Customs Tightens Noose on Car Imports Amid Embargo

Sep 2 , 2023


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Vehicles reported under the ownership of returning Ethiopians from abroad will be subjected to 10pc penalties after paying full duties while purported owners need to be physically present for the clearing process. According to a letter penned by Commissioner Debele Kabeta last week, importers have been utilising the privileges of returning diasporas for their own purposes despite suspensions on the issuance of letters of credit from banks for car imports by the Ministry of Finance in October. A week prior, another letter was issued by the Customs Commission to communicate the restrictions on car imports, only leading to confusion on items already in transit or at customs branch offices. Car prices have gone through significant increases in the two weeks since the pronouncements by the commission. Embassies, international organisations and institutions granted special privileges by the Ministry will not be subjected to stipulations according to the notice. While the initial prohibition was ushered in during a period of conflict which led to the country's forex reserves dwindling, it has been maintained throughout the year after the peace accord, signalling the aftermath of war is economically much more catastrophic.


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