The main purpose of the study was to examine the effect of customs regulations and customsrnclearance process on Nestle Waters Ethiopia s.co. company performance. This paper has tried torndiscuss the Effect of Customs laws (rules and regulations), Effect of Customs Valuation, Effect ofrnCustoms Clearance, Challenging /problematic/ area in conducting clearing process and the costrnimplication factors to Nestle Waters due to customs regulation and delay in customs clearancernprocess. Purposive sampling technic was used, and total target population are taken as a samplernsize, data were collected from all operation staff of four customs clearing agents and Nestle watersrnemployees. The questionnaires were distributed to 52 respondents. Out of this only 49 respondentsrnreturned the questionnaires and from this 3 of the questionnaires are not returned. These datarnwere tabulated into SPSS software for statistical analysis. The output was analyzed by mean,rnfrequency, correlation and Regression. Descriptive and Inferential statistics were used to analyzernthe data collected from the respondents. The major finding found out from the survey result wasrnthat the existing Proclamation No. 859/2014 and the revised customs proclamations No.rn1160/2019 are still unclear, not harmonized and didnâ€™t simplify the customs procedures to meetrnthe international convention of WCO, customs valuation have a huge effect on companyrnperformance and according to this study most customs duties and taxes are calculated and paidrnbased on Transaction value of identical or similar merchandise, the risk profiling software is notrnupdated time to time and there is no adequately staffed skilled customs officers to deliver fast andrnquality services, over all the customs clearance and risk profiling system is not efficient, therncustoms valuation, risk level given to imported items have effect on company procurement,rnproduction, sales and distribution activity and have effect on distributors, customers andrnemployees satisfaction and also have a very huge impact on over all country's economy. Based onrnthese, recommendation was made in such a way that the customs proclamation must be reviewed,rndiscussed with all stakeholders and updated, customs need to support importers speciallyrnmanufacturing companies, the customs valuation officers must get enough training and alsorncustoms must recruit experts in every department, the risk profiling system must be updated torninternational standards and customs need to focus on trade facilitation than controlling.