Ethiopia: The Government of Ethiopia Unveiled a Major Revision of Tariffs on Imported Goods

On August 6, 2021, the Government of Ethiopia (GOE) announced a revised edition of the customs tariff book. The revised tariff book includes over 8,000 tariff line items for raw materials, intermediate, consumer-oriented, and capital goods. The GOE intends to achieve two main objectives by applying the revised tariffs on imports. First, the GOE aspires to enhance the competitiveness of domestic producers by imposing a higher duty on similar goods locally produced in sufficient quantity and quality. Second, the GOE intends to support local producers who import raw materials, which are unavailable domestically, at low tariffs. The GOE also amended the customs tariff to align with its ten-year economic development plan. In addition, Ethiopia envisages harmonizing its tariff book with that of the World Customs Organization (WCO). The tariff amendment, combined with other trade measures and policy reforms, could accelerate the country's integration into regional and global trading systems.