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[Virtual Presenter] Good day everyone. Welcome to this presentation about Ethiopian Customs Guide. Here, you will learn more about Ethiopia's import and export regulations, including information on how to obtain an import or export license, pre-import permits, customs declarations, and other related topics. So, without further ado, let's dive into the world of Ethiopian Customs..

[Audio] Ethiopia's commitment to free and secure trade is reflected in the Ethiopian Customs Guide, which provides a comprehensive overview of the nation's customs regulations. It covers what goods are prohibited or restricted from import or export, as well as the legal basis for these operations. In addition, the guide offers detailed instructions on how to import goods into Ethiopia, including obtaining an import license and a pre-import permit for certain restricted goods. The guide is an invaluable asset for anyone looking to understand and comply with Ethiopia's customs regulations..

[Audio] As an importer or exporter in Ethiopia, understanding the customs process is essential. However, it can be a complicated process which is why this guide is designed to provide you with the main steps that need to be taken. From obtaining an export license to arranging payment, collecting documents, preparing a customs declaration and obtaining clearance, we can provide you with the necessary information so that your shipment is processed quickly and smoothly..

PART FOUR…………………………………………………………… 66 CUSTOMS OPERATIONS IN ETHIOPIA …………………………. 66 1. Goods declarations………………………………………………….. 66 1.1. Introduction…………………………………………………….. 66 1.2. Declarant ………………………………………………………. 67 1.3. Goods to be declared …………………………………………… 67 1.4. Forms and preparation of goods declaration …………………… 70 1.5. Supporting documents of goods declaration …………………… 73 1.6. Acceptance or rejection of goods declaration ………………….. 76 1 .7.Amendment of declaration …………………………………….. 77 1.8. Cancellation of declaration …………………………………….. 80 2. Customs transit ………………………………………………………. 85 2.1. Introduction …………………………………………………….. 85 2.2. Commencement of customs transit …………………………….. 88 2.3. Procedures En-Route …………………………………………… 92 2.4. Termination of customs transit ………………………………… 93 2.5. Transshipment ………………………………………………….. 94.

[Audio] Customs officials in Ethiopia have specific regulations for warehousing, clearance and importation/exportation of goods. To start with, there are rules for the establishment of warehouses to store goods, entry and storage of goods in the warehouses and the release and removal of goods. Additionally, there are regulations for the transfer of goods to government warehouses, taking of goods for sample purposes and the disposal of abandoned goods. The customs clearance process covers examination of imported goods for home use, temporary and re-importation of cargo. For cargo exportation, it includes regulations for outright exportation, temporary and re-exportation of goods..

[Audio] Foreign travelers to Ethiopia should be aware of regulations related to unaccompanied baggage, non-commercial goods, personal effects, and postal parcels. There are various processes and procedures related to inward and outward processing that must be observed. Additionally, customs valuation and tariff classification should be considered when traveling to Ethiopia. This guide is intended to give travelers an understanding of the procedures they may need to complete during their journey..

[Audio] Examining the sixth slide of the "Ethiopian Customs Guide " presentation, we are looking at the six different methods for valuating imported goods. Method 2, Transaction Value of identical goods, looks at the declared value of identical goods in the same commercial level. Method 3, Transaction Value of similar goods, measures the declared value of similar goods sold in the same commercial level. Method 4, Deductive Value, calculates the cost based on the cost of materials, labor, and profit. Method 5, Computed Value, calculates the value by using an index or formula. Finally, Method 6, Fallback, is a combination of the other five methods. It is important to understand which method should be used for determining origin in order to comply with Ethiopia's customs laws..

[Audio] Customs duties, taxes, and service charges are a critical aspect of the Ethiopian customs procedure. This section outlines the policies and processes for paying such duties and taxes, as well as post-clearance audit and delayed payment. Staying aware of the applicable dates for assessment and payment of duties and taxes, as well as the various forms of security required, is essential. Furthermore, mistakes in customs declarations should be fixed promptly in order to prevent any potential penalties. Adhering to these guidelines should make certain compliance with the customs process..

[Audio] The Ethiopian Customs Guide provides details on security, offences and penalties, complaint reviews, and handling procedures. It outlines the amount of security and duration of security, the role of the debtor and guarantor, and various customs offences and penalties. Additionally, it includes information on complaint reviews, handling procedures, and appeal procedures. Understanding the Ethiopian customs guide is essential for successful commercial law transactions in the country..

[Audio] Businesses in Ethiopia may benefit from a variety of tax incentives related to custom operations, such as investment tax incentives, export trade tax incentives, and tax reductions or zero rate. There are also foreign exchange permits and franco-valuta in place to facilitate operations. Along these lines, businesses must also fulfill certain obligations, such as providing and keeping records of information. Ethiopia is an attractive place for companies to operate and its customs regulations are in place to make commerce secure and straightforward..

[Audio] Ethiopia has taken significant steps to modernize its customs administration system and stimulate the investment and growth of its manufacturing industries. The Ethiopian Customs Administration system has been examined by COMESA and confirmed to meet international standards. Additionally, they have implemented initiatives like duty free imports and tax exemptions to further encourage investment and development in the country..

[Audio] At Ethiopia Customs, we value integrity, equity, fairness, and service. We are dedicated to establishing and adhering to the proper tools and regulations of trade and customs as determined by the Ethiopian government and we are invested in streamlining the entry and exit of goods and people. We collaborate with businesses and the public to guarantee that all laws and regulations are being followed in order to limit delays. We have created a technologically advanced system to facilitate document processing and to enhance the customs experience. Our ambition is to raise trade flow, diminish smuggling, and create a conducive business climate conducive to growth..

[Audio] Customs operations play a major role in the economic growth of any country. Ethiopia's customs law includes provisions that outline the guiding principles which must be followed for customs transactions. These guidelines are intended to make the process easier and aid in trade. They include registering goods correctly, adhering to import and export terms and regulations, and paying duties and taxes in a timely and correct manner. To ensure successful customs operations, it is imperative to follow these principles..

[Audio] The Ethiopian Revenues and Customs Authority (ERCA) is responsible for the orderly passage of goods into and out of Ethiopia, adhering to principles of self-assessment, risk management, and transparency. Importers and exporters, or their agents, are tasked with the valuation of goods and submission of the same to customs offices, which calculate the corresponding duties and taxes. ERCA works to balance trade facilitation and control by assessing, directing, and controlling associated risks. The organization also disseminates relevant trade information, including rates of duties and taxes, fees and charges, customs laws and procedures, appeal procedures, and more, through publications and other means. Ethiopia has thus established a capable system that allows goods to move quickly and securely..

[Audio] Ensuring that all customs activities are conducted within legal and ethical standards is a critical component of Ethiopia's Customs operations. The Ethiopian Revenue and Customs Authority (ERCA) has developed standards and guidelines to ensure the streamlined and effective delivery of customs services. These standards focus on accountability, customer service, and the prevention of unlawful behavior. Accountability is established by ERCA to make sure everyone involved in the customs process is aware of their obligations and roles. Moreover, ERCA is committed to providing equitable, transparent, reliable, and prompt services to all customers. Additionally, ERCA is promoting self-compliance as a preventative measure against activities such as fraud, smuggling, and other illicit activities. By implementing all of these measures, ERCA is working to ensure that Ethiopia's customs operations are conducted within legal and ethical standards..

[Audio] Companies involved in manufacturing can benefit from special services by customs to expedite the clearance of their goods if they comply with the required standards of the customs law. Customs granted remedies or handling of goods guarantee that all products passing through customs are addressed in an impartial manner. This encourages the economic growth of the nation..

[Audio] When you cross the border into Ethiopia, you may find the customs procedures unfamiliar. However, Ethiopia has a well-organized procedure to facilitate foreign trade. The national laws give particular advantages and regulations for foreign investors, exporters, and those engaging in industry parks. Ethiopia also has modern systems such as the Electronic Single Window System, the Electronic Customs Management System, and Cargo Trucking to make the process simpler. Furthermore, complex cargo scanning technologies are being utilized to promote foreign direct investment. So when you travel to Ethiopia, you will be appropriately supported for a successful experience..

[Audio] When importing or exporting goods to Ethiopia, it is important to be aware of the regulations imposed by both customs and other government authorities in the country. There are two types of goods that are prohibited from entry, and others which are restricted and require special permission from the relevant authorities. These include items such as illicit narcotics and drugs, worn clothes, medicines, pharmaceutical products, foods, beverages, communication equipment, fertilizers, seeds, and live animals. For a full list of prohibited and restricted goods, you can consult Ethiopian Revenue and Customs Authority..

[Audio] Customs operations in Ethiopia are governed by legal legislation produced by the Ethiopian Revenues and Customs Authority (ERCA). These laws include Value Added Tax Proclamation No. 285/2002, Excise Tax Proclamation No. 307/2002, Ethiopian Revenues and Customs Authority Establishment Proclamation No. 587/2008, Proclamation to Amend the Value Added Tax Proclamation No. 609/2008, Proclamation to Amend the Excise Tax Proclamation No. 610/2008, Proclamation to Promote Sustainable Development of Mineral Resources Proclamation No. 678/2010, and Proclamation on Export Trade Duty Incentive Schemes Proclamation No. 768/2012. These form the basis of ERCA's functioning..

[Audio] This covers the regulations pertaining to trade in Ethiopia. This includes Proclamation No. 769/2012 on Investment, Customs Proclamation No. 859/2014, Income Tax Proclamation No. 979/2016, Commercial Registration and Business Licensing Proclamation No 980/2016, Tax Administration Proclamation No. 983/2016, Customs Warehouse License Issuance Council of Ministers Regulations No. 24/1997, Customs Tariff Regulations Amendment Council of Ministers Regulation No. 25/1997, Customs Tariff Regulations Amendment Council of Ministers Regulation No. 80/2002, and the Revised Regulation on the Importation of Goods on Franco- Valuta Basis Council of Ministers Regulation No. 88/2003. Each item will be discussed in further detail..

[Audio] The Ethiopian Customs Guides, consisting of Customs Tariff Regulations Amendment Council of Ministers Regulation No. 89/2003, Customs Clearing Agents Council of Ministers Regulation No. 108/2004, Import Sur-tax Council of Ministers Regulation No. 133/2007, Investment Incentives and Investment Areas Reserved for Domestic Investors Council of Ministers Regulation No. 270/2012, Temporary Admission Directive No. 28/2002 E.C, Goods Released under Security Directive No. 37/2002 E.C, Postal Parcel Customs Procedure Directive No. 38/2002 E.C, Customs Warehouse Administrative Directive No. 40/2002 E C and Disposal of Abandoned Goods under Customs Control Procedure Directive 56/2003 EC, are designed to make import and export within the country easier. Businesses have to comply with these guides to ensure the smooth sailing of their goods shipments..

[Audio] The Ethiopian government has put in place numerous directives and laws to create an efficient and transparent customs process for authorized economic operators. These include Vehicles Tax Incentive Directive No. 04/2004 E.C, Directives Providing for Simplified Customs Procedures for Authorized Economic Operators Directive No. 65/2004 E.C, Franco-Valuta Directive No. 66/2004 E.C, Export Trade Duty Incentives Directive No. 86/2005 E.C, Establishment of Compliance Review Committee and Procedures Directive No. 91/2006 E.C, Directive to Determine the Working Modalities of the Customs Complaints Review Sections No. 107/2007 EC, Second Schedule Tariff Application Directive No. 45/2008 E.C, and Determination of Customs Dutiable Value Directive No. 111/2008 E C These regulations are designed to make certain the customs process goes smoothly and securely..

[Audio] This Ethiopian Customs Guide provides detailed information on Administrative Penalties for Customs Offences and Forfeiture of Goods Implementation Directive No. 112/2008 EC, A Directive to Amend the Establishment of Compliance Review Committee and Procedures Directive No. 113/2008 E.C, Directive to Determine Temporary Importation of Goods Accompanied by Tourists Directive No. 116/2008 E.C, Directive of Transit Procedures No. 117/2008 E.C, Directive to Determine the Application of Customs Declaration Directive No. 118/2008 E.C, and Directive of Goods Examination and Goods Subject to Prior Customs Procedure Directive No. 119/2008 E C These key legal texts can be accessed at the ERCA website or purchased at the Birhanna Printing Press. For further information on Ethiopian customs, this guide is a great resource..

[Audio] With Ethiopia having several agencies that regulate the import and export of goods, it is important to be aware of them to ensure compliance with relevant laws and regulations. The Ministry of Trade is in charge of all imports and exports, issuing Import Release Permits and carrying out metrology tests for legal instruments. Additionally, the Ethiopian Investment Commission and Regional Investment Bureaus manage imports and exports related to investment, issuing and renewing investment permits, as well as providing permission letters for custom duty-free importation..

[Audio] The NBE and Commercial Banks collaborate to simplify imports and exports from Ethiopia. A sales contract is registered with either the NBE or CBs, and then an export bank permit and foreign currency approval are issued, along with a bank import permit. In addition, a letter of credit, open letter of credit, advance payment, and purchase orders can also be granted..

[Audio] Ethiopia has a unique set of customs regulations to help protect its agricultural output and make sure that imports and exports meet safety and quality standards. The Ministry of Agriculture and Natural Resources is responsible for overseeing this regulation, as well as issuing necessary permits and certificates. This includes phytosanitary certificates for re-exports, veterinary health certificates for live animals, export permits for animal feed, pre-import permits for plants and plant products, fertilizers and pesticides, and import release permits for both plants and pesticides. Knowing and understanding these regulations will help ensure that any trade activity with Ethiopia is well-informed and successful..

[Audio] It is essential to carefully research regulations related to import and export of goods in Ethiopia prior to engaging in business in the country. The Ministry of Industry is responsible for granting duty drawback authorization letters, issuing and renewing export trade duty incentive schemes certificates, as well as approving of raw material supply contracts agreements. Additionally, the Ministry of Mines, Petroleum and Natural Gas is responsible for issuing export permits and customs duty and tax free support letters..

[Audio] There are several regulatory agencies in Ethiopia that assist with managing imports and exports. These agencies issue permits for certain goods like vehicles and radiation-emitting machinery, and certify the quality of other goods such as meat. It is crucial for companies engaging in Ethiopian imports and exports to be aware of the regulations and permits in place. This slide provides an overview of the relevant agencies and their duties..

[Audio] Ethiopia is a unique country with its own rules and regulations when it comes to imports and exports. It is important for anyone interested in trading with Ethiopia to be aware of the relevant regulatory agencies and their responsibilities. As you can see on this slide, there are 10 and 11 regulatory agencies that regulate imports and exports, respectively. These agencies have duties such as issuing pre-import and export permits, health certificates, free sale certificates, and lists of registered drugs. It is essential to understand the regulations and government requirements when it comes to trading with Ethiopia, so you can be sure to do business in a safe and compliant manner. Thank you..

[Audio] Ethiopia is known for its rich culture and variety of customs regulations. To help you understand the intricacies of the regulations, this guide provides a thorough overview of the main regulatory agencies in charge of imports and exports. A further breakdown of the agencies, areas of responsibility, and corresponding duties can be found in the table included in this guide..

[Audio] It can be difficult to understand the complexities of Ethiopian customs regulations. To gain a better understanding of the import and export landscape, it's helpful to have an understanding of which regulatory agency is responsible for which area. This table provides information regarding the agencies responsible for regulating imports and exports, along with their individual duties. It's important to be aware of the regulations that are applicable to you, while taking the time to plan ahead when dealing with such regulations..

[Audio] The Ethiopian Chamber of Commerce and Sectoral Association (ECCSA) are responsible for issuing Certificates of Origin for exports to country members of COMESA, and any other countries with no preferential treatment agreement. Their role in facilitating international trade between Ethiopia and other countries is paramount, as Ethiopia is known for its vibrant customs and regulations related to imports and exports..

[Audio] To import goods into Ethiopia, an import license or an investment license must be obtained from the Ministry of Trade and Industry. After that, a pre-import permit is necessary for certain restricted goods. Payment issues must also be arranged, as well as the collection of commercial documents necessary for the customs declaration. Subsequently, the customs declaration must be prepared, submitted, and an import customs clearance obtained; service charges must also be paid. To complete the import process, the goods must be exited from the customs warehouse and the clearance declaration submitted to the National Bank of Ethiopia..

[Audio] In order to import something into Ethiopia, an import license is required. The necessary paperwork for this includes a Tax Identification Number, documents that verify the capital set aside for the commercial activity, and if the applicant is a foreign investor, proof of investment and residence permits. Now, let us explore how technology is helping educators and students in the classroom..

[Audio] A valid business registration certificate is needed to do business in Ethiopia, and this certificate is issued via manual process which requires one to visit the government offices in person. Certain goods may require a pre-import permit, and Table 2 can be used to find out which goods and the agencies that issue these permits. Research should be done on the regulations of goods one may be importing, to ensure that the process is legal and runs smoothly..

[Audio] Knowing which goods have pre-import restrictions in Ethiopia is of utmost importance. For example, pharmaceuticals and medicine, along with medical supplies and instruments, need to be certified by the Food, Medicine and Health Care Administration and Control Authority before they can be imported. Veterinary drugs and animal feed are under the purview of the Veterinary Drug and Feed Administration and Control Authority. Lastly, communication equipment is supervised by the Information Network Security Agency..

[Audio] A variety of regulations regarding restricted goods must be taken into account when planning a visit to Ethiopia. The Ministry of Communications and Information Technology regulates telecommunication and network equipment, as well as radiation emitting equipment and radioactive sources. The Ethiopian Transport Authority is responsible for regulations regarding vehicles. It is suggested that travelers taking the regulations into consideration when planning a trip to Ethiopia..

[Audio] Obtaining a pre-import permit from the relevant regulatory agency must be done prior to initiating the import procedure. Foreign currency approval must be acquired taking into account the foreign exchange regulations, and the payment arrangements should be agreed upon with the bank. Ensure all necessary steps are completed to ensure the successful import of the goods..

[Audio] Importing goods to Ethiopia often relies on the accuracy of paperwork and several other requirements. A valid business license and a pro-forma invoice, indicating the imported goods, their unit prices, quantity and total price, must be produced and an approval must be requested through the bank in which the importer has an account. Moreover, it is important to keep in mind that additional fees may be applicable to the transaction. Lastly, the amount of time needed to get such approval will vary with the amount of foreign currency requested and the approval must be made manually..

[Audio] When importing goods in Ethiopia, there are several payment methods available, such as Letter of Credit (L/C), Cash against Document (CAD), and Advance Payment. For L/C, the bank agrees to pay a certain amount of money within a set time frame and the importer must also submit documents necessary for the release of the goods from customs. For CAD, the bank provides the importer with the documents necessary for the release of the goods from customs after full payment is made. Lastly, for Advance Payment, the importer can order the bank to pay the seller through a SWIFT transfer before shipment or service rendering..

[Audio] In order to successfully conclude an international business transaction, it is essential to ensure the payment for imports is secured. To achieve this, importers need to secure the necessary documents and payment options, such as having an updated account with the bank and the required authorised foreign currency. After these are acquired, the goods can be shipped and the custom formalities finished..

[Audio] When importing to Ethiopia, there are several documents that must be taken into account. A transportation document, such as a bill of lading, air way bill, or truck way bill, and an invoice to illustrate the value of the goods imported are necessary. Additionally, a bank document like a Letter of Credit, CAD, or confirmation of advance payment/TT is required, as well as a packing list indicating how the goods are bundled for transport and a certificate of origin showing where the goods were made. There may also be further documents, including pre-import permits issued by regulatory entities and duty free permits for investment goods, demanded. Most of these documents can be obtained from the supplier and/or bank..

[Audio] Ensuring you understand the customs process is essential for a successful import transaction into Ethiopia. Filling out the customs declaration form requires exact detail on the goods being imported, their value, and the taxes and duties to be calculated. The CIF value, which is the sum of the transaction value, transport charges, insurance, and other related charges is used to determine the duty rate, which can range from 0 to 35%. To avoid any problems, it is important that the importer or their agent are aware of these regulations prior to transportation and shipment..

[Audio] It is important for professionals to be aware of applicable taxes and duties when importing goods into Ethiopia. For example, excise tax is imposed on luxury items and basic goods whose demand is not affected by price changes, ranging from 10-100% depending on the item. Furthermore, a value added tax of 15% is applied to the sum of the CIF value, customs duty, and excise tax. Lastly, a sur tax of 10% is applied to all imports into Ethiopia, excluding petroleum and lubricants. Knowing these taxes and duties beforehand can help guarantee a smooth import process..

[Audio] In Ethiopia, importers are obligated to adhere to particular steps to figure out the duties and taxes to be paid for imported goods. Categorizing the goods properly to determine the corresponding import duty, evaluating the goods, and computing the applicable taxes are all included. Note that the withholding tax collected on imported goods can be used to reduce the taxpayer's income tax responsibility for the year. Therefore, this is not a tax on its own but is rather a (partial) guarantee for the payment of income taxes..

[Audio] Ethiopian Customs Guide details the procedure for tariff categorization of imported goods. Adopting the International Convention on the Harmonized Commodity Description and Coding System (HS), the Guide splits goods into two schedules and applies preferential tariffs for COMESA member countries. This assures that goods imported in Ethiopia are accurately categorized and the applicable duty and taxes are rightly applied..

[Audio] When importing goods into Ethiopia, it is essential to identify the tariff classification number as well as the customs value. This can be done by consulting the tariff book, the ERCA website, or by obtaining binding information directly from ERCA. The Customs Proclamation outlines 6 different methods that can be used to determine the customs value of goods, and it is important to be aware of these methods as they will significantly affect the amount of duty and taxes payable..

[Audio] To accurately calculate duties and taxes payable, lookup the applicable percentages in the tariff book or online and multiply them with the duty paying value. Alternatively, Ethiopia Revenue and Customs Authority's website provides an online tax calculator that can do so based on the Harmonized System Code and Cost, Insurance and Freight value..

[Audio] Importers of goods transported through multi-modal transport must submit the customs declaration to the Ethiopian Revenue & Customs Authority office of destination, along with necessary documentation, for the clearance of the imported goods. Such action is necessary to ensure the smooth flow of the cargo..

[Audio] When it comes to making an import to Ethiopia, there are some important customs regulations to be aware of. Firstly, importers must pay the amount of duty and taxes, making use of a cash payment order from a bank. Additionally, the declaration forms can be found on the ERCA's website or at the customs offices. For unimodal transports -imports carried out in a single mode of transport- the importer or his/her agent must pay the duty and taxes prior to the start of transit and submit a transit declaration to the ERCA office of destination. With this information, you should now be well-prepared for making imports in Ethiopia. Thank you for your attention..