Customs and Excise (Suspension) (Amendment) Regulations, 2026 (No. 286)
Registered public bus operators get duty on new buses cut to 10% (codes 8702.10.11 and 8702.90.11) or zero (8702.40.00), backdated to 1 January 2026 — buses cannot be sold for five years, and unreasonable fares trigger a clawback of the duty.
Approved bus operators can import new public service buses at a suspended rate of duty, backdated to 1 January 2026. The effective rate becomes 10% for commodity codes 8702.10.11 and 8702.90.11, and zero for 8702.40.00.
Only registered operators qualify. An approved importer must be a public bus operator registered under Part III of the Road Motor Transportation Act, and the Secretary for Transport and Infrastructural Development recommends qualifying operators to the Commissioner case by case.
The paperwork is substantial. Before a bus is admitted, the importer must produce proof of Part III registration; written authority from the Secretary for Transport naming the importer and the make, model, engine and chassis number of the bus; and proof of compliance with sections 37, 37A, 42 and 61 of the Income Tax Act, a valid tax clearance certificate, and proof that income tax due for the previous fiscal year has been paid. On entry, the importer signs a declaration that the bus will carry passengers in the approved business, and the bus must be imported in the importer's own name.
There is a five-year lock-in. A bus cleared under suspension cannot be disposed of within five years without the Commissioner's written authority or payment of the suspended duty. The Commissioner may allow earlier disposal on payment of an amount up to the duty suspended if the bus cannot be economically used, and may remit duty on a bus accidentally destroyed before entering service, if satisfied every reasonable precaution was taken.
A fares condition is attached. Where the Minister considers that an approved importer unjustifiably charges unreasonable fares, or uses the bus for anything other than the service the suspension was granted for, that importer can be made to account for the suspended duty plus penalties. The Secretary for Transport and the Commissioner must each report to the Secretary for Finance by the tenth of every month with the list of approved importers, the number of buses each has imported, and the make, chassis number and value of each bus.
What changed
- Section 9HH of SI 257 of 2003 is replaced with a new public service bus duty suspension
- Effective rate of duty set at 10% for new buses of codes 8702.10.11 and 8702.90.11, and zero for 8702.40.00
- Only bus operators registered under Part III of the Road Motor Transportation Act qualify, on the Secretary for Transport's case-by-case recommendation
- Importers must show tax clearance and proof of income tax paid for the previous fiscal year before a bus is admitted
- Buses cannot be disposed of within five years without the Commissioner's written authority or payment of the suspended duty
- Duty may be remitted where a bus is accidentally destroyed before entering service
- Operators charging unreasonable fares can be made to account for the suspended duty plus penalties
- Monthly reporting to the Secretary for Finance by the tenth of each month on approved importers and buses imported
Who this affects
- public bus operators registered under Part III of the Road Motor Transportation Act
- bus importers and dealers
- clearing agents handling vehicle imports
- passengers on routes served by operators claiming the suspension
- ZIMRA and the Ministry of Transport and Infrastructural Development
Plain-language summary — not legal advice. Always read the full instrument.