Last Updated on November 27, 2023 by Elidge Staff

Understanding Transit Bond Facility in Namibia and Temporary Import Bond Facility

In international trade, it is common for goods to pass through multiple countries before reaching their final destination. To ensure smooth transit and compliance with customs regulations, two important financial instruments come into play: the transit bond facility and the temporary import bond facility. This article will explore their definitions, requirements for registration, and the procedures involved in utilizing them, providing you with a comprehensive understanding of these concepts.

What is a Transit Bond Facility in Namibia?

A transit bond facility in Namibia is a type of surety bond designed to cover potential duty and tax liabilities on imported goods that are transiting through Namibia en route to other countries. This allows for the seamless movement of goods, ensuring that they reach their final destination without unnecessary delays or complications.

Requirements to Register as a Transit Bond Operator

To operate as a transit bond operator, certain requirements must be met. These include:

1. Request Letter: Submit a request letter stating the purpose and the amount of guarantee the applicant wishes to secure for the transit facility.
2. Certificate of Good Standing: Provide an original and valid certificate of good standing issued by the Namibia Revenue Agency. This certificate serves as proof that the applicant complies with all relevant tax regulations.
3. Registration Proof: Submit proof of registration with the Business Intellectual Property Authority.
4. Surety Bond: Provide an original bank or insurance surety bond, which acts as a financial guarantee for potential duty and tax obligations.
5. Identification Documents: Submit certified copies of the identity or passport documents for all applicants involved in the transit bond facility.

Transit Bond Conditions

It is important to understand the conditions associated with a transit bond facility in Namibia. These conditions include:

• Provisional Payment or Surety Bond: All goods in transit are subject to provisional payment or a surety bond to cover potential duty and tax liabilities.
• Owner Utilization: No third party is allowed to utilize the bond on behalf of the principal bond owner. The three principal bond owners referred to in this context are the importer/owner/consignee of the goods, the clearing agent, and the transporter/carrier.

What is a Temporary Import Bond Facility in Namibia?

A temporary import bond facility in Namibia is another type of surety bond that covers potential duty and tax liabilities on goods imported on a temporary basis within a specified period. Temporary importation allows for the temporary admission of goods for purposes such as processing, repair, cleaning, trade shows, exhibitions, or re-exportation in the same state.

Requirements for Registration of Temporary Import Bond Facility in Namibia

To register a temporary import bond facility in Namibia, the following requirements must be fulfilled:

1. Request Letter: Submit a request letter stating the purpose and the amount of guarantee the applicant wishes to secure for the temporary import bond facility.
2. Surety Bond: Provide an original bank or insurance surety bond, serving as a financial guarantee for potential duty and tax obligations.
3. Certificate of Tax Good Standing: Submit an original and valid certificate of tax good standing issued by the Namibia Revenue Agency. This certificate confirms the applicant’s compliance with tax regulations.
4. Identification Documents: Provide certified copies of the identity or passport documents for all applicants involved in the temporary import bond facility.
5. Optional Registration: Proof of registration with the Business Intellectual Property Authority (optional) may be required.

Temporary Import Procedure

To effectively utilize a temporary import bond facility in Namibia, it is essential to follow the prescribed procedure. Here are the key steps involved:

1. Rebate Item 490.00: Under Part 3 of Schedule 4 of the Customs and Excise Act No. 20 of 1998, this item allows for the temporary admission of goods.
2. Conditions of Temporary Import Regime: Temporary importation allows for various purposes, such as processing, repair, cleaning, participation in trade shows or exhibitions, or re-exportation of goods in the same state.
3. Duration of Stay: Temporary imported goods are allowed to stay in the country for up to 6 months from the date of importation. An extension of an additional 6 months may be granted upon request.
4. Motor Vehicle Levy: Motor vehicles imported temporarily for more than 180 days are subject to the payment of an environmental levy based on their carbon emissions and engine capacity.

By understanding and complying with these procedures, importers can enjoy the benefits of temporary importation while adhering to customs regulations.

In conclusion, the transit bond facility and temporary import bond facility in Namibia play crucial roles in facilitating the smooth movement of goods across borders. By meeting the necessary requirements and following the established procedures, importers can ensure compliance and minimize the potential financial burdens associated with duty and tax liabilities.

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