The government offers various incentives such as exemption from the payment of an6y export tax and other taxes levied on exports through the provision of Duty Drawback Scheme, Bonded Manufacturing Ware house Scheme systems to facilitate the export of goods. 

Exports tax- No tax in whatever form, on products destined for export markets. 

Access to Inputs

The duty drawback scheme, voucher book and bonded warehouse facilities are available to exporters. The duty drawback scheme provides investor an exemption from the payment of customs duties and other taxes levied on imported and locally purchased raw materials used in the production of export goods. Duties and other taxes paid in importing are drawn back at the time of the export the finished goods.  

Export Financing

Export credit Guarantee scheme provides non coffee exporters access to pre-shipment and post-shipment finance equivalent to the total value of the previous year export proceeds with out any collateral requirement for existing exporters.

Pre shipment Export Credit guarantee is a guarantee provided by the National bank of Ethiopia up to maximum of 180 days to the exporter to cover pre-shipment export lo9an extended by the financing bank starting from the issue date of the guarantee. 

Post-shipment export Credit Guarantee is a guarantee provided by the bank up to a maximum of 180 days to the exporter to cover post-shipment export loan extended by the financing bank starting form the issue date of the guarantee. 

External loan and Suppliers or Foreign partners Credit

This allows exporters access to foreign currency and as short, medium and log-term financing means. Using these schemes exporters can acquire capital goods, raw materials, semi- finished goods, spare parts and other inputs based on foreign sources.  

Franco Valuta Scheme

It enables exporters to acquire raw materials and intermediate inputs from their foreign partners who may be working on international sub-contracting basis, technical and marketing arrangements, foreign direct investment or joint venture. 

Foreign exchange Retention

In an effort to encourage exports, the government has allowed exporters to retain the foreign exchange they themselves earn in two types of foreign exchange accounts. In account  “A” exporters are allowed to retain 10% of the proceed from their exporting for an indefinite period of time and the remaining 90% in an account “B” for about 28 days to transact business related to current payment for the import of goods and related services, export promotion payment of advertising and marketing expenses, training fee and education expenses, etc.