Chinese dribble govt on blanket imports
BLANKET smuggling is on the rise, with Chinese importers listing blankets as quilting kits, to pay a lower duty at the country’s ports of entry. According to documents provided to NewsDay from a source yesterday, a number of Chinese companies have resorted to this modus operandi to pay a lower duty, as it has a different tax code. Statutory Instrument 19 of 2016 removed blankets from the open import licence and requires importers to have permits. As such, these come with a tax code requiring importers to pay 40% of value imported, $2,50 per kilogramme and 15% value-added tax (VAT), which are measures to deter blanket imports. Since the goods are listed as quilting kits, Chinese blanket importers pay 10% of the value imported, $1,45 per kilogramme and VAT of 10%.
Due to this loophole, Chinese blanket importers are bringing these blankets in 44-foot trailers, which should cost a duty of about $70 000 considering weight, but are paying between $4 000 and $6 000 instead.
SA to bring best goods to ZITF
THE Department of Trade and Industry on Thursday said it will lead a business delegation of South African companies to the 2017 Zimbabwe International Trade Fair (ZITF). The six-day trade fair opens on Tuesday. South Africa’s participation at the ZITF follows on the heels of its participation in 2016, when 431 trade leads were secured by exhibitors, with 21 Zimbabwean agents appointed. Export sales of R10 million was recorded through participation. Trade and Industry Minister Dr Rob Davies said the ZITF is one of the largest intra-regional trade fair shows in sub-Saharan Africa and that it provides the largest and most convenient trade hub in the region. In addition, an investment seminar will be held on the margins of the ZITF.
SI 64 gives Zimnat reason to smile
INSURER Zimnat Group — 40 percent of which was recently bought by South African financial group Sanlam — wants to underwrite more business from companies that are beginning to recover because of Government’s 2016 import controls. Zimnat CEO Mr Mustafa Sachak told The Sunday Mail Business at the official launch of new entity on March 29 that the business would actively pursue new opportunities provided by such policy interventions. “We, as Zimnat, will follow where opportunities are and, as we speak, there are plenty of business opportunities in the manufacturing sector which is starting to improve since the inception of SI 64 (Statutory Instrument 64 0f 2016) by Government. “Since then, there has been some activity in industry . . . Zimnat would like to take that opportunity of underwriting insurance for those companies that have resumed operations in industries.