Mastering Import Procedures in Ethiopia

Importing goods into Ethiopia involves navigating through a series of procedures and regulations. Whether you're a seasoned importer or new to the business, understanding the import procedure in Ethiopia is crucial for smooth operations.

Pre-Shipment Inspection

Before importing goods into Ethiopia, it's essential to understand pre-shipment inspection requirements. Generally, goods are not required to undergo inspection before shipment unless specific conditions apply. For instance:

• Imports from China may require pre-shipment inspection, except for goods used in manufacturing.
• Goods subject to Ethiopian standards or covered by pre-shipment inspection agreements must undergo inspection by recognized international companies.

Arrangement and Mode of Payment

Arranging payment for imported goods involves several steps. First, importers must apply for foreign currency approval from authorized commercial banks, presenting necessary documents like business licenses and pro-forma invoices. Once approved, importers obtain a bank permit from the National Bank of Ethiopia (NBE) to arrange payment. Typically, imports are settled through:

• Letter of Credit
• Cash Against Document
• Advance Payment

Customs Proceedings for Imported Goods

Importing goods into Ethiopia requires compliance with customs procedures set by the Customs Commission (formerly ERCA). Here's an overview of the customs process:

1. Customs Declaration: Importers must prepare a customs declaration (goods declaration) containing detailed information about the imported goods, tariff classification, and supporting data.
2. Payment of Customs Duty and Taxes: Importers are liable to pay customs duties and taxes based on the type of goods imported.
3. Inspection: Physical examination of imported goods ensures compliance with declared information.
4. Clearance and Goods Release: Upon fulfilling customs requirements and obtaining necessary permits, importers receive clearance and take possession of the goods.

Application to the NBE/Authorized Commercial Bank

Exporting goods from Ethiopia involves submitting an application to the National Bank of Ethiopia or authorized commercial banks. The application must include essential documents such as export contracts, invoices, and export permits.

Customs Proceedings for Exported Goods

Exporters must adhere to customs procedures when shipping goods out of Ethiopia:

1. Customs Declaration: Exporters submit a customs declaration containing detailed information about the exported goods, tariff classification, and customs valuation.
2. Obtain Certificates: Exporters must obtain necessary certificates, including inspection certificates and certificates of origin.
3. Export Customs Clearance and Shipping: Customs authorities conduct examinations to ensure compliance with export regulations. Upon clearance, exporters arrange shipment and obtain necessary permits.

Documentation for Import Procedures in Ethiopia

To facilitate the import procedure in Ethiopia, importers need to prepare and submit several essential documents to ensure compliance with customs regulations and facilitate smooth clearance of goods. These documents include:

1. Import License/Investment Permit: Importers must possess a valid import license or investment permit issued by the appropriate Ethiopian authorities.
2. Pro-forma Invoice: A pro-forma invoice from the supplier detailing the imported goods, unit price, quantity, total price, and any additional charges applicable to the transaction.
3. Foreign Currency Approval: Importers must apply for approval of foreign currency from authorized commercial banks, accompanied by valid business and import licenses or investment permits.
4. Bank Permit: After obtaining foreign currency approval, importers need to secure a bank permit from the National Bank of Ethiopia (NBE) to arrange the mode of payment.
5. Commercial Invoice: A commercial invoice detailing the goods being imported, their value, and other relevant information required for customs clearance.
6. Certificate of Origin: A certificate indicating the origin of the imported goods, often issued by the exporting country's authorities.
7. Packing List: A detailed packing list describing the contents of each package, including quantities, weights, and dimensions of the goods.
8. Bill of Lading: A document issued by the carrier (shipping company) acknowledging receipt of the goods for shipment, which serves as a contract of carriage.
9. Insurance Certificate: If applicable, an insurance certificate covering the shipment of goods during transit.
10. Regulatory Permits: For certain products requiring pre-import permits, importers must obtain regulatory permits from relevant Ethiopian authorities.
11. Tax Identification Number (TIN): Importers must provide their Tax Identification Number for customs and taxation purposes.
12. Other Supporting Documents: Depending on the nature of the imported goods and specific regulatory requirements, importers may need to provide additional supporting documents as requested by customs authorities.

Conclusion

Mastering the import procedure in Ethiopia is fundamental for businesses looking to engage in international trade. By understanding the intricacies of customs clearance, payment arrangements, and regulatory compliance, importers and exporters can navigate the import-export landscape with confidence.

To streamline your import and export operations in Ethiopia and beyond, consider leveraging Export Portal's innovative trade platform. With Export Portal, you gain access to a secure and user-friendly environment designed to facilitate global commerce. Whether you're importing goods into Ethiopia or exporting products to international markets, Export Portal offers a seamless and efficient trade experience.