Abstract:
This study examines factors affecting custom valuation on import and export: the case of Addis Ababa
Bole International Airport Custom Branch. The Research design of this study was explanatory research
approach, quantitative and qualitative and/or mixed research type. A sample of 394 respondents was
selected from the targeted total population based on random sampling technique method. Consequently, a
total of 394 questionnaire sheets were distributed to randomly selected samples from the target
population in Addis Ababa Bole International Airport Custom Branch and the populations were stratified
into importers and exporters. From this, 318 questionnaires were completely filled and returned back to
the researcher. Both primary and secondary data sources have been used in this study. The collected data
was analyzed on quantitative basis using descriptive statistics and inferential statistics and also
qualitatively analyzed. After the data analyzed through econometric model, the findings of the study
showed that there is positive and significant relationship between the dependent variable custom
valuation and most of the independent variables such as pricing system, procedures, directives,
experience or proficiency. From an economic point of view, inefficient custom valuation has a negative
effect by reducing custom duties and taxes revenue yield for the government. Therefore, this study
recommended that the government should regularly apply proper and full implementation of modern
custom valuation practices and simple procedures to create awareness on clarity of compliance laws as
well as facilitate to imports or exports. The custom valuation management should be able to improve
automated procedure for electronic payments of fees and duties, the controlling mechanism of customs
valuation must have to be moderate, modernized and the custom valuation professionals have to be held
responsible, accountable and adequately trained officials for the custom goods valuation job.
