Table of Contents
Public Notice: Trade Verification System in Namibia Activated by Bank of Namibia and Namibia Revenue Agency
This article will explore the significance of the Trade Verification System in Namibia and its impact on trade processes in the country. The Bank of Namibia and the Namibia Revenue Agency (NamRA) have collaborated to introduce a groundbreaking digital initiative known as the Trade Verification System (TVS). Set to be officially unveiled on the 17th of November 2023, this new system aims to revolutionize trade operations within Namibia, enhancing efficiency and transparency.
The Need for Change
- Traditional trade operations in Namibia have been dependent on cumbersome paperwork and manual handling, resulting in labor-intensive processes that are error-prone and susceptible to fraud.
- Existing vulnerabilities in the international trade system have been exploited for illicit purposes such as fraud, tax evasion, and trade-based money laundering.
- The absence of a reconciling framework between trade declarations made via customs and financial transactions has led to substantial foreign currency losses for Namibia, primarily through irregular outward remittances for non-existent imports.
The Birth of the Trade Verification System in Namibia
- In response to these challenges, a public-private partnership (PPP) was established under the leadership of the Financial Intelligence Centre (FIC) to investigate the losses and recommend solutions.
- The PPP’s investigation revealed losses amounting to NAD 3–4 billion over a three-year period, underscoring the urgent need for a national framework to reconcile trade declarations with relevant financial transactions.
- As a result of this investigation, the Trade Verification System in Namibia was developed and will be launched on the 17th of November 2023.
Advantages of the Trade Verification System in Namibia
- Trade verification systems have been widely adopted by countries worldwide to streamline trade operations, promote compliance, and combat illicit practices. They automate trade processes, reduce reliance on manual handling, and ensure the authenticity of documents.
- The TVS, being an advanced and secure system, offers a more efficient approach to international trade, addressing the limitations and challenges associated with traditional practices.
- By integrating with NamRA’s Automated System for Customs Data (ASYCUDA), the TVS allows users to declare transactions in multiple currencies, manage documents, and update export and import information. Traders can even create their own Unique Consignment Numbers (UCR) for declarations.
- Commercial banks benefit from the Trade Verification System in Namibia as well, as they gain access to new data elements designed for automation and effective management of transactions. The system provides unique identification numbers that enhance accuracy, compliance verification, and oversight.
The Launch of Trade Verification System in Namibia
- The Trade Verification System was officially activated on the 15th of October 2023.
- On the day of the launch, a comprehensive, high-level overview of the system’s features, operational procedures, and advantages will be live-streamed on the Bank of Namibia and NamRA’s Facebook pages.
In conclusion, the Trade Verification System introduced by the Bank of Namibia and Namibia Revenue Agency is a game-changer in streamlining trade operations, ensuring compliance, and reducing vulnerabilities. This transformative digital initiative represents a significant step towards a more efficient and secure international trade system in Namibia.
Public Notice: NamRA Trade Verification System (TVS) to Revolutionize Namibia’s Trade Landscape
PUBLIC NOTICE: NamRA Special Clearing Desk at the Hosea Kutako International Airport
The Namibia Revenue Agency: Empowering Tax Collection and Trade Facilitation
An Easy Guide to Tax Brackets in Namibia
The Beginner’s Guide To Log Into ITAS Web Portal
If you have more questions, look through our blog for answers!
