAgriculture
MiningRaw materials Semi-processed Fully processed
NOT APPLICABLEPer cent
 
(b) Bindings 
34. Zimbabwe's tariff bindings cover 1,328 HS lines at the 8-digit level, 8 of which are partially 
bound.  Tariffs on all agricultural products are bound at a ceiling rate of 150%;  the corresponding 
coverage and ceiling rates for non-ag ricultural products are 9.2% and 35%, respectively.  In total, only 
22.4% of Zimbabwe's tariff lines are bound;  "oth er duties and charges" on these lines are bound at 
15%.  The average bound tariff rate is 92.6%, wher eas the average applied MFN rate computed for 
the same tariff lines is 18.2%.29  This does not ensure predictability of the tariff regime, since it leaves 
large margins for autonomous increases of the applied rates. 
35. Applied rates exceed the corresponding bound levels (in some cases by as much as 
60 percentage points) on 61 tariff lines;  another 64 lines carry non- ad valorem  rates that could 
potentially exceed their ad valorem  bindings.   
(c) Other duties and charges 
36. A surtax on imports of luxury goods has been in place since 2003.  Until 2009, it was levied 
at 15% on goods subject to customs duty of at least 40% and those subject to specific or compound 
duties;  passenger motor vehicles (tariff heading 8703 ) older than five years at the time of importation 
attracted a rate of 25%.  In February 2009, the surtax was eliminated on all products attracting the 
15% rate;  imported used motor vehicl es are still subject to 25% surtax. 
37. A COMESA surtax is levied on certain imports at either 2% (1,078 HS 8-digit lines) or 1% 
(69 HS 8-digit lines);  some 4,785 tariff lines ar e exempt from the surtax.  According to the 
authorities, the rationale for the surtax is twofold:   to protect local industry from goods originating 
                                                      
29 Due to the lack of ad valorem  equivalents, the bound and applied averages were computed on the 
basis of 1,308 lines. Zimbabwe WT/TPR/S/252 
 Page 31 
 
 
from the COMESA region and to generate fiscal reve nue;  allegedly, its overall impact is rather 
modest. 
38. A trade development surcharge of 0.1% is levi ed on the f.o.b. value of imported and exported 
goods for the purpose of financing any trade devel opment organization involve d in the promotion of 
Zimbabwe's exports.  Presently, the proceeds are shared between two government institutions:  
ZimTrade (70%) and the Competition and Tariff Commission (30%).  Commercial flows exempt 
from payment of the surcharge include:  imports a nd exports of gold (including articles made wholly 
from gold), currency, electricity, and petroleum (i ncluding fuels and oils);  any mineral exports 
involving the Minerals Marketing Corporation of Zi mbabwe (either as the exporter or the negotiator 
of a contract);  essential food items imported unde r suspension of customs duties;  and any goods 
imported under a "no currency involved" transaction,  with payment effected outside Zimbabwe. The 
surcharge is collected by authorized dealers (m ostly banks) at the time of trade-related currency 
exchange transactions, and remitted to the beneficiar y trade development organization.  According to 
the authorities, the collection mechanism has not been modified following introduction of the 
multi-currency regime. 
39. Various goods are subject to licensing requireme nts on import, export or transit;  in some 
cases, the documentation required for customs cleara nce includes authorizations from more than one 
ministry and/or department, which may levy fees and charges independently (section (2)(vi)).  According to the 2011 National Budget Statement, the policy, consisting in allowing certain line 
ministries and departments to manage the funds  they collect, "has acted  as an incentive for 
maintaining exorbitant tariffs, fees and charges". 
40. Commercial imports that are not accompanied by the importer's tax clearance certificate
30, 
may only be cleared for entry upon payment of a pr esumptive tax (known as the informal cross-border 
trader's tax) equal to 10% of their c.i.f. value.  A similar presumptive tax applies to most commercial 
transactions in Zimbabwe; all registered businesses, including state-owned enterprises, are required to 
withhold 10% of any amounts totalling or aggregati ng US$250 (or more) that are due to a payee 
without a valid tax clearance certificate.31  The amount withheld must be remitted to ZIMRA on or 
before the 10th day of the month following the month in which the payment was made.  The payer 
must keep copies of the tax clearance certificates furnished by registered counterparts and present a certificate showing full details, including the amo unt withheld, to counterparts subject to the 
withholding requirement.  The financial penalty for failure to comply with the withholding 
requirement is twice the amount that should have been withheld plus any interest.  The fiscal 
contribution of these presumptive taxes seems to be rather modest, suggesting scope for cost-benefit 
analysis of their application.  
41. Imports of fuel are subject to a NOCZIM de bt redemption levy and a carbon tax;  their 
respective rates are:  US$0.028/litre and US$0.013/litre on diesel, and US$0.082/litre and 
US$0.04/litre on petrol.  In addition, bulk imports of petroleum products (diesel or petrol) are subject 
                                                      
30 Tax clearance certificates are issued by ZIMRA to registered operators who have no outstanding tax 
obligations toward the State; depending on the date of issue, the certificate is valid until either 30 June or 
31 December of the current year. 
31 Exceptions to the requirement include:  payments made in terms of employment contracts;  sales 
effected in any shop in its ordinary course of business, as well as any other consumer contracts for the sale or 
supply of goods or services in which the seller or supplie r is dealing in the course of business and the purchaser 
or user is not;  and payments to farmers for the supply of farm produce and livestock.  Public Notice on 
Withholding of Amounts Payable under Contracts in Terms of Section 80 of the Income Tax Act.  Viewed 
at:  http://www.zimra.co.zw/index.php?option=com_conten t&view=article&id=79:public -notice-withholding-of 
-amounts-payable-under-contracts&catid=5:notice&Itemid=7. WT/TPR/S/252 Trade Policy Review 
Page 32 
  
to a levy of US$0.04 per litre if the products are tr ansported by road on either one of two specific 
routes within Zimbabwe.32  The levy is to be paid on entr y in Zimbabwe, and licensed petroleum 
importers are required to indicate the destination of  the products in a separate declaration form.  Any 
outstanding amount of petroleum levy is liable to a penalty of US$30 per day, up to a maximum 
amount of US$5,490.   
(d) Internal taxes 
42. A VAT of 15% is levied on the supply of goods and services, including on their importation.33  
Exemptions from VAT cater to basic necessities, including:  medical and educational services;  rentals from residential properties;  transport of fare-pay ing passengers;  water and electricity for domestic 
use;  and fuel.  Some supplies are zero-rated and are thus eligible for VAT refund on inputs.  These 
supplies include:  basic foodstuffs and clothing (e.g . mealie meal, sugar, milk, meat, salt, bread)
34;  
agricultural inputs (e.g. fertilizer, seeds, and p esticides, animal feed, animal remedy, plants, 
tractors)35;  fiscal memory devices (as from 1 December 2010);  and exported goods (except un-
beneficiated chrome) and services.   
43. As of January 2010, VAT on imports is levied on the c.i.f. value plus customs duties.  Other 
recent amendments to the VAT regime include a gr adual extension of the remittance period (from the 
5th to the 20th of the month following the transaction) with a view to relaxing the liquidity constraints 
of businesses, as well as the introduction of a US$30 penalty for each day that income tax and VAT returns remain outstanding beyond the filing deadline.  Zimbabwe is also in the process of introducing 
compulsory electronic fiscal devices for operato rs with annual turnover above US$240,000 to 
minimize tax fraud.  The "fiscalized" recording of  taxable transactions, initially due to commence on 
1 April 2010, has been deferred three times;  a new deadline is currently being decided.
36   
44. Zimbabwe levies consumption taxes (excise duti es) on a range of products (Table III.4).  A 
gradual transition from ad valorem  to specific duties  was initiated in  2010, but some products, such as 
beer, are still subject to ad valorem  rates.  Different specific rates are applied in some cases, 
depending on the good's place of origin. 
(e) Duty and tax exemptions and concessions 
45. Import tariffs, surtax, and VAT may be reduced or waived under a multitude of provisions for 
rebates and suspensions, most of which target par ticular groups of economic operators or specific, 
particularly state-owned enterprises (Table AIII.2).  While goods could potentially enter duty and tax 
free37 under a large subset of Zimbabwe's 5,932 tariff lines, concessionary imports are made up 
mainly of inputs and capital goods (section (2)(v)). 
                                                      
32 The levy is meant to boost capacity utilization of the pipeline between the port of Beira and Msasa 
Fuel Terminal in Harare, and of the Beit Bridge - Bulawayo railway. 
33 The Minister of Finance may, by statutory instrument, impose a different VAT rate on certain goods 
or services. 
34 As of January 2010, some formerly zero-rated g oods are subject to the standard VAT rate.  The 
relevant HS headings are:  04051000, 08021100, 08021200, 08022100, 08022200, 08023100, 08023100, 
08024000, 08025000, 08026000, 08029000, 10089000, 15171000, 20081100, 33019010, 33069000, 39262000, 
40151910, 40151990, 62011110, 62011210, 62011310, 62011910, 62021110, 62021210, 62021310, and 64019200. 
35 The sale of day-old chicks weighing up to 185 g has been zero-rated since 1 September 2010. 
36 The devices must be acquired from approved suppliers;  a rebate of customs duty and VAT has been 
granted on the importation of approved "fiscalized" elect ronic registers and fiscal memory devices.  In turn, 
customers may claim 50% of the cost of acquisition as income tax credit. 
37 Unless explicitly mentioned in the Statutory Instrument, the subject goods are not exempt from 
excise duty. Zimbabwe WT/TPR/S/252 
 Page 33 
 
 
Table III.4 
Products subject to excise duties, 2005-10 
HS heading(s) Description Rate In force 
2710.1112;  2710.1113 Petrol US $0.20/litre 11.07.2009 - present 
2710.1939 Diesel US$0.20 /litre 11.07.2009 - present 
2707.1000 Benzol (benzene) US$0.15/m3 01.01.2010 - present 
8701 - 8704 Second-hand motor vehicles 5% of the transaction value 
payable upon change of ownership 
of a Zimbabwe registered vehicle; 
vehicles' 1st registration upon 
importation is exempt  01.07.2011 - present 
2203.0091;  2203.0099 Clear beer 40% of the retail price (locally 
made) or the c.i.f. value up to the 
port of entry (imported)  .. - present 
2203.0011;  2203.0019 Opaque beer 10% of the retail price (locally 
made) or the c.i.f. value up to the port of entry (imported) .. - present 
2106.9010 Opaque beer powder US$0.05/kg .. - present 
2201.1011 Aerated beverages 25% of the retail price (locally 
made) or the c.i.f. value up to the 
port of entry (imported) .. - present 
2205 - 2206 (excluding 
2206.0010;  2206.0010;  and 
2206.0010)  Unfortified (still) wine US$0.40/litre of absolute alcohol 
contenta 01.08.2010-present 
2204 Fortified wine US$0.50/litre of absolute alcohol 
contenta 01.08.2010-present 
2208 Spirits US$2.00/litreb 01.08.2010-present 
24021000;  24022010;  24022020;  
24022030;  24022040;  24022090;  
24031010;  24031020 Cigars, cigarettes, cigarette 
tobacco, pipe tobacco, and 
tobacco refuse US$5.00 and US$7.00 per 1,000 
sticks for imported and locally 
made, respectivelyc 01.01.2011-present 
85392210 Non-energy-saving light bulbs, 
power > 40W but < 60W US$0.15 per unit  01.01.2011-present 
85392220 Non-energy-saving light bulbs, 
power > 60W but < 80W US$0.20 per unit  01.01.2011-present 
85392230 Non-energy-saving light bulbs, 
power > 80W but < 100W US$0.25 per unit  01.01.2011-present 
.. Not available. 
a Previously, the applicable rate was 15% of the retail price (locally made) or the c.i.f. value up to the port of entry (impor ted). 
b Previously, the applicable rate was 40% of the retail price (locally made) or the c.i.f. value up to the port of entry (impor ted). 
c Between 1 August 2009 and 1 January 2011, the applicable rate was 80% of the ex-factory price (locally made) and 
US$5.00/1,000 sticks (imported); prior to that, the rate  on locally made goods was 60% of the ex-factory price. 
Source : Ministry of Industry and Commerce. 
46. Rebates and suspensions were granted to 23.3% of the total value of imports in 2009;  the 
corresponding figure for 2010 was 18.6%.  Total reve nue forgone in the implementation of these 
schemes was US$253.8 million in 2009 and US$318.3 million in 2010;  in both years, some 
concessionary imports were recorded on about 42.8% of all tariff lines.  Between 1 January 2009 and 
1 March 2011, revenue forgone tota lled US$646.5 million, with some 3,174 lines (53.5% of all tariff 
lines) concerned.  In many cases, the aggregate va lue of goods imported under rebates or suspensions 
represented an important share of total imports unde r the tariff line (Chart III.3).  In 2010, 459 tariff 
lines (549 in 2009) had a share of concessionary imports of 50% or more.38  These figures make a 
strong case for tariff reform in Zimbabwe. 
                                                      
38 Some 414 lines (499 in 2009) still met or exceeded  the 50% threshold when imports under tariff 
suspensions on selected groceries and on agricultural goods were not taken into account;  these two suspensions did not seem to impose any particular conditions on the type or activity of importer. WT/TPR/S/252 Trade Policy Review 
Page 34 
  
 
0 200 400 600 800 1,000 1,200 1,400<10%10% - 20%20% - 30%30% - 40%40% - 50%50% - 60%60% - 70%70% - 80%80% - 90%90% - 100%≥100%
0 200 400 600 800 1,000 1,200 1,400<10%10% - 20%20% - 30%30% - 40%40% - 50%50% - 60%60% - 70%70% - 80%80% - 90%90% - 100%≥100%
Total number of  lines : 549 and 499 
Total number of  lines : 1,958 and 1,951Chart III.3
Number of tariff lines by share of rebates/suspensions in total imports, 2009 and 2010
Excludes imports under tariff susp ensions on selected groceries and on agricultural goods.
WTO Secretariat calculations, based on data priovided by the Zimbabwean authorities.a
Source: Total number of  lines : 459 and 414
Total number of  lines : 2,029 and 2,0152009 2010
Reduced sample All concessionary importsaa
aa
a
 
(f) Preferences 
47. Zimbabwe grants tariff preferences in the cont ext of bilateral and regional trade agreements, 
which overlap in terms of trading partners but  may differ in product coverage and regulatory 
stringency, including with respect to rules of orig in.  Tariff preferences for the SADC distinguish 
between the Republic of South Africa and other members, reflecting a sl ower pace of tariff 
phasedown vis-à-vis the grouping's most developed economy, as stipulated in the SADC  Trade 
Protocol.  In 2010, Zimbabwe re-instated import tari ffs on certain goods (including food preparations, 
pipes, plastic packaging, and galvanized steel) originating from the SADC, in order to provide 
protection to its domestic industry.39 
48. While the simple average MFN tariff rate is 15.4%, simple average rates for Zimbabwe's 
preferential partners range from 0.2% (SADC ex cluding South Africa) to 11.4% (South Africa) 
(Table III.5).  By and large, imports under prefer ential agreements are rather modest; aggregate 
preferential imports accounted for 17.9% of total imports in 2010.40  According to the authorities, the 
modest share may be attributed to the magnitude of  the informal sector, as well as to the structure of 
merchandise imports (mostly capital goods origin ating from non-preferential trading partners). 
                                                      
39 Statutory Instruments 163 of 2010 and 188 of 2010. 
40 This figure comprises imports under all of Zimbab we's bilateral trade agreements, including those 
not reported in Table III.5 due to their marginal overall share (0.4%). Zimbabwe WT/TPR/S/252 
 Page 35 
 
 
Table III.5 
Preferential (average) tariffs and 2010 import shares 
  RSA SADC (ZA)a Other SADCb COMESA  
 MFN 
tariff Pref. 
tariff % of 
imports Pref. 
tariff % of 
imports Pref. 
tariff % of 
imports Pref. 
tariff % of 
imports 
Total 15.4 11.4 1.6 1.9 13.3 0.2 0.6 3.7 2.0 
HS 01-24 23.9 14.9 6.8 4.4 16.1 0.2 2.0 3.4 7.2 
HS 25-97 13.8 10.8 0.4 1.4 12.7 0.2 0.2 3.7 0.8 
By WTO definition          
Agriculture 25.1 14.3 6.9 5 16.0 0.3 1.7 4.2 7.2 
Live animals and products thereof 31 6.1 79.6 8.5 2.0 1.6 0.1 1.9 0.5 
Dairy products 26.9 3 46.8 7.4 4.7 1.1 0.0 1.6 16.1 
Coffee and tea, cocoa, sugar, etc. 21.3 15.5 3.7 3.5 35.7 0.2 1.8 3.5 15.4 
Cut flowers and plants 12 11.9 2.1 0 19.7 0 0.0 6.7 0.8 
Fruit and vegetables 31.1 15.9 29.5 4.5 32.0 0.2 0.1 4 1.2 
Grains 7.8 4.4 0.0 0 3.1 0 1.1 1.7 3.6 
Oil seeds, fats, oils, and their 
products 12.7 4.7 4.1 2.6 3.7 0 1.2 2.1 6.6 
Beverages and spirits 61.6 60.9 0.0 8.6 49.0 0 11.1 11 3.2 
Tobacco 65.7 0 0. 0 24.2 0.0 0 0.0 23.7 1.0 
Other agricultural products 10 9 12.9 0.4 31.0 0 8.1 1.6 6.8 
Non-agriculture (excl. petroleum) 13.9 11 0.5 1.4 14.5 0.1 0.4 3.6 1.0 
Fish and fishery products 14.2 14.2 0.8 1 22.5 0 18.0 0.4 6.8 
Mineral products, precious stones, 
and precious metals 14.9 13 0.1 1.3 18.3 0.1 0.0 4.6 3.6 
Metals 13.2 11.9 0.3 1.3 34.0 0 0.0 2.5 2.4 
Chemicals and photographic 
supplies 7.8 7.6 1.0 0.6 28.9 0 1.0 1.9 1.8 
Leather, rubber, footwear, and 
travel goods 19.1 14.2 0.0 1 36.1 0 0.6 3.7 1.2 
Wood, pulp, paper, and furniture 16 14.1 5.6 2.6 30.3 0.1 0.4 5.2 2.3 
Textiles and clothing 21. 3 10.6 0.2 0.4 15.6 0 2.5 5.9 2.1 
Transport equipment 16.4 14.8 0.0 5.8 1.1 3.4 0.0 3.4 0.0 
Non-electric machinery 6.6 6.1 0.1 0.9 11.7 0 0.0 1.4 0.4 
Electric machinery 13.7 12.4 0.3 3.1 5.6 0 0.1 4.8 0.0 
Non-agricultural articles n.e.s. 16.3 14.2 0.0 2.2 8.5 0 0.0 6 0.3 
a The regime for South Africa under SADC. 
b The regime for SADC countries excluding South Africa. 
Source : WTO Secretariat estimates, based on data provided by the Zimbabwean authorities. 
(vi) Prohibitions, quantitative restrictions, controls, and licensing 
49. Zimbabwe's latest notification on import licensing procedures to the WTO dates from 
June 2010.41  While most of its trade is governed by  (automatic) open gene ral import and export 
licences, imports and/or exports of certain goods ma y be subject to specific licensing, regardless of 
their country of origin (Tables III.6 and section (3)( iii)).  By and large, such licences are applied on 
health, sanitary and phytosanitary, and environmental protection grounds. According to the authorities, Zimbabwe does not maintain any non- automatic licensing for quantitative restrictions 
purposes.  However, each import and export licence is issued for a particular f.o.b. value of the 
                                                      
41 WTO document G/LIC/N/3/ZWE/3, 24 June 2010. WT/TPR/S/252 Trade Policy Review 
Page 36 
  
subject good;  licences for fuel, cooking oil, a ll animal and agricultural products, and certain 
foodstuffs also stipulate a quantity threshold, alle gedly to mitigate the possible impact of exchange 
rate fluctuations.42   
Table III.6 
Goods subject to import controls and/or licensing 
In force Description Conditions/Requirements 
.. - present Stills and all apparatus or parts of apparatus (including 
dry cleaning machines) capable of being used for the 
production or refining of alcohol Importation subject to Commi ssioner's written authorization 
and conditions set therein; unless the apparatus is for re-sale, 
a licence to distil spirits or a cer tificate of registration is also 
required (issued by the Commissioner in respect of the apparatus for the performance of laboratory work or manufacture of goods other than spirits)  
.. - present Explosives (including i gnition cords, detonators, fuses, 
ammonium nitrate blasting agents, etc.), firearms, and 
ammunition The Ministry of Industry and Commerce cannot issue an 
import licence unless the applicant has first obtained a 
permit, licence or certificate from the Central Arms Registering Office. Only the import licence is required for clearance of imports 
.. - present Transmitters;  transceivers;  two-way radios;  
walkie-talkies;  citizens-band radios (generally installed 
in cars) Import licence issued by the Ministry of Industry and 
Commerce, conditional on a certificate from the Posts and 
Telecommunications Regulatory Authority (POTRAZ) authorizing importation and dea ling in any such equipment; 
both documents must be presented on importation 
.. - present Fuel Import licence issued by the Ministry of Industry and 
Commerce, conditional on:  (1) recommendation from the 
Ministry of Energy and Power Development;  and (2)  proof 
that the importer has proper storage facilities 
05.10.2010-
present Maize seed/wheat seed Permit from the Mi nistry of Agriculture, Mechanization and 
Irrigation Development (Secretary's signature), conditional on:  (1) GMO-free certificate;  (2) Plant Import Permit;  
(3) Agricultural Marketing Authority support letter;  
(4) Seed Services support letter 
05.10.2010-
present Wheat, maize grain, sorghum (grain, meal and malt), 
mhunga (grain, meal and malt), soya beans  Permit from the Ministry of Agriculture, Mechanization and 
Irrigation Development (Secretary's signature), conditional on:  (1) GMO-free certificate;  (2) Plant Import Permit;  
(3) Agricultural Marketing Authority support letter 
05.10.2010-
present Cotton (lint, meal, seed and cake), soya cake, corn meal, 
corn soya blend, apples, bana nas, grapes, peaches, pears, 
plums, potatoes, sugar (raw and refined), vegetable oils, 
vegetable fats, margarine Permit from the Ministry of Agriculture, Mechanization and 
Irrigation Development (Secretary's signature), conditional 
on:  (1) Plant Import Permit 
05.10.2010-
present Poultry products (1-day-old chicksa, frozen chickens and 
their products, hatching and table eggs, ostrich meat, 
ostrich eggs), animal oils and fats (lard, tallow, dripping), animal semen and animal embryo, animal feed stuffs, 
beef, veal, goats, bees, butter,  ghee, cream, cattle, meat 
(above 5kg), meat meal, blood meal, carcass meal, milk (pasteurized, sterilized, UHT,  lacto, condensed, or any 
other liquid form ), milk powder (skimmed and full 
cream), honey, pigs (live and dead) Permit from the Ministry of Agriculture, Mechanization and 
Irrigation Development (Director's signature), conditional on:  (1) Veterinary Import Permit;  (2) Veterinary Heath 
Certificate 
.. - present Horns, hides, and skinsb Permit from the Ministry of Agriculture, Mechanization and 
Irrigation Development (Director's signature), conditional 
on:  (1) Veterinary Health Certificate 
05.10.2010-
present Beans, bean meal, mealie-meal, oil seeds (cake, cake 
meal, offal and residues from oil seeds), seed for planting 
(cereals, trees, vegetables), flour Permit from the Ministry of Agriculture, Mechanization and 
Irrigation Development (Director's signature), conditional 
on:  (1) Plant Import Permit 
05.10.2010-present Fertilizer Permit from the Ministry of Agriculture, Mechanization and 
Irrigation Development (Director's signature), conditional 
on:  (1) Fertilizer registration Certificate 
Table III.6 (cont'd) 
                                                      
42 The original licence is required for customs clearance and each shipme nt's details must be reflected 
on it to ensure that the authorized quantity and/or value limits are not exceeded.  Goods subject to non-automatic 
licensing may not be released under guarantee before the relevant licence has been presented to Customs;  
licence applications may not be made afte r the goods' arrival at Customs.   Zimbabwe WT/TPR/S/252 
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In force Description Conditions/Requirements 
05.10.2010-
present Maize and soya mea l, barley, barley malt Permit from the Mini stry of Agriculture, Mechanization and 
Irrigation Development (Director's signature), conditional 
on:  (1) GMO-free certificate;  (2) Plant Import Permit 
05.10.2010-present Bones, bone meal, cheese, ice cream Permit from the Ministry of Agriculture, Mechanization and 
Irrigation Development (Chief Economist's signature), 
conditional on:  (1) Veterinary Import Permit;  
(2) Veterinary Heath Certificate 
05.10.2010-
present Fish (dried and fresh)   Import licence issued by the Ministry of Industry and 
Commerce, conditional on:  (1) Veterinary Import Permit;  (2) Permit from the Ministry of Agriculture, Mechanization 
and Irrigation Development (Chief Economist's signature) 
05.10.2010-
present Baby corn, fruit (citrus and non-citrus), coffee beans, 
ground nuts, jugo beans,  manure, mopane worms, rapoko 
(grain, meal and malt), rice in the grain, sunflower, tea, vegetables (dried and fresh) Permit from the Ministry of Agriculture, Mechanization and 
Irrigation Development (Chief Economist's signature), 
conditional on:  (1) Plant Import Permit 
.. - present Katambora grass Permit from the Ministry of Agriculture, Mechanization and 
Irrigation Development (Chief Economist's signature), 
conditional on:  (1) Plant Import Permit;  (2) Seed services 
support letter 
.. - present Medicines and allied substa nces, dangerous drugs  Import licence issued by the Ministry of Industry and 
Commerce, conditional on:  (1) Permit from the Secretary 
for Health and Child Welfare 
.. - present Hazardous and toxic substances, radioactive substa nces Import licence issued by the Ministry of Industry and 
Commerce, conditional on:  (1) Permit from the Environmental Management Authority 
 
a Only breeding companies are allowed to import day-old chicks for commercial purposes. 
b Raw, untanned skins are subject to the import permit require ment, but not tanned skins.  We t blue hides need a permit; 
 importation of raw hides is not  allowed unless they are treated up to the wet blue stage. 
Source : Information provided by the Zimbabwean authorities. 
50. Under the Control of Goods Act, the granting of most licences is administered by the Ministry 
of Industry and Commerce43;  subject to the provisions of any other law, supporting documentation 
from other ministries and departments is frequently  required.  Licences are valid for three months 
from the date of issue and are not transferable between importers;  their validity may be extended 
upon request.  For agricultural products, the issuing authority is the Ministry of Agriculture, 
Mechanisation and Irrigation Development.  
51. The movement of all wild life within Zimbab we and across its borders is controlled by a 
permit system;  a permit from the Director of Nati onal Parks and Wild Life Management Authority is 
required for the importation, internal movement (inc luding transit), or exportation (section (3)(iii)) of 
wild life specimens, unless the item has lost its orig inal identity in the process of manufacture.  The 
relevant fees are calculated as a percentage of the sp ecimen's value:  5% for import of a live specimen, 
2% for transit/movement within Zimbabwe, and 2% for the processing of CITES documentation if 
applicable;  no information was made available on the valuation methodology.  A range of additional 
permits and licences may be re quired, depending on the purpose of import (sale, breeding, 
commercial or domestic keeping, trophy dealing).44  According to the National Parks and Wild Life 
Management Authority, the administrative fees  collected are the main source of funding for 
conservation activities. 
                                                      
43 The Ministry levies a licensing fee of US$5.00 for individuals and US$10.00 for companies;  no 
deposit or advance payment requirements apply.   
44 For the relevant fees see the Au thority's online information.  Vi ewed at:  http://www.zimparks.org/ 
index.php?option=com_content&view=article&id=105&Itemid=66. WT/TPR/S/252 Trade Policy Review 
Page 38 
  
52. Goods in transit through Zimbabwe either by  rail or air are not subject to non-automatic 
licensing, unless specifically indicated.  Customs clearance of explosives in transit requires an 
authorization from the Chief Government Mining Engin eer if the goods are to be transported by road;  
shipments by rail are exempt from this requirement .  The Minister of Industry and Commerce may 
also issue import permits on condition that the goods  will be re-exported and not disposed of locally. 
53. By and large, Zimbabwe maintains import pr ohibitions on health and moral grounds, and to 
comply with international conventions to which it is a party (Table III.7). 
Table III.7 
Import prohibitions and suspensions, 2005-11 
Legal base In force Description 
Customs and Excise 
Act (Section 47) .. Base, forged or counterfeit currency; an y goods which are indecent, obscene or 
objectionable; any goods that mi ght tend to deprave the morals of the inhabitants of 
Zimbabwe;  prison-made and penitentiary -made goods;  spirituous beverages that 
contain preparations, extracts, essences or chemical products that are noxious or 
injurious (100% alcoholic content)a 
Statutory Instrument 
150/1991 .. Bufotenine;  DMPH;  glutethimide;  ly sergamide;  lysergide and other N-alkayle 
derivatives of lysergamide, which incl uded the medicine commonly known as LSD, 
but not including methysergide maleate;  mescaline;  methaqualone methyprylon;  
parahexyl;  psilocin, psilotsin;  psilocy bine;  DET N, N-diethyltryptamine;  
N-dimethyltryptamine;  2.5- dimethoxy-4,a  dimethylphenthylamine;  STP, DOM;  
tetrahydrocannabinnols, all isomers;  any st ereoisomerism form, ester, ether or salt 
of a substance prohibited and any preparation containing any 
Dangerous Drugs Act .. Prepared opium and heroin 
Agricultural Order 
350/93 (Section 3) .. Unsterilized royal jelly containers 
Statutory Instrument 
57/1989 .. Gizzards 
White Phosphorus 
Matches Act 21.06.1912 - present Matches containing white phosphorus 
Censorship Act 
(Section 13) .. Indecent, pornographic,  and subversive material (mainly publications) 
Statutory Instrument 
7/2011 .. Ozone-depleting substances whos e phase-out periods have expired 
Statutory Instrument 
766/74 (Section 7) .. Flick guns, flick knives, and any other lockable knivesb  
Statutory Instrument 
154/2010 01.12.2010 - present Vehicles that are over 5 years old.   In addition, no left-hand drive vehicles may be 
registered for the first time after 31 March 2011 
Statutory Instrument 98/2010 .. Plastic packaging with wall thickness of  less than 30 micrometres, other than:  
biodegradable plastic packaging;  or plastic  bread packaging and cling film used as 
barrier packaging with wall thickness  of no less than 25 micrometres 
Import suspensions/temporary prohibitions  
.. 05.10.2010-present Potatoes, tomatoes 
 
.. Not available.  
a The Minister of Finance may authorize the importation of any such goods for the purpose of study, scientific investigation or  use 
 as evidence in any proceedings. 
b These goods require permits on exportation. 
 
Source : Information provided by the Zimbabwean authorities. 
54. Infractions concerning prohibited or restricted importations are punishable by a fine and/or 
imprisonment for up to five years.  The fine may no t exceed "level twelve", currently equivalent to 
US$2,000, or three times the duty-paid value of the subject goods, whichever is greater. Zimbabwe WT/TPR/S/252 
 Page 39 
 
 
(vii) Contingency measures 
55. General provisions for anti-dumping and counte rvailing measures are set out in Sections 90 
through 94 of the Customs and Excise Act; the relevant implementing regulations, made in 
accordance with the Competition Act, are in Statut ory Instrument 266/2002, which has been notified 
to the WTO.45  Regulations on safeguards are set out in Statutory Instrument 217/2006, which has not 
been notified to the WTO;  no additional inform ation was made available.  According to the 
authorities, Zimbabwe has never initiated any inves tigations nor imposed an y measures under its trade 
remedies legislation on account of limited technical a nd administrative capacity.  Its latest notification 
on countervailing measures, affirming their ab sence during the period 1998-2000, dates from 
March 2001.46  Zimbabwe has not signed any notifications of anti-dumping or safeguard actions to the 
WTO. 
56. The Minister of Industry and Commerce may, on the basis of evidence established by a 
Competition and Tariff Commission investigation, recommend to the Minister of Finance to impose anti-dumping or countervailing measures.
47  The procedures for initiating and conducting 
investigations, and imposing measures, including thei r duration and review, is virtually the same for 
countervailing and anti-dumping measures;  in general,  they comply with the relevant provisions of 
the Agreement on Implementation of Article VI of the GATT.  No products may be subject to both 
anti-dumping and countervailing duties to compensate for the same situation of dumping and subsidization.  Unless the Minister of Finance has specified to the contrary, by notice in the 
Government Gazette , goods imported under a rebate of the ordinary duty for use in the manufacture, 
assembly or refining of any article within  Zimbabwe are exempt from anti-dumping and 
countervailing measures. 
(viii) Technical regulations, conformity assessment, and standards 
57. The Standards Association of Zimbabwe (SAZ), a non-governmental and non-profit 
organization, is the national standards body.
48  Its core mission is to coordinate standardization 
activities in Zimbabwe and to publish national sta ndards.  However, responsibility for preparing 
standards and technical regulations lies with govern ment authorities, which may or may not involve 
SAZ in the process.49 In its centres in Harare, Bulawayo, and Mutare, the association provides 
information services on national, foreign, regional, and international standards;  SAZ also serves as 
Zimbabwe's TBT enquiry point on standards and conformity assessment.  In addition, the SAZ 
promotes the use of standards through various  certification schemes and training programmes.50  It 
represents Zimbabwe in standardization activ ities at the International Organization for 
Standardization (ISO) and the International Electrot echnical Commission;  it is also involved in the 
                                                      
45 WTO documents G/ADP/N/1/ZWE/2/Suppl.1 and G/SCM/N/1/ZWE/2/Suppl.1, 15 November 2002. 
46 WTO document G/SCM/N/71/ZWE, 30 March 2001. 
47 Provisional and definitive duties, either anti-dumpi ng or countervailing, become retroactively void, 
unless they are confirmed by parliamentary resolution before Parliament is next dissolved or prorogued for more 
than seven days. 
48 This status is stipulated in a Memorandum of Understanding with the Government of Zimbabwe with 
effect from 21 April 2008. 
49 Whenever possible, the SAZ is to give priority to requests for work on standards that the 
Government of Zimbabwe consider to be in the national interest.  If a request is made for regulatory purposes, 
SAZ would endeavour to ensure that the standard is dr afted in a form suitable for referral to legislation. 
50 SAZ operates certification schemes for:  product  mark;  quality management system (ISO 9001);  
environmental management system (ISO 14001);  occupati onal health and safety management systems (OHSAS 
18001);  and food safety management system (ISO 22000).  Its ISO 9001 and 14001 certification schemes are both accredited by the South African National Accreditation System (SANAS). WT/TPR/S/252 Trade Policy Review 
Page 40 
  
harmonization of policies and standards at the region al level, in the framework of both COMESA and 
SADC. 
58. SAZ activities are funded mainly with revenue from its operations;  it also receives annual 
grants from a Standards Development Levy F und for the development and promotion of 
standardization and quality control of commodities and services.51  The SAZ has memorandums of 
understanding with the following national standards bodies: Botswana Bureau of Standards, Zambia 
Bureau of Standards, Swaziland Standards Authorit y, Kenya Bureau of Standards, and the Congolese 
Control Office (DRC).  Collaborative efforts focu s on:  adopting regional standards;  mutual 
agreement on any technical differences between nati onal standards;  applying uniform standards and 
procedures for the inspection and testing of goods  traded bilaterally;  mutual recognition of 
certification mark schemes and the marks of conformity for tradi ng purposes;  and facilitating or 
undertaking, on behalf of each other or jointly, any pre-shipment inspection and certification of 
bilaterally traded products.  
59. Within the SAZ, national standards are prepar ed by technical committees (TCs) with broad 
representation, including manufacturers, trade associ ations, government departments, research and 
professional institutions, and the consumer council of Zimbabwe.  Each TC is managed by a technical 
secretary who is a member of the SAZ staff.  The SAZ has over 300 committees and sub-committees, 
consisting of over 4,000 national experts;  approximately 80 committees are actively involved in 
standards development work in a given year.52  There are seven technical (sectoral) committees to 
which anyone living in Zimbabwe may turn to initiate  a project standard.  As a signatory to the WTO 
code of good practice for the preparation, adoption,  and application of standards, the SAZ abides by 
its principles of openness, balance of interests a nd participants, due process, and consensus.  The 
elaboration process provides for a 60-day period for p ublic comment;  a two-thirds majority of the TC 
members is required for the standard's approval for publication.  To date, the SAZ has published 
1,440 Zimbabwean standards;  almost 99% of these are based on international, regional, or foreign 
national standards.  
60. Decisions on the adoption of standards as technical regulations are made by the ministry in 
charge of regulating the relevant sector.  A statut ory instrument making the standard compulsory must 
be enacted by the Minister in charge and published in the Government Gazette .  Zimbabwe's technical 
regulations cover a range of products, including Portland cement,  cement bricks, glass blocks, 
damp-proofing materials, mastic asphalt for roofi ng, bitumen roofing felts, fibre cement felts, fire 
extinguishers, fire doors, zinc coatings on steel, clay  roofing tiles, steel pipes, copper tubes, and water 
taps.53  However, no regular inspections for complianc e with technical regulations are being carried 
out either at the border or on the domestic market;  customs officers may only intervene upon receipt 
of directives from line ministries. 
(ix) Sanitary and phytosanitary measures 
61. Under Zimbabwe's SPS regime, imports of a range of goods are subject to non-automatic 
licensing, often involving more than one compet ent authority (Table III.6).  The importer is 
responsible for obtaining all requis ite documents and providing the originals for customs clearance.  
                                                      
51 The Standards Development Fund collects the proceeds of a levy equivalent to 0.05% of the total 
remuneration payable annually by employers to the employees of industry.  The Fund is vested in the Ministry of Industry and Commerce and is administered in accordance with the Minister's directions. 
52 SAZ online information.  Viewed at:  http://w ww.saz.org.zw/index.php/standards-development/ 
general-information. 
53 An exhaustive list was not made available. Zimbabwe WT/TPR/S/252 
 Page 41 
 
 
Animals, animal products, and infectious things54 are not subject to controls if in transit by either rail 
or air (unless they have passed through Kenya, Tan zania, Malawi, Mozambique, or Zambia);  a transit 
permit, issued on production of an import permit from the importing country, must be obtained for 
transport by road.  A transit permit is also require d for wheat in the grain, wheat bran, wheat flour, 
wheat pollard, and bread, regardless of the mode of transport.  
62. In general, an import permit is  required for all growing media,  living invertebrate, seeds, 
plants, and plant products entering Zimbabwe.55  Exemptions apply to:  cut flowers not intended for 
propagation;  non-citrus fruit and vegetables for co nsumption (excluding potatoes) that have been 
grown or produced in a "specified country"56;  some dead plant products;  and some seeds.  Plant 
import permits typically stipulate that plants must  be fumigated on arrival, unless accompanied by a 
particular kind of fumigation certificate;  in the ab sence of this certificate, the plants may be released 
on the importer's signed undertaking to report with the goods to a specified centre for fumigation.  A phytosanitary certificate is required for the importa tion of any commodity of plant origin;  release 
from customs may be refused if the certificate produced is not worded in accordance with the 
conditions stipulated on the import permit.  The impor ter has the right to appeal against the detention 
or destruction of a plant.   
63. The Chief Plant Protection Officer's written con sent is required for the importation of any soil 
and plants packaged in soil, as we ll as fresh fruits originating from Asia or the Pacific Islands; these 
articles may be imported only for scientific purpo ses.  Seeds imported for research purposes and not 
exceeding 100 g (small grain seeds) or 10 kg (big seeds)  per variety are not subject to control.  In 
addition to the plant import permit, importers of seeds must obtain a permit/support letter from Seed 
Services (Department of Research and Extension Services) and, if importing more than 100 kg, a 
permit under the Control of Goods Act from the Mini stry of Agriculture.  All imported seeds are 
subject to testing, unless accompanied by a valid Or ange International Certificate from an institution 
accredited by the International Seed Testing Association.  Seeds under compulsory certification (maize, wheat, barley, oats, soya beans, cotton,  tobacco, and potatoes) may only be imported or 
exported by Zimbabwe-register ed certifying agencies.   
64. Plant inspectors are stationed at most of Zi mbabwe's entry points to facilitate customs 
clearance;  where there are no inspectors, ZIMRA offi cers have been appointed as plant inspectors.   
65. The importation of all animals and animal produc ts is controlled by the Department of 
Veterinary Services.  Typically, the requisite docum entation comprises a veterinary health certificate 
(signed by the exporting country's Veterinary Aut hority) and a veterinary import permit;  the issuance 
of both documents is centralized at the Veterinary Services Head Office in Harare.
57  F o r  s o m e  
products, a permit from the Ministry of Agriculture ma y also be required.  The granting of an import 
permit for certain animals or animal products (e.g . chickens and chicken products, dairy products, 
processed and canned meats) may be conditional on inspection of processing plants in the exporting 
                                                      
54 The term "infectious things" includes animal products, all grains, and any wrapping material used to 
contain processed or unprocessed materials intended for in corporating into animal feeding stuffs, fodder, etc. 
55 Importers may address applications either to the Department of Agricultural Regulatory Services in 
Harare or to the Chief Plant Protection Officer statione d in Mazoe.  According to the authorities, permits are 
issued without delay;  the applicable fees for indi vidual and for commercial importations are US$5.00 and 
US$10.00, respectively. 
56 The list of specified countries includes:  Botswana, Lesotho, Malawi, Mozambique, Namibia, the 
Republic of South Africa, and Swaziland. 
57 In addition, imports of wild and cage birds are subject to the presentation of a sworn statement by the 
exporter or his representative that the birds were not imported from North, Central or South America or the Middle East within six months prior to dispatch to Zimbabwe. WT/TPR/S/252 Trade Policy Review 
Page 42 
  
country.  A number of animals and infectious orga nisms may only be imported under the authority of 
a permit issued by the Director of Veterinary Serv ices;  the relevant list was not made available.  
66. Live animals entering into Zimbabwe are typical ly quarantined for 30 days;  domestic poultry 
are quarantined for a minimum of 12 weeks and inspected at least twice daily.58  Random samples 
from all shipments of imported animal products are tested at the Central Veterinary Laboratory to 
ascertain whether they are fit for human consumption before being released into the market;  tests are 
performed for salmonella and total bacterial count at a cost of US$10.00 and US$5.00, respectively.  
If the test results are favourable, a release certificate is issued for a fee of US$20.00 per consignment.  
67. All medicines sold in Zimbabwe must be re gistered, as stipulated under the Medicines and 
Allied Substances control Act a nd its Regulations.  Special exemptions exist for imports of 
unregistered medicines for individuals in terms of Section 75 of the Act.59  Importation of Dangerous 
Drugs (as defined and detailed in the Dangerous Drugs Act) requires a special licence.  An import 
licence is valid only for the importation of a particul ar consignment;  a separate licence is required in 
respect of each consignment.60  In ordinary circumstances, appli cations may only be made by a person 
or company resident in Zimbabwe; applications by third parties on behalf of the actual importer are 
unacceptable.  Copies of the import licences issued by th e Ministry of Health are sent directly to the 
Station Manager at the port of entry where the cons ignments are to be declared.  No consignment may 
be released until the export authorization issued in  the country of supply (which must accompany the 
consignment) has been compared with the import licence and the drugs themselves or related invoices, and the particulars verified.  Import an d export permits are also required for certain 
amphetamine-type drugs and specified drugs/hallu cinogenic drugs that are not included in the 
definition of dangerous drugs. 
68. No pesticide may be imported into Zimbabwe, for private use or for resale, unless it is 
registered with the Plant Protection Research Institu te.  All imports of unregistered pesticides are to 
be detained pending registration.  Non-register ed pesticides may be imported for experimental 
purposes only, with written authorization from the Regi stering Officer;  the relevant containers must 
bear the label "for experimental purposes only - not for sale".  Technical material (active ingredients) 
for use in pesticide formulations does not have to be registered and is not subject to control on 
importation. 
69. Imports and exports of fertilizers, farm feeds or remedies require a permit from the Ministry 
of Agriculture;  fertilizer exports are currently prohibited (section (3)(iii)). 
70. Specific warning notices must be displayed on ro ad tankers being used for the conveyance by 
road of hazardous and radioactive substances.  The consignor of a hazardous substance is required to 
give the operator of the road tanker the information necessary for him to prepare the panels and labels.  
At the point of entry into Zimbabwe, non-compliant ro ad tankers are to be referred to nearest office of 
the Environmental Management Agency (EMA), which will decide whether the truck should be 
allowed entry.  The EMA grants local transporte rs of hazardous substances annual licences, whilst 
foreign operators are licensed per consignment at time of entry. 
                                                      
58 Quarantine may be at the importer's property or a government-approved quarantine station. 
59 Request for authority to import an unregistered medicine.  Section 75 of the Medicines and Allied 
Substances Control Act (Chapter 15:03).  View ed at:  http://www.mcaz. co.zw/enforcement.html. 
60 An application fee of US$200 must be forwarded with the application. Zimbabwe WT/TPR/S/252 
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(x) Other measures 
71. Between 2004 and 2006, the Reserve Bank of Zimbabwe (RBZ) was engaged in arranging 
favourable lines of credit from regional financial in stitutions for imports of maize, wheat, fuel, 
fertilizers, agricultural equipment, agri-chemicals , and other goods of strategic importance to the 
economy.  Under these short-term trade finance progr ammes, the principal role of the RBZ was to 
secure and guarantee the availability of the fundi ng, while the product certification, licensing, 
transportation, storage, and inward distribution, was done by the relevant ministries, departments, and 
public and private enterprises.  According to the RBZ , the main eligibility criteria were the companies' 
performance against the industry as a whole and their credit worthiness. 
72. A refund of duty is granted on fuel and lubricati ng oils supplied to the military or air force of 
any government.  A responsible officer of the milita ry or air force must certify that the goods have 
been obtained solely for the use of that force.61  
73. Zimbabwe is not a party to any countertrade  and offsetting arrangements, or agreements 
limiting exports to Zimbabwe.  Zimbabwean reside nts are not permitted to enter into barter 
transactions of any kind without prior approval from the RBZ's exchange control department; 
applicants must provide proof that the transac tion would not prejudice Zimbabwe's interests. 
(3) MEASURES DIRECTLY AFFECTING EXPORTS  
(i) Procedures 
74. Exports are subject to customs clearance pro cedures similar to those applying to imports 
(section (2)(i)), requiring notably a bill of entry,  suppliers' invoices, consignment notes, and, where 
applicable, original export permits;  in addition, e xports are subject to exchange control clearance (see 
below).  The requisite documentation (in duplicate) may be submitted either by a registered exporter 
or by a clearing agent.  In general, no goods ma y be exported until all the documentation has been 
provided to a ZIMRA office;  however, the office may authorize delivery of the bill of entry or other customs documents within a sp ecified time-frame after the goods' exportation.  Any person who 
exports or assists in exporting any goods in contra vention of customs declaration provisions is liable 
to a fine not exceeding "level six" (currently equiva lent to US$300) and/or to imprisonment for up to 
six months. 
75. Until 18 March 2009, exports were subject to a foreign exchange surrender requirement.  
Specifically, 30% of export proceeds had to be converted into national currency at the (highly 
over-valued) official exchange rate upon receipt of  payment.  To sustain normal business operations, 
the remaining 70% could remain in a foreign currenc y for up to 30 days;  prior to July 2006, any 
balance that remained unused beyond the 30-day peri od also had to be converted into Zimbabwean 
dollars.
62  Following the adoption of the multi-curren cy system in 2009, the foreign exchange 
surrender requirement was abolished. 
76. For statistical purposes, exchange control clear ance is still required for the exportation of 
goods exceeding US$5,000;  this threshold is a pplied per exporter, for private and commercial 
exportations.  Merchandise exporters  must complete the relevant form, CD-1, in quadruplicate and 
present it to a bank for registration in the computerized export payments exchange system63;  three 
                                                      
61 Customs and Excise (General) Regulations, 2001 (Section 109). 
62 Reserve Bank of Zimbabwe (2006b). 
63 Earnings from the cross-border delivery of servi ces must also be declared and registered in the 
system.  Entry in the system represents a declaration of  the transaction by the exporter and an undertaking that WT/TPR/S/252 Trade Policy Review 
Page 44 
  
certified copies are returned to the exporter and, upon submission of the export documentation, are 
forwarded to Customs, to the Reserve Bank of Zimbabwe (RBZ), and the National Economic Conduct 
Inspectorate.  Cross-border business transactions exem pt from exchange control clearance obligations 
include:  re-exports of trade samples previously imported into Zimbabwe;  exports of goods after 
temporary import for exhibition or for similar purpos es;  temporary exports of commercial vehicles by 
transport companies for approved commercial trans port operators outside Zi mbabwe;  re-exports of 
animals previously imported into Zimbabwe for show, competition or breeding purposes;  and goods 
in transit.  In addition, certain firms have arra ngements with the RBZ for goods to be exported without 
the submission of CD-1 forms;  these firms have authority to export goods from outstations before 
clearance has been sent to the controlling port concerned.   
(ii) Export taxes, charges, and levies 
77. A ban on the export of unprocessed chrome ore has been in place, in principle, since 1996 
(Chapter IV(3));  it has been suspended on several oc casions, with an export tax being applied instead.  
Administered under the VAT Act, the tax was assessed at the rate of 15% of the f.o.b. customs value between January and August 2010;  thereafter, in response to widespread evasion, the tax rate was 
raised to 20% and the tax base was broadene d to include chrome ore and chrome fines
64, as well as 
semi-processed chrome c oncentrates.  In addition, export tax payments from input tax credit claims 
were foreclosed.65  At present, the export tax is not in fo rce, as the export ban was reinstated in 
April 2011. 
78. Besides posing considerable administration challenges, Zimbabwe's export regime for 
unprocessed chrome ore is likely to discourage invest ment in mining activities.  In light of local 
smelters' insufficient capacity to absorb domestic supplies, alternative policy instruments would seem 
more appropriate, such as better-targeted investment  incentives, and measures to improve the business 
environment so that proximity to the mines becomes a viable advantage. 
79. Exports of live wildlife specimens and fe rtile eggs are reportedly subject to an ad valorem  
levy of 20%, collected by the National Parks and W ild Life Management Authority.  The Authority 
administers the permit system governing the movement  of all wildlife within Zimbabwe and across its 
borders (sections (2)(vi) and (3)(iii)). 
(iii) Export controls and licensing 
80. Zimbabwe's non-automatic export licensing re gime covers a range  of strategic goods, 
including a number of agricultural commodities (T able III.8).  As in the case of import licensing 
(section (2)(vi)), an export licence or permit issued  under one law does not relieve the exporter of the 
responsibility for obtaining any other authorizations  required in terms of any law. Depending on the 
product, export licences or permits may be obtained fro m:  the Ministry of Industry and Commerce;  
the Ministry of Agriculture, Mechanisation and Irri gation Development;  the Ministry of Energy and 
Power Development; the Minerals Marketing Co rporation of Zimbabwe;  the Ministry of 
Environment and Natural Resources Management (Forestry Commission);  the Reserve Bank of 
                                                                                                                                                                     
payment will be received in the offici ally approved manner.  The State doe s not prescribe any commissions that 
banks may charge for registration of foreign trade transactions. 
64 According to the current definition, chrome ore and fines must not have been subjected to the 
following processes:  crushing, milling, and washing to remove the waste material;  and the smelting of the resulting chrome concentrate into pellet or ingot form.  Chrome concentrate that has undergone a smelting 
process, which results in pellets and ingot is not liable to the 20% export tax. 
65 ZIMRA online information.  Viewed at:  http ://www.zimra.co.zw/index.php?option=com_content& 
view=article&id=1209:implications-of-vat-on-supply-of-goods-services&catid=21:did-you-know&Itemid=91. Zimbabwe WT/TPR/S/252 
 Page 45 
 
 
Zimbabwe (gold, platinum and silver);  and the National Parks and Wild Life Management 
Authority.66 
81. In addition to standard licensing requirements, e xports by air of fruit, vegetables, and flowers 
may only be cleared upon production of a horticultural produce permit for export by air (granted by a 
Plant Inspector);  the goods must be dispatched fro m either Harare Airport or Bulawayo Airport, as 
the Ministry of Agriculture does not have depots at any other airports.  
Table III.8 
Goods subject to export controls and/or licensing 
In force Description Conditions/Requirements 
05.10.2010-
present Cotton (lint, meal, seed, and cake) Permit from the Ministry of Agriculture, Mechanization and 
Irrigation Development (Secretary's signature), conditional on:  
(1) Cotton Growers Association S upport letter;  (2) Agricultural 
Marketing Authority support letter (Livestock Meat Advisory Council support in the case of meal and cake) 
05.10.2010-
present Potatoes Permit from the Ministry of Agriculture, Mechanization and 
Irrigation Development (Secretary's signature), conditional on:  (1) Phytosanitary Certificate 
05.10.2010-
present Bees, beans, bean meal , tomatoes, seed for 
planting (cereals, trees, vegetables) Permit from the Ministry of Agriculture, Mechanization and 
Irrigation Development (Director's signature), conditional on:  (1) Phytosanitary Certificate 
05.10.2010-
present Baby corn, fruit (citrus and non-citrus), coffee 
beans, ground nuts, jugo beans, katambora grass, manure, tea, vegetables (dried and fresh), 
rice in the graina Permit from the Ministry of Agriculture, Mechanization and 
Irrigation Development (Chief Economist's signature), conditional 
on:  (1) Phytosanitary Certificate  
05.10.2010-
present Poultry products (1-day-old chicks, hatching 
eggs, ostrich meat, ostrich eggs), animal oils 
and fats (lard, tallow, dripping), animal semen and animal embryo, animal feed stuffs, beef, 
veal, butter, ghee, cream, cattle, meat, meat 
meal, blood meal, carcass meal, milk (pasteurized, sterilized, UHT, lacto , 
condensed), milk powder (skimmed and full 
cream) Permit from the Ministry of Agriculture, Mechanization and 
Irrigation Development (Director's signature), conditional on:  
(1) Veterinary Health Certificate 
05.10.2010-
present Hides and skins Permit from the Minist ry of Agriculture, Mechanization and 
Irrigation Development (Director's signature), conditional on:  
(1) Veterinary Health Certificate;   (2) Ministry of Industry and 
Commerce support letter 
05.10.2010-
present Bones, bone meal, cheese, ice cream, honey, 
mopane worms Permit from the Ministry of Agriculture, Mechanization and 
Irrigation Development (Chief Economist's signature), conditional 
on:  (1) Veterinary Health Certificate 
05.10.2010-
present Fish (dried and fresh) Permits to fish br eeders in export processing zones have been 
suspended  
2001-present Any equipment or machinery needed for local 
use on mining, farming, manufacturing or 
industrial locations Conditions set out in Statutory Instrument 362/2001  
.. Indigenous plantsb and wildlife (1) Permit from the Director of Parks and Wild Life Management 
Authority;  (2) Licence from the Ministry of Industry and 
Commerce (may not be required if the permit is endorsed to that 
effect and total export va lue does not exceed US$5,000) 
.. Precious metals, precious and semi-precious 
stones (rough and uncut), and minerals (ore, 
concentrate or other unmanufactured product 
thereof) produced in Zimbabwec May only be exported by the Mine rals Marketing Corporation of 
Zimbabwe or the Reserve Bank of Zimbabwe (gold and silver), 
unless the exporter has an exemption certificate to export on his 
behalf 
Table III.8 (cont'd)  
                                                      
66 The National Parks and Wild Life Management Authority administers a range of permits;  the 
applicable fees are set as a percentage  of the declared international market value and depend on the nature of the 
items exported:  trophies (2%);  live, sp ecially protected plants (10%);  fertile  eggs (10%);  live animals (10%);  
and farmed crocodile skins (1%).  A wild life seller' s licence, renewable annually, may also be required. WT/TPR/S/252 Trade Policy Review 
Page 46 
  
In force Description Conditions/Requirements 
.. Dangerous drugs Same as import control procedures (see Table III.6) 
.. National monuments and relics Permit from  the Director of Museums and Monuments 
.. Firearms and ammunition Commercial expor tation allowed only on presentation of a licence 
from the Ministry of Industry and Commerce, except for firearms 
manufactured in Zimbabwe 
 
a A phytosanitary certificate is only required for re-export of  rice in the grain if the shipment has undergone inspections. 
b The list of protected indigenous plants includes:  acrostichum aureum linn, cyrtanthus (all species), dierama (all species), 
adenium obesum (forsk), roem et schult.va r multiflorum(klotzsch), pachypodium saunde rsonii, borassus aethiopum mart., raphia 
farinifera (gaertn), hylander, hoodia lugard ii n.e.br, tavaresia barklyi, (thistleton- dyer) n.e.br, juniperus procera endi, als ophila 
(all species), euphorbia davyl n. e.br, duphorbia decidua bally &leach, euphorbia me moralis r.a. dyer, euphorbia wildii leach, 
bivinia jalbertii tul, aloe (all species and natural hybrids) , epiphytic and lithophytic orchidaceae (all species), adenia frui ticosa 
burtt davy, adenia spinosa burtt davy, platycerium alcicorne desv., and encephalartos (all species). 
c The list includes: gold, platinum and platinoid metals, silv er, diamonds (other than those suitable only for industrial purpo ses), 
emeralds, beryls, chrysoberyls of gem quality, rubies, sapphires, topaz, tourmalines, chrome, coal, cobalt, copper, minerals of  the 
lithium group, magnesite, mica, nickel, minerals of the tin group, and minerals of the tungsten group. 
Source : Ministry of Agriculture, Mechanization and Irrigation Deve lopment;  and information pr ovided by the authorities. 
82. Zimbabwe prohibits exports of counterfeit prod ucts, pirated goods, a nd goods bearing false 
indications of origin.  Other export prohibitions are maintained to ensure ad equate supply of the goods 
on the domestic market, or to stimulate local value added (Table III.9).   
Table III.9 
Export prohibitions and suspensions, 2005-11 
In force Description 
Export prohibitions  
2005-present Seeds 
2007-01.11.2009; 
01.01.2010-20.04.2011 Unprocessed chrome ores and fines  
.. Diamonds 
05.10.2010-present Maize and wheat seed, GMO-free maize grai n, mealie meal, rapoko (grain, meal and malt), sunflower 
05.10.2010-present Goats 
05.10.2010-presen t Fertilizer 
.. Scrap metal 
Export suspensions  
05.10.2010-present Wheat, sorghum (grain, meal and malt), mhunga (grain, meal and malt), soya (beans, meal and cake), 
corn soya blend, oil seeds (cak e, cake meal, offal and residues from oil seeds), flour, maize meal, 
barley, barley malt 
05.10.2010-present Table eggs, frozen chickens and their productsa  
.. Not available. 
a An export permit may only be given in special circumstan ces, after consultation with the Import and Export Committee. 
Source: WTO Secretariat, based on information provided by the Zimbabwean authorities. 
(iv) Export finance, insurance, and guarantees 
83. In 2006, the Reserve Bank of Zimbabwe (RBZ ) adopted a targeted export incentive scheme, 
which allowed qualifying exporters to access working capital support and capacity expansion 
financing at favourable interest rates, dependi ng on the amounts of foreign currency surrendered or 
promised to be surrendered at the official exchange rate.67  The scheme's primary focus was on the 
20% of exporters who collectively accounted for at least 80% of Zimbabwe's overall foreign exchange 
inflows, with selection based on actual export perf ormance.  Also eligible for the scheme were 
                                                      
67 Reserve Bank of Zimbabwe (2006a). Zimbabwe WT/TPR/S/252 
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exporters whose projected performance was deem ed acceptable and who undertook to surrender a 
percentage of their foreign exchange earnings  above the applicable statutory threshold.68  The amount 
of support was a function of two pa rameters:  50% of the export receipts declared over the preceding 
90 days or projected over the following 90 days , and 100% of the foreign currency committed for 
surrender over and above the statutory requirement.  Si nce the liberalization of the current account in 
2009, the RBZ monitors export-related payments , but does not operate any export promotion 
schemes.   
84. The state-owned Agribank offers a range of tr ade finance and risk mitigating services through 
lines of credit obtained from correspondent banks, inte rbank market borrowing, and customer deposits 
(Chapter IV(2)(ii)).  
(v) Export promotion and marketing assistance 
85. ZimTrade, a quasi-governmental association69, provides a range of international market 
expansion services to Zimbabwean entrepreneurs.  Its activities include the provision of trade and 
market prospect information70, practical training in various aspects of export marketing, and 
coordination and facilitation of Zimbabwean companie s' participation in international trade fairs.71  
ZimTrade also engages in the formulation of go vernment policy on bilateral and multilateral trade 
negotiations, and coordinates private-s ector input on trade policy matters.  
86. ZimTrade's activities are funded by a trade devel opment surcharge (0.1% of the f.o.b. value) 
on merchandise trade (section (2)(v)), as well as by grants.  Zimbabwe's economic downturn, coupled 
with a fragile recovery, has had an adverse effect  on funding, prompting ZimTrade to scale back its 
planned operations and equipment upgrades.  In 2010, its total income was US$517,489 (up from 
US$381,485 in 2009), with the surcharge accounting fo r 80% (76% in 2009);  it registered an annual 
operating loss of US$6,349 (down from US$127,634 in  2009).  At its current, reduced scale of 
operations, ZimTrade is involved in:  capacity bui lding of SMEs that are export ready but need 
assistance;  facilitation of participation in regiona l fairs;  and provision of  trade information.  
(vi) Other measures affecting exports 
87. Some of Zimbabwe's tax incentiv es are targeted at companies th at export a certain percentage 
of their output;  tax relief for expenditure on export-market developmen t is also available 
(section (4)(i)).  Between 2000 and 2 010, exporters with no  overdue export proceeds were eligible for 
a tax and duty exemption allowance (15% of the f.o. b. value of their exports) in the form of duty 
exemption certificates.  The certificates entitled their owne rs to vouchers that c ould be used in lieu of 
cash for the payment of tax obligations.  The vouc hers could be sold to third parties;  such 
transactions were exempt from income tax.  
                                                      
68 In general, eligibility was also conditional on a track record of exporting, dating back to at least 
one year. 
69 ZimTrade is governed by a nine-member board of directors;  five of the board members (including 
the chairman) are appointed by the Minister of Industry and Commerce, and the remaining four members are 
elected (on a rotational basis) by the priv ate sector at annual general meetings. 
70 Besides handling trade enquiries, ZimTrade publishes country and market briefs, and an annual 
exporter directory;  it also maintains databases on Zimbabwean companies, foreign buyers and suppliers, and 
trade statistics. 
71 ZimTrade sells certificate of origin forms (at US$4.00 for members and US$5.00 for non-members);  
the completed forms must be formally validated by ZIMRA. WT/TPR/S/252 Trade Policy Review 
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88. A duty drawback scheme has been in place since 1991.72  It provides for the refund of all 
duties, surcharges, and taxes paid on imported inputs used in the manufacturing or processing of goods for export (industrial drawback), and on unused  goods exported in the form in which they were 
imported (same-state drawback).  A drawback clai m must be submitted no later than 30 days from the 
date of export, which must have taken place within  two years from the date on which import duty was 
originally paid.  Exporters must provide a declaration of receipt, signed by the recipients mentioned in the claim, as evidence of export.  The amount of imported inputs embodied in an export shipment is 
calculated on the basis of production formulas provided by the firms claiming the drawback.  Exporters' participation in the drawback scheme ha s been significantly eroded during the years of 
hyperinflation.   
89. An inward processing rebate scheme has b een operational in Zimbabwe since 1992.
73  I t  
allows registered exporters to import or take out of a bonded warehouse, without payment of duty, 
goods destined for use in the processing of exports.74  Duties become payable if the finished goods 
have not been exported within one year of the inputs' release from Customs.  Participation in the 
scheme is conditional on the provision of a surety  for the amount of duties waived, as well as of 
separate, secured, storage facilities for imported inputs and finished export goods.  
90. Under Zimbabwe's defunct Export Processing Z ones Act, an export processing zone (EPZ) 
could take the form of a purpose-built industrial park or a demarcated area within an existing 
industrial complex. Companies approved under the EPZ regime had to export at least 80% of their 
production; both foreign and local investments were e ligible for the scheme.  As the Act was repealed 
with effect from 1 January 2007, only holders of an  investment licence issued prior to that date may 
continue to benefit from the relevant incentives;  a ll such licences will expire by 2017 at the latest.75  
The incentives include:  an income tax holiday for th e first five years of operation and a reduced rate 
of 15% thereafter;  exemption from capital gains tax,  resident and non-resident shareholders' tax, and 
non-residents' taxes on royalties a nd remittances;  rebate of duty on capital equipment imported for 
use in an EPZ;  refundable VAT on goods and services;  and exemption from income tax on fringe 
benefits earned by employees of licenced investor s operating in EPZs (up to 50% of the employee's 
taxable income).  According to the authorities, some 250 companies registered under the EPZ regime 
before it was discontinued;  many of these co mpanies were wound down dur ing the economic crisis. 
91. Tax incentives are also granted to  the developer of an industrial park, defined as any premises 
or area (other than an EPZ) approved by statutor y instrument, in which tw o or more persons, other 
than the industrial park developer, carry on the business of manufacturing or processing goods for 
export from Zimbabwe, or components of such goods.  Industrial park developers benefit from:  an 
income tax holiday for the first five years and a reduced rate of 10% thereafter;  exemption from resident and non-resident shareholders' tax, a nd non-residents' tax on fees;  and exemption from 
capital gains tax upon disposal of assets connected to the industrial park.  According to the authorities, 
only three developers have been eligible for the i ndustrial park incentive scheme since its inception in 
2002;  none has benefited from the incentives b ecause development activities have not been 
commercially viable in the unf avourable economic conditions. 
                                                      
72 Customs and Excise (Industrial Drawbacks) Regulations, Statutory Instrument 278A of 1991. 
73 Customs and Excise (Inward Processing) (Rebate) Regulations, Statutory Instrument 235 of 1992. 
74 Eligible processing activities include:  fitting or a ssembling;  industrial packing or re-packaging;  and 
mixing and blending. 
75 Licences issued under the Export Processing Zones Act continue to have ef fect, subject to formal 
application (within six months period from the date of repeal) to the newly established Zimbabwe Investment 
Authority (Chapter II) and satisfactory proof of complian ce with the terms of the previous licence;  EPZ licences 
were re-issued for up to ten years.. Zimbabwe WT/TPR/S/252 
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92. A rebate of duty is granted on goods re-importe d into Zimbabwe in the same condition as at 
the time of their exportation.  Articles exported fro m Zimbabwe for the purpose of being repaired are 
subject to duty on re-importation, unless the repair  was free of charge under a valid guarantee;  the 
applicable tariff heading is that of the re-imported article and the value for duty purposes is the cost of 
the repair plus insurance and freight.   
(4) MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Incentives and other assistance to business 
93. Besides various duty rebates and suspensions ( section (2)(v)), Zimbabwe offers a number of 
fiscal incentives in the form of tax holiday s, reduced tax rates, and capital allowances76 (Table III.10);  
certain farming inputs are also zero-rated for VAT purposes (section (2)(v)).  Tax incentives may be 
granted by sector, type of activity, or geographical location, as well as on company-specific basis.  The range of socio-economic objectives targeted by  these measures includes:  stimulating local or 
foreign investment in particular economic sectors or geographical areas;  promoting exports;  generating employment;  and supporting SMEs. 
Table III.10 
Tax incentives to business, July 2011 
Incentive Description Eligibility 
Income tax on businessesa   
Temporary reduction of the 
standard tax rate New manufacturing projects are taxed at the rate of 
10% (new infrastructure at 15%) for the first 5 years;  25% thereafter Only if located in  "growth point areas" 
Investment allowance (15% of 
cost) Granted over and above other allowances; any 
subsequent recovery on resale is not taxable as a recoupment Investments located in "growth point areas" 
and incurred for:  construction of, or additions 
or alterations to, commercial or industrial 
buildings or staff housing; new or unused articles, implements, machinery, and utensils 
(excluding motor vehicles intended or adapted 
for use on roads) in the year they are first 
brought into use 
Temporary tax holiday and 
reduction of the standard tax 
rate Tax exemption during the first 5 years;  applicable 
tax rates during the second and third five-year 
periods of 15% and 20%, respectively Contractors that enter into build, operate, and 
transfer arrangements with the State to 
construct infrastructure;  manufacturing or 
processing companies exporting at least 50% 
of their output; tourist facility operators in 
approved development zonesb 
Reduced tax rate (15%) Holders of a special mining lease are taxed at 15%.  
Expenses fully deductible from the taxable income 
include those incurred in: exploration and 
development activities, borrowing or financial accommodation, and royalty and commission 
payments in Zimbabwe;  50% of the cost of 
investments in buildings and equipment for training 
also deductible.  Carryover of losses is unrestricted 
in time Only income, expenditure and losses wholly 
and exclusively attributable to special mining lease operations   
Export development allowance A deduction fr om taxable income equal to twice the 
amount of any export-market development 
expenditure incurred by the taxpayer during the year of assessment  Expenditures must be of a non-capital nature 
and be incurred exclusively for seeking 
opportunities to export goods (not services) 
from Zimbabwe, or creating or increasing the 
demand for such exports 
Table III.10 (cont'd) 
                                                      
76 Capital allowances are available to all eligible taxpayers, regardless of the form of incorporation; a 
number of conditions apply, including limitations (set out in the Income Tax Act's Fourth Schedule) on the 
admissible cost of certain assets.  Tax recoupments norm ally arise on the resale of assets for which capital 
allowances were claimed.   WT/TPR/S/252 Trade Policy Review 
Page 50 
  
Incentive Description Eligibility 
Wear and tear allowance Statutory rate s include:  5% of the acquisition cost 
of industrial buildings, farm improvements, railway 
lines, staff housing (costing no more than a 
prescribed threshold), and tobacco barns;  and 2.5% 
of the acquisition cost of commercial buildings. Allowance amount for articles, implements, 
machinery, and utensils determined by the 
Commissioner of Taxes Only the assets (of the types listed in the 
previous column) that are owned and used by 
the taxpayer in the course of business 
Special initial allowancec May only be claimed in the tax year when the asset 
is first brought into use.  The applicable rate was 
50% of cost in 2001-09;  reduced to 25% for 2010-13.  Since January 2011, small or medium-
sized enterprises (as defined in the Charging Act) 
may claim the full cost of eligible assets over three years, with the following sequence of annual rates: 50%, 25% and 25%
 Capital expenditure on: the construction of (or 
additions or alterations to) farm improvements, 
industrial (but not commercial) buildings, railway lines, staff housing or tobacco barns; 
or the purchase of articles, implements, 
machinery or utensils. The assets must be used by the taxpayer for the purposes of his trade during the year of assessment 
Scrapping allowance Although there is no statutory definition of 
scrapping, an asset is typically scrapped if it is no 
longer useful for the taxpayer's continuing 
business.  Allowance amount determined by subtracting from the asset's original cost the sum of 
any previously claimed allowances in relation to it 
and any proceeds from its sale or other disposal  
Farmers' special deductions Farmers entitled to fully deduct expenditure 
incurred for:  stumping and clearing of lands, 
works for the prevention of soil erosion, sinking of 
boreholes and wells, aerial and geographical surveys, water conservation works, and fencing.  
Subsequent sale of the improvements (separately or 
as part of the entire farm) is not taxable as a 
recoupment Any person who derives income from pastoral, 
agricultural or other farming activities, 
including any person who derives income from 
the letting of a farm used for such purposes 
Restocking allowance A 50% deduction of the cost of any livestock 
purchased in that year of assessment in order to 
restock a herd depleted (forced disposal or deaths) by drought or epidemic disease Any farmer who raises or possesses livestock 
in a drought-stricken area or an epidemic area 
Value-added tax   
Deferred payment on 
importation Granted for a maximum period of 90 days E quipment and machinery to be used on a 
registered mining location; goods exclusively 
for manufacturing or industrial purposes; and, since 1 January 2011, medical equipment of a capital nature 
 a The standard rate of income tax on businesses for 2011 is 25%;  the amount due is paid in quarterly instalments. 
b Any operator of a tourist facility in a tourist development zone is also eligible for a refund of duty on capital goods impor ted for 
the purposes of or in connection with that  tourist facility on or after 1 January 2002;  a certificate from the Zimbabwe Touris m 
Authority must confirm eligibility. 
c Taxpayers may opt for the special initial allowance, as an alternative to the wear-and-tear allowance;  the two are 
mutually-exclusive.  Tax deferra l arising from the treatment of capital allowa nces claimed wholly in the year in which 
expenditure is incurred, results in perpetual carry forward of losses. 
Source : WTO Secretariat, based on informa tion provided by the authorities. 
94. In September 2006, the RBZ put in place a Z$16 trillion Small to Medium Enterprises 
Revolving Fund to support working capital and capita l expenditure requirements of SMEs.  The funds 
were made available for on-lending through several pr ivate and state-owned financial institutions at a 
ceiling annual interest rate of 70% (market interest  rates were above 500% at the time).  The lending 
institutions assumed primary responsibility for pro cessing and approving loan applications, as well as 
the full risk in the event of non-performance by  borrowers.  The facility's main focus was on 
stimulating primary production, va lue added, export-oriented projects, and projects with a quick 
turnaround;  non-productive activities, such as trad ing, were not prioritized.  Eligibility criteria Zimbabwe WT/TPR/S/252 
 Page 51 
 
 
included:  a maximum of 50 permanent employees;  no ownership link to a large corporation77;  and 
full compliance with local authority requirements.  Operations in the tourism sector, as well as those 
involving refinancing of existing de bt or acquisition of real estate or shares in companies/businesses, 
were not eligible.  Loans could not exceed Z$5 m illion per project, and maximum limits on maturity 
were set at 12 months (for working capital support)  or 24 months (for capital expenditure support).  
All loans under this facility were to be fully re paid on maturity or by 31 December 2008, whichever 
was earlier.  The facility was phased out in 2007 as the funds could not revolve in the hyperinflationary environment. 
95. More recently, the Government of Zimbab we has secured several lines of credit from 
cooperating financial institutions w ith a view to channelling liquidity into productive sectors of the 
economy.  In general, such loans are structur ed as revolving facilities for on-lending through 
designated financial institutions at concessional ra tes.  While each facility may serve particular 
objectives, priority is typically given to firms operating in the agri-business, manufacturing, and 
mining sectors, as well as projects aimed at prod uctivity improvements thr ough the acquisition of 
equipment or specific inputs.  Recent initiatives include the conclusion of a US$30 million facility 
agreement with the Industrial Development Corpora tion of South Africa and the Zimbabwe Economic 
Trade Revival Facility co-funded by the Government  of Zimbabwe and the Africa Export and Import 
Bank.   
96. In September 2010, total disbursements fro m operational credit facilities amounted to 
US$273.6 million, against commitments of US$735 million.  Some 51.5% of the funds disbursed 
were channelled to the agriculture sector, follo wed by financial services (22.3%), manufacturing 
7.5%, and mining 7.4%.   
97. Zimbabwe also encourages the mobilization of resources through money market instruments 
(e.g. bonds) for the purpose of financing the recovery  of the national economy;  such instruments may 
be granted prescribed asset, liquid asset, and/or tax exempt status by the Ministry of Finance.
78  These 
preferences have been granted to bonds aimed at  channelling liquidity into agricultural production, 
including livestock and tobacco. 
98. Government support to the agriculture sector is  channelled mainly through the Agricultural 
Bank of Zimbabwe (Agribank), a state-owned deposit- taking financial institution (Chapter IV(2)(ii)); 
in 2011, it received a capital injection of US$5 milli on from the Treasury to fund grain production.  
99. Wholly owned by the Government of Zimbabwe , the Industrial Devel opment Corporation of 
Zimbabwe Limited (IDCZ) is a na tional development finance institution operating on a financially 
self-sustaining basis.79  Its mission is to channel resources into, and plan and expedite Zimbabwe's 
industrial development;  it is manda ted to promote the establishmen t of new industrial undertakings 
and the development of existing ones, as well as to  facilitate cross-border investment and economic 
cooperation.  Through public-private  partnerships, the IDCZ has more  than 45 subsidiary companies 
                                                      
77 Where an SME has direct forward integration with a corporation for the supply of raw materials, 
funds may be made available to the SME with the corporation guaranteeing the loan.  The RBZ would also 
allow for a reduction in foreign exchange surrender levels for export-oriented corporations with linkages to SMEs (e.g. where a corporation outsour ces some of its activities to SMEs). 
78 Under Zimbabwe's financial regulations, the investment portfolios of certain classes of investors are 
required by law to contain a minimum percentage of prescr ibed assets.  At present, the requirement applies to:  
pension funds (10%), long-term insurance companies (7.5%), and short-term insurance companies (5%).  
Institutional investors are required to maintain  20% of their asset base in liquid assets. 
79 IDCZ operations are funded by loans from the domestic market, regional or international banks, and 
by capital contributions from joint-venture partners and shareholders. WT/TPR/S/252 Trade Policy Review 
Page 52 
  
in chemicals, clothing and textiles, mineral processing, motor and transport, light and heavy 
engineering, packaging, agri-processing, and electroni cs.  In general, the IDCZ co-invests in private 
enterprises without necessarily taking a majority stak e, as a way of enabling them to attract major 
overseas funding.  Traditionally, the capital contributi on by the IDCZ has been the main determinant 
of its shareholding; following the introduction of the Indigenization and Empow erment regulations, it 
may have to comply with the 51% threshold stipulat ed therein.  Currently, the IDCZ uses credit lines 
obtained from foreign institutions to exclusively fund its subsidiaries;  it also provides guarantees to 
its subsidiaries that borrow from commercial banks .  Since 2009, IDCZ has not received any funds 
from the Government;  one facility was recently established with a state contribution of US$20 
million. 
(ii) Government procurement 
100. The Procurement Act, enacted in 2001, applies to purchases by any ministry, department or 
other division of the Government;  statutory bodies80;  and any local authority or other person declared 
to be a procuring entity.  The Act also appli es to enterprises in whic h the Government has a 
controlling interest81, and to build-operate-transfer and build-o wn-operate-transfer contracts involving 
an item of infrastructure for a procuring entity.  The Act provides for the establishment of a State 
Procurement Board (SPB), composed of a chairman  and no fewer than seven, but no more than ten, 
other members appointed by the President for (renewable) terms of up to three years;  at least three members must be appointed from a list submitte d by recognized chambers of business, industry, 
commerce, and other professional bodies.  The SPB may conduct procurement (of a prescribed class) 
on behalf of all procuring entities, supervise procurement proceedings conducted by procuring 
entities, and initiate investigations into contraventio ns of the Act.  Due to resource constraints, the 
SPB does not have adequate capacity to ensure effi cient administration of pu blic tenders;  statistics 
collection is also problematic.  Moreover, its ea rly implementation experience has been troubled by 
the impact of hyperinflation, which caused frequent valuation adjustments. 
101. Open tendering (formal tender), including a possi ble invitation to prequalify, is the main 
mode of awarding contracts for the procurement of goods, construction work, and services.  Other 
methods include:  competitive quotations, informal  tenders, special formal tenders, and direct 
purchases
82;  the first two methods are conducted by the procurement entity's accounting officers, 
whereas all other methods fall within the remit of the SPB (Table III.11).  Publication requirements 
for the invitation to tender vary according to the tendering method;  national newspapers with wide 
circulation are the main means of advertising tender  opportunities.  In addition, all formal tenders 
must be advertised in the Government Gazette , and international tenders  are to be published in 
relevant trade journals a nd international newspapers of wide circulation.   
102. The price charged for tender solicitation and pr equalification documents must not exceed the 
cost of printing them and providing them to supplie rs.  Such costs are currently limited to no more 
than US$10.00 for ordinary tender documents and no more than US$80.00 for specialized and large 
tender documents (e.g. construction-rela ted drawings or bill of quantities). 
                                                      
80 A statutory body is defined as a corporate body established directly by or under any enactment for 
special purposes specified in that en actment, the membership of which consists wholly or mainly of persons 
appointed by the President, a Vice- President, a Minister, any other statutory body or by a Commission 
established by the Constitution. 
81 The guiding principle is that the Procurement Act would apply to any entity that is government 
owned or operates with funds collected from the public under statutes set out by the Government. 
82 Prior authorization from the SPB is required for recourse to any of thes e alternative procurement 
methods;  the request must be properly justified. Zimbabwe WT/TPR/S/252 
 Page 53 
 
 
Table III.11 
Methods of inviting tenders, bids or proposals 
Method (administrator) Description Me thod of invitation Threshold (US$) 
Competitive quotations 
(accounting officers) Small value purchases that are 
generally repetitive or require routine 
replacement (i.e. stationery);  at least 
3 quotations must be submitted Direct invitations by telephone, fax, 
letter or e-mail Up to 10,000 
Informal tenders 
(accounting officers) Purchases of any type whose value is 
within the stipulated thresholds Notice in newspapers with circulation 
in the area in which the procuring 
entity has jurisdiction or carries on 
business;  the tender may be limited to 
suppliers from that area Above 10,000 
Up to 50,000 
Formal tenders (SPB) High value purchases open to large 
suppliers (both national and foreign) Notice in Government Gazette  and 
national newspapers with wide 
circulation Above 50,000 
Special formal tenders 
(SPB) Urgent purchases where time 
constraints bar the usual 30-day period 
for responses to the tendering notice. There is no prescribed minimum time-
frame for response; reasons for 
shortlisting the eligible bidders must be 
provided to the SPB Direct invitations by letter, fax or e-
mail or through notice in newspapers 
for prequalified suppliers to respond No limit 
Direct purchases (SPB) Purchases done in line with security, 
economic or proprietary considerations 
(e.g. only one possible supplier)  No limit 
Source : Information provided by the Zimbabwean authorities. 
103. Although a possibility is envisaged in the Proc urement Act, the text of the Procurement 
Regulations does not contain rules restricting part icipation in procurement proceedings to persons 
who are citizens of or ordinarily resident in Zimbab we.  In the evaluation of bids that are comparable 
on quality terms, the procuring entity may give pref erence (10% of the contract price) to local 
suppliers83 over foreign ones or to "previously econo mically disadvantaged" suppliers over other 
classes of suppliers.  Appeals against decisions of th e SPB or any procuring entity are to be heard by 
the Administrative Court84;  a written notice of appeal must be lodged with the Registrar of the 
Administrative Court and the principal officer of the SPB within 20 days of receipt of the decision.  Procurement proceedings or the operation of the procurement contract are to be suspended for 
seven days, from the date on which the appeal w as lodged, unless the Administrative Court instructs 
otherwise or the procuring entity concerned certif ies in writing that urgent public interest 
considerations require the procurement to proceed. 
104. Intentional misrepresentation of material facts in a tender, bid or proposal, as well as any 
collusive initiatives for the purpose of bid rigging,  are liable to a fine not exceeding "level eight" 
(currently equivalent to US$500) and/or impris onment for up to two years.  The authorities 
acknowledge the need to review penalty provisi ons, as well as to strengthen the administrative 
capacity of key procurement entities and raise public awareness.  
(iii) State-trading, state-owned companies, and privatization 
105. In its latest submission to the WTO, dated 25 June 2008, Zimbabwe affirmed that it does not 
have any state-trading enterprises, as per the wo rking definition adopted for notification purposes.
85  
                                                      
83 To be eligible for the preference , local suppliers must have an oper ating office or headquarters in 
Zimbabwe and their downstream operations and social benefits must be channelled locally. 
84 While the Administrative Court is the default institution to hear procurement disputes, the Act does 
not preclude aggrieved parties from approaching the High Court or the Supreme Court. 
85 WTO document G/STR/N/12/ZWE, 25 June 2008. WT/TPR/S/252 Trade Policy Review 
Page 54 
  
However, the Minerals Marketing Corporation of Zimbabwe, which is wholly owned by the State, 
acts as the exclusive agent for th e marketing and sale of all minerals produced in Zimbabwe 
(Chapter IV(3)(i)). 
106. The potential contribution of state-owned enterpri ses (Table AIII.4) to GDP is estimated at 
about 40%, although this figure is approximate and ma y be somewhat out-of-date.  By and large, their 
performance deteriorated during Zimbabwe's prol onged economic downturn a nd certain enterprises 
have required foreign exchange support from the Rese rve Bank of Zimbabwe to continue operating;  
some US$2.1 billion were allocated to ten st ate-owned enterprises and parastatals between 
1 December 2003 and 31 March 2009 (Table III.12).86  While the adoption of a multi-currency regime 
and the elimination of certain controls on prices a nd charges (section (iv) below) have facilitated the 
task of restoring their viability, state-owned companies still face capitalization, debt, management, and human resources challenges.  As at June 2010, a number of these enterprises were still loss-
making, with revenues considerably below operating costs.
87 
Table III.12 
Foreign currency availed to state-owned companies and parastatals, 2003-09 
(US$ million) 
 2003a 2004 2005 2006 2007 2008 2009b Total 
NOCZIM 0 155.6 256.6 135.4 275.6 170.1 0 993.4 
ZESA Holdings (PVT) Ltd 0 92.4 69.6 84.3 48.4 14.5 2 311.2 
GMB 0.8 3.7 132 114.2 115.9 147.4 0 514 
AIR Zimbabwe 0 2.1 21.5 57 47.7 75.6 5.1 209 
Tel-One 0 0.8 1 1.6 3.8 1.6 0 8.8 
Net-One 0 0 0 0 0.3 1.1 0 1.4 
ZINWA 0 0.2 0 3.7 4 6.5 0 14.4 
ZIMSEC 0 0 0.1 0.6 0 0 0 0.7 
ZBH 0 0 0.3 0 0 0 0 0.3 
ZUPCO 0 0 11.2 0 0 0 0 11.2 
Total 0.8 254.8 492.2 396.8 495.7 416.8 7.1 2,064.20 
a For the month of December. 
b January through March. 
Source : Reserve Bank of Zimbabwe.  Viewed at: http: //www.rbz.co.zw/pdfs/governor_motor_vehicles.pdf. 
107. In response to their poor performance, the Government of Zimbabwe adopted procedures for 
commercialization, privatization, and restructuri ng of state-owned enterprises and parastatals on a 
case-by-case basis.88  The institutional framewo rk comprises an inter-mini sterial committee, chaired 
by the Minister of Finance, which is to review individual strategy proposals prepared by technical 
committees in each line ministry;  the State Enterp rises Restructuring Agency, under the purview of 
the Ministry of State Enterprises and Parastatals,  may provide advice to the technical committees.  
The implementation of restructuring strategies that  involve transfers from the national budget would 
require Cabinet approval.  Prior ity areas in negotiations with poten tial strategic or joint-venture 
partners include:  equity share price;  terms of pa yment;  strategic partner's future role and vision for 
the enterprise's future development;  management of  the enterprise;  level of technology transfer;  
                                                      
86 Reserve Bank of Zimbabwe (2009b). 
87 The list of companies performing "dismally" incl udes:  Air Zimbabwe, the Grain Marketing Board, 
the Cold Storage Company Ltd, Zimbabwe Iron and St eel Company, the National Oil Company of Zimbabwe 
(NOCZIM), Agribank, the National Railways of Zimbab we, and ZESA Holdings (PVT) Ltd (Ministry of 
Finance, 2011). 
88 Cabinet Circular 23, 13 July 2009. Zimbabwe WT/TPR/S/252 
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funding arrangements for rehabilitation and expans ion post-restructuring;  and staff welfare, 
retraining, and development.  
108. In November 2010, the Zimbabwe Iron and St eel Company (ZISCO) became the first of 
ten pilot enterprises to embark on restructuring through privatization89;  about two thirds of its shares 
were disposed to a foreign investor, who also assumed the company's debt and undertook to enhance 
its operations.  The Government of Zimbabwe intends to replicate this model, to the extent possible, 
in the restructuring of the remaining nine compan ies.  A corporate governance manual for state-owned 
enterprises is also being drafted, based on regional and international best practices and the provisions 
of the Public Finance Act.  
(iv) Competition policy and price controls 
109. Originally enacted in 1996, Zimbabwe's Comp etition Act was amended in 2001 to strengthen 
control and enforcement, and establish a Compe tition and Tariff Commission with a broader remit.90  
The Act provides for a rule-of-reason approach (i.e. effects-based assessment) in the consideration of 
mergers and acquisitions, and "restri ctive practices". In addition, a per se  prohibition is stipulated for 
some "unfair business practices"; these are deemed illeg al and become void without the need to show 
their adverse effect on competition in Zimbabwe.  The legislation also assigns the Commission a role 
in international trade matters through provisions fo r investigation into any tariff charges that may 
either be detrimental to local industry or need  revision for the purpose of providing assistance or 
protection to local industry, as well as into "unfair trade practices" (Table III.13).  Furthermore, the 
Commission is mandated to monitor prices, costs, and profits in any industry or business, as directed 
by the Minister of Industry and International Trade.  
110. The Commission may initiate investigations on the basis of complaints from any person91 or 
undertake ex officio  assessments of economic competition in a particular sector.  It conducts the 
fact-finding process and has first-instance decision-ma king powers in the areas of merger control, and 
restrictive and unfair business practices.  For such matters, its orders may be lodged with the High 
Court of Zimbabwe or any magistra tes' court and, upon registration, will have the effect of a civil 
judgment of the court concerned;  appeals are to be heard by the Administrative Court, which must 
comprise a President and two qualified assessors.  On the other hand, the Commission's price 
monitoring and international trade functions are purely investigative, and its role is limited to making 
recommendations to the Minister of Industry and International Trade;  determinations on the 
imposition and/or revision of tariffs  and price controls are the ultimate responsibility of the Minister 
of Finance.92  The Commission has not established a lenien cy or immunity programme for the 
detection of cartels.   
                                                      
89 The other state-owned enterprises identified for the first phase of the restructuring programme 
include:  Agribank, Air Zimbabwe, th e Grain Marketing Board, the Cold  Storage Company Ltd, Net-One, 
Tel-One, the National Railways of Zimbabwe, the Nati onal Oil Company of Zimbabwe, and ZESA Holdings 
(including its subsidiary, the Zimbabwe Power Company). 
90 The Competition and Tariff Commission is a product of the merger of two statutory bodies, the 
Industry and Trade Competition Commission and the Tariff Commission, which had been operational since 1998 under the Competition Act and the Tariff Commission Act, respectively. 
91 Including any individual, company, sector regulator, government ministry or department. 
92 The Competition and Tariff Commission may challenge, ex post , price controls deemed to have 
anti-competitive effects in Zimbabwe. WT/TPR/S/252 Trade Policy Review 
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Table III.13 
Definitions of anti-competitive cond uct and conditions for its admissibility 
Conduct description Public interest considerations 
Restrictive practice:  (a) any agreement, arrangement or 
understanding, whether enforceable or not;  or (b) any business 
practice or method of trading;  or (c) any deliberate act or omission, whether acting independe ntly or in concert with any 
other person;  or (d) any situation arising out of the activities of 
any person or class of persons; which restricts competition directly or indirectly to a material degree, in that it has or is likely to have 
any one or more of the following effects:  (i) restricting the 
production or distribution of any commodity or service;  (ii) 
limiting the facilities available fo r the production or distribution of 
any commodity or service;  (iii) enhancing or maintaining the price 
of any commodity or service;  (iv) preventing the production or distribution of any commodity or service by the most efficient or 
economical means;  (v) preventing or retarding the development or 
introduction of technical improvements in regard to any commodity or service;  (vi) preven ting or restricting the entry into 
any market of persons producing or distributing any commodity or 
service;  (vii) preventing or retarding the expansion of the existing market for any commodity or serv ice or the development of new 
markets therefor;  (viii) lim iting the commodity or service 
available due to tied or conditional selling (a) reasonably necessary to protect consumers or users of the 
commodity or service, or the ge neral public, against injury or 
harm;  (b) its termination would de ny to consumers or users of the 
commodity or service other specifi c and substantial benefits or 
advantages enjoyed or likely to be enjoyed by them, whether by 
virtue of the practice itself or by virtue of any arrangement or operation resulting therefrom;  (c) its termination would be likely 
to have a serious and persisten tly adverse effect on the general 
level of unemployment in any area in which a substantial proportion of the business, trade or industry to which the practice 
relates is situated;  (d) its term ination would be likely to cause a 
substantial reduction in the volume or earnings of any export business or trade of Zimbabwe;  (e) the practice is reasonably 
required to maintain an authorized  practice or any other restrictive 
practice that is not contrary to th e public interest;  (f) the practice 
does not directly or indirectly re strict or discourage competition to 
a material degree in any business, trade or industry and is not 
likely to do so 
Unfair business practice: misleading advertising; false bargains;  
distribution of commodities or services above advertised price;  
undue refusal to distribute commodities or services; bid-rigging;  
collusive arrangements between co mpetitors; predatory pricing;  
resale price maintenance; and exclusive dealing Absolutely contrary to the public interest (unlawful trade practice) 
Merger: the direct or indirect acquisition or establishment of a 
controlling interest by one or more persons in the whole or part of 
the business of a competitor, supp lier, customer or other person 
whether that controlling interest is achieved as a result of:  (a) the 
purchase or lease of the shares or assets of a competitor, supplier, 
customer or other person;  (b) the amalgamation or combination 
with a competitor, supplier, custom er or other person;  or (c) any 
other means Resulting or likely to result in a monopoly situation that is not 
contrary to the public interest due to:  (a) a more efficient use of 
resources in any business, trade or industry than would be the case 
if the monopoly situation did not exist;  (b) its necessity for the production, supply or distribution of any commodity or service in Zimbabwe (balancing on the one hand the resources necessary to 
produce, supply or distribute the commodity or service and, on the 
other hand, the size of the Zimbab wean market for that commodity 
or service);  (c) the fact that its termination or prevention would 
deny to consumers or users of any commodity or service, other 
specific and substantial benefits or advantages enjoyed or likely to be enjoyed by them, whether by virtue of the monopoly situation 
itself or by virtue of any arrangement or operation resulting 
therefrom;  (d) its reasonable necess ity to enable the parties to it to 
negotiate fair terms for the distribu tion of a commodity or service;  
(e) a serious and persistently adve rse effect of its termination or 
prevention on the general level of  unemployment in any area in 
which a substantial proportion of the business, trade or industry to 
which it relates is situated;  or (f) a substantial reduction in the 
volume or earnings of any export business or trade of Zimbabwe that its termination or prevention would be likely to cause 
Unfair trade practice: (a) the dumping of imported commodities; 
(b) the granting of a bounty or subsidy with respect to imported 
commodities; (c) any other practice in relation to the importation of commodities and services or the sale of imported commodities 
and services, declared by the Minister of Industry and Commerce 
to be an unfair trade practice At the discretion of the Minister of Industry and 
Commerce/Minister of Finance 
Source:  Competition Act, 2001. 
111. The Minister of Industry and International Trade may give the Commission general policy 
directions, as may be considered "necessary in the national interest";  any exchanges on such 
directions and the Commission's opinion (within 30 da ys) must be done in writing, and be included in 
the Commission's annual report to Parliament.  The Commission has not received any such directions 
since its establishment. Zimbabwe WT/TPR/S/252 
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112. All mergers (except joint ventures in the form  of green-field enterprises) with combined 
annual turnover or assets in Zimbabwe at or above the prescribed threshold (Z$500 million) must be notified to the Commission for examination with in 30 days of the conclusion of the merger 
agreement, or the acquisition by any one of the par ties to that merger of a controlling interest in 
another.  Since the threshold is still defined in Zi mbabwean dollars, all mergers are currently subject 
to notification;  a Statutory Instrument revi sing the threshold to US$1.2 million is pending 
publication.  In addition, the current merger notif ication fee (calculated as 0.5% of the merging 
parties' combined annual turnover or combined value of assets in Zimb abwe) often results in 
abnormally high levies;  a proposal for notifica tion fee ceilings (a minimum of US$10,000 and a 
maximum of US$50,000) is also pending publication as a Statutory Instrument.  In conditional merger 
approvals, the Commission has insisted on a range of  commitments, including the disposal of plant 
and equipment to indigenous investors, the loca lization or continuation of economic activities in 
Zimbabwe, the acquisition of inputs from Zimbabw ean suppliers, and justification of any future 
increase of ex-factory prices above their pre-merger  levels (as long as the merged entity is in a 
monopoly position).  Any commitments are the resu lt of negotiations between the Commission and 
the merging parties.  The Competition Act's merger-control provisions take precedence over any 
powers of a sectoral regulator in merger assessment and approval
93;  regulators that have such 
functions are required to apply to the Commission for final clearance of the merger.  
113. Zimbabwe's competition regime follows a "total  welfare standard";  consumer and industry 
welfare carry equal weight in the Commission's ass essments.  In determining whether a particular 
conduct is contrary to the public interest, the Comm ission takes into consideration various factors, 
including its impact on the general level of employment or on export earnings.  
114. Zimbabwe's competition regime follows the e ffects doctrine common to many jurisdictions;  
export-oriented anti-competitive practices (includi ng cartels) that have no effect on the domestic 
market are excluded from the application of the Co mpetition Act.  Other exemptions include:  the 
activities of trade unions and employee representatives, as far as they are aimed at protecting their 
members' interests by negotiating and concludi ng agreements/arrangement s with employers or 
representatives of employers;  and intellectual property rights94, unless such a right is used for the 
purpose of enhancing or maintaining prices or as an y other restrictive practice.  The manufacture and 
distribution of commodities by the State are within the scope of the Act, except as regards criminal 
liability;  non-commercial activities of an execu tive nature are excluded from the Commission's 
authority .  
115. Within the Competition and Tariff Commission, investigations are carried out by a directorate 
comprising full-time professionals with qualificatio ns in economics, law, accounts, and business 
administration.  Penalties for infringement of the Competition Act include fines and prison sentences 
(Table III.14).  Adjudication is the responsibility of  a board composed of no fewer than five and no 
more than ten commissioners.  Commissioners are a ppointed on a part-time basis by the President in 
consultation with the Minister of Industry and Co mmerce, for (renewable) three-year terms;  the 
Competition Act provides, to the extent possible, fo r broad representation of all interested groups and 
classes of persons, including consumers.   
                                                      
93 Mergers in the financial industry require the appr oval of the Minister of Finance (Section 25 (4) of 
the Banking Act). 
94 Intellectual property rights that are generally exempt include those acquired under the Plant Breeders 
Rights Act, the Copyright Act, the Industrial Designs Act, the Patents Act, and the Trade Marks Act. WT/TPR/S/252 Trade Policy Review 
Page 58 
  
Table III.14 
Penalties for selected infringements of the Competition Act 
Infringement Penalty 
Providing false information, hindering or preventing entry and 
inspection A fine up to level 6 and/or im prisonment for up to 6 months 
Non-compliance with a prohibition of certain acts pending the 
Commission's investigation;  or a fa lse or misleading statement made in 
an application seeking the Commission' s authorization of an agreement, 
arrangement, practice or conduct A fine up to level 7 and/or imprisonment for up to 1 year 
Non-compliance with any provisi on of an order made by the 
Commission A fine up to level 9 and/or imprisonment for up to 2 years 
Unfair business practice A fine up to level 12 and/or imprisonment for up to 2 years 
(individuals);  a fine up to level 14 (all other offenders) 
 
Source:  Competition Act, 2001. 
116. Since its effective entry into operation in November 1998, the Commission has handled over 
800 competition cases in virtually all areas of economic activity in Zimbabwe.  However, the economic crisis has posed particular enforcemen t challenges;  the only fine imposed between 2005 
and 2010 has been eroded by the hyperinflationary e nvironment.  During that period, the Commission 
handled some 170 cases (Table III.15), i nvestigating competition concerns in, inter alia :  
telecommunications, retail trade, printing, mini ng, medical and ambulance services, and power and 
energy.  
Table III.15 
Enforcement of the Competition Act, 2005-10 
Case category 2005 2006 2007 2008 2009 2010 Total 
Mergers and acquisitions 0 25 24 16 5 9 79 
Restrictive practices 14 19 17 14 7 9 80 
Competition studies 0 5 4 2 0 0 11 
Total 14 49 45 32 12 18 170 
Source : Information provided by the Zimbabwean authorities. 
117. The Competition and Tariff Commission's operations are funded primarily from the 
government budget.  Other sources of funding include:  the trade development surcharge 
(section (2)(v)), merger notification fees, advisory opinions, reports on its investigations and studies, 
and investment interest.  In 2007, government a ppropriations accounted for 58.45% of its funding, 
with the remainder from:  mergers fees/penalties (22.29%), trade development surcharge (11.81%), 
investment interest (0.19%), and other sources (7.26%).  
118. Zimbabwe's Competition and Tariff Commission is a founding member of COMESA's 
Regional Competition Commission and the Southe rn and Eastern African Competition Forum 
(SEACF), both of which foster cooperation among nationa l competition authorities in the region.  It is 
also an active member of the Competition and C onsumer Policy and Law Committee established in 
the SADC to encouraging soft convergence of laws and policies;  it has benefited from the 
Committee's capacity-building programmes.  Although no bilateral cooperation ag reements have been 
formally concluded, effective working arrangement s exist with the competition authorities of South 
Africa, Zambia, Kenya, Namibia, and Tanzania.  
119. A range of goods and services supplied in Zimbabwe  have been subject to price controls since 
November 2002.  In addition, a ban was imposed  in June 2007 on indexing wages, rents, service 
charges, prices, and school fees to the consumer price index (CPI), the official and unofficial Zimbabwe WT/TPR/S/252 
 Page 59 
 
 
exchange rates, or VAT changes;  the ban remained in force until March 2009.95  Under the ban, all 
sections of collective bargaining agreements, leases, and contracts stipulating a link to increases of the 
CPI, exchange rate, or VAT were declared void.   The National Incomes and Pricing Commission was 
mandated to approve all proposed fees, tariffs, and ch arges levied by government departments;  state 
universities and non-government schools;  stat utory bodies, including statutory professional 
associations;  and companies where the State is a ma jority or sole shareholder.  The Commission was 
also empowered to set standards, after consultation, for all pay, fee, and price increases in the private 
sector.96  The Commission took charge of all related instances where ministerial approval was 
required under other Acts;  its powers to seek info rmation or inspect were extended to all its new 
functions.  
120. Most of the "extraordinary price contro ls" were eliminated upon adoption of the 
multi-currency system in 2009.  A number of products and services are still s ubject to price controls 
by government departments, sectoral regulators or professional associations (Table III.16);  no 
detailed information was made availa ble on the nature of the controls. 
Table III.16 
Price controls, 2005-10 
Product/Service Description 
Health services provided by government 
health care centers Maximum fees regulated by the Ministry of Health 
Telecommunications and bandwidth tariffs Regulated and appr oved by the Postal and Regulatory Authority of Zimbabwe 
(POTRAZ) 
Electricity charges  Regulated and approved by Zi mbabwe Electricity Regulatory Commission (ZERC) 
Legal fees Law Society of Zimbabwe fixed mi nimum tariffs to be levied by law firms 
Petroleum products Prices regulated by the Mi nistry of Energy and Power Development 
Services provided by local authorities Rates re gulated by the Ministry of Local Government 
Water Prices regulated by the Mi nistry of Water and sanitation 
Wheat and maize Prices regulated by the Ministry of Agriculture 
Government schools Fees regulated by the Mini stry of Education, Sports and Culture  
Source : Information provided by the Zimbabwean authorities. 
(v) Intellectual property rights 
121. Efforts to bring Zimbabwe's intellectual propert y regime into closer conformity with the 
provisions of the TRIPS Agreement date from 1998.   While most legislative amendments were 
enacted and implemented in 2001-04 (Table A III.5), the Trade Marks Amendment Act and the 
Intellectual Property Tribunal Act entered into fo rce with a nine-year lag, in September 2010.  
Zimbabwe's intellectual property legislation was re viewed by the TRIPS Council at a time when some 
key amendments were not yet put into operation97;  no notifications have been submitted to the WTO 
since then. 
122. The Intellectual Property Tribunal (IPT), which replaced the Patents Tribunal in September 
2010, has jurisdiction to hear contentious matters under the:  Copyright and Neighbouring Rights Act, 
                                                      
95 In addition, a total ban was imposed on any increas e that would see a pay package, rent fee or price 
rising to or exceeding the level it would have reached if it had been indexed to the CPI or an exchange rate.  
Pan-African News Wire online information.  Viewed at:  http://panafricannews.blogspot.com/2007/08/ zimbabwe-enacts-new-laws-on-prices-and.html. 
96 Non-compliance with the ban on indexing or the standards set by the Commission would result in a 
level eight (US$500) fine and/or imprisonment for up to six months. 
97 WTO documents IP/Q/ZWE/1, IP/Q2/ZWE/1, IP/Q3/ZWE/1, and IP/Q4/ZWE/1, 2 June 2005. WT/TPR/S/252 Trade Policy Review 
Page 60 
  
Geographical Indications Act, Industrial Designs Act,  Integrated Circuit Layout Designs Act, Patent 
Act, and Trade Marks Act.  The IPT is vested with  all the powers that the High Court may exercise in 
a civil case.  While criminal matters must be tried in the High Court or a magistrates' court, litigants 
may refer civil disputes to any court of their choi ce, including the IPT.  The IPT's decisions may be 
appealed at the Supreme Court within three months of pronouncement. 
123. Zimbabwe is among the 17 members of the African Regional Intellectual Property 
Organization (ARIPO), whose mission is to provide a shared pool of expertise in intellectual property 
matters and to foster harmonization of the relevant national frameworks.98  ARIPO operates a system 
for centralized filing and substantive examinatio n of patent, industrial design, and trade mark 
applications;  however, the granting of protectio n is governed by each member state's national 
legislation.99  
124. While an ARIPO patent application may o ffer a convenient and cost-effective way of 
obtaining patent protection in a large number of countries100, the enforceability and effects of ARIPO 
trade mark registrations vary acro ss member states due to different or non-existent provisions in their 
national laws.101  Protection of ARIPO trade mark registrations in Zimbabwe has been affected by the 
delayed entry into force of the Trade Marks Ame ndment Act, which gave them national effect;  
although earlier trade mark registrations by AR IPO are recognized, no damages may be sought for 
infringements that occurred before the Act entered into force. 
125. According to the authorities, at end-June 2011 protected intellectual property rights in 
Zimbabwe comprised 87,000 registered trade-mark s, 5,000 patents, and 1,170 industrial designs. 
126. Counterfeit goods and goods bearing forged trade marks are liable to seizure and forfeiture by 
ZIMRA.  Any person who imports such prohibited g oods will be liable to a fine not exceeding level 
12 (currently equivalent to US$2,000) or three tim es the duty paid value of the goods concerned, 
whichever is greater, and/or imprisonment  for a period not exceeding five years.   
127. A patented product that has been put on the market in another country by a patentee, may be 
imported into Zimbabwe without the consent of the pa tentee, if the cost of importing such a product is 
less than the cost of purchasing it from the patentee.102  The proprietor or registered user of a 
registered trade mark may submit a written request to the Commissioner of Customs and Excise for an import prohibition on any goods bearing an identi cal or deceivingly similar mark.  The import 
prohibition period may not extend beyond five years or  the trade mark registration period, whichever 
is shorter.  In the case of copyrights and regist ered industrial designs, the owner may, by way of 
written request to the Commissioner, prevent the im portation or exportation of infringing articles for 
up to ten working days;  if the owner has instituted IPT or court proceedings on the matter within that 
period, the import or export prohibition will remain  in force until the tribunal or court concerned 
                                                      
98 The other ARIPO members are:  Botswana, The Ga mbia, Ghana, Kenya, Lesotho, Liberia, Malawi, 
Mozambique, Namibia, Sierra Leone, Somalia, Sudan, Swaziland, Tanzania, Uganda, and Zambia;  Angola and 
Madagascar have applied for membership. 
99 When filing for protection, applicants may use e ither the national or the ARIPO channel.  In the 
process of substantive examination, ARIPO must ensure compliance with national legislation.  No provisions on 
parallel imports, including through compulsory licensing or government use, exist at ARIPO level. 
100 The cost of an application for patent protection in all ARIPO states does not exceed US$3,000;  
costs are reduced as processing, publication, granting and renewals are all managed by the ARIPO Office. 
101 At the national level, some legal frameworks have yet to provide for registration of service marks. 
Moreover, very few countries (Botswana, Lesotho, Libe ria, and Swaziland) have adopted a multi-class system 
in which a single application may cover more than one class of goods and/or services, as set out in the 
International Classification of Goods and Services for the Registration of Marks. 
102 Patents Act (Section 24A). Zimbabwe WT/TPR/S/252 
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orders otherwise.  The admissibility of all appli cations for detention in Customs may be conditional 
on the provision of a financial guarantee to secure the fulfilment of any liability and the payment of any expenses the detention may give rise to;  the guarantee's form and amount are at the Commissioner's discretion.  
128. If it is deemed that the contravention has not  occurred either intentionally or due to 
negligence, the Commissioner may authorize the release of trade-mark-infringing goods for 
immediate re-exportation, or on the condition that  improper marks will be either removed from the 
goods or modified so as to render them unobjectiona ble.  While no such authorizations may be 
granted for goods in contravention of copyrights an d registered industrial designs, their importation or 
exportation may not trigger any penalty, other than forfeiture of the goods.  
129. Zimbabwe's Patents Act contains provisions for compulsory licensing in case of abuse or 
insufficient use of patent rights;  such licences are primarily intended to satisfy the needs of the 
domestic market.  Upon receipt of satisfactory eviden ce that an applicant has been unable to obtain a 
voluntary licence on reasonable terms
103 and that, as a result, the reasonable requirements of the 
public with respect to the invention in question cannot  be satisfied, the registrar of the Patent Office 
may order the granting of a licence and may prescr ibe the terms thereof, including a condition 
precluding the licensee from importing into Zimbabwe any patented articles.104  In addition, any state 
department and any person authorized in writing by the Minister of Justice, Legal and Parliamentary 
Affairs may use patented inventions for the service of the State. 
 
 
                                                      
103 No such evidence is necessary if the patentee' s conduct has been determined, in a judicial or 
administrative process, to be anti-competitive;  any compulsory licence granted may be free of restrictions aimed at confining the making, use or sale of the invention to the domestic market. 
104 Requirements for notification of interested parties and publication in the Patent and Trade Marks 
Journal , and provisions for submission of objections are stipulated in the application procedure.  The application 
for a compulsory licence must be made within six m onths from the initial request for a voluntary licence.