Eritrea, located in the Horn of Africa, is a developing country with a growing need for imported goods. Its economy is primarily driven by mining, agriculture, and remittances from abroad. The government controls much of the economy, and trade policies reflect efforts to balance imports with the need for local production. Eritrea’s customs tariff rates are established to regulate the flow of imports and protect domestic industries, while also ensuring access to essential goods like food, medicine, and industrial machinery.
Customs duties on imported goods vary significantly depending on the product category and origin of the goods. Eritrea is a member of the Common Market for Eastern and Southern Africa (COMESA), which influences its trade policy and preferential tariff rates for member countries. Additionally, Eritrea maintains trade relationships with countries such as China, the European Union, and other African nations, which can affect import duties on certain products.
Custom Tariff Rates by Product Category
1. Agricultural Products
Agriculture is a crucial sector for Eritrea, though the country imports a substantial amount of its food due to limited local production. The government encourages domestic agricultural production by imposing tariffs on imported goods.
A. Cereals and Grains
- Wheat: 10% tariff. Wheat is a key staple in Eritrean cuisine, though much is imported to meet demand.
- Maize: 8% tariff, reflecting its importance in local diets but also encouraging local production.
- Rice: 15% tariff. Eritrea imports much of its rice due to limited local production.
Special Import Duties: Imports from COMESA member countries may be subject to reduced tariffs or duty-free access.
B. Fruits and Vegetables
- Bananas: 0% tariff, due to both local production and regional imports.
- Tomatoes: 20% tariff. Locally grown but supplemented by imports during off-seasons.
- Avocados: 12% tariff, reflecting growing consumer demand but limited local availability.
C. Meat and Animal Products
- Poultry: 25% tariff to protect local poultry producers.
- Beef: 30% tariff due to the limited local beef industry.
- Pork: 20% tariff, though less consumed locally, is still in demand from certain urban markets.
Special Import Duties: Meat and animal product imports from COMESA countries may be subject to preferential tariffs or duty-free access, encouraging regional trade.
2. Textiles and Apparel
The textile and garment sector is limited in Eritrea, necessitating imports of finished products and raw materials. However, tariffs on imports aim to foster the growth of local production.
A. Clothing
- Ready-made garments: 20% tariff. This includes casual, formal, and sportswear, with tariffs designed to protect local industries.
- Textile fabrics: 10% tariff on imported fabrics used for local garment manufacturing.
- Footwear: 25% tariff. Most footwear is imported, especially from Asia and Europe.
Special Import Duties: Textiles imported from COMESA member countries may qualify for lower tariffs or duty-free status.
B. Cotton
- Raw cotton: 5% tariff, encouraging the growth of the local textile industry.
- Processed cotton: 12% tariff, reflecting the need for imported cotton for clothing and fabric production.
3. Electronics and Machinery
The electronics and machinery sector in Eritrea is growing slowly, and the country relies on imports for much of its industrial and consumer electronics.
A. Consumer Electronics
- Mobile phones: 0% tariff, as the government encourages access to communication technologies.
- Laptops and computers: 5% tariff, to promote technological advancement.
- Television sets: 10% tariff, applied to consumer electronics for home use.
Special Import Duties: Consumer electronics imported from countries with bilateral trade agreements, such as China, may benefit from reduced tariffs.
B. Industrial Machinery
- Agricultural machinery: 10% tariff, designed to promote agricultural mechanization.
- Heavy industrial equipment: 15% tariff, applied to equipment used in the mining and construction sectors.
- General machinery: 12% tariff, depending on the type of machinery and its intended industrial use.
Special Import Duties: Imports of machinery from COMESA countries may receive preferential treatment, reducing tariffs for industrial equipment crucial to development.
4. Pharmaceuticals and Medical Equipment
Eritrea imports most of its pharmaceuticals and medical equipment, as local production is minimal. The government maintains low tariffs on essential healthcare products to ensure accessibility.
A. Pharmaceuticals
- Medicines: 0% tariff on essential medicines, to ensure access to healthcare for all citizens.
- Vitamins and dietary supplements: 5% tariff, promoting health and wellness while encouraging local alternatives.
- Medical supplies and surgical equipment: 3% tariff, applied to critical medical equipment needed in hospitals and clinics.
Special Import Duties: Pharmaceuticals and medical equipment from COMESA member states may enter duty-free or with reduced tariffs, facilitating access to affordable healthcare products.
5. Automobiles and Transport Equipment
Eritrea imports the majority of its automobiles and transport equipment due to the lack of local production. Tariff rates are structured to regulate imports while supporting local transport development.
A. Automobiles
- Passenger vehicles: 20% tariff on cars, SUVs, and other passenger vehicles, which are largely imported from Asia and Europe.
- Commercial vehicles: 15% tariff on trucks, buses, and other commercial vehicles.
- Motorcycles: 10% tariff, reflecting their widespread use in rural areas and for personal transportation.
Special Import Duties: Vehicles imported from COMESA member countries may benefit from lower tariffs or duty-free access, promoting regional trade in transportation equipment.
B. Spare Parts
- Vehicle spare parts: 10% tariff, applied to essential spare parts used for vehicle maintenance.
- Aircraft parts: 0% tariff, supporting the maintenance of Eritrea’s limited aviation sector.
- Shipping and transport equipment: 5% tariff on shipping containers and related equipment for logistics.
6. Chemicals and Plastic Products
A. Chemical Products
Eritrea imports a wide range of chemical products for industrial, agricultural, and household use.
- Fertilizers: 0% tariff, promoting agricultural productivity and food security.
- Pesticides: 10% tariff, applied to agricultural chemicals needed for crop protection.
- Cleaning products: 12% tariff, on household cleaning supplies, detergents, and other chemical products.
B. Plastics
Plastic products are an important import for both consumer and industrial purposes.
- Plastic containers: 18% tariff on finished plastic goods such as containers and packaging.
- Plastic raw materials: 5% tariff on raw plastic materials used for local manufacturing.
7. Metals and Construction Materials
A. Iron and Steel
Eritrea’s construction sector relies heavily on imports of iron and steel products, particularly for infrastructure development projects.
- Steel rods and bars: 5% tariff on construction materials like steel rods and bars.
- Sheet metal: 10% tariff on sheet metal used in building and industrial applications.
B. Cement and Concrete
Cement and other construction materials are critical for Eritrea’s development, especially for housing and infrastructure projects.
- Cement: 15% tariff, encouraging local production while supplementing with imports.
- Concrete blocks: 10% tariff on imported building materials used in construction.
8. Food and Beverages
A. Processed Foods
Processed foods are a significant part of Eritrea’s imports, as local production is limited.
- Canned foods: 15% tariff on canned vegetables, meats, and other processed foods.
- Dairy products: 25% tariff, as much of the country’s dairy products are imported due to limited local production.
- Snack foods: 20% tariff on snacks and confectionery, reflecting increasing demand for imported foods.
Special Import Duties: Processed food imports from COMESA member states may qualify for lower tariffs or duty-free status.
B. Beverages
Beverage imports, including alcoholic and non-alcoholic drinks, are subject to relatively high tariffs.
- Alcoholic beverages: 30% tariff on imported alcohol, including wine, beer, and spirits.
- Non-alcoholic beverages: 20% tariff on soft drinks, juices, and bottled water.
9. Energy and Fuel Products
A. Petroleum and Fuel
Eritrea imports most of its fuel products, despite small-scale local production.
- Gasoline: 5% tariff on gasoline, which is a vital import for transportation and industry.
- Diesel fuel: 5% tariff on diesel, reflecting its widespread use in transportation and power generation.
- Natural gas: 0% tariff on natural gas imports, encouraging diversification of energy sources.
B. Renewable Energy Equipment
To promote the adoption of renewable energy, Eritrea maintains low or zero tariffs on key renewable energy technologies.
- Solar panels: 0% tariff, supporting the use of solar power as a renewable energy source.
- Wind turbines: 0% tariff on wind energy equipment, encouraging clean energy development.
10. Luxury Goods
A. Jewelry and Precious Stones
Luxury goods such as jewelry and precious stones are subject to high tariffs to generate revenue and regulate luxury imports.
- Gold jewelry: 10% tariff on imported gold and luxury jewelry.
- Diamonds and gemstones: 8% tariff on precious stones.
B. Perfumes and Cosmetics
Luxury personal care products, including perfumes and high-end cosmetics, are popular imports in urban areas.
- Perfumes: 20% tariff on imported fragrances and luxury personal care products.
- Cosmetics: 12% tariff on skincare and beauty products.
Special Import Duties for Specific Countries
COMESA Members
As a member of the Common Market for Eastern and Southern Africa (COMESA), Eritrea enjoys preferential tariff rates for goods imported from other member states. Many products, especially agricultural goods, textiles, and machinery, can enter Eritrea duty-free or with reduced tariffs under COMESA trade agreements.
China
Eritrea maintains strong trade relations with China, which is a major source of imports, particularly machinery, electronics, and construction materials. Some products imported from China may benefit from reduced tariffs through bilateral agreements.
European Union
While Eritrea is not part of any free trade agreement with the European Union, certain products imported from the EU may benefit from preferential access under development assistance programs and trade initiatives, particularly industrial machinery and medical supplies.
Country Facts About Eritrea
- Formal Name: State of Eritrea
- Capital City: Asmara
- Largest Cities:
- Asmara
- Keren
- Massawa
- Per Capita Income: Approximately USD 1,400
- Population: Approximately 3.6 million people
- Official Language: No official language, but Tigrinya, Arabic, and English are commonly used
- Currency: Nakfa (ERN)
- Location: Northeast Africa, bordered by Sudan to the west, Ethiopia to the south, Djibouti to the southeast, and the Red Sea to the northeast
Geography, Economy, and Major Industries
Geography
Eritrea is located in the Horn of Africa, with a coastline along the Red Sea. The country shares borders with Sudan, Ethiopia, and Djibouti. Its terrain includes highlands, deserts, and a long coastline, making it geographically diverse. The capital city, Asmara, is located in the highlands, while the port city of Massawa lies on the coast. Eritrea’s climate varies from temperate in the highlands to arid in the coastal and lowland regions.
Economy
Eritrea’s economy is primarily based on agriculture, mining, and remittances from Eritreans living abroad. While agriculture is the main livelihood for much of the population, it is often constrained by arid conditions and inconsistent rainfall. Mining, particularly gold and copper, has become an increasingly important sector, attracting foreign investment. The government plays a dominant role in the economy, with significant control over many industries.
Efforts to diversify the economy include investments in infrastructure, tourism, and renewable energy. However, Eritrea’s economy remains highly dependent on remittances and subsistence farming. International sanctions and limited access to global markets have further constrained economic growth.
Major Industries
- Agriculture: Agriculture is the primary occupation for the majority of Eritrea’s population. The main crops include sorghum, barley, and millet, though much of the sector remains underdeveloped.
- Mining: Eritrea is rich in mineral resources, particularly gold, copper, and zinc. Mining activities have grown in importance, contributing to export revenues and foreign investment.
- Construction: The construction industry is growing, driven by infrastructure projects, including roads, housing, and energy facilities.
- Tourism: Eritrea’s historical sites, diverse landscapes, and Red Sea coastline offer potential for tourism development, though the sector is still in its infancy.
