• Henred Fruehauf Zambia Limited challenged ZRA’s decision to deny preferential treatment of six second-hand trailers.
• The Company claimed that the trailers were entitled to preferential treatment for importation into Zambia.
• ZRA declined to accord preferential treatment to the second-hand trailers

Zambia Revenue Authority (ZRA) says the Supreme Court of Zambia has ruled that the authority is entitled to verify whether goods imported from a SADC Member State conform to what is stated in a SADC Certificate of Origin issued by the exporting SADC Member country.
Authority Corporate Communications Manager Topsy Sikalinda told Money FM News that this is in a case in which Henred Fruehauf Zambia Limited challenged ZRA’s decision to deny preferential treatment of six second-hand trailers that the company imported into Zambia from South Africa in 2019, for use in the transportation of goods.
Mr. Sikalinda stated that when the trailers arrived at the Zambian border accompanied by SADC Certificates of Origin issued from South Africa, the clearing agents for Henred Fruehauf Zambia Limited claimed that the trailers were entitled to preferential treatment for importation into Zambia without payment of customs duty because they were partially produced in a SADC Member State, which is South Africa.
“However, ZRA declined to accord preferential treatment to the second-hand trailers on the basis that the trailers did not satisfy the provisions of rule 4(1) h of Annex 1 to the SADC Protocol on Trade.”
“ZRA argued that the trailers could only obtain preferential treatment where the trailers were imported into Zambia for the collection or recovery of raw materials and not for use in the transportation of goods. Since the trailers were imported for use in the transportation of goods, they were subject to the payment of customs duty,” Mr. Sikalinda said.
He added that Henred Fruehauf Zambia Limited challenged ZRA’s decision in the Tax Appeals Tribunal, which also ruled in favor of the Authority, prompting Henred Fruehauf Zambia Limited to appeal to the Supreme Court.
“Before a panel of Supreme Court judges consisting of the former Acting Chief Justice Michael Musonda, SC and Supreme Court judges A.M Wood and N.K Mutuna, Henred Fruehauf Zambia Limited argued that ZRA should have accepted the mere production of the Certificates of Origin from South Africa as proof of originating status for the second-hand trailers and allowed the trailers to be cleared under preferential treatment,” he added.
He however said the Supreme Court dispelled the argument stating that ZRA is authorized, in case of doubt, to verify the statements contained in the certificate of origin issued by a SADC Member State.
According to Mr. Sikalinda, the Supreme Court further held that there was no ambiguity or misinterpretation of the rules in the SADC Protocol on Trade and dismissed the appeal with costs to ZRA.