Ethiopia has introduced a revised tariff structure that lowers import duties on selected raw materials and equipment while increasing rates on finished goods, Addis Fortune reported. The measure forms part of the government’s plan to boost domestic manufacturing and cut reliance on imports.

Approved by former State Minister of Finance Eyob Tekalegn (PhD) and signed by Azezew Chane, commissioner representative of the Customs Commission, the directive follows recommendations from the Ministry of Industry to align trade policy with industrial priorities.

Import duties on peanuts have been reduced from 35 percent to 15 percent, while tariffs on paper-based packaging such as folding cartons and corrugated boxes have risen from 15 percent to 25 percent. Plastic packaging products now face duties between 15 and 25 percent, though self-adhesive rolls remain at five percent.

Taxes on industrial inputs such as air compressors and wheeled chassis units have been lifted, while completely knocked down (CKD) refrigerators are exempt. Semi-knocked down (SKD) units face a higher tariff of 25 percent, up from 15 percent, with fully assembled refrigerators unchanged at 35 percent.

According to Tsehay Abelie from the Ministry of Industry, the revised structure encourages local assembly, job creation and technical skills. Electric vehicle (EV) batteries, chargers and scooters have also been granted duty-free status to support the green economy initiative.

Experts warn that enforcement will be critical. Customs specialist Tewodros Kassahun said that while CKD imports are incentivised, weak oversight often allows SKD goods to be declared as CKD, reducing policy effectiveness.