The Current Practice of customs valuation of Imported goods at the Ethiopian Customs (Erca): a case oriented Study
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Date
2016-04
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Addis Ababa Univerisity
Abstract
Customs valuation is all about the determination of the customs value (taxable basis) of the
imports. Generally six methods (the transaction value, the identical goods value, the similar
.' goods value, the deductive value, the computed value and the fall back methods) of determining
the customs value by the Customs Valuation procedure have been enshrined internationally and
in Ethiopia as well.
The main objective of this researc h is to assess the consistency, fairness and transparency of the
valuation practice and to see whether the valuation system is adequate enough to regulate the
subject matter of customs valuation.
From our di sc ussions of the laws, literatures, cases and interviews, the findings of this research
portrays that the valuation practice is very much diverted from the law and the practice itself is
fa shioned by the inconsistent, non-transparent and unfair valuation computations that does not
reflect the real commercial practices. The valuation system (especially the customs Data-Base)
and the valuation rules (there is some conflict in the rules themselves) are not adequate enough to
regulate the customs valuation. The Valuation rules are rolled either to the hands of the Customs
(to raise undue customs revenue) or to the hands of the importer (to get undervaluation) unfairly.
From this finding the thesis recommends to the reformulation and development of the legal,
institutional (especially the Customs Data-Base) frameworks and infrastructures. The
~' recommendation also goes to the installation of transparent valuation system coupled by
selective risk analysis management system to tackle poss ihle underval uation
Key Words: - Customs. Customs va luation, Customs value, Customs Data-Base, Imported
goods, Agreement on Customs Valuation, Customs Proclamation.
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