Customs and excise duties

Requirement

Namibia is a member of the Southern African Customs Union (SACU), and customs duties are not levied on intra-SACU trade (i.e. between Botswana, Lesotho, Namibia, South Africa, and Swaziland).

Customs duties are payable according to the Common Customs Tariff of SACU on imports from outside SACU. Preferential duty rates apply on imports from Southern African Development Community (SADC) countries, while goods may be imported free of customs duties from Zimbabwe in terms of the Namibia-Zimbabwe Free Trade Agreement.

Excise duties are levied on local production of excisable products (e.g. cigarettes, liquor, fuel) and are included on most excisable products imported from another SACU country in terms of the duty at source procedures. Identical excise duty rates are applied throughout the SACU. Import of excisable products from outside the SACU is subject to customs duties and specific customs duties.

Current specific excise/customs duty rates for the above-mentioned products are as follows:

  • Cigarettes: NAD 7.76/10 cigarettes
  • Beer: NAD 95.03/liter absolute alcohol (AA)
  • Spirits (whisky, rum, brandy, gin, vodka, etc.): NAD 190.08/liter AA
  • Petrol: 3.909 cents/liter
  • Diesel and biodiesel: 3.817 cents/liter
  • Illuminating kerosene (paraffin): 3.817 cents/liter

Namibia intends to introduce additional duties on certain excisable products at a rate of 5%. The enabling legislation has not been drafted yet.

Ad valorem excise/customs duties are levied on certain products (e.g. motor vehicles, perfumes) in addition to the normal customs duties.

Ad valorem excise/customs duty rates are as follows for the above-mentioned goods:

  • Motor vehicles: ([0.00003 x A] - 0.75)%, with a maximum of 25%, where 'A' is the recommended retail price, excluding VAT
  • Perfumes: 7%

Customs fuel levies are payable on petrol, diesel, and illuminating kerosene. The current customs fuel levies are as follows:

  • Petrol: NAD 0.25/liter
  • Diesel: NAD 0.25/liter
  • Illuminating kerosene (paraffin): NAD 0.25/liter

M3 solution

For Namibia, this requirement is handled in M3 using charges.

Configuration guidelines

Not applicable.