COUNCIL OF MINISTERS REGULATION TO
ESTABLISH THE LEATHER INDUSTRY
This Regulation is issued by the Council of Ministers pursuant to Articles 5 and 34 of the Definition of Powers and Duties of the Executive Organs of the Federal Democratic Republic of Ethiopia Proclamation No. 471/2005 (as amended by Proclamation No. 603/2008),
1. Short Title
This Regulation may be cited as the “Leather Industry Development Institute Establishment Council of Ministers Regulation No. 181/2010”.
In this Regulation:
1. “Ministry” means the Ministry of Trade and Industry;
2. “industry” and “manufacturing activity” shall have the definitions given to them by sub-articles (11) and (12) of Article 2 of the Commercial Registration and Business Licensing Proclamation No. 67/1997;
3. “production process” means sequence of operation in manufacturing activity;
4. “leather” means rawhide or raw skin obtained from small or big animals, or rawhide or skin at the final stage after being pickled and tanned;
5. “leather products” means shoes, bags, belts and gloves made from leather, canvass, plastics or artificial leather, or apparels made from leather and the like;
6. “leather industry” means a manufacturing activity inclusive of converting rawhide and raw skin into a final product and manufacturing leather products;
7. Any expression in the masculine gender includes the feminine.
1. The Leather Industry Development Institute (hereinafter the “Institute”) is hereby established as an autonomous federal government office having its own legal personality.
2. The Institute shall be accountable to the Ministry.
4. Head Office
The Institute shall have its Head Office in Addis Ababa and may have branch offices elsewhere, as may be necessary.
5. Objectives of the Institute
The objectives of the following Institute shall be to facilitate the development and transfer of leather and leather products industries technologies, and to enable the industries become competitive and beget rapid development.
6. Powers and Duties of the Institute
The Institute shall have the following powers and duties to:
1. Formulate policies, strategies and programs that assist in the facilitation of the development of leather and leather products industries; and implement the same upon approval;
2. Collect, analyze, organize and transfer to the sector’s data center and disseminate to users, as may be appropriate, data necessary for the development of leather and leather products industries.
3. Prepare and disseminate project profiles that may be helpful in expanding investments in the leather and leather products industries; conduct feasibility studies for those investors desiring to engage in the sector; follow up project implementation and provide remedies concerning problems encountered during implementation.
4. advise investors desiring to engage in the leather and leather products industries sector on the selection of technology, negotiation, construction erection and commissioning;
5. prepare and conduct practical trainings on technology, technical matters, marketing and management and other tailor made trainings, that assist the development and competitiveness of the leather and leather products industries sector; and issue certificates to trainees;
6. conduct studies and researches to promote the development of the leather and leather products industries;
7. provide support and consultancy services concerning production process, production planning and quality control;
8. cooperate with government and private institutions with similar objectives, locally and abroad; and encourage similar co-operations between private institutions;
9. undertake benchmarking studies that facilitate the development and competitiveness of the leather and leather products industries and assist those conducting similar activity in the sector;
10. deliver product-testing services to leather and leather products industries;
11. extend support in the creation of input and output linkage;
12. Conduct market study for leather and leather products industries products;
13. Identify technologies that can be developed and undertake product development activities;
14. Cooperate with universities on product development and human resource development, conduct joint research and assist in the strengthening of local research capacity in the sector;
15. Deliver its services to users at one stop shop;
16. Collect, as may be appropriate, fees for services it renders;
17. Own property, enter into contracts and sue and be sued in its own name;
18. Perform such other activities as are conducive to the attainment of its objectives.
7. Organization of the Institute
The Institute shall have:
1. an Advisory Council;
2. a Director General to be appointed by the government; and
3. the necessary staff.
8. Members of the Advisory Council
1. The Chairperson and members of the Advisory Council shall be drawn from the appropriate government offices and the private sector and appointed by the government.
2. The number of members of the Advisory Council shall be determined as required.
9. Duties of the Advisory Council
The Advisory Council shall:
1. advice the Institute on its activities;
2. evaluate, and forward its recommendation on, policies, strategies, plans, studies and researches formulated with the view to facilitate the development of the leather and leather products industries;
3. forward its opinions on capacity building programmes;
4. evaluate the implementation of the plans of the Institute every three months and submit reports to the Ministry.
10. Meetings of the Advisory Council
1. The Advisory Council shall meet every three months, and may hold meetings in the mean time on matters of urgency.
2. There shall be a quorum where the majority of the members of the Council are present at a meeting.
11. Powers and Duties of the Director General
1. The Director General shall be the chief executive officer of the institute and shall, direct and administer the activities of the Institute.
2. Without limiting the generality of sub-article (1) of this Article, the Director General shall:
a) exercise the powers and duties of the Institute specified under Article 6 of this Regulation;
b) employ and administer personnel of the Institute in accordance with directives to be approved by the government following the basic principles of the federal civil service laws;
c) prepare and submit to the Ministry the strategic plan, annual plan, work programme and budget of the Institute and implement the same upon approval;
d) effect payments in accordance with the approved budget and work programme of the Institute;
e) represent the Institute in its dealings with third parties;
f) prepare and submit to the Ministry the performance the financial reports of the Institute.
3. The Director General may delegate part of his powers and duties to the employees of the Institute to the extent necessary for the effective performance of the activities of the Institute.
12. Budget of the Institute
The Budget of the institute shall be allocated by the government.
13. Books of Accounts
1. The Institute shall keep complete and accurate books of accounts.
2. The books of accounts and financial documents of the Institute shall be audited annually by the Auditor General or an Auditor assigned by him.
The Leather and Leather Products Technology Institute Establishment Council of Ministers Regulation No. 41/1998 (as amended) is hereby repealed.
15. Transfer of Rights and Obligations
The rights and obligations of the Leather and Leather Products Technology Institute established by the Council of Ministers Regulation No. 41/1998 as well as the rights and obligations of the Textile and Leather Industry Development Center established by the Council of Ministers Regulation No. 125/2006, other than those relating to the textile and apparel sector, are hereby transferred to the Institute.
16. Effective Date
This Regulation shall come into force on the date of publication in the Federal Negarit Gazeta.
Done at Addis Ababa, this 7th day of June, 2010.
PRIME MINISTER OF THE FEDERAL
DEMOCRATIC REPUBLIC OF ETHIOPIA