If you are an Ethiopian who resides in Ethiopia, or who returns to Ethiopia after a period of time abroad, you may wish to import a motor car for personal or public use.To do so legally you will need an importation license issued by the government. Importing a vehicle without a license would be illegal and punishable by law. If you do not have the required license then you may import a motor vehicle through a registered importer. They will undertake the following activities on your behalf;
• Declare to customs the vehicle you wish to import • Calculates the duty and tax payable on your vehicle • Deals with the transport company that brings your vehicle to the port of Djibouti and then onwards to Addis Ababa • Liaises with the insurance company who will provide the appropriate cover
You will need to contact one of the import companies in Ethiopia to discuss the relevant issues.
Unless exempted by law, your motor car is liable to five different taxes. These taxes are assigned priority levels and are calculated in a sequential order. These taxes, in their sequential order, are Customs Duty, Excise Tax, VAT, Surtax and Withholding Tax.
Motor vehicles with a seating capacity greater than 15 passengers, including the driver, are charged at a 10 percent customs duty rate. These vehicles are exempt from excise tax. Motor vehicles with a seating capacity greater than 10 but less than 15 passengers, including the driver, are charged at a 35 percent customs duty rate. These vehicles are exempted from excise tax.
However, if your motor vehicle has a seating capacity of less than 10 passengers, you are obliged by law to pay customs duty plus other taxes including excise tax. The excise tax to be levied on your motor vehicle depends on the cubic capacity of the engine. First, those motor vehicles with a cubic capacity from 1000 to 1300 are liable for 30 percent excise tax rate. motor vehicles with a cylindrical capacity from 1300 to 1800 are liable for a 60 percent excise tax rate. Lastly, motor vehicles with cubic capacity exceeding 1800 are liable for 100 percent excise tax rate.
One of the tariff officers in Valuation & Tariff Classification Directorate can roughly calculate the likely tax payable on your car if you provide them the following information:
1. Type of your car e.g. Toyota corolla, 2. Model of your car, e.g. ZZE 142L, 3. Cylindrical capacity (cc), e.g. 1800cc, 4. Year of manufacture of your car e.g. 2008.
To speed up the examination of the goods, the customs officer uses scanning machines which takes approximately three to five minutes. This has enabled ERCA to detect a wide variety of illegal goods concealed in the import-export cargo. The examination is directed against smuggling, an illegal act of bringing or taking out of the country goods for which duty has not been paid and goods the importation or exportation of which is prohibited. The examination of import export goods is under the jurisdiction of customs stations, branch offices of the Ethiopian Revenues and Customs Authority (ERCA).
All import-export and transit goods which its risk level is red are to be examined by scanning machine. The examination of the goods takes place at the entry or exit customs control stations at the border and at any place in the transit route where scanning machine is installed.
When the result of the scanning machine leads to a suspicion that there might be smuggled goods in your cargo, the customs control station may escort the suspected cargo to its destination. Then, the customs station at the destination examines the goods manually, studies the nature of the violation against customs law and its negative impact on the interest of the government and the public at large. Finally, resolves the offence using a method which has two aspects. First, the customs station tries to solve the problem administratively if it believed that the offence involved with smuggling is only a minor one. Second, if the customs station believed that the smuggler has committed serious offence, the case will be taken to court.
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