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Council of Ministers Regulations No. 71/2001 Council of Ministers Financial (Amendment) Regulations

COUNCIL OF MINISTERS REGULATIONS NO.71/2001
COUNCIL OF MINISTERS FINANCIAL
(AMENDMENT) REGULATIONS

These Regulations are issued by the council of Ministers pursuant to Article 5 of the Definitions of Powers and Duties of the Executive Organs of the Federal Democratic Republic of Ethiopia Proclamation No. 4/1995, and Article 68 of the Federal Government of Ethiopia Financial Administration Proclamation No. 57/1996.

1. Short Title
These Regulations may be cited as the “Council of Ministers Financial (Amendment) Regulations No. 71/2001”.

2. Amendment

The Council of Ministers Financial Regulations No. 17/96 (as amended) is hereby further amended as follows:

1. The following new Sub-Article (23) is added after Sub Article (22) of Article 2:

“23) “value added” is the difference between the gross production cost and expenditures made for imported raw materials, other supplies and for services obtained from abroad; but does not include indirect taxes on finished products.

2. Sub-Article (2) of Article 66 is deleted and replaced by the following new sub-Article (2):

“2) A margin of preference may be granted in the evaluation of bids for goods produced locally and local contractors when comparing them with goods imported from abroad and foreign contractors”

3. The following new Sub-Articles (3) and (4) are added after Sub-Article (2) of Article 66:

“3) Margin of preference given to goods produced locally and local contractors under Sub-Article (1) of this Article shall include expenses for transport, insurance, installation, training, maintenance and other services in connection with the implementation of a project, and directly linked with the good or work, but does not include consultancy services.

4) For the implementation of Sub-Article (2) of this Article,

1) goods shall be deemed to be locally produced if the domestically added value is at least 20%. Notwithstanding the preceding provisions products of metal and engineering industries shall be deemed to be locally produced if the domestically added value is at least 15%;

2  the Minister of Finance shall by directive determine the percentage to be applied for different sectors over and above the percentage indicated under Sub-Article (1) of this Article.”

4. The following new Sub-Article (7), (8), and (9) are added after Sub-Article (6) of    Article 66,

“7) any good shall be eligible for the preference margin under Sub-Article (2) of Article 66 where the producer submits a financial report certified by an independent accountant which shows that domestically added value is at least 20% of the value of the good.”

8) for the purpose of evaluation, 15% of the bide price of the imported goods and foreign contractors shall be added on the evaluated bid price of such goods and contractors, when domestically produced goods and local contractors, eligible for the preference margin under Sub-Article (2) of Article 66, are compared with imported goods and foreign contractors.

9) with respect do domestically produced goods the provisions of sub-Article 8 of this Article shall apply only when such goods are of similar quality with imported goods.

10) the eligibility criteria for domestic preference for contractors and the manner in which the preference margin granted under these Regulations is applied shall be determined by directive issued by the Minister of Finance.

3. Effective Date

These Regulations shall come into force as of the date of its publication in the Federal Negarit Gazeta.
Done at Addis Ababa this 8th day of March, 2001.

MELES ZENAWI
PRIME MINISTER OF THE FEDERAL
DEMOCRATIC REPUBLIC OF ETHIOPIA