The primary purpose of the tariff system is to provide revenues rather than to protect Ethiopian industry or to prohibit the importation of certain commodities. However, there are restrictions on importing certain goods that compete with domestically produced goods. There are ten excise tax brackets, ranging from 10% for textiles and electronics to 200% for alcoholic beverages. Imports of certain agricultural and industrial tools and parts and many raw materials are duty-free. Sales tax rates are 4% for essential items and 12% for all other goods. Tariff reductions in 1997 targeted imported goods that helped exports. These ranged from 0% to 50% and the average at 20%, but there were plans to reduce the maximum tariff to 30% and the average rate to 17–18%. There are no free trade zones, but a transshipment port is available in Djibouti.
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