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GIST

Customs and Excise (Designated Deemed Smuggled Goods)

Nineteen everyday goods — rice, sugar, cement, clothing, tyres among them — are deemed smuggled if a trader cannot produce proof duty was paid, backdated to 28 November 2024. Shoppers are expressly exempt.

These regulations designate nineteen categories of commercial goods for the purposes of section 223A of the Customs and Excise Act, and they are deemed to take effect from 28 November 2024 — before the date they were gazetted.

The rule they carry is blunt. Any manufacturer, wholesaler, retailer or individual found in possession of the designated goods who fails to furnish the Commissioner, or an officer authorised by the Commissioner, with authentic documentary evidence that duty has been properly accounted for is deemed to have smuggled those goods, and is liable for the duty on them plus applicable penalties. The burden is on the holder to produce the paperwork, not on ZIMRA to prove the goods were smuggled.

The designated goods are: alcoholic beverages, non-alcoholic beverages, cement, clothing, footwear, dairy products, diapers, electrical appliances, cables and accessories, ploughs and parts, processed meat, rice, pasta, sugar, tyres, motor spares, washing powder and detergents, biscuits, sweets, and laundry and bath soaps. That list covers most of what a general dealer or supermarket stocks, so the practical effect is a documentation requirement across ordinary retail and wholesale trade.

Consumers are explicitly protected. Section 4 states for the avoidance of doubt that no customer shall be required to produce proof of payment of duty on imported goods bought from a local manufacturer, wholesaler or retailer. The responsibility sits with whoever imported the goods, or with the manufacturer using imported inputs, or the wholesaler or retailer selling them.

Traders should be able to produce clearance documents on demand for anything on the list, including stock bought locally, since being unable to do so converts a stock-holding into a deemed smuggling liability.

What changed

  • Nineteen categories of commercial goods are designated for the purposes of section 223A of the Customs and Excise Act.
  • The regulations are deemed to take effect from 28 November 2024, before their publication.
  • A manufacturer, wholesaler, retailer or individual in possession who cannot produce authentic documentary evidence that duty was accounted for is deemed to have smuggled the goods.
  • Deemed smuggling makes the holder liable for the duty plus applicable penalties.
  • Designated goods include alcoholic and non-alcoholic beverages, cement, clothing, footwear, dairy products, diapers, electrical appliances, ploughs, processed meat, rice, pasta, sugar, tyres, motor spares, detergents, biscuits, sweets and soaps.
  • No customer is required to prove duty was paid on goods bought from a local manufacturer, wholesaler or retailer.
  • Responsibility rests with the importer, or the manufacturer, wholesaler or retailer of the imported goods.

Who this affects

  • retailers and general dealers stocking imported goods
  • wholesalers and distributors
  • manufacturers using imported inputs
  • importers of the nineteen designated goods
  • consumers, who are expressly exempt from producing proof of duty

Plain-language summary — not legal advice. Always read the full instrument.