The nightmare of transporter in transit through Zimbabwe

Zimbabwe by its location is central to the linkage between the north and the south corridor. The goods entering Southern Africa through both Beira and Durban ports enroute to Zambia, Malawi and Democratic republic of Congo by default has to pass through Zimbabwe if the shortest distance has to be considered. This has resulted in brisk business by mainly customs brokers referred to as clearing agents. Zimbabwe is a host to the transport and forwarding business with some companies operating globally and regionally. There has been growth of the sector especially post 2008 with the introduction of multicurrency after the collapse of the local currency due to hyperinflation and industrial production capacity decline. There are basically three categories of goods to be cleared at any particular moment and these are imports, exports and Removal in Transit referred to as (RIT). The RIT business has enabled local businesses to thrive as decline in imports and exports have been experienced lately. This has generated foreign currency for the country through the clearing agents and transporters who are getting international contracts across the region.

The movement of goods through another country is referred to as Removals in Transit (RITs) and a registered clearing agent has to register for a separate Removal in Transit bond with customs apart from the one for exports and imports. Goods   passing through a transit country are not subjected to payment of customs duties and taxes and a guarantee equivalent to the duties and taxes at stake are secured through the clearing agent RIT bond. According to research done, in the past years the business has been viable but with the collapse of road infrastructure and continuous delays at port of entry coupled with increased number of fees from other government authorities the Beitbridge- Chirundu RITs has been adversely affected.

Major transporters have cited costs of doing business in Zimbabwe as the major pull out factor followed by dilapidated road infrastructure. They are opting to use Botswana as an alternative route although it is longer than through Zimbabwe. They would rather endure the long distance and wait to be transported through the ferryboat on the Zambezi River into Zambia as they wait for the finishing of the Kazungula bridge. Zimbabwe is not part of the Kazungula bridge project and once finished it will see a drastic fall in the RIT business in Zimbabwe.

There is need for customs to reduce the time taken at all borders by these RITs to ensure that complains against border delays are a thing of the past. Zimbabwe Revenue Authority (ZIMRA), the custodian of facilitation of trade and travel, needs a robust shift on its approach to RITs clearances and enhance mechanisms which ensures that these trucks do not spend days if no weeks at the borders.   In its endeavour to safeguard national revenue the authority should remain guided by the international best practices under the World Trade Organisation Trade Facilitation Agreement Article 11 which assures RITs freedom of passage. The delays have been resulting in demurrages being paid by clearing agents on behalf of then clients and transporters loosing contracts. It is important for the Customs Authorities especially at Beitbridge to ensure that they prioritise the efficiency in relation to RIT clearance. There has been improvement on those consignments which are being electronically sealed, however more efforts still need to be done.

Another complain has been on the delay of assessment of registered bills of entries in the ASYCUDA system which is eve taking more than 48 hours as trucks wait for authority to proceed to the Zimbabwean border. They are kept at the exporting country border side as any truck which crosses without authority is fined equivalent to USD 800.00. The adopted Preclearance concept is failing to address the problem as Bills of Entry remain stuck in customs houses even when trucks arrive.  These trucks endure delays at exiting ports as they wait for customs clearance which is taking more than four days to complete. This has been evidenced by excessive truck ques which have become the norm at borders. This result in expiry of their customs documentation such as the Temporary Import Permits   (TIPs) valid for three days as per customs regulations, which is a serious offence under customs regulations and attract a heavy penalty. It has been cited that when the TIPs expire they will need waiver from the Zimra management which is not always at the borders and result in costs to thje transporters and clearing agents.

 Other problems cited by drivers were other fees paid to the government regulatory authorities. The complaint has been that the fees are too high as compared to other countries in the region for instance any foreign registered truck passing through Zimbabwe has to pay USD 100. 00 for Vehicle Inspection Department.  Couples with other fees which include port health, EMA, Agricultures, Biosafety Zimbabwe has become expensive for use on RIT business. There is need for responsible authorities to come together and address these issues to ensure businesses benefit from the RIT business such as truck stops 

A South African based clearing agent at Beitbridge who spoke on condition of anonymity highlighted that they have lost over a thousand truck loads per month to the Botswana-South African border due to Zimbabwe challenges being experienced by transporters. If this is summed up with other agents, it shows that Zimbabwe has lost quite a fortune as these companies pay in foreign currency for any services rendered

By Chiukira Levious

Customs and trade consultant

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