29/01/2026
The 2026 customs environment in Zambia marks a shift toward aggressive digitalization and deliberate protectionism for local MSMEs. Following the 2026 Budget Address and recent ZRA directives, the regulations for small-scale importers have been streamlined to reduce costs while strictly enforcing electronic compliance.
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🛠️ Thresholds & Documentation Reforms
The most significant change for small-scale importers in 2026 is the further simplification of "Petty Consignments."
• The $2,000 Threshold: Consignments with a value (CIF) between $1,000 and $2,000 are officially categorized as "Small Value Consignments."
• No Clearing Agent Required: For goods under this $2,000 cap, importers are no longer required to hire a professional clearing agent. You can self-declare using the simplified Form CE 6 at the border.
• Export Simplification: If you are "back-trading" (exporting small quantities), goods valued below $2,000 are now exempt from the requirement to submit a formal Bill of Entry (Form CE 20), drastically cutting down on paperwork.
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Tax Easing & Compliance
The government has moved to make tax compliance "cash-flow friendly" for small businesses.
• Turnover Tax Threshold: The threshold for simplified tax treatment has been solidified at K5,000,000. If your annual turnover is below this, you stay on the 5% Turnover Tax rather than the complex 30% Corporate Income Tax.
• Late Payment Penalties: In a major win for MSMEs, the penalty for late turnover tax payment has been slashed from 5% down to 0.5%, acknowledging the seasonal nature of cross-border trade income.
• Smart Invoice Mandate: To claim any input VAT or verify business expenses, all transactions must now go through the ZRA Smart Invoice system. Manual receipts are increasingly rejected for tax deductions.
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2026 Duty Hikes & Exemptions
Zambia has introduced "Protective Tariffs" to encourage local production, which directly impacts what small-scale importers choose to source.
What is Now More Expensive to Import?
Product Category 2026 Change Reason
Dairy (Cheese, Yogurt) Duty increased 25% → 40% To protect Zambian dairy farmers.
Single-Use Plastics Excise increased 30% → 100% Environmental "Green Tax."
Imported Water/Soda Excise increased to K1.00/Litre Favoring local bottling plants.
Selected Steel/PVC New Surtaxes/Duties Protection of local manufacturing.
🟢 What is Now Cheaper to Import?
• Electric Vehicles & Tricycles: Customs duty on Complete Knock-Down (CKD) kits for local assembly is now 0%.
• Dairy Machinery: The 15% duty on milk pasteurization equipment has been removed to help small traders move into processing.
• Alternative Energy: Incentives for solar and geothermal equipment remain at 0% duty to combat regional power deficits.
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The "Tripartite" TSTR Rollout
As of January 2026, the COMESA-EAC-SADC Tripartite Simplified Trade Regime (TSTR) is being actively piloted at the Nakonde and Chirundu borders.
• Common List: Traders can move "eligible" goods (mostly agricultural and basic processed foods) duty-free if they carry a Simplified Certificate of Origin.
• Trade Information Desks (TIDs): These have been upgraded to provide "Instant Dispute Resolution" for traders facing harassment or incorrect duty assessments.
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Important Note on Payments
While customs procedures are easing, the cost of moving money has increased. The 2026 Mobile Money Levy has seen an upward adjustment (e.g., transfers over K5,000 now carry a higher fee), which small-scale importers should factor into their "landed cost" calculations.
