The Namibia – Zimbabwe PTA

I. Introduction

The Namibia – Zimbabwe PTA has been negotiated since 1991 and is into force since 1993. As Namibia and Zimbabwe wanted to improve their existing trading relations they decided to enable each other to trade with classified products up to an annual quantity specified. The PTA is necessary because Zimbabwe is not a SACU (South African Customs Union) member, i.e. it has not enjoyed any preferential treatment, but it is an important trading partner of Namibia.

II. The trade development between Namibia and Zimbabwe

The following tables illustrate the trade between Namibia and Zimbabwe from 1995 - 1997. The positive trade balance in favour for Zimbabwe shows that its private sector is more practice in using trade opportunities created by the Namibia – Zimbabwe PTA. Namibia’s enterprises have to explore further demands of Zimbabwe in order to improve their export lists.

Source: Central Statistics Office of Namibia

Namibia’s main exports to Zimbabwe are fish and fish products. Actually Namibia exports more than 20 different fish categories to Zimbabwe. From 1993 to 1995 Namibia’s fish exports have grown enormous from N$ 5.9 Millions to N$ 15.4 Millions. Besides this, the exportation of metal fabrics, water, beer, milk products and meat is expanding. Also the trade with woven fabrics and wheat and rice products is successful although on a small scale.

Namibia’s imports from Zimbabwe comprise mainly sugar and confectionery and wood and wooden products with N$ 40.9 Millions and N$ 20.9 Millions in 1996. Also meat products, woven and metal fabrics, wheat, vegetables and electric articles were successful export articles of Zimbabwe into Namibia.

III. Relevant points for Namibian exporters

Which products / services can be traded under the agreement?

Mineral, vegetable, forest, animal and fish products as well as products obtained therein are the categories of goods specified in this agreement. These goods are free of customs duties (incl. surcharge on imported goods) but not on sales taxes. Services like samples, publicity material and temporarily imported goods are exempt from this preferential arrangement. If the specified goods are grown, produced or manufactured in Namibia or at least 25% of manufacturing cost performed in Namibia the exportation of these goods falls also under the PTA represents the actual production costs.

If there is already a duty or tax that exists for any goods, either contracting party is able to levy an equivalent duty or tax on similar goods. Besides this, the agreement allows anti-dumping duties and countervailing duties on imported goods. Either party has to assist in the investigation of dumping.

What do I have to observe if I want to benefit from this agreement?

The certificate of origin, a good declaration form and a letter that states the value of the goods must accompany the exported goods specified in this agreement. Besides this, the goods must be transported to Zimbabwe without having entered the territory of any third country. A registration at the Government of Zimbabwe is not necessary buy at the customs department in Namibia.

You will find a sample of the certificate of origin and the good declaration form on page…

Besides this, you need to fulfill an application to make provisional payment if the goods exported succeed the value of N$ 50,000. The corresponding form is on page…and has to be completed by exporter’s bank. If you want to store goods in Zimbabwe you must also fill out the exchange control declaration. The Namibian customs authorities need seven copies of all forms.

Freedom of transit

Another aim of the Namibia – Zimbabwe PTA is the facilitated organisation of trade fairs and exhibitions in either country as well as the transit through the territories of Namibia and Zimbabwe. Therefore, Namibian exports of goods destined for third countries can be removed through Zimbabwe and goods from third countries destined for Zimbabwe can be moved through Namibia.

Trade cooperation

The Joint Permanent Commission is facilitating bilateral cooperation. It supports e.g. the cooperation between the Chambers of Commerce and Industry of Namibia and Zimbabwe and information exchange between governmental and non-governmental institutions. Besides this, it advances partnerships and joint ventures between the two countries. In Zimbabwe are already some joint ventures with Namibian companies, e.g. in the field of mining, hotels, travel agencies and warehousing.

The following contact addresses will provide you with necessary information about the Namibia – Zimbabwe PTA:

- Zimbabwe National Chamber of - ZimTrade

Commerce and Industry (Counterpart of NCCI) P.O. Box 2738

P.O. Box 1934, Harare Tel.: + 263-4 70 67 72

Tel.: + 263-4 75 34 51or 75 34 44 Fax: + 263-4 70 69 30

Fax: + 263-4 75 34 50 e-mail: http://www. zimtrade@harare.iafrica.com

For any further questions you are also asked to contact NCCI, Mr. Sam Geiseb, Head of Corporate Services Department, Tel. 22 88 09, Fax: 22 80 09.