Joint Workshop between EUBFE and Ethiopian Customs Commission Delivered

A joint workshop organized in collaboration with the Ethiopian Customs Commission was held on April 15, 2021 The basis of this workshop is the list of specific issues that were submitted by the EU Business Forum to the commission, following a mini survey disseminated amongst members. Some 40 logistics managers and staff members from EUBFE member companies took part. From the Customs Commission’s side, a number of directors including Mrs. Abeba Kiros- Director, Strategic Partnership Directorate, Ato Endashaw Temesgen -Director, Import goods procedure and support directorate as well as Mrs. Gennet Abreham - Director, Manufacturer and Export Trade Procedure and Support took the podium to lead the Q&A session.

The objectives of the workshop were
• to present the key systems that are instituted that would enable swift release of goods, within the 10/15 days deadline
• to discuss on the issues and challenges submitted by member companies, including but not limited to o repetitive inspections, rejection of transaction values, LC extension related challenges, duty free imports privilege rejection, lack of clarity on investment on logistics sector, missing HS codes on single window and consolidation of goods

Based on the queries raised by participants, the panelists as well as the other invited guests from ECC provided detailed explanation upon the return of participants from health break. The explanations were made by the panelists as well as Ato Habtamu Tilahun from Legal Directorate, Mr. Behailu Bedasso (lead valuation expert) from Valuation Directorate, Ato Sebsbie Fekade from ESW (team coordinator), Mr. Zewdu Tsehay from transit and warehouse directorate (lead expert) and Ato G/Egziabher G/Tsadik (deputy manager) from Kality Customs branch.

A summary of the responses is as below.

• Price valuation is tolerated if it falls between 5-10% of ECVS. Regardless, the ECVS is being updated to reflect current prices and add new commodities; it is now at a pilot stage
• Companies need to supply complete documents to enable ECC assessors make informed decision. In this regard, for ECC to be convinced of transaction value, sales contract needs to be submitted on top of LC and commercial invoices.
• Price valuation remains a contentious area.
• The first 4-6 digits of HS code are usually the same globally and the remaining will differ according to country context. Transiters should have the ability to navigate this.
• The Ethiopian Single Window system (ESW) is currently serving the business community. Some 16 companies, mainly banks and insurance companies operate within this framework. Training is being provided to the business community on ESW on a continuous bases and based on needs experts will be happy to extend one to EUBFE members.
• In situations where system failure happens in partner organizations, like Ministry of Agriculture, the ESW secretariat will be happy to intervene to support business in clearing their commodities on time.
• The 10/15 days deadline kicks in on the day T-1 is validated. This means the day the shipment arrives in its designated warehouse, be it in Modjo, airport or even ECC certified duty-free warehouses.
• Pre arrival clearance is indeed actively applied although some transiters do not seem to use this opportunity. However, it is one area that is targeted for improvement since it lacks harmonization across branches and does not meet international standard.
• ECC is committed to developing the capacity of its staff. It also takes note that some of the challenges are rooted in absence of the right skills. ECC is open to partner with stakeholders including the private sector to this end.
• The issue of expanding the privileges being an AEO to other government agencies has been tabled for consideration at the prime minister’s office. In this manner, law abiding companies will have significant benefits.