Maravi

ZRA begins SADC pilot project on transit bond system

ZRA begins SADC pilot project on transit bond system
By Kabanda Chulu
Wednesday October 22, 2008 [04:00]

THE Zambia Revenue Authority (ZRA) has started implementing a SADC pilot project on regional transit bond guarantee system that will reduce the cost of doing business. The regional transit guarantee system is a bond system that provides some form of security with regard to potential customs revenue on cargo that is transported from one point to the other.

According to a statement issued by the ZRA customs services division, the Southern Africa Development Community (SADC) would be running a pilot project for regional transit bond guarantee system in order to facilitate trade more efficiently.

It stated that the project would run on the south-north corridor, which includes South Africa, Zimbabwe, Zambia and DR Congo.

“The Regional Transit Bond Guarantee system aims at removing the multiplicity of bond requirements and will have one bond to run through all countries from point of commencement to point of discharge in order to reduce cost of in-bound logistics,” it stated.

“And for purposes of the pilot, a limited number of agents, guarantors and transporters have volunteered to be part of the project and further, the pilot will be restricted to certain commodities with all commodities presumed risky will not be admitted.”

It stated that there would be no interruption to business operations in the course of the pilot project and that current transit operations would continue for transactions excluded from the pilot project.

Other intended objectives of the regional transit bond guarantee system would be to facilitate trade since individual countries have a preserve to ask for security within their border jurisdiction. The regional approach is seen as one that will reduce the cost of doing business by avoiding the duplication of costly bond security in individual member countries.

It is also expected to provide recognition of one single bond across the region by all member states that were party to the agreement.

Labels: BONDS, BUSINESS, SADC, ZRA

posted by MrK @ 1:33 PM