Djibouti Import Tax

Djibouti, located at the crossroads of Africa and the Middle East, is a small but strategically significant country on the Horn of Africa. With its location at the entrance to the Red Sea, Djibouti serves as a major shipping hub for international trade, particularly for landlocked Ethiopia. The country imports a wide range of products, including agricultural goods, industrial machinery, consumer goods, and energy products. Djibouti is part of several regional trade organizations, including the Common Market for Eastern and Southern Africa (COMESA), which offers preferential tariff rates for member countries. The customs tariff regime in Djibouti is structured to protect local industries, generate revenue, and ensure access to essential goods for the population. Tariffs are based on the product category and its origin, with special import duties applied to certain products to counteract unfair trade practices or protect local production.

Custom Tariff Rates by Product Category in Djibouti

1. Agricultural Products

Djibouti relies heavily on imported food products due to its arid climate, which limits domestic agricultural production. Tariffs on agricultural imports are generally moderate to ensure the population has access to affordable food while protecting small-scale local farmers. The country imports significant quantities of cereals, dairy products, fruits, and vegetables.

1.1 Basic Agricultural Products

• Cereals and Grains: Djibouti imports most of its cereals, including wheat, rice, and maize, to meet domestic food demand.
  • Wheat: Typically taxed at 8% to 12%, depending on the type and country of origin.
  • Rice: Subject to tariffs of 5% to 10%.
  • Maize: Tariffs range from 8% to 12%, with preferential rates for COMESA countries.
• Fruits and Vegetables: Djibouti imports a variety of fruits and vegetables, primarily from neighboring countries and international markets.
  • Citrus fruits (oranges, lemons): Typically taxed at 10% to 15%.
  • Leafy greens and root vegetables: Imports are taxed at 5% to 12%, with reduced tariffs for imports from COMESA member states.
• Sugar and Sweeteners: Sugar is an essential import, and tariffs are structured to balance affordability with local revenue generation.
  • Refined sugar: Generally taxed at 10% to 15%, with reduced rates for regional imports under COMESA.

1.2 Livestock and Dairy Products

Livestock farming plays an important role in Djibouti’s rural economy, but the country still imports meat and dairy products to meet urban demand.

• Meat and Poultry: Djibouti imports meat and poultry, particularly from neighboring Ethiopia, as well as from global suppliers.
  • Beef and lamb: Typically taxed at 12% to 15%.
  • Poultry (chicken and turkey): Imports are taxed at 10%, with preferential rates for regional trade partners.
• Dairy Products: Djibouti imports various dairy products, such as milk powder, butter, and cheese, from Europe and the Middle East.
  • Milk powder: Typically taxed at 5%, with reduced tariffs for COMESA countries.
  • Cheese and butter: Tariffs range from 10% to 15%, depending on the country of origin.

1.3 Special Import Duties

Djibouti may apply anti-dumping duties or countervailing duties on certain agricultural products if imports are found to harm local production. For instance, duties on poultry from Brazil or dairy products from Europe may be applied to protect domestic markets from unfair pricing.

2. Industrial Goods

Djibouti imports a wide range of industrial goods to support its infrastructure development, manufacturing sector, and services industries. As the country continues to modernize its infrastructure, tariffs on industrial machinery and equipment are generally kept low to encourage investment and development.

2.1 Machinery and Equipment

• Industrial Machinery: Djibouti imports significant quantities of machinery, particularly for construction and manufacturing. Tariffs on these imports are relatively low to facilitate infrastructure growth.
  • Construction machinery (cranes, bulldozers): Typically taxed at 5% to 10%, depending on the type of machinery.
  • Manufacturing equipment: Tariffs range from 0% to 5%, with reduced rates for imports from COMESA countries.
• Electrical Equipment: Electrical machinery and equipment, such as generators and transformers, are crucial for powering the country’s industries and urban areas.
  • Generators and transformers: Typically taxed at 5% to 10%, with lower rates for imports from regional partners.

2.2 Motor Vehicles and Transportation

Djibouti imports most of its motor vehicles and automotive parts, particularly from Asia, Europe, and the Middle East. The tariff structure for motor vehicles varies based on the type of vehicle and its engine capacity.

• Passenger Vehicles: Import duties on passenger cars depend on engine size and the vehicle’s age.
  • Small passenger vehicles (under 1,500cc): Typically taxed at 10% to 15%.
  • Luxury cars and SUVs: Higher tariffs of 20% to 25% apply to larger, luxury vehicles.
• Commercial Vehicles: Imports of trucks, buses, and other commercial vehicles are crucial for Djibouti’s logistics and transportation infrastructure.
  • Trucks and buses: Generally taxed at 10%, with preferential rates for imports from COMESA countries.
• Vehicle Parts and Accessories: Vehicle parts, such as tires, batteries, and engines, are taxed at 5% to 15%, depending on the type and country of origin.

2.3 Special Import Duties for Certain Countries

Djibouti may impose special import duties on industrial goods from countries found to engage in unfair trade practices, such as dumping. For example, anti-dumping duties may be applied to steel products from China or automotive components from certain Asian countries to protect local businesses.

3. Textiles and Apparel

Textiles and apparel imports are critical to meet domestic demand in Djibouti, as the local textile industry is still in its nascent stage. The country imports most of its textiles and garments from Asia, particularly China, India, and Bangladesh.

3.1 Raw Materials

• Textile Fibers and Yarn: Djibouti imports raw materials such as cotton, wool, and synthetic fibers to support its small but growing textile industry.
  • Cotton and wool: Typically taxed at 5% to 10%, with reduced tariffs for imports from COMESA countries.
  • Synthetic fibers: Tariffs range from 8% to 12%, depending on the type of fiber and country of origin.

3.2 Finished Clothing and Apparel

• Clothing and Apparel: Imported garments face moderate tariffs to protect the local textile sector while ensuring affordable access for consumers.
  • Casual wear and uniforms: Generally taxed at 10% to 15%, with preferential rates for imports from COMESA and Ethiopia under regional trade agreements.
  • Luxury and branded clothing: Higher tariffs of 20% to 25% may apply to high-end garments and branded apparel.
• Footwear: Imported footwear is taxed at 10% to 15%, depending on the material and origin.
  • Leather shoes: Typically taxed at 15%, with lower tariffs for imports from COMESA and neighboring countries.

3.3 Special Import Duties

Djibouti applies anti-dumping duties on certain categories of textile and apparel products from countries like China and India if these products are found to undercut local manufacturers through unfair pricing practices.

4. Consumer Goods

Djibouti imports a wide variety of consumer goods, including electronics, home appliances, and furniture, to meet domestic demand. Tariffs on these products vary by category, with lower rates for essential goods and higher rates for luxury items.

4.1 Electronics and Home Appliances

• Household Appliances: Djibouti imports most of its household appliances, such as refrigerators, washing machines, and air conditioners, from Asia and Europe.
  • Refrigerators and freezers: Typically taxed at 10% to 15%, with lower tariffs for imports from COMESA countries.
  • Washing machines and air conditioners: Subject to tariffs of 10% to 15%, depending on the brand and country of origin.
• Consumer Electronics: Electronics such as televisions, smartphones, and laptops are essential imports in Djibouti, with tariffs that vary based on the product and origin.
  • Televisions: Typically taxed at 10% to 15%, with preferential tariffs for imports from COMESA and Ethiopia.
  • Smartphones and laptops: Generally taxed at 5% to 10%, depending on the brand and source country.

4.2 Furniture and Furnishings

• Furniture: Imported furniture, including home and office furnishings, is subject to tariffs ranging from 10% to 20%, depending on the material and country of origin.
  • Wooden furniture: Typically taxed at 15%, with lower tariffs for imports from neighboring African countries under regional trade agreements.
  • Plastic and metal furniture: Subject to tariffs of 10% to 15%, depending on the country of origin.
• Home Furnishings: Items such as carpets, curtains, and home décor products are generally taxed at 10% to 15%, with lower tariffs for imports from COMESA countries.

4.3 Special Import Duties

Djibouti may apply anti-dumping duties on certain consumer goods, such as electronics or furniture, from countries like China if these imports are found to be sold at below-market prices, harming local industries.

5. Energy and Petroleum Products

Djibouti is highly dependent on imports for its energy needs, particularly petroleum products. The government aims to balance the need for affordable energy with the generation of state revenue through customs duties.

5.1 Petroleum Products

• Crude Oil and Gasoline: Djibouti imports most of its petroleum products from the Middle East and neighboring African countries.
  • Crude oil: Typically taxed at zero tariffs to ensure the supply of affordable energy.
  • Gasoline and diesel: Generally taxed at 10%, though preferential tariffs may apply for imports from COMESA member states.
• Diesel and Other Refined Petroleum Products: Refined products are typically taxed at 5% to 10%, with lower rates for regional trade partners.

5.2 Renewable Energy Equipment

• Solar Panels and Wind Turbines: To encourage the development of renewable energy infrastructure, Djibouti applies zero tariffs on renewable energy equipment, such as solar panels and wind turbines.

6. Pharmaceuticals and Medical Equipment

Djibouti prioritizes access to affordable healthcare, and as such, tariffs on essential medicines and medical equipment are kept low or zero to ensure affordability and availability for the population.

6.1 Pharmaceuticals

• Medicines: Essential medicines, including life-saving drugs, are generally subject to zero tariffs to ensure affordability for the population. Non-essential pharmaceutical products may face tariffs of 5% to 10%, depending on the type and country of origin.

6.2 Medical Devices

• Medical Equipment: Medical devices, such as diagnostic tools, surgical instruments, and hospital beds, are generally subject to zero tariffs or low tariffs (2% to 5%), depending on the product’s necessity and origin.

7. Special Import Duties and Exemptions

7.1 Special Duties for Non-Preferential Countries

Djibouti applies anti-dumping duties and countervailing duties on certain imports from non-preferential countries that are found to be subsidized or sold below market prices. These measures protect local industries from unfair competition. For example, steel products and textiles from countries like China and India may face additional duties to prevent market distortions.

7.2 Bilateral and Multilateral Agreements

• COMESA: Djibouti benefits from reduced or zero tariffs on goods traded within the Common Market for Eastern and Southern Africa (COMESA), fostering regional economic integration.
• Generalized System of Preferences (GSP): Djibouti imports certain products from developing countries at reduced or zero tariffs under the GSP to support trade with less-developed nations.

Country Facts

• Official Name: Republic of Djibouti
• Capital City: Djibouti City
• Largest Cities:
  • Djibouti City (capital and largest city)
  • Ali Sabieh
  • Tadjoura
• Per Capita Income: Approx. $3,500 USD (2023 estimate)
• Population: Approx. 1.1 million (2023 estimate)
• Official Languages: French, Arabic
• Currency: Djiboutian Franc (DJF)
• Location: Djibouti is located in East Africa, bordered by Eritrea to the north, Ethiopia to the west and south, and Somalia to the southeast. It has a coastline along the Red Sea and the Gulf of Aden.

Geography of Djibouti

Djibouti is a small country located at the strategic junction between Africa and the Arabian Peninsula. It covers an area of 23,200 square kilometers and features a variety of landscapes, from coastal plains to arid plateaus and volcanic formations.

• Coastline: Djibouti has a coastline of approximately 370 kilometers along the Gulf of Aden, making it a vital shipping hub for the region.
• Lakes: Lake Assal, the lowest point in Africa, is a saline lake located in central Djibouti and is known for its extremely high salt concentration.
• Mountains: The Mousa Ali Range marks the highest point in Djibouti, with peaks reaching 2,028 meters above sea level.
• Climate: Djibouti has an arid climate, characterized by hot temperatures and low rainfall, particularly in coastal areas.

Economy of Djibouti

Djibouti’s economy is primarily based on its strategic location as a maritime hub and its role as a logistics and services center for the region. The country’s key industries include port services, logistics, and telecommunications, with growing sectors in energy, banking, and tourism.

1. Port and Logistics Services

Djibouti’s economy is heavily reliant on its port facilities, which serve as a major gateway for imports and exports to and from Ethiopia and other landlocked countries in the region. The Port of Djibouti is one of the busiest ports in East Africa, handling significant volumes of cargo transiting between Africa, the Middle East, and Europe.

2. Banking and Financial Services

The financial services sector in Djibouti is expanding, driven by the country’s strategic location and efforts to position itself as a regional banking and investment hub. The government has introduced reforms to attract foreign investment and promote the growth of the financial sector.

3. Energy

Djibouti is investing in renewable energy projects, particularly in geothermal, solar, and wind power. The country has ambitious plans to become energy-independent and to export renewable energy to neighboring countries like Ethiopia and Somalia.

4. Telecommunications and ICT

The telecommunications sector is a growing part of Djibouti’s economy, with the government aiming to turn the country into a regional hub for information and communication technology (ICT). Djibouti benefits from its location as a landing point for several submarine fiber-optic cables connecting Africa, the Middle East, and Europe.

5. Tourism

Although still underdeveloped, tourism in Djibouti is growing, thanks to the country’s unique natural landscapes, such as Lake Assal, Lac Abbé, and the Gulf of Tadjoura, as well as its marine biodiversity, which attracts divers and eco-tourists.