Single window valuation system cargo tracking

19.1.1 Investment Tax Incentives
An investment is expenditure of capital in cash, in kind, or both 
to establish a new enterprise or to expand or upgrade one that 
already exists. An investment incentive is a duty relief on the goods 
imported by an investor as per Council of Ministers Regulation No. 
270/2012. Two types of investment tax incentives are distinguished: 
exemption from income tax and exemption from customs duty.
Anybody who invests in Ethiopia is eligible to use Investment Tax 
Incentives as per Council of Ministers Regulation No. 270/2012 on 
investment incentives. The following items can be imported duty 
free (exempted from customs duty and tax):
• Capital goods; 
• Construction materials; 
• Motor vehicles; and

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• Spare part whose value is not greater than 15% of the total 
value of the capital goods to be imported within five (5) years 
from the date of the investment project’s commissioning.
Capital goods or construction materials, or motor vehicles 
imported duty free can be transferred to persons with similar duty 
free privileges. This transfer may also be made to persons having 
no similar duty-free privileges upon effecting payment of the 
appropriate customs duty. In addition, the exempted goods can be 
re-exported.
If duty and tax free imported goods are lost or damaged, the duty 
and tax right holder is required to report this to ERCA.
19.1.2 Export Trade Tax Incentive
An export trade incentive is a measure to promote exports from 
Ethiopia and create a conducive environment for domestic products 
to become competitive in international commodity markets. The 
following types of export trade tax incentives exist and eligible 
beneficiaries are distinguished:

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Export trade 
tax
Meaning
Beneficiaries
1
The duty draw-
back scheme
“Duty draw-back” 
is duty paid on 
raw materials and 
accessories used in 
the production of 
commodities and 
refunded to the payer 
upon exportation of the 
processed commodity. 
Producer exporters, 
indirect producer 
exporters, raw material 
suppliers, and exporters.
2
The voucher 
scheme
“Voucher book” is a 
document printed by 
ERCA to be used for 
recording the balance 
of duty- payable on raw 
materials imported for 
use in the production of 
goods for the external 
market.
Producer exporters, 
indirect producer 
exporters, and raw 
material suppliers.
3
The bonded
export factory 
scheme
“Bonded export 
factory” is a factory 
under the control of 
ERCA that produces 
goods exclusively 
for export, using raw 
materials imported duty 
free.
Persons who have 
engaged exclusively in 
the production of export 
commodities, obtained a 
certificate of eli- gibility 
from MoI, and have a 
manufacturing plant that 
meets ERCA standards.
4
The bonded 
export 
manufacturing 
ware- house 
scheme
“Bonded export 
manufacturing 
warehouse” is a 
warehouse under joint 
control of ERCA and 
the factory concerned, 
where raw materials 
imported duty free for 
use in the production 
of goods destined 
exclusively for export, 
as well as goods 
produced using such 
raw materials, are 
stored.
Producers who are 
engaged exclusively in 
production of export 
commodity, have 
obtained a certificate of 
eligibility from MoI, and 
have a manufacturing 
warehouse that meets 
ERCA standards.

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