For this the first step is to collect the necessary

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necessary customs formalities. For this, the first step is to collect the necessary commercial documents from his/her bank (in case of L/C or CAD) or directly from the supplier (in case of advance payment). 10 The delinquent list is a register held by the NBE of account holders whose cheques have been dishonored repeatedly and whose accounts are closed by banks. 11 These will normally include the documents required for the foreign currency application as well as the foreign currency approval, an insurance certificate, the regulatory permit (for products requiring pre-import permit), and ownership certificate from country of purchase (for used vehicles), an original price confirmation (for used commodities), a written waiver (in case of shipment by a foreign vessel), and an undertaking letter for the entry of goods (in case of advance payment). 12 For more information on customs warehousing please see section 7 of this guide.
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ETHIOPIAN CUSTOMS GUIDE - MARCH 2017 21 13 See step 6 below and section 5 of this guide for details on how to complete and submit a declaration. The following documents are necessary for the preparation of a customs declaration: 13 Transportation document such as bill of lading, air way bill or truck way bill; Invoice which describes the value of imported goods; Bank document, i.e. L/C, CAD, confirmation of advance payment/TT; Packing lis t which describes how the goods are packed during transport; Certificate of origin which describes where the goods were originally produced; Other documents as required, such as pre-import permits issued by regulatory agencies and duty free permits for investment goods. With the exception of the other documents, all documents will be obtained from the bank and/or the supplier. 5. Prepare customs declaration The importer or his/her agent is required to fill in the clearance customs declaration, indicating the type of import regime, detailed data or information about the imported goods, and also tariff classification and customs valuation, which leads to determining the import duties and taxes. According to the Ethiopian tax laws the following duties and taxes are levied on imported goods: Customs duty is normally calculated as a percentage of the duty paying value, also known as CIF value. This is the sum of the transaction value (cost of goods), transport charges paid to
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ETHIOPIAN CUSTOMS GUIDE - MARCH 2017 22 transport the good from the original port of loading to the port of entry in Ethiopia, the transport insurance paid and other charges such as loading and unloading charges, port charges, etc. The duty rate varies depending on the type of imported goods and ranges from 0-35%. Excise tax is charged on selective goods such as luxury goods, basic goods demand for which is hardly affected by price changes, goods that are hazardous to health, etc. The excise tax is computed on the basis of the CIF value plus the amount of the customs duty payable. The rate of the excise tax varies depending on the type of imported goods, from 10%-100%.
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Christopher Reinemann
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