12.     Time of import

            (1) An import of goods occurs-

     (a)     in the case of goods required to be entered for home consumption under the Customs and Excise Duty Act, when the goods are so entered; or

     (b)     in any other case, when the goods are brought into Botswana.

            (2) Where goods are imported and entered in a customs and excise warehouse but are not entered for home consumption, a supply of such goods before they are entered for home consumption shall be disregarded for the purposes of this Act.

            (3) An import of services occurs at the time determined by applying section 8 to the import on the basis that the import is a supply of services.

13.     Value of import

            (1) The value of an import of goods is-

     (a)     in the case of goods required to be cleared under the Customs and Excise Duty Act, an amount equal to the sum of-

           (i)       the transaction value of the goods for customs duty purposes in terms of section 75 of the Customs and Excise Duty Act;

          (ii)       the cost of insurance and freight; and

          (iii)       the amount of any duty levied under the said Act in respect of the importation of such goods; and

     (b)     in the case of goods not required to be cleared, the greater of-

           (i)       an amount equal to the sum of-

                      (A)     the free-on-board value of the goods; and

                      (B)     an amount equal to the cost of insurance and freight; or

          (ii)       the fair market value of the import.

            (2) Notwithstanding the provisions of subsection (1), if a motor vehicle is imported by an individual for the individual's own use and not for sale, the Commissioner General may determine the value of the import of such vehicle.

            (3) Subject to subsection (4), the value of an import of services is the amount of the consideration for the import.

            (4) Where-

     (a)     an import of services is made for no consideration or for a consideration that is less than the fair market value of that import; and

     (b)     the supplier and the recipient are related persons, the value of the import is the fair market value of the import.

            (5) Where a portion of the price of an import of services represents tax imposed by this Act that is not accounted for separately, the value of the import is the price reduced by an amount equal to the tax fraction multiplied by that price.

            (6) An individual dissatisfied with a decision under subsection (2) may appeal against the decision only in accordance with the provisions of Part VIII.

14.     Exempt import

            An import of goods or services is an exempt import where-

     (a)     the import is specified in the Third Schedule; or

     (b)     the import would be a zero rated supply under section 10 or an exempt supply under section 11 if it were a supply of goods or services in Botswana.

15.     Import declaration and payment of tax

            (1) Where tax is payable on an import of goods-

     (a)     in the case of goods required to be entered for home consumption under the Customs and Excise Duty Act, the importer shall, upon such entry, furnish the Commissioner General with an import declaration and pay the tax due on the import in accordance with the arrangements referred to in subsection (5);

     (b)     in the case of goods imported from Lesotho, Namibia, Republic of South Africa, or Swaziland, the importer shall, upon import, furnish the Commissioner General with an import declaration and pay the tax due in respect of the import in accordance with the arrangements referred to in subsection (5); or

     (c)     in any other case, the importer shall, at the time of the import, furnish the Commissioner General with an import declaration and pay the tax due in respect of the import.

            (2) Where tax is payable on an import of services, other than where section 4(14) applies, the recipient of the services under section 7(2)(c) shall, within 30 days after the time of the import, furnish the Commissioner General with an import declaration and pay the tax due in respect of the import.

            (3) An import declaration under subsection (1) or (2) shall-

     (a)     be in the form prescribed by the Minister;

     (b)     state the information necessary to calculate the tax payable in respect of the import; and

     (c)     be furnished in the manner specified by the Director.

            (4) Where-

     (a)     a person carries on activities outside Botswana which do not form part of any taxable activity of the person; and

     (b)     in the course of carrying on those activities outside Botswana, services are rendered for the purposes of any taxable activity of the person; and

     (c)     if those services were rendered by any other person, the rendering of the services would be an import of services for the purposes of this Act, the services shall be treated as an import of services received by the person referred to under paragraph (a) when the services are rendered in respect of a taxable activity carried on by the person for an amount equal to the fair market value of the import.

            (5) The Director of Customs and Excise-

     (a)     shall collect, at the time of import and on behalf of the Commissioner General, any tax due under this Act on an import of goods and, at that time, obtain the name and the VAT registration number, if any, of the importer, the import declaration, and the invoice values in respect of the import; and

     (b)     may make arrangements with Botswana Postal Services to perform such functions on his behalf in respect of imports through the postal services.

            (6) Notwithstanding subsection (5), the Commissioner General may authorize an importer who is a registered person to pay tax within 25 days after the end of the month in which the goods are imported, where the importer posts security deemed adequate by the Commissioner General, or the Commissioner General is satisfied that the importer has regularly paid all tax due on imports within the prescribed period; and the Commissioner General shall notify the Director of Customs and Excise of the name and VAT registration number of the person entitled to deferral under this subsection.

            (7) Except where the contrary intention appears, the provisions of the Customs and Excise Duty Act, relating to the import, transit, coastwise carriage, clearance of goods, and payment and recovery of duty shall, with such exceptions, modifications, and adaptations as the Minister may by regulation prescribe, apply, so far as relevant, to the tax charged under this Act on the import of goods.

            (8) A person who fails to furnish an import declaration as required by this Act commits an offence and is liable on conviction to a fine not exceeding P5,000 or to imprisonment for a term not exceeding 1 year, or to both.

            (9) Where a person convicted of an offence under subsection (8) fails to furnish the import declaration within a further period specified by the Commissioner General by notice in writing, that person commits an offence and is liable on conviction to a fine of P50 for each day during which the failure continues and to imprisonment for three months without the option of a fine in lieu of imprisonment.

            (10) A person who fails to furnish an import declaration within the time required under this Act is liable for a penalty which is the greater of-

     (a)     P50 per day for each day or part thereof that the return or import declaration remains outstanding; or

     (b)     an amount equal to 10 per cent of the tax payable for the period of such import declaration, for each month or part thereof that the return or import declaration remains outstanding.

            (11) The penalty imposed under subsection (10) shall not exceed the amount of tax payable in respect of the return or import declaration.

            (12) A person who fails to pay tax payable on import in accordance with this section on or before the due date, is liable for a penalty which is the greater of-

     (a)     P50 per day for each day or part thereof that the tax remains outstanding; or

     (b)     an amount equal to 10 percent of the tax outstanding, for each month or part thereof that the tax remains outstanding.

            (13) The penalty imposed under subsection (12) shall not exceed the amount of unpaid tax.

            (14) A penalty paid by a person under subsection (12) shall be refunded to the person to the extent that the tax to which it relates is subsequently determined not to have been due and payable.

            (15) A penalty imposed under subsection (12) is in addition to any interest payable under section 22.