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Import vehicles into Ethiopia

Import vehicles into Ethiopia

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Ethiopia

Thailand top new and used car 4x4 vigo triton exporter to Ethiopiathailand top car 4x4 exporter importer to ethiopia east africaSituated in eastern Africa, Ethiopia (formerly called Abyssinia) has an area of approximately 1,127,127 sq km (435,186 sq mi), with a length of 1,639 km (1,018 mi) E–W and a width of 1,577 km (980 mi) N–S. Comparatively, the area occupied by Ethiopia is slightly less than twice the size of the state of Texas. It is bounded on the N by Eritrea, on the NE by Djibouti, on the E and SE by Somalia, on the S by Kenya, and on the W by Sudan, with a total boundary length of 5,328 km (3,311 mi). The Ogaden region of eastern Ethiopia is claimed by Somalia and has been the subject of sporadic military conflict between the two nations since 1961; the southeastern boundary has never been demarcated. Ethiopia's capital city, Addis Ababa, is located near the center of the country.

The vehicle must be Left Hand Drive. Ethiopia's import duties average ??  per cent and range from a low of 2 per cent to a high of 32 per cent.  Ethiopia also applies other duties and charges such as /service centers in Bissau, although service and parts availability for those models are patchy. Maintenance and repair facilities are limited both in expertise and availability of parts.

It is best to acquire a four-wheel-drive or some other type of sturdy vehicle with high ground clearance and heavy duty suspension for safety reasons, given the poor road conditions within and outside the city. You should order air, oil, and fuel filters; spark plugs; spare tires and inner tubes; extra windshield wipers; plus all required extra supplies and parts along with your vehicles as they will not be available easily once the vehicle is in.

Leaded gasoline and diesel fuel are reliably available in the capital and generally available in country’s interior. Because octane ratings are not high, the performance of engines designed for premium gasoline may suffer. Unleaded gasoline is not available, so catalytic converters should be removed before shipping vehicles to Guinea-Bissau. Although diesel fuel and leaded gasoline cost roughly the same amount, better fuel efficiency makes diesel engines more economical and a better choice for up-country travel. Fuel theft is not uncommon, so a lockable gas cap is highly recommended.

Undercoating, undercarriage protection, heavy-duty suspensions, and off-road packages are practical options for Eritrea. Tubeless tires can be repaired in the capital city, but inner tubes are recommended for up-country travel. Spare parts can be hard to find. Include in your household effects a good supply of belts, filters, gaskets, hoses, headlights, windshield wipers, fuses, power-steering and brake fluids, spark plugs, a distributor, a condenser, and tires. For up-country travel, bring emergency equipment, such as a strong jack, spare tires, tire pumps, jumper cables, winch or tow ropes, first-aid kit, and racks.

When traveling outside the capital city, four-wheeled drive vehicles are advised because the roads are in disrepair. During the rainy season, many upcountry roads become impassable.

Eritrea does not have many paved roads, including those in the capital city. The remainder is constructed of lateritic soils. These roads are often rough, and in poorly drained areas become impassable quagmires during the 6-month rainy season. In addition, the coastal salt air attacks car finishes, radiators, air-conditioning systems, and the chassis. For these reasons, simple, rugged automobiles, rust proofed and undercoated, and with good ground clearance are recommended.

Heavy-duty springs and shock absorbers are mandatory for up-country travel, as is air-conditioning to provide relief from heat, humidity, and dust. Four-wheel-drive vehicles are recommended. Unleaded gas is not available in Eritrea. Catalytic converters must be removed before shipment or after arrival here.

Four-wheel drive vehicles is preferred although regular sedans are adequate for driving on Ethiopia City’s mostly paved roads. High ground clearance and four-wheel drive are necessary for trips to beaches or into the interior. Four-wheel drive is also useful for in-town driving after rains, which generally cause some flooding of roads. Light colored vehicles are recommended to deflect Ethiopia’s intense sunlight.

Unleaded gasoline is available in Ethiopia. Diesel fuel is less expensive than gasoline; both are available in the capital, but only diesel is available in the interior. Gasoline is not high octane, so the performance of engines designed for premium gasoline may suffer. Since 2004 there has been no importation of leaded gasoline into the country. Unleaded is 91 octane.

Off-road packages or heavy-duty suspensions are practical options. Traffic in Ethiopia moves on the right (American) side of the road.

Many Japanese makes have representatives in Ethiopia. Competent mechanics can be found, although quality of service varies and spare parts for even the most common makes and models are not readily available so we recommend that you order most used spare parts along with the vehicle. Labor and parts are expensive. Mechanics are most familiar with Japanese and American makes.

You should order belts, filters, gaskets, hoses, windshield wipers, fuses, power-steering and brake fluids, spark plugs, and a foot or electric tire pump along with your vehicle. Emergency equipment, such as spare tires, jacks, repair kits, and tow ropes, is recommended for out-of-town trips. Jerry cans and racks are useful for bringing gasoline and water on trips into the interior.

Eritrea Custom Duties

You cannot import a vehicle older than 10 years old. Eritrea is planning an ambitious but much needed tax and customs reform, which would, among other aims, reduce the number of tariff rates from 12 to three, and lower the maximum tariff from 200% to 25%. Customs duties on capital goods and raw materials will increase from 2% to 5% and excise taxes on luxury goods will be abolished. Custom Duty on cars is around 200% but that may come down to 25% if the new reforms are enacted.

Djibouti Port used by Djibouti and Ethiopia

Djibouti Port has 3,219 meters of quays. Since June 2000, Dubai Port International has managed Djibouti Port. Djibouti Port has a capacity of 6 - 8 million tons per year. Port also has capacity to handle 3 million tons of container traffic.

Port operates on 3 shifts of 8 hours each, with a one-hour break between shifts. For bulk vessel operations, port can readily handle 3,000 tons of bulk cargo per day per vessel. With several vessels worked, discharge rates in excess of 6,000 tons per day are possible.

During peak periods, Port Authority monitors vessel performance. Poorly performing vessel can be shifted to alternate berths or removed to anchorage. There are plans to construct a bulk-handling facility with work recently started.
The general cargo sheds are adequately equipped. Several stevedoring firms own and operate stevedoring equipment including gantry cranes, forklifts, tractors and trailers. Only companies that are wholly Djibouti owned are allowed to operate vessel stevedoring services.

Shipping lines offers 15 to 30 day's free time, after which demurrage applies. Port offers 30 days free time after which container is moved to Inland Free Port area where storage charges apply. Due to space limitations and demands on container handling equipment, only limited number containers can be stripped at port for despatch to Ethiopia. Where many containers are expected (say in excess of 50 boxes), arrangements can be made with port to block stack these containers. Stripping inside Ethiopia requires ETH Customs confirmation that box has been re-exported out of Ethiopia. Good coordination with transporters key to ensuring boxes are returned to Djibouti. Containers typically have payloads in excess of 20 Mtn. Transport of a large number of containers to Ethiopia requires enough draw bar type trucks that can move 2 TEU of 20 MT each.

Increase in tariff at Djibouti Port

There will be a new set of tariff rates to be applied to all services at the Port of Djibouti, beginning mid-August 2008, DP World Djibouti announced. Communicated to the Ethiopian authorities through the Ministry of Foreign Affairs, who were caught off guard, and so completely taken aback by this development, various sources revealed.

The new rates would introduce increases of up to 25pc in marine charges; an average of 2,000 ships dock at the Port of Djibouti every year. Other increases include cargo port dues, storage charges (25pc), and a 15pc rise in the cost of container stevedoring by the latter for the first time since 1984, disclosed a letter signed by Aboubaker Omar Hadi, commercial director of DP World Djibouti, on June 25, 2008.

This will be the first comprehensive adjustment of tariff on port operations since Ethiopia and Djibouti signed a port utilization agreement in May 2004. The port’s management was given to DP World in 2000, under a 20-year contract. The current increase in various forms of port dues is attributed to a global escalation of prices on fuel, which increased by 350pc, and a headline inflation of 19.2pc in Djibouti, the letter stated.

The management decided to reduce the free storage period for local cargo from 10 to three days and on that of transit cargo (mostly to Ethiopia) from two weeks to eight days. The management has also introduced a new fee of one dollar whenever a gate pass is issued.

The Port is not only used as a gateway for Ethiopian transit cargo, but also as a point of destination, according to a study conducted by the Ministry in November 2004. The volume of its import and export cargoes has been on the rise: from 3.9 million tonnes in 2006/07 to 4.6 million tonnes in 2007/08. Projected to grow by 20pc, the volume is anticipated to exceed five million tonnes this year.

Last time, the port attempted to increase its tariff in January 2001 by 30pc, Ethiopian authorities protested vehemently, for it would have had subjected the country to an additional cost of nearly 170 million dollars.

How much the latest increase will cost Ethiopia is a question that trade and transport experts were pondering last week. A technical committee under the auspices of the Ministry of Trade and Industry (MoTI) was formed last week. It comprises members from four federal agencies: the Ministry, Customs Authority, Maritime Transit Enterprise (MTS) and the Ethiopian Shipping Lines (ESL).

Ethiopia uses 90 percent of Djibouti port’s services and relies nearly 100% on the port for imports. It is to be recalled that the Port of Djibouti had introduced an increment in 2001, after negotiations with the Ethiopian government.

Ethiopia’s import traffic via Djibouti port has been regularly increasing. Over 3.9 million metric tons of goods were imported in the year 1998 E.C. The volume increased to over 4.6 million metric tons in 1999 E.C.

According to a report from ENA, Ethiopia’s import via the Port of Djibouti increased by 20% in March this year, quoting the Ethiopian Ambassador to Djibouti, Ato Shemsedin Ahmed Roble. Relief grain import has decreased while construction materials and goods related to investment and infrastructure development have significantly increased lately.

However, in view of the current drought this situation may reverse. The new increment when applied will concern all port users, including vessels, operators, charters, mortgagees or agents, the cargo owners or agents (shippers), and other users of the port.

Djibouti Port Commercial Director, Aboubacar O. Hadi had explained that port charges on import represent only 1.6% of the total value of goods and on export the charges represent only 0.78%. In view of the continuous upgrading undertaken by the Port, and the hike in petrol price, over USD 145/barrel and rising, increments in the port charges were inevitable, note observers.

In 2007, Ethiopian imports were at 5 billion dollars and exports were 1.2 billion dollars worth. The port charge increment would incur millions in additional costs for Ethiopia.

The port of Djibouti had total traffic of 7.4 million metric tons in 2007, a 36% increase from the 5.4 million metric tons in 2006. The transshipment traffic has also been growing rapidly. Ethiopia and Djibouti combined represent 120,000 container imports, while transshipment alone is 50,000 containers.

The Port is also expecting to increase its transshipment business starting from next year with the Port of Doraleh. After completion in December 2008, the Port of Doraleh expects to service in the first two years 1.5 million containers per year. Later, it is expected to handle 2 million containers.

Port storage

Port authority owns 19 warehouses within the port area, of which three are in the extension of the free trade zone, totalling some 47,380 sq. meters with a storage capacity of 672,440 metric tons per year (for 45 days turn around). Approximately thirteen hectares of open storage is provided in the port or 130,300 square meters with a capacity of 1.850 million metric tons per annum. There are in addition 13.5 hectares at the container terminal which can accommodate 5,130 TEUs at a time or more than 120,000 TEUs per annum (with 15 days turn around) which is equivalent to 1 million tons of cargo per year. Port storage - if available - is free for first 30 days. Quayside storage is possible. Most berths, transit shed, warehouses and open storage areas are served by rail. Each of the general cargo berths and the coastal cargo berth has a transit shed ranging between 1,080 to 4,900 square meters.

Regional Agreements

The Common Market for East and Southern Africa

The Common Market for East and Southern Africa (COMESA) has been operating, in one form or another, since 1981.  COMESA aims to promote economic integration via the removal of barriers to trade and investment among COMESA member states. Moreover, COMESA aims to advocate for infrastructure development, and development in science and technology. Economic integration is envisaged to progress from the Free Trade Area (FTA) to an economic monetary union. The FTA became operational on 1st November 2000 with nine participating countries initially. The nine member countries that are implementing zero tariffs are Egypt, Sudan, Djibouti, Malawi, Madagascar, Mauritius, Zambia and Zimbabwe.  However in January 2004, Burundi and Rwanda joined the FTA, bringing the total number of participating countries to eleven.  

The COMESA FTA is an agreement among members not to apply customs duties or charges on goods traded amongst themselves.  The eligible goods for duty-free treatment must meet the agreed upon Rules of Origin.  Members also agree to eliminate all non-tariff barriers to trade between them.

A COMSEA Certificate of Origin is required for each consignment of goods and is obtained from the Revenue Authority in respective member countries. 

The Southern Africa Development Community

The Southern Africa Development Community (SADC) aims to promote regional integration and sustainable development in the regional community.

Members of the Southern African Development Community (SADC), comprising 14 countries, signed a Trade Protocol, which calls for the implementation of a Free Trade Area.  Each country has negotiated two reduced tariff schedules.  One schedule is applicable only for South Africa, and another schedule for all other SADC members. Zambia's implementation of her offer, effective 30th April 2001, is provided to those countries that provide Zambia with the SADC reduced tariff schedule. 

The reduction of tariffs to South Africa provide for delayed liberalization, while the schedule to other members provide for broader and faster access to the South Africa market.  The tariff schedule applicable to SADC members, with the exception of South Africa, has three categories.  Category A products are those products which go to zero-duty immediately upon implementation.  The tariff for Category B products gradually goes down to zero-duty over a period of eight years, and the tariff of Category C products reaches zero-duty twelve years after implementation.  Category C products are known as sensitive products, and include for Zambia meat and dairy products, tea, some flours, raw sugar, cement, textiles and clothing, and motor vehicles.

Plans are currently underway to establish a Free Trade Agreement by 2008, and a SADC Customs Union by 2010.

A SADC Certificate of Origin is required for each consignment of goods and is obtained from the Revenue Authority. 

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文章From:http://www.szdtruck.com/te_news_industry/2009-11-10/2184.chtml