Bonded Warehouses at Walvis Bay: How to Defer Import Duty and Manage Cash Flow

Import duty and VAT are payable in cash before NamRA releases goods from customs control. For large shipments — a full container of machinery, a consignment of vehicle parts, a bulk food import — this creates a significant cash flow demand at the moment of arrival, regardless of when you will actually sell or use the goods.

A **bonded warehouse** (also called a customs warehouse or bonded store) solves this problem. Goods stored in a licensed bonded warehouse remain under customs control: duty is not paid at arrival, only when you want to remove the goods for local use. This turns a single large duty payment on arrival into multiple smaller payments timed to match when you actually need the stock.

What a Bonded Warehouse Is

A bonded warehouse is a NamRA-licensed facility where dutiable goods can be stored without payment of import duty for a defined period. The goods are "in bond" — legally still under customs control even though they have been physically removed from the port terminal. The warehouse licensee provides a customs bond (financial surety) to NamRA guaranteeing payment of duty if the goods are ever removed for local consumption without proper release.

During storage in bond, the goods can be: - Stored and warehoused in their original state - Re-packed, sorted, or split into smaller lots (depending on licence conditions) - Re-exported without any duty ever being paid (duty is only triggered by local consumption) - Transferred to another bonded warehouse

Duty becomes payable only when you issue an **ex-bond SAD 500** to release goods from the bonded warehouse into local circulation.

Who Benefits From Bonded Warehousing

**Importers with high-value seasonal stock:** If you import a large container of goods that you will sell over 6 months, paying full duty on arrival means financing the duty cost of stock you haven't sold yet. Bonded storage lets you release and pay duty in monthly batches aligned to your sales pace.

**Distributors and re-exporters:** If a portion of your imported stock may be re-exported to Zambia, Zimbabwe, or Botswana, storing it in bond means you only pay Namibian duty on the portion that stays in Namibia. Goods re-exported from bond pay no Namibian duty at all.

**Importers waiting for a buyer:** Some traders import speculatively and need time to find a buyer before committing to the duty cost. Bonded storage provides that buffer.

**Manufacturers using imported inputs:** Factories that import raw materials or components can store inputs in bond and release them for production as needed, paying duty only on what is consumed locally in each production run. (This is closely related to the manufacturing rebate regime — an experienced clearing agent can advise on which structure benefits your operation more.)

**Importers awaiting import permits:** If your import permit is still being processed when goods arrive, bonding the goods removes the time pressure of accumulating port charges while you wait. (Note: the goods cannot be released from bond until the permit is in place.)

Maximum Storage Period

NamRA allows bonded storage for a maximum period, after which the goods must either be released under a SAD 500 with duty payment, re-exported, or the licence holder must arrange an extension. The standard maximum period is **two years** from the date the goods were entered into bond. Extensions are possible but require NamRA approval.

How Bonded Warehousing Works: Step by Step

Step 1 — Goods arrive at Walvis Bay

Your clearing agent files a **Warehousing Entry (SAD 500 with warehousing procedure code)** rather than a standard home-use entry. NamRA assesses the declaration without collecting duty — instead, the duty liability is "suspended" and recorded against the bonded warehouse account.

Step 2 — Goods are transported to the bonded warehouse

Under customs authority or a transit document, the goods move from the port terminal to the licensed bonded warehouse facility. NAMPORT releases the container or cargo once the warehousing entry is accepted.

Step 3 — Goods are stored in bond

The warehouse licensee takes physical control of the goods. The duty liability sits "on account" — NamRA knows what is in bond and the duty value attached to it. Your clearing agent maintains the warehouse entry records.

Step 4 — Release for local use (ex-bond entry)

When you want to sell or use the goods in Namibia, your clearing agent files an **ex-bond entry (SAD 500 with ex-bond procedure code)** for the quantity you want to release. Duty and VAT are calculated and must be paid before the goods leave the warehouse for local delivery.

You can release goods in any quantity — an entire consignment at once, or a pallet at a time over many months. Each release is a separate SAD 500 and a separate duty payment.

Step 5 — Re-export (if applicable)

If you decide to re-export goods directly from the bonded warehouse to Zambia, Zimbabwe, or another country, your clearing agent files an **export entry** from the bonded warehouse. No Namibian duty is ever paid on goods re-exported directly from bond.

Bonded Warehouses vs the SEZ (Special Economic Zone)

The Walvis Bay SEZ (Special Economic Zone) offers a separate regime for manufacturers and processors — goods brought into the SEZ for processing and re-export attract duty suspension and VAT relief for qualifying activities. The SEZ is a larger-scale, longer-term arrangement primarily for businesses with a physical presence operating within the zone.

Bonded warehousing is simpler to access and more appropriate for traders and distributors who need duty deferral without establishing an SEZ operation. The two structures serve different scales and types of activity — your clearing agent can advise on which fits your situation.

Costs of Bonded Warehousing

Bonded warehousing involves costs that do not apply to immediate clearance:

**Warehouse storage fees:** Charged by the bonded warehouse operator per pallet, per cubic metre, or per month. These vary by facility and commodity type.

**Clearing agent fees for the warehousing entry:** Your agent charges for filing both the warehousing entry (on arrival) and each ex-bond entry (on release). Multiple releases mean multiple filing fees.

**Additional handling:** Each release may involve picking, packing, and re-labelling costs at the warehouse.

The net benefit of bonded storage is positive when the cost of financing the full duty payment on arrival exceeds the combined cost of warehousing fees and multiple clearance filings. For high-value goods, this crossover point is reached quickly. For low-value bulk goods, immediate clearance is often simpler and cheaper overall.

Finding a Bonded Warehouse at Walvis Bay

NamRA licences specific facilities as bonded warehouses. Licensed facilities at Walvis Bay are operated by logistics companies, freight forwarders, and port terminal operators. Your clearing agent will be able to identify the most suitable bonded warehouse facility for your cargo type — temperature-controlled facilities exist for perishable goods; high-security facilities exist for high-value items.

Ask your clearing agent to include bonded warehousing as an option in their cost estimate whenever your import involves: - High customs duty values relative to your monthly throughput - Goods where a portion may be re-exported - Stock that will be consumed over a period longer than 60–90 days - Situations where the import permit, buyer, or downstream logistics are not yet confirmed at time of vessel arrival

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[Excise Duty & Bonded Facilities for Petroleum](/resources/petroleum-excise-bonded-tank-walvis-bay)
[Import Duty Drawback in Namibia](/resources/import-duty-drawback-namibia)
[Customs Compliance Audits in Namibia](/resources/customs-compliance-audit-namra)