Investment incentives in Ethiopia

Exemption of Capital Goods and Construction Materials from Customs Duty

  • New investor or an investor expanding existing investment can import capital goods and construction materials necessary for the establishment of a new investment or the expansion duty free;
  • For the implementation purpose, the investor shall submit, the list of capital goods and approved bill of quantities of construction materials to be used as an input and get approval of same from the appropriate organ;
  • If an investor entitled to a duty-free incentive can buys capital goods or construction materials from local manufacturing industries, he shall be refunded with the import tax paid for the raw materials or components used as inputs for the production of such goods;
  • An investor eligible to a duty-free incentive shall be allowed to import spare parts the value of which is not greater than 15% of the total value of the capital goods within five years from the date he becomes eligible for the incentives or from the date the business license is issued, as the case may be.

 Reference:  Article 12 of Ethiopian Investment Incentive Regulation number 517/2022

Leave a Comment

Your email address will not be published. Required fields are marked *

Translate »
Scroll to Top
Apex Business Consultancy