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13
April

Export Incentives

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FISCAL
     The fiscal incentives given to all exporters are the  following:
1. With the exception of few products (e.g. Semi-processed hides  and skins), no export tax is levied on export products of Ethiopia;
2. Dut y  Drawback  Scheme:  It  offers   investors    an   exemption from   the payment of customs duties  and other taxes levied on imported and locally purchased raw  materials used in the production of export  goods. Duties and other taxes paid are   drawn back  1 00 percent at the  time   of  the export of the  finished goods.
3. Vuuctrer Sctreme: A vuuctrer   is    u  FJrirrleu uucurrrenl truvir r iJ rrrunelury value which is used in lieu of duties  and taxes payable on  imported raw materials. The beneficiaries of the voucher scheme are also exporters.
4. Bonded Manufacturing Warehouse Scheme:  Producers not   eligible for voucher scheme but  having licensed for bonded  manufacturing warehouse are entitled to operate such warehouse in importing of raw materials duty  free.

NON-FISCAL

  • Exporters are allowed to retain and deposit  in a bank  account up  to 20 percent of their foreign  exchange export  earnings for future  use in  the operation of their enterprises and no export  price control is imposed by the National Bank of Ethiopia;
  • Franco valuta  import  of raw materials  are allowed for enterprises engaged in export  processing;
  • Exporters can benefit from the export credit guarantee scheme which is presently  in place in order  to ensure an exporter  receives  payment for goods shipped overseas in the event  the customer  defaults, reducing the risk of exporters'  business and allowing it to keep its price  competitive.
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