Remittance above 90 days will put name of exporter in

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remittance above 90 days will put name of exporter in delinquent list freezing further exports until proceeds are received. Application for Quality Testing and Certification: When export products are ready, make arrangements for suitable packaging and apply to the Quality and Standards Authority of Ethiopia for quality testing, and acquire the Export Authorization Certificate. Customs Declaration: To avoid costly delays, the exporter declares all facts about the export consignment, and all supporting original documents should be forwarded to the Customs Clearing Agents to enable customs formalities and authorization of the dispatch of the export goods. Accordingly, the exporter must hand over the Export Permit, the copy of the Customs Declaration Annex form, the Ethiopian Customs Declaration form, the Certificate of Origin, and the special movement forms/certificates (the EURI Movement Certificate and the GSP form A) to the clearing agents. Exporters, VAT and VAT Registration According to the Value Added Tax Proclamation (285/2002) and the Regulation by the Council of Ministers on VAT (Regulation 79/2002), all exports of goods and services are liable to VAT at the zero rate. This means that VAT is charged at 0% (or no VAT has to be charged). However, more importantly an exporter is entitled to reclaim the VAT on all the goods and services purchased to produce the exports. But since this still means an exporter is still making taxable supplies even at a zero rate, the law requires the exporter to register if the turnover exceeds the registration limits. 2. Export Business Registration The opening of a business in Ethiopia requires a compulsory registration prior to holding a business license. However, principal registration takes place only once, regardless of undertaking different commercial activities. The export trade business that requires registration and licensing by the Federal Ministry of Trade and Industry can be carried out through the formation of different types of business organizations such as Sole Trader, Partnership, Share Company, Private Limited Company, Public Enterprise and Cooperative Societies. Registration Procedure In the registration process, all of the required documentation and application forms should be signed by the persons who subscribe to the declaration and be submitted to the Ministry of Trade
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and Industry for verification and approval. When this is done, the documents are sent to the Ministry of Justice for certification and then to the Ministry of Information for public announcement of the business formation in the national newspapers. Upon the completion of this, the Ministry of Trade and Industry will issue the Principal Registration Certificate. 3. Obtaining an Export License Having registered, an application for export license should be submitted to the Ministry of Trade and Industry who in turn issues the export license. Agricultural commodities, live animals and other non-value added export products are allowed only for domestic investors. The documents
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