Custom Bonds
In case of an extension of payment of customs duty granted by the Zimbabwe Revenue Authority (herein after referred to as Zimra) , this guarantees that the principal will pay the customs duty on imported merchandise when the duty falls due. As a fall back, it is necessary to ask for collateral in the form of securities and or personal counter indemnities from third parties.
Types of custom bonds
Warehouse Bonds
The Warehouse Bond enables the company to import finished products into the bonded warehouse without paying duty and VAT. The duty and VAT will only be payable upon sale of the products. Should client sell products from the bonded warehouse and fail to pay relevant duty ZIMRA will call on the bond underwriter to pay an amount equivalent to duty and VAT on the goods sold.
Removal and Transit Bonds (RIT)
The purpose of the Removal and Transit Bond is to enable client to handle consignments passing through Zimbabwe without paying duty. An RIT Bond is put in place to ensure that goods get to their destination without duty being paid whilst in transit. The consignments are required to get out of the country within 3 days failing which client will be asked to pay duty
Commercial Vehicles Guarantees (CVG)/Temporary Importation Bonds
The purpose of the guarantee is that principal will be making an undertaking that vehicles coming into the country to ferry consignments for various customers will go back to their countries of origin. Should the vehicles fail to go back, Zimra will ask client to pay duty on the vehicles failing which the bond will be called up.
Inward Processing Rebate Bonds
To avoid huge cash outlays as payment for duty on imported raw materials for use in manufacturing goods for export, at least 80% of the raw materials are put in bonded warehouse, approved by Zimra. As security for the duty at stake, in case the imported raw materials are not used to produce goods for export, an inward processing rebate bond (IPR) is lodged with Zimra. In the event that the finished products are sold on the local market and client fails to pay the duty ZIMRA will call on the bond underwriter to pay amount equivalent to duty on the imported raw materials used.
Agents Bonds
An Agents Bond is required by Customs from forwarding and clearing companies who handle goods on behalf of other companies for the due observation of the regulatory authority’s regulations and payment.