1. Basic situation

The Federal Democratic Republic of Ethiopia (Ethiopia for short) is located in northeastern Africa, with its capital, Addis Ababa, with a land area of 1.1036 million square kilometers and is the second most populous country in Africa. According to statistics from the International Monetary Fund, in 2024, Ethiopia's GDP will be US$145 billion, a growth rate drop of 9.2%. The population is approximately 108.41 million, and the per capita GDP is US$1320. According to China customs data, in 2024, the bilateral trade volume between China and Egypt will be US$3.55 billion, a year-on-year increase of 17.5%. Among them, China's exports to Ethiopia will be US$3.14 billion, a year-on-year increase of 21.4%; China's imports from Ethiopia will be US$410 million, a year-on-year decrease of 6.0%. China mainly exports mechanical and electrical equipment and its accessories, textiles and clothing, steel products, plastics and their products to Ethiopia, and imports sesame, mung beans, coffee, leather and leather products, ore, etc. from Ethiopia.

Starting from December 1, 2024, China will grant zero-tariff treatment to all least developed countries that have established diplomatic relations with China, including 33 African countries. China became the first large developing country and the world's major economy to implement this measure. This policy will support more African countries 'high-quality products to enter the China market and promote trade between China and Africa. In this regard, Ethiopian Ambassador to China Tafera said that China has brought broader development opportunities to Africa and Ethiopia by deepening economic opening up and strengthening relations with developing countries.

2. Automobile market situation

In 2024, Ethiopia will make the decision to completely ban the import of fuel vehicles based on its own energy strategy and economic sustainable development considerations. Ethiopia is focusing on electric vehicles, and the government actively encourages the import of electric vehicles and opens up green channels for them. More than 100,000 electric vehicles have entered the country every month, showing a vigorous development trend. On January 5, 2024, Ethiopia lifted the "ban on June 15, 2023" and Volkswagen ID series electric vehicles made in China have been allowed to enter the Ethiopian market.

3. Policies and regulations on used car import

1. Import policy

New vehicles (pure electric vehicles, excluding fuel types such as hybrids) can apply for COC customs clearance certificates domestically; new vehicles can also apply for COC customs clearance certificates domestically when they are converted to second-hand vehicles, but three certificates are required for the vehicle (certificate of conformity, environmental protection list, and certificate of consistency issued by the main engine factory).

2. Tax policy

Electric vehicles (including two-wheelers and tricycles) imported into Ethiopia are only subject to import tariffs, fully assembled vehicles are subject to a 15% tariff, and semi-assembled vehicles are subject to a 5% tariff.

3. Documents required for import

● Bill of lading

● Original certificate of ownership, vehicle registration invoice and purchase invoice

● Authorization from the Department of Transportation and Communications of the Road Administration (issued to the shipper by an organization or diplomatic mission)

● Customers must present a valid driving license and international insurance policy purchase invoice or receipt, etc.

Source: "China's Used Car Export Country Guide 2024"

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