Duty-free week excites businesses

 Local businesses and traders say government’s move to finally implement the Duty-Free Week is boon for businesses eager to use the window to grow their enterprises.

The Duty-Free Week as pronounced in Parliament in the 2021/22 Budget Statement is a week set aside once every financial year to allow the public to import goods with duty not exceeding $3 000 (about K2.5 million) without paying duty at the border.

Minister of Finance Felix Mlusu has since approved guidelines for the Duty-Free Week, which will run from this January 23 to January 29.

In an interview yesterday, Cross-border Traders Association of Malawi president Steve Yohane said they see this as an opportunity to improve their incomes.

He said: “We applaud government for finally implementing this important measure.

“Though the ceiling is limiting, the provision would still go a long way to boost revenue for businesses. We, however, want more sensitisation on this as it is a new feature in the country.”

Yohane said the introduction of such initiatives that are friendly to cross-borders will help them diversify economic activities and contribute to the country’s economic development.

Malawi Confederation of Chambers of Commerce and Industry president James Chimwaza said the window seems to be concentrated to individuals

 but said businesses are also poised to benefit from the same.

He said: “Businesses wishing to import in small quantities would still use this window to grow their businesses.

“We, however, want government to educate the masses on this so that benefits are seen at the end.”

The Malawi Revenue Authority’s (MRA) notice on the initiative shows that goods qualifying for the provision are those that shall only be imported during the duty-free week as defined in the Customs and Excise Act.

MRA has also indicated that categories of goods are liable regardless of whether they are for commercial use or for personal use.

To be considered for the provision, importers are supposed to obtain required permits from relevant authorities for specific goods.

A government gazette dated January 14 2022, shows that government has maintained the $3 000 goods value ceiling while limiting the cover to imports bought within the seven-day period.

Read the regulations: “There is hereby declared a Duty-Free Week in the week beginning 23rd day of January 2022 and ending 29th day of January 2022, and hence the provisions of the Customs and Excise [Duty-Free Week] Regulations, 2022 shall, accordingly, be applicable.

“Where a Duty-Free Week has been declared, only the following goods shall qualify for suspension of duties under regulation 3—Goods whose customs value for duty purpose does not exceed $3 000; and (b) only those goods imported and entered for clearance during the Duty-Free Week.”

In an earlier inteview, Indigenous Businesses Association of Malawi president Mike Mlombwa welcomed the Duty-Free Week, but expressed worry over the conditions which restrict beneficiaries to those that purchase the goods within the week.

“A week is short for some business people to travel abroad, find products and ship them in,” he said.

The Duty-Free Week, a Tonse Alliance campaign promise prior to the 2020 Fresh Presidential Election, has been set aside to allow local businesses and individuals to import goods without paying any duty at the border