ERCA-HMRC TWINNING PROGRAM

Preferntial Trade Agreements

Information about foreign currency for travelers to or from Ethiopia

Reward for bona-afide informers

National Lottery Administration Website

16th March, 2010

ERCA-HMRC TWINNING PROGRAM /AN OVERVIEW/

The Ethiopian Revenues and Customs Authority /ERCA/ and Her Majesty’s Revenue and Customs /HMRC/ of the United Kingdom have entered into a twinning relationship about three years earlier in pursuit of partnership building and experience sharing. The relationship gained deeper roots and started bearing fruits particularly to ERCA which is a prime beneficiary from the arrangement. Following is a brief account of the events that have been the building blocks for the formation and maturity of the program.

Idea of the relationship and initial communication started back in 2006; as a result of diplomatic efforts by the Ethiopian Embassy in Brussels.
The first scoping mission produced a draft report in September 2006 entitled “A program of Collaboration between Her Majesty’s Revenue and Customs and the Ministry of Revenue, the Federal Inland Revenue Authority and the Ethiopian Customs Authority”.
In the report, recommendation was given for a twinning arrangement between the HMRC and the then Ministry of Revenue of Ethiopia.
Later, April through May 2007, benchmarking visit was made to the UK by a team of 16 senior staff of the Ethiopian revenue sector.
In August 2007, a second mission from the HMRC was occasioned as a peer review. The mission reviewed the work carried out along Business Process Re-engineering /BPR/ and recommendation was given for formalizing of the Business Case for Merger.
Consequently, on January 14th 2008; an MoU was signed by Minister Melaku Fenta of ERCA and Mr. Rob Abrahams of the HMRC, Head, International Relations, Capacity Building;
Ten Areas of Cooperation were identified. Accordingly, the reform initiatives include but not limited to:
- Strategic Management;
- HR management and development- training, coaching and mentoring, experience sharing visits, peer review;
- Legal framework;
- Tax and customs systems and procedures;
- Governance and tax reform;
- Intelligence and enforcement;
- Tariff classification, customs valuation and rule of origin;
- Information Communication Technology /ICT/;
- Communication and partnership;
- Change management support for effective delivery of tax and customs modernization program.
From June 29-July 8 /2008, a third mission produced draft strategic plan for ERCA and also a draft HR strategy (for the period 2008-2011) after assessing and reviewing the prevailing situation.
Afterwards, seven other successive missions took place each of them coming up with respective recommendations.
After production of several Mission Reports; the effort culminated in the development of Data, Risk and Compliance Strategies for ERCA.
The Department for International Development /DFID/ committed significant resources in accordance with its country assistance program.
Finally, an In-Country Advisor was appointed as of June 1st /2009 for one year.
The advisor prepared a delivery plan; the strategies got approval of top management; and intensive implementation of the program followed.
Various training programs, consultancies, and policy developments are taking place which are expected to result in significant capacity building and operational efficiency to ERCA and improved services to taxpayers.