Published: 1 hour ago

Zimbabwean shoe manufacturers have applied for the inclusion of additional raw materials under the Shoe Manufacturers Rebate Facility as part of efforts to reduce production costs, improve competitiveness and support growth in the local footwear industry.

The Competition and Tariff Commission (CTC) confirmed that it had received the application under Statutory Instrument 61 of 2017, which provides customs duty rebates on approved imported raw materials used in footwear production.

"The Competition and Tariff Commission hereby notifies stakeholders that it has received an application from shoe manufacturers seeking assistance through the inclusion of additional raw materials under the Shoe Manufacturers Rebate Facility," the commission said in a notice.

"The Shoe Manufacturers Rebate Facility is provided for under the Customs and Excise (Shoe Manufacturers) Rebate Regulations, 2017 (Statutory Instrument 61 of 2017), which grant qualifying shoe manufacturers a rebate on imported duty on specified imported raw materials used in the production of footwear."

The commission said the rebate facility was introduced to strengthen local manufacturing by lowering production costs and improving the competitiveness of locally produced shoes against imported footwear.

"The primary objective of the facility is to reduce production costs for local manufacturers, thereby enhancing their competitiveness against imported finished footwear and supporting industrial development," the commission said.

Among the additional raw materials proposed for inclusion are sewing thread, buff tape, gum paper, water-based cement adhesives, chlorine powder, woven labels, embossing foil, stitching wax, resin fillers, EVA micro HD, shoe laces, reducers, hardeners and stitched uppers with stiffeners.

The proposed rebates range from five percent to 30 percent depending on the category of raw material.

The CTC said it is empowered under Section 34C(1)(c) of the Competition Act [Chapter 14:28] to investigate applications for industry assistance and protection.

Zimbabwe's leather and footwear sector is considered one of the country's strategic value-addition industries, with potential to create employment and contribute to manufacturing sector growth under the government's industrialisation programme.
- The Chronicle