Control of Goods (Price Control) (Clothing Prices) Order, 1981

1. This Order may be cited as the Control of Goods (Price :. Control) (Clothing Prices) Order, 1981. Interpret&• tion

2. In this Order, unless the context otherwise requires- " clothing " means wearing apparel including socks and stockings but excluding footwear; " large manufacturer " means a person who manufactures any clothing and distributes at his own expense the clothing so manufactured, either himself or through an agent or a distributor within Zambia, and who is re�ered as such under paragraph 9 of.this Order; 11 made to measure manufacturer " means a tailor who, or a tailoring shop or an establishment which, makes dresses, jeans, trousers, suits, jackets, shirts or any other garment from cloth on a made to measure basis, using his own materials; " manufacturer " means a large manufacturer, or a small manufacturer 1but excludes a made to, -measure manufacturer; "mark-up" means the price less prime cost; " Permanent Secretary " means the Permanent Secretary to the Ministry of Commerce and Industry; " price " means the aggregate of the prime cost and the mark-up; · " prime cost " means the cost. of direct materials including primary packing· materials ( other than materials used for bulk packing), zips, buttons and trimmings used Oopiu' of this Statutory Instrumen& can be obtained from th& Govemmen.i Primer, P.O. Bo:,; 30136, Lu.aka, PM lOn ea<Jh, 68 Statutory Instruments 13th February, 1981 and the cost of direct labour expended, excluding all overheads or any other kind of expense incurred, in the manufacture of clothing; · " retailer " means a person who holds a r� lice��clothing .in the course of his business topersons reasonably believed by him to purchase the clothing for purposes other than resale; " small manufacturer " means a manufacturer who is not a large manufacturer or made to measure manu­ facturer; " wholesaler " means a person who holds a wholesale �g_Jicence and who buys in bulk from a large manufacturer or a small manufacturer, for the purposes of resale- (a) to a consumer through a retailer; or (b) direct to a consumer in bulk. Maximum prices of clothing 3. No. p�rson shall sell, offer or expose for. sale anywhere in Zambia, clothing manufactured in Zambia at a price exceed, ing- . · (a) in the case of sale by a manufacturer to a wholesaler, the appropriate price calculated in the manner specified in paragraph (a) of the Schedule hereto; (b) in the··case of sale by a manufacturer to a retailer, tho appropriate price calculated in the manner specified in paragraph (b) of the Schedule hereto; . ·(o) ·. in the case of sale by a retailer to the consumer, the 1 appropriate •price calculated in the manner specified in paragraph (o) of th� Schedule h.ereto; (d) in the case of sale by a retailer to t�J!D'.l6]:, the appropriate price calculated in the manner specified in paragraph (d) of the Schedule hereto;· and · ( e) in the case of sale by a made to measure manu- . facturer, the appropriate price calculated in tho manner specified in paragraph (e) of the. Schedule hereto. · Permissible increase up to ten per oentum on prime coat in specified cases , 4·. The maximum• mark-up specified in sub-paragraph (a) or (b) of paragraph 3 may be increased by a inaxinium of ten per centum on prime �cost by the large manufacturers who are registered as such with the Ministry of Commerce and Industry: . ' . Provided that the large manufacturer undertakes to supply his clothing to all parts of Zambia without any · charge for transport0or delivery_to the buyers . . . 5. No ·manufacturer shall ·sell 0°r. offer or expo�� for sale clothing unless there is printed or stamped on it- , (a) the maximu;,,_ retail price ··calc1J.lated in. accordance with_ paragraph 3; 13th February, 1981 -Statutor1J I nstrunients ,09 ·.•.·. ,. ·:· (b) the words "made in: Zambia", and the·name cif,the · factoryin'which'such clothingwasmanufactured·. · · ·-. ·o. Every manufacturer or made to measure manufacturer ; : . . . . . . ' •shall� (a) keep and maintain books of accounts and documents showing full details of the prices charged for all items of clothing manufactured, the details. (!f · profits or losses made thereon and, on demand, m11,ke available such books of accounts and documents to the Price Controller or any of his officers for inspection during . the normal business hours; and ,· · ' · ' (b) if the price stamped on any clothing is found' to: be incorrect upon inspection, stamp, or cause to be . stamped thereon the correct price within seven days · of the. rec�ipt of !' written notice of the incorr�c�ne��- .

7. Every manufacturer or made to measure manufa�urer or wholesaler shall issue or cause to be issued an invoice for every sale of clothing showing the prime cost of each item of clothing so sold, the number .of items of clothing sold, the price of each such item and the aggregate thereof.

8. (I) Every manufacturer who wishes to distribute clothing manufactured by .him. to any part of Zambia and''intends to charge the increase referred to in paragrapli '4 shall apply for regietration as a large manufacturer, and if he is so registered he shall · not charge to a buyer . of. the clothing sold within Zambia any cost or expense incnrred by him in transporting or delivering the goods to the bnyer. . · · ·· Maintenance of books of accounts for inspection Invoices on sales Procedure for registra­ tion (2) An application for registration shall,. int�r alia, contain­ (a) .the name and address of the manufacturer; (b) the trade mark, brand or other distinguishing mark ., ot the goods; • (c) details of the existing distribution arrangements and the arrangement for distribution throughout Zambia; and (d) the number of agents in each province (if any), and their addresses.

9. (I) Upon receipt of the information specified in sub­ paragraph (2) of paragraph (8) the J\finistry of Commerce and Industry may register the applicant as a large manufacturer if the Permanent Secretary is satisfied that the manufacturer will have the resources or means to distribute the clothing to every part of Zambia. Registration as large mn.nu­ footurer (2) Where the Permanent Secretary has refused to register any person as a large manufacturer, such person may, within thirty days of being informed of the refusal, appeal in writing to the Minister, whose decision in the matter shall be final. 70 Sta.lutory lMtrumenf,i 13th February, 19B1 (3) Where the Permanent Secretary is satisfied that any large manufacturer has failed to comply with any of the provisions contained in this Order, he may cancel the registra­ tion of such manufacturer and upon receipt of notification of the cancellation, the manufacturer shall cease to be a large manufacturer. ( 4) Where the Permanent Secretary has cancelled registra­ tion of a large manufacturer, he may, within thirty days of being notified of the cancellation, appeal in writing to the 'Ministry, whose decision in tho matter shall be final. Revoontion oCS,I. No. 32 0£1073

10. The Control of Goods (Clothing Prices) Order, 1973, ,is hereby revoked. LUSAKA lothFebruary, 19B1 [OP0.105/10/4] Minister of Oommerce and Industry R. CmSUPA, SCHEDULE (Paragmph 3) MAxmtm: PnIOES FOR CLornmo (a) SakbyManufadurerlo Wholesaler: The maximum mo.rk-up on prime cost shall be 40 %, (b) Sale by Manufacturer Di red to Retailers: Tho mo.xi.mum mark-up on primo cost inclusive of delivery to nll tho principal places in Zambia shall be 50 %- (c) Sale by WholesalBr: The maximum mark-up on prime oostshall be 60%, (d) Bale by Retailer to Actual User: The maximum mark-up on prime oost anywhere in Zambia shall bo 95%, (e) Sale by Made to Measure Manufacturer: Tho maximum mark-up on prime cost shall be 30% except where material ie supplied by a customer, when maximum ma.Tk-up shall be 35% on direct la.hour.