1. What is ZRA Motor Vehicle Duty?

The Zambia Revenue Authority (ZRA) imposes duties on imported motor vehicles based on their CIF (Cost, Insurance, Freight) value and customs value. The duty is calculated as a percentage of these values plus VAT.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( CIF \) — Cost, Insurance, and Freight value in ZMW
• \( Customs\ Value \) — Assessed customs value of the vehicle
• \( Duty\ Rate \) — Percentage duty rate (typically 25-30%)
• \( VAT \) — Value Added Tax (standard 16% in Zambia)

Explanation: The duty is calculated on the combined CIF and Customs Value, then VAT is applied to the total of CIF, Customs Value, and Duty.

3. Importance of Duty Calculation

Details: Accurate duty calculation helps importers budget for vehicle imports, comply with ZRA regulations, and avoid unexpected costs during the clearing process.

4. Using the Calculator

Tips: Enter CIF and Customs Value in Zambian Kwacha (ZMW), select appropriate duty rate (25-30%), and VAT rate (16%). All values must be valid positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is CIF value?
A: CIF stands for Cost, Insurance, and Freight - the total value of the vehicle including purchase price, insurance, and shipping costs to Zambia.

Q2: How is Customs Value determined?
A: ZRA assesses the customs value based on the vehicle's make, model, year, and condition, which may differ from the purchase price.

Q3: Why are there different duty rates?
A: Duty rates vary based on vehicle type (e.g., passenger cars vs. trucks) and engine capacity. The standard range is 25-30%.

Q4: Are there exemptions or reductions?
A: Some vehicles may qualify for duty reductions or exemptions (e.g., electric vehicles, diplomatic vehicles, etc.).

Q5: Is this calculator official?
A: This is an estimation tool. For official duty calculations, consult ZRA or a licensed clearing agent.