Ethiopia has announced the immediate implementation of a new, stringent goods valuation system for imports, aligning the country’s customs practices fully with the World Trade Organization (WTO) agreements. Officially issued through the Ethiopian Customs Valuation Directive No. 1080/2025, this significant reform represents a complete overhaul of the previous valuation methodology, which had long been criticized for its opacity, corruption, and inconsistency. The move is designed to enhance transparency, accountability, and harmonization in customs administration across the country.
Under the new system, customs valuation will strictly adhere to WTO principles, primarily focusing on using the actual transaction value—the price genuinely paid or payable for the goods—as the basis for taxation at customs. The directive mandates the rigorous application of six WTO-approved pricing methods in a defined sequential order to ensure consistency and fairness in estimating the customs value of imported goods. Import duties and taxes will now be calculated based on the CIF (Cost, Insurance, and Freight) value, covering the total expense of goods up to their first entry point into Ethiopian Customs Territory.The reform is expected to yield multiple economic benefits for Ethiopia. By promoting better regulatory compliance and minimizing valuation ambiguity, the new directive is projected to curb money laundering activities and protect the competitiveness of Ethiopian-made products against unfairly priced imports. Crucially, the move is anticipated to significantly boost government revenues through improved tax collection efficiency, which is vital for the nation’s ongoing macroeconomic reforms.
