Background
The aspiration for African regional economic integration, as outlined in the 1991 Abuja Treaty establishing the
African Economic Community, has progressed gradually. This journey began with the formation of several
Regional Economic Communities (RECs) and finally culminated in the establishment of the African Continental
Free Trade Area (AfCFTA), which was adopted in March 2018 and entered into force in April 2019. Ethiopia
ratified the AfCFTA through Proclamation No. 1124/2019.
The AfCFTA aims to foster economic integration across a broad spectrum of sectors, including trade in goods
and services, investment, intellectual property rights, and competition policy. However, implementation has
been phased, with trade in goods and services prioritized in the first phase.
The Protocol on Trade in Goods gained swift acceptance and officially entered into force in January 2021.
Member States committed to developing Schedules of Tariff Concessions, outlining annual tariff reductions to
gradually achieve duty-free access across the continent. Despite this collective commitment, implementation
has varied among Member States. As of October 2022, eight countries had commenced trading under the AfCFTA framework.
Following negotiations with Member States, Ethiopia secured approval for its tariff schedules on goods in February 2024. These schedules were formally published in the Federal Negarit Gazette on 14 July 2025, under the
title “Implementation of the Concession of Duty Tariff Rates on Goods for the African Continental Free Trade
Area Agreement Council of Ministers Regulation No. 574/2025.”
Key Features of the Regulation
- Tariffs/Charges covered under the Tariff Concession
The Concession on Tariff Rates under Ethiopia’s implementation of the AfCFTA encompasses various charges
applied to imported goods, each governed by distinct legal instruments. These are:
✓ Custom Duty: Levied and collected on imported goods in accordance with Customs Proclamation No.
859/2014 and its subsidiary legislation.
✓ Surcharge: Imposed on imported goods pursuant to Council of Ministers Regulation No. 133/2007.
✓ Social Development Levy: Imposed on imported goods under Council of Ministers Regulation No.
519/2022.
Moreover, the regulation stipulates that no other duties in any form shall be levied on imported goods after the
entry into force of the protocol on goods, effective as of January 2021. Retrospective claims for refunds, however, remain barred. - Concession on Custom duty: Standard Tariff Rules vs Free Trade Area Tariff Schedule
With the entry into force of the Concession on Duty Tariff Rates, Ethiopia now operates under a dual tariff
framework—the Standard Tariff Rules and the Free Trade Area Tariff Schedule—depending on the origin of
imported goods.
✓ The Free Trade Area Tariff Schedule applies to goods originating from Member States actively implementing the AfCFTA, in accordance with the principles of reciprocity and mutual concession that underpin free trade area arrangements. The list of eligible Member States will be officially notified periodically by the Ministry of Trade and Regional Integration.
✓ The Standard Tariff Rules remain applicable to goods imported from countries outside the AfCFTA
framework, or from Member States that have not yet commenced implementation.
In this context, determining the origin of imported goods becomes essential. The Ethiopian Customs Commission is responsible for verifying the country of origin, following the rules annexed to the AfCFTA Protocol on Trade in Goods and in accordance with Customs Proclamation No. 859/2014.
