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Motor Vehicle Clearance

4.0Duty Rates
4.1 The customs duty rates for motor vehicles described in the table below are expressed as percentages or at specific rates if the VDP for a vehicle does not exceed K8, 000,000 for category (a) or K13, 333,333 for categories (b).
4.2 Excise Duty is a percentage of the sum of VDP and the applicable Customs Duty.
4.3 The Import value added tax (VAT) is a percentage of the sum of VDP, customs duty and excise duty.

	Description	Custom Duty	Excise Duty	VAT
(a)	Motor cars and other motor vehicles (including station wagons) principally designed for the transport of less than ten persons, including the driver	25% or K2, 000,000 per vehicle, whichever is the greater	1.With 1500cc and below- 20% 2.Above 1500cc -30%	17.5%
(b)	Pick-ups and trucks/lorries with gross weight not exceeding 20 tones.	15% or K2, 000,000 per vehicle, whichever is the greater	10%	17.5%
(c)	Buses/coaches for the transport of more than ten persons	15% or K2, 000,000 per vehicle, whichever is the greater	1.With seating capacity not exceeding 16 –25% 2.Seating capacity of 16 or more- 0%	17.5%
(d)	Trucks/lorries with gross weight exceeding 20 tonnes	15%	0%	17.5%

Note: Other motor vehicles not included in the table above (i.e., horses for semi-trailers, ambulances, prison vans, hearses, crane/breakdown lorries, fire fighting vehicles, etc.) attract customs duty at 15% and Import VAT at 17.5%, but no excise duty is applicable.

Furthermore the following additional tax Known as Carbon Emission Surtax is payable on all motor vehicles being imported as below:

Engine Capacity in Cubic Centimeters	Surtax Rate
1500cc and below	50,000.00
Between 1501cc and 2000cc	100,000.00
Between 2001cc and 3000cc	150,000.00
3001cc and above	200,000.00

Duty and VAT calculations
The following are examples of how the taxes are calculated:
A Toyota Corolla (car)with cylinder capacity of 1600 is imported from Japan with the following value;

Cost = US$ 1,300.00
Insurance =US$ 100.00
Freight (up to Durban) =US$ 1,100.00
C.I.F. =US$ 2,500.00
Other costs (Up to Chirundu) =US$ 400.00
CIF Chirundu =US$ 2,900.00
The ruling rate of exchange on date of importation/entry is K4, 192.50 for $1.

VDP (CIF x rate of exchange) $2,900.00x K4.192.50 =K12, 158,250.00
Customs Duty @ 25% =K3, 039,563.00
Value for Excise
(12,158,250.00+K3, 039,563.00) =K15, 197,813.00
Excise Duty @ 30% =K4, 559,344.00
Value for VAT purposes
(K15, 197,813.00+K4,559,156.00) =K19,757156.00
VAT @17.5% =K3, 457,502.00
Carbon Tax (1600) =K100, 000.00
Total Tax Payable =K11, 156,409.00

A 16-seater minibus imported from Japan with the following values;

Cost =US$ 3,500.00
Insurance =US$ 200.00
Freight (up to Durban) =US$ 1,500.00
CIF Durban =US$ 5,200.00
Other costs( up to Livingstone) =US$ 420.00
CIF Livingstone =US$ 5,620.00
The ruling rate of exchange on date of importation is K4.255.00

VDP(CIFX Rate of exchange)
(US$5620.00X K4, 255.00) =K23, 913,100.00
Customs Duty @ 15% =K3, 586,965.00
Value for Excise Duty purposes
(K23, 913,100.00+K3, 586,965.00) =K27, 500,065.00
Excise Duty @25% =K6, 875,016.00
Value for VAT purposes
(K27, 500,065.00+K6, 875,016.00) =K34, 375,081.00
VAT @ 17.5% =k6, 015,639.00
Carbon Tax (Above 3001CC) =K200.000.00
Total Tax Payable =K16, 677,620.00

A pick-up imported from South Africa with the following values;

Cost =ZAR 20.000.00
Insurance =ZAR 1,200.00
Freight/other costs (up to L/tone) =ZAR 3,500.00
CIF Living stone =ZAR 24,700.00

The ruling rate of exchange on date of importation is K521.39 for ZAR1.

VDP (CIF X rate of exchange)
(ZAR 24,700.00X k521.39) =K12, 878,333.00
Customs duty @ 15% is K1, 931,750.00 therefore the specific duty rate of K2, 000,000.00 is applicable.
Value fro Excise purposes
(K12, 878,333.00 + K2, 000,000.00) =K14, 878,333.00
Excise duty @ 10% =K1, 487,833.00
Value for VAT purposes
(K14, 878,333.00+K1, 487,833.00) =K16, 366,166.00
VAT @ 17.5% =K2, 864,079.00
Carbon Tax (2001-3000CC) =K150, 000.00
Total Tax Payable =K6, 501,912.00

A 30-ton truck is imported from USA with the following values;

Cost =US$ 45,200.00
Insurance =US$ 1,200.00
Freight =US$ 5,000.00
Other costs (up to Chirundu) =US$ 215.00
CIF Chirundu =US$51,615.00

T he ruling rate of exchange on date of importation is K4,192.50 for US$1.

VDP (CIFx rate of exchange)

(US$51,615.00 X K4, 192.50) =K216,395,888.00

Customs Duty @ 15% =K32, 459,383.00

Value for VAT purposes

(K216, 395,888.00 +K32, 459,383.00) =K248,855,271.00

VAT @17.5% =K43, 549,672.00

Carbon Tax (Above 3001CC) =K200, 000.00

Total Tax payable =K76, 209,055.00

Clearance Points

Currently full Customs clearance facilities are available at the following ports:
Kapiri Mposhi Livingstone Nakonde Chirundu Kitwe Lusaka Ndola Mwami

All motor vehicles are final cleared at the entry ports, except for those on which permission is granted to be final cleared at inland ports.
Motor vehicles allowed to be cleared at inland ports are removed under bond (RIB) from the entry ports and should be taken/driven straight to the appointed customs area where they should be kept until they are finally cleared.
All imports, including motor vehicles, must be cleared within 30 days after importation. Otherwise interest for late clearance/payment of duty is charged

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