Zimbabwe loses billions in blanket smuggling

Zimbabwe has reportedly lost billions of dollars in the textile sector, following allegations of massive smuggling where corrupt law enforcers working with Chinese shelf companies and local clearing agencies were undervaluing the imported blankets.

The Ministry of Industry and Commerce introduced Statutory Instrument (SI) 19 of 2016 prohibiting the importation of blankets and poly knitted fabric, among others, without first getting an import licence. The ministry also introduced 40% duty and a surcharge of $2,50 per kilogramme on these items in a bid to protect the local industry.

However, some cheap materials were finding their way into the market as a result of clearing agencies reportedly working with Zimbabwe Revenue Authority (Zimra) employees to apply wrong codes for the imported blankets. According to sources interviewed by NewsDay, a big scandal of blankets and other poly knitted fabric was being investigated where corrupt agents were using the wrong tariff codes for purposes of evading tax.