×
NewsDay

AMH is an independent media house free from political ties or outside influence. We have four newspapers: The Zimbabwe Independent, a business weekly published every Friday, The Standard, a weekly published every Sunday, and Southern and NewsDay, our daily newspapers. Each has an online edition.

ZCMA urges govt to grant duty-free raw materials

Business
THE Zimbabwe Clothing Manufacturers’ Association (ZCMA) has called on the government to give industries more access to duty-free raw materials for value addition in the country as a way of reviving the industry.

THE Zimbabwe Clothing Manufacturers’ Association (ZCMA) has called on the government to give industries more access to duty-free raw materials for value addition in the country as a way of reviving the industry.

BY MTHANDAZO NYONI

ZCMA chairperson, Jeremy Youmans told NewsDay in emailed responses that there was need for more interventions to save the clothing industry from total collapse.

“There is a need for more interventions by the government, such as more industries receiving access to duty-free raw materials for value addition in the country,” he said.

Youmans said there was also need for continual refinement and updating of current interventions such as the list of goods subject to import licensing, with some being removed and some being added.

“A strategy of continual improvement must be followed by all stakeholders so that we start to catch up with our other economic competitors and begin to re-establish our climb up the economic ladder,” he said.

Youmans said the country should continue striving to improve the economic environment, a task for all stakeholders. Commenting on the Statutory Instrument (SI) 64, which added

second-hand clothes to the list of goods that require an import licence, Youmans said it did not ban importation of used clothing and this was the reason why the industry was still flooded with cheap imports.

He it took a long time to publish the SI after it was announced by Finance minister Patrick Chinamasa last year, hence, the impact would be delayed.

“It was only gazetted in June this year. So any impact will also be delayed. How well the importation is being controlled, is also not clear,” he said.

Youmans said there were still truckloads of goods being sold in urban markets and they could not all have been imported before the SI was gazetted.

As second-hand clothing is subject to payment of duty at a rate of 40% plus $2,50/kg, Youmans said Zimra should be levying it on the value of the goods, not what was paid for them, as most of the clothing was donated for the very poor and has been re-diverted for resale.

“So the duty should not be charged on the nil cost, but on the value of the goods. But, of course, that would only apply, now, to goods that have been approved for import by the Ministry of Industry via an import licence,” he said.