Zim import restrictions – clear as mud

There are still a host of
unclear rulings in the latest
trade restrictive measures
implemented by Zimbabwe,
and doubts about whether
they comply with regional
and global trade protocols,
according to JB Cronjé, a
researcher at the Trade Law
Centre (tralac).
This after the imposition
by Zimbabwe of the Statutory
Instrument 64 of 2016,
which restricted the import
of a wide range of products –
basically those that could be
produced in that country.
But, according to a press
statement issued by the
Zimbabwean minister of
trade, the ministry will also
“allow importation of goods
which can be produced
locally, when local production
cannot meet the national
demand in an endeavour to
avoid shortages on the local
market”.
During this period, he
added, “industries are
expected to re-tool and
bring in new technology
and address production
inefficiencies”.
However, Cronje pointed
out that it was not clear
whether there were in fact
domestic industries that
produced the products on
that rather extensive
published list.
In any
case, he
added, nonautomatic
import licences
were quantitative restrictions
that limited the quantity
of products that could be
imported into a country.
And the World Trade
Organisation (WTO) has an
import licensing agreement
which requires Zimbabwe
to notify the WTO of any
quantitative restriction it
maintains. “This has not yet
happened,” said Cronje.
Also, the adoption of
quantitative measures to
protect local producers
is not included in the list
of exceptions in Article 9
of the Southern African
Development Community
(SADC) Protocol on Trade.
What makes the system
even more peculiar, according
to Cronje, is that individuals
doing their shopping across
border in SA have been
partially exempted from the
licensing requirements.
The large numbers of
informal cross-border
traders and shoppers that
pass through the border post
will from now on be granted
a monthly allowance on
each listed product. These
are “to a maximum of ” 1kg
coffee creamers (Cremora),
cereals (2kg), hair products
(6 packets of a weight not
exceeding 1.5kg), washing
powder (4kg), mayonnaise or
salad creams (not exceeding
2 litres) and bar soap (box
of 24). Other products
individuals are allowed to
import without a licence
include
potato crisps (one pack of 12
of 125g each), peanut butter
(2kg), jams (2kg), canned
fruits and vegetables (2kg),
yoghurt (1kg), cheese (1kg),
juice blend (4 litres), camphor
creams, white petroleum
jellies (180ml) as well as shoe
polish (one pack of 12 of 50ml
or 40g each).
But, said Cronje, it
was unclear just how
the Zimbabwean border
authorities would monitor
the cross-border movement
of individuals and their
groceries.
While these exceptions will
be good news for SA retail
businesses located close to the
Zimbabwean border, he also
stressed that the licensing
system negatively affected SA
commercial exporters.
“About a third of
Zimbabwe’s imports come
from SA,” he added. “This
represents about 2.5%
of SA’s total exports. The
lack of transparency in the
evaluation and issuing of
import licences makes it
impossible to determine
whether all applicants are
treated equally.”