Zambia Import Tax

Zambia, a landlocked country in Southern Africa, has a developing economy with a significant reliance on imports for goods ranging from machinery and vehicles to food products and consumer goods. As part of its trade strategy, Zambia has established a structured import tariff system to regulate the flow of goods into the country, protect local industries, and generate revenue for the government. These tariffs are an essential tool in the Zambian customs framework and are used to control trade flows, incentivize local production, and align with international agreements.

Customs Tariff Structure of Zambia

Zambia’s customs tariff system is governed by the Zambia Revenue Authority (ZRA), which enforces the rules and regulations associated with the importation of goods. The customs duties levied on imported goods are usually calculated based on the value of the goods (ad valorem tariffs), although in some cases, specific duties based on weight, volume, or quantity may apply. Zambia’s tariff structure is in line with the Common Market for Eastern and Southern Africa (COMESA) trade agreements and the World Trade Organization (WTO) commitments, allowing for preferential tariffs for goods imported from certain regions and countries.

The tariff system is structured to protect local industries while fostering the diversification of Zambia’s economy. Since Zambia is a member of regional trade agreements, some products may benefit from reduced tariffs depending on the trade relationship between Zambia and the exporting country.

Harmonized System (HS) Code Classification

Zambia adheres to the international Harmonized System (HS) Code for the classification of goods, a globally recognized system for categorizing products in customs. The HS Code allows ZRA and other stakeholders to determine the applicable tariffs on imports, ensuring that duties are applied consistently across different product categories. The HS Code consists of over 1,200 six-digit product categories that are grouped into 21 sections, each representing different types of goods, such as agricultural products, machinery, chemicals, textiles, and vehicles.

General Import Duties

General import duties in Zambia are applied based on the product category. These duties are designed to promote local industry, protect small-scale businesses, and generate revenue for the government. Below is an overview of the key product categories and the respective general tariff rates:

• Agricultural Products: 10% – 40%
  • Agricultural products such as fruits, vegetables, grains, meat, and dairy products are typically subject to moderate to high import duties. Zambia’s agricultural sector is underdeveloped compared to its potential, and higher tariffs help protect local farmers from foreign competition.
• Machinery and Industrial Equipment: 0% – 15%
  • Machinery and industrial equipment, including construction machinery, agricultural tools, and manufacturing equipment, are typically subject to low tariffs. Since Zambia is looking to enhance its industrial and infrastructure capacity, there are efforts to encourage the importation of these products at lower rates.
• Automobiles and Vehicles: 15% – 25%
  • Imported vehicles, including passenger cars, trucks, and motorcycles, are subject to relatively higher import duties. The government imposes higher tariffs on luxury vehicles but offers reduced tariffs for vehicles manufactured in COMESA member states.
• Textiles, Clothing, and Footwear: 10% – 30%
  • Imported textiles and clothing products face moderate to high tariffs, designed to protect Zambia’s nascent textile and garment industry. Similarly, imported footwear, particularly non-ASEAN items, is subject to duties in this range.
• Chemicals and Pharmaceuticals: 5% – 20%
  • Certain chemicals, particularly those used in agriculture and manufacturing, and pharmaceuticals have relatively low duties, though some specialty chemicals may face higher tariffs depending on their use.
• Electronics and Household Appliances: 5% – 25%
  • Imported electronics and household appliances such as televisions, mobile phones, and refrigerators may incur moderate tariffs. Zambia’s electronics industry is in the early stages of development, and duties on foreign electronics help stimulate local production.

Special Import Duties for Certain Products from Special Countries

Zambia’s trade policy offers preferential tariffs for certain countries under regional trade agreements, with the intention of fostering stronger trade relationships within the COMESA region and the Southern African Development Community (SADC).

• COMESA (Common Market for Eastern and Southern Africa):
  • Zambia’s membership in COMESA allows for preferential tariffs on goods imported from other COMESA countries, such as Kenya, Zimbabwe, and Ethiopia. COMESA members typically enjoy lower import duties or duty exemptions for certain categories of goods, particularly agricultural products, machinery, and raw materials.
• SADC (Southern African Development Community):
  • As part of its membership in SADC, Zambia benefits from reduced tariffs on imports from other SADC countries like South Africa, Botswana, and Tanzania. Products from these countries often qualify for lower import duties under the SADC Free Trade Area (FTA).
• World Trade Organization (WTO):
  • Zambia’s commitments as a WTO member include adhering to international trade regulations and offering most-favored-nation (MFN) treatment to members. As such, imports from non-preferential countries may still be subject to tariffs but benefit from global tariff reduction commitments.
• China:
  • China, one of Zambia’s largest trading partners, may offer preferential tariffs through bilateral agreements. Zambia has a strong trade relationship with China, especially in the importation of construction materials, electronics, and machinery. Goods from China may benefit from favorable tariffs under certain circumstances.

Exemptions and Special Regimes

Zambia’s customs system includes a range of exemptions and special regimes designed to encourage foreign investment and promote industrial development. These exemptions apply to certain types of imports and specific conditions:

• Diplomatic Imports: Goods imported by diplomatic missions or international organizations are generally exempt from import duties, as they are considered to be for non-commercial purposes.
• Capital Equipment for Investment Projects: Imports of capital goods, such as machinery and equipment for new investment projects, may be eligible for duty exemptions or reductions. This is particularly important for projects related to infrastructure development, mining, and energy.
• Raw Materials for Local Manufacturing: Some raw materials and intermediate goods used in the manufacturing of locally produced products may be exempt from customs duties. This encourages the development of the manufacturing sector by reducing the cost of production.
• Agricultural Inputs: Fertilizers, pesticides, and other inputs used in agriculture may be granted duty-free status to support the development of the agricultural sector.

Tariff Rates by Product Category

1. Agricultural Products

Zambia’s agricultural sector, which includes crops such as maize, wheat, tobacco, and cotton, faces a mixed tariff structure. The government seeks to protect local farmers and encourage the growth of the agricultural sector.

• Maize and Grains: 0% – 10%
  • Import duties on maize and other grains tend to be low, though higher tariffs may apply if the domestic supply is sufficient. During times of food insecurity, Zambia may reduce or suspend tariffs on staple foods.
• Fresh Fruits and Vegetables: 10% – 20%
  • Import duties for fresh produce are moderate, with protection aimed at local farmers. Zambia relies on imports of fruits and vegetables during the off-season, especially from neighboring countries like South Africa.
• Meat and Dairy Products: 15% – 25%
  • The import of meat products, including beef, pork, and poultry, is subject to tariffs designed to protect the domestic livestock industry. Dairy products such as milk, cheese, and butter may also face similar rates.

2. Machinery and Industrial Equipment

• Construction Machinery: 5% – 15%
  • The importation of construction machinery, including bulldozers, cranes, and excavators, is subject to relatively low tariffs. Zambia’s construction industry, particularly in the mining sector, requires such machinery to meet the growing demand.
• Industrial Equipment and Tools: 0% – 10%
  • Import duties for industrial equipment are generally low, especially for machinery used in sectors like manufacturing and mining. Zambia’s industrialization strategy encourages the import of such goods at favorable rates.

3. Automobiles and Vehicles

• Passenger Cars: 15% – 30%
  • Passenger cars, particularly luxury vehicles, may incur higher tariffs, with tariffs ranging from 15% to 30%. Cars from COMESA member countries may benefit from lower rates under trade agreements.
• Commercial Vehicles: 10% – 20%
  • Commercial vehicles, including trucks and buses, are subject to moderate tariffs, especially those not produced locally. Vehicles from regional trading partners may enjoy preferential tariffs under SADC and COMESA agreements.

4. Textiles, Clothing, and Footwear

• Clothing and Apparel: 10% – 30%
  • Imported clothing and textiles are taxed at moderate to high rates, with protection aimed at Zambia’s limited textile industry. However, imports from COMESA countries may be eligible for reduced tariffs.
• Footwear: 10% – 25%
  • Footwear is also subject to moderate tariffs, especially when imported from non-SADC or COMESA member countries.

5. Electronics and Household Goods

• Mobile Phones and Computers: 5% – 10%
  • Electronic goods like mobile phones and computers generally attract lower import duties, although duties may be higher for luxury models or premium brands.
• Home Appliances: 15% – 25%
  • Large home appliances, including refrigerators and washing machines, face moderate to high tariffs, with duties reduced for imports from COMESA and SADC member countries.

Country Facts

• Country’s Formal Name: Republic of Zambia
• Capital: Lusaka
• Largest Cities:
  • Lusaka (Capital)
  • Ndola
  • Kitwe
• Per Capita Income: Approximately $1,200 USD (2023 estimate)
• Population: 19.5 million (2023 estimate)
• Official Language: English
• Currency: Zambian Kwacha (ZMK)
• Location: Landlocked, bordered by eight countries: Tanzania (N), Malawi (NE), Mozambique (SE), Zimbabwe (S), Botswana (SW), Namibia (W), Angola (NW), and the Democratic Republic of the Congo (N).

Geography, Economy, and Major Industries

Geography

Zambia is located in the central region of Southern Africa and is landlocked, bordered by eight countries. Its terrain is largely made up of high plateaus, with many rivers, including the Zambezi, which forms part of the border with Zimbabwe. The country is rich in mineral resources, and its climate is characterized by a tropical savanna climate, with a rainy season from November to April.

Economy

Zambia’s economy is heavily dependent on copper mining, which accounts for a significant portion of the country’s export earnings and GDP. However, the country has been diversifying its economy to reduce reliance on copper and attract foreign investment in other sectors, including agriculture, manufacturing, and services.

• Copper Mining: Zambia is one of the world’s top producers of copper, which is vital to its economy.
• Agriculture: Maize, tobacco, and cotton are the main agricultural exports.
• Services: Tourism, banking, and financial services have shown growth in recent years.
• Manufacturing: Zambia is gradually developing its manufacturing sector, with textiles, food processing, and chemicals being key areas of focus.

Major Industries

• Mining: Copper, cobalt, and other minerals.
• Agriculture: Maize, tobacco, cotton, sugarcane, and groundnuts.
• Manufacturing: Food processing, textiles, chemicals, and construction materials.
• Energy: Hydroelectric power generation, with the country boasting significant potential for renewable energy.