Monday, March 21, 2011

New directive bans duty free privilege for minibus imports

(19 March 2011, Addis Ababa)--A new directive issued by the Federal Investment Board has effective February 25 lifted the duty free privilege enjoyed by operators in the hospitability industry.

Communicated to the Kaliti Customs Office, which handles duty free privilege imports, on March 7, the directive stipulates that the duty free privilege for minibus import has been lifted as of February 25, according to anonymous sources from the customs office.

An official with the Ethiopian Investment Agency (EIA) acknowledged that the agency has passed the directive to the customs office on March 7 though the person declined to provide further details about the move taken by the Board.

Following the issuance of the directive, scores of tour operators and hoteliers have for over a week now been unable to secure the duty free entitlement from the customs office, thereby failing to bring into the country the minibuses they have already imported duty free as they used to, The Reporter learnt.

The customs office and EIA are now sorting out how to handle those cases related to duty free privilege entitlements given to pertinent operators between February 25 and March 7. While banning the duty free privilege for minibus imports, the directive allows the import of buses with 45 seats and above duty free.

The directive encourages those tour operators and hoteliers operating in areas far from Addis and other major cities by increasing the number of vehicles they can import duty free including buses and station wagons, thereby promoting investment in the hospitality industry in far and remote areas from Addis and other major towns. The directive also incorporates additional duty free entitlements for businesses engaged in the manufacturing sector.
Source: Reporter

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