So, all exporters have an obligation to make sure that the revenues earned when they exported are brought back to Zimbabwe where they got the privilege to use the nation’s resources to earn that foreign exchange. This is the case anyplace else.
The third point is, thanks to Mugabe’s government, and to former central bank governor Gideon Gono’s destructive policies, Zimbabwe has the pathetic distinction of being currency-less, using a hotchpotch of other nations’ currencies, mainly the US dollar. As such, Zimbabwe must earn the currencies it uses via exports, foreign direct investment and remittances among other limited options.
With a few thousand exporters and 15 million citizens who want to have the value in their banks in cash, the challenge is onerous, especially given that some of the cash leaks illegally. In short, we all want our money in US dollars, but we don’t all earn US dollars. This includes the President and his cabinet ministers. For example, a few hundred thousand civil servants all want to be paid in US dollars, but they don’t export anything. So do millions of Zimbabweans. This presents a big challenge.
Because of the above, exporters must bring back all value earned from exports. This is standard all over the world. In Zimbabwe, exporters are licensed – it doesn’t matter whether it is an open licence or closed/restricted licence. When you are licensed to export, you do so on certain conditions and all exporters would be familiar with the procedures.
Key parties to exports are your bank, referred to as an authorized dealer – because they are some sort of agent for the central bank, the exporter, tax agency Zimra and the customer on the other side of the border. For the Zimbabwean exporter, the procedures are clear. These procedures are put in place to make sure that the nation’s exports are properly accounted for. Unless smuggled, no exports leave the country without being declared to Zimra.
This declaration is done on the now too familiar customs declaration form 1 (CD1), working with your bank (the authorized dealer), where the exporter declares the exports value and freight among other things. If you are an exporter, it is a condition of exporting that you must receive the money due on the exports within 90 days, which is why the CD1s must be acquitted within 90 days. In other words, you should not send value in goods and services that belong to the nation for nothing.
The earned revenues must be repatriated back to the country. Their repatriation does not mean it’s now state money – it’s still the exporter’s money. The repatriation means non-exporters, who do not have the privilege of the licence an exporter holds, can also access foreign exchange.
So the list that Mnangagwa released is a list of people who moved money of out the country through official channels. All exporters know when they exported, what they exported and when they should have gotten the proceeds repatriated to Zimbabwe, a condition upon which they exported. You don’t export and then keep the funds offshore. Exporters must therefore ensure funds are repatriated.
While the government is very blameworthy for cash shortages, for example, through the printing of money artificially priced at par to the US dollar, part of the cash shortage problem is due to the non-repatriation of export earnings. This is delinquency on exporters’ part. If there are reasons why an exporter has not repatriated export earning within the stipulated 90 days, it is their duty to explain their challenge to the state which licensed them to export. I suspect this is why there was a moratorium of 90 days.
Continued next page
(598 VIEWS)
