ZIMRA Power Upheld: High Court Deals Blow to Africa Century in $1.2M Custom Lien Battle

HARARE — The Harare High Court has delivered a landmark ruling reinforcing the sweeping powers of the Zimbabwe Revenue Authority (ZIMRA) to seize assets over unpaid taxes, even when those assets are claimed by third-party financiers.

In a judgment delivered on March 23, 2026, Justice Musithu dismissed an application by Africa Century Limited, a prominent microfinance institution, which sought the release of a luxury Toyota Land Cruiser VXR detained by tax authorities. The court ruled that ZIMRA acted within its mandate under the Customs and Excise Act when it placed a lien on the vehicle to recover over US$1.2 million in unpaid duties.

The legal battle began after Africa Century financed the vehicle for Brian Justice Enterprises (BJ Enterprises) under a lease-to-buy agreement. Although Africa Century provided the funding and settled the initial duties, ZIMRA impounded the SUV in September 2024. A post-clearance audit had revealed that BJ Enterprises the entity officially listed as the importer owed the state a staggering US$1.2 million in unrelated customs debts. ZIMRA argued that because the vehicle was imported in the debtor's name, it was a fair game for a statutory lien.

Africa Century challenged the seizure, arguing it was the "true owner" and financier. However, Justice Musithu’s ruling clarified a critical distinction in Zimbabwean trade law: Financing does not equal "Importer" status.

"The mere fact that the applicant provided funding did not automatically make it the importer or owner of the goods for customs purposes," the court held. Because official customs documentation identified BJ Enterprises as the consignee, the vehicle fell under the scope of Section 201 of the Customs and Excise Act.

The ruling serves as a stern warning to banks and microfinance institutions across Zimbabwe. Legal experts note that the decision sets a precedent where State claims take priority over private financial interests in customs matters.

Key Takeaways from the Ruling:

• Documentation is King: Import records, not private contracts, determine tax liability.

• Lien Seniority: ZIMRA can attach any goods linked to a debtor, regardless of third-party financing.

• Lender Risk: Financiers now bear a significantly higher risk when assets are imported in a client's name rather than their own.

While the court dismissed the application for lack of merit, Justice Musithu declined to award costs against Africa Century, noting the case raised "important legal questions of public interest" regarding the intersection of finance and tax law.

ZIMRA Africa Century High Court ruling