WALVIS BAY – Coastal-based clearing and forwarding agencies are up in arms over the latest amendment by the Namibia Revenue Agency (NamRA) on the transportation of in-transit second-hand vehicles. The agents believe the directive will have disastrous financial implications for many families and clearing and forwarding agencies operating in Namibia.
Speaking to New Era yesterday, many of the agents said NamRa should devise a workable solution, as the decision disadvantages Namibian clearing agents and elevates foreign clearing agents.
The outcry comes after NamRa issued a notice on Wednesday, informing vehicle importers that no second-hand vehicle will be allowed to transit on its own wheels on Namibian roads from 1 March.
“All second-hand motor-vehicles will be required to transit through Namibia only when on a car carrier trailer. This amendment results from observed deviation where imported vehicles are dubiously declared as in transit, but end up in the local market,” read the statement from NamRA spokesperson, Tonateni Shidhudhu.
As a result, these vehicles end up being registered on the National Traffic Information System (Natis) database without paying the required import taxes.
Shidhudhu said the notice is issued in accordance with Government Notice No. 403, published in Government Gazette No. 7978 of 15 December 2022.
However, some clearing agents yesterday told this publication that no stakeholder engagement took place on the issue, and they only became aware of the directive through a notice on social media.
“The majority of the clearing agents operating in Namibia are foreigners, and Namibians only get a small piece of the pie when it comes to the clearing and forwarding of vehicles in transit. We employ Namibian drivers, while foreigners use undocumented people to drive in- transit cars to the borders. They can even operate on one passport”, one of the clearing agents charged yesterday.
He added that he is also not in a position to acquire a vehicle carrier at this stage.
Another agent, Shadrick Williams, said he would be forced to lay off some of his drivers, and make use of foreign-owned carriers.
“They are the ones benefiting from this change, and we now will have to fork out thousands of dollars for their services, while the little we make will have to sustain our own people. These guys charge up to N$11 000 per car if you have to make use of their carrier, and that is money that could have been used to fuel up and pay our drivers,” said the frustrated Williams.
Another clearing agent, Pana Seibeb, stated that he has about five drivers who take cars to the borders. He thus does not have an additional income to acquire a carrier, and is forced by the notice to make amendments.
“This is really harming the locals who are following the guidelines set out by NamRa and Natis when it comes to vehicles in transit,” he observed.
Also weighing in was Walvis Bay activist Knowledge Ipinge, who said the amendment is shocking and was not clearly thought-through.
“NamRa failed to take into consideration the loss of income, especially amongst the youth, who solely depend on driving those vehicles to the borders. Agents who facilitate some of those transits, the issuing of special permits by NaTIS, Road Fund authorities through cross-border charges (CBC) and mass distance charges (MDC), will all be losing out,” Ipinge reasoned.
Additionally, he said service stations in towns such as Usakos and Karibib will likewise lose revenue, as well as mechanics and accommodation facilities.
“The amendment is crippling the sub-sector created by the logistics sector, and we have families who solely rely on this sub-sector. The same Natis they are protecting will lose out as no temporary permits will be paid for the individual cars, and will only be for carries. The decision was not carefully thought-through”, Ipinge reiterated.
He said the loss of income for drivers and the mechanics who get to fix some of the cars in transit, will be heavy.