PART THREE

Chapter Eight (Valuation, Tariff Classification and Calculation of Duties and Taxes)

47.  Duty Paying Value

The duty paying value of any import or export goods shall be the actual total costs of the goods.

48.  Duty Paying Value of Imports

1.      For the purpose of customs the duty paying value for imported goods shall be the sum of the transaction value, freight cost and insurance premium that is paid to deliver the goods upped a prescribed customs port.

2.      Transaction value and other related costs given by a supplier who is associated in business with the importer shall be considered genuine unless the given price is influenced by their relationship.

3.      Where a document which show the correct freight cost up to the first customs port is not produced or the document produced is rejected by the Authority; the freight cost of identical goods transported at or about the same time with the same means of transport shall be taken to calculate the cost of freight.

4.      Goods imported with out insurance coverage or transported under insurance coverage but the bill produced is rejected by customs. the insurance cost paid for identical goods transported at or about the same time with the same means of transport shall be taken to calculate the cost of insurance.

5.      To determine the accurate value of the goods pursuant to sub-Article (2) and (3) of this Article, the following additional costs shall be considered:

a.       Commissions an brokerage costs incurred by the buyer;

b.      The cost of container and cost of packing the goods be it for labor or material;

c.       The value of goods and services supplied by the buyer free of charge or at reduced cost, to the extent that such value has not been included in the price actually paid or payable;

d.      Royalties and license fees related to the goods that is paid directly or indirectly by the buyer;

e.       Loading, unloading and handling charges paid up to the port of importation.

6. The method of calculating the costs specified under sub-article (5) of this Article and conditions that may have impact on the duty paying value shall be prescribed in directives issued by the Board.

7. Where documents necessary to determine duty paying value of the goods are not presented, or rejected by the Authority, the transaction value of identical goods imported form the same country at or about the same time shall be taken to determine the value of the goods.

8. Sub-Article (7) of this Article shall apply, where the goods are purchased at the same commercial level and quantity as the goods being valued. Where no such purchase is found, upon some adjustment, the transaction value of identical goods sold at different commercial level and in different quantities, shall be taken to determine the value of the goods.

9. Where the value of the goods cannot be determined in accordance with sub-Article (8) of this Article, the transaction value of similar goods imported form the same country at or about the same time shall be taken o determine the value of the goods.

10.Sub-Article (9) of this Article shall apply, where no such purchase is found, upon some adjustment, the transaction value of similar goods sold at different commercial level and in different quantities, shall be taken o determine the value of the goods.

11. The application of valuation methods listed in this Article, and other alternatives to be followed by the Authority, shall be prescribed in the directives issued by the Board.

49.  Deductibles from Import Value

1.      The following adjustment costs shall be deducted from import values:

a.       costs for damages in routes;

b.      costs for damages in customs warehouse.

2. When it is requested and agreed upon by the customs office to destroy or dispose any dangerous goods deposited in the warehouse, the goods shall be destroyed or disposed otherwise at the presence of customs officer and other officials concerned, and the value of the goods destroyed or disposed otherwise shall be deducted proportionally from the duty paying value of the goods.

50.  Value of Export Goods

For customs purpose the value of export goods shall be the transaction value of the goods and the cost of transportation up to the port of exit.

51.  Exchange Rate (Amended)

1. For goods imported through letters of credit, the exchange rate shall be the rate specified on the bank document against the utilised currency.(Amended not applicable)

2. For any other purchase the official rate of exchange prescribed at the time of acceptance of customs declaration shall be applicable.(Amended not applicable)

What is applicable is the following:

Due to the introduction of Automated System- (ASYCUDA), the exchange rate applicable at the date of declaration is the marginal rate issued by the National Bank of Ethiopia every weekend and this is fixed for one week from Tuesday to the Next Monday.

52.   Commodity Classification & Tariff Rate

Any goods imported or exported shall be subject to:

1.      Pay duties and taxes according to the tariff of Harmonized Commodity Description and coding system;

2.      Pay duties and taxes according to the preferential tariff rate where goods are imported from the preferred country;

3.      Pay duties and taxes at the rate in force on the day the declaration of the goods are presented to, and accepted by the customs office.

53.  Disputable Cases

1.      Where any protest arises as to valuation, commodity description and classification and tariff rate, the duties and taxes shall be payable upon registration of the point of protest.

2.      Payment made under protest pursuant to sub-Article (1) of this Article shall be resolved within 3 months by the General Manager.

3.      Where final decision is given in favor of the person who paid under protest, the duties and taxes paid excessively shall be refunded to him within 30 days after the decision is given by the Authority.

4.      Where the Authority's decision is given if favor of customs the sum of money paid on protest shall be deemed as the duty and tax payable for the goods, unless the person paid under protest brought an action in a count having jurisdiction within 30 days after he is notified of the decision by the Authority.

     54.  Duty Free Imports

1.      Goods may be imported or exported free from any duties and taxes in accordance with law or international agreement to which Ethiopia is a party or by an agreement made and permission given by the government.

2.      Any goods imported duty free may be sold or disposed to any person who enjoys similar privileges, or exported, without paying duties and taxes; or subject to pay customs duties and taxes at the rate and value prevailing during the time of sales or disposal, be transferred to any person.

3.      Where duty free imported goods are lost or damaged due to force major the importer shall report forthwith to the Authority, and if it is proved to the satisfaction of the Authority the whole or part of the duties and taxes may be cancelled.

55.  Re-payment of Duty

1.      Notwithstanding other duty draw back regulations, repayment claims shall be granted if duties are over charged as a result of incorrect commodity classification, tariff setting, valuation, and other calculation or assessment mistakes.

2.      Pursuant to sub-Article (1) of this Article, duties and taxes shall be repaid when the Authority discovers or when the importer claims for it. However, the duties and taxes may be repaid only if the errors are discovered and lodged to customs within 6 months from the date of clearance for importation or exportation of the goods.

56.  Re-exportation from the Customs Port

Goods imported and declared for home consumption may be re-exported at the request of the importer before accomplishing customs formalities upon payment of 5% the fee of the value of the goods.

57.  Deferred Payment

1.      If the duty paid for the goods imported or exported is less than the actual duty required to be payable the difference shall be collected by the Authority from the owner or his agent.

2.      The collection of the difference refereed to under sub-Article (1) of this Article shall be made by the Authority within two years from the date of clearance of goods.

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