All imported goods to Ethiopia are subjected to customs duties and taxes, unless exempted by law. Taxes applicable on imported goods are; Excise Tax, Value Added Tax, Sur Tax and withholding tax. The rates differ according to the type of the good.
Duty is tariff collected on the value of the good calculated on the basis of its actual total costs. It is levied in accordance with the rules of the international convention on the harmonized customs description and coding system. Sur-tax applies on all imported goods, except those exempted by the Council of Ministers Regulation No. 133/2007 at 10 percent rate. Excise tax is paid on imported goods with a percentage rate ranging from 0 to as high as 100. VAT on imported goods is a flat rate of 15 %. A 3 percent withholding tax applies also on imported goods. These taxes are calculated based on the cost and freight rate. But the Ethiopian Revenues and Customs Authority provides its own CD with details on prices on various goods. The rate is usually calculated as per the price on the CD.This CD is to be updated every three months.
Some imported goods are restricted and require the importer to secure permission from the competent authority.
Here is Duty and taxes applicable on some of major import goods in Ethiopia:
Vehicles, Chemicals, Steel, Petroleum and its products
Vehicles
Vehicles with spark–ignition engine of cylinder capacity of 1000-1300cc
Unit of measurement: unit
Duty Rate: 35%
Excise Tax: 30%
VAT: 15%
Sur Tax: 10%
Withholding tax: 3%
Vehicles with spark–ignition engine of cylinder capacity of 1300-1800cc
Duty Rate: 35%
Excise Tax: 60%
VAT: 15%
Sur Tax: 10%
Withholding tax: 3%
Vehicles with spark–ignition engine of cylinder capacity greater than 3000cc
Duty Rate: 35%
Excise Tax: 100%
VAT: 15%
Sur Tax: 10%
Withholding tax: 3%
Diesel vehicles with cylinder capacity not exceeding 1300cc
Duty Rate: 35%
Excise Tax: 30%
VAT: 15%
Sur Tax: 10%
Withholding tax: 3%
Diesel vehicles with cylinder capacity of 1300-1500cc
Duty Rate: 35%
Excise Tax: 60%
VAT: 15%
Sur Tax: 10%
Withholding tax: 3%
Motor vehicles for the transport of goods
Duty Rate: 10%
Excise Tax: 0%
VAT: 15%
Sur Tax: 0%
Withholding tax: 3%
Public transport type vehicles (diesel/semi-d) seat capacity greater than or equal to 15 passengers
Duty Rate: 10%
Excise Tax: 0%
VAT: 15%
Sur Tax: 0%
Withholding tax: 3%
Chemicals
Chemical fertilizers of nitrogenous, phospatic, photassic, phosphates and chemical fertilizers with nitrogen, phosphorous and potassium are exempt from Duty, Excise Tax and Sur tax. But they are subject to 15% VAT and 3% withholding tax. Importation of chemical fertilizers require permission from Ministry of Agriculture and Quality & Standards Authority of Ethiopia
Chemical preparations for photographic use
Unit of measurement: Kg
Duty Rate: 10%
Excise Tax: 0%
VAT: 15%
Sur Tax: 10%
Withholding Tax: 3%
Unbleached coniferous chemicals, wood pulp, soda or sulphate
Duty Rate: 0%
Excise Tax: 0%
VAT: 15%
Sur Tax: 0%
Withholding Tax: 3%
Other chemical products and residuals
Duty Rate: 10%
Excise Tax: 0%
VAT: 15%
Sur Tax: 0%
Withholding Tax: 3%
Steel (manufacturers get a better duty rate than importers and surtax on certain raw materials (Billets, Hot Rolled Coils, Wire Rod in coils) is 0%.
Unit of measurement: Kg
Flat/hot rolled iron/steel in coils, width >=600mm, with pattern in relief
Duty Rate: 5%
Excise Tax: 0%
VAT: 15%
Sur Tax: 10%
Withholding Tax: 3%
Rolled iron/steel plated with chromium oxides, width >600mm
Duty Rate: 10%
Excise Tax: 0%
VAT: 15%
Sur Tax: 10%
Withholding Tax: 3%
Hot rolled iron/steel, on 4 faces, width >150mm but <600mm, >=4mm in thickness, not in coils.
Duty Rate: 5%
Excise Tax: 0%
VAT: 15%
Sur Tax: 10%
Withholding Tax: 3%
Hot rolled iron/steel bars/rods, rectangular (other than square, x-section)
Duty Rate: 20%
Excise Tax: 0%
VAT: 15%
Sur Tax: 10%
Withholding Tax: 3%
Hot rolled U, I or H sections of iron/steel, <80mm high
Duty Rate: 10%
Excise Tax: 0%
VAT: 15%
Sur Tax: 10%
Withholding Tax: 3%
Hot rolled Angles/shapes/sections of iron/steel not further worked
Duty Rate: 10%
Excise Tax: 0%
VAT: 15%
Sur Tax: 10%
Withholding Tax: 3%
Hot rolled stainless steel in coils >=600mm by >10mm
Duty Rate: 5%
Excise Tax: 0%
VAT: 15%
Sur Tax: 10%
Withholding Tax: 3%
Plates, sheets and strip of refined cooper in coils, >0.15mm thick
Duty Rate: 5%
Excise Tax: 0%
VAT: 15%
Sur Tax: 10%
Withholding Tax: 3%
Aluminium foil rolled not backed
Duty Rate: 5%
Excise Tax: 0%
VAT: 15%
Sur Tax: 10%
Withholding Tax: 3%
Petroleum and its products
Petroleum oils and oils obtained from bituminous minerals, crude
Duty Rate: 5%
Excise Tax: 0%
VAT: 15%
Sur Tax: 10%
Withholding Tax: 3%
Other petroleum oils and oils obtained from bituminous minerals
Duty Rate: 0%
Excise Tax: 0%
VAT: 15%
Sur Tax: 0%
Withholding Tax: 3%
Petroleum coke
Duty Rate: 5%
Excise Tax: 0%
VAT: 15%
Sur Tax: 0%
Withholding Tax: 3%
Petroleum bitumen
Duty Rate: 5%
Excise Tax: 0%
VAT: 15%
Sur Tax: 0%
Withholding Tax: 3%
Other residues of petroleum
Duty Rate: 5%
Excise Tax: 0%
VAT: 15%
Sur Tax: 0%
Withholding Tax: 3%
References
Customs Proclamation, No. 622/2009
Council of Ministers Regulation No. 133/2007
Ethiopian Revenue and Customs Authority Database.
Web: erca.gov.et
