Export Incentives

Export Incentives (3)

Sunday, 06 July 2014 18:16

Non-Fiscal Incentives

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The non- fiscal incentives given to all exporters are the following:

  • Investors who invest to produce export products will be allowed to import machinery and equipment necessary for their investment projects through suppliers credit;
  • Investors who invest in areas of agriculture, manufacturing and agro-industry will be eligible to obtain loan up to 70 percent of their investment capital from the Development Bank of Ethiopia (DBE) if their investment is sound to be feasible; and
  • The Government of Ethiopia will cover up to 30 percent of the cost of infrastructure (access road, water supply, electric and telephone lines) for investors investing in industrial zone development.
Sunday, 06 July 2014 17:20

Fiscal Export Incentives

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The fiscal incentives given to all exporters are the following:

  • With the exception of few products (e.g. Semi-processed hides and skins-150%), no export tax is levied on export products of Ethiopia;
  • Duty Drawback Scheme: It offers investors an exemption from the payment of customs duties and other taxes levied on imported and locally purchased raw materials used in the production of export goods. Duties and other taxes paid are drawn back 100 percent at the time of the export of the finished goods;
  • Voucher Scheme: A voucher is a printed document having monetary value which is used in lieu of duties and taxes payable on imported raw materials. The beneficiaries of the voucher scheme are also exporters; and
  • Bonded Manufacturing Warehouse Scheme: Producers not eligible for voucher scheme but having licensed for bonded are entitled to operate such warehouse in importing of raw materials duty free.
Sunday, 06 July 2014 17:16

Export Incentives

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The fiscal and non-incentives given to all exporters are:

  •  Fiscal
    • Duty Drawback Scheme
    • Voucher Scheme
    •  Bonded Manufacturing Warehouse Scheme
  • Non-fiscal

The non- fiscal incentives given to all exporters are the following:

  • Retain up to 20 percent of foreign exchange;
  • Franco valuta import of raw materials; and
  • Export credit guarantee scheme.