Large Quantity Importers to Benefit from Door-to-Door Delivery Service


The new system will enable manufacturers to pay tax as they use their products, rather than paying for all stocked commodities




The Ethiopian Shipping & Logistics Services Enterprise (ESLSE) is delivering shipments directly to the warehouses of large quantity importers who import full containers, in an arrangement with the Ethiopian Revenues & Customs Authority (ERCA).

The decision followed what the Enterprise called a successful pilot in September for factories at the Easter Industry Zone, which has a bonded warehouse – a requirement for the service.

This approach will mitigate the cargo congestion problem at the dry ports and enable manufacturers to receive the imported cargo on time, says Ewnetu Taye, Director of multimodal services at the ESLSE.

The multimodal system started in 2012, with a directive from the Ministry of Transport (MoT) to transport goods under a single contract, but with two different means of transportation. The carrier is liable for the entire journey, including the shipment’s delivery at the final destination. The transportation can be performed by sea, rail and or road.

The directive instructed all government shipments transported through the ESLSE to be delivered to dry ports and warehouses that are authorised by the ERCA to receive shipments. All private importers are also ordered to bring their container shipments to the dry ports and warehouses of the ERCA.

But the system faced problems from the outset, leading to the reintroduction of the uni-modal system within the same year. The Enterprise had organisational and management problems in facilitating the multimodal system, says an official at the Modjo Dry Port.

After some adjustments, the Enterprise restarted the multimodal service, transporting cargo from Djibouti to the Modjo Dry Port – 72km from Addis Abeba – and to the Comet Transport SC located in Kality. The cargo are moved to importers warehouses after tax clearance.

For the latest door-to-door delivery of containers, importers need a license for bonded warehouses – a building or other secured area to keep the imports. This arrangement allows manufacturers to clear taxes at their warehouses, only for the amount of the imported goods they have used – not all at once for all stocked commodities at the warehouses – according to Ewnetu.

“For this type of tax clearance, the importers should get a permit from the ERCA,” said Ewnetu.

A leather factory executive says that the new approach will not only cut the delivery time for shipments, but also the costs of transportation to their warehouses, as the Enterprise could hire transporters that offer low prices.



By FASIKA TADESSE
FORTUNE STAFF WIRTER

Published on October 12, 2014 [ Vol 15 ,No 754]


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