Businesses to acquire export documentation

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Shamiso Dzingire, Business Reporter
BUSINESSES have been called upon to acquire appropriate export documents to realise benefits of compliance and allow financial authorities to capture accurate statistical data regarding the export sector.

People’s Own Savings Bank (POSB) acting corporate and investment executive, Mr Farai Chirikure, said this on the sidelines of the recent second session of the Marketing and Branding for International Competitiveness (MBIC) training workshop in Bulawayo. He said obtaining proper export documentation creates an information base, which assists in budget planning and development of other sectors. The training was organised by export promotion agency, Zimtrade.

“We want to encourage all exporters to approach banks and get all the respective documents such as the Form CD1s/ CD3s/ TRAS1 / TRAS2 / PTS 1 and GSD. Instead of smuggling goods across the porous borders without proper documentation, exporters should get relevant documentation to move their goods across frontiers,” said Mr Chirikure.

“If the client declares their goods through these exports documents, they will not lose anything. The Central Bank does not deduct anything from them because the documents are meant for data capturing.”

He said having the necessary export documents enables exporters to claim export incentives given by the Reserve Bank of Zimbabwe (RBZ) to assist them in meeting local production costs, which in turn make their products cheaper on the export markets.

Mr Chirikure further noted that acquiring appropriate documents enables exporters to claim export credit insurance against political and economic risks associated with the export trade.

“With the resuscitation of the Export Credit Guarantee Corporation (ECGC), exporters can insure products with ECGC in the event that the products are not paid for or are damaged in transit or any risks that are associated with export trade,” he explained.

“That can only happen if the export has been done above board with all the export documents available, which are CD1s, CD3s or any other available documents that can be used to prove that the goods were exported but payment was not received hence we encourage everyone in the export business to go through proper channels.”

Mr Chirikure also encouraged companies to approach organisations like Zimtrade to assist in identifying new markets and acquiring documentation.

Speaking at the same event, ECGS head of operations Mr Andrew Mafukidze said his organisation offers 90 percent and 95 percent export credit insurance for large companies and Small and Medium Exporters (SME) respectively.

Mr Mafukidze stressed that export credit insurance was a vital element of the economic infrastructure as it allows exporters to accept foreign and local transaction risks while avoiding possibilities of catastrophic losses.

@ShamisoDzingire

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