Export trade duty incentives in Ethiopia.
The government of Ethiopia with the intention to create conducive environment for domestic products, to become competitive in international commodity markets, to improve the country foreign exchange earnings, at all to have direct or indirect impact on motivating investors engaged in export trade rendering efficient scheme of incentives.
Currently, in Ethiopia the 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 export commodities will be refunded to the payer upon exportation of the commodity.
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 after exporting the commodities.
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 by industry minister.
The following shall be Beneficiaries for duty draw-back incentive scheme are;
- Producer exporters;
- Indirect producer exporters;
- Raw material suppliers;
- Exporters.