NamRA clarifies clothing import charges: ‘61.5% is not a NamRA decision and cannot be changed overnight’

By: Hertha Ekandjo

The Namibia Revenue Agency (NamRA) Commissioner, Sam Shivute, has urged small traders, also known as “Order With Me” agents to be wary of anyone claiming that Namibia’s high clothing import charges can be reduced in the near future.

He stressed that the 61.5% total tax rate is a long-standing SACU requirement that cannot be altered by NamRA or Namibia alone.

Shivute was speaking during a recent community engagement in Windhoek with traders, many of whom have raised concerns over the 45% customs duty and 16.5% VAT applied to clothing imported from countries such as China, Turkey, the UK and the US.

“As it is now, if you are importing a dress, trousers or a T-shirt from China, the customs duty is 45%, and when you add the 16.5% VAT, it gives you 61.5%,” he explained.

“Anyone telling you they will change this next month or this year don’t believe them. We must tell people the truth.”

Shivute emphasised that the Southern African Customs Union (SACU) determines tariff structures and that Namibia alone cannot amend the duty framework.

“With regard to SACU, that decision is not dependent on Namibia not even on those responsible for amending tax laws,” he said. “The SACU amendment process takes years. In the past 20 years, how many amendments have been made?”

He added that public frustrations often stem from misunderstandings about NamRA’s powers.

“NamRA is being put on the cross for something it cannot change,” he said. “We are not allowed to change the 45% rate. Anyone claiming they can change it within 24 months bet against that person.”

Shivute also explained the rationale behind the tariff, noting that Namibia benefits significantly from being part of SACU.

“Namibia sometimes contributes N$4 billion to the SACU revenue pool but receives up to N$30 billion back,” he said. “This is one of the reasons we remain part of SACU. Together we are stronger.”

He added that major retail stores operating locally employ thousands of Namibians and pay corporate tax, PAYE, and other contributions to the state. Uniform import duties help protect this domestic economic ecosystem.

Despite concerns, Shivute encouraged traders to conduct proper costing before importing goods.

“When you buy from China, look at the price and do your calculation so you know what you will pay in advance,” he said. “If you plan well, you can still pay the 61% and make a profit.”

He said this is why NamRA sent some staff to China earlier this year to understand pricing at the source.

“A suit costing N$8 000 to N$10 000 in Namibia can be bought for N$1 000 to N$1500 in China,” he noted. “With proper planning, traders can still operate within the law and grow their businesses.”

He encouraged traders not to remain stagnant but to scale their enterprises.

“Your businesses should not end where they are. Don’t remain at a ‘cuca shop’ level. Scale until you become a supermarket.”