Every individual or organization that wishes to do international business must receive authorization before they can export or import goods into Eritrea. For commercial purposes, it is essential to have a registered trade with the relevant license (if needed) for the business and to be included in the country’s Trade and Company Register before exporting or importing goods to or from Eritrea. The Eritrean government’s Customs and Excise Division is in charge of levying taxes on commodities effectively, carrying out customs regulations, enabling legal trade, and safeguarding society and lawful economic activity. For the business to prevent missing shipments, port demurrage fees, or fines, all export documents must be correctly filled out. The validity of the documents, the veracity of the information included in the documents, and the timeliness with which the documents are submitted and the required Customs Clearance applications are filed all play a role in how efficiently the Customs Clearance process runs.
Export procedure
There are typically three stages to the export procedure in any nation.
- Documentation requirements for exportation.
- The one-time registration process for an export license.
- Procedures for export customs clearance.
In 2021, Eritrea exported items worth a total of US$501.5 million. This predicted monetary figure represents a 16.6% rise from the $430 million recorded for 2017 five years earlier.
Overall Eritrean exports fell by -22.6% from $376.1 million in 2020 to the previous year.
A tiny nation in East Africa, Eritrea is bordered to the west by Sudan, to the south and southwest by Ethiopia, and to the southeast by Djibouti. Eastern and northeastern Eritrea are connected by the Red Sea.
Eritrea’s top exports
In terms of Eritrean international exports in 2021, the following export product groups, at the 2-digit Harmonized Tariff System (HTS) code level, represent the most significant dollar value. Additionally displayed is the percentage of total Eritrean exports that each export category accounts for.
- $491,5 million ($98% of total exports) in ore, slag, and ash.
- $4.6 million (0.9%) for clothing and accessories (not knit or crochet).
- Computers and related equipment: $2.1 million (0.4%).
- Drinks, booze, and vinegar: $456 000 (0.09%).
- Preparations of vegetables, fruits, and nuts: $442,000 (0.09%).
- $416,000 (0.08%) in pharmaceuticals.
- Equipment for optics, technology, and medicine: $380,000 (0.08%).
- Fish: $187,000 (0.04%).
- Steel and iron: $158,000 (0.03%).
- Pictures, books, and newspapers: $133,000 (0.03%).
The top 10 exports from Eritrea made up 99.7% of the total value of its international shipments.
With an increase of 3,225% from 2020 to 2021, books, newspapers, and images comprise the top 10 export categories with the fastest growth. Vegetable, fruit, or nut preparations came in second place for Eritrea’s increasing export sales with a 2,226% increase.
Pharmaceutical exports from Eritrea experienced the third-fastest increase in value, rising by 540%. Fish was the only category to experience a fall among the top 10 exports from Eritrea, slowing by -37.2% every year.
The top exports from Eritrea at the more specific 4-digit Harmonized Tariff System code level are copper ores or concentrates (42.2% of Eritrea’s total global exports), zinc ores or concentrates (55.8% of Eritrea’s total global exports), unknitted and non-crocheted women’s clothing (0.5%), sorting or washing equipment (0.4%), and unknitted and non-crocheted men’s shirts (0.2%).
Products making the most of Eritrea’s trade surpluses
An anticipated $284.9 million trade surplus for Eritrea was recorded in 2021, a decrease of -0.4% from the $286.1 million trade deficit recorded in 2020. The shipments of the following Eritrean goods show positive net exports or a trade balance surplus. According to Investopedia, net exports are calculated as less than total imports for a certain nation.
In the worldwide trade of copper and zinc ores and concentrates, Eritrea enjoys very favorable net exports. The considerable competitive advantages Eritrea has in the ores, slag, and ash product category are also shown by these cashflows.
