61.5% tax on certain goods imported from China explained

In December last year, the Namibia Revenue Agency (Namra) clarified that goods imported from countries such as China attract customs fees of 45% plus an import tax of 16.5%, totalling 61.5%. Below, the agency explains what this means.

Why is there a 61% tax on goods imported from China?

Namra: Namibia does not have a bilateral or preferential trade agreement with China. As a result, goods imported from China do not qualify for preferential tariff treatment and are subject to the most-favoured nation rates applicable to imports from countries without trade agreements with Namibia. For example, certain clothing items imported from China attract a customs duty of up to 45%, depending on the type and material, along with a value added tax (VAT) of 16.5%

What exactly makes up the 61% charge?

Namra: The commonly referenced 61% represents the combined effect of customs duty and VAT applied to certain goods, particularly clothing. This combines customs duty of 45% and VAT of 16.5%, resulting in 61.5%. It should be noted that this calculation is based on the declared value of the imported goods, as reflected on the commercial invoice.

Which goods and products are affected? Is the 61% applied to all goods from China or only specific tariff codes or product categories?

Namra: Not all goods imported from China attract high customs duties. Duty rates depend on the specific Harmonised System (HS) tariff code applicable to each product. Namra applies the ‘HS Tariff Book’, which classifies goods according to their HS codes and prescribes the corresponding duty rates.

‘The Tariff Book’ is an internationally recognised customs tool used by all customs and excise administrations worldwide in the clearance of goods across borders. It is used for the classification of goods to determine the relevant chapters, headings, origin and applicable rates of duty. It is important to note that these rates are not determined by Namra but are set in accordance with internationally agreed customs tariff frameworks.

Examples of goods with higher duty rates include:

1. Clothing and footwear (HS chapters 61 to 66), which attract duties ranging from 20 to 45%, depending on the fabric and product type. Imports from China do not qualify for duty rebates due to the absence of a trade agreement.

Examples of other products with varying duty rates include:

Plastic sanitary ware under heading 3 922, with duty rates ranging from 20 to 30%.

Rubber tyres under heading 4 012, with duty rates ranging from 36 to 43%.

Motor vehicles under heading 8 703 at 25%.

Off-the-road logging trucks under heading 8 704 at 10%.

Importers are encouraged to confirm the correct HS code prior to importation to determine the applicable duty rate.

How does Namra calculate the charge in practice at the border? What is the calculation base?

Namra: Namra uses an automated declaration system, which calculates applicable duties and taxes based on the declared value and tariff classification of the goods. For transparency and planning purposes, importers may estimate duties and taxes in advance by using the Namra e-tariff duty estimator available on the Namra website. Alternatively, registered clearing agents may also assist by providing a detailed breakdown of applicable charges.

Namibia applies the free-on-board valuation method, which reflects the value of goods at the point of export, specifically at the exporter’s port when the goods are loaded onto the shipping vessel, inclusive of costs incurred by the buyer in the country of export.

As part of Namra’s ongoing reforms and modernisation initiatives, the customs tariff book can now be generated electronically through the e-tariff system. Taxpayers and traders are encouraged to make use of the Namra e-tariff duty estimator, available on the official Namra platform, to obtain an indicative estimate of applicable customs duties and taxes by product.

The estimator can be accessed via the following link: https://etariff.namra.org.na/duty-estimator

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