By Rex Mphisa
SHIPPING and agents have rebuffed the Zimbabwe Revenue Authority (Zimra)’s proposal to licence only companies with employees registered as accountants with Public Accountants and Auditors Board (PAAB) as the clearing agents.
In its proposal Zimra would only award bonds for clearing to PAAB members allowing them monopoly of shipping business shutting out hundreds of small companies whose workers are not accountants.
The shipping agents in their rebuttal said the demand by Zimra is a “jurisdictional mismatch” and does not conform with the Customs and Excise Act.
“ The Shipping and Forwarding Agents Association of Zimbabwe has carefully reviewed this directive and reiterates that the position does not align with existing laws, both in principle and in practice. Our position, which is founded on legal and operational grounds, is summarized below,” said Mr A Mtembo of SFAAZ.
He was updating members of his organisation of his response to Zimra’s demands.
“PAAB was established to regulate the accounting and auditing professions. Clearing Agents, however, operate under the Customs and Excise Act, with core competencies in customs law, tariff classification, trade facilitation, and international logistics,” he said.
SFAAZ functions fall outside the statutory mandate of PAAB, he said.
“Requiring Clearing Agents to register as accountants creates an unjustified regulatory overlap. It is a jurisdictional mismatch setting an international practice and precedent never seen before,” said Mtembu.
Internationally, Customs Brokers and Clearing Agents are regulated by Customs Authorities or specialized trade regulators, not national accountancy boards, he said.
“This distinction reflects the specialised nature of the profession and is consistently applied across major trading jurisdictions,” he said.
The demand by Zimra, he said, had operational and practical constraints in that compliance would require members to meet the academic and professional standards of qualified accountants, which are neither relevant nor proportionate to customs clearing functions.
The proposed timelines for compliance are also unrealistic and inconsistent with accepted international standards for professional re-regulation.
“Revenue law does not imply accountancy regulation.
While Clearing Agents interact with revenue legislation, this does not convert the profession into tax accountancy, nor does it create an automatic obligation for PAAB registration,” said Mtembu.
He said the new requirement will increase the cost of doing business.
“The directive introduces an additional and significant layer of compliance costs, further increasing the cost of doing business in an already high-cost operating environment,” he said.
“According to Statutory instrument 154 of 2001 which is in force operational directors and any employee of Clearing Agents with access to the Customs clearing portal to possess a minimum qualification in Customs Legislation And Procedures at Diploma Level, certified by the Ministry responsible for Higher and Tertiary Education and this in our view is adequate and appropriate.”
SFAAZ said it is actively engaging the Ministry of Finance, Economic Development and Investment Promotion and other relevant stakeholders to contest this directive and to seek lawful, sector-appropriate regulatory clarity.
HE said SFAAZ members will be updated on the outcome of these engagements.
“SFAAZ maintains that Clearing Agents are not tax Accountants and should not be regulated as such.
SFAAZ remains firmly committed to protecting the professional identity, legal standing, and operational sustainability of Clearing Agents. Our primary focus remains advocacy for a lawful, sector-specific regulatory framework, while simultaneously ensuring that members are not exposed to abrupt operational disruption.”
It is understood a few shipping companies who have a desire to take over the shipping industry from smaller players were plotting the new reform.
The Shipping & Forwarding Agents’ Association of Zimbabwe (SFAAZ) is a voluntary industry body founded around 1955 that represents freight forwarders, customs clearing agents, shipping lines, and bonded warehouse operators in Zimbabwe.
Located in Harare, SFAAZ regulates industry standards, provides training, and acts as a liaison between its members and authorities.
Ironically, the bulk of the revenue officers expected to superintend over the work of clearing agents are not registered with PAAB.