By BUUMBA CHIMBULU
THE Zambia Revenue Authority (ZRA) has rolled out the first phase of Electronic Bond Management System (E-Bonds) expected to deal with challenges encountered during the manual process.
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The E-bonds system, although not fully rolled out, was launched on August 4, 2023.
ZRA acting Commissioner General, Ernest Sigande, at the official launch of the system on Friday said the authority had started receiving and processing electronic applications for new and additional bonds.
So far, Mr Sigande confirmed that ZRA has successfully managed to configure 16 guarantors on the system and also received and processed one application for a customs bond.
“We have encountered a number of challenges with manual processes, and manual customs bonds are not spared.
“As at end of 2022, we had outstanding transit obligations valued at K564.54 million and covered by customs bonds. These were broken down as K228.81 million Removals in Transit and K335.73 million for Removals in Bond,” he said.
Mr Sigande said the system would enable real time involvement of the guarantor in the issuance and approval of the bond unlike was currently the case under manual setup;
He said it would also eliminate the inherent human errors in updating of information, among others.
Meanwhile, Pensions and Insurers Association acting Registrar Namakau Ntini said the sector was ready to work with ZRA to ensure that efficiency was achieved in bonds management.
Ms Ntini raised concerns how some industry players had been underwriting bonds and hoped that with the development, ZRA would better manage its interaction with insurers participating in the underwriting of Customs Bonds.
“This is especially as it affects claims management. When, claims are reported real time, there will be no lags in reporting claims.
“Aside from being a revenue management tool, this platform also promotes regional trade and integration, therefore, we should all embrace it,” she said.
And Insurers Association of Zambia Executive Director Nkaka Mwashika, was hopeful that the E-Bonds would resolve challenges experienced during the manual processing of bonds previously.
Dr Mwashika pointed out calling up on bonds several years after they had expired as one of the challenges experienced in the past.
“Insurance cover is for a fixed period of time and holding bonds in per perpetuity is not possible nor practical. We trust that if any bonds need to be called up they will be within a reasonable period of time,” he said.
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