WORLD TRADE  
ORGANIZATION  G/SCM/N/186/NAM 
10 May 2010 
 (10-2661) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI.1 of the GATT 1994 and  
Article 25 of the Agreement on Subsidies and  
Countervailing Measures  
 
NAMIBIA 
  
 The following notification, dated 26 April 2010, is being circulated at the request of the 
Delegation of Namibia.    
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 In accordance with Article 25 of the Agreement on Subsidies and Countervailing Measures, 
and Article XVI:1 of the GATT 1994, the Government of Namibia is hereby forwarding its new, full 
and updating notifications on Special Incentives for Manufacturers, Exporters of Manufactured Goods 
and for Export Processing Enterprises which fall with in the meaning of Article 1.1 and Article 2 of 
the Subsidies Agreement as well as Article XVI:1 of the GATT 1994.  This notification covers the 
period 2002 to 2009.   
  There are no statistical data available on trade effects.    
 
    G/SCM/N/186/NAM 
Page 2  
 
  TABLE OF CONTENTS 
 
  Page
 
I. INCENTIVES FOR MANUFACTURERS ............................................................................2  
II. INCENTIVES FOR EXPORTERS OF  MANUFACTURED GOODS ...............................3  
III. EXPORT PROCESSING ZONES ..........................................................................................4  
ANNEX .......................................................................................................................... .........................6  
 
 
I. INCENTIVES FOR MANUFACTURERS 
1. Title of the programme  
  Special Incentives for manufacturers and exporters.    2. Period covered by the notification
 
 
 2002 – 2009.    3. Policy objective of the programme
 
  The objective of the incentives is to stimulate manufacturing in Namibia and to promote 
exports into the region and to the rest of the world.   
 4. Background and authority
 
  The Foreign Investment Act provides th e legal framework for the incentives.   
 
5. Form of subsidy
 
  The incentives are in the form of tax and non- tax incentives.  Eligible manufacturers have 
access to the following incentives:    
• Tax abatement; 
• Establishment tax package for new investments; 
• Special building allowance; 
• Tax incentives for export promotion activities;  
• Additional deductions for production line wages and training;  
• Production line wages;   
• Training expenses;   
• Grants and loans for exporters;   
• Industrial studies.   
 6. To who and how the subsidy is provided
1 
  These incentives are available to all enterpri ses registered as manufacturers and meet the 
conditions as set out by the Namibian Government.   
                                                     
 
1 Please refer to the attached Annex for summary of eligibility and incentives provided.    G/SCM/N/186/NAM 
 Page 3 
 
 
  7. Amount of subsidy  
  No specific budget provided.    8. Duration of the subsidy
 
 
 The incentives are provided for an indefinite period.    
II. INCENTIVES FOR EXPORTERS OF MANUFACTURED GOODS 
1. Title of the programme
 
 
 Special Incentives for manufacturers and exporters.    2. Period covered by the notification
 
 
 2002 – 2009.   
 3. Policy objective of the programme
 
  The objective of the incentives is to promote e xports into the region and to the rest of the 
world.   
 
4. Background and authority
 
  The Foreign Investment Act provides th e legal framework for the incentives.   
 
5. Form of subsidy
 
  Eligible exporters of manufactured goods have access to the following incentives:   
 
• 80 per cent allowance on income derive d from exporting manufactured goods.   
 6. To who and how the subsidy is provided
2 
 
 Enterprises that export manufactured goods whet her or not produced in Namibia.  These 
incentives are available to all ente rprises registered as manufacturers and meet the conditions as set 
out by the Namibian Government.    
7. Amount of subsidy
 
  No specific budget provided.    8. Duration of the subsidy
 
 
 The incentives are provided for an indefinite period.   
                                                      
2 Please refer to the attached Annex for summary of eligibility and incentives provided.   G/SCM/N/186/NAM 
Page 4  
 
  III. EXPORT PROCESSING ZONES 
1. Title of the programme
 
  Export Processing Zone Regime.    
2. Period covered by the notification
 
  2002 – 2009.    3. Policy objective of the programme
 
 
 The objective of the regime is to:    
• Facilitate imports of foreign capital and technology as well as the transfer of technical and 
industrial skills to the local workforce;   
• Contribute towards an increased share cont ribution of the manufacturing sector to job 
creation, GDP and exports of manufactured products;   
• Enhance the diversification of the local economy.   
 4. Background and authority
 
  The Export Processing Zones Act (Act No. 9 of  1995) provides the le gal framework for the 
EPZ regime.   
 
5. Form of subsidy
 
  EPZ enterprises are exempted from:    
(a) corporate income tax;   
 (b) Duties and value added tax (VAT) on imported intermediate  and capital goods for 
manufacturing purposes;   
 (c) Sales taxes, stamp and transfer duties on goods and services required for EPZ 
activities.   
 
 Other incentives for EPZ enterprises:   
 
• EPZ enterprises investing in upgrading the skills and productivity of Namibian workers will 
receive a grant to cover a substantial part of the direct costs of on-the-job and institutional 
training.  The grant is paid by the Government on the basis of pre-approved training plans, once training is complete.   
• Holding of foreign currency accounts in commercial banks.   
• Access to factory facilities rented at economical rates.   
 6. To who and how the subsidy is provided
3 
  Domestic and foreign investors who meet the conditions of the EPZ regime enjoy equal 
treatment and eligibility to th e applicable incentives.   
 
                                                     
 
3 Please refer to the attached Annex for summary of eligibility and incentives provided.    G/SCM/N/186/NAM 
 Page 5 
 
 
   Enterprises which undertake manufacturing, assembly, repackaging and break-bulk operation 
for export oriented activities are eligible for EPZ st atus.  All enterprises wishing to benefit from the 
EPZ incentives must first register with the Ministry of Trade and Industry, and, in respect of tax 
incentives, must also be registered with the Ministry of Finance.   
 
7. Amount of subsidy  
  No specific budget provided.    8. Duration of the subsidy
 
 
 The incentives are for an indefinite period.   G/SCM/N/186/NAM 
Page 6  
 
  ANNEX 
 
Summary of Special Incentives for Manufacturers and Exporters  
 
 REGISTERED 
MANUFACTURERS EXPORTERS OF 
MANUFACTURED 
GOODS EXPORT PROCESSING 
ZONE ENTERPRISES 
Eligibility and Registration • Enterprises engaged in 
manufacturing 
• Application to the 
Ministry of Trade and 
Industry and approval 
by Ministry of Finance • Enterprises that export 
manufactured goods, 
whether produced in Namibia or not 
• Application and 
approval by the Ministry of Finance • Enterprises engaged in 
manufacturing, 
assembly, packaging or break-bulk and 
exporting mainly to 
outside of SACU markets 
• Application to the EPZ 
committee, through the ODC or EPZMC 
Corporate tax Set at a rate of 18% for a 
period of 10 years, where 
after it will revert to the general prevailing rate 80% allowance on income 
derived from exporting 
manufactured goods Exempt 
VAT Exemption on purchase 
and import of 
manufacturing machinery 
and equipment Normal treatment Exempt 
Stamp & 
Transfer Duty Normal treatment Normal treatment Exempt 
Establishment of 
Tax Package Negotiable rates and terms 
of special tax package Not eligible Not eligible 
Special Building 
Allowance Factory buildings written 
off at 20% in first year and 
balance at 8 for 10 years Not eligible Not eligible 
Transportation 
allowance Allowance for land-based 
transportation by road or 
rail of 25% deduction from 
total cost Not eligible Not eligible 
Export 
Promotion 
Allowance Additional deduction from 
taxable income of between 
25% and 75% Not eligible Not eligible 
Incentive for 
Training and Production 
wages Additional deduction from 
taxable income of 25% Not eligible Substantial, issued by 
Government upon implementation of 
approved training 
programme 
Industrial 
studies Available at 50% of cost Not eligible Not eligible 
Cash grants 50% of direct cost of 
approved export promotion activities Not eligible Not eligible 
 
  
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