Trade agreements

Zimbabwe has trade agreements with several countries in which all qualifying goods enter the territory of one another at preferential duty rates. What do the agreements entail?

THE trade agreements will result in the goods being accorded preferential treatment on entry into the importing country. Preferential treatment means that products originating from a member country will attract less or no customs duties in the importing country. What types of goods qualify?

The following are some of the goods that qualify for preferential treatment: ◆ Wholly grown products, for instance agricultural products Animals originating in a member state Mineral products Manufactured products meeting set out qualifying criteria, among other goods in the territory of either contracting party. How does one qualify to export goods under these agreements?

In Zimbabwe, exporters intending to export goods in terms of these agreements must apply for registration at the nearest Zimra Office.

Once it is ascertained that the goods qualify as originating from Zimbabwe, the application is processed and the exporter is allocated a reference number which must be quoted on every Certificate of Origin upon exporting products to those specified countries.

What documents are required by the importing country for the goods to enjoy preferential treatment? ◆ Certificate of Origin, duly stamped and signed by a competent authority e.g. Customs. This serves as confirmation that the goods being exported are originating from a member state. ◆ Commercial invoice for the goods ◆ Consignment notes ◆ Freight and insurance statements ◆ Licences and permits, where

required ◆ Customs Declaration Form No 1 ◆ Packing list where necessary ◆ Bill of Entry What are the benefits of exporting goods under these agreements?

◆ Since trade agreements remove duties and other barriers between nations, this results in goods entering in the territory of either contracting party at reduced and competitive prices ◆ Goods become competitive in the

foreign markets ◆ Enhances trade and investments thereby boosting economic activity ◆ Stimulate the economy by facilitating mutual benefit Enhances co-operation between contractual parties Zimbabwe is part to the following trade agreements: ◆ Comesa Trade Protocol for exports to all Comesa member states Sadc Trade Protocol for exports to all Sadc member states Zimbabwe/Malawi Trade Agreement for exports to Malawi Zimbabwe/Botswana Customs Agreement for exports to Botswana Zimbabwe/Namibia Trade Agreement for exports to Namibia Zimbabwe/ Mozambique Trade Agreement for exports to Mozambique ◆ The Generalised System of Preferences for exports to European Union countries 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.

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