Zero-rating comes with stringent conditions

A WARNING to shippers in Safcor Panalpina’s “Freight News” is that they may only zero-rate exports under certain specific conditions. “Exports by sea and air can only be zero-rated by the person who is responsible for delivery of the goods into the sea or airport from which the goods will be despatched,” said the newsletter. But, for transport by road to neighbouring states, the conditions are more stringent. These include the requirement that the seller appoint the cartage contractor, pay for the carriage and retain proof of payment for the transport. “For all exports that are zero-rated the exporter must retain certain evidentiary documents for a minimum period of five-years.”