Control of Goods (Amendment) Act, 1997

2. The principal Act is amended by the insertion, immediately after section three of the following new section: Insertion of section 3A

3A. (1) Subject to subsections (IO and (11) there shall be charged. in respect of goods of a value in excess of five hundred United States· dollars, imported into Zambia. an import declaration fee, hereinafter referred to as the fee, equal to five per centum of the value of the goods. Import declaration foe (2) The value of the goods for import to which this section applies shall inch.;de the Free On Board value of the goods, the cost of transpoi;tation, the value of the insurance policy covering the goods, if any, and Jhe cost of freight. ... (3) The fee sh,!11 be comp'u{cd and become payable upon completion and submission of the prescribed import declara­ tion form to a coinme_rcial bank, before. the importation of the · goods.· .. : · (4) Any import .to which this ·section applies shall not be released from Customs control until all requirements under the Customs and.E)\cjse 'Act have been complied with and a duly approved impo_rt declaration form evidencirrg the pay­ ment of the fee; where required, in thc'prescribed manner, is produced. Cap. 322 Copies of lhis Act riray' be oblainedfrom the Government PrinJer, P.O. Box 30136, I0IOO°Lusaka. Price Kl ,500.00 each. 20 No. 7 ofl 997] Control of Goods (Amendment) Cap. 322 (5) If any commercial bank fails to remit, at the prescribed time and place, any monies forming part or the fee collected under the provisions of this section it shall be required-to pay interest on the monies it has failed to remit equivalent to the annualised nominal interest rates of the 28 days Treasury Bills and such interest, together with any unpaid fee, shall be a debt by the commercial bank to the State. (6) If an oflicer discovers goods on whicll the fee v•as oot paid by virtue of under vafuation fn terms of the value for Customs Duty purposes as defined in the Customs and Excise Act, misdescription or for any other reason, in addition to requiring the person to make an application for an import declaration form and pay the required fee to the bank, the officer shall assess and collect from the person in possession or control of such goods, a penalty equal to the amount of the fee that was payable prior to their release rrom customs control. (1) (a) For the purpose cf conducting an audjt, an officer shall have authority to inspect all goods, premises, documents, books of account, any correspondence or other writing- and records relating to the fee remitted by a bankor in relation to any person who is ?n importer and to remove them at a remmnablc time and for a reasonable period. (b) Where information referred to in subsection (I) is electronically stored, an officer shall be empow­ ered to- (i) view the information or document and to copy or take extracts from it by electronic incans; or (ii) require that it be reproduced in hard copy, or copied onto computer diskette or reduced to some other portable form suitable for reloval and capable of reproducing the information or document for viewing. ( c) An officer may make an assessment of the fee for any of the following cases: (i) where a payment by a bank is not filed within the specified time; (ii) where an incomplete payment is filed·; or (iii) where the officer has reason io believe that the amount of fee is understated or other­ wise incorrect. • Control of Goods . (Amendment) [No. 7 of1997 21 (d) An assessment of the fee shall be made within one year from the date that Lhe goods were released from customs control or in the case of a bank from Lhe dale the bank wa� liable Lo remit the fee under subsection (3). (e) An assessment shall be immedialelydue and payable in a manner prescribed in this Act. �rsonwbo- (a) allempt� to evade the fee; (b) knowingly fails to collect the fee; (c) knowingly fails to me an import declaration form, or to supply information; (d) knowingly conceals or destroys any book, record, document, statement, or other in­ formation; ( e) knowingly fails to obey summons; ({)makes or furnishes any fraudulent document, statement, or other information; ( g) al!empts to interfere with the determination or collection of the fee; (h) knowingly discloses any information in a manner not authorised by law or regula­ tions; or (i) in any way knowingly assists in, or contrib- utes to, any of the foregoing; shall be guilty of an offence and liable, upon conviction to a fine of not less than twenty thousand penalty units and not exceeding one million penalty units or upon default of such payment one month imprisonment for each twenty thousand penally units or portion thereof: Provided that the penalties iml!!lsed in this section shall not in any way prejudice the imposition of other sanctions under Customs law or the criminal laws of the Republic of Zambia or elsewhere under this law. · (9) Where any person satisfies the commercial bank to which a fee has been paid and any office j!Uthorise<j by the Minister that any amount of the fee- ( a) was paid in excess or in error; (b) is related to goods for which a drawback of Customs Duty ,• . has been. approved or to which a claim for drawback would be fair and reasonable under the circumstances; or 22 No. 7 of 1997] Control of Goods (Amendment) ------- ( c) for any other reason as the Minister may prescribe; the slated amount of the fee shall he refunded provided the applica­ tion for refund is suhmiued within two years of the event giving cause to the refund. (10) The provisions of this section shall not apply 10 the impor­ tation of goods covered by the First Schedule. (11) Importers under the Second Schedule must complete an import declaration form, but no fee is liable for qualilicd goods. ·(]2) All the monies collected under the provisions of this section shall be paid into the general revenues of Ll1c Republic. (13) The Minister may, hy statutory instrument, make regula- " tions- (a) prescribing the method of computing the value of any transaction; (b) prescribing the grounds necessitating an assessment and auditing of any import; (c) setting out the procedure for the collection of the import declaration fee and for assessment and auditing of any import; (d) designating officers for the purposes of this Act; and ( e) generally, for the belier c .. 1 -ying out of the provisions of this section. l Control ofGoodi (Amendment) [No. 7 of 1997 23 FIRST SCHEDULE (Goods not requiring an Import Declaration Form or payment of the fee) I. Goods of a value for customs duty purposes of the equivalent of five hundred United States dollars US$500 or less;

2. Goods destined for approved duty free stores;

3. Goods destined for approved EPZ (export processing zone) enterprises;

4. Goods destined to approved MUB (manufacturing under bond) enterprises;

5. Accompanied or unaccompanied personal baggage if such importation is free of all customs duties by rca-;on of a duty-free allowance;

6. Ammunition, weapons or implements of war imported by the Government;

7. Household and �rsona1 effects of new residents and returning residents if such importation is free of all customs duties by reason of a ducy-frcc allowance;

9. SupJ)Iies to diplomatic and accredited consular missions, diplomatic personnel. and United Nations organisations, imported for their own use;

10. Goods subject to a technica1 assistance agreement;

11. Goods foruseinhumanitarian aid when imported by an organisation recognised by the Ministry of Finance and Economic Development;

12. Books, current newspapers and pcriodicalsi

15. Antiques more than 100 years old, and original W(>rks of art;

16. Unset precious stones, and precious mcLals in bullion form; and

17. Commercial samples of no commercial value. SECOND SCHEDULE (Goodslrequiring an Import Declaration Form but no payment of the fee) (Goods\Cllumcratcd under an Investment Certificate issued under authority of the lnvestn11cnt Act No. 39 of 1993 and which arc accorded an tAemption from customs duty. 24