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Investment & Legal Framework
The reduction of tariffs to South Africa provide for
delayed liberalization, while the schedule to other
members provide for broader and faster access to
the South Africa market. The tariff schedule applica-
ble to SADC members, with the exception of South
Africa, has three categories. Categories A are those
products that go to zero-duty immediately upon im-
plementation. The tariff for Category B products
gradually goes down to zero-duty over a period of
eight years, and the tariff of Category C products
reaches zero-duty twelve years after implementa-
tion. Category C products are known as sensitive
products, and include for Zambia meat and dairy
products, tea, some flowers, raw sugar, cement, tex-
tiles and clothing, and motor vehicles.
A SADC Certificate of Origin is required for each
consignment of goods and is obtained from the Zam-
bia Revenue Authority.
MEASURES AFFECTING
PRODUCTION AND TRADE
Competition Policy
The Competition and Fair Trading Act aims to en-
courage competition in the economy by prohibition
of anti-competitive trade practices and to regulate
monopolies and concentration of economic power.
The Act protects consumer’s welfare and strength-
ens the efficiency of production and distribution of
goods and services.
The Zambia Competition Commission (ZCC) was
established under the Act, to guard against anti-
competitive business/trade practices and protect
the interest of the consumer. ZCC has handled a
number of notifications for corporate mergers and
acquisitions as well as consumer complaints.
TAXATION
The Tax System
The Ministry of Finance and National Planning is re-
sponsible for the formulation of tax policy, in Zambia
and the implementing agency is the Zambia Revenue
Authority (ZRA). The legislative framework relating to
the regulation and administration of the taxation is
provided for in the Income Tax Act 1966, as amend-
ed. The source of income and residence are the ba-
sis for liability to tax under the Zambian tax regime.
The Common Market for East and Southern Africa
The Common Market for East and Southern Africa
(COMESA) has been operating, in one form or an-
other, since 1981. Through further progress and in-
tegration, economic integration is something sought
to progress from a Free Trade Area (FTA) to an
eventual economic monetary union. The COMESA
FTA became operational on 1st November 2000 with
nine participating countries.
The COMESA FTA is an agreement among mem-
bers not to apply customs duties or charges on
goods traded amongst themselves. The goods eli-
gible for duty-free trade must meet the requirements
set by the COMESA Rules of Origin. Members have
also agreed to eliminate all non-tariff barriers to trade
between them. The nine member countries that are
implementing zero tariffs under the COMESA frame-
work are Egypt, Sudan, Kenya, Djibouti, Malawi,
Madagascar, Mauritius, Zambia and Zimbabwe.
A COMESA Certificate of Origin is required for each
consignment of goods and is obtained from the Rev-
enue Authority of each respective member state.
The Southern Africa Development Community
Members of the SouthernAfrican Development Com-
munity (SADC), composed of 19 countries , signed
a Trade Protocol, which calls for the implementation
of a Free Trade Area. Each country has negotiated
two reduced tariff schedules. One schedule is appli-
cable only for South Africa and another schedule for
all other SADC members. Zambia’s implementation
of its offer, which came into effect on 30th April 2001,
is provided to those countries that provide Zambia
with the SADC reduced tariff schedule.
REGIONAL AGREEMENTS
Lusaka is fast becoming a hub for many regional conferences