Screws tightened on cheap imports

28 Feb, 2016 - 00:02 0 Views
Screws tightened on cheap imports Bureau Veritas will be inspecting goods before there are imported into the country - file picture

The Sunday Mail

 

THE country will be turning the screws on sub-standard imports beginning Tuesday as all importers are now expected to comply to stringent requirements that guarantee good quality imports.

According to a circular from the Ministry of Industry and Commerce, all imports valued at more than US$1 000 are now obliged to have a Consignment Based Conformity Assessment (CBCA) certificate.

The certificate will be issued by global testing, inspections and certification concern Bureau Veritas prior to shipment from the exporting country.

Without the certificate – modelled to World Trade Organisation specifications – imported goods will be denied entry into Zimbabwe.

lmports that require certification include engineering equipment, food, petroleum, fuel, building materials, automotive and transportation, packaging products, toys, timber, body and healthcare products, electronics, among many other goods.

Individuals and companies that comply “will benefit from fast track procedures” that cut bureaucracy and red tape synonymous with customs clearance, the circular says.

“The Consignment Based Conformity Assessment programme is intended to substantially reduce hazardous and sub-standard imported products and improve customs duty collection,” the Ministry said in a recent notice to importers and clearing agents.

Last year, Government engaged Bureau Veritas, a French standards company, to help with import quality control.

Bureau Veritas is running similar programmes in 29 other countries in Africa, Asia, Eastern Europe and the Middle East.

Until recently, there hasn’t been stringent conditions tied to the quality of imports, a situation that naturally promoted an influx of cheap poor quality goods that have choked domestic production and widened the national current account deficit.

According to the Zimbabwe Statistics Agency, the country exported goods worth US$2 billion during the first 10 months of 2015, compared to imports of US$4,6 billion during the same period – thereby yielding a US$2,6 billion gap.

The deficit was projected to top US$3 billion by year-end.

The Confederation of Zimbabwe Industries (CZI), an industrial lobby group, says cheap imports are unfair competition.

The body has repeatedly lobbied Government to toughen import laws in order to assist local manufacturers, whose operating capacity has declined to 34 percent in 2015 from 57 percent in 2010.

CZI vice president, Mr Sifelani Jabangwe said the CBCA programme will create a level playing field for local manufacturers who have been subjected to unfair competition from imports.

He said: “The CBCA programme will ensure that we compare apples with apples. There is nothing wrong with local production, our consumption has not gone down but the problem is that imports have been cheaper in terms of both the price and quality.

“This means any product that is bad for the European market will be bad for the Zimbabwean market too. They (low quality goods) are not going to be dumped here,” he declared.

Mr Jabangwe cited a list of poor quality products that have landed on the Zimbabwean market undetected, subjecting the market to health risks.

The circular notes that: “Upon satisfactory verification, a CBCA certificate will be issued for the consignment. This certificate shall be presented for customs clearance on arrival in Zimbabwe.

“The business community is urged to inform their suppliers of the implementation of the CBCA programme. The suppliers should then contact Bureau Veritas, the conformity assessment company appointed for the verification in exporting regions.”

However, Shipping and Forwarding Agents Association of Zimbabwe chief executive, Mr Joseph Musariri expressed concern. He is of the view that the system might breed delays in the transportation of goods.

He said there is need for clarity on the implementation of the programme, for instance on duty calculation.

“We are not sure yet if the inspection fee will be added onto duty or not and we want clarity on that.

“We are also not sure if Bureau Veritas is available everywhere.

“Volumes may also decline because of exporters who do not want to comply,” said Mr Musariri.

 

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