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fh.T,.kl .c...e..t-I\ce -\'fPht-lt.lce tTflt\.h

~Yo&.A '1;Jt:" ;JtLlIl

FEDERAL NEGARIT GAZETA
OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA

9thYear No. 34
tftn~~ ~ODT cfl1'C c!)§
Oh.Tf"kJ' 4..1..t-I\ce -'l'l"ht-(\J'ce ~T-oc\.h ADDIS ABABA-7th February, 2003
"-'ll\ "OI1-Jf'C c!)+1 !in~ f ih"-o "'m"'f"~' 9'11c o.T ml1-t~T f(1)1IJ

O'/l&6fiJ. CONTENTS

~.,- Council of Ministers Regulations No. 84/2003

fOl/.kWN~~,-hC o.T ~1-o cfl1'Cit§/Iif:i~
Council of Ministers Regulations on Investement
h.1nl\TOD1T "70l:1';f.'i "".,C ~l\1' l1"v.n.,.~
incentives and Investement Areas Reserved for
l\""'h"~ f JP"t- ODl\\"1~fmllJ f"7..tl\TC'~ ,-hc o.T Domestic Investors Page 2092
~1-o .,~ 17t:i1

fOl/.kl\TC'~ ,-hc o.T ~1-o cJI1'Cit§/Iitn~ COUNCIL OF MINISTERS REGULATIONS No. 8412003

h"h.1nhTOD1T "70l:1'!F9'~''i "".,C ~l\1' I1"V-o.,.:r COUNC~ OF MINISTERS REGULATIONS ON

INVESTMENT INCENTIVES AND INVESTMENT
hA"'hA~ f", t- ODl\\"1~
fmllJ f"7..kl\TC':r ,-hc 0...,.~1.0
AREAS RESERVED FOR DOMESTIC INVESTORS
fOl/.kh""C'~ ,-hc o.T fh.Tf"kJ' 4..1..t-I\ce-'l'l"ht-(\J'ce
~T"ll\.h hhL~"7.. ""'I\T1 ",AIIJ1'i .,...,I1C AODm(}1 These Regulations are issued by the Council of Ministers
omllJ~ "'P:E- cJI1'C§/Iifft (h11..,.?f?f,,) "'+~ ~ h'i pursuant to Article 5 ofthe Definition of Powers and Duties of
Oh.1nhTOD1T "'P:E- cfl1'CIfit/Iitf:i§ "'+~ i 'A'i it the Executive Organs of the Federal Democratic Republic of
ODlPlT ~tJ11.1.o "~1':tA:: Ethiopia Proclamation No. 4/1995 (as amended) and Articles
htt:A"'f: 6 and 9 of the Re-enactiment of Investment Proclamation
m:to1\1\ No. 280/2002.
PART ONE
i' ",e-C Cc)l\ General
~tJ 1.1-0 "fh.1nhTOD1T "70l:1'!F'i "".,C ~l\'I' 1. Short Title
I1"V-o"'~ h""'h"~ f", t- ODl\\"1~fmllJ f"7..kl\TC':r These Regulations may be cited as the "Investment
,-hc o.T 1.1.0 cJI1'Cit§/Iitf:i~" "'-0"" c\.m+l\ Incentives and Investment Areas Reserved for Domestic
~~'I\AII Investors Council of Ministers Regulations
I' ""C=\"I No. 84/2003."
f~~ ".,11-0 "'1\ TC"''- f"7..J'(}m~ "'AIf~ Ol\.,'+C
2. Definitions
OtLtJ 1.1-0 ~l\1" Unless the context reqUires otherwise, in these
Ii' "11"",AIIJ1" "7AT fh.Tf"kJ' h.1nl\TOD1T 11" Regulations:
",A1IJ1 ~~! . 1) "Authority" means the Ethiopian Investment
ou1..,,,,"" h. ')nl\TOD1T Authority;
I' "PCf:" "7"T f4..1..t-~
PCf: ~~! 2) "Board" means the Federal Investment Board;
114. ., ;J 2.80 ~;J~"" ;JUIl} 7"""~' ,t!'iLl!
Unit Price Negarit G.P.O.Box 80,001
'I~' ~jf.:H: tJu/'.A ~,.:I/.'1- ,.:IlL'" +'1'C oIi~ 1'C oIi+1 liifj~ 'HI". Federal Negarit Gazeta- No. 34 7!t1February, 2003-Page 2093

t. "ft}1::t'A iJ:l''' D?I\+ 9"C+ 1\D?9"t.+ OJf,9" 3)

"Capital Goods" means machinery, equipment and
h1A..,I\":" I\ooilm+ fD"J.!il"f1\- fD?9"t.?T'i h1A accessories, needed to produce goods or render
.., 1\"+ 00 il""l 00'" (,! ?'"f: iJ:l' 9'"f'i h t"ll'1(}&?,"f services;
'i:flD-! 4) "Customs Duty" includes taxes levied on imported
~. "f1'9"?-h <#>1.'1'''fD"J.I\OJ' Ut..., 010. iJ:l'?'"f "f, goods;
fD?.flJt\, ;t'h(l1'')9'' ""'l.L1,9"t-A! 5) "Income Tax" means tax levied on profits from
(;. "f10, ""OC" D?I\+ f4..f-ot-1\- oo')"'r'+ OJf,9" business and categorized as the revenue of the
fhAA ooil'''~f:~1' OJf,9" fu-l\1: f;1t- 10. flf~ Federal Government, Regional Governments or as
n:"c~ "f, fD"J.fl}A ;t'hil ~lD-! their joint revenue;
~. "htp~" D?I\')' f1\. ')oil+ooJ+ tttp~ 6) "Proclamation" means Investment Proclamation
.. No.280/2002;
<I:'I'CeHrI'iiiv1o
, ~lD-!
1:,
r<> I ..-~.r<o ..~ ..~ ,....

ntttp~: tt')<#>1t~ l\.t'OOl\h1:T :l'''+ f+(}m +C~

o?'?'1' I\RU9" 1,')11 .t't. 'D"J.f,If'i 1\-::
!~. I\h1C lD-il'l' I)l\u.n.,."f ill\-thl\'" fr't- 00"'1'1"f
h'LU 1.').n .'JC -t'!f,Jf 0D"J.11lD-lP')lnt.1f
f r' (,. 00 il1'11' ntt 1 C lD-il'l' I) I\U11.,.:y. 11?T fD"J.t}~.c;.
f,1f'i 1\'::
h~A u-I\+
h10. ..,.nc ~, ill\oolf~
~. h10. ..,.nc ~, D?0t.:t'?T fD"J.!il1'f. f1\.')oil:"oo'):',
r't-?'1'
~. OD?~~hT&')'" OJf,9" ott"'~-1\.').c;.il+& OJf,9"
{lC.c;.nD"J.!OJII}lD- fs/uC+ ttf,~"'1' lICHC OOOO&!
nD?,OJlP~f"'11~'i S/uC.,."fr't- f-t(}D?t- D?')~m-9"
I)1\u.n.). t}oot.'''lD- 9"C+ o.!,)il:
u) :l% /'19"'1 noo.,.; flf~lD-') f9"C1:,) lD-m.+
OJ1.OJ-6f.bfD"J.Ah hlf~; OJf,9"
1\) C'(; % (I'll) tt9"il'''' 000"') flf~lD-') f9"C1:,)
ro-m.+ OJ.l'. lD-6f.b t\D"J.Ah I)l\u.n+ n9"c+
..,.ntt +~+ fD"J.!<#>c.n hlf~'
1\(; f}oo..,. h10. ..,.nc ~, fOOIf,) 0011+ !1~A::
~. ntLU tt')<#>1t')cril tt')<#>1t(~) f-tool\h-tlD- o.ifC9"
(lC.c;.OAf.. u-~:t' hilh 1. f}oo+ f"7..l'.Cil h10. ..,11C
~, fOOIf,) 0011:,.0 t\.lP'I' f,"f"A: lfif9" h1. f}oo+
O"f, f10. ..,11C ~, 0011'''' fD"J.(}mm- nD"J.~il+~"f
S/uhc 0.+ OJ-lt~ 11?T f,1f'iA::
f.' n'Lu tt')<#>1t')cril tt')<#>1t(Ii) O-t'm<l>(}.:"r't-9'"f
f.f'lPD?(,. I)I\U11:" t}oot.-tOJ- 9"C+ hy% (Y9"lt
noo.,.) o;t'"f fD"J.If~lD-') OJ.l'.lD-6f.bfD"J.Ah OJ,f,9"
9"C1:,) I\U1C lD-il'l' 1n! 11?T fD"J.!<#>C11hlf~ I\~
f}oo..,. h10. ..,11C ~, fOOIf,) 0011+ !1~A::
~. OtLU tt ')<#>1t') cril tt ')<#>1t(r) f'''OOl\h-tlD-0. ifC9"
(lC.c;. nAf.. u-~;t- hilh t. f}oo+ fD"J..l'.Cilh11t ..,11C
~, fOOIf,) 0011+ t\.(}'I' f,1'''A::
(;. ntLu tt')<#>1t')cril tt')<#>1t(r) f.,.ool\h-t,OJ- o.ifC9"
9"C1:,) I\U1C lD-il'l' 10! 11?T fD"J.!<#>C11I)I\U11:"
f OO'iN: -t'm:l'D"J. h ') ~f,If,) (lc.c;. 0 D"J.!OJII}lD-
OOOO(,! t\.hl\hA f,"f"A::
'k ntLu tt,)<I>1t')cril tt,)<I>1t (Ii) h'i (r) f'''OOl\h-tOJ-
0. ifC9" ~~'i 1\.(11')hilh ht.il:" .l'.t.~ nD?A~:" OJ.l'.
lD-6f.b fD"J.Ah I)I\U1I+ O')cril tt')<#>y.:t:f-tool\h
.f:.),') D?nt.;t'?T9'1' tt!1:t;9"::
%. a
'11\Y.n-t: 1\.') il:"OO')1:') fD"J.!t}'l.f:n:,. r'~t- ntt ')
,(,.1£ 1,t.~ nh.1'1ifD"J.AD?+ OJ1.:\" n<#>?-ttt}l)o.?'"f
7) The definitions provided for under Article 2 of the
Proclamation shall apply to these Regulations.
3. Investment Areas Reserved for Domestic Investors
Areas of investment listed in the scheduleattached to
f1-"t."?-+ these Regulations are exclusively reserved for domestic
investors.
PART TWO
ExemptioI] from Income Tax
4. Investment Acti vities Eligible for Income Tax Exemption
1) Where an investor 'engaged in manufacturing or
agro-industrial activities or the production of
agricultural products to be determined by directives
to be issued by the Board;
(a) exports at least 50% (fifty per cent) of his
products, or
(b) supplies at least 75% (seventy five per cent)of
his product to an exporter as a production input;
he shall be eligible for income taxexemption for 5
years.
2) Notwithstanding the provisions of Sub Articles (1)
of this Article the Board may, under special circums-
tances, grant income tax exemption for a period not
longer than 7 years. However, the granting of income
tax exemption for a period longer than 7 years
requires the decision of the Council of Ministers.
3) An investor engaged in activities mentionedunder
sub Article (1) of this Article who exports less than
50% (fifty per cent) of his products or supplies his
products only to the domestic market shall be
eligible for income tax exemption for 2 years.
4) Not withstanding the provision of subarticle (3)of
this Article, the Board may, under special circums-
tances, grant income tax exemption for a period not
longer than 5 years.
5) Notwithanding the provision of Sub Article (3) of
this Article, directives issued by the Board may
prohibit exemption from income tax with respect,to
an investor who supplies his products only to the
domestic market.
6) Notwithstanding the provision of Sub Articles (1)
and (3) of this Article, an investor who exports and
hides and skins after processing up to crust level may
not be entitled to incentives provided therewith.
7) Notwithstanding the foregoing provisions of this
Article, where the investment is in relatively under
developed Regions such as Gambella, Benshangul
.

D?1\''''9'' O;19"n,l\: no.~?f')1-A'i 1-00"": n1,11-11 and Gumuz, South Omo, in Afar Zones to be
1.LfP:ntt~c hAA {lC.c;.nD?,OJil'i:flD- Jfif1': n(lD?1\. determined by the Board. Somali and other Regions
hAA'i OJ.l'.t.:" (lC.c;. h,).l'.u-~;t'ID' hf-tool\h'f' to be determined by the Board, the invsetor shall be
nOOJ,OJilc;:t=ID' 1\.1\"1' ttt}l)o.sP1' hlf~ ntLU h')<#>1t eligible for income tax exemption for an additionall
h."t,<#>1.ID-f10. ..,.nc ~, "00') n-t'aJ.D?(, 1\1 f}oo+ year period.
h10. ..,.nc ~, fOOIf,) oo.n:,. !1~A:: 8) The income tax exemption provided under the
~;. n'Lu 1.').n tt')<#>1tQ n.,.ool\h1:+ f1o. ..,.nc ~, provisions of Article 4 of these Regulations shall be
D?nt.;J';J:?'1' I)I\U1N: "'m:l'OOJ, fD?,If~lD- effective when the investor provides the infQrmation
oot.~'ID'J tt"'l).n "I\ID- ..,.nc (}.nlto. oor'('! 0.'''' for the relevant revenue collecting institution and its
tt:"C{l 1\-t't.;11ml\:" I\h!,)~,).c;. f10. ..,.nc "00') validity is ascertained for each income taxperiod.
(f}ov.1') f,1f~' A::
 Fcderal Negarit Gazeta - No 34 7th February, 2003-Page 2094
'~' !IIi/I!! t...fot.t\ ~:Jt.,. :}ILnl '/!1'1: ~Hi 1'1: .i- "") nWI?; 'HI".

f:'
.,/le Y.'C'f.:-}'} n°,/{)., ;,. lO~,tj° nOi/i'ii'iA {)taO'/.(1<rf-Hl. 5. Income Tax Exemption for E>.pansion or Upgrading of
.,.., O'/nl.:J'Y: an Existing Enterprise
"Nle
nA'}4>~' ~ -}D.t: A-}4>~' ({i) n-hn"'''''-} rt.9J':;. f-,'(1 An investor engaged in activities mentioned under Sub
trytS h°'/.J'lIPe-"(D' tj°e-} O.J'-}l'I j % /'~JUIt OllP-f'! Article (1) of Article 4 who exports at least 50% (fifty per
cent) of his products and increases, in value, his
fO'''(D'-} LDY.(D.6f!'f°'l.Ah Ill'\'-n.} tJOC,':'} t?;% j'l_r
~\tjU{);', nllP.f.: fll\.e flMI.;" ',ltY,'1 I'\~ qllP;" \110. "HIC production by 25% shall be eligble for income tax
exemption for 2 years.
.", fliP']"} tIP'fl-} .t'1~A::
.,.., \,lIPW~: tlm''} fO'/.:l':tjuCfl-} '1./1. 6. Commence:nent of Period of Exemption
:4' 11'H1."Nl£:
from Income Tax
h'H!. "NIC .", ftIPff~:
"lIP'} lIP<¥>tnC fO'/.'f.tJOl.or
The period of exemption from income tax shall begin
'11'\'-n-,: °'ltJOl.-)' (D.et;'UA1A"'I'\"-} tIP{)tn-} h'f.tlPl.O-)'
1.1L A'}{).f. ~,ffCjA;:
from the date of commencement of production or the date
of provision of services, a::-the case may be.
1. h."u.'} {)I'\O'/{)-"I\I'\tt:
7. Carry Forward of Losses
h10. "HlC .,~ fllPff'} lIU-O-} n-f-('tnl}-1' t1ov'} (D'{)<r
h,"U. ! ;JtnllPlO' °n~:(D'tju IlI'\O-n-} f10. ..,-{1e .,.., An investor who has incurred loss within the period of
lIP-lH: "OV'} h'}P,l'\c', I'\",u'l-li \,.,.., lIP-n.,: "tIP'} fY,l.(1 income tax exemption shall be allowd to carry forward
fl.}'} h."'t. o,/{)-,'I\I'\{t: f,'-1'I\A:: his loss for half of the income tax.exemption period, after
the expiry of such period.
hC,:A ~()-),
h-,.tju-rh 4>l.<r .,~ {)I'\OVff'} PART THREE
Exemption from the Payment
~. tn~I\I\ of Customs Duty
{i. °n~:(D.tju IlI'\,Nl-} 1'\O'J._r!lN:tlPorA-'t{) Y.'C';:'-
mf,tju .,'lC Y.'C:~-':-} 1'\000{)<J.cJ'}(Df,tJO 1'\000'li'liA 8. General

ftry.Nit,A-'- I'\TC'J~J'-I: A",'Hl.,,), !I\:':(D''} f},'C

1) An investor shall be allowed to import duty-free
;J-ACj f..,'}fI:J' iJ:J'9"-)" h.,.tJO-rtJ c~l.<r .,~ l'\.yMfI capital goods and construction materials necessary
f,-:;'I\A:: for the est4blishment of a new enterprise or for the
.,.., ov.O-} fl'\(D' expansion or upgrading of an existing enterprise.
,-. lH'(,),OY~9u f-'-9u-rtJ 4>l. 'I'
flI'\U-{1:" 1'\.,'1C f:C';-f: fO'/..r{)t.A1lD-'} ft}'C;J'A
2) In addition, an investor granted with a customs duty
exemption privilege shall be allowed to import duty-
h:J' h.,.r..,tJ +l.<r ." h'}-'t!{)1f1 f,t.4>Y:I'\;1'A::
e. lHlU A14>~' '}lJ-{) A'}4>?\ ({i) 'Vi (~) f.f-OVl'\h"-(D' free capital goods necessary for his enterprise.
O.lfCtJO {lC~ h(D.6f!' fO'/.10';" ft}'C;J'ACj f..,'}fI;J- 3) Notwithstanding the provisions of Sub Articles, (1)
h:J'9'';f. flA1C or{)<r fl.t'ov{Jlll}~ q>;J : <rt.:"lj' and (2) of this Article the Board may, by its
OVlll'} fO'J.ovl.1: ff.,or l1.f'/=1:t:or h.,.9u-rtJ +l.<r directive~, bar the duty-free importation of capital
.,., ff.,m. h,}~f,1fl' flf'llLm. OO'/.f(DfI)m. OVOV~! goods and construction materials where it finds that
I'\.(D{)'} f,"fl\A:: they are locally produced with competitive price,
fltlU J.'.'}.OOVLPl.-)'ft}'C:J'A h.4>9'';f-h.,.tJO-rtJ +l.<r
quality and quantity.
9.'
.,.., h'}-'t!{)1f1 fO'/.t,4>Y:I'\'} flI'\U-{1:" q>;JTor 4) An investor eligible for duty-free importation of
htl'C;J'A h:J'9':': tn~I\I\ fp_'}H;% (Ailt. Aril:" capital goods pursuant to these Regulations shall be
flOV'f') fO'/f,flA'I' UDI'\q>tD65J.9}';f.-}h1'9u-rtJ 4>l.<r given the same privilege for spare parts whose value
.,.., h'}-'tlMfI f,t.4>Y:I'\:J'A::
is not greater than 15% (fifteen percent) of the total
value of the capital goods to be imported.
u. 'l'-li\}{~t}~9'-:;',} h.,.tJO-rtJ 4>l.<r .,.., I'\O'/MI}.} l'Il'\O'J.t.4>
f.'lH- U.).:J.
9. Conditions for Importing Vehicles Duty-Free
I'\A'}_f.: ~ '};}{)-).ov'}.). h'}Y. 'fC''f.hrf: qf,":"Cj flc'h~ The Board shall determine, by its directives, conditions
-"7ihCt}~9'-";''} h1-9u,,-tJ 4>l.<r ." 1'\0'/{)1f1"" ill'\o.tt.+ for importing vehicles duty-free depending on the type
J;':l}-1' ,Jo).:,. {lC)',. flO'/.!(DfI)(D' (lPtIP~.r f,(DilCjA:: fflftJO and I)ature of the project. However, any investor may
°n~(D.r flI'\U-lt-1.: import duty-free:
U) 1'\LJ.'t.-,-iri'. fAY._') 'UL A-/A"lI'\"-} fO'/,(D'I'\' A9un-I\
(a) ambulances. for employees that are needed for
'}(I:-;'-}: emergency cases;
(b) buses for tour operation services.
1'\) I'\Ail1-rrn;,. P't. ~\'/A"ll'\"-)' fO'/.(D'1'\- A(D'of.O'
(I:}'.'}: 10. Areas of Investment Not Eligible for Customs Duty
h'J-9u<;-tJ c"l.'i' "'ll'\u'/MI}-}
. :1.":-;'1\A;; Exemption
:r:. f1.9u<;.tJ "'l.'r ." llP.n-} f°'l!,tA'Y:fI:':(D' frt. UDili'';f- 1) Notwithstanding the provision of Article 8 of these
{i. h'lU fll\f, nA'}"'~' ~~:f-"1lt~(D' fl.lfC9u: fO'J.h Regulations, the following areas of investment are
"-I'\u} fh.'}iiil-),ov'H' P't. (fl'{)\1:-;'f1-tJO-rtJ cf'l.<r not eligible for exemption from the payment of
.,,, °7fll.:";': fO'/.(1f1):':(D.M.',tI'H" ; customs duty:
 1~' ~'1f.~t?;4..fut.&\ ~:)t.} :),~nl "!'I'C @i 1'(;.;i
""J n!tt?; 'H". Federal Negarit Gazeta - No. 34 7°' February. 20m-Page 2095

u) l1ttt1h.n f.I.~9':f"} fU'/~t.U.Yo,;. Ir.,.." ,'.: (a) hotels (excluding star-designated hotels),
'1".,.."..:)'.: '''''UI. r"j""": i1~n,'Y.:f': n.c,' n..y.:f.: motels, tea rooms. coffee shops, bars. night
uum'l' l}..y.:f.: f9°'IB. tH}(l:f.: Q"9° 1\"'4: ,v.I.~ clubs and restaurants which do not have inter-
f :,~W. ~l\.y.t.'H,""'.e; 9°"l.n n."':)": national standards:
"
ft) f'}"lJ': P't.9)""" U'/ft')'9° f:~:9°": f:f'l:;J:(~'c,' (b) wholesale, retail and import trade:
1\l\UU6L""')' 1"'1,.: (c) maintenance services:
tl1) f1'1c,' 1\1A"1f\"')' P't.: (d) commercial road transport and car-hire
uu) f"}",f.: UU"}1 ¥.: 'h"."}l\;rc.).c,' fuub/,'
servIces;
u'/ht.f')-1\1A"'ft...)- 1"'1,.:
(e) postal and courier services:
LP) f7'l\;J.e; h.(,fC 1\1A"Ift...). P't.:
(t) real estate development;
I.) ft"}"If.'c,' uutj (,.f l}..). fOl/.If)' l}."'1'r, ,),'}"
(g) business and management consultancy
9'1'"} LPC'" o'/ht.f.).r, uuif1':
servIces;
tI) f"}"If.'C,' 1\i\-f'~Y.C 1\°,/'1(, '1.). P't.:
(h) advertisement services;
if) fO'/l\:J'w-t.f P't. 1\1A "1ft...).:
.,.) ft.A9°Cj uullA P't.p1':f'.: (i) cinematography and similar activities;

n) f~Jlr.Cj U) radio and television broadcasting services;

''''l\.ii.~'r"} P'C6L"')'1\1A"1f\...}. P't.:
.1-) fll.'1..O'/c,'.t.N'c n.",:}" 1\',A "I/l"')' '}"If.' P't.: (k) theatre and cinema hall operations;
:,~) f.,.9°.;.tl1\l\.,.""t..,.). '}"If.' P't.: (I) customs clearance services;
.~) f"CD"}Y.(, "}"If.' P't.: (m) laundry services;
""A""'''')'
.,) f.,.,' wh.A .,.)-: f"}"If.' 1.~.).Cj f.HI.')' uuj'i"'"L (n) travel agency, trade auxiliary and ticket-selling
""'A"I""')- "}",f.' P't.: services;
'f) f""'h'S fuuUJLPft. P't.9''''''':: (0) lottery and games of a similar nature;
~. tllLU "}.,.~ "}O.l\ 1\ "}"'X' (Ii) P'C h""'/l~.')' f P' t.
'" 2) Notwitstadng the provision of Sub-Article (I) of this
UUl\111' n.f-l,L},u'/6 PC-"- 1\",'I.n Iftj fl..f1')'CD'
Article, the Board may. where it finds appropriate.
f".yo...h "'1.'1' .,., uu.n.). ftl7~llnFl:m"} ",,,,,""'.
issue directives providing for additional areas of
fP't. uul\f11' nf1.lI.CD' nOl/..fmtfJm' UUIJU(,.'
investment which may not be eligible for exemption
I\.CDl\"}~1'''A::
from the payment of customs duty.
.,., If.,m. f10' f'17::J'A
Hi' h1.9°...tI 4>1.'1' /).+p11''}l\/lOl/ia 11. Transfer of Capital Goods Imported Free of Customs
"'''/l 4: Duty
h1.YO...tI "'1.'1' .,., If'j f,,1} OIjc,.:,:w-yo f'I',::J'A /):1- Capital goods imported free of customs duty shall not be
I\.ht.AIH' ~111 f'1nI.CD' f1'9°...h "'1.'1' J1ia"'f.'CP "~ht. transferred to third parties not entitled to similar duty free
AtJ-). .,.uu,,"~ f1-9°...h 4>1.'r .,., uu.,H' /It\.ftm. flm.
privileges. unless prior payment of the customs duty is
1\."'''/l4: "'f."""A"9°:: effected thereon.

tl4:A 1\/,.,)'
A f. A f. .f:"}.')'1.9''''''.
:'J(. :"n,.).
n'LU ,v.'}.ft 1\'}.,.~. Hi f-I'oDIlf..,.m.')
11/lu.n.). f1.yo.;.tI 11ttP'AIfJ,},}
1\LPt..;.'} /luuw(}'} nWlfJm. "''P~: <h1'C:!;'1!:P.f'frt11\'}"'~'
PART FOUR
Miscellaneous Provisions
12. Penalty
f"'''/lt.0I/'};;:CD'9°
'h'}Y.1C,' ft"'l**YOc,'
Any investor who acts contrary to Article 11 of these
Regulations shall be punishable in accordance with

(fe UULPI.')' f."'IfJA::

Article 73 of the Re-establishment and Modernization of
Customs Authority Proclamation No. 60/1997.
"fl~' l\ft .,.7t'...c,' 'h'-'~OI/.H. tII\OIJ~tjt.:,:CD'y:w:h' uuuu(,
,f9':}" 13. Repealed and Non-effective Regulations and Directives

f1\.'Hiia')'uu"},), OIJf1I.:"!J: fO'U,ia')'C''''''' YOhc f1,.}. 1) Investment Incentives Council

of Ministers
ii'
,v."}.n<l:'I'C%/:r:P.firt ('h''}f.,,'i1?i'ft) 'he; /l"'1C m'l\'I' Regulations No. 7/1996 (as amended) and Invest-
11ttINH'1' l\/l.I'fI/l'" f P' to uuial''''''' fmlfJCD' fOlJ.'1..ia ment Areas Reserved for Domestic Investors Coun-
'h~'1' yotlc l}..). f.'}.n ":'I'C'i!}?;/IP.f.:t 'ULU y.'}.n cil of Ministers Regulations No. 35/1998 are hereby
.f.'lil.'PA: repealed.
~. h'LU 1.'}'O ,'JC fOY.:"I.'} "'Ic,.;t=CD'YO 1.,}of1 w~yo 2) Any Regulations or directives inconsistent with
uuUU(,.' tHtu Y.'}'O CD'ia1'f"'1."11-1'~f'1''} ,H'uu these Regulations shall not have effect with respect
.,.). 1\~Ci I.CD'YO::
fth'" ,"t.~OY. to matters provided for in these Regulations
 ;

,. February. 200)-Page
~

~o1'l~. "","", +re fi '1'£.1'11 !Ilnt+r-:." ~""f1edera. Neprit 'Oaz~ta- No. 34

'
"N~.JtH" ~, 2096

:I]~. fOD7f:J11.1,(":J1.
, ,
14. Tra(l$itoryProvision
lULU':HI A'+A- Ie f''''.~11'''' o.crcr 0'.''''
'.

i. '
1) Notwithstanding the provisiQnof Article 13 of these
cf!.pc~I1Df1t~ (""..,.7fJrft) 'A'i ,.'0" ,,-",,",- Regulations,inceqtives granted pursuant to the
Investment Incentives Council of Minister':
Uwm- OPOPI..'''":(' ODCPt:" f"'~.+~ "70t;"!J:"":(.
Regulations No. 7/1996 (as amended) and the
-"L""7.~"" f,+~"AII '

directives issued thereunder, shall continue to take

I."". ''''.'Pci/!iir-t~ ('A1;,-,'7flfA) OPCPt-}.
effect.
"7Ut:J.;r- f-,.cpmw- '1ftV1F1' OtL~ ,:~ oPCPt-t. . 2) Where ap investor granted with incentives under
n"7.~.+p~ ."7n~:l"!J'sP1' ,-"m"""", "~If,) h~."1 Regulations No. 7/1996 (&samended) opts instead tc
f,U')). ""''10(1 ""IP- '~'fi'il-}'oP''''..oPr?In.'1. be a beneficiary of incentives provided for in thes,
n"7"':J'OJ~ fOD1I-':-'~m?"7. "~11" ~tJ8f)AtI Regulations. he may notify the appropriate invest.
ment organ an<~be entitled thereby.
Hi' ,.,O'f"'.A'iO""1.'L
15. ,Effective Date
f,U ~'..rlli~t.A '~.11.~1';J'LtfJ:1"~''''' t1lDtfJO"'.
+,
. These Regulations shall come into force on the date
'f.'-C: f09 f,1f'iAtI
their publication in the Federal Negarit Gazeta.
; ,

"..." An'11'C c» +, Ii!f2?i~',-' Done at Addis Ababa, this 7fhday of February, 2003.

-"" 'Lt;ce MELES ZENA WI

fA..1''''k'~"do"'e'" 'fDh~C\1ce1.1 tttJ PRIME MINISTEt{ OF THE FEDERAL
qEMOCRA TIC REPUBLIC OF ETHIOPIA
m"~" "'.t"-1-C

.
ofIf:Y')'" M,. "'-''''1.1' y.'C';o}. :""'-
&ERHAN~A SELAM PRINTINGENTERPIUSE

, .'\
.'

."
 'IX' !nr.:i:i, tuY..MA .,;J/.'} ;JIL"I "!'I'(: .;;~ 'I'C.;; +1 )]irj~ ,.,.. Federal Negarit Gazeta - No, 34 7" February, 2003-Page 2097

lP"}lIll:rr
SCHEDULE
t\n"C (J}.fa')' .Jt\V.n"'1' f,,'ht\t\. fjP~. OUfa""1' Areas of Investment Reserved for Domestic Investors
(i. fUIJ.h.,.t\u). fn."}lill')'ou"}"', jP~ ouit :Y' n"..r. m.it",
1. The following areas are exclusively reserved for domes-
.Jt\v.n.r.:}'. .n:J: fUIJ.tJ~P,. f,IfCit\- ; tic investors:
?i' f:}"C':C: "}'?.r...c,'f .r.:t\" jP~; 1) retail trade and brokerage;
~. f:~S'°" "},?Y: (~~~Ci f~~~ 9"c.,.:y.") ",:t»l-o 2) wholesale trade (excluding supply of petroleum
h'}.'to-S'° f(J}.6f.b.1I\v.n"'1' n"1c m-it", loul1:"'" and its by-products as.well as wholesale by foreign
n~S'°" uui'i'l'"} Itf,(;ttS"'c); investors of their products locally produced);
,~. f',O, "},?Y: (hO';J';1111 o.:,'ou, ~Ci fUIJ.~it..,.C':r- 3) import trade (excluding LPG, bitumen and upon
S'°tJc 0..). OUIJ.mfa~(J}'oulPl.1. I\mQJ. 9°C"" ..,-0, approval from the Council of Ministers, material
.).~.). hUIJ.(J}.t\.nfa"'~c); inputs for export products);
~. 1'10 o.c,': ~.}.: f:".1-}. htJt\..:y.: 'I'~"'t.: ",~Ci 1\.(11 4) export trade of raw coffee, chat, oil seeds, pulses,
h1n.f nOlI,?',')' h"}.'to-S'" It. "}iiit.,.~ ~.,," "ll1:(om- hides and skins bought from the market and live
mf.S'" tIY.t\.FfID- Oit.,.~c O-)1'! ~fl\":Y'Ci f.,.,r: sheep, goats and cattle not rased or fattened by the
h.n.r.:-". (H~S'" mY. (J}.'T' ou"tn investor;
5) construction companies excluding those desig-
k nY.l~' n"}.r..'hUIJ.ouY.O'''''nit'I'~c f""'it""~h1i'
jP~. "'W ~.'T'~""; nated as grade 1;
?;. ",~c;' 1\.{l1hith tJlfa"" Y.lJ{ ",A4-..,.;
6) tanning of hides and skins up to crust level;
7) hotels (excluding star-designated hotels), motels,
:i:' f.1I\"'h'0 Y.lJ{1P1'") f"'f,(;tl.S"'~ II"I:I\":Y': '1"-1:
pensions, tea rooms, coffee shops, bars, night clubs
t\""1': '1.'"},...f'lj1': iff, o."':Y'i O'Ci o."':Y'Ij ""Ill'"
0..,,"1.: fS""Ii."f'tJOf}:f: ,t\9" "+4-«£ f.lJ{ ",,:r:m-Ci and restaurants excluding international and
O,,'m,.. ~ h"C S'°..,.n nH1J{1:"" hll7.:"'o-l:..,. Oit.,.+C
specialized restaurants,
8) travel agency, trade auxiliary and ticket selling
1\.t\"1' fS"''?n 0."'1';
services;
:};. f1--tI (J}h.A ~'r: f"},?,(' lJl""~""Ci f-tho..,. tlDli'",
9) car-hire and taxi-cabs transport services;
n1A'?t\ ,. jP~;
10) commercial road transport and inland water trans-
ji. ouhS fUIJh~.f'}'Ci f;J'h "1A..,I\.""1
port services;
X' fOU"}1Y: f"},?,(' .}.~"}it7"c.1' ~c;' fV1C m-it'" m-'
11) bakery products and pastries for the domestic
"f, .).~ "}fa7"c'1- n1A ..,,,...,.;
market;
X?i' t\V"C m.fa'l' 1n1 fUIJ.+CIt f,csf}'i fhoh ,.C.,.:r-I 12) gl'iindingmills;
I~' f(J}~~"1oo,.}. n1A..,t\ ,.;
13) barber shops, beauty saloons, and provision of
:IJ~' o'"c O'fa.,.tJhA: f-l:"}~Ci It".,: f"''I'l:-S~'''' jP~1 smith, workshops and tailoring services except by
n4-.o~tJ Y.lJ{ f"'f,tJ~r: fA-oit itA."" garment factories;
X~' f,'h"}'l hY.:It""Ci fouhS "'1Ci n1A"'''.''''1 14) building maintenance and repair and maintenance
Hi' fh"}t.L1.)' OUlP"}mct1Ci fll)ID-" jP~1 of vehicles;
:r:?;. f.,.S'°.;,tJ nfa"''''',(.~'''' jP~; 15) saw milling and timber making;
.
Xi:' foo"LfS'°! fi;1.1-cCi f""~'" ",,,f"" "1A"'''.''''1 16) custorr.s clearance services;
:r:~I;' fUIJ"'UIJ.1 "},?Y: jP ~rI 17) museums, theaters and cinema hall operations;
?. (}fLU n"}~:t "}o.fa n"}"':t (Ii) 18) printing industries.
f"'''lH~'''' f1\. ,iiit..,.
uP").}. P' &.1P"1' h"} f."'IIlO-l: If~m-: fUIJ.h.,.t\-"" f jP~
2. Without prejudice to the provisions of sub-Article (1) of
oufat\~)'. n.')'f'k1f£ 'L'?~"" 11,,:r:m- I1I\V-o.,.:r- -O~
this schedule, the following areas of investment are
fUIJ.tJ~,P,. f,IfCi t\-;
exclusively reserved for Ethiopian nationals:
j'i. ft)"}tJ: fit. "}if'~."}fa jP~ hCi ,,~it.,.~ f-or:CCi -I:ml1 1) banking, insurance and microcredit and saving
jP &.;
'"WS''' services;
~. fUIJfa"'''t\~Ci fouch-o m-hACi "1A..,".""! 2) forwarding and shipping agency services;
r' NIC: Y.-tJfai;"},?"1 A "'''''''''1 3) broadcasting services; and
!!. hfah~' OU"}1f.7f:f fouft}.' ,,:t»9'" 11,,:r:m-h.Ch~ 4) air transport services using aircraft with a seating
~"'1' fll7.tJ~.(- fnfC ..,.~,it7"C"" h1A.,A-""" capacity of upto 20 passengers.