The bonded export manufacturing warehouse scheme
Bonded export manufacturing warehouse means a warehouse under joint control of Ethiopian Customs Commission and the factory concerned, where raw materials imported free of duty for use in the production of goods destined exclusively for export as well as goods produced using such raw materials are stored.
Beneficiaries of the bonded export manufacturing warehouse scheme shall be producers who, are engaged exclusively in production of export commodity, have obtained certificate of eligibility from the Ministry of Industry, and have manufacturing warehouses which meet the standards set by the Ethiopian Customs Commission.
Currently, the Ethiopia government implements the following export trade duty Incentive schemes;
These are;
a) The duty draw-back scheme;
b) The voucher scheme;
c) The bonded export factory scheme;
d) The bonded manufacturing warehouse scheme;
e) The bonded input supplies warehouse scheme; and
f) The industrial zone scheme.
In this article we will see the fourth scheme, bonded manufacturing warehouse scheme.
Procedure for the Application of Bonded Export Manufacturing Warehouse Scheme.
These are,
First raw materials imported by a person who is beneficiary of the bonded export manufacturing warehouse scheme shall be transported to the manufacturing warehouse under the control of customs without being subject to payment of duty.
Then, The Ethiopian Customs Commission shall inspect raw materials brought into and taken out of the bonded export manufacturing warehouse as well as goods produced by the factory and transferred to and taken out of the manufacturing warehouse.
Raw materials transferred into a bonded export manufacturing warehouse shall be put to use in the production of export commodity and the commodity so produced shall be exported within one year of transfer of such raw materials into the manufacturing warehouse; provided, however, that Ethiopian Customs Commission may extend such period by one additional year taking into consideration the nature of the raw materials.
And finally a beneficiary of the bonded export manufacturing warehouse scheme who has not secured permission for extension, or to sell raw materials imported under this scheme upon payment of duty chargeable on such raw materials in accordance with Article 25 of this Proclamation shall, in addition to the duty payable on the unused amount of the raw materials, be required to pay 50% of the duty.
