Imagine international trade as a highway, with goods as vehicles and customs as toll stations. When these stations operate inefficiently, causing traffic congestion, the entire highway's throughput suffers dramatically. For developing nations like Namibia, improving customs efficiency and reducing trade costs becomes particularly crucial. But how can Namibia ensure its customs "highway" flows smoothly? A diagnostic mission by the World Customs Organization (WCO) may hold the answers.
From October 22-26, 2018, at the invitation of Namibia's Customs and Excise Administration (NCE), a WCO expert team conducted a diagnostic support mission in Windhoek focused on implementing the World Trade Organization's (WTO) Trade Facilitation Agreement (TFA). This initiative occurred under the WCO Mercator Programme framework with generous funding from the Korea Customs Cooperation Fund (CCF).
The Significance of Trade Facilitation
The TFA represents a set of rules designed to simplify and harmonize international trade processes. It encompasses multiple aspects from transparency of information and simplified customs procedures to inter-agency border cooperation. For developing countries, implementing the TFA can significantly reduce trade costs, enhance efficiency, attract foreign investment, and stimulate economic growth.
As a landlocked country in southern Africa, Namibia's economic development heavily depends on international trade. However, cumbersome customs procedures, opaque policies, and weak infrastructure have long constrained trade expansion. Therefore, TFA implementation carries strategic importance for Namibia's economic trajectory.
A Comprehensive Customs Health Check
The WCO mission functioned as a thorough diagnostic examination, identifying challenges and opportunities in Namibia's TFA implementation. To ensure comprehensive assessment, the WCO team conducted extensive consultations with senior and mid-level NCE officials from both central and regional offices across various customs departments.
The mission also engaged representatives from both public and private sectors, including traders, freight forwarders, and industry associations. These stakeholder discussions provided practical insights into operational challenges and improvement suggestions.
Key Diagnostic Focus Areas
The assessment covered several critical TFA implementation components:
Information Transparency: Evaluating whether Namibia Customs provides timely, accurate information about procedures, regulations, and policies through accessible channels.
Procedure Simplification: Analyzing clearance processes for unnecessary complexity or redundancy, with consideration for electronic declaration systems.
Border Agency Cooperation: Examining coordination between customs and other border agencies (sanitary, phytosanitary, etc.) regarding information sharing and joint operations.
Risk Management: Assessing capabilities to identify and manage trade risks, including potential adoption of risk assessment techniques to focus resources effectively.
Facilitation Measures: Reviewing existing trade facilitation instruments like advance rulings and authorized economic operator programs, along with their implementation effectiveness.
Roadmap for Improvement
Following the diagnostic phase, the WCO team prepared a detailed report containing tailored recommendations across policy, regulatory, procedural, technological, and capacity-building dimensions. This document established a foundation for future NCE-WCO collaboration, enabling prioritized action plans that strengthen implementation capabilities while fostering partnerships with development stakeholders.
The WCO Mercator Programme specifically supports developing countries in TFA implementation through technical assistance, capacity building, and policy guidance. By leveraging WCO's extensive tools and methodologies, the program helps nations capitalize on TFA opportunities for sustainable economic growth.
Namibia's Trade Future
For Namibia, this diagnostic mission represents more than an assessment—it's a transformative opportunity. Through WCO collaboration, Namibia Customs can adopt international best practices to streamline procedures, enhance efficiency, reduce trade costs, and better integrate into global trade networks.
With proper implementation, Namibia stands to develop a more open, efficient trade environment that attracts investment, stimulates growth, and improves livelihoods—potentially positioning itself as southern Africa's most competitive trade hub. As one Namibian customs official noted, "We believe TFA implementation will position Namibia among the region's most competitive trade centers." The WCO mission marks a significant stride toward this vision.