Database

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NEPAL

Since July 1992, last amended in March 2019

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Maximum foreign equity share
Foreign Investment and Technology Transfer Act, 2019 (2075) (विदेशी लगानी तथा प्रविधि हस्तान्तरण ऐन, २०७५)
According to Art. 3 of the Foreign Investment and Technology Transfer Act, no industry operated with foreign investment may make foreign investment of profits earned or in any other manner in any sector referred to in the Schedule of the Act. Pursuant to the Schedule Relating to Sub-section (2) of Section 3, foreign investment in consultancy services is subject to a maximum foreign equity limit of 51%. In addition, according to the Schedule, foreign investment in both computer training services and accounting, engineering, and legal consultancy is prohibited.
Coverage Consultancy services, computer training services, accounting, engineering, and legal consultancy

NEPAL

Since November 2006, last amended in August 2007

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Nationality/residency requirement for directors or managers
Companies Act, 2006 (2063) (कम्पनी ऐन २०६३)
According to Art. 185 of the Companies Act, it is mandatory for companies with paid-up capital of more than 10 million rupees (approx. 75,200 USD) to employ a company secretary with Nepali nationality. The company secretary is responsible for keeping and updating company records, calling general meetings, maintaining records of these meetings' decisions, and receiving shareholder grievances, among other things.
Coverage Companies with paid up capital more than 10 million rupees

NEPAL

Since September 2017
Since July 2018

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Nationality/residency requirement for directors or managers
Labour Act, 2017 (2074) (श्रम ऐन, २०७४)

Labour Rules, 2018 (2075) (श्रम नियमावली , २०७५)
According to Section 22 of the Labour Act 2017, employers are prohibited from hiring foreign nationals as labourers without obtaining a work permit from the Department. However, if the required skilled labour is unavailable among Nepali nationals, employers are allowed to hire a foreign worker. This restriction has been in place since the amendment of the Labour Act 1992, introduced by Section 4(A) in 1998. Additionally, the Labour Rules, effective since 2018, provide a slight relaxation of this provision under Section 3.1, allowing foreign-invested enterprises to employ up to three foreign workers without undergoing the labour market test. The labour market test, as specified in Section 22.3 of the 2017 Labour Act, requires publishing the job offer in a daily newspaper.
Coverage Horizontal

NAMIBIA

N/A

Pillar Online sales and transactions  |  Indicator Framework for consumer protection applicable to online commerce
Lack of comprehensive consumer protection law applicable to online commerce
Namibia lacks a comprehensive framework for consumer protection that applies to online transactions.
Coverage Horizontal

NAMIBIA

N/A

Pillar Online sales and transactions  |  Indicator Ratification of the UN Convention on the Use of Electronic Communications in International Contracts
Lack of signature of the UN Convention on the Use of Electronic Communications in International Contracts
Namibia has not signed the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts.
Coverage Horizontal

NAMIBIA

Since 2019

Pillar Online sales and transactions  |  Indicator UNCITRAL Model Law on Electronic Commerce
UNCITRAL Model Law on Electronic Commerce
Namibia has adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce.
Coverage Horizontal

NAMIBIA

N/A

Pillar Online sales and transactions  |  Indicator UNCITRAL Model Law on Electronic Signatures
Lack of adoption of UNCITRAL Model Law on Electronic Signatures
Namibia has not adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Signatures.
Coverage Horizontal

NAMIBIA

Since March 2020

Pillar Technical standards applied to ICT goods and online services  |  Indicator Restrictions on encryption standards
Electronic Transactions Act
The Electronic Transactions Act, Chapter 5, requires accreditation of security services and products including those which are meant to encrypt or decrypt data. This accreditation may involve the technical analysis of the services. The specific requirements for such technical analysis are not listed.
Coverage Security services and products meant to encrypt or decrypt data.

NAMIBIA

N/A

Pillar Online sales and transactions  |  Indicator Threshold for ‘De Minimis’ rule
Lack of de minimis threshold
Namibia does not implement any de minimis threshold, which is the minimum value of goods below which customs do not charge duties.
Coverage Horizontal

NAMIBIA

N/A

Pillar Domestic data policies  |  Indicator Framework for data protection
Lack of a data protection framework
Namibia does not have a data protection framework, leaving an important void in the country with regard to data governance and digital trade governance. A Data Protection Bill is currently in the consultation phase. This is set to support the Electronic Transactions Act, which does not cover many aspects of data in a digital economy.
Coverage Horizontal

NAMIBIA

Since November 2009, entry into force in May 2011, last amended in July 2020

Pillar Domestic data policies  |  Indicator Minimum period for data retention
Communications Act, 2009
Section 119 of the Communications Act stipulates that the Regulator "may prescribe a mandatory period for the retention of records which may not exceed eight years".
Coverage Telecommunications sector

NAMIBIA

Since March 2020

Pillar Intermediary liability  |  Indicator Safe harbour for intermediaries for copyright infringement
Electronic Transactions Act
The Electronic Transactions Act establishes a safe harbour regime for intermediaries for copyright infringements. According to Chapter 6 of the Act, a service provider enjoys protection from any civil or criminal liabilities concerning third-party material presented in the form of data, to which they merely grant access through information system services for data transmission, routing, or storage within a system under their control. To qualify for this protection, the service provider must adhere to the following conditions: (a) they do not initiate the transmission; (b) they do not select the recipient; (c) they perform functions automatically and technically without data selection; and (d) they refrain from modifying the transmitted data.
Coverage Internet intermediaries

NAMIBIA

Since March 2020

Pillar Intermediary liability  |  Indicator Safe harbour for intermediaries for any activity other than copyright infringement
Electronic Transactions Act
The Electronic Transactions Act establishes a safe harbour regime for intermediaries beyond copyright infringements. According to Chapter 6 of the Act, a service provider enjoys protection from any civil or criminal liabilities concerning third-party material presented in the form of data, to which they merely grant access through information system services for data transmission, routing, or storage within a system under their control. To qualify for this protection, the service provider must adhere to the following conditions: (a) they do not initiate the transmission; (b) they do not select the recipient; (c) they perform functions automatically and technically without data selection; and (d) they refrain from modifying the transmitted data.
Coverage Internet intermediaries

NAMIBIA

Since April 2022

Pillar Intermediary liability  |  Indicator User identity requirement
General Notice No. 180, Imposition of further conditions on Telecommunications Service Licensees in terms of Section 72(4) of the Communications Act, 2009, relating to matters prescribed by the Minister responsible for Communications by virtue of the Regulations in terms of Part 6 Of Chapter V of the Communications Act, 2009
Section 17 of General Notice No. 180 requires telecommunications service providers to ensure that customers using a SIM card are registered as the cardholder. For customers who are natural persons, this includes obtaining their name, address, and identification document number. Furthermore, Section 18 stipulates that no SIM card may be distributed or activated unless the customer has been registered as the cardholder.
Coverage Telecommunications sector

NAMIBIA

Since January 2015, entry into force in August 2015

Pillar Technical standards applied to ICT goods and online services  |  Indicator Self-certification for product safety
Regulations in respect of Type Approval and Technical Standards for Telecommunications Equipment, 2015
In Namibia, type approval procedures for telecommunications equipment are regulated by the Communications Regulatory Authority of Namibia (CRAN). The conformity requirements reportedly align closely with those of the European Union. The homologation process does not mandate local laboratory testing or engagement with local representatives, as Namibia currently lacks ISO 17000-certified laboratories for conducting these tests. Instead, the regulations permit acceptance of test results from accredited laboratories abroad, provided the necessary supporting documentation is submitted to CRAN.
Under Section 8 of the Regulations in respect of Type Approval and Technical Standards for Telecommunications Equipment, CRAN may accept a declaration of conformity from an applicant if it is accompanied by a certified copy of test reports and data issued by an accredited test laboratory, confirming that the telecommunications equipment for which type approval is sought meets the applicable technical standards.
Coverage Telecommunication equipment

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