The International Cross Border Traders Association President Denis Juru has said Zimbabwe Revenue Authority (Zimra) will reduce the duration of the temporary importation permit for motor vehicles from 12 to three months with effect from January next.
The Temporary Import Permits (TIP) is a permit given to foreign registered vehicles upon entry in Zimbabwe. The change was noted in the 2017 National Budget and is likely to affect diasporans who will drive into the country during the holidays.
“Foreign registered private motor vehicles temporarily imported into the country by visitors and residents living in other countries may be issued with a Temporary Import Permit by Zimra upon entry,” Juru said.
A communique from Zimra states that in order to curtail abuse of vehicles imported under Temporary Import Privileges, it is proposed to reduce the maximum period under which the Commissioner may permit the temporary importation of motor vehicles by visitors and residents living abroad from the current 12 to three months, with effect from 1 January 2017.
The document also enlists that bearers of the TIP are advised to leave the country on or before the expiry of the TIP.
“Whereas beneficiaries of Temporary Import Permits should abide by set conditions, which include, an undertaking to remove the vehicle at the expiry of the Temporary Import Permit and non-disposal of the vehicle within the country, among others, this, however, has not been adhered to,” reads the document.
The document highlights that some vehicles, that come into the country supposedly for a temporary period end up being disposed into the local market, therefore affecting the local vehicle market.
Consequently, a significant number of motor vehicles under Temporary Import Permits have not been acquitted, and some end up being disposed onto the local market, resulting in loss of revenue to the fiscus,” reads the document.
Commenting on the issue, the Confederation of Zimbabwean Industries (CZI) president, Mr Busisa Moyo, said restricting temporary car importation was important because it enhances the local car market.
He said reducing the TIP period was also aimed at reducing crimes committed using foreign registered vehicles.
The TIP’s will only be issued to passenger type motor vehicles commonly known as saloon cars or sedans and station wagons and goods carrying motor vehicles with a gross vehicle weight not exceeding five tonnes such as pick-ups and double cabs, passenger carrying motor vehicles with a seating capacity not exceeding 15 people including the driver and also to trailers and caravans pulled by the above mentioned vehicles.
Vehicles with seating capacity exceeding 15 people would require a Commercial Temporary Import Permit (CTIP) covered by a Commercial Vehicle Guarantee obtainable from a Zimbabwean registered clearing agent with the relevant bond.
According to Zimra, no visitor shall sell, offer, or display for sale, lease, hire, lend, pledge or dispose the vehicle in any other manner to any resident in Zimbabwe without prior written authority of the Commissioner-General of Zimra and payment of full duty applicable at the time the vehicle was imported into Zimbabwe.
In the event of extended stay of the visitor, the TIP holder should approach the nearest Zimra office for extension of the TIP upon payment of carbon tax and insurance.