Export Processing Zone (EPZ)







 

 

NIMC in the EPZ

The NIMC operational Yard  will be located directly in the approved EPZ area of Walvis Bay. The Walvis Bay Export Processing Zone Management Company will be responsible for the issuing of the EPZ status.

Preliminary indicators clearly show that NIMC will qualify for the EPZ status as more than 70% of the Treated oil will be sold offshore into the bunker market.  Also taking into consideration the considerable capital investment the NIMC project bring including employment and other favorable aspects.

Export Processing Zone Regime

As a far-reaching incentive for manufacturers, the Namibian Government adopted a policy for the establishment of an Export Processing Zone (EPZ) regime to serve as a tax haven for export-oriented manufacturing enterprises in the country, in exchange for technology transfer, capital inflow, skills development and job creation. This policy decision was translated into law through the passage in Parliament of the Export Processing Zone Act (Act No. 9 of 1995). The implementation of this initiative started in 1996.

Export Processing Zone (EPZ) Incentives

Enterprises which undertake manufacturing, assembly, re-packaging and break-bulk operation and gear all or almost all of their production for export, earn foreign exchange and employ Namibians, will be eligible for EPZ status, which confers an attractive range of both tax and non-tax benefits.

Tax incentives for EPZ enterprises

Enterprises with EPZ status do not pay:

  • corporate tax;

  • import tax;

  • sales tax, stamp and transfer duties on goods and services required for EPZ activities.

These benefits are of unlimited duration.

Other incentives for EPZ enterprises

Because Government recognises the considerable costs of establishing new operations and training a new workforce, 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.

EPZ enterprises are allowed to hold foreign currency accounts in local banks. 

They also enjoy industrial calm as no strikes or lock-out are allowed in the EPZ-regime. Companies operating under the regime are free to locate their operations anywhere in Namibia. Through the Offshore Development Company, EPZ enterprises also have access to factory facilities rented at economical rates.

 

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