1) Legal and institutional framework

Core law. Customs administration is governed by Customs Proclamation No. 859/2014, which defines the powers of the Ethiopian Customs Commission (ECC), declaration procedures, valuation, warehousing, temporary admission, drawback/voucher schemes, offences and penalties, and post-clearance audit (PCA). Authoritative copies of the Proclamation are available in public legal repositories. 

HS implementation. Ethiopia applies the Harmonized System 2022 (HS-2022). The ECC formally notified the World Customs Organization (WCO) that HS-2022 entered into force nationally on 1 January 2022; this is the legal basis for current classification and the tariff book. 

Tariff scheduling & online access. ECC’s Customs Trade Portal provides a searchable tariff (by HS code or keyword), explanatory help on codification, and downloads (including the national CET pages used operationally at customs houses). This is the reference for line-by-line duty, surtax/excise flags, and required supporting documents. 

AfCFTA implementation. Tariff preferences under the African Continental Free Trade Area are operational through Council of Ministers Regulation No. 574/2025 (gazetted 14 July 2025). The Regulation operationalizes Ethiopia’s concession schedule and links to the AfCFTA Rules of Origin; legal copies and practitioner summaries are public. 

Sectoral clearance rules (medicines & inputs). The Ethiopian Food and Drug Authority (EFDA) issued the binding “Guideline for Medicine and Medicine Raw Material Port Clearance, Version 001/2025” on 29 August 2025, standardizing documents, sampling, lab testing, and enforcement actions at ports. 

2) Import procedures (operational sequence at ECC)

A. Pre-import setup

1. Trade licence & importer status. Obtain commercial registration and a trade licence with “import” activity (MoTRI or regional bureaus), plus TIN and VAT registration. (Foundational requirement under Proclamation 859/2014 and trade-licensing laws.) 

2. Foreign-exchange authorization. Secure FX allocation through a licensed bank under NBE directives before contracting and shipment. (Operational banking step; customs checks FX documentation at clearance.)

3. Commodity-specific permits. Obtain pre-import authorizations where required (e.g., EFDA for medicines and medical raw materials; MoA for agro-inputs; INSA for radio/ICT equipment). For pharma, EFDA’s Aug-2025 guideline details dossier content, consignment sampling, testing windows, and sanctions for non-compliance.

B. Shipment documentation (typical)

Commercial/pro-forma invoice, packing list, Bill of Lading/AWB, Certificate of Origin, insurance, and any pre-shipment inspection report if required by regulator or buyer. (Customs will require the import licence/permit references where applicable.)

C. Customs declaration & risk control

1. Electronic declaration. File the import declaration through the ECC Customs Trade Portal, with correct HS-2022 code and Customs Procedure Code (CPC). The portal provides codification help and tariff lookups to support accurate entry. 

2. Verification & inspection. ECC validates classification, valuation, origin/permits, and applies risk-based controls (documentary check, scanning, or physical inspection). WCO records show Ethiopia’s continuing program to strengthen risk management and post-clearance controls. 

3. Assessment & payment. Duties and taxes are assessed per tariff line; payment precedes release.

4. Release & PCA. A 2025 operational adjustment prioritizes faster first-line release (especially for manufacturers) and shifts price verification to PCA, with any underpayments recovered post-release. This policy shift is documented in contemporaneous media and business guidance. 

D. Special customs regimes

• Bonded warehousing, temporary storage, government warehouses, temporary admission, drawback and voucher schemes are provided in Proclamation 859/2014 (and implementing directives). Public copies note treatment of goods under inward processing and refund/voucher modalities. 

• Free-Trade Zone (FTZ). Dire Dawa FTZ is operational, with customs-controlled simplified procedures and duty suspension inside the zone until local entry; formal notices from late-2024 confirm full operations and link to IPDC/EIC processes. 

3) Export procedures (customs perspective)

1. Exporter licensing (trade licence with “export”), plus sector registrations (e.g., Coffee & Tea Authority; MoA/EHPEA; EFDA for processed foods/pharma).

2. Bank registration & payment method (L/C, CAD, advance) and NBE export-proceeds compliance setup.

3. Export permit & quality/phytosanitary (commodity-specific).

4. Customs e-declaration, risk-based inspection where warranted, export release, and five-year record retention for PCA (ERCA/ECC practice and Proclamation framework). 

4) Tariff structure and border taxes (2025)

• Customs duty: Applied by HS line per the national tariff (typical bands 0–35%; check the portal for the precise rate, exemptions, and regulatory flags). 

• VAT: 15% on most imports (base typically includes customs value plus duty and excise where applicable).

• Surtax: Broadly 10% at import; current guidance and summaries (mid-2025) describe the surtax as widely applicable alongside VAT. Always confirm the line-specific computation on ECC systems. 

• Excise tax: Selective rates under Excise Tax Proclamation 1186/2020 (e.g., vehicles, alcohol, tobacco, sugar-sweetened beverages, and other scheduled goods); see tariff line for incidence.

• AfCFTA preferences: Preferential duty reductions now apply to eligible goods of AfCFTA origin per Reg. 574/2025, following the published staging (Category A first-tranche lines are public; sensitive/excluded lists are managed per schedule). Proof of origin is mandatory to claim preferences. 

5) Valuation, classification, and audits

Classification. HS-2022 is mandatory; traders must apply chapter notes, section notes, and GIRs accurately. The ECC portal enables HS search and shows the linked fiscal/permit requirements per line. 

Valuation. Ethiopia applies the WTO Customs Valuation Agreement (transaction value), with imports generally declared on a CIF basis and subject to verification (documentary tests, price databases, and post-entry controls) under Proclamation 859/2014. 

Post-clearance audit (PCA). ECC can audit within five years of release to verify value, origin, classification, use of regimes (drawback/voucher), and licensing. In January 2025 ECC publicly emphasized accelerated release with recovery through PCA—exporters/importers should maintain complete files to mitigate reassessments and penalties. 

6) Active restrictions, bans, and sensitive categories (as of late Oct 2025)

• Internal-combustion engine (ICE) vehicles import ban. Ethiopia’s policy to ban imports of gasoline/diesel vehicles (phased in since 2024) remains in effect in 2025; EVs and narrowly defined special categories are exempt. This is repeatedly affirmed in official and national media reporting through 2025. (Importers should confirm any new exemptions/transition windows before contracting.) 

• “Non-essential items” (2022 measure) — largely lifted. The 2022 administrative ban was rolled back in 2024 for most lines; residual restrictions can subsist in sector notices, so line-by-line checks remain necessary.

• Used clothing/selected second-hand goods. Continuing prohibitions/restrictions apply (periodic enforcement actions are reported); importers should verify latest MoTRI/ECC circulars before shipment. (Policy lineage reflected in government/industry notices.)

• Regulated products requiring pre-clearance. Pharmaceuticals/medical, agro-inputs/plant products, radio/ICT, hazardous chemicals need pre-import authorization; EFDA’s Aug-2025 guideline is now the operative reference for medicines/raw materials at ports. 

• FTZ movements. In Dire Dawa FTZ, goods remain under customs control with duty suspension until they enter domestic circulation; FTZ notices confirm full operations and licensing pathways. 

7) Practical compliance checklist (imports)

1. Confirm HS-2022 classification on the ECC portal; review linked taxes (duty/VAT/surtax/excise) and permit flags. 

2. Secure pre-approvals (EFDA/MoA/INSA) where required; for medicines/raw materials, follow EFDA’s 2025 port-clearance checklist (documents, sampling, testing timelines). 

3. Arrange FX with your bank (NBE regime) before contracting; align Incoterms with CIF valuation practice for declarations.

4. Prepare a complete file: invoice(s), packing list, B/L or AWB, certificate of origin (and AfCFTA CoO if seeking preference), insurance, licences/permits.

5. File e-declaration; respond to any customs query; pay assessed taxes; obtain release.

6. Maintain records for 5 years for PCA (all documents and bank/FX closure evidence). 

8) Executive takeaways

• Ethiopia’s customs regime in late 2025 is rules-based and increasingly digital: HS-2022 classification, a live tariff/HS portal, risk-based controls, and stronger post-clearance audit. 

• Tariff stack at import typically combines customs duty (0–35%), VAT (15%), surtax (≈10%), and excise where scheduled; precise incidence is HS-line specific.

• AfCFTA tariff concessions are now live under Reg. 574/2025; preferences require valid Rules-of-Origin proof and alignment with the published staging. 

• Operational updates in 2025 shift more verification after release via PCA to cut dwell time—robust documentation and internal controls are essential. 

• Restrictions/bans to watch: the ICE vehicle import ban (policy continuity through 2025), residual sectoral bans, and mandatory pre-clearance for regulated products, now guided by EFDA’s Aug-2025 port-clearance standard.

3) Export procedures (customs perspective)

Licensing and sector registration. An exporter must (i) hold a valid trade licence with “export” as an authorized activity and (ii) complete any commodity-specific registrations—e.g., Coffee & Tea Authority (coffee/tea/spices), Ministry of Agriculture/EHPEA (horticulture), EFDA (processed foods/pharma). The official customs guide sets out the export flow and confirms that exporters may act through licensed customs agents. 

Banking setup and payment terms. Each shipment should be registered with an authorized commercial bank; payment instruments typically include L/C, CAD, or advance payment. Banks link the transaction to the exporter’s file and the foreign-exchange regulations (repatriation/retention), which customs may verify during compliance checks. 

Export permits and quality/phytosanitary controls. Where applicable, obtain the export permit (commodity-specific) and any mandatory conformity documents—e.g., phytosanitary for plants/plant products; coffee grading/certification; EFDA approvals for regulated goods—before clearance. 

Customs declaration and release. File an electronic export declaration via the customs system, attach commercial invoice, packing list, transport document (AWB/B/L), origin/quality certificates, and the relevant permit. Exports are processed using risk-based controls (documentary, scanning, or physical inspection). Upon compliance, customs issues the export release; records must be retained five years for post-clearance audit (PCA). 

Repatriation of proceeds. Foreign-exchange proceeds must be repatriated via the banking system under NBE rules (outside the customs law but commonly reviewed alongside customs/audit checks). 

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4) Tariff structure and taxes at import (2025)

Customs duty. Applied by HS line according to Ethiopia’s live tariff; most rates fall within 0–35%. Importers should confirm the exact rate and any regulatory flags on the Ethiopia Customs Trade Portal before lodging a declaration. 

VAT. Standard rate 15%—levied at import in accordance with VAT law (generally on a base that includes customs value + customs duty + excise where applicable). Current summaries confirm the standard rate. 

Surtax. A 10% surtax applies to most imports. As of 22 July 2025, PwC notes the base as the aggregate of CIF value, customs duty, VAT, and excise; always verify line-specific computations in the customs system. 

Excise tax. Selective rates per Excise Tax Proclamation 1186/2020 (e.g., vehicles, alcohol, tobacco, SSBs). Incidence is HS-line specific and shown on the tariff portal. 

Reference point for averages (context). WTO tariff statistics show Ethiopia’s MFN applied simple average at 17.0% in 2021 (Agriculture 22.5%, Non-Ag 16.1%). These are contextual; the legally binding rate is the current HS-line on the portal. 

AfCFTA preferences. From 14 July 2025, Ethiopia operationalized AfCFTA tariff concessions via Council of Ministers Regulation No. 574/2025. Preferential duty reductions apply to eligible goods meeting AfCFTA Rules of Origin with a valid AfCFTA Certificate of Origin, following Ethiopia’s published staging schedule. 

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