By MAIMBOLWA MULIKELELA –

ZAMBIA should apply for safeguard measures from the two regional bodies to protect its infant industry from imported trailers and steel furniture, AFIL Engineering Limited has said.

Currently, trailers imported under the Southern African Development Community (SADC), mainly from South Africa enter Zambia at zero rate.

The company said it was important for Zambia to apply for safeguards like what some of the members of SADC and the Common Market for Eastern and Southern Africa (COMESA) have done to support their infant industry.

“Zambia is yet to apply the measure despite the fact that the country has domesticated the safeguards provisions in the national legislation,” the company said.

In response to a press query, the company said while imported trailers were allowed to enter duty free, the local manufacturers paid duty of 15 per cent on the components and inputs used in production.

“At the same time, the components and inputs used for the local manufacturing of trailers attract duty of 15 per cent, which is clearly a serious anomaly that affects the survival of the local trailer manufacturing sector,” AFIL Engineering said.

It further said the unregulated importation of used trailers, whichenter the market with low declared value and attract only little duty and taxes are competing with locally manufactured

trailers.

The company said the Government should consider invoking the provisions of safeguards to support local value addition andemployment creation.

The company said the reintroduction of import duty on trailers and steel furniture would help the country increase the share of the manufacturing sector to the Gross Domestic

Product (GDP).

“The trailer manufacturing and also the roofing sheet producers in the country has long been requesting the Government to invoke the provisions of safeguards and derogation of some of low duty structure in supporting the ailing local manufacturing sector,” the company said.