in the Ethiopia a leather industry major role play in economy.

Ethiopias footwear industry and its leather sector in general

enjoy significant
International comparative advantages owing to its abundant and
available raw
Materials, highly disciplined workforce and cheap prices etc. In
the Ethiopia largest livestock production and 10 th highest in the
world. Many types of leather product made by country.But, the
resource is not fully utilized and only 8.1million sheep skins and
7.5million goat skins are sold on the market. The importance of
the leather footwear industry has been emphasized by the govt.
of Ethiopia at different levels.

Government of Ethiopia help to leather industry development and

fully support to export.
Introduction to Legal Aspects in Ethiopia

Ethiopia has adopted a free market economic policy in 1992, and in line with
this has promoted private investment. With the introduction of market
economy, Ethiopia has implemented a number of reforms including the
privatization of state owned enterprises, liberalization of foreign trade,
deregulation of domestic prices, and devaluation of the exchange rate.
Ethiopia's exchange rate has remained fairly stable due to the government's
appropriate monetary policies and considerable foreign exchange reserves.
With its enormous resources, the country has untapped investment
opportunities, huge market access and low cost of doing business. The
country has excellent climate, fertile soil and huge domestic raw material
base. The political situation of the country is stabilized. In Ethiopia, the labor
force is estimated at 40 million, and labor remains readily available and
inexpensive.

Ethiopia has enacted a liberal investment law and the Ethiopian Investment
Commission has been established, which is making every effort in creating
an enabling environment for investment. Conducive economic environment
encouraged foreign direct investment. The country has currently reformed its
investment code by broadening the sector coverage for foreign participation.
The Ethiopian Investment Commission (EIC) is now serving as one stop-shop
facilitator, issuing investment permit, work permit, residence permit and
allocation of land for investment.

Investment Protection and Guarantee in Ethiopia

It has also signed bilateral investment promotion agreements with a number

of OECD (Organization for Economic Cooperation and Development)
countries. India is one of the OECD country with which Ethiopia has signed
this pact.

Investment Laws in Ethiopia

Although corruption exists, it is not a significant hindrance to investment or

trade in Ethiopia because of good investment laws protecting foreign
countries and encourage them to invest in Ethiopia.

Ethiopias Company Law

Good company law is especially critical in transition-economy countries.

Ethiopias current company law is part of its Commercial Code, which has
remained unchanged since its enactment in Imperial times (1960).
 Ethiopians Trade Law

Ethiopias trade regime contains the key provisions that support economic
development, although much of the supporting legal and institutional
architecture to promote trade remains underdeveloped. The Government of
Ethiopias decisions to apply for membership in the WTO and to sign a
bilateral partnership agreement with the EU both present excellent
opportunities to further modify the trade regime to ensure that Ethiopias
trade policies make a maximum contribution to the countrys development
and to promote domestic and foreign investment.

Foreign Direct Investment Law

Too many sectors of Ethiopias economy are closed to foreign investment.

Although international corporations do not normally operate in some of these
sectors, the restrictions project a generally negative image to potential
foreign investors in Ethiopia.

INTERNATIONAL/BILATERAL NORMS

A trade agreement, signed by the two countries in 2007 provides for the
establishment of a Joint Trade Committee (JTC). India's annual exports to
Ethiopia are in the range of US $ 636.5 million. This is significant given that
Ethiopia's global non-oil imports are only US $ 6.2 billion approximately. India
is the third most important source of imports for Ethiopia, contributing 7.5%
of all of Ethiopia's imports. (The bilateral agreements signed by the two
countries are)

Cultural Agreement (1983)

 Trade Agreement (1997)
Bilateral Investment Promotion and Protection Agreement (2007)
Protocol on Foreign Office Consultations (2007)

Inco-terms (International Commercial Terms):

The Inco terms tenets are a globally perceived standard and are utilized
worldwide in universal and household contracts for the offer of products.
Inco-terms are an arrangement of three-letter standard exchange terms most
regularly utilized as a part of global contracts for the offer of merchandise.
Inco-terms are acknowledged by governments, lawful specialists and
professionals worldwide for the understanding of the most normally utilized
terms in global exchange. They either diminish or expel through and through
vulnerabilities emerging from varying translations of such terms in various
nations. Inco-terms rules give universally acknowledged definitions and
standards of understanding for most basic business terms. They help dealers
maintain a strategic distance from expensive mistaken assumptions by
clearing up the assignments, expenses and dangers required in the
conveyance of merchandise from venders to purchasers. Inco-terms
guidelines are perceived by UNCITRAL as the worldwide standard for the
elucidation of the most well-known terms in remote exchange.

Inco-terms were initially distributed in 1936 by the International Chamber of

Commerce (ICC). The principles have been produced and kept up by
specialists and professionals united by ICC and have turned into the standard
in worldwide business rules setting. Inco-terms standards are intermittently
reexamined to guarantee that they are stayed up with the latest with current
exchange hones. Numerous adaptations of Inco-terms like Inco-terms 2000,
Inco-terms 2010 are accessible for use by contracting parties. The Inco-terms
2010 tenets are compelling from January 1, 2011. It is suggest utilizing Inco-
terms 2010 after 2011. However gatherings can pick prior adaptation of Inco-
terms moreover. Be that as it may, it is critical to plainly indicate the picked
form of Inco-terms.

The scope of Inco-terms is constrained to matters identifying with the rights

and commitments of the gatherings to the agreement of offer regarding the
conveyance of products sold, yet barring "intangibles" like PC software. The
Inco-terms rules have turned into a basic piece of the day by day dialect of
exchange. They have been joined in contracts for the offer of merchandise
worldwide and give guidelines and direction to shippers, exporters, legal
advisors, transporters, back up plans and understudies of global exchange.

The terms are organized to increment incrementally the commitments

(control, hazard and cost) on one gathering while diminishing the
commitments of the other, contingent upon the particular term picked. Each
term elucidates which gathering is in charge of:

Inland freight (transportation within the origination country)

Forwarder selection
Export clearance
Carrier selection and scheduling
International freight
Import clearance
On-carriage (transportation within the destination country)

Delivery happens (and hazard of trouble relations) at the point assigned by

the term chose. Exchange of title is NOT secured by any of the Inco-terms
2010 guidelines and must be independently indicated by the gatherings.
 IMPORT/EXPORT DOCUMENTS

GUJARAT

Import Documents

There may have bilateral import export agreements between governments of

different countries. Imports and exports from such countries may have
exemptions on documentation for export and import clearance. However
there are legal documents, common documents and specific documents on
commodity basis required to complete import customs procedures.

Bill of Entry:

Bill of entry is one of the major import documents for import customs
clearance. As explained previously, Bill of Entry is the legal document to be
filed by CHA or Importer duly signed. Bill of

Entry is one of the indicators of total outward remittance of country

regulated by Reserve Bank and Customs department. Bill of entry must be
filed within thirty days of arrival of goods at a customs.

Location:

Once after filing bill of entry along with necessary import customs clearance
documents, assessment and examination of goods are carried out by
concerned customs official. After completion of import customs formalities, a
pass out order is issued under such bill of entry. Once an importer or his
authorized customs house agent obtains pass out order from concerned
customs official, the imported goods can be moved out of customs. After
paying necessary import charges if any to carrier of goods and custodian of
cargo, the goods can be taken out of customs area to importers place.

Commercial Invoice:
Invoice is the prime document in any business transactions. Invoice is one of
the documents required for import customs clearance for value appraisal by
concerned customs official. Assessable value is calculated on the basis of
terms of delivery of goods mentioned in commercial invoice produced by
importer at customs location. I have explained about the method of
calculation of assessable value in another article in same web blog. The
concerned appraising officer verifies the value mentioned in commercial
invoice matches with the actual market value of same goods. This method of
inspection by appraising officer of customs prevents fraudulent activities of
importer or exporter by over invoicing or under invoicing. So Invoice plays a
pivotal role in value assessment in import customs clearance procedures.

Bill of Lading / Airway bill:

BL/AWB is one of the documents required for import customs clearance. Bill
of lading under sea shipment or Airway bill under air shipment is carriers
document required to be submitted with customs for import customs
clearance purpose. Bill of lading or Airway bill issued by carrier provides the
details of cargo with terms of delivery. I have discussed in detail about Bill of
Lading and Airway bill separately in this website. You can go through those
articles to have a deep knowledge about documents required for import
customs clearance.

Import License

As I have mentioned above, import license may be required as one of the

documents for import customs clearance procedures and formalities under
specific products. This license may be mandatory for importing specific
goods as per guide lines provided by government. Import of such specific
products may have been being regulated by government time to time.
Therefore government insists an import license as one of the documents
required for import customs clearance to bring those materials from foreign
countries.

Insurance certificate
Insurance certificate is one of the documents required for import customs
clearance procedures. Insurance certificate is a supporting document against
importers declaration on terms of delivery. Insurance certificate under
import shipment helps customs authorities to verify, whether selling price
includes insurance or not. This is required to find assessable value which
determines import duty amount.

Purchase order/Letter of Credit

Purchase order is one of the documents required for import customs

clearance. A purchase order reflects almost all terms and conditions of sale
contract which enables the customs official to confirm on value assessment.
If an import consignment is under letter of credit basis, the importer can
submit a copy of Letter of Credit along with the documents for import
clearance.

Technical write up, literature etc.

For specific goods a technical write up, literature of imported goods or any
other similar documents may be required as one of the documents for import
clearance under some specific goods. For example, if machinery is imported,
a technical write up or literature explaining its function can be attached
along with importing documents. This document helps customs official to
derive exact market value of such imported machinery in turn helps for value
assessment.

Industrial License (if any)

An industrial license copy may be required under specific goods importing. If

Importer claims any import benefit as per guidelines of government, such
Industrial License can be produced to avail the benefit. In such case,
Industrial license copy can be submitted with customs authorities as one of
the import clearance documents.

RCMC (Registration cum Membership Certificate) (if any)

For the purpose of availing import duty exemption from government

agencies under specific goods, production of RCMC with customs authorities
is one of the requirements for import clearance. In such cases importer
needs to submit Registration Cum Membership Certificate along with import
customs clearance documents.

Test report (if any)

The customs officials may not be able to identify the quality of goods
imported. In order to assess the value of such goods, customs official may
draw sample of such imported goods and arranges to send for testing to
government authorized laboratories. The concerned customs officer can
complete appraisement of such goods only after obtaining such test report.
So test report is one of the documents under import customs clearance and
formalities under some of specific goods. DEEC/DEPB /ECGC or any other
documents for duty benefits are also required.

Export Documents

Exporters should seriously consider having the freight forwarder handle the
formidable amount of documentation that exporting requires; freight
forwarders are specialists in this process. The following documents are
commonly used in exporting; which of them are actually used in each case
depends on the requirements of both our government and the government of
the importing country.

Commercial invoice:

A commercial invoice is a document used in foreign trade. It is used as a

customs declaration provided by the person or corporation that is exporting
an item across international borders.

Although there is no standard format, the document must include a few

specific pieces of information such as the parties involved in the shipping
transaction, the goods being transported, the country of manufacture, and
the Harmonized System codes for those goods. A commercial invoice must
also include a statement certifying that the invoice is true, and a signature. A
commercial invoice is used to calculate tariffs, international commercial
terms (like the Cost in a CIF) and is commonly used for customs purposes.
Commercial invoices are in European countries not normally for payment.
The definitive invoice for payment usually has only the words "invoice". This
invoice can also be used as a commercial invoice if additional information is
disclosed.

Bill of lading:

A bill of lading (sometimes abbreviated as B/L or BoL) is a document issued

by a carrier which details a shipment of merchandise and gives title of that
shipment to a specified party.

i. Bills of lading are one of three important documents used in

international trade to help guarantee that exporters receive payment
and importers receive merchandise.
ii. A straight bill of lading is used when payment has been made in
advance of shipment and requires a carrier to deliver the merchandise
to the appropriate party. An order bill of lading is used when shipping
merchandise prior to payment, requiring a carrier to deliver the
merchandise to the importer, and at the endorsement of the exporter
the carrier may transfer title to the importer. Endorsed order bills of
lading can be traded as a security or serve as collateral against debt
obligations.

Certificate of origin:

A certificate of origin (often abbreviated to C/O, COO or CoO) is a document

used in international trade. In a printed form or as an electronic document, it
is completed by the exporter and certified by a recognized issuing body,
attesting that the goods in a particular export shipment have been produced,
manufactured or processed in a particular country.

1. Inspection certification
2. Dock receipt and warehouse receipt
3. Destination control statement
4. Insurance certificate
5. Export license
6. Export packing list

ETHIOPIA
 Export Documents

Dangers are natural in both household exchange and universal exchange;

however the level of hazard is higher in global exchange. Consequently,
appropriate documentation mitigates the hazard in universal exchange.
Documentation must be exact. Slight errors or oversights may keep stock
from being sent out or bring about trading firms not getting paid, or even
outcome in the seizure of the exporter's merchandise by neighborhood or
remote government traditions. Gathering records are liable to exact time
restrains and may not be respected by a bank, if outdated. Much of the
documentation is normal for the cargo forwarders or traditions specialists
following up for the company's benefit; however the exporter is eventually in
charge of the exactness of the documentation. It is said that "Global
Exchange is an offer of reports". It is essential to unmistakably comprehend
the reports required in the exchange to maintain a strategic distance from
the hazard variables and cling to the lawful commitments. The whole
documentation in fare exchange can be essentially partitioned into two
classes:

1. Pre-shipment document
Pre-shipment reports are those that an exporter needs to create, confirm and
submit to the concerned experts and offices to get the essential clearances,
preceding the genuine shipment of the freight, so that the load can be
transported out with substantial archives. The pre-shipment archives are for
the most part arranged when the item is prepared for fare and preceding
shipment. The standard pre-shipment records include:
 Customs Invoice
Packing List
GP Form (original and duplicate)
AR4 Form (original and duplicate)
Copy Of Export order
Letter Of Credit
Shipping Bill (entire set)
Export Licenses(for notified items)
Certificate Of Origin
Certificate Of Inspection
Any Other Documents (as required in L/C or by Customs)

2. Post-shipment document
The post-shipment reports involve the guaranteed duplicates of a portion of
the primary pre-shipment archives and certain extra records to be created
and ordered by the exporter so that the verification of shipments can be
legitimately introduced to the arranging bank for gathering the installments
through L/C or for introduction to the remote purchaser for accumulation of
installment through the designated bank. The standard pre-shipment records
incorporate.
Custom attested invoice
Custom attested packing list
Copy of Export Order / Copy Of LC
Commercial Invoice
Consular Invoice (If Specified)
Bill of Lading / Air Way Bill
Certificate of Origin
Certificate of Inspection (If Specified)
Bill of Exchange (Draft)
GP Form (Duplicate)
Any other document specified in Export Order / LC Export from India
required special documents
Depending upon the type of product and destination to be exported.
These documents are as follows:
 Import Documents

Documents required for importing and customs clearance in

Ethiopia are:

Agency Agreement;
A bank Permit;
A bill of lading or airway bill;
Certificate of origin;
Commercial invoices;
Customs import declaration;
Foreign Exchange Authorization;
Import license ;
Insurance Certificate;
Packing list;
Tax Identification (TIN) Certificate;
Pre shipment inspection clean report of findings;
Transit Document;
Value Added Tax (VAT) Certificate.
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:

i. A final invoice (commercial invoice) attested by the chamber of

commerce of the country of the supplier
ii. Original sets of Bill of lading, Airway Bill, Truck way bill, Railway
Manifest (depending on the mode of transportation)
iii. Country of origin invoice attested by the chamber of commerce of the
country of the supplier
iv. Packing list
v. Certificate of quality where appropriate

IMPORT/EXPORT PROCEDURES

GUJARAT

Gujarat Export Procedure:

1. Receipt of an order:

The exporter has to get self registered with various authorities like RBI,
income tax authorities, etc. In addition, he has to appoint agents or
distributors for collection of orders from foreign countries. Exporter receives
an order from importer directly or through Indent House.

2. Obtaining License and Quota:

After obtaining order, exporter has to secure export license from the
government. For this, he has to apply to the Export Trade Control Authority
and obtain the valid license. Quota is the total quantity of goods that is
permitted for exports.

3. Letter of Credit:

Exporter demands letter of credit from importer or sometimes importer may

send it himself along with the order.

4. Fixing exchange rate:

Exchange rate means the rate at which the currency of one country is
exchanged for the currency of another country. It fluctuates from time to
time. Hence the exporter and importer fix the exchange rate mutually.

5. Foreign exchange formalities:

Here the exporter has to undergo certain foreign exchange formalities as laid
down under exchange control regulations. According to FERA (Foreign
Exchange Regulation Act of India) every exporter has to furnish a declaration
in the form prescribed for this purpose.

The declaration states:-

Foreign exchange earned by way of exports will be disposed in the manner

and within the period specified by RBI.

Negotiations of shipping documents will be through authorised dealers in

foreign exchange.

The payment for goods exported will be collected only through approved
method.

6. Preparation for executing the order:

The exporter makes necessary arrangements for executing the order.

In this respect he performs the following activities:-

 Packing and marking of the goods as per the specifications of the
importer.
Arranging the pre-shipment inspection by the Export Inspection Agency
and getting the inspection certificate from it.
Securing insurance policy from the Export Credit Guarantee
Corporation (ECGC) to get protection against the credit risks.
Obtaining a suitable marine insurance policy, consular invoice and
certificate of origin, if required.
Appointing a forwarding agent for handling the customs and forwarding
activities.

7. Formalities done by forwarding agent:

The Forwarding Agent completes the following formalities:-

He obtains the Customs' Permit from the Customs Department for

exporting goods.
The Forwarding Agent discloses the details of the goods such as their
nature, size, quantity, weight, etc. to the shipping company.
The Forwarding Agent prepares a Shipping Bill.
The Forwarding Agent prepares two copies of the dock challans and
pays the dock dues.
The Captain of the ship gets the goods loaded on the ship on the basis
of the Shipping Order in the presence of customer officers.
When the goods are loaded on the ship, the Mate (Vice Captain or the
Captain) issues a receipt, called Mate's or Captain's Receipt.

8. Bill of Lading:

The exporter approaches the shipping company, presents the Mate's Receipt
and in exchange receives a document called Bill of Lading. It is an official
receipt given by the shipping company as an acknowledgement of the
receipt of goods to be transported to the port of destination. It is also a
contract for the carriage of goods. It gives full description of goods loaded on
the ship, name of the port of destination, etc.
 9. Shipment advice to importer:

The exporter sends Shipment Advice to the importer informing him about the
dispatch of the goods. He sends a copy of packing list, commercial invoice
and a non-negotiable copy of the Bill of Lading, along with the Advice Note.

10. Presentation of documents to the bank:

The exporter confirms that he has secured a complete set of the shipping
documents namely, the Bill of Lading, Marine Insurance Policy, Certificate of
Origin, the Consular Invoice and the Commercial Invoice. He then draws a bill
of exchange on the basis of the commercial invoice. The bill of exchange
accompanied by these documents is called Documentary Bill of Exchange.
Such a bill may be a D/P (Documents against payment) bill or D/A
(Documents against Acceptance) bill. The exporter hands over the
documentary bill to his bank.

11. Realization of export proceeds:

For realization of export proceeds, the exporter has to undergo certain

banking formalities. Generally he receives payment in foreign currency by bill
of exchange or by bank draft.

12. Follow up:

After the sales, exporter should always have a follow-up, to find out buyer's
reactions towards the goods. Such follow up builds goodwill and the exporter
can get more and more orders in future.

Gujarat Import Procedure:

1. Obtaining import license and quota:

In all countries there are many government regulations to be followed.
Sanction of government is necessary. Importer has to apply to the controller
of imports for getting necessary permission.

Importer has to attach the following documents to his application form:-

Receipt which shows that import license fee has been paid.
Certificate from a Chartered Accountant showing the total value of
goods to be imported.
Verification Certificate for income tax.
An import license may be general or specific. A general license allows
imports from any country. But specific license allows imports from
specific country only.
The importer also has to obtain import quota certificate from the
concerned authority. It mentions the maximum quantity of goods which
can be imported.

2. Obtaining foreign exchange:

Before placing any order, the importer must apply to the Exchange Control
Department (ECD) of RBI (India's Central Bank) for the release of requisite
foreign exchange. The importer should forward the application through his
bank. The ECD verifies the application of the importer, and if found valid,
sanctions the foreign exchange for the particular transaction.

3. Placing an order:

The importer may either place the order directly or through the indent house
(Agent). In case of canalized items, he obtains the imports through the
canalizing agency. (Canalization means channelization of goods through a
government agency like MMTC). The importer cannot directly import such
canalized items. They have to place an order with the canalizing agency that
shall import and supply the same.

4. Dispatching letter of credit:

After getting the confirmation from the supplier regarding the supply of
goods, the importer requests his bank to issue a Letter of credit in favour of
supplier. It can be defied as "an undertaking by importer's bank stating that
payment will be made to the exporter if the required documents are
presented to the bank".

5. Appointing clearing and forwarding agents:

The importer makes arrangement to appoint clearing and forwarding agents

to clear the goods from the customs. Since clearing of goods is a specialized
job, it is better to appoint C & F agents.

6. Receipt of shipment device:

The importer receives the shipment advice from the exporter. The shipment
advice states the date on which the goods are loaded on the ship. The
shipment advice helps the importer to make arrangement for clearance of
goods.

7. Receipts of documents:

The importer's bank receives the documents from the exporter's bank. The
documents include bill of exchange, a copy of bill of lading, certificate of
origin, commercial invoice, consular invoice, packing list, and other relevant
documents. The importer makes payment to the bank (if not paid earlier)
and collects the documents.

8. Bill of entry:

This is a document required in case of import of goods. It is like shipping bill

in case of exports. A Bill of Entry is the document testifying the fact that
goods of the stated value and description in specified quantity are entering
into the country from abroad. The customs office supplies this form which is
prepared in triplicate. Three different colors are used to prepare bill of entry.
One copy is retained by custom department, other is retained by port trust
and the third is kept by the importer.
 9. Delivery order:

The clearing agents obtain the delivery order from the office of the shipping
company. The shipping company gives the delivery order only after payment
of freight, if any.

10. Clearing of goods:

The clearing agent pays the necessary dock or port trust dues and obtains
the port Trust Receipt in two copies.

He then approaches the Customs House and presents one copy of Port Trust
Receipt, and two copies of Bill of. Visit to the customs authorities. The
customs officer endorses the Bill of Entry Forms and one copy of Bill of Entry
is handed back to the importer. The importer then pays the customs duty
and clears the goods. In case, the customs duty is not paid, then the goods
are stored in the bonded warehouses. As and when the duty is paid, the
goods are cleared from the docks.

11. Payment to clearing and forwarding agent:

The importer then makes the necessary payment to the clearing agent for
his various expenses and fees.

12. Payment to exporter:

The importer has to make payment to exporter. Usually, the exporter draws a
bill of exchange. The importer has to accept the bill and make payment.

13. Follow up:

The importer then informs the exporter about the receipt of goods. If there
are any discrepancies or damages to the goods, he should inform the
exporter

ETHIOPIA
 ETHIOPIA IMPORT PROCEDURE

One can find info on import procedures in Ethiopia in relation to the pre-
shipment inspection on goods; applications submitted to commercial banks
in Ethiopia to obtain import permit; 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

commercial banks. All payments above USD 2000 should be made through
Letter of Credit or Cash against Document. Pre-shipment inspections apply
for all imports from China.

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
an agreement for pre-shipment inspections.

Pre-shipment Inspection on goods imported from China:

The Ministry of Trade 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.

Requirements, Pre-shipment Inspection requirement on all goods purchased

from China implemented in effect since January 1, 2007:

Pre-shipment inspection certificate is one of the documents required to

effect import payment from China.

Pre-shipment Inspection certificate requirement is mandatory for all import

purchases made from China in excess of USD 2,000
 Banks are required to insert requirement in the LC and also to insure that
purchase order transmitted clearly depict to have CIQ inspection
requirement.

Banks cannot accept documents without CIQ certificate if goods are

imported from China.

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

2. Industry License issue by Ministry of Industry (If applicable)
3. Investment License issued by Investment Agency

Applications submitted for import should be accompanied by the Pro-forma

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 USD 5000

Importers who wish to import using CAD:

1. Should first get approvals of the 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.

ETHIOPIA EXPORT PROCEDURE

Businesses that wish to export from Ethiopia should know the export
procedures needed to obtain export permit by commercial banks; should
prepare Application for Quality Testing and Certification to obtain Export
Authorization Certificate from the Quality and Standards Authority of
Ethiopia; should fill the Customs declaration. We have included all these
export procedures in Ethiopia and also the VAT registration for exporters from
Ethiopia and VAT rate applied on goods exported from Ethiopia.

In regards to payment, the exporters should:

Know thoroughly the foreign counterparts (buyers) financial soundness,

reliability, integrity, full address, etc.

Sales/Purchase contract should exist between the two parties (importer and
exporter).

(LC Mode of Payment) Go through text of L/C opened in their favor and make
sure that compliance can be met without doubt. Otherwise, amendments
need to be requested from opener as soon as L/C has been received or at the
earliest - long before shipment of consignments.
(CAD Mode of Payment) Follow up the payment, as nonpayment or even
delay of 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 rates. 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.

Shipping Norms for Leather Leaves

Import procedure describes the documents required for importing from India.
Special documents may be required depending on the type of product. The
Leather may require a quality control inspection certificate from FSSAI.

Shipping Bill/ Bill of Export is the main document required by the Customs
Authority for allowing shipment. Usually the Shipping Bill is of four types and
the major distinction lies with regard to the goods being subject to certain
conditions which are mentioned below:

Export duty/ cess

Free of duty/ cess
Entitlement of duty drawback
Entitlement of credit of duty under DEPB Scheme
Re-export of imported goods

The following are the export documents required for the processing of the
Shipping Bill:

GR forms (in duplicate) for shipment to all the countries.

4 copies of the packing list mentioning the contents, quantity, gross
and net weight of each package.
4 copies of invoices which contains all relevant particulars like number
of packages, quantity, unit rate, total f.o.b./ c.i.f. value, correct & full
description of goods etc.
Contract, L/ C, Purchase Order of the overseas buyer.
AR4 (both original and duplicate) and invoice.
Inspection/ Examination Certificate.

The formats presented for the Shipping Bill are as given below:
 White Shipping Bill in triplicate for export of duty free of goods.
Green Shipping Bill in quadruplicate for the export of goods which are
under claim for duty drawback.
Yellow Shipping Bill in triplicate for the export of dutiable goods.
Blue Shipping Bill in 7 copies for exports under the DEPB scheme

Note :- For the goods which are cleared by Land Customs, Bill of Export (also
of 4 types - white, green, yellow & pink) is required insLeatherd of Shipping
Bill.

Container transport

Leather is predominantly transported in standard containers. Containers

intended for loading have to be watertight and must not be contaminated in
any way. Containers whose floors release a foreign odor, are contaminated
by any substances or are too damp should be rejected. Below deck stowage
is required, to rule out the possibility of exposure to rain or seawater or of
overheating by day and cooling at night. Leather in containers should be
stowed away from sources of heat.

Carton dimensions are adapted to container dimensions and allow the

containers to be filled virtually to total capacity. These two features mean
that the standard container can be used without difficulty as FCL cargo.

Cargo handling

In damp weather (rain, snow), the cargo must be protected from moisture,
since moisture may lead to mold growth and mustiness.

Hooks must not be used because they can Leatherr or puncture the chests,
resulting in loss of the contents. Do not use slings or cargo nets. Handling on
pallets has proved most effective because this reduces the risk of breakage
since the chests can be stacked in a uniform block.

Risk factors and loss prevention

RF Temperature:

Leather requires particular temperature, humidity/moisture and

possibly ventilation conditions (SC VI) (storage climate conditions).
Favorable travel temperature range: 5 - 25C
Leather must be stowed away from sources of heat in order to avoid
the risk of desiccation and drying.

Packaging and Labeling Requirements

1. The consignments shall comply with the provision of Labeling and

Packaging Regulation, 2011.
2. Further, any consignment of multiple food or food falling under
different categories packed in a single container shall be packed in
such a manner so as to facilitate the inspection and collection of
samples from the consignment.
3. Special exemptions on labeling for information on name and address of
the importer, FSSAI logo, Non-Veg/Veg logo can be affixed by the
importer upon arrival of imported food consignment in the custom
bonded warehouse. The AO shall pass an order directing the food
importer to carry out the permissible labeling rectification within a
prescribed time in the customs area without altering or masking the
original Label information. Such deficiency shall be rectified by affixing
 a single non detachable sticker or by any other non detachable
method. Upon such rectification by the food importer, AO shall carry
out a re-inspection.
4. If food importer fails to rectify the permissible defects within the
prescribed time, the AO may pass an order refusing clearance of such
imported food and issue a NCC.
5. No other deficiency in label is allowed to be rectified and such
consignment not complying with the provisions of labeling and
packaging regulation shall be rejected at the visual inspection and no
samples shall be drawn from the consignment.
6. The sealed sample of imported Food shall bear the following
information on the Label:

Code number of the Sample;

Date and place of collection;
Quantity of Sample;
Name of food;
Name and Quantity of preservative added while drawing the Sample, if
any;
Name and signature of the Food Importer or his/her CHA;
Name and signature of the sender with official seal.