Non-Tariff Barriers

Complaint

Complaint number

NTB-000-460  

NTB Type

6.1. Prior import deposits and subsidies  

Complaint

Botswana BURS requires a deposit to be lodged with them prior to allowing any goods, being imported into Botswana, to cross the border. They will not accept a small deposit - enough to cover the VAT charges on the goods in question - they require a standard amount of P25 000. The only way to avoid paying this deposit is to meet the goods at the border and pay the amount which has been determined as owing that very day. It can be very difficult to meet trucks coming from Johannesburg at the border, particularly if you don't stay in Gaborone where most of the trucks cross. This results in many additional costs being incurred by the importer and can result in goods being returned to South Africa at the importers expense. For small consignments, where the VAT owed is only a few hundred Pula, more money can be spent on trying to get to Gaborone, at the right time (which often changes) in order to meet the truck and make the VAT payment, than the VAT amount itself. Perishable food products, if they need to be returned, are often lost completely resulting in major losses.  

Status note

At the 11th meeting of the SADC Sub -Committee on Trade Facilitation held on 23 May 2013 in Gaborone, Botswana Unified Revenue Services (BURS) confirmed the following 3 available alternatives which enabled traders to pay for VAT/Duties without being at the point of entry so as to grant entry of goods:
i) Apply for gross payment account; through this account, the applicant is able to deposit funds into the account in which payable VAT/duties will be debited upon any importation of goods
ii) Apply for deferred account; this account enables importers to import goods and pay the accrued VAT/duties at the end of the each month (as explained on the NTB status notes initially afforded to you).
iii) Cash payment can be made at any BURS office countrywide after which that particular office will immediately liaise with the office at the point of entry of the imported  

Progress update note

On 9th January 2012, Botswana Focal point reported that, to ensure compliance and debt management some control measures should be put in place in Botswana Unified Revenue Services (BURS), however these control measures are not only meant to be a barrier to trade but rather to facilitate it for those complaint traders. Companies with an annual turnover of P500, 000.00 and above are given an option to have a deferred account. This account is there to assist in resolving issues like this reported one. The deferred account enables importers to import goods and pay their dues on a monthly basis. However a certain amount is required as a bond for one to qualify for this option. For those companies with an annual turnover of less than P1million, they are given a limit of importing goods in which the value of duties and VAT do not exceed P20, 000.00 per month and the bond required is P25, 000.00 for those companies with annual turnover of P1million and above, the limit is calculated as 20% of the value of the annual turnover. Therefore all companies involved in trading and interested in such an arrangement are advised to get in touch with the VAT Unit at the BURS head office or call 3638801  

Policy or regulatory NTB

Yes 

Location

Botswana: BURS (Government institution)  

Reporting Country or Region

Botswana  

Country specific trade issue

No  

Date of incident

2011-06-06  

Status

Resolved  

Date of resolution

2013-05-23  

Product Description

All products

Computer-assisted translation

• English
• Arabic
• French
• Portuguese

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Total value

0  

Date reported

2011-09-19 11:00  

Modified

2013-06-10 17:21