Step
Years of vehicle use starting from
manufacturing date
Depreciation by
percentage (from
FOB price)
1
Below one year (< 1 year)
0%
2
From one year to below two years (1
year <= 2 years)
10%
3
From two years to below three years
(2 years <= 3 years)
20%
4
Three years and more
30%
Customs value of used vehicle = (FOB price of new vehicle
– depreciation) + (the sum of transportation, insurance, etc.)
Whenever a vehicle stays in a new condition for more than a
year, no depreciation will be applied, and the duty paying value is
calculated as for a new vehicle.
• Used Goods imported for home use: A used good is one
that gives service after production, except used clothes.
The customs value of imported used goods is mostly
determined by the fallback method, but the identical/similar
goods methods are also used by deducting the depreciation
amount and adding transport, insurance and other costs. The
depreciation amount is calculated by deducting 30% from the
FOB value.
• Temporarily imported goods: temporary importation means
that goods enter a customs territory for a limited period
of time and are then removed from the territory again,
unchanged, and without any duty liability arising, but at
the time of removing the goods from customs territory (re-
ETHIOPIAN CUSTOMS GUIDE -
MARCH 2017
105
exportation), duty and tax is paid on the depreciated value as
per the directive issued by the Ministry.
• Duty free imported goods: Duty and tax exempted imported
goods may be re-exported or transferred to a person who
enjoys similar privileges without payment of duties and taxes
or transferred to any person upon payment of duties and
taxes. The duties and taxes are calculated at the value of
goods and tariff rates prevailing during the time of disposal.
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