Single window valuation system cargo tracking

12 Tariff classification
12.1 Introduction
The Ethiopian import tariff is based on the internationally 
accepted Harmonized Commodity Description and Coding 
System (Harmonized System, HS).The legal framework for the 
application of the HS is the International Convention on the 
Harmonized Commodity Description and Coding System and 
Ethiopia’s Ratification Proclamation No. 67/1993. At present, tariff 
classification in Ethiopia is governed under the terms of Article 102 
of the Customs Proclamation.
All customs tariff revisions and amendments since 1993 have been 
done based on the HS. The current version of the national tariff 
book is in accordance with the 2012 version of the HS.
“Tariff classification” is the process of determining the particular 
tariff heading or sub heading of a commodity. Classification is done 
on the basis of the following:
• Description of the commodity;
• Composition and other technical specification; 
• Manner of presentation (e.g., packing for retail sale); Degree of 
manufacture; and
• Function or use.
The declarant is legally responsible for goods’ correct tariff 
classification. Tariff classification is important to ensure that the 
declarant:
1. Pays the correct amount of duty and tax;
2. Receives any manufacturers tariff advantage;
3. Contributes to the accuracy of import and export trade statistics;
4. Declares the origin of goods; and

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ETHIOPIAN CUSTOMS GUIDE -
MARCH 2017
108
5. Contributes to the control of restricted/prohibited/goods.
The most important function of tariff classification is its role in 
determining the duties and taxes to be applied. These are payable 
at the rates specified by the customs tariff regulation fir the specific 
tariff line assigned to the good. However, where the classification 
of goods and drawing up of goods declaration becomes difficult 
due to a consignment containing goods falling under different 
tariff classifications, the Ministry may, at the request of the person 
presenting the declaration, allow that the customs duty for the entire 
consignment be charged on the basis of the tariff classification of the 
goods which are subject to the highest rate of customs duty.
If classification is done incorrectly:
• A penalty may be applied at customs entry;
• Arrears plus interest, of duties and taxes that have been 
incurred over the previous five (5) years may be charged; and
• Goods may be delayed and/or seized.