Factors Affecting Custom Valuation on Import and Export: The Case of Addis Ababa Bole International Airport Customs Branch.

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.