Trade Policies and Practices by Measure
III. TRADE POLICIES A�D PRACTICES BY MEASURE
- Trade policy has remained substantially unchanged since Zambia undertook a comprehensive reform programme in the 1990s, removing exchange controls, reducing import duties, eliminating import and export licence requirements, abolishing export bans and introducing a number of export incentives, removing subsidies, and decontrolling prices. According to the World Bank's Trade Tariff Restrictiveness Index, Zambia's trade regime is more open than that of an average subSaharan African or lowincome country.1 The simple average applied MFN tariff of 13.4% has dropped only slightly since the late 1990s, but Zambia continues to work toward lower trade barriers, especially through the COMESA and SADC freetrade areas. The large gap between the average applied rate of 13.4% and the bound rate of 105.7%, and the absence of bindings for over 83% of tariff lines, creates a degree of unpredictability for traders in the sense that there is scope for the authorities to raise tariffs, although, with one notable exception, applied tariffs have not been increased during the review period according to the authorities.2 Ad valorem tariffs account for 97.8% of all tariff lines, which lends a high degree of transparency to the tariff, although for the remaining 2.2% (up from 1.3% in 2002) ad valorem equivalents are not available and tend to conceal relatively high rates.
- In terms of customs operations, Zambia remains one of the world's least efficient countries according to the World Bank classification scheme.3 It ranks 153rd out of 181countries, due to the higher number of required documents, considerably longer processing times for exports, and relatively high per container export and import costs compared with those of an average subSaharan African or lowincome country. One of the main technical assistance efforts to improve this situation is the U.S. Millennium Challenge Corporation 20062008 programme 4, to promote economic governance by reducing barriers to trade and investment through: building capacity in modern customs tecghniques and integrated border control; strengthening the capacity of SPS units to provide services for local and export trade; and strengthening the standardization, certification, and inspection units of the Zambia Bureau of Standards.
- In order to not to impede exports, Zambia has duty drawback schemes and it is possible to manufacture under bond in a bonded warehouse. Apart from exemptions, the most important of which apply to mining inputs, not much use is being made of these facilities. The duty drawback schemes suffer from delays in processing claims and refunding tariffs, and the Government frequently runs out of funds to finance these refunds.
- The authorities have abandoned efforts to establish export processing zones, instead focusing on establishing multifacility economic zones (MFEZs) which offer a wider set of incentives to both exporting and nonexporting enterprises. With the recent replacement of the Investment Act by the Zambia Development Agency (ZDA) Act, investment incentives based on tax holidays were introduced in early 2007 for companies operating in MFEZs and a long list of priority sectors. While additional investment is needed, international experience demonstrates that investors give lower priority to tax incentives than to a competitive investment climate generally.
1 World Bank (2008e).
2 The customs duty on cellular phone handsets was increased from 5% to 15% in the 2009 Budget to encourage local production of handsets.
3 World Bank (2008a), p. 2.
4 The objective of the programme was to reduce the number of days required to export products from 60 to 30 and the number of days required to import products from 62 to 30.
- In 2008, Zambia enacted the Public Procurement Act, which repealed the Zambia National Tender Board Act with the result that the Zambia Public Procurement Authority has issued new thresholds. Zambia is not a member of the WTO Government Procurement Code. Since the early 1990s, the private sector has played a greater role in the national economy, following a privatization programme initiated to accelerate the development of the private sector. Prior to privatization, the State controlled over 80% of the country’s productive and servicerelated activities, a share that is now seemingly reduced to between 10% and 15% as, according to the authorities, the bulk of the governmentowned mining companies were privatized. The Zambia Development Agency (ZDA) succeeded the Zambian Privatization Agency in January 2007 as the country’s privatization vehicle. Plans to privatize energy and fixedline telecommunication services may encounter problems as productivity in both subsectors requires urgent improvement.
- The authorities are drawing up a national policy on intellectual property, with outside assistance, and have stepped up efforts to combat trade in pirated and counterfeit goods.
- MEASURES DIRECTLY AFFECTI�G IMPORTS
- Customs procedures
- Customs administration in Zambia is under the responsibility of the Customs and Excise Department of the Zambia Revenue Authority (ZRA). The department has undergone significant changes in the context of a Customs Reform and Modernization Program linked to the implementation of ASYCUDA++.5 The Customs and Excise Department is responsible under the Customs and Excise Act, Chapter 322, for the following: collection of customs and excise duties and other taxes; licensing and management of registered excise manufacturers; licensing and control of bonded warehouses; regulation and control of imports and exports; facilitation of trade, travel and movement of goods; carrying out of controls on behalf of other government ministries; provision of trade statistics; and protection of society.
- An importer wishing to challenge a customsrelated determination can appeal to the Revenue Appeals Tribunal, established under the Revenue Appeals Tribunal Act of 1998. Appeals are accepted on issues related to customs valuation, customs classification or a refusal to license. Appeals to the Tribunal’s ruling can be made to the High Court; final appeal is to the Supreme Court.
(b) Import documentation and procedures
9. Under Section 32 of the Customs and Excise Act, all imports must be cleared at the point of entry through approved customsclearing agents unless the importer is authorized by the ZRA to selfclear. When the entry and relevant supporting documents have been registered and accepted by ZRA Customs, taxes are assessed, and a processing fee of K 50,040 is added to cover the costs of the ASYCUDA system application, and of Necor, a private agency that processes the entry declaration (form CE 20). Customs may call for a physical examination or additional documentation to ensure that a declaration is correct. An invoice is issued for immediate payment for the goods to be released,
5 Zambia uses UNCTAD's Automated System for Customs Data and Management (ASYCUDA) declarationprocessing system. The ASYCUDA++ system has recently been introduced and provides for streamlined customs clearance procedures. AYSCUDA ++ also has a risk module that suggests a particular risk profile for each shipment: green – no inspection, yellow – inspection of documents, blue – post audit, red – physical and document inspections. When fully implemented, the ASYCUDA national system is to be fully linked to the COMESA regional centre.
and, when all formalities are concluded and payment has been made, Customs will issue a release order for the goods.
10. According to the authorities, customs clearance is usually accomplished within a few hours, providing that all documents are in order. Subject to documents being in order, the ZRA states that clearance can be achieved within 8 hours for major clients who use credit account facilities to pay their taxes; however, a random check (carried out in the context of the DTIS) at the Chirundu border revealed waiting times of 24 days. At Lusaka airport, it has been reported that shipment clearance may take up to 4 days.
(c) Customs valuation
- Zambia applies tariffs on the c.i.f. value of imports. According to the authorities, the dutiable value of goods is always considered to be not less than the f.o.b. price of the goods to the importer. Since 2000, the principal methods used for customs valuation have been based on the transaction value, i.e. the price actually paid or payable when a good is sold for export to Zambia. Where the transaction value cannot be ascertained, the price actually paid for similar goods, adjusted for differences in cost and charges based on distance and mode of transport, is determined as the transaction value.
- While ZRA began to implement the WTO method of valuation in 2000, it appears that all the transaction values are checked using a central database of identical/similar goods. The authorities state that, in practice, Customs compares declarations to those for similar goods previously cleared and when the difference is large, may query the importer.
(d) Bonded warehouse facility
13. Zambia authorizes the use of bonded warehouses and permits the Removal of Goods in Bond (RIB). RIB allows goods to enter Zambia and remain in the country for 30 days without the payment of taxes; if goods remain beyond 30 days, taxes are to be paid, or the goods are to be assigned to a bonded warehouse. Goods may remain in the bonded warehouse for up to one year. However, the bonded warehouse facility appears to have been abused, with bonded goods leaking into the domestic market.6
14. The customs tariff generated revenue of around 2.6% of GDP between 1996 and 2001, falling to 2.2% in 2002, and around 2.1% between 2003 and 2005. Tariffs are changed on a financialyear basis as part of budgetary deliberations; an Act of Parliament is the final authority for tariff amendments. The First Schedule to the Customs and Excise Act specifies the structure of Zambia’s customs tariff, and establishes four duty rates, 0%, 5%, 15% and 25%. Zambia’s applied import duty rates range from 0% to 5% for raw materials, 15% for intermediate goods, and 25% for final or consumption goods. Goods imports from COMESA partners are duty free on a reciprocal basis.
15. The 2008 tariff is based on HS07 nomenclature and consists of 5,962 lines at the HS eightdigit level. With the exception of 131 lines bearing alternate tariffs, all other lines have ad valorem tariffs. Products subject to alternate duties, for which AVEs are not available, include butter, wheat flour, clear beer, cotton (45 lines), and motor vehicles. No items are subject to seasonal, specific, compound, variable or interim tariffs.
(a) Applied MFN tariff
16. Zambia's tariff structure has remained broadly unchanged since its previous review. The tariff still consists of four rates as indicated above. A number of goods may be imported into Zambia duty free, including medicines, pharmaceuticals, veterinary, and medical equipment, chemicals in bulk, fertilizers, and seeds; also, duty on productive machinery for agriculture and mining is at 0%. The 2008 simple average applied MFN tariff was 13.4%, the same as in 2002 (Table III.1 and Chart III.1).
Table III.1 Tariff structure in Zambia, 2002 and 2008
|2002||2008||Final bound a|
|1. 2. 3. 4. 5. 6. 7. 8. 9. 10.||Bound tariff lines (% of all tariff lines) Simple average applied rate Agricultural products (HS0124) Industrial products (HS2597) WTO agricultural products WTO nonagricultural products Textiles and clothing ISIC 1 Agriculture, hunting, fishing ISIC 2 – Mining ISIC 3 – Manufacturing Manufacturing excluding food processing First stage of processing Semiprocessed products Fully processed products Domestic tariff peaks (% of all tariff lines) b International tariff peaks (% of all tariff lines) c Overall standard deviation of tariff rates Coefficient of variation of tariff rates Dutyfree tariff lines (% of all tariff lines) Nonad valorem tariffs (% of all tariff lines) Nonad valorem tariffs with no AVEs (% of all tariff lines) Nuisance applied rates (% of all tariff lines) d||16.3 13.4 19.6 12.5 18.5 12.7 18.3 18.5 8.0 13.2 12.5 15.3 8.8 16.5 0.0 31.0 9.5 0.7 20.9 1.3 1.3 0.0||16.6 13.4 20.1 12.3 19.1 12.5 18.1 19.1 8.0 13.1 12.3 15.8 9.0 16.1 0.0 31.4 9.6 0.7 22.1 2.2 2.2 0.0||16.6 105.7 122.8 62.8 123.0 41.8 40.0 120.3 n.a. 100.4 61.0 118.8 93.5 98.5 0.0 100.0 35.5 0.3 0.0 0.0 0.0 0.0|
n.a. Not applicable.
a Based on 2008 tariff schedule in HS07 nomenclature. Calculations are based on 987 bound tariff lines (representing 16.6% of total lines); 100% are bound under the WTO definition of agriculture, only 4.1% under WTO nonagriculture. Implementation of the U.R. was reached in 1995.
b Domestic tariff peaks are defined as those exceeding three times the overall simple average applied rate. International tariff peaks are defined as those exceeding 15%. d Nuisance rates are those greater than zero, but less than or equal to 2%.
Note: The ad valorem part of alternate rates were taken into account for the calculations. The 2002 tariff schedule is based on 8digit HS96 nomenclature and consists of 6,041 tariff lines. The 2008 tariff schedule is based on 8digit HS07 nomenclature and consists of 5,963 tariff lines.
Source: WTO Secretariat calculations, based on data provided by the Zambian authorities.
�Average applied MF� tariff rates, by HS section, 2002 and 2008
01 Live animals & products 07 Plastic & rubber 13 Articles of stones 19 Arms & ammunition 02 Vegetable products 08 Hides & skins 14 Precious stones, etc. 20 Miscellaneous manuf. 03 Fats & oils 09 Wood & articles 15 Base metals and products 21 Works of art, etc. 04 Prepared food, etc. 10 Pulp, paper, etc. 16 Machinery 05 Mineral products 11 Textiles & articles 17 Transport equipment 06 Chemicals & products 12 Footwear, headgear 18 Precision instrument
�ote: Calculations include the ad valorem part of alternate rates. 2002 averages are based on HS96 nomenclature and 2008 on HS07.
Source : WTO Secretariat calculations, based on data provided by the authorities of Zambia.
- The coefficient of variation of 0.7 indicates continued modest dispersion of tariff rates from one category of products to another. The most common rate of 15% applies to some 32% of tariff lines. Close to two thirds of all lines bear a tariff rate of either 15% or 25%, while around 22% of tariff lines (1,319 lines) are duty free (Chart III.2). Virtually all raw materials and most industrial or productive machinery fall within the 0% to 5% tariff categories, and nearly 70% of mining and quarryingrelated tariff lines attract the 5% tariff rate. In 2006, the authorities reduced a number of tariffs, including on computer parts (from 15% to zero), and inputs used in textile and clothing manufacturing.
- Agriculture (including hunting, forestry, and fishing) remains the most protected sector, followed by manufacturing with applied average MFN tariff rates of 19.1% and 13.1%, respectively. The 25% tariff rate applies to a relatively high number of agricultural products. The average applied MFN tariff in the mining and quarrying sector is 8.0%. When the WTO definition is used, agriculture is still the most tariffprotected sector (19.1% on average). Applied MFN tariffs on WTO defined nonagricultural products, including petroleum, average 12.5%.
- In aggregate, Zambia's tariff structure shows negative escalation from firststage processed products to semifinished goods, and positive escalation to finished products (Table III.1). Positive escalation is present notably on: basic metal industries, with average applied MFN tariff rates ranging from 5% on first stage processed products to 6.4% on semiprocessed products; and paper, paper products, printing and publishing, with average rates rising from 5.0% on firststage processed products, to 9.4% on semiprocessed products, and 16.8% on fully processed products (Chart III.3).
Chart III.2 Distribution of MF� tariff rates, 2002 and 2008
�umber of tariff lines
Duty free 5% 15% 25%
�ote: Figures in parentheses indicate the share of total lines. Calculations include the ad valorem part of alternate rates.
Source : WTO Secretariat calculations, based on data provided by the authorities of Zambia.
Tariff escalation by 2digit ISIC industry, 2008 Per cent
Food, Textiles and Wood and Paper printing Chemicals Nonmetallic Basic metals Fabricated Other beverages and leather furniture and publishing mineral metal products manufacturing tobacco products and machinery
n.a. �ot applicable.
�ote: Calculations include the ad valorem part of alternate rates.
Source : WTO Secretariat calculations, based on data provided by the authorities of Zambia.
(b) Bound MFN tariff
20. Zambia has bound customs duties on 16.6% of all tariff lines, almost unchanged from the situation in 2002. The large gap between the average applied rate of 13.4% and the bound rate of 105.7% and the absence of bindings for over 83% of tariff lines, create a degree of unpredictability for traders in the sense that there is scope for the authorities to raise tariffs. However, the authorities have stated that applied tariffs have not been increased during the review period. In agriculture (WTO definition), all tariffs are bound, almost entirely at the ceiling rate of 123%, with a few exceptions, such as wheat, rye, barley, and oats (45%); cocoa beans, cocoa paste, cocoa butter, fat and oil, and chocolate and other food preparations containing cocoa (50%); and cocoa powder, not containing added sugar or other sweetening matter (60%). Tariffs were bound for nonagricultural products, at the simple average rate of 41.8%. Although tariff bindings are always desirable, their practical significance in Zambia in constraining future tariff increases is undermined, as bound rates substantially exceed applied tariff levels. Zambia has so far made no commitments to reduce these ceiling bindings.
(c) Tariff preferences
- Exceptions to MFN tariff treatment include preferential access for members of regional trading arrangements in which Zambia participates: all goods are freely traded between Zambia and COMESA members that have met their freetrade area (FTA) commitments. Tariff preferences are accorded by Zambia to the other COMESA members on a reciprocal basis. By the end of 2006, 13 of the 20 members, including Zambia, had removed all barriers to trade between themselves, granted trade preferences to the COMESA members that are not part of the FTA and retained tariffs on imports from outside COMESA. COMESA has now reached an agreement on common external tariffs, although some issues with the classification of products as raw materials or processed products remain.
- Effective 30 April 2001, Zambia began to implement its commitments under the SADC Trade Protocol and to grant dutyfree access, on a reciprocal basis, to imports from SADC members. Zambia is on target to meet its obligations under the SADC freetrade area, so that 85% of goods from the region enter duty free; tariffs on the remaining sensitive goods will be phased out by 2012.
(d) Tariff exemptions
- According to the IMF, the total value of imports exempted from customs duties (as well as VAT, excise duties, the fuel levy, and motor vehicle licences) fell from 35% in 2004 to 21% in 2005 and 13% in the first nine months of 2006.7 The most important exemptions are granted to the mining sector on the basis that mining output is exported. The other main exemptions (new residents' effects, goods for diplomatic personnel, and goods for approved organizations) are standard exemptions granted by a number of countries. Exemptions on customs duties are more costly, in terms of revenue forgone, than those on VAT or excises, accounting for 1.9% and 0.8% of GDP in 2004 and 2005 respectively.
- The 2006 ZDA Act introduced special tariff exemptions for designated priority sectors, mostly in the manufacturing sector, including 0% duty rate on all machinery and equipment for 5 years for enterprises under the ZDA. A number of import duty exemptions provided for in the context of the 2006 Budget are still in force: (a) for five years on all machinery, fixtures and equipment, tools, motor vehicle parts, motor cycles and bicycle parts used in the assembly of motor vehicles, motor cycles, and bicycles; (b) for five years on inputs used in the textile and clothing
7 IMF (2007a), p. 33.
industry, such as grey fabrics, machinery, sewing threads, sewing machine spares, and trimmings;
(c) for five years of material used in the manufacture and packaging of cement, and manufacture of roofing sheets; (d) for five years on machinery and equipment acquired by enterprises that will operate in the proposed MFEZ/priority sector or rural enterprises; (e) for computer parts; and (f) on printed paper board used for packaging UHT milk.
(iii) Other charges affecting imports
- Excise and VAT on imports are collected at the border; the same tax rates levied on imported and domestically produced goods.
- The 2007 Budget introduced a refundable 3% advance tax on commercial imports (entered into effect on 1 April 2007 and was recently increased to 6%), excluding goods imported for personal use. The measure is intended to broaden the tax base by capturing unregistered businesses who make commercial imports. This is not an impediment to taxpaying companies on condition that the tax is fully credited/refunded promptly, although this may not be the case for companies enjoying tax holidays. The authorities have noted that taxcomplying companies include the advance income tax in their returns so that it is reflected as an amount already paid.
(iv) Rules of origin
- Zambia has both preferential and nonpreferential rules of origin. Preferential rules of origin apply under regional trade arrangements to which Zambia is a signatory. While COMESA provides for four alternative criteria for determining origin, SADC rules of origin are negotiated, in many cases, on a productbyproduct basis, making them complex and varied across products. In all cases, an appropriate certificate of origin, issued by the exporting country must accompany eligible imports. For countries covered by more than one agreement, an importer has a choice of arrangement under which to import the goods.
- Under the nonpreferential rules of origin specified in Section 73 of the Customs and Excise Act (Chapter 322 of the Laws of Zambia), manufactured goods are considered as originating from Zambia if at least 50% of the material is local or value addition is a minimum of 50% of the total cost of production.
(v) Import prohibitions, restrictions, and licensing
- The importation of the following is expressly prohibited: false and counterfeit coins or bank notes; indecent, obscene, or objectionable material; goods manufactured or produced wholly or in part by prison labour; pirated and counterfeit goods; and any goods prohibited under any other law in Zambia, such as the Drug and Psychotropic Act, the Wildlife Act, and the National Heritage Act for Historical Artefacts. Ivory imports are also banned.
- No import licences are required for general importation into Zambia.8 However, certain agricultural goods require an import permit and a sanitary and phytosanitary (SPS) certificate prior to the order being confirmed with the exporter. SPS certificates must be obtained in advance and included in the shipment documentation; when the consignment arrives at the port of entry, the certificate is examined by the plant inspector at the border. The inspector may test samples before allowing the products to be released. Also, certification must be obtained for imports of meat and poultry (Veterinary Department); plants, plant parts, plant products, and regulated articles (Makulu
8 In 2004, Zambia notified the WTO that it does not have import licensing procedures and has no regulations to that effect (document G/LIC/N1/ZMB/2, 18 February 2004).
Research Station); food and drugs (Ministry of Health); firearms and ammunition (Zambia Police). Standard customs declarations are required for imports.
(vi) Contingency measures
- In November 2004, the Customs and Excise Act and the Import Control Acts were amended to allow for safeguard measures to be applied. The amendments were drafted with the objective of ensuring compatibility with the WTO, COMESA, and SADC agreements, and to address the concerns of the private sector, which has been particularly concerned about unfair competition and cases of predatory pricing. Under COMESA there is provision for measures in the form of antidumping duties, countervailing duties or QRs sufficient to reduce the flow of imports (to not below the last 3year average). Under the SADC protocol, members may apply antidumping measures that are in conformity with WTO provisions, or countervailing duties consistent with WTO provisions, to offset the effects of subsidies.9
- Under the Customs and Excise Regulations, any person whose interests may be harmed by imported goods that are being sold at rates below that of the country of production may make a complaint to the Controller of Customs. Upon review, if it is established that goods are being dumped in Zambia, an antidumping duty is levied. No safeguard measures have been applied since 2004.
9 Dun and Bradstreet (2006).
(vii) Government procurement
- Government procurement is governed by the Public Procurement Act No. 12 of 2008 and associated tender regulations. The Act is applicable to all public institutions, including government ministries and departments, parastatal and statutory bodies, and local councils. The Zambia National Tender Board Act of 1982 (chapter 394 of the Laws of Zambia) and associated Tender regulations were in force until repealed by the new Act. Zambia is not a member of the WTO procurement Code.
- The District Tender Committees are authorized to make simplified bidding (informal tenders) for goods, services and works of up to K500 million. All government purchases exceeding K30 billion for goods, services and works and K10 billion for consulting services, including capital expenditures from external assistance, go through the Zambia Public Procurement Authority. Many large projects are funded by multilateral lending institutions and bilateral donors, in which case their procurement regulations are followed. 10
- Requests for bids are published in the Zambian Government Gazette and local English language daily newspapers. An eightweek period, from the first announcement in the Gazette, is allowed for international competitive bidding. Bids must be submitted in accordance with the instructions to bidders. Tenders are opened in public and price information is disclosed. The legal framework provides for local preferences, where applicable, of 15% for locally manufactured goods with at least 40% valueadded content; 20% for goods produced in Zambian small businesses; 7.5% for local contractors; and 5% for imported goods held in stock by local merchants.
- The Public Procurement Act does not have a threshold for international tenders as the authorities believed until recently that they could obtain all necessary goods and services primarily from Zambian suppliers. Decisions (by the Controlling Officers) to invite offers from local or international suppliers are based on whether the required goods and services could be obtained in Zambia. Mainly due to international agreements such as the EPAs with the EC and the COMESA
10 According to the authorities, the value of government procurement averaged K 125 billion per annum from 2005 to 2007, equivalent to about 0.3% of GDP; an estimated 15% was through foreign suppliers.
Directive on procurement (which plans to harmonize public procurement systems among members states), the Government has begun to review its policy on procurement in terms of integrating international and regional procurement thresholds.
(viii) Importrelated operations of statetrading enterprises
37. In 2007, Zambia notified the WTO that is does not maintain any state trading enterprises in accordance with the definition in GATT Article XVII.11
(ix) Standards and other technical requirements
- A key activity for enhancing trade facilitation is the strengthening of the standardization, certification, and inspection units of the Zambia Bureau of Standards so that they can provide more efficient services for importing and exporting, thus ensuring conformity with international and regional standards and technical requirements. 12 It seems that Zambia does not have the capacity to properly test all imported products (for example, there is only minimal testing on electrical products), which provides considerable scope for exporters to find a market for substandard products in Zambia.
- The 2005 Diagnostic Trade Integration Study13 highlighted a number of problems in Zambia's standards infrastructure. While the Zambia Bureau of Standards (ZABS) is the main Government body responsible for setting, reviewing, monitoring, and implementing technical standards for all industries including agriculture, the Food and Drugs Control Laboratory and the Ministry of Agriculture also set standards, and they are not required to notify the ZABS. The ZBS maintains a comprehensive database of existing standards scattered across a wide range of legal instruments. The ZABS was established in 1982 by Act No 22, which was later repealed and replaced in 1994 by the Standards Act 416.
- Zambian standards are to a considerable extent based on international standards developed by international standardssetting bodies such as the International Standards Organization (ISO), and the Codex Alimentarius Commission. Zambia is an affiliate member of the International ElectroTechnical Commission (IEC), and has been a corresponding member of the ISO since 2003 and is planning to upgrade this to full membership. Currently, there are around 640 Zambian standards (42 adopted from ISO, 84 from the IEC, 140 from COMESA, and 34 SADC standards). They cover building and construction, food and agriculture, textiles, and chemicals. ZABS is the selling agent in Zambia for foreign and international standards, such as the International Organization for Standardization (ISO) and national standards of many countries in the world. ZABS is an observer member of ISO, ARSO and IEC.
- ZABS formulates various standards and implements them through a product certification marking scheme: a manufacturer of a product that meets a Zambian standard may apply to use the Bureau's certification mark under a scheme of supervision that includes inspection and testing of the marked product. Participation in the certification scheme is also open to manufacturers outside of Zambia.
11 G/STR/N/11/ZMB of 13 September 2007.
12 According to the 2007 progress report of the Fifth National Development Plan, equipment was procured and training provided to enhance the operations of the Zambia Bureau of Standards and the Zambia Weights and Measures Agency. See Ministry of Finance and National Planning (2008), p. 63.
13 World Bank (2005b), pp. 3336.
- ZABS also operates a small metrology laboratory (the Zambia Bureau of Standards Metrology Laboratory), which offers calibration services in the fields of mass, length, and pressure. The range of tests is limited by availability of standards and testing equipment.
- Zambia notified the WTO in 1998 with respect to the adoption of the Code of Good Practice and the creation of a WTO/TBT Enquiry Point under the ZABS. The Enquiry Point has not been active because it lacks financial and basic technical resources. In 2004, the ZABS notified the WTO of its acceptance of the TBT Code of Good Practice. 14 Zambia also continues to participate in regional programmes aimed at harmonizing standards and conformity assessment schemes such as those under COMESA and SADC
(x) SPS measures
44. The Ministry of Agriculture and Cooperatives (MAC) is responsible for control and monitoring of animal and plant health in the production, distribution, and supply of raw materials to the foodprocessing sector. The Ministry of Health deals with other issues relating to food safety and labelling, and administers the Food and Drug Act. Zambia notified the WTO in 2008 that it had made strides in the formation and establishment of a dedicated office for the Enquiry Point15, in line with WTO transparency requirements.
(a) Animal health
45. The Department of the Veterinary and Livestock Development, in the MAC, is the main service responsible for the control of animal diseases and the safety of livestock products. It promulgates policies and regulations on animal diseases, develops veterinary inspection procedures, and is responsible for inspection and certification of imports and exports of animal products. The Department has five regional veterinary laboratories that conduct tests on diseases, and cooperates with the National Livestock Epidemiology and Information Centre, which gathers and processes data on animal health and disease status and control. Zambia is a net importer of animal products. Exports are mostly confined to dayold chicks and to semiprocessed hides and skins.
(b) Plant health
- The Zambia Agriculture Research Institute is the responsible authority (under the MAC) for implementing, monitoring, and controlling plant health policies and issues. It has four divisions/branches among which is the Plant Quarantine and Phytosanitary Service (PQPS). Based on the Noxious Weeds Act and the Plant Pests and Diseases Act (Cap.231), the PQPS is responsible for carrying out the functions specified in the International Plant Protection Convention16 (IPPC), and for overseeing the agricultural plant safeguarding system, including surveillance, inspection, issuing phytosanitary certificates for exports, and conducting pest risk analysis.
- With the help of the FAO, the Government has prepared a new Plant Protection Bill, which is currently undergoing public review and comments and is expected to replace Cap 231. The main aims of the new Act are, inter alia: to prevent the introduction, and to control the spread, of plant
14 On 4 November 2004, the ZABS notified acceptance of the WTO TBT Code of Good Practice for the preparation, adoption and appreciation of standards.
15 The WTO Enquiry Point was set up with support from the JITAP project and the Zambia Threshold Project, funded by USAID. See WTO document G/SPS/GEN/836 of 27 March 2008, Information on various SPS matters.
16 Identified in the SPS Agreement as an organization that provides international standards for phytosanitary measures implemented by governments to protect their plant resources from harmful pests.
pests; to provide for the protection of plant resources; and to regulate trade in plants and plant products. The proposed new Act is a substantial improvement on the existing legislation as it would bring Zambia into line with its IPPC obligations.
(c) Needs assessment
- In March 2006, following a request from the MAC, the World Bank conducted a sanitary and phytosanitary (SPS) needs assessment in Zambia. 17 The objectives were to identify where SPS and standards issues were constraining trade and recommend areas where further indepth work was required. 18 These were: the functions and performance of Plant Quarantine and Phytosanitary Services (PQPS); food safety standards in agroprocessing factories and restaurants/hotels; the current state of laboratories supporting the agriculture and food sectors and the plans for future investment; and, the demand for establishing a certification system for good agricultural practices for farmers supplying the highend of the local horticultural market. The report concludes that Zambia’s trade faces relatively few plant health constraints.
- The report noted inter alia that Zambia exports very little food (other than sugar) and is a large net importer of food. Its processed food exports are directed at neighbouring countries where prevailing official and private standards are similar to those in Zambia. Zambia’s food trade with developed countries is small and declining, consisting of a limited vegetable sales to the United Kingdom, Holland, Australia, and South Africa, and sales of honey and paprika to a few countries.
- MEASURES DIRECTLY AFFECTI�G EXPORTS
- Procedures and documentation
50. Exporters must complete form CE 20, declaring goods to be exported, this is submitted to customs electronically either through Necor (contracted by ZRA to impute trade data on behalf of traders) or directly online if the exporter is linked to Customs' ASYCUDA system. A hard copy of form CE 20 is also submitted, together with commercial invoices, the bill of lading, road manifest, and any other commercial documents that will accompany the goods. Where relevant, the appropriate certificate of origin must also be submitted. Customs examines the declaration against the physical export, stamps the documents, and releases the goods; according to the authorities, this process can be completed within one hour. The ZRA carries out inspections on exports as a check against the smuggling of proscribed goods, and to obtain information for VAT refunds and duty drawbacks. 19
(ii) Export taxes
51. The 2008 Budget encouraged local value addition by introducing an export levy of 15% on the export of copper concentrates and cotton seed (subsequently raised in the 2009 Budget to 20% for
17 World Bank (2006).
18 The mission concluded that there were only a few significant SPS and standards issues constraining trade. However, it identified areas where trade might be constrained in the future and recommended that these should be evaluated further: subsequently, a larger mission was organized.
19 Inspections are carried out by the ZRA to ensure that the content of the Export Declaration Form EXD is a correct representation of items being exported and to guard