Statutory Instrument 212 of 2019 – Exchange Control (Exclusive Use of Zimbabwe Dollar for Domestic Transactions) Regulations, 2019

S.I. 212 of 2019
1355
Statutory Instrument 212 of 2019.
[CAP. 22:05
Exchange Control (Exclusive Use of Zimbabwe Dollar for
Domestic Transactions) Regulations, 2019
IT is hereby notifi ed that His Excellency the President, in terms
of section 2 of the Exchange Control Act [Chapter 22:05], has made
the following regulations:—
Title
1. These regulations may be cited as the Exchange Control
(Exclusive Use of Zimbabwe Dollar for Domestic Transactions)
Regulations, 2019.
Interpretation
2. (1) In these regulations—
“designated goods” means goods that in terms of the Customs
and Excise Act [Chapter 23:02] are designated to be
luxury goods for duty payment purposes;
“diplomatic mission” has the same meaning as “mission” in
the Privileges and Immunities Act [Chapter 3:03];
“domestic transaction”, subject to section 4, means any
transaction within Zimbabwe whereby—
(a) goods or services are—
(i) offered for sale or attempted to be offered
for sale; or
(ii) sold by auction; or
(iii) exposed, displayed or advertised for sale; or
(iv) sold under an agreement in terms of the Hire-
Purchase Act [Chapter 14:11] or by means
of staggered payments or instalments; or
(v) transmitted, conveyed, delivered, distributed,
possessed or prepared for sale; or
(vi) bartered or otherwise exchanged or disposed
of for valuable consideration;
(b) any, fee, or levy or commission or other valuable
consideration is payable;
Exchange Control (Exclusive Use of Zimbabwe Dollar for
Domestic Transactions) Regulations, 2019
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“Exchange Control Regulations” means the Exchange Control
Regulations, 1996, published in Statutory Instrument
109 of 1996, or any law that may be substituted for the
same;
“foreign currency” means the British pound, the United States
dollar, the South African rand, the Euro, the Chinese
Yuan, Indian Rupee, Japanese Yen, the Botswana pula,
or any other foreign currency declared to be such by the
exchange control authority;
“gazetted regional or international organisation” means any
such organisation upon which privileges and immunities
have been bestowed by the President in terms of section
7(1) of the Privileges and Immunities Act [Chapter
3:03];
“Guests of State” means diplomats and members of staff of
gazetted regional or international organisations.
(2) Any word or phrase to which a meaning has been assigned
by the Exchange Control Regulations shall bear the same meaning
when used in these regulations.
Exclusive use of Zimbabwean currency for domestic transactions
3. (1) Subject to section 4, no person who is a party to a domestic
transaction shall pay or receive as the price or the value of any
consideration payable or receivable in respect of such transaction
any currency other than the Zimbabwean dollar.
(2) In particular (without limiting the scope of subsection
(1)) no person shall—
(a) quote, display, label, charge, solicit for the payment of,
receive or pay the price of any goods, services, fee or
commission in any currency other than the Zimbabwe
dollar; or
(b) settle any obligation by barter or otherwise for a
consideration that is not denominated by, or is not valued
in, the Zimbabwean dollar; or
(c) receive, demand, pay or solicit for payment by means
of any token, voucher, coupon, chit, instrument, unit
S.I. 212 of 2019
1357
of account or other means or unit of payment (whether
material or digital) that is pegged to, referable to or
used in substitution for any foreign currency or unit of
a foreign currency.
(3) Any person who contravenes subsection (1) shall be liable
to—
(a) a category 1 civil penalty if the contravention is completed
but irrremediable; or
(b) a category 4 civil penalty if the contravention is a
continuing one.
Transactions excluded from scope of “domestic transactions”
4. The following transactions are not within the scope of the
defi nition of “domestic transaction” in subsection (1) for the purposes
of these regulations—
(a) the making of the payments referred to in section 23
(“Zimbabwe dollar to be the sole currency for legal
tender purposes from second effective date”) (4) and
(5) of the Finance (No. 2) Act, 2019;
(b) any of the following transactions in respect of which a
foreign currency is required to be paid—
(i) carbon tax payments for foreign registered vehicles;
(ii) third party insurance payments for foreign
registered vehicles;
(iii) road access fees for foreign registered vehicles;
(iv) electronic sealing fees and fi nes charged by or to
transborder logistics enterprises or transborder
electronic tracking or tagging enterprises;
(v) payments to local insurance companies for bond
guarantees or bonds for designated goods;
(vi) the payment by foreigners in transit of deposits in
terms of any law;
(c) payments of duty at ports of entry by individual travellers
who opt to pay such duties in foreign currency, despite
the fact that the dutiable goods in question are not
designated goods;
Exchange Control (Exclusive Use of Zimbabwe Dollar for
Domestic Transactions) Regulations, 2019
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(d) transactions conducted through authorised dealers for
which payments are permitted to be made in any foreign
currency in terms of any directive issued in terms of
section 35 of the Exchange Control Regulations;
(e) transactions in respect of which any other law expressly
mandates or allows for payment to be made in any or
a specifi c foreign currency.
(f) transactions referred to in section 5.
Guest of State fuel outlets
5. Despite these regulations it is permissible to tender foreign
currency in payment for petrol, diesel or other petroleum product
dispensed to Guests of State at a specifi ed Guest of State fuel outlet,
that is to say, any fuel outlet licensed by the Zimbabwe Energy
Regulatory Authority established by section 3 of the Energy Regulatory
Act Authority Act [Chapter 13:23] to sell petrol or diesel or other
petroleum product in United States dollars to Guests of State.
Supplement to the Zimbabwean Government Gazette Extraordinary dated the 27th September, 2019.
Printed by the Government Printer, Harare.