Capital Ethiopia Newspaper

New proclamation to boost export

A new draft proclamation is being proposed by the Ministry of Finance and Economic Development (MoFED) to provide more incentives to increase exports. This is being done to replace the proclamation ratified six years ago.
The new export trade duty incentive schemes will not be limited to a duty draw back scheme (otherwise known as a zero taxation incentive); instead it will offer improved incentives. 
According to the new draft document, the bonded export factory scheme, manufacturing warehouse scheme, input supply warehouse scheme and industrial zone scheme are included in the new proclamation proposed for the parliament last week.
The new proclamation has also revised the previous and lethargic duty draw back scheme. In the prior law, exporters had to wait almost the whole year to exercise their duty draw back. But the new draft law will allow exporters to receive their duty draw back within 30 days after a formal request.
The bonded export factory scheme has been exercised in other countries; aiming to expand the industrial export. This incentive will provide industries access to raw materials and other necessary in puts with less customs bureaucracy. The bonded warehouse scheme that was applied for the leather sector in the past two years is going to be applied for other industrial sectors based on the draft law.
To realize the ambitious five years development plan (GTP) the government is introducing several new measures in various sectors of the economy.