Export trade duty incentives in Ethiopia. Duty draw back incentive.

Export trade duty incentives in Ethiopia

To create conducive environment for domestic products to become competitive in international commodity markets, to improve the country foreign exchange earnings the government of Ethiopia rendering efficient scheme of incentives to having direct or indirect impact of motivating investors engaged in export trade.

The Ethiopia government implements the following six export trade duty incentive schemes;

These are;

a) The duty draw-back scheme;

b) The voucher scheme;

c) The bonded export factory scheme;  

d) The bonded manufacturing warehouse scheme;

e) The bonded input supplies warehouse scheme; and

f) The industrial zone scheme.

DUTY DRAW-BACK SCHEME

Duty draw-back means duty paid on raw materials and accessories used in the production of commodities and refunded to the payer upon exportation of the commodity processed;

The Ethiopian Customs Commission shall effect the refund payment to the beneficiaries concerned within 30 days of receipt of complete claim for duty draw-back. The budget required for duty draw-back shall be allocated by the government.

The implementation of all industry rates of duty draw-back or amount of the duty draw-back shall be calculated on the basis of input and output coefficient determined.

The following shall be Beneficiaries for duty draw-back scheme are;

  • Producer exporters;
  • Indirect producer exporters;
  • Raw material suppliers;
  • Exporters.

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