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by ZIMRA

In terms of the in terms of Section 120 of the Customs and Excise Act (Chapter 23:02), as read with Statutory Instrument 257 of 2003 and Statutory Instrument of 101 of 2011, a physically handicapped person can import one passenger or one light commercial motor vehicle without payment of the applicable Customs Duty and Surtax.

The motor vehicle must have been manufactured or assembled NOT more than 10 years preceding the date of its importation and is granted once in a period of five years.

What does suspension of duty mean?

Suspension of duty is the waiver of Customs Duty and Surtax. Value Added Tax (VAT) is payable at a rate of 15 percent based on the value of the motor vehicle plus freight, insurance and any other charges incurred before delivery of the vehicle to Zimbabwe.

Requirements

• Current letter from a specialist doctor stating the following:
• The nature and degree of disability
• Giving indications of the type of vehicle one could drive under the circumstances
• The extent of disability (whether it is temporary or permanent)
• An invoice/proforma invoice/document for the recommended motor vehicle which should include the following information:
• Engine number
• Chassis number
• Type of transmission
• Year of manufacture
• Application letter
• Proof of source of funds
• Copy of identification particulars
• Proof of current residence

Which persons qualify for the privilege?

A physically handicapped person:

• Who is blind – if the Zimra commissioner general is satisfied that the vehicle is to be used for the benefit of that person; or
• With a physical disability that is not temporary – if the vehicle has automatic transmission and additionally, or alternatively, special controls that render it suitable for use by that person, and the Commissioner General is satisfied that the vehicle is to be used by that person; or
• With any physical disability that impedes his/her personal mobility and is not temporary, whether or not the vehicle is of a description referred to above as long as the Commissioner General is satisfied that the vehicle is to be used by that person.

What type of vehicle qualifies?

• Customs Duty (including Surtax) is wholly suspended on the following vehicles:
• Passenger type motor vehicles classified under heading 87.03; or
• Light commercial motor vehicles, classified under any of the following tariff codes:
• 8704.2130 (a diesel engine vehicle of a payload not exceeding 800kg).8704.2140 (a diesel engine vehicle of a payload of more than 800kgs but not exceeding 1400kg),
• 8704.3130 (a petrol engine vehicle of a payload not exceeding 800kg
• 8704.3140 (a petrol engine vehicle of a payload of more than 800kg but not exceeding 1400kg)

Please note that double cab motor vehicles are not permissible under this suspension of duty.

What is the procedure for claiming this privilege?

• One should apply in writing to the Zimra commissioner general for a possible grant of a suspension of duty for the physically handicapped, stating the disability and justifying the need for that particular vehicle
• Pro-forma invoices for the vehicle intended for importation should be attached and such invoices should clearly state year of manufacture, engine and chassis numbers and the cost of the vehicle
• The doctor`s letter stating the nature and degree of disability should be attached
• Application can be posted or submitted to any nearest Zimra office
• Applicant will then be invited to an interview at Zimra offices to ascertain the correctness of the application and other submitted documents
• If the application is approved, the applicant will be issued with a letter granting the suspension of Customs Duty and Surtax only and such letter should be attached when the vehicle is finally imported
• If suspension of duty is not granted, the applicant should pay duty and VAT when the vehicle is finally imported
• What are the disposal conditions for the vehicle?
• A motor vehicle on which duty has been suspended shall not be disposed of by the importer within five years of its importation unless if the Commissioner General has given written permission for its disposal, and the suspended duty has been paid.

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. Tune in to Radio Zimbabwe every Wednesday from 1900-2000 hours for a discussion on Tax and Customs matters.