Customs valuation is tallied on a Cost Insurance and Freight (CIF) basis. Most goods fall into one of three tariff bands: 0-5 percent (Capital Equipment and Raw Materials); 15 percent (Intermediate Goods); or 25 percent (Finished Goods). The duty on productive machinery for agriculture, aquaculture, solar energy, and mining is zero percent. Other duty-free items include medicines, pharmaceuticals, veterinary supplies, medical equipment, computer parts, chemicals in bulk, fertilizers, and seeds.
Import Value Added Tax (VAT) is collected on behalf of the VAT Division and is charged on the Taxable Value, i.e., Customs Value + Customs Duty (+ Excise Duty, where applicable) at the rate of 16 percent, leading to sharp price increases on finished goods. A Carbon Emission Surtax is charged on all motor vehicles being imported as well as those visiting and transiting. The Carbon Emission Surtax is an annual charge for those vehicles already in the country based on the engine capacity of the vehicle. Tax regulations in Zambia change frequently; consult the U.S. Department of Commerce Customs Info Database tariff look-up tool, available on trade.gov (free registration required), to estimate duties and taxes; and the Zambia Revenue Authority’s website for the most current information.