The Zambia Revenue Authority (ZRA) has assured local clearing companies that the issue of [a few] multinational companies controlling a higher percentage of clearing and forwarding sector in Zambia is being dealt with by the government.
This follows revelations by the Customs Clearing and Forwarding Agents Association of Zambia (CCFFAAZ) President Bruce Kaemba that about 10 multinational clearing companies control a whopping 95% of the local business while over 200 local companies are left to scramble for the paltry 5%.
Kaemba further revealed that one multinational clearing agent whose identity is withheld controls almost 50% of the market, a situation that is said to posse concentration and national security risk. Some local agents called on the Zambian anti-trust agency – the Competition and Consumer Protection Commission to take interest in the revelation.
In a statement made available to the Zambian Business Times – ZBT, ZRA Corporate Communications Manager Topsy Sikalinda said ZRA has decided to extend the pilot phase of the module to end of December 2021.
ZRA has confirmed that they have met with p the executive committees of all clearing associations from Nakonde and have resolved to proceed with the implementation of the Customs Clearing Agents Management Module (CAMM) in a phased approach.
ZRA Commissioner General Kingsley Chanda assured the clearing agents that all fears and speculations would be handled during the extended period adding that the module is being implemented in good faith unlike what is being portrayed by some sections of the clearing sector.
Chanda assured the agents that the module will not take away any business from them and the issue of multinationals controlling a higher percentage in the sector is being dealt with by government.
And on the question of what ZRA has done to prevent dominance of the clearing business by a few multinational, the ZRA Commissioner General stated that the authority presented a proposal to the government last year on how the local clearing companies could be supported and some of those recommendations have already been incorporated in the new Procurement Act.
On the fears that the new module would further shrink the 5% that the local agents have been left with, the ZRA statement stated that the Customs Agents Management Module has been implemented in various countries across the globe and it is part of ZRA’s modernization agenda as it provides for the electronic appointment of customs clearing agents by importers and provides for clearing agents to accept or reject the appointment by importers.
ZRA also reported that the agency has exceeded its target for the first four months of 2021 by collecting K5.8 million above target representing 29% above target for January to April 2021 addng that most of these collections are from direct taxes and customs duties.
