The Ethiopian Revenues and Customs Authority completed a study to improve problems related to bonded customs warehouses. The research which categorized the legal and practical problems in relation to bonded warehouses is expected to be used to change regulations.
The research discovered that bonded warehouses located in the industrial parks have many illegal activities occurring in them. Industrial parks, including the factories, are considered bonded warehouses and they are subjected to close supervision.
The research suggests that in a 700sqm compound the warehouse must be a minimum of 50sqm. The person authorized to administer the warehouse was sometimes discovered to be replaced with other people without the authority’s knowledge.
The study also recommended the materials in the warehouse and the building be insured and lifted the need to ensure the tax and customs duty. Currently there is no specified statement for what the insurance company’s responsibility is.
The research also specified that the amendment of the regulation should consider the location of the warehouses only on the logistics route of the country.
The team which found warehouses in residential areas which they said created a risk to society. It recommended the location to be in the outskirt of Addis and other areas in the import corridor.
Previously the issue of the warehouse used to be handled in the branch offices. It was before few months that the mandate was returned to the headquarters. After the change in the mandate the authority tried to tighten the controlling methods.
Bonded warehouses are used to store items with custom duty and tax for a maximum of four months. The taxpayer will get an additional two months if they store the item in their warehouse. The duties and taxes can be paid when the item is sold. The scheme is implemented to encourage the business community have enough time to search for a market after the accession of the item. If the item was stored in the government stores the maximum time limit will be two months.
Problems traced by the research in relation to the time limit say there is no specific provision when the exact time that items need to be taken out of the warehouse after they are sold. Some are seen holding items in the warehouse after they sell it just not to pay the payments until the time lapses.
Infrastructure which is expected to be fulfilled is observed by the research to be below standards. Warehouse without a shade was observed in the study. There was also a warehouse discovered without an asphalt or concrete floor.
Controversy between the administrative decisions and the laws need to be resolved, according to the study.
The authority which had 265 licensed warehouses last year, stopped 56 warehouses from renewing their license because of low standards and annual fee-related issues. Among the failed warehouse some were in industrial parks. Among the 16 warehouses in the Adama town, the Authority renewed only two.
“The research will be used to modify the existing regulation and directives,” Yoseph Shiferaw, customer service director told Capital.
Total awards youth with new ideas
To promote young business entrepreneurs Total Ethiopia has launched the registration which will award top three entrepreneurs a total of USD 50,000.
The 2018-19 startupper of the year award by TOTAL challenge will support and reward young local entrepreneurs in any business sector who have a project or business less than two years old.
Registration is open and applications are being accepted until 13 November.
This challenge targets young local entrepreneurs who have an innovative project or idea that could make a change in their country. After several selection steps, a local jury will nominate three winners and the top female entrepreneur award.
The three winners will get the 2019 STARTUPPER OF THE YEAR Award, along with financial support, exposure and coaching for their project.
A local jury comprised of experts from Total, specialists from incubators and business leaders and local community stakeholders will select the winners.
The project will be passed on the entrepreneurs: innovation nature, social and community impact, feasibility and development potential.
Athlete Haile Gebrselassie, Ambassador of Total said at the registration launching ceremony the program is a good motivation for young entrepreneurs.
“We must create something to develop, we must change our idea into action to grow and such kind of program is the key tool to support people who have ideas but no money,” he said.
Total was established in Ethiopia in 1950 as a petroleum product distribution company, developed its activities by merging with Mobil Oil East Africa in 2006. Today, the company has 148 operational service stations and four operational depots with one new depot being constructed in Dukam town and two more aviation depots under construction in Lalibela and Shire.
Detergent factory shut for health, environmental concerns
A Chinese detergent factory in Alme Gena has been shut down after the Ministry of Trade found that the company produced low quality products and distributed it to the market without obtaining the proper license.
The company which produced soap and powder detergent under the brand name Lavi and Panda was closed last week. Depending on laboratory studies further legal action may be taken.
Earlier this month the Ministry of Trade began an investigation after receiving complaints that people using the detergent were having health problems and that it could cause environmental damage. Inspection officers for the Ministry told Capital that the company sold the product without getting approval from the appropriate government body.
“Results showed that the samples were sub-standard and taken from Mercato. When we first went to the company some employees tried to prevent us from entering but we finally moved inside the company and found that there were unlawful activities occurring.”
The inspectors would not reveal the name of the company.
In related news the inspectors added that road sheet products coming from the eastern part of the country are being distributed improperly.
The sheets are lower quality and below standard. They are being sold to rural farmers at a very low price and coming from unknown suppliers.
“The products are very thin and are not coated with proper painting we have found several sheets in the market and we will work to stop this.’’
“The bad part of using the product is they are easily pierced by small objects and which leads to additional cost for the customers. The reflection that comes off the sheet could cause additional problems as well.”
Watergate Hotel to re-open as Olympia
Tulip Inn, a four-star brand name hotel which is a subsidiary of Louvre Hotels Group signed its first deal in East Africa. Olympia Hotel will be opened in Addis Ababa after renovations are completed on an already existing hotel. Louvre Group has other brand name hotels in Addis Ababa.
Kumeger Teketel founder and CEO of Ozzie noted that there are now thirty brand name hotels in Addis Ababa. He believes that as more high standard hotels come into the country and people see the difference that management and practices in the hospitality industry will improve, eventually leading to Ethiopia being registered on the global MICE map.
“As MICE infrastructures in the country are accelerated we will fulfill the basic element of standard hotel services,” he said.
Previously the facility was known as Watergate Hotel and was owned by, Habtu Mulialem. He owns MSN, a company which exports cereals. The building has 12 storeys and a large parking lot. The facility will include 109 rooms, two restaurants, one bar, one coffee shop, meeting rooms, steam bath and gymnasium.
“Olympia’s amazingn location in the heart of Addis Ababa offers restaurants and clubs”, the group expressed in its statement sent to Capital.
The Group works in 10 sub-Saharan African countries and is known for its Golden Tulip, and Royal Tulip Hotels. They have 2800 rooms in sub-Sahara Africa. They plan to invest even more in sub-Saharan Africa by opening one hotel per quarter and signing one new deal each semester for three years.
Louvre Hotels Group is a major player in the worldwide hotel sector with 2,500 hotels in 52 countries. The group is known for its variety of star collections and is a subsidiary of Jin Jiang International Holdings, one of the largest tourism and travel conglomerates in China.
The mid upscale hotel is expected to start re-operation within two months and will create 175 jobs when it opens.
Ozzie brings 17 brand hotels to Ethiopia. Thirteen additional hotels are in the pipeline and 38 are under the negotiating process.
