Staff Writer
The Namibia Revenue Agency (NamRA) has introduced a standardised Customs Administrative Penalty Framework, setting out fixed and percentage-based penalties for customs contraventions committed by traders, importers, exporters and other stakeholders.
The framework took effect on 14 October 2026 and is intended to improve consistency, transparency and accountability in the administration of customs offences.
According to NamRA, the system provides for administrative deposits ranging from fixed amounts, including N$2 000, N$8 000 and N$20 000, to penalties calculated as a percentage of customs duty or another prescribed value.
The framework applies to importers, exporters, clearing agents, warehouse operators, transporters, manufacturers and licenceholders.
NamRA said the framework does not introduce new offences but identifies existing legal contraventions and assigns standard administrative responses and penalty amounts to ensure consistent implementation.
Under the system, customs officials must identify and verify a contravention, determine the applicable penalty using the approved Contravention List, obtain the required approval and issue a formal Section 101 notice.
The notice informs the affected stakeholder of the contravention, the relevant legal provision, the administrative deposit payable and the steps available to respond.
Stakeholders will be given 14 days to comply with the provisional payment process and submit written representations, supported by relevant documentation.
NamRA distinguishes between an administrative deposit and the final administrative penalty.
The deposit is the provisional amount determined when a contravention is identified, while the final penalty is decided after consideration of the case, including any representations or additional evidence submitted.
Following a review, the penalty may be confirmed in full, reduced with a partial refund, or withdrawn entirely with a full refund.
For example, the Contravention List provides for percentage-based penalties. Where a contravention attracts a penalty of 25% of customs duty and the duty amounts to N$40 000, the standard deposit would be N$10 000.
Where a minimum penalty is prescribed, that amount will apply. NamRA cites an example in which a 25% penalty on additional duty is subject to a minimum of N$2 000.
Affected parties who believe a penalty is incorrect may submit written representations within the prescribed 14-day period and use the objection, review or appeal mechanisms provided for under the Customs and Excise Act.
NamRA said the framework does not remove stakeholders’ statutory rights to challenge administrative decisions.
However, payment of an administrative deposit does not necessarily settle other customs obligations. Duties, taxes, forfeiture, detention, seizure and other lawful enforcement measures may still apply.
The authority also retains the power to detain or seize goods where authorised under the Customs and Excise Act.
In cases involving serious offences such as fraud, smuggling and forgery, matters may be referred for criminal investigation or prosecution.
Part H of the Contravention List identifies serious offences requiring mandatory criminal referral.
NamRA said administrative settlements do not replace criminal enforcement where the circumstances warrant investigation or prosecution.
The agency has advised customs stakeholders to reduce their exposure to penalties by submitting accurate and complete declarations, applying the correct tariff classifications and valuations, paying duties on time and maintaining proper transaction records.
These records include declarations, invoices, permits, licences, transport documents and correspondence with customs officials.
The framework will undergo a formal review six months after implementation to assess its effectiveness and identify any necessary changes.
Thereafter, it will be reviewed every three years or earlier if legislative, policy or operational developments require changes.
NamRA said the framework is intended to encourage voluntary compliance and ensure fair, proportionate and predictable outcomes rather than impose unnecessary penalties.
