Duty remission incentives

The DRI scheme is administered by the Directorate of Customs and Excise, which has dual responsibilities.

The DRI scheme allows registered persons and companies to import goods under full or partial rebate of import duties and taxes if the goods are intended for use in a specified process such as the manufacture/processing of other goods for home use in some cases or the manufacture/processing of other goods for export in other cases.

Two types of DRI are provided: the rebate type in which the goods may be entered without payment of duty and the drawback/refund type in which import duties and taxes are refunded upon the prescribed use or exportation of the goods. DRI trader must keep accurate records of goods entered under rebate and are liable for the rebated duties until such time as they account to Customs satisfaction that they were used in processing/manufacturing or exportation.

Persons who are not manufacturers or processors may also gain approval to import goods under rebate for the purpose of supplying them to registered manufacturers or processors who are authorized to use the goods under the DRI scheme. Of particular advantage to Namibian manufacturers, rebate item 470.03 provides duty remission incentives on imported materials if the products made from them are intended for export.

A process can be anything from repacking or sorting goods to the most complicated manufacturing operations.  Generally the importer must do something to the goods, but an exception is made for registered traders who import and supply goods to registered manufacturers or processors. If a manufacturer/processor exports part of his product and sells the rest on the home market, he may enter the portion that will go toward export under rebate and pay duty and taxes on the remainder.  

Most goods are covered by this rebate item with only the following exceptions: prohibited goods listed in Section 123 of the Customs and Excise Act and industrial plant, machinery, equipment and spare parts unless all the registered manufacturer’s production is intended for export.  The drawback and refund types of DRI require similar application, record keeping, and processing or exportation, however, a bond is not normally required.

 

Duty Remission Incentives Guide

Download the full Duty Remission Incentives Guide for information about:

Duty Remission Incentives Guide

Customs procedure codes

The importation or transfer of goods under rebate is accomplished on a SAD 500/501. The following Customs Procedure Codes (CPC) must be entered in block 37:

When any of the above Customs Procedure Codes are used on the entry, the 5-digit rebate item followed by the 4-digit rebate code shall be entered in block 44.The rebate item must be separated from the rebate code by a hyphen. Rebate item 403.01, rebate code 01.00 must be entered in block 44 as follows: 40301-0100. If an importer desires to enter part of a consignment under rebate and part otherwise, separate entries are not required. CPC codes will ensure that rebate items and non-rebate items are handled properly on the same SAD 500/501.

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