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Nelum
Laws of Eritrea

Customs Proclamation, No. 112 of 2000

Made 2000-10-23 · Text as of 2026-10-01

Public law and official guidance, published as research. Not legal, tax or financial advice.

About this law

Language
English
Kind
Act
Organisation
African Union (AU)
Country
Eritrea
Subjects
Agricultural and rural development
Keywords
agricultural commodities, authorization/permit, business/industry/corporations, certification, transport/storage, inspection, harbour, taxes, international trade, fiscal and market measures
Categories
*

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Text

The law's own text, section by section, as held. Each section has its own link.

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"'f'f:,. hr ~/\-.f'•1· "'1A'?/\.., ;1-:,. hrttfhflO--r ( /\) ht tl..l-i:,.:,. 011 tl~fto: '}~t\-.f, "'1A'? tt,,:,. ,t•1i4-t\. tl1ia>·'} ti~/\.:,.: J, '},f·A f- r hrJt. n"' (rh) ~t\-.f, "'1A'?ft-o:J"'·)· tl~Rau-t\- "'1'111'} t}«.', :J"'-r'}: h '},f•l\.f, rm-ll~ 'i',e hrJt. 11>too {\t\- fl'}~:J"'·} ro.f, '1AJ, ,};,1:<f ( OD~,h'}) : hhrt ld·roo'f :: ( 2 ) 1#0-0'1 "'11 'Tfht' tl "' P~ ' tl a>.f, ,-,,;,;,~)· hfl o.:t• ~,-,,&.-1· 1-r~n: "'11 uu1i11'}: >t1l b'},f•.f, 'IC -'lT: "'11 :i-r-~ ODllff'} a>.f, hfl <f>LR-'i'~ ~~'} h.'?OC 11~/\ 1-~.f,: '?'} hr I\Ml.'} 'i' I!, ~t\-f, "'1A'?fto·} "'11 t1Ah {l~t- h-l·&J~OD: '}6 "' P l\"'I:J•-1· 'i' ,e I tl ~ I It. a>K, ri1,'J;,-)· 1111rA h·} >t11 '1-1· ~;,1&..'l· 1-r~ti: >t1l ou"fiH'}: "'11 <rf-~ u 0 1ttn ro,e "'11 <f>LR-'i'~ ~~'}: hh r t h<.'l:J"'i:: hr ld·&.ROD .eiRc:: 136 77. 1'1POA± diOt.:J::1 f'.IO-f)AflJ11 H,CD'/11 ~ ( 1) °t't.la-t-C: (l?t'h,f•~ '11l-h.c:,.? 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  5. 2.'1.fa,J·c: 10'i"rr 'i" .e I tL NP~ I tt. '}h.(',~~ou- h11 ?°hA.tiA 114'1',;r m.(', 11rf•ll'l"l't 'Hd·'Pf) h· ' 'I°: ?°m·ll}'.9° 1111.(',t'h;J'l! ou?Jt. '}11>trf'cn. >t.:f.rlt- J't11 ?°C'111'> ?°:,·"111'> 'J"m-t.t) tt.m'¼l\ (lfl oun. 'i" .e' t h~fl.: 11;,,;,;,:,. 11"fi-o•, oum'} '¼f)O. ,em-f)'} f h?° ' tL 11J-tou(l{\ '¼f)O. '111 auq,~ t)t (D/!, '111 7i.f>1' 'rf!, },,f•mco- >t":f.rh- f!,1i &.A:: ( 3 > '>t)t\OTJ:J-:,- '>1',.fl '¼'>+~ ( 1 >: c;,e,t u, ·t1>,e1t 11H.?°Ah:,·r 1?°1'"11) 'r f!,' IL h'P~' IL 11HCh. "10t.;J- 'r /!, ll?°m- 11fto', (lfl au'}•,:,·: Ot "10 t.;J- 1fq>Ot\ O'¼A outt. ro.(', O'¼A f)Afll'}: 1100 (\l:,. h11 '}'}<J,~ 9 c;,erL >,'P~'tL 'h,J·~11l J!:'};J?;J-:,. ?Dt)m.t-m-~:,. 11'/"f)m.C J?,:,."111:: 137 (4) >t1l '}Jt.fl '¼'}<f>~(2) 'i'f,tL '¼'H•,etL 1lfl t.<;. Jt:'};J1;rT 11ffto't 1l'l1l-MTt- 1ffi..'t ~lit kl·.f..~l ''I°: 1100(\l•l- '}Jt.ft '¼'}cf>~ ( 1) 'i'J.1,IL '} 1<1',r'tL "'10&.;J· 1l?°lTH OJf, 'tll >t'I' ~' IL 1l?°'P"'1fl S-11 OJ,7im. '}11>.-l•OJ 11"fi..'t 't1C 119"1·"'11I >t1l ?°tit\11&\ 10'i"T >t1l 1·:h t ' IL >t'I'~ ' IL 11-f'r;J· 11L'Pit~ (\11 1l0 'Ml .e?°Ah,f,:: >t{IODt,.: 23 'r~9°1:f2QQQ '} , 9" UU'}"7{1,t h,C,}t. 138 Proclamation No. 112/2000 The Customs Proclamation Introductory Provisions

  6. 1. Short citation This Proclamation may be cited as" the Customs Proclamation No 112/2000".

  7. 2. Scope of application and entry into force ( 1) The provisions of this Proclamation supersede any provisions of the Customs, lmport and Export Taxes 14/7 (I 955) P.145 and any amendments thereof, the Transitional Penal Code of Eritrea Proclamation No.4 of 1991 and any amendments thereof, and any other Proclamations or Regulations of the State of Eritrea relating to Customs import and export taxes and duties. (2) Subject to sub-article (3) of this Article, this Proclamation shall enter into force on the date of its publication in the Gazette of Eritrean Laws. (3) Articles 18-28 and Parts II, lll, lX, Xl, Xll, XVI or Articles thereof, shall come into effect on the date or dates specified by the Minister by Legal Notice. 139

  8. 3. Definitions ln this Proclamation, unless the context otherwise requires: " Proclamation" means this Customs Proclamation; " ascertained forfeiture" means the penalty action in respect of goods in contravention of this or any other Proclamation, and which goods would be subject to seizure and forfeiture except that the goods are not found or such seizure would be impracticable; "bond" means an undertaking in legal form, by which a person enters into a binding arrangement with Customs to do or not to do some specified act; "bonded warehouse" means a place granted a permit as a bonded warehouse by the Minister according to the Proclamation. "cargo declaration" means the original shipping document containing the information as described in the Convention on Facilitation of International Maritime Traffic and the Convention on International Civil Aviation and, formats acceptable to the Minister in respect of other means of transport; 140 "cargo manifest" means a listing of all goods comprising the cargo carried by a means of transport or in a transport unit which gives the commercial particulars of goods, such as cargo declaration numbers, con~ignors, consignees, marks and numbers, number and kind .of packages, descriptions and quantities of goods; "carrier" means the person actually transporting goods or in charge of, or responsible for the operation of the conveyance; "carriage of goods coastwise" means the customs procedure by which goods are loaded on board a vessel at a place in The State of Eritrea, and are transported to another place in the State where they are unloaded; "certificate of origin" means the specified form identifying goods, in which the authority or body empowered to issue it certifies expressly that the goods to which the certificate relates originate in a specific country, and which may include a declaration by the manufacturer, producer, supplier, exporter or other competent person with knowledge concerning the origin of the goods; "clearance for home use" means customs procedures which provide that imported goods may remain permanently in The State of Eritrea and implies the payment of any duties and taxes and the fulfilment of all customs formalities; 141 " clearance of goods" means the fulfilment of customs formalities necessary to allow goods to be imported, exported, re-exported or to be replaced under another customs procedure; "container" means reusable transport unit or reusable equipment having an internal volume of one cubic meter or more and designed for the transport of goods by any means, without intermediate reloading; "container depot" means any area that is designated and granted a permit by the Minister for the deposit of imported containerized goods, pending release from custom control; "country" means the territory of a nation or state and unless the context otherwise requires, includes a dependent territory or country; "conveyance" means any motor vehicle, aircraft or water- borne craft or any other contrivance that 1s used to transport persons or goods; "Customs" means the Customs Department of the Ministry of Finance of the State of Eritrea; " customs clearing and forwarding agent" means a person who is the holder of a valid permit to act on behalf of an importer or exporter; 142 "customs control" means the measures applied to ensure compliance with the laws and regulations, which the Customs Department of the State of Eritrea is responsible for enforcing; " Customs office" means any place designated for the operation of customs business by the Minister; " customs procedure" means the treatment applied to goods which are subject to customs control; " Customs territory" means the territory in which the Customs law of the State of Eritrea applies in full; "Director General" means the Director General of the Customs Department; " drawback" means the amount of duties repaid or to be repaid under the Customs drawback procedure; "drawback procedure" means the Customs procedure which, w hen goods are exported or transferred to another Customs procedure, provides for a refund to be made in respect of the duties charged on articles or materials contained in those goods or used in their production; 143 "duties and taxes" means any aut1es or taxes levied on imported goods; "duty free shop" means a place granted a permit as a duty free shop by the Ministei, "exportation" means the aci of taking goods out of the territory of the State of Eritrea by any means including by way of pipeline; "exporter" means any person who undertakes exportation of goods; "export processing zone" means the area designated by the Miruster where processing operations are authorized for production of goods intended to be exported; "equivalent goods" means goods identical in description, quality and techrucal ch..aracteristics to those imported for inward processmg; "examination of goods" means the physical inspection of goods by the Customs to satisfy that the nature, origin, condition, quantity and value of the goods are in accordance 144 with the particulars furnished in the Goods Declaration, and includes baggage declarations by travelers; "forfeit" means forfeit to the Government of The State of Eritrea; "free trade zone" means an area designated by the competent authority of the Government of the State of Eritrea as a free trade zone; "goods" means any moveable property and includes stores, baggage, animals, conveyances, articles, materials, currency and includes postal items other than personal corresponde- nce; " Goods Declaration" means any statement or action, in any form prescribed or accepted by the Customs, giving information or particulars required by the Customs and includes declarations made through automatic data processing and communications techniques, and also includes action required by passengers under a self selection dual channel system; "Harmonized System" means the International Convention on the Harmonized Commodity Description and Coding System; "importation" means the act of bringing or causing any 145 goods to be brought into the territory of the State of Eritrea by any means including by way of pipeline. "importer" means any person who: (a) at the time of importation of the imported ggods, owns, carries the risk of , acts as owner of, or is beneficially interested in the goods; or (b) actually carries out the importation of the goods; "intellectual property rights" means the term as defined by the World Intellectual Property Organization; "inward processing" means the Customs procedure for the temporary admission of imported goods which shall be conditionally relieved from the payment of import duties and taxes pending the re-exportation of the goods within a specified period, after having undergone manufacturing, . . processing or repair; "Minister" means the Minister of Finance for the State of Eritrea, or a duly designated alternate; "officer" means a person appointed or employed to any position for the purpose of administering or enforcing this Proclamation; 146 " person" means both the naturaJ and legal persons; "prescribed" means prescribed by this Proclamation; "prohibited or restricted goods" means any goods of which the importation, exportation or coastwise carriage is prohibited or restricted by virtue of any law of the State of Eritrea; "Regulations" means regulations made by the Minister under this Proclamation; "re-importation in the same state" means the Customs procedure under which exported goods may be taken into home use free of import duties, provided that they have not undergone any manufacturing, processing or repairs abroad and any sums chargeable as a result of repayment or remission or of conditional relief from duties or of any subsidies granted at exportation must be paid; "release" means the action by the Customs to permit an importation undergoing clearance of goods to be placed at the disposal of the person concerned; "relief consignments" means goods such as vehicles and other means of transport, foodstuffs, medicaments, clothing, blankets, tents, prefabricated houses or other goods of prime necessity that may be approved by the 147 Minister, forwarded as aid to those affected by natural disast er or other catastrophe; "security" means a cash deposit or a legal obligation, generally a bond, which ensures to the satisfaction of the Customs that an obligation to the Customs will be fulfilled; ··smuggling" is an allegation used to describe a contravention of this Proclamation that occurs when a person intentionally evades the payment of duties by bringing dutiable goods into Eritrea without declaration at Customs or deliberately brings goods into Eritrea which are prohibited, controlled or regulated under any law of the State of Eritrea, without . declaration at Customs. " State of E ritrea" means all geographic land territory, airspace, territorial waters of Eritrea and includes any Customs waters that may be designated by the Minister; "stores" means goods for use in aircraft, ships or trains engaged in international transport including fuel, lubricants, spare parts and equipment, goods for consumption by passengers and crew, and goods for sale to the passengers of vessels and aircraft with a view to being landed; "temporary admission" means the Customs procedure under which certain goods can be brought into the State of Eritrea conditionally relieved from payment of duties so long as the 148 goods are imported for a specific purpose and must be intended for re-exportat10n withm a specified period, and without having undergone any change except normal depreciation; "transit" means the customs procedure under which imported goods ,. p transported under customs control from one Customs office to another; "transshipment" means the Customs procedure under which imported goods are transferred under Customs control from the importing means of transport to the exporting means of transport within the area of one Customs office which is the office of both the importation and exportation; "value for duty" means the value of the goods as it would be determined in accordance with this Proclamation; "vessel" means any ship, dredge, scow, yacht, boat or other water-borne craft, and includes: (a) any floating submersible or semi-submersible st'llcture such as a dock, caisson, pontoon, coffer-dam, production platform, drilling ship, drilling barge, drilling rig, jack-up drilling ship, jack-up drilling platform or other drilling platform: and 149 (b) any combination of any water-borne craft, floating submersible or semi-submersible structure whether or not self-propelled, assembled or unassembled; and " warehouse" means any premises owned by the State of Eritrea or other person that is granted a permit by the Minister for the deposit and security of imported/exported goods, or for ensuring compliance with any law in respect of such goods, pending release under a Customs procedure. PART I Administration and Application of the Proclamation

  9. 4. Minister's responsibility for the administration of the Customs Proclamation The Minister shall be responsible for carrying out the provisions of this Proclamation. The administration of this Proclamation shall be reviewed on a permanent basis by a committee of the State of Eritrea as may be designated or established for that purpose.

  10. 5. Administration of the Customs Proclamation by the Customs Department There shall be a Customs Department under the direction and control of a Director General to administer the provisions of 150 this Proclamation and the Director General shall report to the Minister and shall be accountable for the administration of the Proclamation.

  11. 6. Authority to designate Customs offices and establish their standards ( 1) The Minister may designate by Regulations Customs offices for a specified purpose or generally for business relating to Customs along with the hours of operation and may at any time amend, cancel or reinstate any such designation. (2) The owner, occupier or operator of any railway operating internationally, any airport, wharf or dock that receives conveyances operating internationally and in respect of which a customs office is designated under sub-article (I) of this Article shall provide, equip and maintain free of charge to the Customs adequate buildings, accommodation or other facilities for the proper detention and examination of imported and exported goods or for the proper and dignified search of persons by Customs officers. (3) The Minister may by Regulations: (a) establish criteria for any facility provided pursuant to sub-article (2) of this Article; 151 (b) post or cause to be posted on or about such facilities such signs as considered appropriate for the safe use of the facilities or for the enforceme1;t of any law relating to the importation or exportation of goods or the international movement of persons; (c) on thirty days' written notice to the owner, occupier or operator of the premises require such improve- ments considered necessary to any premises provided pursuant to sub-article (2) of this Article, for which the owner, occupier or operator is liable for any costs, and (d) continue to use such facilities for as long a period of time as required, and no person may interfere with any of the rights set out in this sub-article.

  12. 7. Administration of the Customs Proclamation (I) The powers conferred and the duties imposed upon the Minister and Director General by or under the provisions of this Proclamation may be exercised or performed by either personally, or by an officer engaged in carrying out the provisions of this Proclamation under the control, direction or supervision of the Minister and Director General. 152 (2) Subject to the laws governing the Public Service of the State of Eritrea, officers exercisi ng their duties under this Proclamation shall be under the control, direction or supervision of the Minister and Director General.

  13. 8. Conflict of interest No officer shall directly benefit from information derived in the course of performing official duties.

  14. 9. Secrecy and disclosure of information (I) For the purposes of this Article, "official" means any person in the employ of the State of Eritrea, or any person formerly so employed or formerly occupying a position therein. (2) Except as authorized in sub-article (3) of this Article, no official shall: (a) knowingly communicate or allow to be communicated to any person any information obtained by or on behalf of the Minister for the purposes of this Proclamation; or (b) knowingly allow any person to inspect or have access to any book, record, writing or other document or a copy thereof, obtained by or on behalf of the Minister for the purposes of this Proclamation . 153 (3) An officer may communicate or allow to be communicated information obtained under this Proclamation, or allow inspection of or access to any book, record, writing or other document to: (a) any officer or any person employed in the Ministry of Finance; (b) any person that the Minister may authorize, subject to such conditions as the Minister may specify; or ( c) any person otherwise legally entitled, including giving evidence on the order of a court or to the tribunal appointed under Article 37 hereof (4) The provisions of sub-article (2) of this Article shall apply to any person provided with information or access to books, records, writing or other documents under sub-article (3) of this Article. (5) Any person who contravenes sub-article (2) of this Article shall be guilty of a criminal offense, and the court may sentence the defendant to a definite term of imprisonment of up to 180 days and may impose a fine .,. of up to 2,000 Nakfas. 154

  15. 10. Authority to exchange information nationally and internationally ( I) Article 9 hereof shall not prevent the Miruster or the Director General from: (a) using any information obtained in the exercise of powers or the performance of duties under this Proclamation for the purposes of administering any other fiscal law; (b) disclosing such information to any other tax authority upon being satisfied that it is required for the prevention or combating the evasion of any tax, duty or levy imposed under any fiscal law; or (c) disclosing such information on the request of foreign investigative bodies or Governments pursuant to international agreements or conventions that the State of Eritrea, Ministry of Finance or the Customs Department may be signatories, provided that the Minister or Director General are satisfied that such information will be used for the prevention or combating the evasion of any tax, duty or levy or other illegal activity. (2) The provisions of Article 9( 1) hereof shall apply to any person provided with information pursuant to sub-article (I) of this Article. 155

  16. 11. Public information The Minister or Director General shall ensure that all relevant information regarding the requirements, obligations and administration of this Proclamation is readily available to any interested person.

  17. 12. Application of the Proclamation Subject to this Proclamation and the Regulations, any of the powers, duties or functions established under this Proclamation or the Regulations relating to the importation of goods may be carried out inside the State of Eritrea, or where they do not conflict with the laws of another country, inside that other country and may be carried out before or after an importation. PART II Reporting of imported and exported goods

  18. 13. Reporting of goods ( 1) AU goods that are imported or exported shall be conveyed to the nearest Customs office that is open for business and reported in such a manner and under such conditions and with such exceptions as may be prescribed by the Minister by Regulations. (2) Goods imported or exported into or from the State of 156

  19. 11. Public information The Minister or Director General shall ensure that all relevant info rmation regarding the requirements, obligations and administration of this Proclamation is readily available to any interested person.

  20. 12. Application of the Proclamation Subject to this Proclamation and th e Regulations, any of the powers, duties or functi ons established under this Proclamation or the Regulations relating to the im portation of goods may be carried out inside the State of Eritrea, or where they do not confli ct with the laws of another country, inside that other country and may be carried out before or after an importation. PART II Reporting of imported and exported goods

  21. 13. Repo,·ting of goods ( I) All goods that are imported or ex.po11ed shall be conveyed to the nearest Customs office that is open for business and reported in such a manner and under such conditions and with such exceptions as may be prescribed by the Minister by Regulations ( 2) Goods import ed or export ed into 0 1 from the State or '· ntr<'c. ~hall be reported under ~u n-a111cle (I) of till:, Art.cle (a) m the case of goods 111 1he actual possession of a persor: ,m 1vm~ 111 the State of Eritrea or that fo rm p 111 of 1he lnQg:ige v1i1ere \ he person ,rnd baggage a··e hc111g earned on board the same conveyance, by 1 l•at pc1 :;on, (b) in th~ ca ..c uf 0 oods, ()ther 11!,~11 goods referred tu 111 par:igraph (al, on hoard a conveyance arriving or deparung tr.c ..;ta!: of ~1 itrea, by the person in char f,o.'! of u·,e ::..onve_ance, and (c) in any other case, by the importer or exporter as defineci in Article 3 hereof (3) Thi s A111cl e doe. not apply in resµccl of goods on boa rd a conveya nce that enter the ternto1ial waters or the airspace over the State of Eritrea while it is proceeding direct ly from one place outside the State or· Eritrea to another place outside unless circumstances require the conveyance to land in Eritrea wherein the provisions of sub-article (I) of this Article take precedence. (4) The rcpor1 under sub-anicle (I) of this Article shall be made in writing, or another medium, in a manner prescribed by the Minister and contain such information 157 and supporting documentation that is satisfactory to the Minister. (5) Every person repo rtin8 goods shall answer truthfully any question asked by a Customs officer with respect to the goods; and, where an officer so requests, present the goods to the officer, remove any covering from the goods, unload the conveyance or open any part thereof, or open or unpack any bag, package or container that the officer wishes to examine. ( 6) No person shall unload goods from a conveyance arriving in the State of Eritrea until the goods have been reported to Customs in accordance with this Article except for safety reasons or the threat of fire, collision, the stress of weather or other similar circumstances or in such circumstances as may be prescribed by the Minister. (7) Where a conveyance is unloaded pursuant to sub-article (6) of this Article, the report required by this Article shall be made immediately to the nearest Customs office.

  22. 14. Authority to J}rescribe forms and required information The Minister may require by Regulations any information to be given on a form that is by this Proclamation or the Regulations to be prescribed and he may include on any 158 form so prescribed a declaration, to be signed by the person completing the form, that the information given on the fom1 is true, accurate and complete.

  23. 15. Customs release and the Goods Declaration ( 1) Imported goods may be transferred directly in bond under Customs control from a Customs office, transit warehouse or container depot to : (a) another Customs office; (b) a warehouse; ( c) a transit warehouse or container depot for transshipment; ( d) a Customs bonded warehouse; (e) a duty free shop; (f) an export processing zone or free trade zone; or such goods may be re-exported. (2) Goods shall not be released from Customs control until: (a) the importer or exporter has lodged a Goods Declaration pertaining to the goods by giving, 159 sending or transmitting electronically such declaration to a Customs offi ce in the form, manner and time period as .he Minister may prescribe through Regulations, and any duties have been paid; or (b) the importer or exporter has made prior arrangements to post security and lodge a Goods Declaration and pay any duty 0 .1 the goods subsequent to release from Customs, in a form and manner prescribed by the Minister through Regulations, and ( c) if the importation or exportation of the goods is subject to restriction, the conditions pertaining to the restriction have been satisfied. (3) Imported or exported goods may be released from Custo ms control (a) prior to their arrival in or departure from the territory of the State of Eritrea, or (b) upon their arrival in or departure from the territory of the State of Eritrea; under such conditions as may be established by the Director General. (4) The Goods Declaration shall be completed in full by the 160 importer or ex porter and shall indicate the Customs procedure to be applied to the goods, and shall furni sh the particulars of the goods required by an officer for the application of that procedure. (5) A Goods Declaration shall be lodged w hen the goods are for: (a) use or consumption in the State of Eritrea, if so eligible; (b) re-importation; (c) expo11ation; (d) transit or transshipment: (e) bonded warehousing or duty free shops; (t) use in an export processing zone o r free trade zone; (g) inward o r outward processing; or (h) temporary admission for subsequent re-exportatio n. (6 ) The person lodging a Goods Declaration under this Article shal l tru thfully ans\,·er all questio ns as may be ask ed b\' an n nicer 161 (7) The Minister may prescribe Regulations concerning postal items, which postal items shall be produced by the Post Office to an officer at importation or exportation. (8) The Minister may establish a special Goods Declaration procedure for low-value importations and may set and adjust the value threshold that shall apply. (9) It shall be the responsibility of the importer, exporter or Customs clearing and forwarding agent to accurately classify goods according to the nomenclature of the Harmonized System, identify duty rates, report values, calculate duties, complete all accounting extensions and supply all prescribed documents and information on Goods Declarations.

  24. 16. Classification of imported and exported goods ln lodging a Goods Declaration pursuant to Article 15 hereof, the importer or exporter shall determine and declare the classification subheading for the imported or exported goods under the nomenclature of the Harmonized System as provided under the Schedules of the Customs Tariff Regulations. 162 PART Ill .. Valuation, Origin of Goods and Calculation of Duty

  25. 17. Duties based on percentage rates Where duties or taxes levied are imposed on goods at a percentage rate (ad valorem rates of duty), such duties shall be calculated by applying the rate to a value determined in accordance with Articles 19- 28 hereof provided the methods of calculation have been fully implemented by the State of Eritrea pursuant to acceptance of the methods in the order specified by acceding to an international agreement establishing those methods, otherwise sub-article 33(2) applies_

  26. 18. Definitions (I) In this Article and Articles 19-28 hereof: "computed value" in respect of goods, means the value of the goods determined in accordance with Article 25 ; "country of export" in respect of goods, means the country from whi ch the goods are shipped directly to the State of Eritrea; "deductive value" in respect of goods, means the valu e 163 of the goods determined in accordance with Article 24(2); "goods of the same class or kind", in relation to goods being appraised, means imported goods that: (a) are within a group or range of imported goods produced by a particu lar industry or industry sector that includes identical goods and similar goods in relation to the goods being appraised; and (b) for the purpose of: (i) Article 24, were produced in any country and exported from any country; (ii) Article 25, were produced in and exported from the same country as the country in and from which the goods being appraised were produced and expo11ed; "identical goods" in relation to goods being appraised, means import goods that: (a) are the same in all respects, including physical 164 characteristics, quality and reputation, as the goods being appraised, except for minor differences in appearance that do not affect the value of the goods, (b) were produced in the same country as the country in which the goods being appraised were produced; and ( c) were produced by or on behalf of the person by or on behalf of whom the goods being appraised were produced, but does not include imported goods where engineering, development work, art in the State of Eritrea were supplied, directly or indirectly, by the purchaser of those imported goods free of charge or at a reduced cost for use in connection with the production and sale for export of those imported goods; "price paid or payable", in respect of the sale of goods for export to the State of Eritrea, means the aggregate of all payments made or to be made, directly or indirectly, in respect of the goods by the purchaser to or for the benefit of the vendor; "produce" includes grow, manufacture and mine; 165 "purchaser in the State of Eritrea" has the meaning assigned by the Regulations; "similar goods", in relation to goods being appraised, means imported goods that: (a) closely resemble the goods being appraised in respect of their component materials and characteristics; (b) are capable of performing the same functions ~s, and of being commercially interchangeable with, the goods being appraised; ( c) were produced in the same country as the country in which the goods being appraised were produced ; and ( d) were produced by o r on behalf of the person by or on behalf of whom the goods being appraised were produced , but does not include imported goods where engineering, development work, art work, design work, plans or sketches undertaken in the State of Eritrea were supplied, directly or indirectly, by the purchaser of those imported goods free of charge or at a reduced cost for use 166 -in connection with the production and sale for export of those imported goods, "sufficient information", in respect of the determin- ation of any amount, difference or adjustment, means objective and quantifiable information that establishes the accuracy of the amount, difference or adjustment: and "transaction value" , in respect of goods, means the value of the goods determined in accordance with Article 2 1(4) hereof (2) For the purposes of this Article and Articles 19-28 hereof: where there are no identical goods or similar goods, as the case may be, in relation to goods being appraised but there are goods that would be identical goods or similar goods, as the case may be, if they were produced by or on behalf of the person by or on behalf of whom the goods being appraised were produced, those goods shall be deemed to be identical goods or similar goods, as the case may be (3) For the purposes of Articles 19-28 hereof persons are related to each other if': 167 (a) they are individuals connected by blood relationship, marriage or adoption ; (b) one 1s an offi cer or di1ector of the other; (c) each such person is an officer or director of the same two corporations, associations, partner- ships or other organizations; (cl) they are partners in a partnership; ( e) one is the employer of the other, (t) they directly or indirectly control or are controlled by the same person. (g) one directly or indirectly controls or is controlled by the other, (h) any other person directly or indirectly owns. holds or controls ten percent or more of the outstanding voting stock or shares of each such person: or (i) one directly or indirectly O\\ ns, holds or controls ten per cent or more of the outstanding voting ~toe!-. 01 shares nfthe other lh8

  27. 19. Determination of value for duty The value for duty of imported goods shall be determined in accordance with Articles 20-28 hereof.

  28. 20. Order of consideration of methods of valuation ( 1) The value for duty of goods shall be appraised on the basis of the transaction value of the goods in accordance with conditions set out in Article 21 hereof. (2) Where the value for duty of goods is not appraised in accordance with sub-article (1) of this Article, it shall be appraised on the basis of the first of the following values, considered in the order set out herein, that can be determined in respect of the goods and that can, under Articles 22-25 hereof, be the basis on which the value for duty of the goods is appraised: (a) the transaction value of identical goods that meets the requirements set out in Article 22 hereof; (b) the transaction value of similar goods that meets the requirements set out in Article 23 hereof; ( c) the deductive value of the goods; and (d) the computed value of the goods. (3) Notwithstanding sub-article(2) of this Article, on the 169 written request of the importer of any goods being appraised lodged with the Director General made prior to the commencement of the appraisal of those goods, the order of consideration of the values referred to in sub-article (2)(c) and (d) of this Article shall be reversed. (4) Where the value for duty of goods is not appraised on the basis of any of the values referred to in sub-article 2(a)-(d) of this Article, the value for duty of those goods shall be appraised under Article 26 hereof

  29. 21. Transaction value of the goods (1) Subject to the provisions of sub-articles (6) and (7) of this Article, the value for duty of goods is the transaction value of the goods if the goods are sold for export to the State of Eritrea to a purchaser in the State of Eritrea and the price paid or payable for the goods can be determined and: (a) there are no restrictions respecting the disposition or use of the goods by the purchaser thereof, other than restrictions that: (i) are imposed by law; (ii) limit the geographical area in which the goods may be resold; or 170 (iii) do not sub. tantially affect the value of the goods; (b) the sale of the goods by the vendor to the purchaser or the price paid or payable for the goods is not subject to some condition or consideration, with respect to the goods, in respect of which a value .. cannot be determined; (c) where any part of the proceeds of any subsequent resale, disposal or use of the goods by the purchaser thereof is to accrue, directly or indirectly, to the vendor, the price paid or payable for the goods includes the value of that part of the proceeds or such price is adjusted in accordance with sub-article (5)(a)(v) of this Article; and ( d) the purchaser and the vendor of the goods are not related to each other at the time the goods are sold for export or, where the purchaser and the vendor are related to each other at that time: (i) their relationship did not influence the price paid or payable for the goods: or (ii) the importer of the goods demonstrates that the transaction value of the goods meets the requirement set out in sub-article (3) of this Article. 171 (2) In the application of sub-article ( I )(d) of this Article, where the purchaser and the vendor of goods being appraised are related to each other at the time the goods are sold for export and the officer who is appraising the value for duty of the goods has reasona- ble grounds to believe that the requirement set out in sub-article( I )(d)(i) of this Article, is not met, the officer shall notify the importer of the goods of such grounds and , on the written request of the importer, the officer shall notify the importer in writing. (3) For the purposes of sub-article (l)(d)(ii) of this Article, the transaction value of goods being appraised shall, taking into consideration any relevant factors including such factors and differences as may be prescribed, closely approximate one of the following values that is in respect of identical goods or similar goods exported at the same or substantially the same time as the goods being appraised and is the value for duty of the goods to which it relates: (a) the transaction value of identical goods or similar goods in a sale of those goods for export to the State of Eritrea between a vendor and purchaser who are not related to each other at the time of the sale, (b) the deductive value of identical goods or simi lar goods: or 17'.2 (c) the computed value of identical goods or similar goods. (4) The transaction value of goods shall be determined by ascertainmg the price paid or payable for the goods when the goods are sold for export to the State of Eritrea, and adjusting the price paid or payable m accordance with sub-article (5) of this Article. (5) The price paid or payable in the sale of goods for export to the State of Eritrea shall be adjusted· (a) by adding thereto amounts, to tbe extent that each such amount is not already included in the price paid or payable for the goods, equal to· (i) commissions and brokerage in respect of the goods incurred by the purchaser thereof, other than fees paid or payable by the purchaser to any agent for the service of representing the purchaser abroad in respect of the sale; (ii) the packing costs and charges incurred by the purchaser in respect of the goods, including the cost of cartons, cases and other containers and coverings that are treated for customs purposes as being part of the goods and all expenses of packing incident to placing the goods in the 173 condition in which they are shipped to the State of Eritrea; and (iii) the value of any of the following goods and services, determined in the manner prescribed by the Minister by Regulations, that are supplied, directly or indirectly, by purchaser of the good free of charge or at a reduced cost for use in connection with the production and sale for export of the goods, apportioned to the goods in a reasonable manner and in accordance with generally accepted accounting principles: (a) materials, components, parts and other goods incorporated in the goods; (b) tools, dies, molds and other goods utilized in the production of the goods; (c) any material consumed in the production of the imported goods; and (d) engineering, development work, art work, design work, plans and sketches undertaken elsewhere than in the State of Eritrea and necessary for the production of the goods; 174 (iv) royalties and license fees, including payments for patents, trade-marks and copyrights, in respect of the goods that the purchaser of the goods must pay, directly or indirectly, as a condition of the sale of the goods for export to the State of Eritrea, exclusive of charges for the right to reproduce the goods in the State of Eritrea; ( v) the value of any part of the proceeds of any subsequent resale, disposal or use of the goods by the purchaser thereof that accrues or is to accrue, directly or indirectly, to the vendor; and ( vi) the cost of transportation of, the loading, unloading and handling charges and other charges and expenses associated with the transportation of, and the cost of insurance relating to the transportation of, the goods to the place within the country of export form which the goods are shipped directly to the State of Eritrea; (b) by deducting therefrom amounts, to the extent that each such amount is included in the price paid or payable for the goods, equal to any of the following costs, charges or expenses if the cost, charge or 175 expense is identified separately from the price paid or payable for the goods: (i) any reasonable cost, charge or expense that is incurred for the construction, erection, assembly or maintenance of, or technical assistance provided in respect of, the goods after the goods are imported; (ii) any duties and taxes paid or payable by reason of the importation of the goods or sale of the goods in the State of Eritrea, including, without limiting the generality of the foregoing, any duties or taxes levied on the goods under any Proclamation or any other law relating to Customs; and (c) by disregarding any rebate of, or other decrease in, the price paid or payable for the goods that is effected after the goods are imported. (6) Where there is no sufficient information to determine any of the amounts required to be added to the price paid or payable in respect of any goods being appraised, the value 176 for duty of the goods shall not be appraised under this Article. (7) Where an officer who is appraising the value for duty of goods believes on reasonable grounds that the information submitted in support of the transaction value of the goods as determined under sub-article (4) of this Article is inaccurate, the officer shall determine, in accordance with the procedure prescribed by Regulations, that the value for duty of the goods shaJI not be appraised under this Article.

  30. 22. Transaction value of identical goods ( 1) Subject to the provisions of sub-articles (2)-(5) of this Article, where the value for duty of goods is not appraised under Article 21 hereof, the value for duty of the goods is, if it can be determined, the transaction value of identical goods, in a sale of those goods for export to the State of Eritrea, if that transaction value is the value for duty of the identical goods and the identical goods were exported at the same or substantially the same time as the goods being appraised and were sold under the following conditions: (a) to a purchaser at the same or substantially the same trade level as the purchaser of the goods being appraised: and 177 (b) in the same or substantially the same quantities as the goods being appraised. (2) Where the value for duty of goods being appraised cannot be determined under sub-article (I) of this Article because identical goods were not sold under the conditions described in sub-article (I) ( a) and (b) of this Article, there shall be substituted therefor, in the application of sub-article (I) of this Article, identical goods sold under any of the following conditions: (a) to a purchaser at the same or substantially the same trade level as the purchaser of the goods being . appraised but in quantities different from the quantities in which those goods were sold; (b) to a purchaser at a trade level different from that of the purchaser of the goods being appraised but in the same or substantially the same quantities as the quantities in which those goods were sold; or ( c) to a purchaser at a trade level different from that of the purchaser of the goods being appraised and in quantities different from the quantities in which those goods were sold. 178 (3) For the purposes of detennining the value for dut y of goods being appraised under sub-article (I) of this Article , the transaction value of identical goods shall be adjusted by adding thereto or deducting therefrom as the case may be, amounts to account for: (a) commercially significant differences between the costs, charges and expenses referred to in Article 21 (S)(a)(vi) hereof in respect of the identical goods and those costs, charges and expenses in respect of the goods being appraised that are attributable to differences in distances and modes of transport; and (b) where the transaction value is in respect of identical goods sold under the conditions described in sub- article (2) (a)-(c) of this Article, differences in the trade levels of the purchasers of the identical goods and the goods being appraised, or the quantities in which the identical goods and the goods being appraised were sold or both, as the case may be. (4) Where there is no sufficient information to determine any amount referred to in sub-article (3) of this Article or the adjustment therefor in relation to the transaction value of identical goods, the value for duty of the goods being appraised shall not be appraised on the basis of that transactio n value under this Article. 179 (5) Where, in relation to goods being appraised, there are t\\O or more transaction \·alues of identical goods that meet all the requirements set out in sub-articles (I) and (3) of this Article or, where there is no such transaction value but there are two or more transaction values of identical goods sold under any of the conditions described in sub- article (2)(a)-(c) of this Article that meet all the require- ments set out in this Article that are applicable by virtue of sub-article (2) of this Article, the value for duty of the goods being appraised shall be determined on the basis of the lowest such transaction value.

  31. 23. Transaction value of similar goods (I) Subject to the provisions of sub-article (2) of this Article, where the value for duty of goods is not appraised under Article 21 or 22 hereof, the value for duty of the goods is, if it can be determined, the transaction value of similar goods, in a sale of those goods for export to the State of Eritrea, if that transaction value is the value for duty of the similar goods and the similar goods were exported at the same or substantially the same time as the goods being appraised and were sold under the following conditions: (a) to a purchaser at the same or substantially the same trade level as the purchaser of the goods being appraised ; and 180 (b) in the same or substantially the same quantities as the goods being appraised. ( 2) The provisions of Article 22(2)-( 5) hereof apply to this Article in respect of similar goods and wherever in those sub-articles of Article 22 hereof the expression "identical goods" is referred to, there shall be substituted therefor the expression "similar goods" .

  32. 24. Deductive value (J) Subject to the provisions of sub-article (5) of this Article and Article 20(3) hereof, where the value for duty of goods is not appraised under Articles 21-23 hereof, the value for duty of the goods is the deductive value of the goods if it can be determined. (2) The deductive value of goods being appraised is: (a) where the goods being appraised, identical goods or simjlar goods are sold in the State of Eritrea in the condition in which they were imported at the same or substantially the same time as the time of importation of the goods being appraised, the price per unit, determined in accordance with sub-article (3) and adjusted in accordance with sub-artide (4) of this Article, at which the greatest number of units of 181 the goods being appraised, identicaJ goods or similar goods are so sold; (b) where the goods being appraised, identical goods or similar goods are not sold in the State of Eritrea in the circumstances described in ( a) of this sub-article but are sold in the State of Eritrea in the condition in which they were imported before the expiration of ninety days after the time of importation of the goods being appraised, the price per unit, determined in accordance with sub-article (3) of this Article and adjusted in accordance with sub-article ( 4) of this Article, at which the greatest number of units of the goods being appraised, identical goods or similar goods are so sold at the earliest date after the time of importation of the goods being appraised; or (c) where the goods being appraised, identical goods or similar goods are not sold in the State of Eritrea in the circumstances described in ( a) or (b) of this sub- article but the goods being appraised, after being assembled, packaged or further processed in the State of Eritrea for sale before the expiration of one hundred and eighty days after the time of importation thereof and the importer of the goods 182 being appraised requests that this sub-article be applied in the determination of the value for duty of those goods, the price per unit, determined in accordance with sub-article (3) of this Article and adjusted in accordance with sub-article (4) of this Article, at which the greatest number of units of the goods being appraised are so sold. (3) For the purposes of sub-article (2) of this Article, the price per unit, in respect of goods being appraised, identical goods or similar goods, shall be determined by ascertaining the unit price, in respect of sales of the goods at the first trade level after importation thereof to persons who: (a) are not related to the persons from whom they buy the goods at the time the goods are sold to them; and (b) have not supplied, directly or indirectly, free of charge or at a reduced cost for use in connection with the production and sale for export of the goods any of the goods or services referred to in Article 21(5)(a)(iii) hereof, at which the greatest number of units of the goods is sold where, in the opinion of the Minister or any person authorized by him, a sufficient number of such sales have been made to 183 permit a determination of the price per unit of the goods. (4) For the purposes of sub-article (2) of this Article, the price per unit, in respect of goods being appraised, identical goods or similar goods, shall be adjusted by deducting therefrom an amount equal to the aggregate of: (a) an amount, determined in the manner prescribed by Regulations, equal to: (i) the amount of commission generally earned on a unit basis; or (ii) the amount for profit and general expenses, including all costs of marketing the goods, considered together as a whole, that is generally reflected on a unit basis in connection with sales in the State of Eritrea of goods of the same class or kind as those goods; (b) the costs, charges and expenses in respect of the transportation and insurance of the goods within the State of Eritrea and the costs, charges and expenses associated therewith that are generally incurred in connection with sales in the State of Eritrea of the goods being appraised, identical goods or similar 184 goods, to the extent that an amount for such costs, charges and expenses is not deducted in respect of general expenses under paragraph (a) of this sub- article; ( c) the costs, charges and expenses referred to in Article 21 ( 5)(b)(i) hereof, incurred in respect of the goods, to the extent that an amount for such costs, charges and expenses is not deducted in respect of general expenses under paragraph (a) of this sub-article; ( d) any duties and taxes referred to in Article 21 ( 5)(b)(ii) in respect of the goods, to the extent that an amount for such duties and taxes is not deducted in respect of general expenses under paragraph (a) of this sub-article; and (e) where sub-article (2)(c) of this Article applies, the amount of the value added to the goods that is attributable to the assembly, packaging or further processing in the State of Eritrea of the goods. (5) Where there is no sufficient information to determine an amount referred to in sub-article (4)(e) of this Article in respect of any goods being appraised, the value for duty of the goods shall not be appraised under sub- article (2)(c) of this Article. 185 (6) For the purposes of this Article, "time of impo,tation" means, in respect of goods, the date on which an officer authorizes, pursuant to this Proclamation, the release of the goods.

  33. 25. Computed value (1) Subject to the provisions of Article 20(3) hereof, where the value for duty of goods is not appraised under Articles 21-24 hereof, the value for duty of the goods is the computed value of the goods if it can be determined . (2) The computed value of goods being appraised is the aggregate amount equal to: (a) subject to the provisions of sub-article (3) of this Article, the costs, charges and expenses incurred in respect of, or the value of: (i) materials employed in producing the goods being appraised; (ii) the production or other processing of the goods being appraised, determined in the manner prescribed by Regulations; and (b) the amount, determined in the manner prescribed by 186 Regulations, for profit and general expenses considered together as a whole, that is generally reflected in sales for export to the State of Eritrea of goods of the same class or kind as the goods being appraised made by producers in the country of export . (3) Without limiting the generality of sub-art icle (2)(a) of this Article, the costs, charges, expenses and value referred to in that paragraph include : (a) the costs, charges and expenses referred to in Article 21 (S)(a)(ii) hereof; (b) the value of any of the goods and services referred to in Article 21 (S) (a)(iii) hereof, determined and apportioned to the goods being appraised as referred to therein, whether or not such goods and services have been supplied free of charge or at a reduced cost; and ( c) the costs, charges and expenses incurred by the producer in respect of engineering, development work, art work. design work, plans or sketches undertaken in the State of Eritrea that were supplied, directly or indirectly, by the purchaser of the goods 187 being appraised for use in connection with the production and sale for export of those goods, apportioned to the goods being appraised as referred to in Article 21 (5)(a)(iii) hereof. ( 4) For the purposes of this Article, "general expenses" means the direct and indirect costs, charges and expenses of producing and selling goods for export, other than the costs, charges and expenses referred to in sub-article (2)(a) and sub-article (3) of this Article.

  34. 26. Residual method of appraisal Where the value for duty of goods is not appraised under Articles 21 -25 hereof, it shall be appraised on the basis of: (a) a value derived from the method, from among the methods of valuation set out in Articles 21-25 thereof, that, when applied in a flexible manner to the extent necessary to arrive at a value for duty of the goods, conforms closer to the requirements with respect to that method than any other method so applied; and (b) information available in the State of Eritrea or other sources acceptable to the Minister. 188

  35. 27.General For the purposes of Articles 19-29 hereof, where goods are exported to the State of Eritrea from any country but pass in transit through another country, the goods shall, subject to such terms and conditions as may be prescribed by the Minister by Regulations, be deemed to be shipped directly to the State of Eritrea from the first mentioned country under the conditions contained in Article 3 I hereof.

  36. 28. Value for duty in the currency of the State of Eritrea The value for duty of imported goods shall be computed in Nakfa.

  37. 29. Informing importer of determination of value The importer of any goods, on a written request to the Director General, shall be informed in writing of the manner in which the value for duty of the goods was determined.

  38. 30. Duties Based on Specific Quantities or Specific Values Where duties are imposed on goods according to a specific quantity or a specific value, such duties shall be deemed to apply in the same proportion to any larger or smaller quantity or value, and to any fractional part of such specific quantity or value.

  39. 31. Origin of imported and exported goods (I) The country of origin of imported or exported goods shall be determined to apply: 189 (a) the respective rates of duties and taxes; (b) any restrictions as to quantity, weight or numbers on the importation of goods into the State of Eritrea; or ( c) any other measures relating to the importation or exportation of goods into or from the State of Eritrea. (2) ln lodging a Goods Declaration pursuant to Article 15 hereof, the importer, exporter or owner of the goods shall determine and declare the country of origin of the goods according to the criteria described in this Article. (3) The country of origin of goods refers to the country in which the goods have been grown, produced or manufactured and shall be determined according to the rules of origin under sub-articles (4) and (5) of this Article. (4) Goods produced wholly in a given country shall be taken as originating in that country such goods to include: (a) mineral product s extracted from its soil, from its territorial waters or from its seabed; · (b) vegetable products harvested or gathered in that country; 190 (c) live animals bo rn and raised in that country and products therefrom; ( d) products obtained by hunting or fishing in that country; (e) products obtained by maritime fishing or taken from the sea within the territorial waters of that country; (f) products obtained from a factory ship solely from the products of paragraph ( e) of this sub-article while operating w ithin the territorial waters of that country; (g) products extracted from the soil or subsoil of that country' s territorial waters, provided that the country has rig hts to work that soil or subsoil; (h) scrap and waste from manufacturing and processing operations, and used articles, collected in that country and fit only for the recovery of materials, raw or otherwise; and (i) goods produced in that country solely fro m the products referred to in paragraphs (a)-(h) of this sub- article. (5) Where goods have been produced in part, in two or more countries: 19 1 (a) the goods may be deemed to originate in the country in which the goods were fini shed in the form in which the goods are imported into the State of Eritrea; or (b) the origin may be determined according to substantial transformation criteria. (6) ln determining the origin of imported goods under sub- article (5) (b) of this Article, the conditions relating to substantial transformation may be defined by the Minister by Regulations, or through bilateral or multilateral agreements with other States or organizations to which the State of Eritrea may be signatory. (7) Documentary evidence of origin may be required for the application of preferential duties and taxes, for trade measures adopted unilaterally by the State of Eritrea, or under bilateral or multilateral agreements with other States or organizations, or for measures adopted for reasons of public health or public order. (8) Documentary evidence of origin shall be a declaration by the exporter in the form of a certificate of origin as prescribed by the Minister by Regulations.

  40. 32. Calculation of duty on imported or ex-warehoused goods (I) In all cases where duty shall be paid, the value for duty 192 shall be the value in local currency based on the prevailing exchange rate in respect of the foreign currency value on the date the Goods Declaration is submitted and in the case of removals from bonded warehouse, the value shall be in the foreign currency at the time of importation converted to local currency at the prevailing exchange rate at the time the goods are ex-warehoused. (2) Where duties are imposed on imported or ex- warehoused goods at a percentage rate, the duties shall be calculated by applying the rate accorded the goods under the schedules to the Customs Tariff Regulations, to the value determined in accordance with this Proclamation. (3) Where the duties are imposed on imported or ex- warehoused goods under schedules to the Customs Tariff Regulations according to a specific quantity or a specific value, such duties shall be deemed to apply in the same proportion to any larger or smaller quantity or value, and to any fractional part of such specific quantity or value. 193 PART IV Determinations, Re-determinations and Appeals

  41. 33. Determinations of tariff classification and value for dut v (I) An officer shall make the final determination on the tariff classification and apprai se the value for duty of imported goods, based on the information declared by the importer, at any time before the goods are released from Customs control and accounted for under thi s Proclamation. (2) Unless the State of Eritrea has accepted valuation of imported goods procedures according to any internati onal agreement, the Director General may direct that the determination of value for duty by officers be determined in accordance with Articles 2 1- 28 hereof; but in any order rather than the order specified in Article 20 hereof.

  42. 34. Re-determinations bv Customs (1) An officer may at any time within three years of the date of Customs release of the goods from Customs control, re-determine the tariff classification, the value for duty or the country of origin of such goods. (2) Formal notice in writing of a re-determination under 194 sub-article (I) of this Article shall be given, sent or transmitted to the importer, stating the reasons for the re-determination and whether the importer is assessed additional duties and taxes. (3) Any additional duties and taxes assessed shall be paid by the importer within thirty days of the date of the formal notice. (4) Where an officer does not make a re-determination under sub-article (l) of this Article, the original determination by the importer of the tariff classification, value for duty or country of origin of the imported goods shall be final unless the determination by the importer was made on the basis of false evidence or negligent or fraudulent action by the importer or other person.

  43. 35. Appeal against a re-determination (I) The importer who is aggrieved by a re-determination by an officer shall have recourse of appeal to the Mini ster in such manner and under such conditions as the Minister may prescribe by Regulations, but in any event no appeal shall be entertained unless any outstanding assessment or a deposit equal to the assessment has been paid. (2) An appeal under sub-art icle (I) of this Article shall be 195 lodged in writing within thirty days of the date of the delivery of the formal notice of re-determination, and shall state the grounds on which it is being made, along with any necessary supporting evidence. (3) The importer shall be permitted to withdraw an appeal at any stage of the process.

  44. 36. Minister's decision (I) The Minister shall give, as soon as possible but within three months, the decision upon the appeal and shall give the reasons if the appeal is dismissed. (2) ln cases where the Minister decides in favor of the appellant, the Director General shall put the decision into effect as soon as possible, including the refund of any duties and taxes which shall be paid within ninety days of the date of the decision. (3) In cases where a decision on an appeal is not made within three months of the date of the appeal, unless the Minister gives prior notice to the importer in writing that an extension is required, which may not exceed six months, along with the reasons for and the duration of the extension, the appeal shall be deemed decided in favor of the appellant. 196

  45. 37. Appeal to a Tri bunal and the Hight Court (I) The Minister shall appoint an independent International Tribunal to consider appeals to decisions by the 1inister in respect of re-determinations pursuant to Article 35 hereof. (2) An appeal to the Internati onal Tribu nal establi shed by sub-a11icle ( I ) or this Article,sha ll be made ,vithin ninety days of the decision by the Minister. (3) A party aggrieved by a decision of the International Tribunal may appeal to the High Court within sixty (60) days from the date of the decision of the former. The decision of the High Court shall be final and binding. PARTY Refund of Duty, Payment and Recovery of Duty

  46. 38. Authorized reasons for a refund (I) The Minister may grant'a refund of all or part of the du ti es and ta:--cs pai·cl py the impo11er, where: (a) the good s have suffered damage, deterioration or destruction at am· time from the point of shipment to the State of Eritrea, to the time of release from Customs control; (b) the goods have suffered a loss in volume or weight arising from natural causes while in a Customs bonded warehouse or other location authorized by Customs and the importer paid duty on those goods before such loss was taken into account; (c) the actual quantity released by Customs is the same quantity reported by the transportation company to Customs but less than the quantity declared on the Goods Declaration; (d) the goods released are of a verifiable inferior quality to the quality declared on the Goods Declaration; or (e) duties and taxes on goods have been paid. or overpaid in error for any reason. (2) Remnants of goods provided for under sub-a11icle ( I )(a) of this Article may be: (a) declared for home use in their existing state as if they had been imported in that state: (b) re-expo11ed: 198 (c} abandoned free of all c:-;pcnses to Custom::- (d) destroyed . under Customs control, v,ithout anv. expense to Customs. (3) \\'here imported postal items or items imported b~· courier are not deli,·ered or are refused by the addressee, remission of duties and ta:-;es shall be granted prn, ided that the goods are. (a) re-exported: or (b) destroyed under Customs control or abandoned to Customs, without any expense to Customs (4) No refund or remission shall be granted under sub-article (I) of this Article unless the irnporter rnaking the clai m: (a) alford s an offi cer reasonable opportunity to examine the goods in respect nl'v,hich the claim is made or to otherwise verify the claim; and (b) submits a ,..,rittcn application of claim to an ofticer in a manner prescribed b,· the Minister within ninety da>·s frorn the date of the receipt of the Goods Declaratit111, and pnn-ides reason for the claim. I <)l)

  47. 39. Pavmcnt and rccovcrv of duty (I) An impo11er may aggregate impo11 dutie. and ta'\es owed on more than one consignment and may lodge a Goods Declaration on a periodic basis for all con ignments in that period, provided that sufficient security is posted as prescribed by the Minister by Regulations. (2) Customs clearing and forNarding agents may aggregate import duties and taxes owed under more than one consignment or one importer' s account, and may pay those duties and taxes at or before a specified closing time for the receipt of funds on the day the goods were so declared, as prescribed by the Regulations. (3) Any amount of duties, taxes or penalty payable in terms of this Proclamation shall, when it becomes due or payable, be a debt due to the State of Eritrea and shall be recoverable by the Minister in the following manner: (a) if any person fails to pay any duties, taxes or penalty payable, when it becomes due or payable and notice thereof was duly given to such person. the Minister may: (i) subject any goods imported or reported for exportation on behalf of that person to a lien for 200 the amount payable_ and detain those goods at the expense of that person until such amount is paid; and (ii) on giving thirty days notice by registered mail or by electronic transmi ssion to that person, direct that any goods imported or reported for exportation by or on behalf of that person which have been detained under the proceeding paragraph, be offered for sale, public auction or public tender; or (iii) file a claim with any competent court setting out the amount due or payable by that person; (b) the Minister may institute proceedings for the sequestration of the estate of any person and shall for the purposes of such proceedings be deemed to be a principal creditor in accordance with the laws of Eritrea in respect of any duties, taxes or penalty payable by such person under the provisions of this Proclamation. (4) 1otwithstanding any provision contained in any other Proclamation or law of the State of Eritrea. a claim for an~· amount whatsoever may be filed in terms of sub- article (J)(a)(iii) or this Article " ·ith any court of competent jurisdiction in respect of the person b~, whom 201 such amount is payable in accordance \\ ith Lhe provisions of this Proclamation. (5) Should any person recei ve a repayment of duties or taxes by way of refund or drawback to which that person is not entitled under thi s Proclamation, the amount repaid shall immediately become a debt due to the State or Eritrea in accordance with sub-article (J)of this Article (6) Where a person is indebted to the State or Eritrea under this Proclamation, the Minister may require the retenLion by way of deduction or set-off of such amount as the DirecLor General may specify out of any amount that may become payable to such person by the Department. PART VI Transportation of Goods

  48. 40. Direct shipment to the State of Eritrea ( I) For the purposes of this Proclamation, goods are shipped directly to the State of Eritrea from another country \vhcn the goods are coll\·eyed on a through Bill or Lading from an exporter located in the w unLry or export tn a cn11sig11t·c in the St,i'tc or Eritrea (2) For the purposes of this Proclamation, whe,c goods arc e,ported to the State ul' Eritrea from any' wun lry but are transshipped in an>· intermediate count r'.' . the goods shall be deemed to ha, e been shipped directly to the State of Eritrea from the e,porting country if: (a) the goods remain under Customs control in the i111ermediatc cou nt ry , (b) the goods do not undergo any operation or processing in the intermediate countty other than unloading, reloading, spliuing up or consolidating or londs, or any operations required to keep the goods in proper or good co ndition; (c) the goods do not enter into trade or consumption in the intermediate country. and (d) the original Bill or Lading provisions of sub-article ( I ) of th is Arti cle remnin in force and are not altered 1n any way. -t I. Coastwise c;1 rriage (I) The conveyance by ship or ,·essel between any coastal ports or the State of Eritrea ::.hall be deemed to be coast\\ 1se traflic and all , esscls in such traflic shall be deemed ·10 be coasting \'Csscls (2) A loreign-dc,tined vessel may also carry coastwise go()ds '" hile on a rnyage between ports in the State of Eritrea subject to the Regulations relating to such goods as may be issued by the Minister. (3) When goods are to be transported by a foreign-destined vessel pursuant to sub-article (2) of this Article under coastwi se carriage procedure, before they are loaded on such a vessel. the master or other person concerned shall present a cargo manifest or an addendum to it giving details of the vessel, listing the domestic goods, imported goods and transit goods to be carried under this procedure, and stating the Customs offices at which they will be declared. (4) Once the cargo manifest or addendum referred to in sub-article (3} of this Article is endorsed by an officer, it shall constitute the authority for the conveyance of the goods under the coast wise carriage of goods procedure. (5) For the purposes of this proclamation. any goods landed from any vessel under this procedure in the State of Eritrea shall only land at a Customs office, and any goods so landed shall be deemed to be imported goods upon which duties and taxes have not been paid, until the contrary is proven to an officer. :?.04 ---

  49. 42. Stores (I) Any goods for use by or retail sale to persons on a vessel or aircraft engaged in international transport arriving in or departing the territory of the State of Eritrea, including medicines, tobacco products, beer, wines and spirits, fuel, lubricants, spare pa11s and other equipment whether or not for immediate fitting or use on the conveyance, shall be treated for the purposes of this Proclamation and the Customs Tariff Regulations as stores, and as such, shall be exempt from payment of duties and taxes under such, conditions and under such Customs control as the Minister may direct by Regulations. (2) Any goods for consumption by or sale to passengers or crew shall be exempt from import duties and taxes, provided they remain on board the vessel or aircraft on a direct international voyage, and provided the quantities of such stores are deemed reasonable, having regard for the number of passengers and crew and the length of any stay in the State of Eritrea. (3) Where any vessel or aircraft undergoes repairs in the State of Eritrea, any stores shall be sealed under Customs control and prohibited from sale or consumption unless import duties and taxes have first been paid, such prohibition to be lifted immediately prior to departure on a direct international voyage to a foreign port 205 (4) The requirement for a Goods Declaration for all consumable or salable stores and medicines shall be waived provided a stores declaration is accurately maintained on board the conveyance for verification by an officer.

  50. 43. Conditions for stores privileges in international transport (I) Stores on board a vessel or aircraft used solely in international transport arriving in the territory of the State of Eritrea shall be allowed: (a) to be cleared for home use or to be placed under another Customs procedure, subject to compliance with the relevant conditions; or (b) subject to prior authorization from an officer, to be transferred to other vessels or aircraft under the control of the same operator or company engaged in international transport. (2) An officer may, from time to time, take stock of stores on board any vessel or aircraft at any time, and after permitting quantities to be issued, place the remainder under Customs seal. (3) Foodstuffs, non-alcoholic beverages, beer, wines and spirits imported as provisions on any international train shall be exempt from import duties and ta:xe provided that: 206 (a) such goods are pu rchased only in the cou nt ries entered during the international journey; (b) any internal duties and taxes and any import dut ,es and taxes chargeable in the country where the goods were purchased have been paid; (c) the consumption of such goods on an international train shall not involve the repayment of duties and taxes or the granting of all or part of any of the advantages all owed in respect of exportati on; (d) such goods shall be sold solely for the purpose of consumption on board the train. the sale for taking away being prohibited; and (e) the quantities of such goods shall not exceed the normal provision for one complete outward or inward Journey.

  51. 44. Stores privileges for departing vessels and aircraft Vessels and aircraft which depart form the territory of the State of Eritrea fo r a foreign destination shall be entitled to take on board, free of import duties and taxes: (a) stores for consumption by the passengers and crew and for retail sale on board after departure from the State of 207 Eritrea. and such stores 111ay be tal-:en av,ay in sul'11 quantities as an officer deems reasonable. having regard to the nu111ber or passengers and ere\, and the quantit~ already on board, and (h) stores for consu111ption necessary for operation and maintenance of the \'essel or aircraft

  52. 45. Trans it and tnrnsshipm ent (I) Where imported goods are declared for transit or transshi pment, the Minister may allow the goods to be removed under Customs control for that purpose \\ ithout pay111ent of import duties and taxes. subject to cond itions, restrictions and time limits which may be imposed by the Minister through Regulations. (2) Goods declared under Customs transi t shal l not be subject to the payment of impon duties and taxes, provided the goods are transported under Customs control and the carrier posts security in a form and in an amount accept- able to the Mi nister: (a) from a Customs onice of entry into the State or Eritrea to a Customs office of exit from the State of Eritrea (through transit); (b) from a Customs office of entry into the State of Eritrea to an inland Customs office (in\,ard transit) 208 (c) from an inland Customs office to a Customs office of exit (outward transit); or (d) from one inland Customs office to another inland Customs office (interior transit). (3) Upon filing the Goods Declaration for goods under the transit procedure, the person shall be responsible for compliance with the obligations incurred under this procedure; in particular the person shall ensure that the goods are produced intact at the Customs office of destination in accordance with the conditions imposed by the Minister pursuant to sub-article ( 1) of this Article. ( 4) Goods declared under the transshipment procedure shall not be subject to the payment of import duties and taxes provided the transportation company or operator of a conveyance responsible for the goods complies with the conditions imposed by the Minister pursuant to sub- article (I) of this Article.

  53. 46. Prohibited and restricted imports and expor·ts (I) The importation into the State of Eritrea, the exportation from the State of Eritrea, the storage or transportation of certain goods as specified in the Customs Tariff Regulations or other laws of the State of Eritrea shall be 209 prohibited and any goods in contravention of this sub- article shall be seized (2) The importation into the State of Eritrea, the expo11ation from the State of Eritrea, the storage or transportation or certain goods as specified in the Customs Tariff Regula- tions or other laws of the State of Eritrea shall be prohibi- ted unless the importer or exporter obtains the required permit, license, certificate or other document from the concerned authority that is validly in force at the relevant time and any goods imported without such documentation shall be detained pending compliance, and ultimately seized if the documentation is not supplied within 30 days. (3 The costs associated with the seizure, detention, storage and disposal of good pursuant to this Article shall rest with the owner of such goods and/or with the operator of the conveyance of the goods, and any such costs incurred by the Customs may be recovered by the Director General in a court of competent jurisdiction. 210 PART VII Warehouses, Duty Free Shops, Container Depots and Designated Areas

  54. 47. Minister' s powers to issue permits and designate areas ( 1) The Minister may issue a permit to any person qualified under such Regulations as prescribed by the Minister for the operation of any place as: (a) a transit warehouse or container depot for the temporary storage and examination of imported goods that have not been released from Customs control; (b) a Custo ms bonded warehouse fo r the storage of imported goods that have not been released from Customs control or are destined for exportation; (c) a Customs bonded warehouse fo r the storage of stores, spares and equipment for conveyances used in international transport, or ( d) duty free shop for the sale of goods free of duties and taxes le\·ied on goods pursuant to this Proclamation or any other law of the State of Eritrea, to persons lea,·ing the territory of the State of Eritrea or to 211 persons enteri ng the terri tory of the State of Erit rea or entitled to diplomatic pri vileges, as the case may be; and the Min ister may specify or restrict the type or classes of goods that may be received therei n or the circumstances in whi ch the goods may be received therein, and in no case shall any such goods be approved for warehousing pursuant to paragraphs (b), (c) and (d) of this sub-article which may not be accurately verifi ed by an officer according to model, make, numbers of contain- ers or packages, volume or identifyi ng numbers. (2) The Minister may. subject to the Regulations, amend, suspend, renew, cancel or reinstate an authority for a permit issued under sub-article ( I) of this Article, and fo r any suspension or cancellation any outstanding dutie and taxes are immediately payable under such cond itions as the Mini ster may prescribe. (3) Any goods which upon their importatio n are declared fo r impo11ation into a Customs bonded warehouse pu rsuant to sub-article ( I )(b) of thi Article shal l be allowed to be wa rehoused without payment of duti es and taxes for a maximum period of one year from the date of release to a bonded ,, a rehouse by an offi cer. 2 12 (--1 ) The opcrawr or any duty free shop issued a permit pursuant to sub-a rt icle ( I)(d) of this .A11icle shall ensure that the prices o r goods offered fo r sale refl ect the duty and ta, free status of the goods and at a time prescribed by the \ lin ,stcr but not less than yea rly. provide the i\ lini ster \\ ith a complete listing of all goods o ffered fo r Sa le including the cost of the goods and the proposed sel ling price (5) The operator of any warehouse, container depot or dut>' free shop shal l. at the request of an officer. g rant free accc~s to the\\ a rehouse. container depot or duty free shop including any ofli ces. or place under the contro l of the operator that is attached to the premises. to open any package nr cont ai ner of goods therein or remove any covering to inspect the goods. and shall provide such ofli cer assistance as 111ay be required . o that the officer may take sa mples in order to determine proper tariff of the \\ cl rchouse, container depot or duty free sho p. (6 ) Good s in a bonded wa rehouse or duty i'rce shop shall be allowed to undergo usual form s of handling to imp rove their pac kaging or marketable qua lity or to pre pare them for shipm ent. such as breaking bulk. g rouping of pack- ages. so r1ing and grading. or any o perati on necessary lo r presen·ation of the good~. hu t none ol'thc alt) remc- ntioncd acti, ities shall alter thl' method L) !' swring t he goods so that an o nicer may inspect or aud it the goods in the bonded warehouse or duty free shop according to information on the Goods Declaration.

  55. 48. Li ability for duties and taxes rests with the operator ( l) T he operator of a transit warehouse, contai ner depot, bonded warehouse or duty free shop shall be immediately liable for all duties and taxes levied under this Proclamation or any other law of the State of Eritrea pertaining to Customs on goods that have been received therein, unless the operator can prove to the satisfaction of an officer that the goods are still in t he transit warehouse, container depot, bonded warehouse or duty free shop, have been declared and accounted for pursuant to Article 15 hereof, o r have been otherwise released by an oflicer. (2) The rates of duties payable on goods under sub-article ( I )of this Article shall be (a) where goods have been received in a transit warehouse or container depot, the rates app licable to such goods at the time they are declared under Article 15 hereof: and (b) \vhere the goods ha,·e been received in a Customs bonded ""a rehouse or duty free shop, in the case of missing goods the rates applicable at the time the goods were declared for such purpose and entered therein, and in the case of goods lawfully removed from the bonded warehouse or duty free shop for consumption in the State of Eritrea, the rate applicable on the date of Customs release.

  56. 49. Minister may issue Regulations The Minister may issue Regulations: (a) prescribing qualifications as to the citizenship, integrity, financial condition, residency or any other qualification or condition that the Minister deems relevant that must be met by an operator or associates in order to apply for a permit for a transit warehouse, container depot, container bank, bonded warehouse, duty free shop or any temporary facility for storing imported goods that have not been released from Customs control; (b) prescribing the terms and conditions under which a permit may be granted , including the security or standing deposit that may be required of operators, the duration of such permits and the fees, if any, to be paid to Customs for the privilege of operating the facilities mentioned in parag raph ( a) of this Article; (c) prescribing the circumstances in \\ hich such permits may be issued, amended, suspended. renewed, canceled or re- instated along with any penalties for negligence or contravention of the Regulations on the part of the operator; ( d) establishing the standards for transit warehouses, container depots, bonded warehouses, duty free shops and temporary storage facilities, such standards to include location, space, offices, equipment and security of these facilities ; ( e) prescribing the records to be kept by operators, the location and the organization of such records, the retention period and providing for the free access to the premises and records by an officer; (f) prescribing the manner in which operators wi ll acknowledge receipt of goods into transit warehouses, container depots, bonded warehouses and duty free shops; (g) establishing the extent, circum tances and guidelines relating to the manipulation, unpacking, repackaging, alteration or the combination of goods with other goods while in transit warehouses, container depots, bonded warehouses or duty free shops; 216 (h) prescribing the quality of facilities, space for officers and the type and numbers of equipment that must be provided by the operator at transit warehouses, container depots, bonded warehouses and duty free shops; (i) prescribing the circumstances under w hich any operator may refuse goods for safekeeping; and (j) prescribing the circumstances governing the transfer of ownership of goods in transit warehouses, container depots, bo nded wareho uses o r duty free shops. PART VIII Temporary Admission

  57. 50. Temporary admission Regulations and diversions The Minist er may prescribe R egulatio ns fo r the temporary admission of goods subj ect to their exportatio n in the same state with co nditional relief from duties and taxes, including the conditio ns pertaining to : (a) prior authorizatio n that may be required fo r the admission of certain goods; (b) the form and amount in which security may be required for the temporary admission of certain goods, taking into 217 account the duration of their stay in the State of Eritrea, the depreciation consequent of their use or the hire charges paid fo r them; (c) the use of AT A Carnets and other forms required to declare the temporary admission of goods; (d) the duration of the temporary admission period for specific goods; and (e) the type and number of goods that qualify for temporary admission and the conditions that apply. 5 l. Remissions The Minister may prescribe the procedure by Regulations for the remission of any duties and taxes exempted in whole or in part of any person or class of persons so entitled under the provisions of this Proclamation and any other proclamation or regulations of the State of Eritrea.

  58. 52. Duties on goods sold ( 1) Subject to any Regulations made under Articles 50 and 51 hereof, where imported goods have been released free of duty or at a reduced rate of duty and are to be sold or otherwise disposed of to a person who was not entitled to any or as great an exemption, the person who 2 18 imported or otherwise acqu ired the goods shall pay all applicable duties and taxes prior to transferring ownership of the goods. (2) Any duties or additional duties applicable on the goods shall be equal to the amount of duties and taxes that would be payable on similar goods imported in like condition at the time of the sale or other disposition minus the amount of duty, if any, already paid in respect of the goods.

  59. 53. Duti es on goods diverted to other use ( I) Subject to any Regulations issued under A11icles 50-52 hereof, where imported goods have been released free of duty or at a reduced rate of duty and are diverted to a use other than that for which they were released, the person who diverted the goods: (a) shall, immediately report the diversion to an officer at a Customs office and account fo r the goods in the prescribed manner and in the prescribed fo rm conta- inng the prescribed info rmati on; and (b) shall be, from the time of the diversion. liable to pay as duties or additional duties on the goods an amount equal to the amount of duties that wou ld be payable on similar goods imported in like condition at the time of the di,·ersion at a rate of duty equal lo 2 19 (i) the rate of duty applicable to like goods at the time of the diversion; minus (ii ) the rate of duty appli ed in calculating the duties, if any, al ready paid in respect of the goods. (2) An offi cer may seize any goods or vehicles that have been di verted as smuggled goods where the provi sions of sub-article ( I )(b) of th is Article have not been observed. PART IX Drawbacks and Outward Processing

  60. 54. Draw back ( 1) A drawback of duties paid may be paid in respect of: (a) imported goods subsequently exported in the same condition as imported within a hundred and eighty ( 180) days of the importation; (b) imported goods used in, wrought into or attached to goods manufactured or produced in the State of Eritrea and subsequently exported; 220 (c) imported material, other than fuel or plant equipment, directly consumed or expended in the manufacture or production in the State of Eritrea of goods that are subsequently exported; ( d) imported goods, where the same quantity of domestic or imported goods of the same class or kind is used in, wrought into or attached to goods manufactured or produced in the State of Eritrea and subsequently exported; or (e) imported materials, other than fuel or plant eq uipment, where the same quantity of domestic or imported materials of the same class or kind is directly consumed or expended in the manufacture or production in the State of Eritrea of goods that are subsequently exported. (2) For the purposes of sub-article ( 1) of this Article, goods shall also be deemed to be exported if they are: (a) placed in a bonded warehouse, duty free sho p, export processing zone, free trade zone or other facility approved by the Minister for direct export, (b) designated as stores and supplied for use on board a conveyance used in international transport , or 22 1 (c) used or destined for use in such manner as may be prescribed by the Minister (3) An application for drawoock for qualifying goods under this Article shall be made in such form and manner and under such conditions as may be prescribed by the Minister by Regulations within one year of the Goods Declaration lodged under Article 15 hereof for the imported goods and materials. (4) No drawback shall be granted under this Article unless the person applying for the drawback provides such documentary evidence in support of the application as may be prescribed by the Minister. (5) The amount of drawback that is granted under this Article shall be reduced by an amount ascertained in such manner as may be determined by the Minister where: (a) marketable scrap, waste or by-product result from any process in respect of goods used in, wrought into or attached to goods manufactured or produced in the State of Eritrea, or in respect of material_s consumed or expended in the manufacture or production of goods; and 222 (b) marketable scrap, waste or by-product result from a process referred to in paragraph (a) of this sub- article.

  61. 55. Partial remission on outward processing (I) A partial remission from import duties and taxes shall be granted in respect of goods re-imported into the State .o f Eritrea within one year of their exportation where a temporary exportation for outward processing has been lodged under such Regulations and conditions as the Minister may prescribe, where: (a) the returned goods were repaired outside of the State of Eritrea after being exported for the express purpose of repairs, and where such repairs could not have been undertaken in the State of Eritrea; (b) equipment or other goods were added to the exported goods outside of the State of Eritrea that could not be added within the State of Eritrea; or (c) processing or manufacturing was done on the returned goods outside of the State of Eritrea and the good s exported were the product of, and originated in the State of Eritrea. 223 (2) For the purposes of sub-article ( I) of this Article, the portion of import duties and taxes in respect of which remission is granted shall be determined by subtracting from the amount of duties and taxes that, but for this Article would be payable, the amount of duties and taxes other than the duties and taxes that would apply on the cost of: (a) the repairs outside the Sta te of Eritrea, where sub- article ( I )(a) of this Article applies; (b) the equipment or other goods added and related work done outside the State of Eritrea, where sub-articl e ( I )(b) of this Article applies; or (c) the processing or manufacturing done outside the State of Eritrea, where sub-article (I)( c)of this A11icle, applies (3) Pursuant to sub-article (I) or (2) of this Article, upon re- importation, an exporter shall lodge a Goods Declaration containing the particulars needed to permit discharge of the temporary exportation for outward processing that was requested at the time of exportation. (4) The procedure for the temporary exportation for outward processing may be terminated by the exporter concerned by lodging a Goods Declaration for outright export for the exported goods, subject to any condition or restriction in respect of the exported goods. (5) The total remission from import duties and taxes shall be granted in respect of an aircraft, vessel, train or convey- ance re-imported into the State of Eritrea after exporta- tion where the returned aircraft, vessel, train or convey- ance was repaired outside of the State of Eritrea as a result of an emergency occurring outside of the State of Eritrea, and the repairs were necessary to ensure a safe return to the State of Eritrea.

  62. 56. Re - importation in the same state ( I) Goods that are re-impo11ed into the State or Eritrea in the same state as they were at the time of export from the State of Eritrea shall be entitled to re-entry free of import duties and taxes and to re-payment of any expo11 duties a11d taxes paid on exportation, provid ed that: (a) the goods have not undergone any manufacturing, processing or repairs while outside the State of Eritrea; (b) the re-imported goods can be identified by an officer as the goods that were exported; 225 (c) that any amounts chargeable as a result of any repayment or remission oC or co nditional relief from any duties and taxes or any subsidies or other amounts granted at exportation, are paid; and (d) re-importation occurs no longer than one year subsequent to the time of exportation. (2) Re-importation of goods in the same state shall be allowed even if on ly part of the exported goods is re- imported subject to sub-article ( I )(b) of this Article. (3) Re-importation in the same state shall not be refused on the grounds that the goods have been used or damaged, or have deteriorated in any way. PARTX Trade Promotion Programs Inward processing

  63. 57. Relief from pavrnent of duties and taxes ( 1) The Minister may issue Regulations granting relief from the payment of duties and taxes pursuant to this Article in respect of: .. 226 (a) imported goods used in, wrought into or attached to specified goods processed in the State of Eritrea and subsequently exported without being used in the State of E ritrea for any purpose; or (b) imported materials, other than fuel or plant equipment, directly consumed or expended in the processing of specified goods in the State of Eritrea and subsequently exported without being used in the State of Eritrea fo r any purpose. (2) Relief from payment of duties and taxes shall not be granted on salable scrap, waste or by-products resulting from a process referred to in sub-article (I) of this Article, for goods where the usage cannot be accurately determined to the satisfaction of the Minister and for goods which cannot be exported or used in accordance w ith the provisions of sub-article (I )(a) of this Article, for reasons such as production overruns, goods not mad e to order, an diversions to home use in the State of Eritrea.

  64. 58. Application for relief from duties and taxes For the purposes of sub-article 57( 1) hereof, an application shall be: (a) made in the prescribed fo rm before o rdering of the arti cles 227 or materials by the person who will process the goods in the State of Eritrea that will be subsequently exported; (b) accompanied by evidence satisfactory to the Minister of: (i) an agreement for the sale and exportation from the State of E ritrea of those goods whose processing in the State of Eritrea will use or consume the imported articles or materials; (ii) an independent evaluation of the components of the goods to be processed so as to calculate with certainty the amount of imported goods or materials consumed or used in the processing of the exportable goods; (iii) a pattern of past sales and exportations, or contracts for future sales and exportations of goods from the State of Eritrea that would, if the pattern continu es, result in the sale and exportation from the State of Eritrea of the goods whose processing consumes or uses the imported articles or materials; and (c) accompanied by security fo r the performance of the processing of goods by the processor whose processing in the State of Eritrea will use or consume the articles or materials to be imported and for the exportation of those goods from the State of Eritrea. 228

  65. 59. Conditions for granting relief from duties and taxes Relief from duties and taxes granted in respect of the Impor- ted articles or materials under Article 57 hereof shall be subject to the conditions that the person using or consuming the imported articles or materials in the processing of exportable goods shall : (a) submit to the Minister such reconciliation reports and other information as are required for the due administration of Articles 55-57 hereof; (b) expo11 within one year from the date of the Customs release of the imported goods or materials to the processor, the goods the processing of which uses or consumes the imported articles or materials; ( c) at t he expense of the person, provide the Minister with an audit report with respect to all imported articles and materials used in the processing, such report to be in a format approved by the Minister and completed by a professionally recognized accounting or audit firm at intervals prescribed by the Minister; (d) not use or permit to be used for any purpose, other than exportation, the goods whose processing uses or consu- mes the imported articles or materials; and 229 (e) not remove, without the prior authority by an officer, any of the imported articles or materials or processed goods from premises approved by the Minister for the proces- sing activity.

  66. 60. Free trade zones and export processing zones (I) Free Trade Zones and Export Processing Zones may be established under Customs control pursuant to authority from the Government of the State of Eritrea for a developer to establish such zones and shall operate under such conditions as the Minister may establish by Regulations, but specifically: (a) access to a Free Trade Zone shall be provided for imported goods, free from payment of all duties and taxes for all goods entering the zone provided that: (i) in the case of a Commercial Free Trade Zone, operations shall be limited to those necessary for the preservation of imported goods and the usual form of handling to improve their packaging or marketable quality or to prepare them for sale and direct export; and (ii) in the case of an Industrial Free Trade Zone, operations shall be limited to processing and manufacturing of goods from articles or materials 230 imported and used or consumed in the processing or manufacturing of-goods for direct export; and (b) access to an Export Processing Zone shall be provided for imported goods, including articles and materials, used or consumed directly in the production of goods for direct export by a person or enterprise authorized to carry out that activity in the zone. (2) Access to a Free Trade Zone or Export Processing Zone shall be provided for imported goods that relate to the activity described in sub-article ( 1) of this Article free from payment of all duties and taxes, including: (a) all goods, articles and materials relating to the authorized activity, and in the construction of the facilities within the zone; (b) all capital equipment and machinery related to zone activities; (c) exemption from all import and export licensing requirements and other restrictions, other than those restrictions imposed on grounds of public morality or order, public security, public hygiene or health, or relating to the protection of patents, trade marks, copyrights and other intellectual property; and 231 ( d) exemptio n from all export controls, duties, taxes and o ther restrictions. (3) Goods imported into, o r produced in a Free Trade Zone or Export Processing Zone which are not exported, may be diverted, in extraordinary circumstances, to use, sale or other disposition in the State of Eritrea only on the prior approval of the Mini ster and o nly if the Minister decides that such diversion is in the public interest, and such goods shall be deemed for Customs purposes as goods imported from outside the territory of the State of Eritrea. (4) A Free Trade Zone or Export Processing Zone developer, enterprise o r operator, as the case may be, shall be responsible for: (a) lodging a Goods Declaratio n relating to the importation, or delivery on drawback of goods intended for delivery to a zone, maintaining all books and records o n all goods entered into, used in, and taken from a zone as the Minister may prescribe; (b) lodging a Goods Decl aratio n for home use o n all goods which are not exported from the State of Eritrea and meeting any obligatio ns with respect to ' 232 all restrictions and requirements pertaining to such imported or manufactured goods subject to the Minister' s approval pursuant to sub-article (3) of this Article; (c) lodging a Goods Declaration for export for all goods exported from a zone; (d) providi ng such office accommodation, signs, security and other faci lities as the Minister shall consider necessary for an officer to carry out the duties of Customs requi red within the zone; (e) providing suitable markings defining the area of the zone which is under the contro l of the developer, enterpri se or operator, and the other place or places approved by the Mini ster for persons or goods entering or leaving the zone; and (t) ensuring that goods shall not be brought into the zone except to an authorized developer, enterpri se or operator ') ' ,., - l _) PART XI Enforcement and Powers of Officers

  67. 61. Powers of search of the person (I) An officer may search: (a) any person who has arrived in the State of Eritrea; or (b) any person who is about to leave the State of Eritrea at any time prior to the person· s departure; if the officer suspects on reasonable grounds that the person has concealed on or about the person anythi ng in respect of which this Proclamation may be contraYened or about to be contravened, anything that would be evidence with respect to a contravention of this Proclamation or any goods the importation or exportation or which is prohibited or restricted under this Proclamation or other law of the State or Eritrea. (1) Pursuant to sub-a11iclc (I) of this Article, an officer may require a person to empty any pocket, handbag, wallet, purse, suitcase, tra,·cl bag and other such belongings, as a normal part of any examination in order to ensure compliance with this Proclamation and the Regulations or any other la" or the State 01· Ent rca. and such a 23 --1 requirement shall not be considered as part of a personal search, nor shall the patting of outer clothing to determine anything concealed beneath be considered a personal search for the purposes of this Proclamation. (3) An officer who is about to conduct a personal search of a person iWrsuant to sub-article (I) of this Article shall detain that person and immediately take that person before the most senior officer on duty at the Customs office or other place where the search is to take place. (4) The senior officer before whom a detained person is taken pursuant to sub-article (3) of this Article shall decide if reasonable grounds exist for the search and if so, direct the search, or if no reasonable grounds exist, discharge the person. (5) No person shall be searched or outer clothing patted by a person w ho is not of the same sex. (6) An officer may board and search any means or transport or conveyance entering the State of Eritrea to satisfy that all goods subject to a Customs procedure are duly reported in accordance with AI1icle 13 hereof and declared in accordance with Article 15 hereof, and may direct that the means of transport or the conveyance be moved to a Customs ofTtce or other suitable place for search. 21 5 (7) When conducting a search on a means of transport or conveyance pursuant to sub-article (6), an officer shall be assisted by the crew as directed by the officer. (8) An officer may, on entry of imported goods into the State of Eritrea, or at any time thereafter, cause to be opened any mail, package or container and take any samples in as small quantities as possible for examination, classification, valuation, testing or analysis in order to ascertain the duties payable, and those samples shall be dealt with as the Minister may direct. (9) For purposes of determining duties payable the characteri- stics of all goods in the consignment or part thereof shall be deemed to correspond to the nature of the sample taken by the officer. ( I0) An officer may examine any goods prior to the time of exportation to ensure compliance with this Proclamation or other laws of the State of Eritrea and may cause any mail, package or container to be opened and take such samples of such goods in the smallest quantity possible for verification purposes. ( I I) Goods that are impo11ed or about to be expo,1ed may be detained by an officer until the officer is satisfied that the goods have been dealt with according to this Proclama- tion or other la ws of the State of Eritrea that prohibits, 236 restricts or controls the importation or exportation of goods, and any Regulations made thereunder. ( 12) If it appears to an officer that any conveyance is about to depart for a destination outside the State of E ritrea in contravention of any of the provisions of this Proclama- tion or any other laws of the State of Eritrea, the officer may detain the conveyance until the circumstances are known. (1 3) An officer may, where it is believed on reasonable grounds that there has been a contravention of this Proclamation or Regulations or other laws of the State of Eritrea in respect of imported or exported goods, seize as forfeit: (a) the goods; (b) any conveyance that the officer believes on reasonable grounds was used in the transportation of such goods, whether at the time or after the contravention, and, where it may reasonably be concluded that the owner, operator and other person in charge of the conveyance had knowledge of the contravention; and ( c) any conveyance that has been altered by the owner or with his knowledge to deliberately conceal goods 237 from Customs detecti on or where goods are co ncealed within any tank, frame, paneling or engine part. ( 14) An officer may, where it is believed on reasonable grounds that this Proclamation or the Regulations or other laws of the State of Eritrea have been contravened, seize anything that the officer believes will be evidence in respect of the contravention, and the officer may make copies of any documents and correspondence, or may retain the originals. ( 15) ln the course of an investigation: (a) an officer may, without notice and at any time, pursuant to (b) of thi s sub-article, enter any premises in the State of Eritrea and make such examination and inquiry as the officer deems necessary, where there are reasonable grounds to suspect that any unreported, falsely reported, undeclared, or restricted or prohibited goods, or any goods which are in contravention of any provision of this Proclamation or Regulations are kept or concealed; (b) except in circumstances where the Criminal Procedure Code permits searches and seizures without a search warrant, an officer shall obtain a 238 search warrant from a court to search any building, receptacle or place and seize and remove such goods found to be in contravention of this Proclamation or Regulations along with any accounts, records, or correspondence pertaining to those goods; (c) an officer shall execute the search by day unless the court has specifically authorized execution of the search by night. ( d) an officer may, with such assistance deemed necessary, break open any door, window, lock, fastener, compartment or any other thing during the course of a search. (16) No accounts, books or records whether in manual or computerized form, that have been seized as evidence under this Proclamation or the Regulations shall be detained for a period of more than six months after the time of seizure of the accounts, books or records unless before that period: (a) the court is satisfied that a further period of detention is justified, such further period not to exceed one year; or (b) a judicial proceeding is instituted in which the accounts. books or records seized may be required 23<) ( 17) An officer may arrest any person who obstructs a lawful search or investigation, or who refuses a lawful request of an officer to have access to a premises, place or to goods stored therein. ( 18) An officer may call on other persons to assist in exercising any power of search, seizure, detention or arrest authorized under this Proclamation and any person so called on is authorized to exercise any such power. ( 19) No action relating to a seizure may be carried out by an officer after five years from the date of contravention of this Proclamation but any duties and taxes that have not been paid may be collected within the five years.

  68. 62. Offenses, Contraventions and Penalties (I) Every person who: (a) makes, or participates in or assents to making false or deceptive statements in a statement or answer made verbally or in writing pursuant to this Proclamation or Regulations; (b) to avoid compliance with this Proclamation or Regulations: (i) destroys, alters, mutilates, hides or disposes of records, documents or books of account ; 240 (ii) makes, participates in or assents to the making of, false or deceptive entries in records or books of account; (iii) omits, participates in or assents to the omission of a particular material from records or books of account; or (c) willfully, in any manner, evades or attempts to evade compliance with any provision of this Proclamation or attempts to evade duties under this Proclamation; shall be guilty of a criminal offense, and the court may impose a fine of up to 4000 Nakfas. (2) Every person who includes in any document used for the purpose of accounting under Article 15 hereof, or in any invoice a description of goods or amounts that does not correspond with the actual goods or amounts so described in order to circumvent any provision of this Proclamation or any other Proclamation or Regulation of the State of Eritrea shall be guilty of a criminal offense, and the court may impose a fine of up to 4000 Nakfas. (3) Every person who intentionally possesses, purchases, sells, exchanges or otherwise acquires or disposes of any imported goods in respect of which the provisions of this 241 Proclamation or any other law of the State of Eritrea that prohibits, restricts, controls or regulates the importation/ exportation of goods have been contravened shall be guilty of a criminal offense, and the court may sentence the defendant to a definite term of imprisonment of up to 180 days and may impose a fine of up to 2,000 Nakfas. (4) Every person who smuggles or attempts to smuggle into the State of Eritrea any goods subject to duties and taxes, or any goods the importation of which is prohibited, controlled, restricted or regulated by any law of the State of Eritrea shall be guilty of a criminal offense, and the court may sentence the defendant to a definite term of imprisonment of up to I year and may impose a fine of up to 5,000 Nakfas. (5) Every person, whether the importer, Customs clearing and forwarding agent or other person having an interest in the goods, who falsely describes, falsely values or falsely declares the quantity of imported goods in order to avoid payment of any duties and taxes shall be gui lty of a criminal offense, and the court may sentence the defendant to a definite term of imprisonment of up to 180 days and may impose a fine of up to 2,000 Nakfas. (6) Every person who intentionally withholds any original 141 document or invoice of a foreign supplier from the Customs that pertains to the value or quantity of imported goods shall be guilty of a criminal offense, and the court may impose a fine of up to 2000 Nakfas. (7) Every person who: (a) hinders, obstructs or assaults an officer in the lawful performance of duties; (b) refuses free access to an officer in the performance of his duties to any warehouse, container depot, or duty free shop including any offices or places under the control of an operator having a permit pursuant to this Proclamation or the Regulations; (c) willfully fails to comply with any lawful demand made by an officer in the lawful performance of duties; shall be guilty of a criminal offense, and the court may impose a fine of up to I000 Nakfas. (8) No person :;hall. wit hout lawful authority or excuse, the burden ofprm~r _)f wh ich lies on the person: (a) open or unpack. or c.1•.ise to be opened or unpacked, any container. conveyance or package of imported goods; 2-13 b) break or tamper with, or cause to be broken or tampered with, any seals, locks or fastenings that have been placed on goods, conveyances, bonded ware- houses, duty free shops or other area pursuant to this Proclamation or the Regulations; (c) fail to report imported or exported goods in accordanc with Article l 3 hereof; (d) unload goods prior to the report required under Article 13hereof; ( e) make an unauthorized removal of goods from a conveyance, transit warehouse, container depot, bonded warehouse, duty free shop or other Customs area; (f) deny access to an officer to any place where accounts, books, records and computers are kept pursuant to sub-article 67(4) hereof; and the person who commits any of the contraventions enumerated in paragraphs (a) - (t) of this sub-a11icle may be liable to a fine not to exceed 2000 Nakfas. (9) If at anytime after a conveyance has brought goods into the State of Eritrea and before a repo rt has been made in accordance with Article 13 hereof; 244 (a) bulk is broken; (b) any alteration is made in the stowage of any goods carried so as to facilitate the unloading before due report has been made; or (c) any thing is thrown overboard or any package or container is opened: the person in charge of a conveyance who commits any of the contraventions enumerated in paragraphs (a) - (c) of this sub-article and has no justification for doing so may be liable to a fine not to exceed 2000 Nakfas and the conveyance may be detained, on future occasion, until the amounts outstanding are paid. ( 10) Where a criminal offense or a contravention is committed by a natural person acting for or on behalf of a legal person, that legal person may be held liable for any monetary fines imposed in respect of the criminal offense or contravention. ( I I) Fines for contraventions shall be imposed by senior Customs officers. . Forfeiture of seized goods and conveyances (I) A written notice of seizure specifying the nature of the contravention shall be given to the person responsible for 245 anything seized and such seizure shall be subject to the reviews and appeals established by this Proclamation, and any goods or conveyances so seized are forfeit under this Proclamation: (a) from the time of the contravention of this Proclamation or the Regulations in respect of which the goods or conveyance were seized; or (b) in the case of a conveyance made use of in respect of goods where this Proclamation or the Regulations have been contravened, from the time of such use; and subject to the terms set out in this Proclamation, or prescribed by the Minister by Regulations where not set out in this Proclamation, may be returned to the rightful owner in accordance with sub-article (3) of this Article. (2) Where an officer believes on reasonable grounds that a person has contravened any of the provisions of this Proclamation or the Regulations in respect of any goods or conveyance, the officer may, if the goods or conveyance are not found or if the seizure thereof would be impractical, serve a notice of ascertained forfeiture on that person demanding payment in accordance with sub- article (3) of this Article as if the goods or conveyance were forfeited. 246 (3) Subject to sub-article (4) of this Article, forfeited goods or conveyances shall be released on payment: (a) in the case of smuggled goods ·which are not otherwise a prohibited importation into the State of Eritrea, of an amount not to exceed the value for duty purposes of the goods, plus any duties and taxes to be levied thereon at the rates applicable at the time the goods were introduced into the State of Eritrea~ (b) in the case of goods illegally removed from a bonded warehouse, duty free shop or authorized store, of an amount not to exceed the value for duty purposes of the goods, plus any duties and taxes to be levied thereon at the rates applicable at the time the goods were introduced into the bonded warehouse, duty free shop or authorized store; (c) in the case of falsely described or falsely valued goods which are not otherwise a prohibited importation into the State of Eritrea, of an amount not to exceed the value for duty purposes as_ determined by the Customs, which amount is in addition to any duties and taxes levied on the goods; or (d) in the case of conveyances used in the commission of an offense, of an amount not to exceed the value for 247 duty purposes of the goods smuggled in the conveyance; (4) Forfeited goods or conyeyances shall not be released: (a) where the goods or conveyances are required as evidence in any proceeding; (b) where the conveyance has been altered to deliberately conceal goods as specified in Article 61(16)(c) hereof; or (c) until any penalty imposed under sub-article (3) of this Article in respect of the conveyance has been paid in full. (5) The application of sub-articles ( 1)-(4)of this Article does not preclude the application of criminal penalty provisions of this Proclamation for the same conduct. (6) Under such terms as may be prescribed by the Minister by Regulations, security may be posted in lieu of actual payment to secure the release of seized goods and conveyances. (7) ln any proceedings before a court where a penalty is to be determined by reference to the value of the goods, the 248 value shall be established according to Articles 21-28 and 33(2) hereof (8) The Minister may prescribe the amount of any fine for any contravention of this Proclamation for which a penalty has not been specifically prescribed ·and of the Regulations.

  69. 64. Right of appeal in respect of seized goods and fines for contravention ( l) Any person implicated in a contravention of this Procla- mation or the Regulations where goods and/or conveyances have been seized shall have the right to appeal to the Minister within thirty days of the date of the notice of such seizure in a form and manner as prescribed in the Regulations, but in any event shall include all information to assist the Minister to make a decision in respect of the seizure. (2) Any person implicated in a contravention of this Proclamation or Regulations where a penalty of fine has been imposed, upon payment of the penalty and within thirty days of the date of the notice of such penalty, shall have the right to appeal to the Director General in a form and manner prescribed by the Regulations, but in any event shall include all information to assist the Director General to make a decision in respect of the penalty. 249 (3) Within sixty (60) days of the date of the decision in writing by the Minister or the Director General, any person may lodge a further appeal to the High Court. PART XII Customs Clearing and Forwarding Agents

  70. 65. Permits (1) Importers and exporters shall have the choice of transacting business of the importation, exportation, movement and storage of goods with Customs either directly or by designating a third party to act as a Customs clearing and forwarding agent. (2) An importer o r exporter that elects to do business shall not be treated less favorably, or be subject to more or less stringent requirements than those Customs procedures and transactions that are handled by Customs clearing and forwarding agents. (3) No person shall make entry of, or lodge a Goods Declaration on behalf of any importer or exporter, as the case may be, unless he holds a valid permit and license 250 as a Customs clearing and forwarding agent or in the employ of that importer or exporter and expressly assigned that responsibility. (4) The Minister may, by Regulation, establish the requirements and formalities for the qualifications of Customs clearing and forwarding agents, including the qualifications or conditions for citizenship, residency, financial solvency, conflict of interest, fuJI disclosure of company officers and investors, suitable office accomm- odations and knowledge of the laws, regulations and procedures relating to the importation and exportation of goods.

  71. 66. Liability of agents (1) Before any person is granted a permit as a Customs clearing and forwarding agent, such person shall post security with the Department in an amount and in such form as the Minister may prescribe by Regulations. (2) The Minister may at any time alter the form, nature or amount of any security. (3) A Customs clearing and forwarding agent may, at any time, be required to produce proof to a Customs officer of the right to transact business with Customs on behalf 251 - of another person; such proof shall be in a form as the Minister may prescribe. (4) Persons and their designated agents or representatives may be held jointly and severally liable for reporting imported and exported goods, lodgment of an accurate Goods Declaration and invoice for the relevant customs procedure, for payment of any duties and for any irregularities and for any penalties. PART XIII Accounts, Books and Records

  72. 67. Keeping accounts, books and records (1) Every person who imports or exports goods, or causes goods to be imported into, or exported from the State of Eritrea, for sale or for any industrial occupational, commercial, institutional or other use, and every person involved in the importation and exportation processes, including any warehousing or transportation, shall keep records in the State of Eritrea in the language and in such manner as the Minister may prescribe by Regulations. 252 (2) Records shall include all accounts, books and other records that pertain to the description, specifications, origin, ordering, purchase, costs, value. payment and di sposition of imported or exported goods, and sha ll, for purposes of this Proclamation, be kept for a period of five years from the date of the Goods Declaration and the importer or exporter shall, when an officer so requests, make the books and records avai lable to the offi cer and answer truthfully any questions posed by the officer in respect of any such goods. (3) Customs clearing and forwa rding agents shall retain, fo r a period of ten years, all records relating. to the importation and exportation of goods for inspection and audit by an officer to ensure that all functions have been carried out in a legal and responsible manner. (4) An officer may, at all reasonable times, enter any premises or place in the State of Eritrea where accounts. books, records and computers are kept pursuant to sub-articles ( I) through (3) of thi s Article and examine and audit such accounts, books, records and computer-stored information. (5) The chief offi cer or manager of any bank or other financial entity, or branch thereof, shall immediately comply with a request from an officer fo r financial information relating to any person or any import ation or exportation in the course of a lawfi.tl audit or investigation. (6) The Director General ma;,, for any purposes related to the admi ni stration and enforcement of thi s Proclamation. require the persons or entities referred to in sub-articles ( 1), (2). (3) and (5) of this Article to produce at a place specified and within the time specified, any documents in the custody of those persons or entities relating to the importation or exportation of goods. (7) All accounts, books or records referred to in sub-articles (I), (2), (3) and (5) of this Article may, after a peri od of three years, be recorded or copied by any electronic, photographic or other process appro,·ed by the Director General and kept in that form for the remainder of the specified period of retention so long as the manner of storage enables an officer to retrie,·e the information for the purpose of audit or investigation, and to verify the information on which a declaration of the amount of duties paid or payable was made. (8) Thi s Article has effect subject to any rule of law relating to privilege or the public intere::.t in relation to the production ot: or access to account s. records, books or computers. 25-1 PART XIV Unclaimed, abandoned, seized and forfeited goods

  73. 68. Unclaimed goods ( I) Goods that have not been removed from a warehouse, Customs office, bonded warehouse, duty free shop or other Customs designated area within such period of time as may be prescribed by the Minister by Regulations shall be deposited by an officer in a place of safekeeping designated by the Director General for that purpose. (2) The Minister may extend the period of time prescribed pursuant to sub-article ( I) of this Article in respect of any particular class of goods. (3) A place of safekeeping referred to in this Article shall, for the purposes of this Proclamation be deemed to be a Customs office and no access to the goods is permitted unl ess an officer gives pri or authorization. (4) The Minister may prescribe by Regulations reduced time limits fo r perishable goods havi ng regard for the nature of the goods.

  74. 69. Risk and storage charges ( I) Goods that are deposited in a place of safekeeping I pursuant to Article 68 hereof shall be kept there at the risk of the owner or importer, and both shall be jointly and severally liable for any storage charges and any expenses incurred in moving the goods from a warehouse, Customs office, bonded warehouse, duty free shop, authorized stores or other area designated by Customs. (2) No goods shall be removed by any person other than an officer from a place of safekeeping until the charges and expenses referred to in sub-article (I) of this Article have been paid in full , and for any contravention the goods shall be treated as smuggled according to this Proclam- ation.

  75. 70. Unclaimed goods are forfeit ( l) Goods that have not been removed from a place of safekeeping within such time as the Minister may prescribe in the Regulations shall be forfeit at the termination of that period of time. (2) The owner or importer of the goods that are forfei t under sub-article (I) of this Article shall be jointly and severally liable for all reasonable expenses inc~1rred by the Customs in the disposal of the goods where they are disposed of other than by sale, public tender or public auction. 256

  76. 71. Abandoned goods (I) The owner or importer of goods that have been imported but have not been released from Customs may, with the authorization of an oflicer and subject to the conditions of sub-article (2) of this Article, abandon the goods to Customs. (2) Any person who abandons goods to Customs pursuant to sub-article ( I )of this Article is liable for all reasonable expenses incurred by Customs in the disposal or destruction of the goods where they are disposed of other than by sale, public tender or public auction, including charges for the services of officers to ca rry out the disposal or destruction.

  77. 72. Seized goods that are forfeit The State of Eritrea may, under such conditions as the Minister may prescribe by Regul ations, immed iately dispose of by sale, public tender or public auction goods and conveyances which have been seized and in respect of which no appeal has been lodged within thirty days, or which a court of competent jurisdiction has declared forfeit.

  78. 73. Proceeds of sale, tender or auction belong to the State of Eritrea (I) Subject to the provisions of sub-articles (2) and (3 )of this Article. the proceeds from the sale, public tender or I I public auction of unclaimed, abandoned and seized goods or conveyances that are forfeit belong to the State of Eritrea and the cost of the sale, public tender or public auction are the responsibility of the State of Eritrea. (2) The proceeds of any sale, public tender or public auction shall be applied to the cost of the sale, publi c tender or public auction, and then to any outstanding duties and taxes, Customs expenses, port charges, warehouse charges, transportation charges and handling charges in that order. (3) An official claim against the proceeds shall be made to Customs by any interested party in respect of sub-article (2) of this Article within sixty (60) days from the sale, public tender or public auction and if all claims are satisfied, excess proceeds, if any, shall be deposited to the account of the Central Treasury. PART XV Exportation

  79. 74. Reporting exports ( I) Subject to the provisions of Article 13( 1) hereof and sub- article (2)( of this Article, all goods that are exported 258 shall be reported at such time and place and in such manner as the Minister may prescribe. (2) The linister may prescribe by Regulations: (a) the classes of goods that are exempted from the requirements of sub-article ( 1) of this Article and the circumstances in which any of those classes of goods are not so exempted; and (b) the classes of persons who are required to report goods under sub-article (I) of this Article and the circumstances in which they are so required. (3) Every person reporting goods under sub-article ( I) of this Article shall : (a) answer truthfully any question asked by an officer with respect to the goods; and (b) where an officer so requests, present the goods to the officer, remove any covering from the goods, unload any conveyance or open any pa11 thereot: or open or unpack any bag, package or container that the officer wishes to examine. (4) Where goods are required by the Regulations to be reported under sub-article( l) of this Article in writing, 259 they shall be reported in the prescribed form containing the prescribed information or in such form containing such information as is satisfactory to the Minister. (5) Where goods are reported under this Article and not duly exported, the person who reported them shall fo rthwith report the fai lure to expo,1 them to an officer at a customs offi ce. (6) In such circumstances as the Minister may prescribed by Regulat ion, goods that are transported within the State of Eritrea after they have been reported under this Article shall be transported subject to such conditions And subject to such bonds or other security as the may prescribe by Regu lations. PART XVI Bonds, Security, Special Services and Awards

  80. 75. Bonds and security (I) The Minister may issue Regulations: (a) authorizing the Director General to determine the amount of any bond, security or deposit required to be posted with the Depar1ment under this Proclamation or the Regulati ons; and 260 (b) prescribing the nature and the terms and condition$ nf any such bond, security or deposit. (2) Any bond required under this Proclamation shall be in a form satisfactory to the Minister.

  81. 76. Special services by officers (I) The Minister may prescribe by Regulations: (a) what services performed by officers at the request of a perso n in charge of imported goods or goods destined for exportation shall be considered to be special services; (b) the charges, if any, that are payable for special services by the person requesting them; and ( c) the terms and conditions, on which special services shall be performed, including the taking of such bonds or other secu rity as may be prescribed. (2) Anything that is required under this Proclamation or the Regulations to be done at a customs office, warehouse. container depot, bonded warehouse or duty free shop that is done at another place as a result of a special service shall be deemed, for the purposes of this Proc- lamation or the Regulations, to have been done at a 26 1 customs offi ce, warehouse, bonded warehouse or duty free shop, as the case may be.

  82. 77. Rewards to informants and officials ( 1) The Minister may prescribe by Regulations the amount of any reward to a person who is not an employee of the State of Eritrea and who gives information on any contravention of thi s Proclamation pertaining to the evasion of duties and taxes or to the smuggling of prohibited or restricted goods only where such informat ion results in the apprehension, seiz_ure and forfeiture of the goods or in the criminal conviction of the person responsible, such reward to be paid from any penalties or from the sale of the forfeited goods. (2) The Minister may prescribe by Regulations the amount of any reward to officers of the Department who are directly or indirectly in volved in the prevention of offenses of this Proclamation where goods illegally imported are apprehended, seized and forfeited, such rewards to be paid from any penalties or from the sale of the forfeited goods. (3) For the purposes of sub-art icle (I) of this Article the identity of any person providing information in respect of 262 any contravention of this Proclamation shall be kept confi~ential by any officer or official receiving that information subject to the secrecy provisions contained in Article 9 hereof. (4) The provisions of sub-article (2) of this Article apply eq ually to anyone employed in any capacity by the State of Eritrea and who provides information according to sub-article (I) of this Article or who is directly invoked in the prevention of offenses under this Proclamation by apprehending anything imported in contravention of this Proclamation. Done at Asmara, this 23"1 day of October, 2000 Government of Eritrea. 263 /

Customs Proclamation, No. 112 of 2000 · Nelum