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Anybody who wants to import to Ethiopia should know the import procedures in relation to the preshipment inspection on goods imported from China and applications submitted to commercial banks in Ethiopia to obtain Import Permit; in addition, an importer in Ethiopia should know the modes of payment allowed for import, documentation requirements to effect payment and document checking and verification.

An importer who wishes to import goods to Ethiopia should pay through the commercial banks. All payments above USD2000 should be done through Letter of Credit or Cash Against Document. Preshipment inspections apply for all imports from China. The procedures needed to start an Import Trade and the frequently asked questions to start business in Ethiopia are found in the Business Startup page; procedures and requirements regarding payment through banks and preshipment inspection on goods imported to Ethiopia are found below.

Pre-shipment Inspection:

Goods imported are not required to be inspected prior to shipment except when they are imported from China or if the importer and the supplier have agreed to do that.

Pre-shipment Inspection on goods imported from China:

The Ministry of Trade and Industry has made arrangements with China Inspection and Quarantine Bureau (CIQ) so that the latter would carry out the inspections prior to shipment and issue the quality certificates.

Terms and Conditions

1. Pre-shipment Inspection requirement on all goods purchased from China implemented with effect from January 1, 2007
2. ­ Pre-shipment inspection certificate is one of the documents required to effect import payment from China.
3. ­ Pre-shipment Inspection certificate requirement is mandatory for all import purchases made from China in excess of USD 2,000 -
4. ­ Banks are required to insert requirement in the LC and also to insure that purchase order transmitted clearly depict to have CIQ inspection requirement.
5. ­ Banks can not accept documents without CIQ certificate if goods are imported from China.

Waivers issued

1. In the event of any discrepancy on the CIQ certificate issued or if goods are imported without being inspected the case shall be referred to Quality and standard Authority of Ethiopia.
2. Any waiver or explanation given in favor of an importer shall be issued to the bank holding the document pending receipt of clarifications.
3. The Ministry of Trade & Industry has issued its mandate to Quality and Standards Authority of Ethiopia to examine the nature of discrepancies and to issue its decisions by looking into the cases as may be appropriate.
4. Banks have accordingly been advised that discrepancies can be cleared or waivers can be made provided a letter of authority is received from the Quality and standardization Authority.

Import Payment

Foreign exchange can be availed by banks to any importer provided they can present one of these

1. Import License issued by Ministry of Trade and Industry (MOTI)
2. Industry License issue by MOTI (If applicable)
3. Investment License issued by Investment Agency

Applications submitted for import should be accompanied by the Proforma Invoice / contracts from suppliers stating

1. The type of commodity
2. Quantity of the commodity
3. Price per unit
4. FOB amount
5. Freight if any
6. Other charges
7. No insurance payment is allowed for payment in Foreign Exchange, so the importer should make insurance arrangement locally.

Mode of payment allowed for import

1. Letter of Credit
2. Cash against document
3. Advance payment up to USD5000

Documentation requirements to effect payment:

It is important that the required sets of documents that should be presented by the supplier to demand payment should be mentioned in the LC or Purchase order. The following are mandatory for payment and always mentioned in the LC or Purchase order:

1. A final invoice (commercial invoice) attested by the chamber of commerce of the country of the supplier
2. Original sets of Bill of lading, Airway Bill, Truck way bill, Railway Manifest (depending on the mode of transportation)
3. Country of origin invoice attested by the chamber of commerce of the country of the supplier
4. Packing list
5. Certificate of quality where appropriate

Importers who wish it import using CAD

1. Should first get approvals of the their Bank on the purchase order they wish to pass to the supplier
2. The purchase order should clearly sate document requirements and certificate to be attached.
3. Shipping documents normally required for import payments
4. Payment can only be released on CAD provided the importers get the prior approval from its bank.

On Document checking and verification

1. Banks shall have the responsibility to check documents and insure that goods shipped are in accordance with the L/C term or the purchase order issued (in case of CAD) which should clearly sate the list of documents that should presented .
2. If the documents presented are in compliance with the letter of credit terms pr the purchase order approved (in case of CAD) then the documents shall be accepted and the payment will be released. If not, it will be kept in suspense pending receipt of clarification and amendments.

Important offices to acquire information on procedures on foreign currency payment and preshipment inspection:

The National Bank of Ethiopia:
Location: At 'Biherawi' near the National Theatre on the way from Biherawi to "Goma Quteba'
Phone: +251 11 5517430,
Website:http://www.nbe.gov.et/
P.O Box:5550, Addis Ababa, Ethiopia

Quality and Standards Authority of Ethiopia:
Location: On the way from Imperial Hotel To Megenagna, adjacent to AMCE
Phone: +251 11 6460525,
Fax: +251 11 6460880,
E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it , http://www.qsae.org/
P.O Box: 2310, Addis Ababa, Ethiopia.

Different Commercial Banks in Ethiopia:
please check our business directory