Import It, Pay for It: Why Jacks Trading Couldn't Escape a N$49M Duty Bill

Written By Eszter Rapanos

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Jacks Trading imported cement into Namibia. Years later, they found themselves facing a massive customs bill, over N$49 million. They tried to challenge it, but the High Court wasn’t having it. Here’s what happened when duty, documentation, and a clearing agent’s actions landed them in hot water.

The Case Background

Between 2012 and 2017, Jacks Trading (Pty) Ltd imported Portland cement into Namibia. The government, through the Ministry of Finance and the Namibia Revenue Agency (NamRA), claimed the company owed N$49,314,494.20 in unpaid customs duties.

These duties were based on Government Notice No. 208 of 2012, issued under the Customs and Excise Act, 1998, which required that duties be paid immediately when goods enter the country.

Jacks Trading denied owing the amount. Their defence included:

  • Disputing the validity of the Acting Commissioner’s appointment.

  • Questioning the reliability of the documents used to calculate the duties.

  • Claiming procedural issues in how the duties were determined.

What the Court Found

The High Court had to decide whether Jacks Trading was legally liable to pay the duties, despite their procedural objections. It ruled in favour of NamRA, confirming that:

  • Customs duty is due at the moment of import, no matter what happens afterward.

  • Importers are responsible for what their clearing agents declare, even if they disagree with it later.

  • Procedural arguments (like challenging the Acting Commissioner’s appointment) didn’t change the fact that duties were owed.

The court also found that:

  • The customs declarations were properly submitted and could be used as reliable evidence.

  • Jacks Trading had not provided enough proof to dispute the amounts or calculations.

The Ruling

Jacks Trading was ordered to:

  • Pay the full N$49.3 million in unpaid duties

  • Cover the government’s legal costs.

Key Lessons for Businesses

  • Customs duty is automatic. If you import goods, you owe the duty as soon as they enter the country.

  • You’re bound by your agent’s actions. What your clearing agent submits can hold you legally responsible.

  • Admin mistakes won’t cancel tax. Challenging paperwork or appointments won’t get you out of paying lawful duties.

The bottom line is that if you import, you must pay duties. Make sure your paperwork, and your clearing agent are in order.

Eszter Rapanos
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