- Ethiopia’s customs valuation system has relied on arbitrary reference prices, causing distortions in trade, banking, and taxation.
- The old directive (158/2011) often rejected importers’ declared prices if they deviated from government database prices, disregarding actual market transactions.
- This practice burdens importers, exposes them to audits and penalties, and distorts domestic pricing and business operations.
- A new directive (1080/2025) aims to align customs valuation with international standards (WTO CVA), but concerns remain about whether it will resolve entrenched problems or simply repackage them.
Source: ethioalliancelaw.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "Ethiopia"
- Ethiopia Introduces New Tax and Customs Incentives to Boost Investment in Strategic Sectors
- Ethiopia Imposes 15% VAT on Non-Resident Digital Service Providers Supplying Ethiopian Customers
- Draft VAT Refund Directive Proposes Major Changes to Eligibility, Exporter Rules, and Refund Process
- Ethiopia Mandates VAT Registration for High-Income Taxpayers and Bookkeeping Entities Under New Directive
- Ethiopia Clarifies VAT Registration Obligations for Taxpayers with New Directive Effective September 2025
