Drawback of duty

A duty drawback is a refund of Customs duties, taxes and fees paid on imported items that are subsequently exported. It is granted on imported goods not used in Zimbabwe and which are exported within two years from the date on which duty was paid thereon.

Types of duty drawback

1. Same State Drawback

This is when the goods are imported into Zimbabwe and subsequently exported without being used in Zimbabwe.

Example:

A company imports goods and pays all duties due on importation then later realises that the goods are faulty and decide to export them unused. In this case, the company can apply for a drawback of the duty paid on importation.

2. Industrial Drawback

Applies to raw materials imported into Zimbabwe for processing and then the finished products are exported. The materials used in manufacturing must be accounted for to the satisfaction of the Commissioner of the Zimbabwe Revenue Authority (ZIMRA).

Example:

Company XYZ imports rolls of fabrics and uses it to make dresses and subsequently exports them. A drawback of duty can be applied for, provided the company can account for the fabric imported for use in the manufacture of the dresses.

Conditions for drawback of duty

• The goods shall not be used in Zimbabwe.

• Exportation of goods shall be done within two (2) years from the date on which duty was paid. • The goods shall only be dispatched from a place at which there is a customs house or customs post.

The exporter, before the goods are exported, shall tender to an officer at the place from which the goods are to be dispatched an application for drawback on form No. 44, together with the original invoices relative to the goods, in addition to the bill of entry or other documents to be presented prior to exportation.

My Taxes, My Duties: Building my Zimbabwe!! Disclaimer

This article was compiled by the Zimbabwe Revenue Authority for information purposes only. ZIMRA shall not accept responsibility for loss or damage arising from use of material in this article and no liability will attach to the Zimbabwe Revenue Authority.

To contact ZIMRA:

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Email: pr@zimra.co.zw/webmaster@zimra.co.zw

Tel: 0242 –758891/5; 790813; 790814; 781345; 751624;

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