Customs Duty, Tariff and Taxes in Ethiopia

All imported goods to Ethiopia are subjected to customs duties and taxes, unless exempted by law. Taxes applicable on imported goods are: Import (Customs) duty, Withholding Tax (a fixed rate of 3%), Excise Tax (if applicable), VAT (a fixed rate of 15%) and Surtax (a fixed rate of 10%).

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.

Tariff Calculator:

Total Cost of the goods = FOB Cost + Insurance + Freight


Total Cost of the goods x Import Customs Duty = A


(Total Cost of the goods + A) x Excise Tax Rate (If applicable) = B


(Total Cost of the goods + A + B) x VAT = C


(Total Cost of the goods + A + B + C) x Surtax = D


Total Cost of the goods x Withholding Tax = E



TOTAL PAYABLE at THE TIME OF IMPORT = A+B+C+D+E

Note:There are some goods that may be exempted from one or more of the taxes and duties mentioned above. To find out more, one can visit here to check the HS code, and, here to find an online tax calculator. Both are provided by the Ethiopian Revenue and Customs Authority.

Some selected goods and taxes and duty applicable on them while importing:

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

  1. 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%

2. 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%

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%

4. 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

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