Ethiopia-KSA Trade Guide
Ethiopia-KSA Trade Guide
2
5.4.4 Rates of key routes for air cargo between KSA and Ethiopia .................................................................................................................. 20
6. Key Logistics Facilities........................................................................................................................................................................................ 20
6.1 Industrial Parks in Ethiopia ............................................................................................................................................................................... 20
6.1.1 Key Trade-related incentives in Industrial parks ........................................................................................................................................ 20
6.2 Storage facilities/ services provided at the ports in Ethiopia................................................................................................................... 21
6.2.1 Types of Storage Facilities/Services ............................................................................................................................................................... 21
6.2.2 Costs of Storage ................................................................................................................................................................................................... 22
7. Overall Import Process ...................................................................................................................................................................................... 22
7.1 Overall Import Process ...................................................................................................................................................................................... 22
7.2 Customs Clearance process .............................................................................................................................................................................. 25
7.3 Lead Time and Cost involved for Overall Import Process ........................................................................................................................ 27
8. Key import documents ...................................................................................................................................................................................... 28
8.1 Summary table of key import documents .................................................................................................................................................... 28
8.1.1 Mandatory Documents ..................................................................................................................................................................................... 28
8.1.2 Additional Documents....................................................................................................................................................................................... 28
8.2 Documents Overview ........................................................................................................................................................................................ 29
8.1.1 Bill of Lading ......................................................................................................................................................................................................... 29
8.1.2 Commercial Invoice ............................................................................................................................................................................................ 29
8.1.3 Import Declaration Form .................................................................................................................................................................................. 29
8.1.4 Packing List ........................................................................................................................................................................................................... 30
8.1.5 Certificate of Origin ............................................................................................................................................................................................ 30
8.1.6 Bank Permit........................................................................................................................................................................................................... 31
8.1.7 Certificate of Conformity................................................................................................................................................................................... 31
8.1.8 Certificate of Analysis......................................................................................................................................................................................... 31
8.1.9 Import License/Permit ....................................................................................................................................................................................... 31
8.1.10 GMP .................................................................................................................................................................................................................... 32
8.1.11 Phytosanitary certificate/ Health certificate............................................................................................................................................. 32
9. Key Government Agencies involved in Import ........................................................................................................................................... 33
9.1 Summary table of Key Government Agencies involved in the Import Process.................................................................................. 33
9.2 Key Government Agencies involved in the Import of Specific Industries targeted by Saudi Arabia ............................................ 33
10. Key Standard Agencies and Their Approval Process – Ethiopia ............................................................................................................ 34
10.1 Standard Agencies According to Industry..................................................................................................................................................... 34
10.2 Ethiopian Standards Agency (ESA) ................................................................................................................................................................. 35
3
10.2.1 Process for Acquiring the Inspection Certificate ..................................................................................................................................... 35
10.2.2 Key Documents Required ............................................................................................................................................................................. 36
10.3 Food, Medicine and Health Care Administration and Control Authority of Ethiopia ...................................................................... 36
10.3.1 Drug Registration Process ............................................................................................................................................................................. 37
10.3.2 Key documents required ............................................................................................................................................................................... 38
10.3.3 Costs involved .................................................................................................................................................................................................. 39
10.3.4 Lead Time........................................................................................................................................................................................................... 39
10.3 Customs Clearance Process for Imported Food at Ethiopia land port .................................................................................................. 39
10.3.1 Key documents required ............................................................................................................................................................................... 40
10.3.2 Lead time............................................................................................................................................................................................................ 41
11. Packaging and Labelling Regulations – Ethiopia ....................................................................................................................................... 41
11.1 General Industries ............................................................................................................................................................................................... 41
11.1.1 Industry Regulator........................................................................................................................................................................................... 41
11.1.2 Laws and Regulations..................................................................................................................................................................................... 41
11.2 Food Industry ....................................................................................................................................................................................................... 41
11.2.1 Industry Regulator, Laws and Regulations ............................................................................................................................................... 41
11.2.2 Labelling Requirements ................................................................................................................................................................................. 41
11.3 Pharma industry .................................................................................................................................................................................................. 42
11.3.1 Industry Regulator........................................................................................................................................................................................... 42
11.3.2 Laws and Regulations..................................................................................................................................................................................... 43
11.4 Cosmetic industry ............................................................................................................................................................................................... 43
11.4.1 Industry Regulator........................................................................................................................................................................................... 43
11.4.2 Laws and Regulations..................................................................................................................................................................................... 44
12. References ............................................................................................................................................................................................................. 45
4
Disclaimer
Saudi Export Development Authority “SAUDI EXPORTS” have prepared the Import Guide as a part of its continuous publication
on countries. The purpose of this guide is to provide a high-level view of the country imports process, procedures, documentation
requirements, stakeholders…etc., based on available public information. Its analysis, perceptions, and anticipations are subject to
personal judgment. “SAUDI EXPORTS” is not liable for any consequences caused by the understanding and interpretation of any
part of this guide. In general, the information in the report present a broad view of the imports environment of this country. Saudi
exporters are encouraged to carry out further studies to be updated and more informed on the import process, procedures, and
documentation requirements identified in this report.
5
1. Business environment Overview
1.1 Ease of doing business1
Ethiopia has been ranked 161th in the world on the ease of doing business by Doing Business, World Bank. The ranking is
based on certain key parameters that have been elucidated in Table 1 below.
The cultural differences among people and companies might pose several challenges for Saudi exporters in conducting
business in a foreign country. For ease of doing cross border businesses, Saudi exporters must not only understand but also
strategize to accommodate significant culture differences between KSA and Ethiopia.
Saudi Exporters can develop first contacts by attending business networking events and by contacting industry associations
in Ethiopia. For more information on such business associations, Saudi Exporters can visit the link below and click on the
“Private Sector and Other Partners” tab:
http://www.investethiopia.gov.et/useful-links
It is vital to develop and maintain relationships while doing business in Ethiopia. In general, Ethiopians are very formal during
initial meetings. Handshake is the most common way of greeting the business counterparts in Ethiopia during business
1
Doing Business
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Camelot Management Consultants Middle East DMCC
6
meetings. Small friendly conversations are used in the beginning of meetings. Saudi exporters are advised not to rush through greetings
as it is considered important to develop a long standing relationship.
Saudi exporters are advised to get their business cards printed in English and Amharic (front/back) prior to travelling. Saudi exporters are
advised to use an interpreter while dealing with importers to ensure proper and clear communication. For more information, Saudi
Exporters can visit the link below:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/529710/Ethiopia_-
_List_of_Translators.pdf
Gift giving is important part of business practice in Ethiopia. Saudi exporters are advised to give small gifts which are unique
and have heritage connectivity with Saudi Arabia. Gifts are given using either using both hands or the right hand only; and
never by using left hand.
In Ethiopia, the embassy of Saudi Arabia is the first point of contact for Saudi Exporters which is in Addis Ababa. Working
hours of the embassy is from 9.30 am to 3.30 pm (Monday to Friday). The embassy provides information on the rules and
3
U.S. Gov.
7
regulations of Ethiopia, and other services to Saudi nationals in Ethiopia, can also be contacted for solving any issues faced by
the Saudi exporters.
For more details like the head of mission, contact information, etc., Saudi exporters can visit the link provided:
http://embassies.mofa.gov.sa/sites/Ethiopia/en
National Bank of Ethiopia is responsible for the regulation and supervision of domestic and foreign banks operating in
Ethiopia. For more information on banks operating in Ethiopia, Saudi exporters can visit the link provided below:
https://www.nbe.gov.et/financial/banks.html
In Ethiopia, there exists wide range of financial instruments that are used for sending payments to Saudi exporters for the
goods sold in Ethiopia. Following is the list of commonly used payment instruments in order of increasing risk:
• Confirmed irrevocable letter of credit
• Irrevocable letter of credit
• Documentary collection
• International Telegraphic Transfer
As receiving timely payment is considered to be a major hurdle for Saudi Exporters while exporting to Ethiopia, hence Saudi
exporters are encouraged to use more secure payments specially while partnering with new importers.
Constitution is the supreme law in Ethiopia, superseding all other regulation in the country. The legal system constitutes of
codified laws, including civil, penal, civil procedure, penal procedure, commercial and maritime codes. For more details on
laws, compensation and dispute settlement, Saudi exporters can visit the links provided below:
http://www.ethiopianembassy.org/PDF/Ethiopia_Investment_Guide_2015.pdf (Page 27)
Additionally, Ethiopia is a member of the Multilateral Investment Guarantee Agency (World Bank affiliate and a signatory to
the Convention on the Settlement of Investment Disputes between States and Nationals of Other States). For more details for
help during dispute settlement, Saudi exporters can visit the links provided below:
https://www.miga.org/contact
For more information about the INCOTERMS to be used while drafting contract, Saudi exporters can visit the links provided
below:
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Doing Business
8
https://iccwbo.org/resources-for-business/incoterms-rules/incoterms-rules-2010/
Saudi Exporters can obtain the list of practicing lawyers in Ethiopia from the link provided below:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/529711/Ethiopia_-
_List_of_lawyers_in_Ethiopia.pdf
As of 2018, Ethiopia is ranked 68th for enforcing contracts by Doing Business, World Bank. It takes up to 530 days and 15.2%
of the claim amount (e.g. it would cost SAR 15,200 for a claim amount of SAR 100,000) for resolving a commercial dispute
through court in Ethiopia.5
2. Rules of Origin
2.1 Rules of Origin between Ethiopia and KSA
Rules of Origin determines the nationality of the products imported into Ethiopia and determines the applicable customs duty
and taxes, as well as how anti-dumping, countervailing, and safeguard measures will be applied to imports from Saudi Arabia.
Currently, KSA has not signed any free trade agreements with Ethiopia and the Non preferential rules of origin are applied for
imports from KSA into Ethiopia.6
1. In Ethiopia, two major criteria determine the country of origin of the imported products mentioned below:
a. The “wholly-produced” principle: A product is considered “wholly- produced” within a country if it
originates from there and if all the materials used in producing the product are sourced from within the
nation. The goods that are considered to be wholly produced/ obtained from an exporting country are:
i. Agricultural products yielded from the country;
ii. Animals which are born and raised in the country;
iii. Products that are obtained from the live animals in the country;
iv. Products that are obtained by hunting or fishing conducted in the country;
v. Products that are obtained from the sea and from rivers and lakes within the country by a vessel
of that country;
vi. Products produced on ships from the items notified in (v).
5 Doing Business
6 Ethiopian Revenue and Customs Authority
9
vii. Mineral products obtained from the soil or seabed.
viii. Scrap and waste that results from the manufacturing operations within the country;
ix. Goods that are produced within the country exclusively or mainly from one or both of the
following:
x. Products referred to in sub-paragraphs (i) to (ix) above;
b. Principle of “substantial transformation”: Goods that undergo transformation into a new and different
product with a distinctive name are subject to the principle of substantial transformation. Goods can be
considered as substantially transformed if it fulfills the following rules:
i. Regional Value Content requirement – If at least 35 % of value is added to a product in the last
substantial transformation. The value is calculated as an ad valorem basis of the ex-works price
(EXW), Free on Board (FOB), Cost Insurance and Freight (CIF)
ii. Change in tariff classification – If there is a change on the four digit level of chapter, tariff
heading, tariff subheading, tariff heading split or tariff subheading as a result of processing.
iii. The specific technical requirement – If the product fulfills the product specific rules or
processing operation can be considered as origin from the country.
2. Documentation must be submitted to Customs as evidence of imported goods origin.
3. Certificate of Origin authorizes the origin of imported product and fulfills the document requirements as specified
in the bilateral trade agreement.
4. Saudi Exporter can obtain the Certificate of Origin from the Ministry of Commerce and Investment, Saudi Arabia.
To obtain the application and for more information on the procedure to obtain the Certificate of origin, Saudi exporters
can visit the link provided below:
https://mci.gov.sa/en/Agencies/IndustrialAffairs/a8/Documents/Application%20of%20Origin%20Certificate%20(Ge
neral%20Form).pdf
3. Trade Barriers
3.1 Trade Barriers in Ethiopia
3.1.1 Tariff Barriers8
8 U.S. Gov.
10
• The simple average applied MFN rate is 17%.
• Saudi exporters are requested to kindly visit the link provided below for more information about the tariff rates that
are applicable to different categories of products.
http://www.erca.gov.et/index.php/tax-calculator?view=taxcalc
• Value Added Tax (VAT) is levied on goods and services in Ethiopia under the provisions provided in the Council of
Ministers Regulations No. 79/2002
• VAT is charged at 15% for most of the imported products in Ethiopia.
• For more information on the VAT law in Ethiopia, Saudi exporters can visit the link provided below:
http://www.erca.gov.et/images/Documents/Proclamation/VAT/reg-no-79-2002-council-of-ministers-value-added-
tax.pdf
• Excise tax is levied on certain products like soft drinks, powder soft drinks, petroleum products etc.
• Excise tax can be levied as a specific tax based on the Cost, Insurance, and Freight (CIF) value and customs duty of
the product.
• Excise taxes are levied from 10% to 100% or as product - based specific prices.
• For more information, Saudi exporters are requested to kindly visit the link provided below:
https://www.2merkato.com/articles/tax/types/54-excise-tax-in-ethiopia
3.1.1.4 Surtax11
• Surtax is levied on all imported goods in Ethiopia under the provisions in the Imported Goods Regulation No
133/2007.
• Sur tax is levied at a flat rate of 10%. The tax is calculated as an aggregate of the applicable CIF value, customs duty,
VAT, and excise taxes of the good
• Certain products like fertilizers, motor vehicles, etc. are expected from Surtax.
• For more information on the Sur Tax in Ethiopia, Saudi exporters can visit the link provided below:
https://www.2merkato.com/images/downloads/regulation_133_2007.pdf
10 Ethiopia laws
11 Ethiopia
laws
11
3.1.1.5 Withholding Tax12
• Withholding Tax is levied on all imported goods in Ethiopia under the provisions provided in the Income Tax
Proclamation No. 286/2002.
• Withholding tax is the income tax that is imposed on the goods imported and the payment of goods.
• Withholding Tax is levied at a flat rate of 2% - 3% depending on the value of the products. The tax is calculated as
an aggregate of the CIF value of the imported goods
• For more information on the Withholding Tax in Ethiopia, Saudi exporters can visit the link provided below:
https://www.2merkato.com/images/downloads/proclamation_608_2008.pdf
• Ethiopia prohibits imports of certain goods like weapons etc. to ensure national security, moral and public health
protection.
• Certain products like food products, pharma products are restricted for import according to the provisions in the
Proclamation of 1997.
• Regulated products can be imported into Ethiopia after obtaining necessary permits or licensing from the relevant
government agency/ agencies.
• Prior to the importation of restricted goods into Ethiopia, import licenses must be obtained from the relevant
government agency, as per the provisions in the Proclamation No. 67/1997.
• Import licensing is used to ensure the safeguard public health, national security and welfare of the people.
• Import permits are issued upon the fulfillment of compliance requirements for imported products and the fees
may vary depending on the type of products imported according to the relevant Ethiopian Standards
12 Ethiopia Laws
12
3.1.2.4 Standards and Technical regulations
• Ethiopian Standards Agency (ESA) is a statutory body that was established according to the provisions provided in
the Ethiopian Council of Minister Regulation No. 193/2010
• ESA is the national standards body that develops, monitors, and implements the Ethiopian Standards (ES) and
technical regulations in Ethiopia
For more information about ESA and the standards, kindly visit the links provided below:
http://www.ethiostandards.org/
• Ethiopian Standards are mandatory for certain products like building materials, chemicals etc. For more
information on the list of mandatory standard products, Saudi Exporters can visit the link provided below:
https://verigates.bureauveritas.com/wps/wcm/connect/08da3d02-3e07-49a5-8c01-2758ecde7b16/Ethiopia+-
+BV+-List+of+compulsory+standards+and+regulated+products+Ed+1.0.pdf?MOD=AJPERES
• ESA is an affiliated International Electro technical Commission (IEC) member and a participating member of
CODEX
• Ethiopian Standards Agency (ESA) is the World Trade Organization (WTO) - Technical Barriers to Trade- (TBT)
enquiry point for disseminating information and making decisions on standards, technical regulations, and
certification.
• More information about the standard approval process is provided in Section 10 of this guide.
• All regulated goods imported into Ethiopia, such as chemical, building materials etc. have to satisfy conformity
assessment processes to ensure alignment with Ethiopian Standards.
• This program is known as the Inspection Certificate Program and is implemented by the Ethiopian Conformity
Assessment Enterprise (ECAE), to ensure conformity of products.
• Products are certified in Ethiopia by ECAE according to the relevant Ethiopian Standards.
• More information on the standard approval process is provided in Section 10 of this guide.
3.1.2.6 Accreditation14
• Ethiopian National Accreditation Office (ENAO) is the national accreditation body established under the
provisions of the Ethiopian National Accreditation Office Re-establishment Council of Ministers Regulation No.
279/2012.
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Ethiopia laws
13
• ENAO is responsible for the accreditation of certification bodies, inspection bodies, testing and calibration
laboratories in Ethiopia.
• ENAO operates under the supervision of the Ministry of Science and Technology in Ethiopia. For more
information about ENAO and their services, Saudi exporters are encouraged to visit the link provided below:
http://www.enao-eth.org/
3.1.2.7 Labelling
• The labelling requirements for products in Ethiopia is provided by the Ethiopian Standards Agency
For more information on the regulation for labelling, kindly visit the link provided below:
http://www.ethiostandards.org/other%20files/Binder9.pdf
• Products must be labelled in English or Amharic or can be labelled as a combination of both
• More information on labelling is provided in Section11 in this guide.
• Prior to importing food, agricultural and meat products, all the sanitary requirements for importing food products
must be fulfilled by the exporter which needs to be checked and confirmed by relevant authorities at the exporting
country.
• In Ethiopia, the Ethiopian Food, Medicines and Healthcare Administration and Control Authority (EFMHACA) is
the national regulatory authority for food, pharmaceutical and cosmetics products.
• These products are subjected to inspection on arrival by the authorities from the respective government agencies.
More information on the regulator can be obtained from the link below:
http://www.fmhaca.gov.et/
4. Trade Remedies
4.1 Trade remedies by Ethiopia: Impact on Saudi Exporters15
Trade remedies are tools that facilitate the government of the Ethiopia to take remedial action against exports causing
material injury to the domestic industry.
14
4.1.1 Anti- dumping, Countervailing and Safeguard Measures
• Currently, Ethiopia has no laws and regulations for implementing the anti-dumping, countervailing and safeguard
measure on imported products. As a result, Ethiopia has not imposed any trade remedies on its trading partners in
the previous years.
• In case trade remedies are imposed later, Saudi exports advices Saudi exporters to follow the below mentioned
tackling measures
• Prior to exporting, Saudi exporters must understand the complete production cost of the product and its market
price in KSA.
• For avoiding imposition of quantitative restrictions on products imported from KSA, Saudi Exports advises the
Exporters to price the exported products not lesser than the price of that product and/or the production cost in
KSA.
• Saudi Exporters must also have prima facie evidence to prove that the products are not imported or priced at a
price lower than the production cost of the product in that country.
• Saudi Exports advises Saudi exporters to exercise caution while disclosing prima facie evidence and to share only
the needful.
15
• In cases where the supply is higher than demand, Saudi Exports advises the exporters to reduce the volume of
exports in a way that it does not affect the domestic industries.
• Saudi Exporters must also have prima facie evidence to prove that the volume of products imported will not harm
or injure the competitiveness of the domestic industries.
• Saudi Exports advises Saudi exporters to exercise caution while disclosing prima facie evidence and to share only
the needful.
16
Ministry of Trade
17
ECAA
16
Ababa Bole International Airport is the key airport in Ethiopia. For more information on ECAA, Saudi exporters can visit the
link provided below:
http://www.ecaa.gov.et/
18 Ethiopia Laws
17
5.3.2 Key Inland markets and transportation methods
According to the CIA, the major inland markets of Ethiopia is Addis Ababa which is the capital of Ethiopia. The key city and
distance from the nearest port are provided in the table below:
5.4.1 Major Shipping lines and Lead Time from KSA to Ethiopia19
Many large scale shipping lines are offering maritime transport service from key ports in Saudi Arabia to ports in Djibouti.
According to Linescape, Jeddah, King Abdul Aziz port, King Abdullah port and Jubail are the only ports of call in KSA for
container ships going to Ethiopia.
Table 6: Lead Time from KSA to Ethiopia
Ports in KSA Port of Jeddah King Abdul Aziz port King Abdullah Port Port of Jubail
Port of Djibouti 3 – 45 11 – 42 3 – 39 10 – 46
19 Linescape
18
5.4.2 Major Air transport routes and Lead Time from KSA to Ethiopia20
Goods can be exported by air from Jeddah, Dammam and Riyadh airports to Manila which is the major airport in Ethiopia
through Saudia Cargo. Table below provides the lead time for transporting goods by air from the major airports in KSA to
major airport in Ethiopia,
Ports in KSA Port of Jeddah King Abdul Aziz port King Abdullah Port Port of Jubail
It is estimated that by road it would cost SAR 5,700 for transport of goods from Djibouti to Ethiopia. Saudi exporters can obtain
the information from the link below:
http://blog.ethiotrack.com/2016/06/cost-of-road-transport-in-ethiopia.html
19
5.4.4 Rates of key routes for air cargo between KSA and Ethiopia22
The costs of air cargo from KSA airports to the Ethiopia airports are estimated in the Table below. Please note that the estimates
were based on certain assumptions which are also provided in the table below. The freight costs were estimated using
http://worldfreightrates.com/en/freight.
Table 9: Air cargo rates from KSA to Ethiopia
Transportation costs (SAR) Addis Ababa
Type of product exported Frozen food Frozen meat
Jeddah/ Riyadh/ Dammam/ Medina/ Taif/ Al Qassim 12,710 – 14,050 12,760 – 14,100
*Cost assumptions:
Method of shipping selected is air
Costs were estimated based on the industries available on World Freight Rates
The value of all products calculated was priced at 100,000 USD
Load was selected at 210 kg/cm and dimensions as 140*100*90
None of the accessorial charges (Hazardous or Insurance) were selected
The cost of transportation is a rough estimate
20
For more details about the incentives provided in Industrial parks in Ethiopia, kindly visit the following link below:
http://www.investethiopia.gov.et/investment-opportunities/strategic-sectors/industry-zone-
development
The Customs proclamation No. 859/2014 provides details about the types of warehouses, establishment of warehouses,
entry and withdrawal of goods etc. in Ethiopia. Ethiopian revenue & customs authority (ERCA) is responsible for providing
license, supervision, and control of all customs bonded warehouses and other customs storage places. For more information
on the warehouses administration provisions, Saudi exporters are encouraged to visit the link provided below:
http://www.ifrc.org/Global/Publications/IDRL/Customs-ProclamationNo.%20859-2014%20ETH.pdf
Depending upon the type of usage and the activities performed in the warehouse, Customs warehouses provided by ECRA
can be broadly classified as mentioned below:
24 Ethiopia laws
21
6.2.2 Costs of Storage
Goods are imported into Ethiopia via the port of Djibouti. The costs of storage in Djibouti port depends on the type of
container and number of days the goods are stored.
For more information on costs of storage, Saudi exported are requested to kindly visit the link provided below:
http://www.portdedjibouti.com/paid-prices.pdf
25 Ethiopia Chamber
22
Illustrative Import Process via Djibouti Port
I II III
Zoll
Douane
VI V IV
Zoll
Douane
$
VII VIII XI
= Process stage
23
Stage II: Bill of Entry via EDI
The importer/ Customs broker completes the Bill of Entry by completing the IM 4 form and submits the documents
required for customs clearance via EDI to the ERCA. The required documents (Discussed later in Section 7) and necessary
information should be submitted 5 days prior to the arrival of from the time of the discharge of last package from the
vessel.26
Note: Bill of Entry can be done online through ASYCUDA
26 Ethiopia laws
24
Stage IX: Importer / Customer
Imported goods are received by the importer/customer.
27 Ethiopia Chamber
25
Illustrative customs process
I II III
VI V IV
VII VII IX
I
Payment Goods are Payment of Duties for Goods are cleared
examined imported goods
= Process stage
26
Stage V: Goods are channelized
1) Depending on the declaration and documents submitted, the ASYCUDA system channelizes the goods as low risk
(Green), Moderate risk (Yellow) or high risk (Red).
2) If the product is classified as green, then the next step is stage VIII
7.3 Lead Time and Cost involved for Overall Import Process28
According to the World Bank, the associated time and cost of import for a standard goods shipment listed in the Table 10
below:
Table 10: Lead Time and Cost for Customs Process
Lead Time Cost
S. No Import Procedure
(Hours) (SAR)
1 Documents preparation 194 2,810
2 Customs clearance and inspections 166 2,770
Total: 360 5,580
28 Doing Business
27
8. Key import documents
8.1 Summary table of key import documents
8.1.1 Mandatory Documents29
Seven mandatory documents are required for importing goods into Ethiopia.
Table 11: Mandatory documents for Imports
Procured Procured
# Document 1 2 3 4 5 6 7 8 9
from for
Original airway bill / Shipping
1
Bill of Lading Company
Customs ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
2 Commercial Invoice Exporter Customs ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Import
3
Declaration Form
Importer Customs ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
4 Packing List Exporter Customs ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
5 Certificate of Origin MCI Customs ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Government
6 Import permit
agencies
Customs ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Ethiopian
7 Bank Permit
banks
Customs ✓✓✓✓✓✓✓✓✓
Note:
1 - Building Materials, 2 - Chemicals & Polymers, 3 - Food Products, 4 - Packaging, 5 - Consumer Durables, 6 - Heavy Machinery & Electronics, 7
- Precious Metals & Jewelry, 8 - Pharmaceuticals, 9 – Textiles
29 Ethiopia Chamber
28
8.2 Documents Overview
30 Intracen
31 Aramex
32 Government of Australia
29
Figure 7: Customs Import Declaration – Sample
33 KK Freight
30
8.1.6 Bank Permit35
A Bank permit must be obtained for any foreign exchanges transactions that are performed in Ethiopia.
35 Daschen Bank
36 Intertek
37 Sigmaaldrich
38 US CBP
31
Figure 12: Import Permit - Sample
8.1.10 GMP39
The “Good Manufacturing Practice” certificate is provided to authenticate that the product conforms to all requirements
prescribed by the regulatory authority. The scope of the certificate covers all aspects from the materials used, manufacturing
facilities and equipment to the level of training of the employees.
39 ISPE
32
Figure 14: Phytosanitary Certificate – Sample
33
Table 14: Key Government Agencies for Specific Industries
S.
Standard Agency Name 1 2 3 4 5 6 7 8 9 Web link
No
Ethiopian Standards http://www.ethiost
1
Agency ✓✓ ✓ ✓ ✓ ✓ ✓ andards.org/
Food, Medicine and
Health Care
http://www.fmhaca
2 Administration and ✓ ✓ .gov.et/
Control Authority of
Ethiopia (EFMHACA)
Note:
1 - Building Materials, 2 - Chemicals & Polymers, 3 - Food Products, 4 - Packaging, 5 - Consumer Durables, 6 -
Heavy Machinery & Electronics, 7 - Precious Metals & Jewelry ,8- Pharmaceuticals, 9 – Textiles
34
10.2 Ethiopian Standards Agency (ESA)
Ethiopian Standards Agency is the national regulatory authority for general industries in Ethiopia. Ethiopian Standards Agency
promotes the Ethiopian standards according to the provisions provided in the Regulation No193/2010. ESA is involved in
development of various standards at the national and international level. ESA is the national inquiry point and develops
conformity assessment guideline and technical regulations for products produced or imported to Ethiopia. ESA performs
inspection, testing and provides certification for imported products. For more information on ESA certification, Saudi
Exporters can copy and paste the link provided below in web browser:
http://www.ethiostandards.org/
I II III
Submission of application Assessment of Clinical trials on
form, documents, and application the sample
application fee
IV
Inspection Certificate
is issued
41 SGS
35
Stage I:
Applicant obtains all the relevant certifications and documents from the manufacturer. Applicant submits the request for
certification form along with the notified documents mentioned in Section 9.2.2 to the ESA authorized third party laboratories.
Stage II:
Submitted documents are evaluated by the authorities in the accredited laboratories. If the test report is provided, the report
will be evaluated by the testing laboratory to confirm the compliance of the product with nationally accepted product
standards
Stage III:
Inspector/ inspecting body physically inspects the imported goods and collects samples for laboratory testing. The collected
sample are sent to a recognized testing laboratory. The laboratory performs proper coding and testing on the collected
samples and the test results are compiled.
Stage IV:
If the test results ensure the conformity of the products according to the Ethiopian standards, then a certificate of inspection
is approved for the product submitted. The applicant pays all the relevant fees and charges after which the certificate of
inspection is issued to the applicant
36
national safety and security through services like assessment of product qualities and registration of drug registration. For
more information on EFMHACA, Saudi Exporters can visit the link provided below:
http://www.mris.fmhaca.gov.et/public/home
I II III
Submission of application Assessment of Clinical trials on
form, documents, and application the sample
application fee
IV
Product is
registered
Stage I:
Applicant submits the drug registration form to the EFMHACA along with all the medicine application dossier. The drug
registration fee is paid by the applicant and the copy of the receipt is submitted to the EFMHACA along with the documents.
42 FMHACA
37
Stage II:
EFMHACA evaluates the submitted application form and the medicine dossier to ensure the completion of data. If required,
the applicant is notified to submit additional data of clinical studies. On acceptance of application form, an application
number is allocated and provided to the applicant. The data provided in the application and dossiers are entered into a
Medicine Registration Information System (MRIS). Authorities from the registration section analyses the submitted
documents to ensure compliance of the imported drug products.
Stage III:
On successful evaluation, sample of the drug products must be submitted along with the laboratory Quality Control
Requisition Form to the product quality assessment directorate. Saudi Exporters can obtain the requisition form from the
link provided below:
http://www.rrfa.co.za/wp-content/uploads/2014/01/Samples-Submision-Form-030.001.pdf
Clinical tests to ensure the quality, purity, and other physico-chemical qualities of the drug products are conducted.
Stage IV:
Findings of the clinical trials are compiled and evaluated. Laboratory reports along with the dossier submitted is forwarded
to the medicine registration and licensing directorate Director of FMHACA. If the submitted data and results of clinical trials
confirms the conformance of pharmaceutical products, the registration director issues the market authorization certificate
to the applicant. Once registered, the market authorization certificate is valid for 5 years. Renewal of market authorization
must be applied at least 120 days prior to expiry.
38
10.3.3 Costs involved43
Table 16: Costs involved in pharma registration process
10.3 Customs Clearance Process for Imported Food at Ethiopia land port44
Food products are imported into Ethiopia under the regulations provided in the Ethiopian Food, Medicine and Healthcare
Administration and Control Authority Proclamation No. 661/2009. Imported food products are regulated by Food, Medicine,
Healthcare and Control Authority under the Ministry of Health in Ethiopia. FMHACA authorities ensure the conformance of
imported food products at the ports of entry.
The process for clearance of food products at port of entry is illustrated in Figure 17 below:
Stage I:
Importer must obtain an import permit from the relevant government agencies or regulatory bodies depending upon the
product types. Importer must also obtain a Letter of Credit covering the complete value of imported goods. Importer must
obtain the other documents mentioned in section from the relevant government agencies or authorities
Stage II:
Importer completes the customs declaration and submits all the necessary documents to customs for clearance via EDI to the
Ethiopian Revenue and Customs Authority.
Stage III:
Imported food products are detained at the port of entry for inspection. Submitted documents are evaluated by the customs
officer. Authorities from the respective government agencies perform examination and laboratory analysis to ensure the
safety and quality of the imported food products.
43
Ethiopia Regulatory - Overview
44 USDA
39
Illustrative Imported Food Clearance Process at Port
I II III
✓
IV
Clearance of goods
= Process stage
Stage IV:
If goods comply with the health and SPS regulations, then the goods are cleared and a release note is issued to the importer
40
• Import permit/ Special certificates/permits like phytosanitary and sanitary certificates depending on the type of
food products imported
Laws under which the food products are governed in Ethiopia are
• Ethiopian Food, Medicine and Healthcare Administration and Control Authority Proclamation No. 661/2009
• Ethiopian Food, Medicine and Healthcare Administration and Control Authority Regulation No. 189/2010
• Food Medicine and Healthcare Administration and Control Councils of Ministers Regulation No 299/2013.
45Agri
Exchange
41
Table 17: Labelling requirements
Language
S. no Category Information required
requirements
1 Product Name or
-
Name of the Food
2 -
Nutrient content
a) List of ingredients (except for single ingredient
Complete list of
3 foods) in descending order of weight
ingredients b) List of ingredients that may cause an allergic
reaction
Net contents and
4
drained weight - All information
must be provided in
Name and address of
English or Amharic
manufacturer,
a) Name and address of the manufacturer, packer, or a combination of
5 repacked, packer,
distributor, importer, exporter or vendor both
importer, trade and
distributor
Direction /
8 If needed
instruction for use
Additional GM foods must carry the label with the following
9
information statement: ‘genetically modified food’
46 FMHACA
42
10.3.2 Laws and Regulations
“Guideline for Registration of medicines 2014” provides information about the labelling and packaging requirements of drugs
in Ethiopia.
For more information about the laws and regulations, Saudi exporters may visit the link provided below:
http://www.fmhaca.gov.et/documents/Guideline%20for%20Registration%20of%20Medicines%202014.pdf
The labelling requirements for food products are listed in the table below:
Table 18: Pharma labelling requirements
Language
S. No. Category Information required
requirements
1 Product Name -
a) Pharmaceutical form
2 Dosage form and strength
b) Route of administration
Details about weight / a) The volume of the contents
3 All
quantity b) The number of doses, or quantity in container information
Formulation or Qualitative and quantitative composition of active must be
4 ingredient(s),preservative(s), and antioxidant (s)
Composition provided in
Handling and storage English or
5 - Amharic or a
conditions
Including License number, Name and address, combination
6 Manufacturer details of both
Country of origin
7 Dates Expiry date and Manufacturing date
8 Additional information Complete directions for Use
9 Batch number -
47 FMHACA
43
10.4.2 Laws and Regulations
“Cosmetics and Sanitary Items Directive No.24./2014” provides information about the labelling and packaging requirements
of cosmetics.
For more information about the laws and regulations, Saudi exporters may visit the link provided below:
http://www.fmhaca.gov.et/documents/Cosmetics%20and%20Sanitary%20Items%20Directive.pdf
The labelling requirements for cosmetic products are listed in the table below:
Table 19: Cosmetic labelling requirements
Language
S. No. Category
requirements
1 Name & brand of the product
2 Name and full address of the manufacturer, including country of origin
3 Form of the product
4 Intended use of the product All information
5 Instructions of use must be
6 Net contents provided in
7 List of ingredients English or
8 Batch or lot number Amharic or a
9 Precautions and warnings (wherever necessary) combination of
10 Storage condition (as appropriate) both
11 Expiry date, best before or best before (period after opening)
SPF or equivalent category description shall be disclosed on the label of
12
sunscreen products
44
12. References
S. Foot notes
No
1 http://www.doingbusiness.org/data/exploreeconomies/ethiopia
2 https://www.camelot-mc.com/en/
3 https://www.export.gov/article?id=Ethiopia-Business-Customs
4 http://www.doingbusiness.org/data/exploreeconomies/ethiopia#enforcing-contracts
5 http://www.doingbusiness.org/data/exploreeconomies/ethiopia
6 http://www.erca.gov.et/images/Documents/Customs/Preferetial_Trade_Agreement/50.pdf *
7 http://www.erca.gov.et/images/Documents/Customs/Preferetial_Trade_Agreement/50.pdf *
8 https://www.export.gov/article?id=Ethiopia-Import-Tariffs
http://www.erca.gov.et/images/Documents/Proclamation/VAT/reg-no-79-2002-council-of-ministers-value-
9
added-tax.pdf *
10 https://www.2merkato.com/articles/tax/types/54-excise-tax-in-ethiopia
11 https://www.2merkato.com/images/downloads/regulation_133_2007.pdf *
12 https://www.2merkato.com/images/downloads/proclamation_608_2008.pdf *
13 http://www.ethdiaspora.org.et/phocadownloadpap/Publications/moti-memorandumonthe-ftr.pdf *
https://chilot.files.wordpress.com/2017/04/regulation-no-279-2012-ethiopian-national-accreditation-
14
office.pdf
15 http://www.ethdiaspora.org.et/phocadownloadpap/Publications/moti-memorandumonthe-ftr.pdf *
http://www.mot.gov.et/information/-/asset_publisher/oK9j/content/port-utilization-and-transit-afairs-
16
department
17 http://www.ecaa.gov.et/
18 https://www.2merkato.com/articles/shipping/shipping-info/70-dry-ports-in-ethiopia
19 https://www.linescape.com/
20 http://worldfreightrates.com/en/freight
21 http://worldfreightrates.com/en/freight
22 http://worldfreightrates.com/en/freight
23 http://www.investethiopia.gov.et/investment-opportunities/strategic-sectors/industry-zone-development
24 http://www.ifrc.org/Global/Publications/IDRL/Customs-ProclamationNo.%20859-2014%20ETH.pdf *
http://www.ethiopianchamber.com/Data/Sites/1/psd-hub-publications/the-impact-of-border-clearance-
25
procedures-on-the-cost-of-doing.pdf *
26 https://www.2merkato.com/images/downloads/proclamation_60_1997.pdf *
http://www.ethiopianchamber.com/Data/Sites/1/psd-hub-publications/the-impact-of-border-clearance-
27
procedures-on-the-cost-of-doing.pdf *
28 http://www.doingbusiness.org/data/exploretopics/trading-across-borders
45
http://www.ethiopianchamber.com/Data/Sites/1/psd-hub-publications/the-impact-of-border-clearance-
29
procedures-on-the-cost-of-doing.pdf *
30 http://www.intracen.org/coffee-guide/logistics-and-insurance/bills-of-lading-and-waybills/
31 http://www.lynden.com/lint/PDF/Shipping_Forms/Commercial-Invoice.pdf *
https://www.border.gov.au/Importingandbuyinggoodsfromoverseas/Documents/importdeclarationsweb.p
32
df *
33 http://www.kkfreight.com/packing-list.html
http://www.iccwbo.org/chamber-services/trade-facilitation/certificates-of-origin/what-is-a-certificate-of-
34
origin-/
35 https://dashenbanksc.com/internationalbanking/foreignexchangepermits.html
36 http://www.intertek.com/government/certificate-of-conformity/
37 http://www.sigmaaldrich.com/united-kingdom/technical-services/c-of-a.html
38 https://help.cbp.gov/app/answers/detail/a_id/197/~/importing---licenses%2Fpermits
39 http://www.ispe.org/gmp-resources
http://www.inspection.gc.ca/plants/exports/phytosanitary-
40
certificates/eng/1299872808479/1299872974262
41 http://www.sgs.com/-/media/global/documents/flyers-and-leaflets/sgs-gis-pca-leaflet-ethiopia-a4-en.pdf *
42 http://www.mris.fmhaca.gov.et/public/registration
43 www.idc-dx.org/download/file/fid/470
https://gain.fas.usda.gov/Recent%20GAIN%20Publications/Ethiopia%27s%20Food%20and%20Ag%20Imp
44
ort%20Reg%27s%20and%20Standards%20(FAIRS)_Addis%20Ababa_Ethiopia_6-12-2015.pdf *
http://agriexchange.apeda.gov.in/IR_Standards/Import_Regulation/Ethiopias%20Food%20and%20Ag%20I
45
mport%20Regs%20and%20Standards%20FAIRSAddis%20AbabaEthiopia6122015.pdf *
http://www.fmhaca.gov.et/documents/Guideline%20for%20Registration%20of%20Medicines%202014.pd
46
f*
47 http://www.fmhaca.gov.et/documents/Cosmetics%20and%20Sanitary%20Items%20Directive.pdf *
*Kindly copy and paste this link on a web browser to know more information and for updates
46