Customs Commission Backtracks on Pre-Float Import Tax Calculations


Customs Commission Backtracks on Pre-Float Import Tax Calculations

Ethiopian Customs Commission has announced revised import tax regulations allowing shipments documented before the currency liberalisation will be subject to import taxes calculated based on the exchange rate prevailing at the time of documentation. However, for shipments documented after the reforms, the Commission set taxes and duties be determined using the daily indicative exchange rate set by the central bank.

The announcement comes a week after Commissioner Debele Kabeta issued a directive requiring all customs branches to adjust declaration rates to the current exchange rate, even for goods registered before the currency liberalisation. It also mandated the re-collection of taxes on imported goods previously assessed at the old rates.

The reform has had immediate consequences for importers, who are now facing higher costs. Businesses that had opened Letters of Credit (LCs) before the change were particularly hard hit, as they were forced to pay duties calculated at the new, higher rates, regardless of the exchange rate in effect when the LCs were issued. This has led to widespread disruption, with companies scrambling to cover the unexpected additional costs.

Debele noted the Commission’s efforts to adapt to the new economic landscape. He urged importers holding goods in dry ports due to misunderstandings to clear their shipments promptly. Failure to comply, he warned, could result in legal action.

   

[ssba-buttons]

Radar

Korenti, Agelegel Microfinance Ink EV Financing Deal

Korenti Auto Trading PLC has signed a strategic agreement with Agelegel Microfinance to provide accessible financing options for electric vehicle (EV) buyers. The partnership seeks to ease EV ownership by offering fair pricing and loan packages with affordable rates. The initiative supports Ethiopia's push for clean transport and aligns with national sustainability goals. Korenti's managing director said the move reflects the company's commitment to expanding electric mobility. Customers can now...


Radar

NBE Leads Week-Long Bank Supervision Application Forum

The National Bank of Ethiopia (NBE) is hosting a week-long Bank Supervision Application (BSA) User Group meeting that began on July 7, 2025. The BSA system, developed by a pan-African consortium of central banks including the NBE, automates supervisory work for financial regulators. NBE will take over the rotating BSA chairmanship in September. Opening the session, Frezer Ayalew, Director of Bank Supervision, stressed the need for modern tools to handle growing regulatory demands amid cyberse...


Radar

Six Fuel Companies Banned, Seven Warned, Authority Noted Illicit Activity

The Ethiopian Petroleum & Energy Authority has taken disciplinary action against 13 fuel distribution companies for illegally trading 2.8 million litres of fuel outside the digital system in the past two months. Six firms face a one-month suspension from the fuel import and trading market, while seven others received final warnings and must rectify their operations within a month. Director General Destawe Mekwanant (PhD) said the companies failed to monitor fuel stations and ensure proper...