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Sur-tax on Goods Imported to Ethiopia

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Ethiopian Sur-tax on Goods Imported

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Ethiopian Revenue & Customs Authority (ERCA)

An importer has to pay 10% sur-tax on goods imported to Ethiopia. The basis of computation, scope of application and applicable exemptions are as follows:.

1. Surtax on Imported Goods Regulation No 133/2007

These Regulations are issued by the Council of Ministers pursuant to Article 5 of the Definition of Powers and Duties of the Executive Organs of the Federal Democratic Republic of Ethiopia Proclamation No. 471/2005 and Article 4 of the International Convention on the Harmonized Commodity Description and Coding system Ratification Proclamation No. 67/1993.

Article 2. Scope of Application

The Sur-tax levied under these Regulations shall apply to all goods imported into Ethiopia except those exempted under Article 5 of these Regulations:

Article 3. Rate of the Sur-tax:

Without prejudice to Article 5 of these Regulations, Surtax of 10% shall be levied and collected on goods imported.

Article 4. Basis of Computation

The basis of computation for the sur-tax levied under these Regulations shall be the Aggregate of:

1. Cost, insurance, Freight (CIF) value;

2. Customs duty, value Added Tax and Excise Tax Payable on the good.

Article 5. Exemption from the Sur-Tax

1. The following shall be exempted from the Sur-tax: a) goods listed below;

Items exempted from Sur-tax

1. Fertilizers;

2. Petroleum and lubricants;

3. Motor Vehicles for freight and passengers, and special purpose motor vehicles;

4. Aircraft, spacecraft, and parts thereof;

5. Capital (Investment goods). (One has to check with the authority what this exactly constitutes)

b) goods imported by persons or organizations exempted from customs duty by law, directives or by agreement entered into by the Government.

2. The Minister of Finance and Economic Development may at his own discretion increase or decrease the items exempted from the Sur-tax under these Regulations and issue directives for the proper implementation of these Regulations.

Article 6. Effective Date

These Regulations shall enter into force as of 11th day of April 2007.

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