About the Training Institute

Motto: "Enhancing Capacity by Imparting Knowledge."

Addis Chamber Training Institute offers demand-driven business trainings to members of the local business community in order to help them acquire the necessary knowledge and skills that lead to success in today's challenging business environment. The trainings delivered by the Institute focus on communication skills, executive and leadership development, financial management and accounting, management and human resource development, international trade, marketing and customer service, project and program management and logistics & procurement management. These trainings are offered by professional trainers who have extensive industrial experience and having a minimum of second degree in their fields of specialization. As the number of participants and trainings are increasing every year, our service is becoming more popular in Addis Ababa. In response to the ever changing business environment, we have been making our service flexible in order to optimize a win-win strategy in terms of both cost and value. We are currently offering different trainings to our clients. The major categories of trainings delivered by ACTI are the following:

1. Regular Trainings: These trainings are offered at our Training Hall where members of the business community from different companies participate by receiving invitation letters from the Chamber by fax or email. We have planned 66 training programs for the 2012 Ethiopian Fiscal Year. Each training under this program is conducted for five half days from Monday to Friday.

2. Regular Trainings at Customers’ Premises: These types of trainings are delivered to our customers at their respective premises from the annual training program.

3. Customized Trainings either at the Chamber's Training Hall or at the Customers’ Premises:These types of trainings are organized by customizing trainings to the particular operational needs of businesses. The venue of the trainings can be either at the Chamber's Training Hall or at the Customers’ Premises. The duration of the training depends on the course requirements and our clients’ needs.

Registration:

If you are interested to participate in any one of our training programs, please register at Addis Chamber Training Institute, settle payment at the Finance Department and attend the training based on the schedule.

There are currently four staff in the Training Institute:

  • Desalegn Dejen: Director, Addis Chamber Training Institute
  • Assefa Kassa: Training Program Operations Coordinator
  • Helina Tilahun:  Senior Program Operations Expert
  • Melika Mohammed: Program Operations Expert

Contact Address

Addis Chamber Training Institute (ACTI)
Addis Ababa Chamber of Commerce and Sectoral Associations
Mexico Square, Chamber Building, Ground Floor
Telephone: 011 551 38 82 / 011 552 82 04 / 011 551 80 55 ext. 229
Fax: 011 552 82 04 / 011 551 14 79
P.O.Box: 2458

E-mail: training@addischamber.com

Training in the Class

Training in the Class

Training Certification

Training Certification

Articles on ADR

Lists of Arbitration Articles:-

AI council

Strengthening Corporate Governance in the Arbitration Institute!

(By Yohannes Woldegebriel)

On its regular session last September 21, 2010, the Board of Directors of the Addis Ababa Chamber of Commerce and Sectoral Associations took yet another action toward enhancing the Arbitration Institute and in order to promote its credibility and confidence among its customers. The board approved the appointment of 11 professionals to serve as members of the Council, the supreme organ of the Arbitration Institute,. It is recalled that on June 16, 2009, the board adopted the Procedural Rules that established the Institute “attached to the AACCSA” but, to use the phrase of article 8 of the rules, “an independent organ in its functions.”
Following the adoption of the procedural rules, the Arbitration Institute prepared a guide line for the recruitment of candidates to Council membership. This guideline consists of 10 articles providing among others principles of selection, representation of major economic sectors, minimum academic qualifications and experiences, requirements for integrity and good conduct and independent review and evaluation of the selection of candidates.
Last year, although much effort had been exerted to recruit, solicit for the selection of nominees and present to the Board of Directors for further action, the board criticized the process of selection, rejected the nomination and instructed the secretariat to follow more transparent procedures of candidate nomination. In accordance with the instruction issued by the board, the guideline for the selection and nomination of members of the council was thoroughly revised and identification of 9 relevant professional and business associations that are potential customers of the Institute was sought to help nominate members.
Subsequently, a letter was prepared and sent requesting each selected association to nominate members that are capable of representing their constituency in addition to fulfilling the requirements laid under the guideline for the selection and nomination of council members. In order to adequately inform the daunting task awaiting for each candidate, the procedural rules of the institute was also attached. To the dismay of the chamber however, four out of the nine associations properly respond to the request. Mean while the chamber in general and AACCSA AI in particular would like to seize this opportunity to thank those associations that seriously considered our request and respond positively.
The process of soliciting the right nominee from each selected business and professional associations took unduly and frustratingly long time. However, it was gratifying to get the right candidates from the sectors that are most frequent users of the Institute. Following serious examination, a total of 11 nominees were proposed for Council membership of the Arbitration Institute and the board issued its approval. We have listed hereunder names and profession of each of the appointed members of the council.

  1. Mr. Eshetu Erana Lawyer with extensive experiences in the banking sector.
  2. Mr Million Alemu Lawyer with extensive experiences in the banking sector.
  3. Mr Tilahun Abay Banker and CEO with extensive experiences in the banking sector.
  4. Engineer Tesfaye Workineh Civil Engineer with extensive experiences in the construction sector.
  5. Architect Begziabher Alebel architect and with extensive experiences in building architecture.
  6. Mr. Tefera Wondimu Insurance professional with extensive experiences in the Insurance sector.
  7. Mr. Shiferaw Bante Insurance professional with extensive experiences in the Insurance sector.
  8. Engineer Tadesse Bekele professional in Civil and infrastructure engineering and owner of a construction company.
  9. Mr. Taye Nigatu Advocate and attorney at law with vast knowledge of the laws of the country
  10. Engineer Wolde Amanuel Gessese civil engineer with extensive experiences in various projects.
  11. Mr. Yosef Burqa Management consultant with extensive experience in shipping line and insurance companies

The Addis Ababa Chamber of Commerce and Sectoral Associations Arbitration Institute (AACCSA AI) is also honoured to congratulate the newly appointed members of the Council for their willingness and commitment to take up and discharge their responsibility as members of the council entrusted by the revised arbitration and procedural rules of our chamber. The appointment by the AACCSA board of directors of the council members is a historic action that has transformed the governance of the Institute. This appointment is yet another unique and unprecedented act for an Arbitration Institute whose establishment and legal mandate as the only private dispute resolution body is the first and the only in the modern legal history of the country.
The AACCSA AI Council is a supreme governing body that oversees the activities of the Institute. Although the day to day activities of the AACCSA AI is carried out by the secretariat, council members are mandated among others, to provide directions, supervise and follow up the secretariats activities, give decisions within their competence, issue instructions, give delegations and receive reports, to ensure expedited resolution of cases, transparency and accountability of the Institute as an arbitration body and alternative to the conventional federal or state courts. Council members have also the duty to maintain the integrity, credibility and acceptance of the Institute as a reliable dispute resolution organ for all public and private customers. In a nutshell, the appointment and commencement of the activities of Council members is a great stride forward in the realization of corporate governance that promote the credibility and institutionalization of the services of AACCSA AI that will contribute for peaceful and amicable settlement of commercial disputes.


New Era ushered in the Arbitration service
By: Yohannes WoldegebrielOn the 1st of January 2011, the Addis Ababa Chamber of Commerce and Sectoral Associations Arbitration Institute (AACCSA AI) organized an event that signaled a new era for the whole Ethiopia in the sphere of arbitration and alternative dispute resolution. In this event, the newly appointed members of the AACCSA AI Arbitration Council assumed their responsibility and executed oath of fidelity to serve the institute and the official launching of their service was announced in a fabulous ceremony held at Kings Hotel Pushkin square, Near Sar Bet.
This event was conducted in the presence of more than 70 representatives from private and public institutions, professional associations, academicians and the media. President of AACCSA, Ato Ayalew Zegeye and Secretary General Teshome Beyene, were in attendance as guests of honours. This event was accompanied by the presentation of two study papers of topical issue that was superbly and professionally moderated by the renowned Ethiopian academician cum lawyer, Professor Fissehatsion Mengistu and heatedly debated by participants.
It is recalled that the Board of Directors of AACCSA appointed 11 members of the Arbitration Council following careful examination of the guideline for their selection, nomination and representation of their respective trade. The Arbitration Institute Council is the supreme governing body that is mandated with a host of powers, duties and responsibilities. In accordance with the procedural rules of the AACCSA AI, Council members are expected among others, to confirm and dismiss the appointment of arbitrators’ conciliators, mediators and adjudicators, decide on the form of awards, issue extension of time on arbitration and other alternative dispute resolution proceedings give ruling on challenges filed against any arbitrator etc….
The appointment of arbitrators, mediators, conciliators and adjudicators is almost daily phenomena throughout the country for the resolution of all commercial and non commercial disputes in accordance with the contractual agreement entered between disputing parties or as required by law. Such appointment may be made by disputing parties, body corporate, government offices or court judges in accordance with contractual agreement or applicable laws. Some private or government bodies or individuals may also seek such appointments from the Chambers of Commerce established at national, regional and city level.
However, one may wonder how such appointments are conducted under our legal system by federal or regional courts and contracting parties. Indeed the basic principles for the appointment of arbitrators are provided under article 3340 of the Civil Code. An arbitrator as an administrator of justice is primarily required to be impartial and independent. Impartiality and independence are critical attributes for an arbitrator in order to render fair, equitable and just orders or awards. Although the Ethiopian Civil Code is not clear enough regarding qualification of the arbitrator, it is another vital and demanding component necessary to reach to proper and correct decision.
Despite the incorporation of some cardinal principles for the appointment of an arbitrator that are widely recognized and practiced throughout the world, how such principles are put in practice is perhaps the hardest exercise. The law does not provide the means for the verification of the impartiality and independence of the arbitrators. Courts may require the arbitrator to execute an oath under the pain of perjury, to ensure the impartiality and independence of the parties. In the majority of cases however the onus of disproving the impartiality and independence of arbitrators is left to parties.
Disproving the impartiality and independence of arbitrators is on the other hand, a very elusive issue that is sometimes hard to get a definitive evidence to buttress the allegation. No matter how difficult it may be, it will be a mockery and travesty of justice to simply ignore these principles and allow arbitrators to exercise judicial malfunctions.
The crux of the matter is how are arbitrators appointed in present day Ethiopia? And what mechanisms or devices are available to ensure their impartiality and independence? It is a common knowledge that there are no systematic and well structured methods for the appointment of arbitrators in present day Ethiopia. This is particularly so in most ad hoc arbitration, conciliation and mediation of commercial and non-commercial disputes. Although some courts maintain the list of arbitrators, succession liquidators etc… by and large, it is the discretion of the judge to make the selection and appointment. Therefore, in the majority of cases the appointment of arbitrators for the resolution of disputes is carried out by personal acquaintances, friendship, ethnic, religious or even political affiliations. It is not uncommon to appoint arbitrators that have affinal or consguinal relations with the disputing parties’ relatives as the Amharic version of the civil code seemed to permit and even their own lawyers that have financial stake or conflict of interest on the dispute. What is more, the appointment of arbitrators is primarily left to party’s legal advisors, advocate or legal departments.
Since its establishment in 2002, one of the services provided by AACCSA AI is to appoint arbitrators, conciliators, mediators and adjudicators when so requested by one or more parties or designated as an arbitrator appointing body in a contract. Utmost efforts have been exerted to appoint qualified, impartial and independent arbitrators from the list of arbitrators maintained in the Institute thus far. Nevertheless since chambers the world over, are often designated as credible and reliable arbitrator appointing bodies in countless commercial contracts, a more transparent, accountable and reliable mechanism for the appointment and parties grievance handling procedures is justified as well as necessary.
As a result the official commencement of the activities of Arbitration Institute council members fully and positively responds to the glaring legal, practical and institutional gaps in the legal system of the country. From now on private or public bodies and individuals have a reliable partner to provide desperately needed dispute resolution services through arbitration and other alternative dispute resolution mechanisms in general and a transparent and accountable arbitrator appointing body worth reckoning. Therefore gone are indeed the days when the appointment of arbitrators is forced to pass through dubious, suspicious and untrustworthy practices or capricious will and decisions.
The motto of our chamber is Promoting corporate governance in all areas of the business community. The launching of the activities of the Arbitration Institute Council members is a step forward toward the realization, in practice, of the core principle of corporate governance.

About Arbitration Institute (AI)

Established in 2002, the Addis Ababa Chamber of Commerce & Sectoral Associations Arbitration Institute (AACCSA Al), is a pioneer and the first of its kind in the country. It was setup with the aim of realizing and providing Arbitration and other Alternative Dispute Resolution (ADR) mechanisms legally mandated to the Chamber since 1947. AACCSA Al provides its customers the following services;
  • Facilitating the settlement of commercial disputes in accurate accord with the arbitration rules of the chamber;
  • Organize and offer workshops, seminars and training services on arbitration and ADR mechanisms;
  • Providing adjudication services for construction disputes;
  • Providing mediation/conciliation services;
  • Providing advisory services concerning commercial arbitration and other ADR mechanisms in Ethiopia;
  • Providing the Arbitration institute good offices to ad hoc arbitration services at a reasonable cost;
  • Conducting studies on arbitration and ADR procedures;
  • Serving as an appointing authority when so designated in commercial contracts;
  • Contract drafting and reviewing services;

AACCSA Al is well equipped with all necessary office facilities and has suitable environment for arbitral proceedings and other ADR settlement mechanisms, such as hearing, recording & transcription services, along with excellent case management and secretarial services. Come and visit us before and after you proceed to the courts at the Chamber of Commerce building infront of Mexico Square second floor room number 219. We are ready to provide you with prompt resolution of any of your business disputes.

Trade Licence and Registration Procedure

Business Registration and Licensing Procedure

Doing business in Ethiopia requires business registration and licensing. The Ethiopian government   with the objective of improving the existing commercial registration, implementation and business licensing rules the Ethiopian Commercial Registration and Business Licensing Proclamation No.  686/2010” has been issued. The Ministry of Trade and respective trade bureaus in different regional administration of the country are responsible bodies for business registration and license. Click here for more on the procedure.

Export Incentives

1. Investment Incentives

The intentions of granting investment incentives under Minister Regulation No. 270/2012 for domestic and foreign investors are to increase and speed up the flow of capital, technology transfer, employment creation and over all development of the country. The major incentives granted on the regulation are

  • 30 % additional income tax exemption for new enterprises invest in low development areas;
  • year base income tax exemption for different investment areas depending on the location of investment,
  • customs duty exemptions on capital goods and construction materials and
  • motor vehicles customs duty exemptions grants for selected investment areas with minimum investment capital of Birr 2 million.

2. Income tax exemption for new enterprise

Any investors establishing new enterprises in the following locations are entitled to an income tax deduction of 30% for three consecutive years after the expiry of the income tax exemption period specified in the Schedule.

  • the State of Gambela People;
  • the state of Benshangul/Gumuz
  • the state of Afar;
  • the State of Somali;
  • Guji and Borena Zones of State of the Oromia; or
  • South Omo Zone, Segen (Derashe, Amaro, Konso and Burji) Area People Zone, Bench-Maji Zone, Sheka Zone, Dawro Zone, Kaffa Zone or Konta and Basketo Special Woredas of the State of Southern Nations, Nationalities and Peoples.

3. Motor vehicles exemption from customs duties

Exemption of motor vehicles from Customs duty implements according to investment board directives No. 4/2005. The investment areas are manufacturing, agriculture, construction, star hotels including resorts, motels, lodges and restaurants, information communication technology, tour operating and electric generation, transmission and distribution.

The exemption applies for selected investment areas and specifications of the motor vehicles are;

  • Motor vehicles includes trucks attached with refrigerators or all kinds of garbage disposal,  pickup, station wagon, bus, minibus, delivery van, and motor cycle,
  • Passenger bus
  • number of seats at least not less than 30,
  • Minibus number of seats not greater than 15 and less than 10,
  • Pick up includes 2WD or 4WD, its cylinder capacity not more than 4 for investment location in Addis Ababa and special zone of Oromia region and 6 cylinder  and loading capacity between 500 kg and 1500 kg for other areas,
  • Delivery van loading capacity  is between 3000 up to 5000 kg and covered
  • Truck loading capacity  is more than 5000 kg
  • Special service motor vehicles  are those vehicles uses for special work and not use for public transport

 

Therefore, Addis Ababa Chamber of Commerce and Sectoral Association business support staffs are advising and providing highlight information on investment areas, procedures, income tax and motor vehicles customs duty exemptions to promote trade and investments.

3. Investment areas, income tax and motor vehicles customs duty exemptions

3.1. Manufacturing

  • Food industry

Food industries of meat, fish, fruit & vegetable, edible oils, dairy products, starch products, pulses, oil seeds and cereals processing excluding flour production and other food products processes are

  • exempt from income tax for 3 years and allows to import 1 pickup 1 delivery van and 2 trucks if the factory is located in Addis Ababa and special zones of Oromia region and its surrounding;

 

  • exempt from income tax for 5 years and allow to import duty free 1 pickup and 2 delivery van and 2 trucks if the factory located in other areas.
  • Manufacturing of Sugar

Sugar manufacturing exempts from income tax for 5 years if the factory is located in Addis Ababa and Special zones of Oromia region and surrounding and 6 years income tax exemption and 2 pickup, 2 delivery van and 2 trucks allows to import duty free if the location is in other areas.

  • Manufacturing of Sweets

Chocolates, candy, biscuits and other sweets excluding ice crème and cakes are exempt form income tax for 1 year and allows to import I delivery van if the manufacturing location is in Addis Ababa and special zone of Oromia region and surrounding;

2 years income tax exemption and importing of 1 pickup and 1 delivery van allows if the location is in other areas.

  • Manufacturing of Macaroni

Macaroni, pasta and similar products are exempt from income tax for 3 years and allows to import duty free 1 pickup and 1 delivery van  if the factory location is in Addis Ababa and special zone of Oromia and its surrounding and

5 years income tax exemption and allows importing 1 pickup 1 delivery van and 1 truck if it is in other areas.

  • Manufacturing baby food and others

Manufacturing of baby food, roasted and ground coffee, soluble coffee, tea, yeast, vinegar, mayonnaise, artificial honey, iodized salt or similar food products and animal feeds are

  • exempt from income tax for 2 years and allows importing duty free 1 pickup, 1 delivery van  except animal feeds if the factory location is in Addis Ababa and Oromia surroundings and
  • exempt from income tax for 4 years and allows importing duty free 1 pickup , 1 delivery van and 1 truck if it is in other areas.

Animal feeds processing allows to import duty free 1 pickup and 1 truck if the investment area is in Addis Ababa and special zone of Oromia and surrounding and

1 pickup and 2 trucks allows importing duty free if the investment area located in other areas

3.2 Beverage Industry

  • Manufacturing of alcohol beveragewinebeer & bear maltsoft drinks, mineral water and other bottled water have 1,3,2, and 1 year income tax exemption respectively, if the factories located in Addis Ababa and special zone of Oromia surroundings and 2,4,3 and 2 years income tax exemption respectively, if the investment location is in other areas.
  • Manufacture of alcohol beverage production allows to import 1 pickup, 1 delivery van and 1 truck if the investment locates in Addis Ababa and special zones of Oromia region and its surrounding and same in other areas as well.
  • Manufacture of wine Production allows importing 1 pickup, 1 delivery van and 1 truck if the investment is in Addis Ababa and special Oromia zones and same in other areas as well.
  • Manufacture of beer and beer malt production allows importing 1 pickup, 1 delivery van and 1 truck if the investment is locates in Addis Ababa and special Oromia zones and surrounding and 1 pickup, 1 delivery van and 2 trucks are allowed in other areas.
  • Manufacture of soft drink, mineral water or other bottled water allows importation 1 pickup, 1 delivery van and 1 truck duty free if the investment is in Addis Ababa and special Oromia zones and the same in other areas.

3.3. Textiles and Textiles Products Industry

  • Preparation of spinning of cotton, wool, silk and similar textiles fibers exempted from income tax for 4 years, if the investment is located in Addis Ababa and Oromia special zone & its surroundings and 5 years in other areas,
  • Allows importing 1 pickup, 1 delivery van and 1 truck if the investment locates in Addis Ababa and special Oromia zone and surrounding and 2 pickup, 2 delivery van and 2 truck if the investment is in other areas.
  • Weaving, finishing and printing of textiles have income tax exemption for 5 years if the investment area is in Addis Ababa, special zone of Oromia and surrounding and 6 years if it is in other areas.
  • Allows importing of 1 pickup, 1 delivery van and 1 truck if the investmenet area is in Addis Ababa and special zone of Oromia and surrounding and 2 puck up and 2 delivery van and 2 trucks in other areas.
  • Finishing of fibers, yarn, warp and weft, apparel and other textiles products bleaching, dyeing, shrinking, sanforizing, mercerizing or dressing exempted from income tax for 2 years if the factory located in Addis Ababa and special zone of Oromia & its surrounding and 4 years in other areas.
  • Finishing of fabrics except bleaching, dyeing, shrinking, sanforizing, and mercerizing processes allows importing of 1 pickup, 1 delivery van and 1 truck if the investment area is in Addis Ababa and special zone of Oromia and surrounding and 1pick up and 2 delivery van and 2 trucks in other areas.
  • Other textiles finishing activities exempted from income tax for 2 years in Addis Ababa and Oromia special zone and 3 years in other areas.
  • Allows importing of 1 pickup, 1 delivery van and 1 truck if the investment area is in Addis Ababa and special zone of Oromia and surrounding and 1pick up and 2 delivery van and 2 trucks in other areas.
  • Manufacturing of knitted & crocheted fibers, made-up textiles articles, except apparel and carpet exempts from income tax for 4 years if it located in Addis Ababa and Oromia special zones and years in other areas.

Allows importing of 1 pickup,  1 delivery van and 1 truck if the investment area is in Addis Ababa and special zone of Oromia and surrounding and 2 pickup and 2 delivery van and 2 trucks in other areas.

  • Manufacturing of wearing apparel, sport wear and accessories for textiles products exempts from income tax for 5 years if it located in Addis Ababa and Oromia special zone and 6 years in other areas.

Allows importing of 1 pickup,  1 delivery van and 1 truck if the investment area is in Addis Ababa and special zone of Oromia and surrounding and 2 pickup and 2 delivery van and 2 trucks in other areas.

3.4. Leather and Leather Products Industry

  • Tanning of hides & skins  up to finished level exempted for years if it is in Addis Ababa & Oromia zones and  years in other areas
  • Allows importing of 1 pickup, 1 delivery van and 1 truck if the investment area is in Addis Ababa and special zone of Oromia and surrounding and 2 pickup and 2 delivery van and 2 trucks in other areas.
  • Tanning of hides & skins under finished level exempted for years if it is in Addis Ababa & Oromia zones and  years in other areas
  • Allows importing of 1 pickup, 1 delivery van and 1 truck if the investment area is in Addis Ababa and special zone of Oromia and surrounding and 2 pickup and 2 delivery van and 2 trucks in other areas.
  • Manufacturing of leather products, leather shoes, bags and balls and accessories production  exempts form income tax for 5 years in Addis Ababa and Oromia special zone and years in other areas
  • The above production allows importing of 2 pickup, 1 delivery van and 1 truck if the investment area is in Addis Ababa and special zone of Oromia and surrounding and 2 pickup and 2 delivery van and 1 truck in other areas except accessories.
  • Production of leather products related items including accessories  are allows to import duty free1 pickup, 1 delivery van and 1 truck if the investment area is locates in Addis Ababa and special zone of Oromia region and 2 pickup, 1 delivery van and 2 trucks allows if it is in other areas.

3.5. Wood Products Industry

  • Manufacturing of wood products (excluding saw milling, timber making, assembling and semi-finished wood products) exempts from income tax for years and allows importing duty free 1 pickup and 1 truck if the investment is in Addis Ababa and Oromia special zone and years and allows to import duty free 1 pickup and 1 truck in other areas.
  • Allows importing of 1 pickup, 1 truck if the investment area is in Addis Ababa and special zone of Oromia and surrounding and 1 pickup and 1 truck in other areas.

3.6. Paper and paper products industry

  • Manufacturing of pulp & paper products exempt from income tax for 5 years if it is in Addis Ababa and Oromia zones, and 6 years in other areas.
  • Manufacturing of pulp products only allows to import 2 pickups and 2 trucks duty free if the investment area is outside Addis Ababa and special zone of Oromia and its surrounding
  • Manufacturing of other paper products exempts from income tax for 1 year if it is in Addis Ababa and special zones of Oromia zone and 2 years in other areas.
  • Manufacturing of paper only allows to import 2 pickups and 1 delivery van, and 1 truck duty free if the investment area is outside Addis Ababa and special zone of Oromia and its surrounding.
  • Manufacturing of other paper products only allows to import and 1 delivery van duty free if the investment area is in Addis Ababa and special zone of Oromia and surroundings and 1 pickup , 1 delivery van in other areas.
  • Manufacturing of paper packages exempts from income tax for 3 years if it is in Addis Ababa and Oromia special zone and surroundgs and 4 years in other areas.
  • Allows importing duty free 1 pickup and 1 delivery van if the investment area is in Addis Ababa and special zone of Oromia and 1 pickup, 1 delivery van and 1 truck in other areas.

3.7. Printing Industry

  • Allows importing duty free 1 pickup and 1 delivery van and 1 truck if the investment area is in Addis Ababa and special zone of Oromia and 1 pickup, 1 delivery van and 2 truck in other areas.

3.8. Chemical and chemical products industry

  • Manufacturing of basic chemicals, ethanol, fertilizers and nitrogen compounds exempts from income tax for 5 years in Addis Ababa and special zone of Oromia  and 6 years in other areas.
  • Basic chemicals production allows importing duty free 1 pickup, 1 delivery van if the investment is in Addis Ababa and special zone of Oromia and surroundings and 2 pickups,  1 delivery van and 1 truck in other areas.
  • Fertilizers and nitrogen compounds production allows importing duty free 1 pickup, 1 delivery van if the investment is in Addis Ababa and special zone of Oromia and surroundings and 2 pickups,  1 delivery van and 1 truck in other areas.
  • Manufacturing of plastics, synthetic rubber in primary forms, pesticides, herbicides and fungicides exempts from income tax for 3 years if it is located in Addis Ababa and special zone of Oromia region and 5 years in other areas.
  • Manufacturing of paints, varnishes or similar coatings; printing, writing and  painting inks and  mastics, soap and detergents, cleaning and polishing preparations, perfumes and toilet preparations exempts from income tax for year if it is in Addis Ababa and Oromia special zones and 4 years in others areas.

 

  • Manufacturing of man-made fiber exempts from income tax for years in Addis Ababa and Oromia special zones and exemption from income tax for 6 years.
  • Manufacturing of other chemical products (propellant powders, explosives, photographic films and similar products) exempts from income tax for 2 years in Addis Ababa and Oromia special zones and 3 years in other areas

3.9. Basic pharmaceutical products and pharmaceutical preparation industry

  • Manufacturing of inputs of basic pharmaceutical products and pharmaceutical preparations exempts from income tax for 5 years in Addis Ababa and special zone of Oromia and 3 years in other areas.
  • Manufacturing of formulation of pharmaceuticals exempts from income tax for 4 years in Addis Ababa and special zone of Oromia region and 3 years in other areas.

3.10. Rubber and Plastics Industry  

  • Manufacturing of rubber products exempts from income tax for 3 years in Addis Ababa and special zone of Oromia regions and 5 years in other areas.
  • Manufacturing of plastic products used as inputs for construction of buildings, vehicles or other industrial inputs; plastic pipes, tubes fittings used for irrigation and drinking water supply and sewerage system exempts for 4 years in Addis Ababa and Oromia special zones and 2 years in other areas.
  • Manufacturing of plastic products except shopping bags exempts from income tax for 1 year in Addis Ababa and special zone of Oromia region and 2 years in other areas.

4. Non-metallic mineral products industry

  • Manufacturing of glass and glass products and ceramic products exempts from income tax for 4 years in Addis Ababa and special zone of Oromia region and years in other areas.
  • Manufacture of cement exempts from income tax for 4 years if the factory is in other areas.
  • Manufacturing of cutting, shaping and finishing of marble and limestone (excluding quarrying) exempts from income tax for 1 year in Addis Ababa and Oromia
  • Manufacturing of lime, gypsum and similar coating exempts from income tax for 2 years if the factory located it other area
  • Manufacturing of millstone, glass paper or sound-absorbing or heat-insulating materials exempt from income tax for 1 year if the factory located in Addis Ababa and Oromia special zone and 2 years in other areas

5. Basic Metals Industry (Excluding mining of the mineral)

  • Manufacturing of basic iron and steel exempt from income tax for 5 years in Addis Ababa and Oromia special zones and 6 years in other areas.
  • Manufacturing of basic precious and other non-ferrous metals exempt 3 years in Addis Ababa and Oromia special zone and 4 years in other areas
  • Casting of iron and steel exempt from income tax for 4 years in Addis Ababa and Oromia special zone and 5 years in other areas.

6. Fabricated Metal Products Industry (Excluding Machinery and Equipment)

  • Manufacturing of structural metal products, tanks, reservoirs and containers or steam generators
  • Manufacturing of fabricated metal products except corrugated metal sheets for roofing and nails exempt from income tax for 1 year in Addis Ababa and Oromia special zones and 2 years in other areas

7. Computer, electronic and optical products industry

  • Manufacturing of electronic components and boards exempt from income tax for 4 years in Addis Ababa and Oromia special zone and 5 years in other areas
  • Manufacturing of computers, peripheral, communication equipment, television, DVD, radio and similar equipment exempt from income tax for 3 years in Addis Ababa and Oromia special zones and 4 years in other areas.
  • Manufacturing of measuring, testing, navigating, control equipment or watching, clocks, medical equipment, irradiation, electro-medical or electrotherapeutic equipment exempt from income tax for 3 years if it is in Addis Ababa and Oromia special zones and 4 years in other areas
  • Manufacturing of optical instruments or photographic equipment magnetic and optical media exempt from income tax for 2 years in Addis Ababa and special zone of Oromia region and exempt from income tax for 3 years in other areas.

8.  Electrical Products Industry

  • Manufacturing of electric motors, generators, transformers or electricity distribution or control apparatus exempt from income tax for 4 years in Addis Ababa and special zone of Oromia region exempt from 5 years in other areas.
  • Manufacture of accumulators or batteries, electrical wires or cables, fiber optics & related products, electric lighting equipment, domestic electrical appliances and other electrical equipment exempt from income tax for 2 years in Addis Ababa and special zone of Oromia and 4 years in other areas

9. Machinery/equipment

  • Manufacture of general-purpose machinery (motor, lifting and handling equipment, pumps and similar), special-purpose machinery (for agriculture, food processing, beverage, textile and mining production and similar activities)

10. Vehicles, Trailers and semi-trailers industry

  • Manufacture of motor vehicles exempt from income tax for 2 years in Addis Ababa and special zone of Oromia and 3 years in other areas.
  • Manufacture of bodies, components for motor vehicles, trainers and /or semi-trainers and accessories for motor vehicles exempt from income tax for 3 years in Addis Ababa and special zone of Oromia region and 4 years in other areas
  • Manufacture of railway locomotives and rolling stock exempt from income tax for 2 years in Addis Ababa and special zone of Oromia zone and 6 years in other areas
  • Manufacturing of other transport equipment (boats, bicycles, motor bicycles and similar equipment)  exempt from income tax for 2 years in Addis Ababa and special zone of Oromia region and 3 years in other areas
  • Manufacture of office and household furniture excluding those made of ceramics  jewelry and related articles, musical instruments, sports equipment, games and toys and similar products exempt from income tax for 4 years in Addis Ababa and special zone of Oromia region and 5 years in other areas
  • Integrated manufacturing with Agriculture exempt from income tax for 1 year in Addis Ababa and special zone of Oromia and 5 years in other areas

11. Agriculture

  • Growing of cereals, leguminous crops and/or oil seeds and rice exempt from income tax for 3 years if the investment is outside Addis Ababa and Oromia special zones
  • Growing of vegetables and herbs exempt for 3 years in Addis Ababa and special zone of Oromia region and 4 years in other areas
  • Growing of fiber crops exempt from income tax for 5 years if the investment is  other areas
  • Growing of other annual crops( animal feed, medicinal crops, aromatic spices and similar crops) exempt from income tax for 3 years in Addis Ababa and special zone of Oromia region and 3 years in other areas
  • Production of certified seed exempt from income tax for 3 years in Addis Ababa and special zone of Oromia region and 4 years I other areas

12. Growing Medium Term Crops

  • Growing flowers, medium term fruits exempt from income tax for 3 years in Addis Ababa and special zone of Oromia region and 4 years in other areas
  • Growing of medium term spices, aromatic and/or medicinal crops (hulu, curmuma, black pepe and similar crops) exempt from income tax for 4 years in other region
  • Growing of perennial fruits(mango, avocado, banana, ornage, papaya, grapes, passion fruits and similar crops) exempt from income tax for 5 years in other areas
  • Growing of other perennial crops (rubber tree, palm, jatropha and similar crops) exempt from income tax for 6 years

13. Animal Production

  • Farming of domestic animals and production of milk, eggs, raw wool and similar products exempt from income tax for 3 years in Addis Ababa and special zone of Oromia region and 4 years in other areas
  • Farming of wild animals and production of milk, eggs and similar products exempt from income tax for 3 years in other areas
  • Farming of bees / production of honey exempt from income tax for 2 years in Addis Ababa and special zone of Oromia region and 4 years in other areas
  • Production of silk, fish farming in artificial aquaculture exempt from income tax for 3 years in Addis Ababa and special zone of Oromia region  and 4 years in other areas
  • Mixed (crop and animal ) farming exempt from income tax for 3 years in Addis Ababa and special zone of Oromia region and 4 years in other areas
  • Forestry exempt from income tax for 8 years in Addis Ababa and special zone of Oromia region and 9 years in other areas

14. Information and Communication Technology

  • Development areas to be determined by directives issued by Ministry of Communication and Information Technology
  • The areas exempt from income tax for 4 years in Addis Ababa and special zone of Oromia and 5 years in other areas
  • Electricity generation, transmission and distribution exempt from income tax for 4 years in Addis Ababa and special zone of Oromia region and 5 other areas

15. Commencement of Period of Income Tax Exemption

  • The period of exemption from income tax shall begin from the commencement date of production or provision of service by the investor;

16. Loss Carry Forward

  • An investor who has incurred loss within the period of income tax exemption shall be allowed to carry forward such loss for half  of the income tax exemption period after the expiry of such period;
  • For the purpose of calculating the period of loss carry forward, a half-year period shall be considered as full income tax period;
  • An investor who has incurred loss during the income tax exemption period may not be allowed to carry forward such loss for more than five income tax period

Income tax exemption for expansion or upgrading of existing enterprise

Any investor expanding or upgrading his existing enterprise pursuant to

Exemption from Customs Duty

Exemption of capital goods and construction materials from Customs duty

  • Any investor engaged in one of the area of investment except real estate development, publishing, export and wholesale of petroleum and its byproducts trade;
  • The investor shall submit, in advance, the list of capital goods and construction materials to be imported duty free and get approval of same from the appropriate investment organ;
  • If an investor entitled to a duty free incentive buys capital goods or construction materials from local manufacturing industries, he shall be refunded with the customs duty paid for the raw materials or components used as inputs for the production of such goods;
  • An investor eligible to duty free incentives shall be allowed to import spare parts the value of which is not greater than 15% of the total value of the capital goods within five years from the date of commissioning of his project.

 

Export Payement

Bank Payment 

Bank, being one of financial institutions, facilitates payment for merchandise shipped and services rendered, layouts funds for buyer and seller, and gives its professional advices to traders. Bank payment are very significant procedures of international trade. Applicable modes of bank payments are;

Advance Payment – ensures that payment is cleared before the goods are shipped. A bank transfer is the quickest method of clearing funds.

Cash Against Document – this is raised by the exporter and made out to the customer’s bank. It is then sent to the customer for acceptance and can be guaranteed by the bank for additional safety.

Open Account – credit terms can be 30, 60 days or more. This method of payment is recommended only when none of the above methods are suitable. Payments should be by bank transfer rather than cheque that could take months to clear.

Letters of Credit (LC)

For any company entering the international market, Letters of Credit are important payment mechanisms which help eliminate certain risks.

Types of Letter of Credit 

Irrevocable    

An irrevocable letter of credit can neither be amended nor cancelled without the agreement of all  parties (traders) to the credit.

Unconfirmed   

The advising bank forwards an unconfirmed letter of credit directly to the exporter without  adding its own undertaking to make payment or accept responsibility for payment at a future date, but confirming its authenticity.

Confirmed       

A confirmed letter of credit is one in which the advising bank, on the instructions of the issuing bank, has added a confirmation that payment will be made as long as compliant  documents are presented. A bank will make an additional charge for confirming a letter of                          credit.  In many cases, the confirming bank is located in Beneficiary’s country.

Standby Letters of Credit  

 A standby letter of credit is used as support where an alternative, less secure, method of payment has been agreed. They are also used in the United States of America in place of bank guarantees. Should the exporter fail to receive payment from the importer he may claim under the standby letter of credit? Certain documents are likely to be required to obtain payment including: the standby letter of credit itself; a sight draft for the amount due; a copy of the unpaid invoice; proof of dispatch and a signed declaration from the beneficiary stating that payment has not been received by the due date and therefore reimbursement is claimed by letter of credit.

Revolving Letter of Credit

The revolving credit is used for regular shipments of the same commodity to the same importer. It can revolve in relation to time or value. If the credit is time revolving once utilized it is re-instated for further regular shipments until the credit is fully drawn. If the credit revolves in relation to value once utilized and paid the value can be reinstated for further drawings. The credit must state that it is a revolving letter of credit and it may revolve either automatically or subject to certain provisions. Revolving letters of credit are useful to avoid the need for repetitious arrangements for opening or amending letters of credit.

Transferable Letter of Credit

A transferable letter of credit is one in which the exporter has the right to request the paying, or negotiating bank to make either part, or all, of the credit value available to one or more third parties. This type of credit is useful for those acting as middlemen especially where there is a need to finance purchases from third party suppliers.

Back-to-Back Letter of Credit

A back-to-back letter of credit can be used as an alternative to the transferable letter of credit. Rather than transferring the original letter of credit to the supplier, once the letter of credit is received by the exporter from the opening bank, that letter of credit is used as security to establish a second letter of credit drawn on the exporter in favor of his importer. Many banks are reluctant to issue back-to-back letters of credit due to the level of risk to which they are exposed, whereas a transferable credit will not expose them to higher risk than under the original credit.

Parties involved in Letter of Credit

  • The Applicant is the party that arranges for the letter of credit to be issued.
  • The Beneficiary is the party named in the letter of credit in whose favor the letter of credit is issued.
  • The Issuing or Opening Bank is the applicant’s bank that issues or opens the letter of credit in favor of the beneficiary and substitutes its creditworthiness for that of the applicant.
  • An Advising Bank may be named in the letter of credit to advise the beneficiary that the letter of credit was issued. The role of the Advising Bank is limited to establish apparent authenticity of the credit, which it advises.
  • The Paying Bank is the bank nominated in the letter of credit that makes payment to the beneficiary, after determining that documents conform, and upon receipt of funds from the issuing bank or another intermediary bank nominated by the issuing bank.
  • The Confirming Bank is the bank, which, under instruction from the issuing bank, substitutes its creditworthiness for that of the issuing bank. It ultimately assumes the issuing bank’s commitment to pay.

Letter of Credit Flow

  • Applicant approaches Issuing/ Opening Bank with LC application form duly filled and requests Issuing Bank to issue a Letter of Credit in favor of Beneficiary.
  • Issuing Bank issues a Letter of Credit as per the application submitted by an Applicant and send it to the Advising Bank, which is located in Beneficiary’s country, to formally advise the LC to the beneficiary,
  • Advising Bank advises the LC to the Beneficiary,
  • Once Beneficiary receives the LC and if it suits his/ her requirements, he/ she prepares the goods and hands over them to the carrier for dispatching to the Applicant
  • The exporter then hands over the documents along with the Transport Document as per LC to the Negotiating Bank to be forwarded to the Issuing Bank.
  • Issuing Bank reimburses the Negotiating Bank with the amount of the LC post Negotiating Bank’s confirmation that they have negotiated the documents in strict conformity of the LC terms.
  • Negotiating Bank makes the payment to the Beneficiary.
  • Simultaneously, the Negotiating Bank forwards the documents to the Issuing Bank to be released to the Applicant to claim the goods from the carrier.
  • Applicant reimburses the Issuing Bank for the amount, which it had paid to the Negotiating Bank.
  • Issuing Bank releases all documents along with the titled Transport Documents to the    Applicant

Settlements under a Letter of Credit

Sight payment, the commercial letter of credit is payable when the beneficiary presents the complying documents and if the presentation takes place on or before the expiration of the commercial letter of credit.

Deferred payment, the commercial letter of credit is payable on a specified future date. The beneficiary may present the complying documents at an earlier date, but the commercial letter of credit is payable only on the specified future date.

Acceptance is a time draft drawn on, and accepted by, a banking institution, which promises to honor the draft at a specified future date. The act of acceptance is without recourse as it is a commitment to pay the face amount of the accepted draft. Under negotiation, the negotiating bank, a third party negotiator, expedites payment to the beneficiary upon the beneficiary’s presentation of the complying documents to the negotiating bank.

The bank pays the beneficiary, normally at a discount of the face amount of the value of the documents, and then presents the complying documents, including a sight or time draft, to the issuing bank to receive full payment at sight or at a specified future date.

Advantages of Letter of Credit

  • The beneficiary is assured of payment as long as it complies with the terms and conditions of the letter of credit. The letter of credit identifies which documents must be presented and the data content of those documents. The credit risk is transferred from the applicant to the issuing bank.
  • The beneficiary can enjoy the advantage of mitigating the issuing bank’s country risk by requiring that a bank in its own country confirm the letter of credit. That bank then takes on the country and commercial risk of the issuing bank and protects the beneficiary.
  • The beneficiary minimizes collection time as the letter of credit accelerates payment of the receivables.
  • The beneficiary’s foreign exchange risk is eliminated with a letter of credit issued in the currency of the beneficiary’s country

Verification of Commercial invoice with terms in Letter of Credit

  • The merchandise description- including weight, quantity and price conform exactly with the Letter of Credit and other documents,
  • The name and address of the Importer and Exporter  are exactly as shown in the Letter of Credit,
  • The correct number of originals and copies have been presented and signed if required,
  • It is made out in the same currency as the Letter of Credit?
  • The trade term is listed per the Letter of Credit, e.g. C.I.F. C&F, FOB etc.

Verification of bill of loading with terms in Letter of Credit

  • It has been submitted with all the required originals
  • The merchandise description is consistent with the Letter of Credit
  • The points of loading and discharge are consistent with the Letter of Credit?
  • The Bill of Lading are consigned to the order of the party specified in the Letter of Credit
  • It is dated on or before the latest shipment date stipulated in the Letter of Credit
  • The Bill of Lading is endorsed correctly
  • The Letter of Credit states freight is to be prepaid, if this is clearly indicated on the Bill of Lading

Verification of Insurance document with terms in Letter of Credit

  •  Does the insurance document cover all risks specified in the Letter of Credit?
  •  Does the insured amount meet the percentage requirement of the Letter of Credit and is it in the currency of the Letter of Credit?
  • Is the issue date of the insurance document prior to the shipment date of the goods?
  •  Is the insurance document signed by or endorsed in blank by the insured or endorsed to the order of the party designated in credit?
  • Is the insurance document signed by the insurance company, underwriter or agent?
  •  Is the merchandise described as per the Letter of Credit?

Verification of Certificates of Origin Inspection

  • The documents are dated as of or before the Bill of Lading date.
  • The contents meet the requirements of the Letter of Credit
  • Verification of packing and weight Lists
  • The quantity of units/weight match that which is indicated in the  Commercial Invoice
  •  The breakdown of merchandise/weight per carton shown if requested in the Letter of Credit

Risks involved in Letter of Credit

  • Since all the parties involved in Letter of Credit deal with the documents and not with the goods, the risk of Beneficiary not shipping  goods as mentioned in the LC is still persists.
  • The Letter of Credit as a payment method is costlier than other methods of payment such as Cash Against Document
  • Open Account or Collection
  • The Beneficiary’s documents must comply with the terms and conditions of the Letter of Credit for Issuing Bank to make the payment.
  • The Beneficiary is exposed to the Commercial risk on Issuing Bank, Political risk on the Issuing Bank’s country and Foreign Exchange Risk in case of issuance Letter of Credits.

Document required by banks to export goods

  • Valid foreign trade, industry or investment license for export,
  • Copy of authenticated letter of credit or confirmation for advance payment
  • Bank permit for export of the goods duly completed, signed and sealed
  • 2 original invoices duly completed, signed and sealed.  The invoices could be chamberized as the case may be
  • A copy of sales or purchase contract.

Major mode of payments applicable in export

  • Letter of Credit (at sight and on acceptance)
  • Cash Against Document ( at sight and on acceptance)
  • The maximum allowable amount for a single permit does not exceed USD 30,000 (Thirty Thousand); however, commercial Banks may allow up to USD 200,000(Two Hundred Thousand) depending on the sales terms, the buyers dependability and credibility
  • Consignment for specific goods

The consignment sales are only applicable to perishable items such as fruits, cut flowers, un-frozen meat, live animals, molasses and others as may be approved by NBE

  • Advance Payment received in the form of:-
  • bank transfers;
  • travelers cheques bought by the purchaser from abroad;
  • Credit card/debit card; and
  • cash notes

Verification of L/C document by exporter

  • Is the L/C issuing bank reliable and reputable one that can be relied on for payment? If not, does the Letter of Credit allow for confirmation by another bank?(field 49)
  • Is the Letter of Credit irrevocable? (Field 40A) If it is not stated, the L/C is irrevocable.
  • Are the Importer’s (Applicant’s) name and address spelled correctly? (Field 50)
  • Are your name and address spelled correctly? (Field 59)
  • Are the dollar amount and currency of the Letter of Credit correct? (Field 32B)
  • Does the payment term agree with the sales contract? (Field 42C)
  • If necessary, are partial shipments allowed? (Field 43P)
  • Are the point of shipment (Field 44 A) and destination (Field 44B) as agreed?
  • Is it possible for you to meet the latest shipping date? (Field 44C)
  • Are enough days allowed to present documents? (Field 48) You may need to check with the freight forwarder handling the shipment and preparing documents for you.
  • Is the merchandise description correct and, if needed, does it include unit price, weight and quantities? (Field 45A )
  • If necessary, does the Letter of Credit allow for any variance on the quantity and/or dollar amount?
  • Are the terms of the sale regarding insurance and freight charges as agreed? (Field 45A)
  • Can all documents listed in the Letter of Credit be obtained? (Field 46 A)
  • Which party is responsible for banking charges? (Field 71b)
  • Where is the Letter of Credit payable? (Field 41D) this will affect the length of time required to receive your funds.

Major discrepancies frequently seen on export documents

  • Credit has expired;
  • Shipment is late;
  • Partial shipment is effected, not allowed by credit;
  • Clauses on bill of lading- indicating that there is something wrong with the goods or their packing;
  • Not marks and numbers differ between documents;
  • Typing errors or misspellings;
  • Required signatures have been omitted;
  • Description of goods differs from credit and
  • Insurance cover is insufficient

Export permit applications  

The export permit issued by banks shall be valid up to the end of the issuing month only.

Export tax

In Ethiopia export tax Is levied only on raw and semi-processed hides and skins, and wet-blue cow hide, pickled sheep skins with wet-blue sheep and wet-blue goat skins at a flat rate of 150%

Export Incentives

Any investor who exports or supplies to an exporter as production or service input, at least 60% of his products or services shall be entitled to income tax exemption for 2 years in addition to the exemption period provided.

Duty Drawback Scheme

It offers manufacturers an exemption from the payment of customs duties and other taxes levied on imported and locally purchased raw materials used in the production of export goods. Duties and other taxes paid are drawn back 100 percent at the time of the export of the finished goods;

Voucher Scheme

A voucher is a printed document having monetary value which is used in lieu of duties and taxes payable on imported raw materials. The beneficiaries of the voucher scheme are also exporters; and

Bonded Manufacturing Warehouse Scheme

Producers not eligible for voucher scheme but having licensed for bonded are entitled to operate such warehouse in importing of raw materials duty free.

Export Documentation

Export   Business Support 

Addis Ababa Chamber of Commerce and Sectorial Association, business support staff can advise you on all aspects of export business including, lists of eligible export goods, export documentation, bank payments, COMESA market export procedure, and customs procedures.

Exporting duty and tax

No export tax is levied on export products except 150% tax levied on semi – processed hides and skins. All export goods are also subject to zero value added tax.

Export documentation

Export documentation is required in importing countries to clear goods from customs and effect bank payment. It can also be used to as proof of origin in order to claim preferential duty rates.

The documents often become more important than the goods, as without the correct paperwork, the products can’t clear customs. Goods stuck in customs are not stored free-of-charge and it is the exporter or seller that pays these charges. Most of all, export documentation must be accurate and contain the correct information.
What are the required export documentations?

Certificate of Origin

A Certificate of Origin (CO) is an important international trade document attesting that goods in a particular export shipment are wholly obtained, produced, manufactured or processed in a particular country. There are two types of COs.

Preferential Certificate of Origin

This type of COs enables products to enjoy tariff reduction or exemption when they are exported to countries extending these privileges.

The countries which extended duty free tariff treatment to Ethiopia’s export products are USA, EU, Japan, Canada, Australia, Turkey, Russia China, India and Korea. All export products of Ethiopia enjoys duty free treatment in all developed and emerging economic countries.

The types of preferential certificate of origin request by importing country on letter of credit or sales contract are,

  • AGOA Visa —  Document used to clear  textile & apparel products  duty free when

Such goods enters to  USA under  African Growth Opportunity Act (AGOA)  program  detailed attached

  • GSP Form A Certificate of Origin – Documents used to clear all goods enters products exported to EU, Japan, USA, Australia, Turkey, Russia, etc.. under each General Systems of Programs (EU-GSP) detailed attached
  • SPTT Certificate of Origin — Documents used to export to China under China- Special

Preferential Tariff Program   (SPTT) detailed attached

  • DFTP Certificate of Origin  —Document used to export duty free to India under  India Duty Free Tariff Program (DFTP)   detailed attached
  • Annex III ––Document used to export goods in Korea under Korean Duty Free Program  detailed attached
  • All the above preferential certificate of origin is issued by Ethiopian Revenues and Customs Authority. Addis Ababa chamber of Commerce can assist members on its processing.

Non-preferential certificate of origin

This type of COs is called “ordinary COs” which certify that the country of origin of a particular product does not qualify for any preferential treatment. The purpose of this type of COs is to uses for purpose of trade statistics. It is mandatory documentary requirement in most importing country just to confirm where the goods is growth, produced or manufactured,

This certificate of origin is issued by Ethiopian Chamber of Commerce & sectoral Associations, chamber members receive a 50% reduction in the cost of processing non-preferential certificate of origin.

Commercial Invoice

It is prepared and provided by the exporter or seller to the buyer or importer. It uses for customs declaration and bank payment purpose. It must include information such as the importer and exporter details, the actual description of goods being exported, number and date of invoice, the country of origin, unit and total price of goods, terms of agreements (FOB, C&F, CIF), the Harmonized System codes of goods (if necessary) and a statement certifying that the invoice is true, and a signature.

Bill of Loading or Air way bill

A document issued by a carrier or its agent to the shipper (exporter) a confirmation receipt for cargo accepted for transportation, and must be presented for taking delivery at the destination.

A bill of loading or air way bill contains (1) consignor’s and consignee’s name, (2) names departure and destination ports, (3) name of the vessel/carrier, (4) dates of departure and arrival, (5) itemized list of goods being transported with number of packages and kind of packaging, (6) marks and numbers on the packages, (7) weight and/or volume of the cargo, (8) terms of delivery.

Packing Lists

The packing list must contain the same listed goods as the invoice, along with weight, dimensions, quantity of the products. The packing list doesn’t include any prices. Moreover, the packing list should include the final count weight and dimension of the goods after they have been packed ready for export.