Wednesday, September 9, 2020

Tax on Coffee Exported from Ethiopia Proclamation No. 99-1998





WHEREAS, consolidating the various taxes and duties levied by different Proclamations and Regulations into a single tax facilities execution;

WHEREAS, converting specific rates into advalorem ensures the equability of the tax;

WHEREAS, it is necessary to lay down procedures to protect revenue against fluctuations due to change in prices and adjust the tax rate following market trend.

NOW THEREFORE, in accordance with Article 55(1) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows:


1. Short Title

This Proclamation may be cited as "Tax on Coffee Exported from Ethiopia Proclamation No. 99/1998."

2. Definitions

In this Proclamation:

1) "FOB" means selling price of coffee quoted at the port of loading, agreed between the Coffee exporter and his customer and approved by the National Bank of Ethiopia, from which freight and insurance costs are excluded.

2) "Tax" means the tax payable on Coffee exported in accordance with this Proclamation.


3. Basis of Computation of Tax

The FOB price of the coffee exported shall be the basis for the computation of the tax.

4. Rate of the Tax

The rate of the Tax shall be 6.5%(six and half per cent) of the FOB price.


5. Collection of the Tax

The Tax on Coffee exported shall be computed and collected by the Customs Authority.


6. Payment of the Tax

1) The Tax shall be paid at the Customs Station where the Coffee is declared for export.

2) If the Coffee is not exported on the date on which it shall have been exported and in the meantime the Council of Ministers increased the rate of the Tax, the exporter shall pay the difference between the increased rate and the rate that has actually been paid.


7. Refund

No refund to Tax once paid will be made.


8. Power to Issue Regulations

The Council of Ministers is hereby empowered to issue regulations amending the rate of the Tax specified under Article 4 of this Proclamation following fluctuations in the quantity and price of Coffee exported.

9. Duty to Cooperate

1) Any person or organization has the duty to co-operate with the Customs Authority in the implementation of this Proclamation.

2) The National Bank of Ethiopia has the duty to cooperate with the Customs Authority in the supply of information regarding the sales date of the Coffee, contract number, the name and address of the exporter, the quantity and price of the Coffee.


10. Formalities

The provisions concerning customs formalities of export merchandise under the Re-Establishment and Modernization of Customs Authority proclamation No. 60/1997 shall apply to Tax payable in accordance with this Proclamation.


11. Repeals

The following laws are hereby repealed:

1) Transaction Tax Proclamation No. 205/1963

2) The third schedule (export duties) attached to the Customs Tariffs Regulation No. 42.1976.

3) Coffee Surtax Regulation No. 280/1964 and all subsequent amendments.

4) Cess on Coffee Exported from Ethiopia Regulations No. 47/1976.


12. Transitory Provisions

Customs duty, transaction tax, Surtax and Cess due prior to the coming into force of this Proclamation shall be paid in accordance with the relevant laws then in force.







13. Effective Date

This Proclamation shall enter into force as of the 19th day of February, 1998.

Addis Ababa, this 19th day of February, 1998.






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