The directive which grants duty free privilege to
homecoming Ethiopians is repealed
By Abebe Hunachew
Directive 7/96 which grants homecoming Ethiopians the privilege of
importing personal and household goods free of duty is repealed.
At a press conference held in the Ethiopian Revenues and Customs
Authority meeting hall on May 21, 2009, Mr. Belete Ahmed, Temporary
Director of Legal Service Business Process of the Authority said that
directive 7/96 which used to grant duty-free privilege to homecoming
Ethiopians is repealed as of April 14, 2009 by a circular with ref.
1.6/5/1.
According to the information offered by him at the press conference,
homecoming Ethiopians including diplomats who worked in Ethiopian
embassies abroad are allowed to import their personal effects and
household goods by paying duties and taxes due.
The Director added that the repealed directive was first put into
effect in 2003 with the objective to grant to homecoming Ethiopians
privilege of importing personal effects and household goods free of
duty especially when they arrive home after staying abroad for a certain
period of time.
Since then, the Authority had made a number of amendments in the
currently abrogated directive, the principal one being the cancellation
of the privilege of importing personal automobile free of duty. This
amendment was made to prevent the misuse of privileges by the beneficiaries.
Currently, the Authority has, for the same reason, barred the beneficiaries
from importing personal effects and household goods free of duty.
According to the director a multitude of beneficiaries of the duty
free privilege act against the law that forbids the sale of goods
imported free of duty. There are indications that the beneficiaries
offer the duty-free imported goods for sale without the prior payment
of customs duty and taxes, causing direct adverse effect on government
revenue and legal trade. This has ultimately called for the abrogation
of the directive 7/96.
However, the duty-free privilege of foreign diplomats and consular
missions in Ethiopia, international organizations, aid-giving organizations,
investors, individuals who for the first time came to Ethiopia to
take up residence and bona fide tourists is unaffected since this
privilege is granted to them by laws other than directive 7/96.
Accordingly, the director said that diplomats and consular missions,
international organizations and aid giving organization in Ethiopia
are allowed to import articles for duly known purposes based on customs
tariff second schedules (B) and other laws and agreements on which
Ethiopia is signatory.
Furthermore, the director indicated that the Authority allows investors
to import free of duty personal effects and household goods with a
total value not more than 10,000 USD, ensuring that the investor is
going to make an investment with a total value of not less than 5
million Birr.
The director added that those who came to Ethiopia for the first
time to take up residence and bona-fide tourists are, based on item
two of Customs Tariff Second Schedule (B), allowed to import personal
effects and household goods free for duty. However, it is restricted
that the total value of the goods should not exceed 5000 USD.
The director has also indicated that directive 7/96 will remain functional
for a month's time beginning from April 17, 2009 in order to provide
a duty free privilege for goods that were on the way to Ethiopia and
were under customs formality when the new directive was promulgated.
SECOND SCHEDULE (B)
EXEMPTIONS AT NIL (UNCLASSIFIED)
NOTE. Goods entered on customs import declaration
are required to be additionally classified for tariff and statistical
purposes according to the first schedule to this Tariff.
General exemptions for importation by or on behalf of privileged
organizations, privileged persons, public bodies and institutions.
1. Diplomatic and consular missions:
The following exemptions are granted, on the basis of reciprocity,
to the missions and officers indicated:
a) All goods, including motor vehicles, imported for the official
use of the diplomatic or consular missions.
b) Furniture, furnishings and goods, including motor vehicles, imported
at any time for personal use of the diplomatic officers.
c) Furniture, furnishings and goods, including motor vehicles, for
personal use of the consular officers imported within six months of
first arrival at post.
2. Baggage and personal effects, the following:
a) Persons upon first arrival to take up residence in Ethiopia
Baggage, the property of and accompanying said person or landed at
any customs station within a period of three (3) months of first arrival
or such further period as customs may allow:
i) Necessary and appropriate wearing apparel, personal, jeweler and
toilet requisites.
ii) Articles for household use, such as furniture, carpets, Pictures,
glassware. linen, crockery, cutlery, plate and swing machines, and
such additional articles as binoculars, cameras, (including cinematographer
cameras of 8,9.5 and 16mm) , sports' equipment, portable typewriters
and toys, which are demonstrated to the satisfaction of customs to
have been in the personal or household use of the passenger prior
to importation and which are not intended for sales.
iii) Two (2) liters of beverage, whether or no containing alcohol.
iv) Cigars not exceeding one hundred (100) in number, cigarettes not
exceeding twenty (20) packets in number or tobacco not exceeding five
hundred (500) grams
v) Instrument and tools for the professional use of the passenger.
b) Personal effects of Ethiopian Returnees and Expatriates Arriving
Under cooperation Agreements shall be effected as specified in (Amendment)
Regulations No. 6/1996 of the council of ministers.
c) Bona-fide tourists:
Baggage, the property of and accompanying said person:
i) Necessary and appropriate wearing apparel, personal jeweler and
toilet requisites.
ii) Two (2) liters of beverage, whether or not containing alcohol.
iii) Cigars not exceeding one hundred (100) in number, cigarettes
not exceeding twenty (20) packets in number and tobacco not exceeding
five hundred (500) grams.
The customs may, subject to the taking of such safeguards as they
may deem necessary to guard against the sale within Ethiopia of articles
imported by a bona-fide tourist, allow the importation of any additional
portable articles of baggage appropriate to the tourist or to the
purpose of his visit.
3. Cups, medals and other trophies imported for presentation only
(not to be offered for sale):
a) As prize at public examination, exhibitions or shows or for competitions
or skill at sports, open to members of recognized clubs and to their
public
b) For bravery, good conduct, humanity, for excellence in art, industry,
invention, manufactures, learning, and sciences or for honorable or
meritorious public service.
Exemptions at 3(a) and 3(b) above shall be effected as specified by
the directives from the Ethiopian Customs and Revenue Authority.
4. Goods Imported by Agencies of the Ethiopian Government and Non-Governmental
Aid Organizations to be effected as specified in (Amendment) Regulations
No. 6/1996 of the council of ministers.
5. Fire escapes, other fire fighting appliances and chemicals.
6. Trade samples not imported as merchandise, excluding medical samples
The liability to duty or otherwise of trade samples depends upon their
circumstance of importations. The chief categories are as follows:
a) Samples of no commercial value are admissible free of duty provided
it is evident that they are clearly of no commercial value (example,
small pieces of fabric made up into pattern books, single shoes with
holes punched through soles etc.)
b) Samples imported in single units which are other than of no commercial
value, and where mutilation is not practicable is not practicable,
may be admitted free of duty provided:
(i)They are for exhibition or demonstration.
(ii)No more than one unit of any variety is imported
c) Sample intended fro subsequent re-exportation, admissible as temporary
imports as provided in the customs proclamation.
N.B. Samples which have any market value whatever will be liable
to the same duty and taxes as merchandise of the same kind.
7. Repeatedly used containers, including boxes, tins, bottles, jars
and other packages, imported full of any articles liable to a specific
rate of duty and being ordinary trade packages for goods contained
therein.
8. Defense and public security equipment
Vehicles, communication and other equipment to be used specifically
for defense purpose; arms, communication and communication equipment
for public for security.
9. Articles and equipment specialized for use by the disabled or
handicapped.
10. about the special Responsibility of Ethiopian Investment Authority,
regarding Duty Free Capital Goods, refer to council of Ministers (Amendment)
regulations No. 6/1996
