Mugabe’s dairy gets duty-free import quota

By Farayi Machamire

President Robert Mugabe’s dairy business — Alpha Omega Dairy (Private) Limited — is among 20 companies that have been granted approval to import milk powder duty-free.

The provision was gazetted on Friday under Statutory Instrument 159 of 2016.

The Government Gazette stated that Finance minister Patrick Chinamasa had suspended duty for various powdered milk importers with effect from January 1, 2017.

The suspension will run until December 31 this year.

Under the provision, the Mugabes’ multi-million-dollar business located in Mazowe central will be allowed to import a maximum of 50 000 kilogrammes (kg) of full cream milk powder per annum and a maximum of

100 000kg skimmed milk powder.

The dairy — one of the biggest in the sub-Saharan region — manufactures milk, ice-cream, yoghurt, chocolate, fruit juices and sour milk.

Dendairy Private Limited and Dairibord Zimbabwe have the highest duty-free import margin.

The pair has been granted a ring-fenced quantity of 1,2 million kg full cream milk powder per annum.

Respectively, they have been granted

440 000kg skimmed milk powder per annum and 1 250 million.

Cairns Foods and Innscor Bakers occupy the lowest rung of companies granted the least kgs per annum.

The pair has been granted 25 000kg and 10 000kg per annum respectively for skimmed milk powder.

In the meantime, sanitary wear manufacturers as well as producers of food, soap and cosmetics are now eligible for rebate following provisions gazetted under Statutory Instrument 161 and 155 of 2016.

They will, however, have to first be registered manufacturers of the said goods in order to enjoy the rebate.

The eligible goods for rebate include hotmelt glue, absorbent polymer, self-adhesive tape, pulp, spandex filament, tissues material and non-woven fabric of man-made filaments.

“It is hereby notified that the minister of Finance has in terms of section 235, as read with section 120, of the Customs and Excise Act, made the following regulations.…subject to these regulations, a rebate of duty shall be granted on goods referred to in the Second Schedule, imported or taken out of bond by a manufacturer for use in the manufacturing of sanitary wear,” the Government Gazette read.

“Any person who wishes to claim a rebate of duty in terms of these regulations shall apply to the proper officer in form SWMR 1 for registration as a manufacture.”

“When the applicant has complied with the requirements of this section, the Commissioner shall register the applicant.

“The fee of registration as a manufacturer shall be the prescribed amount.”

Manufacturers have also been ordered to keep stock-books showing full particulars of all receipts and goods entered so that the rebated goods can be accounted for.

“If the manufacture fails to keep the stock-book in the manner approved…any rebated goods received by the manufacture during the period when the stock-book was not so kept shall be deemed to have used for a purpose other than that for which the rebate was granted,” read the Government Gazette. Daily News