Single window valuation system cargo tracking

19.2 Tax Reduction or Zero Rate
Tax reduction or zero rates are listed in the second schedule 
of the Ethiopian tariff book. Their aim is to encourage business 
organizations involved in activities such as producing goods and 
services by granting them special privileges.
Producers or manufacturers are eligible to use tax reduction or zero 
rates as per Directive No. 45/2008 E.C issued by the Ministry. The 
conditions to be fulfilled to be eligible for second schedule “A” as 
per the Directive are:
• Application letter;
• Business license for current manufacturers, and investment 
license for newly established producers;
• Production capacity, production plan and raw materials plan;
• General description of the company;
• The past two years usage of raw materials, product quantity 
5
The bonded 
input supplies 
warehouse 
scheme
“Bonded input supplies 
warehouse” is a 
warehouse under the 
joint control of ERCA 
and the supplier 
concerned, where 
raw materials and 
accessories imported 
duty free by a licensed 
supplier are stored until 
such time as they are 
sold to producers.
Persons who have 
obtained certificate 
of eligibility from MoI 
and have a warehouse 
meeting ERCA standards.
6
The industrial
zone scheme
“Industrial zone” 
is an area set aside 
for industry that 
is equipped with 
the necessary 
infrastructural facilities 
and enjoys policy 
incentives.
Industries set up within 
an industrial zone and 
that meet the criteria of 
eligibility set by MoI.

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and sales performance for current manufacturers; and
• Input/output coefficient to produce a single unit, and wastage 
amount.
The conditions to be fulfilled to update the authorization certificate 
as per the Directive are:
• Application letter;
• Business license;
• Production capacity, production plan and raw materials plan; 
General description of the company;
• The past two years usage of raw materials, product quantity 
and sales performance; and
• Input output coefficient to produce single unit and wastage 
amount.