Government has suspended import duty on Semi-Knocked Down (SKD) kits for single and double cab trucks imported by approved local car assemblers. These regulations will be for a period of three years, a move likely to bring down the price of locally assembled light trucks.
“It is hereby notified that the Minister of Finance and Economic Development has in terms of Section 235 as read with Section 120 of the Customs and Excise Act [Chapter 23:02] made the following regulations.
“Customs duty is suspended on SKD single and double cab motor vehicle kits imported by approved assemblers in terms of these regulations,” reads a notice in yesterday’s Government Gazette.
According to the regulations, an assembler means any person who is registered as an assembler of single and double-cab motor vehicles in terms of Section 6.
Semi-knocked down single and double cab motor vehicle kits mean assembly kits for motor vehicles described under tariff code 8704.2120, 8704.2130, 8704.2140., 8704.3120,8704. 3130, 8704.3140 being imported by an approved assembler entirely for completion of the process of assembling single and double cab motor vehicles.
“Subject to these regulations, a suspension of duty shall be granted on SKD single and double cab motor vehicle kits imported or taken out of bond by an assembler for use in the assembly of single and double cab motor vehicles.
“No suspension of duty shall be granted on built-up single and double cab motor vehicle bodies,” reads the Gazette.
According to the Statutory Instrument, the approved assembler shall import the SKD single and double cab motor vehicle kits at a rate of duty of 10 percent ad valorem.
The major assemblers of single and double cabs on the local market are Quest Motors in Mutare, and Harare’s Willowvale Madza Motor Industries (WMMI).. Herald