COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF MARKETING MANAGEMENT
IMPORT EXPORT POLICY & PROCEDURES
GROUP ASSIGNMENT
SECTION-“A”
Group Members ID No
1. Abrham Mamo…………………………………………..DBUE/0612/13
2. Aychluhm Tatek…………………………………………DBUE/0617/13
3. Bemnet Zewdie…………………………………………..DBUE/0620/13
4. Dawit Tadesse……………………………………………DBUE/0830/13
5. Demwoz Mamo…………………………………………..DBUE/0626/13
6. Getaneh Kinfe………………………………....................DBUE/0629/13
7. Getnet Tesfaye…………………………………………...DBUE/0630/13
8. Hayleyesus Abera………………………………………..DBUE/0632/13
9. Henok Wuhibe…………………………………………...DBUE/0633/13
10. Hermela Emshaw………………………………………..DBUE/0635/13
11. Kidus Abate……………………………………………....DBUE/0638/13
12. Yonas Teshome…………………………………….…….DBUE/0652/13
Submitted to: Selam G.
March, 2025 G.C
Debre Birhan, Ethiopia
Documents Required For Export
A. Commercial Invoice
The commercial invoice is a legal document between the exporter and the buyer (in this case,
the foreign buyer) that clearly states the goods being sold and the amount the customer is to
pay. The commercial invoice is one of the main documents used by customs in determining
customs duties. A commercial invoice is a bill for the goods from the seller to the buyer. These
documents are often used by governments to determine the true value of goods when assessing
customs duties. Governments that use the commercial invoice to control imports will often
specify its form, content, and number of copies, language to be used and other characteristics.
It is a basic document which gives full details of the contents of the shipment and serves as
seller's bill of goods and, therefore, sets out the terms of sale. An exporter is required to prepare
this complete document which must fully identify the overseas shipment and serve as a basis for
the preparation of all other documents which, in greater or lesser detail reproduce information
from it.
Normally, apart from the special requirements of the importer, form of invoice will be similar to
that used for domestic business. There is no standard form and it is left to the exporter to change
his own design, always ensuring that it will be convenient for use by foreign parties. In fact, the
exporter should strictly follow the requirements of the purchaser in regard to invoicing and, as
the requirements of foreign laws vary widely and are revise from time to time, it is important for
an exporter to keep him-self fully informed, about such changes in government regulations of the
importing countries.
According to the Uniform Customs and Practices for Credit
1. Unless otherwise specified in the credit, commercial invoices must be made out in the name
of the applicant for the credit;
2. Unless otherwise specified in the credit, banks may refuse commercial invoices issued for
amounts in excess of the amount permitted by the credit, and
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3. The description of the goods in the commercial invoice must correspond with the
description of the goods in the credit.
Check list of the items making up a commercial invoice should always be kept in view though
not all items are required for every transaction:
▪ Name and address of the shipper ▪ Quantities and description of
Invoice number and date commodities
▪ Buyer's and Seller's order number ▪ Net weight and gross weight as well
as measurement in metric units
▪ Name and address of the overseas
customer (buyer) ▪ Specification of packing
▪ Name of the vessel and sailing date ▪ Unit price and total value
Terms of payment
▪ Terms of sale
▪ Insurance reference
▪ Bill of Lading number
▪ Customs, and consular declaration
▪ Import Licence number and date
Shipping marks and number on
packages ▪ Letter of Credit number and date
B. Packing List
Exporters are required to prepare an accurate packing list showing, item by item, the contents of
the packages or cases so as to enable the receiver of the shipment to carry out a check. The
packing list should give a description of the goods, number and marks on the packages, quantity
per package, net and gross weight, measurement, etc. Properly prepared, these packing lists
ensure movement of goods and avoid unnecessary unpacking. There is no particular form to be
used but for purposes of guidance a specimen copy may be seen. The packing list should be
included in carton or package, and can be attached to the outside of a package with a copy
inside.
Considerably more detailed and informative than a standard domestic packing list, an export
packing list lists seller, buyer, shipper, invoice number, date of shipment, mode of transport,
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carrier, and itemizes quantity, description, type of package, such as a box, crate, drum, or carton,
the number of packages, total net and gross weight (in kilograms), package marks and
dimensions, if appropriate. Both commercial stationers and freight forwarders carry packing list
forms. A packing list may serve as conforming document. It is not a substitute for a commercial
invoice. In addition, U.S. and foreign customs officials may use the packing list to check the
cargo so the commercial invoice should reflect the information shown on the packing list.
This document is used by freight forwarders to determine weights and freight costs. It’s also
used by U.S. and/or foreign customs officials to check the contents of a specific package or
carton.
C. Certificate of Origin or pre shipment inspection where required
Certificate of origin serves as an evidence to show the actual country of origin (place of
production or manufacturing) of the goods. It is signed in the exporting country by
the consular of the importing country or by the exporter or by the Chamber of
Commerce, as the regulations may require. The custom regulations of certain
countries require a certificate of origin to be produced before clearance of imported
goods and for assessment of duty. The certificate is usually required by the countries
where goods from certain countries are granted preferential treatment or where
import of goods from certain countries is wholly or partially prohibited. Sometimes,
the certificate of origin is endorsed on the back of the relative invoice which is then
known as a "certified invoice". In some cases, the certificate of origin is combined
with consular invoice for tariff purposes.
This Certificate may be required to comply with the requirements of foreign customs (i.e.,
country of importation), for letters of credit, or simply at the request of the buyer. There are two
types of Certificates of origins: One type is known as “generic” or “non-
preferential,” which means that the country of origin of the goods stated on the
document does not qualify the goods for any preferential treatment with the country on the
receiving end. A second type of certificate may be required to obtain a free trade agreement
(FTA) preferential tariff rate.
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D. Insurance policy
Insurance policy/certificate is a document associated with transit of goods in trade, whereby the
insurer undertakes to indemnify the assured against damage for loss of goods due to
risks/hazards in transit, to the extent and in the manner mentioned in this document. In a OF
contract of sale, the seller has to take the requisite insurance cover to protect his own as well as
the buyer's interests in case of damage or loss of goods. The insurance policy/certificate must be,
such as to satisfy the conditions of the letter of credit/ sale contract, and roust coder all risks
specified therein, or which are considered to be normally associated with trade in a particular
product.
E. Letter of Credit
A letter of credit is a written undertaking by a bank, the issuing bank, to the seller, the
beneficiary in accordance with the instructions of the buyer, the applicant, to effect payment up
to a prescribed amount, within a prescribed time period against prescribed documents, provided
these are correct and in order i.e. they conform with the instructions of the applicant. Letters of
credit are one of the most used methods of payment in international transactions. Letters of credit
are usually issued subject to the provisions of the "Uniform Customs and Practices for
Documentary Credits" issued by the International Chamber of Commerce. It contains the rules
governing the letter of credit transactions and the interpretation of various terms relating thereto
and has been subscribed by almost all the major trading countries of the world.
There are usually two banks involved in a documentary credit operation. The issuing bank is the
bank of the buyer. The second bank, the advising bank, is usually a bank in the seller's country.
The second bank can, be simply an advising batik, or it can also assume the more important role
of a confirming bank. In either case, it undertakes the transmission of the credit, and by doing so,
implies the authenticity of the signature of the issuing bank. If the second bank is simply
"advising the credit" it will mention this fact when it forwards the credit to the seller. Such a
bank is under no commitment to pay the seller. If the advising bank is also 'confirming the credit'
it will so state. This means that the confirming bank, regardless of any other consideration, must
pay, accept, or negotiate without recourse to the seller; provided all the documents are in order &
the credit requirements are met. A letter of credit contains essential details like seller's name,
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buyer's name, value, usance documents required, description of goods, shipment & negotiation
dates, port of shipment & destination etc.
Types of documents used in Import-Export
A. Commercial invoice
The commercial invoice is the cornerstone of the import-export documentation
process. It is a legally binding document that outlines the details of the transaction,
including the seller and buyer's information, a comprehensive list of goods being sold
(with descriptions, quantities, unit prices, and total amounts), and terms of sale (like
payment terms and delivery conditions). This document is critical for customs
clearance, as it provides customs officials with the necessary information to assess
duties and taxes. In addition to facilitating the shipping process, the commercial
invoice serves as a legal document that can be referenced in disputes or audits.
B. Packing list
A packing list is a document that details the contents of each package or container in a shipment.
It helps the customs authorities and the freight forwarders to inspect, identify, and handle the
goods. A packing list should include the following information: seller's name and address,
buyer's name and address, invoice number and date, number and type of packages or containers,
marks and numbers of packages or containers, description and quantity of goods, net weight and
gross weight of each package or container, dimensions of each package or container, and any
special instructions or remarks.
C. Bill of Lading (B/L)
A bill of lading is a document that serves as a contract of carriage, a receipt of goods, and a
document of title for a shipment by sea. It is issued by the carrier or its agent to the shipper or its
agent, and it specifies the terms and conditions of the transportation, the name and address of the
consignor, the consignee, and the notify party, the port of loading and the port of discharge, the
vessel name and voyage number, the number and type of packages or containers, the description
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and quantity of goods, the freight amount and payment method, and any other relevant
information. A bill of lading can be negotiable or non-negotiable, depending on whether it is
made out to order, to bearer, or to a named person.
It is an important document for completing the export cycle. Generally, it is a specific contract
that is signed between the goods’ owner (the exporter) and the carrier (transporter or freight
forwarder). In this particular document, there are multiple things stated related to the shipment
details, such as: What kind of goods are shipped? Where are the goods shipped from? and where
are the goods shipped?
Once the shipment process starts and the transporter picks goods from the exporter’s place, then
the bill of landing starts working like a receipt that is issued by the carrier. You can consider it as
a contract or a piece of evidence that shows you avail of the carrier’s services.
D. Combined transport document
A combined transport document is a shipping document used in the supply chain to facilitate the
movement of goods through multiple modes of transportation. It serves as a comprehensive
record that covers the entire journey of the cargo, from the point of origin to the final destination.
The combined transport document provides essential information such as the details of the
goods, transport operators, loading and unloading locations, and the responsibilities of each party
involved in the transportation process.
E. Certificate of inspection/Quality control
Certificate of inspection certifies that the goods have been inspected and meet specified quality
standards before shipment. It is usually issued by a third-party inspection agency and may include
details such as the type of inspection conducted, the results, and compliance with relevant
regulations. This certificate helps ensure that the imported goods meet the buyer's specifications
and regulatory requirements, reducing the risk of disputes upon arrival.
F. Customs Declaration Annex Form (CDAF)
The Customs declaration annex form (CDAF) is a supplementary form used in conjunction with
the main customs declaration to provide additional information about the goods being imported or
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exported. It typically includes details such as the nature of the goods, their value, and any
applicable tariffs or duties. The CDAF helps customs authorities assess the shipment accurately
and ensures compliance with local regulations.
G. Customs Declaration Form (CDF)
The Customs Declaration Form (CDF) is a formal document submitted to customs authorities
when goods are imported or exported. It includes essential information about the shipment, such
as the description of goods, their value, origin, destination, and applicable tariffs. The CDF is
critical for the clearance process, as it allows customs to assess duties or serves as the basis for
calculating customs duties and ensure compliance with trade regulations. It is one of the most
commonly used foreign trade documents.
H. Certificate of Origin
A certificate of origin is a document that certifies the country where the goods were produced,
manufactured, or processed. It is used to determine the eligibility of the goods for preferential
tariffs, quotas, or other trade benefits under various trade agreements or regulations. A certificate
of origin should include the following information: exporter's name and address, importer's name
and address, description and quantity of goods, origin criteria, issuing authority, date and place
of issue, and signature and stamp of the issuer.
I. Bill of Exchange
A bill of exchange is a written, unconditional promise made by the importer to pay a specified
amount to the exporter at a predetermined time or on demand. This financial instrument serves as
a formal request for payment and outlines the terms and conditions under which payment is to be
made.
One of the key benefits of a bill of exchange is that it facilitates financing for the exporter.
Instead of waiting for payment until goods are received and verified, the exporter can present the
bill to a bank, often obtaining immediate payment or financing based on the bill’s value. This can
significantly improve cash flow for the exporter, allowing them to reinvest in their operations
more quickly.
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The bill of exchange can also serve as a negotiable instrument, meaning it can be endorsed and
transferred to third parties, providing additional flexibility and liquidity in financial transactions.
Furthermore, it establishes a clear legal obligation for the importer to pay, which can be
beneficial in case of disputes, as it provides a documented trail of the transaction.
J. Shipping Bill
Shipping Bill is the principal document required by the customs authorities. It contains
description of export goods and other particulars like number and description of package(s),
marks and number, quantity and value as defined in the Sea Customs Act, Indian or foreign
merchandise, name of the vessel in which goods are to be shipped, country of destination, etc. It
is only after the Shipping Bill, is stamped by the customs that cargo is allowed to be carted to
Port sheds and Docks. It is used for export by sea or air or even for transportation from one port
to another within the country.
There are separate forms of shipping bill for free goods (Free Shipping Bill), goods on which
export duty is payable (Dutiable Shipping Bill), goods for which there is a claim for drawback of
duty (Drawback Shipping Bill) and in case of imported goods for re-export which are kept in
custom bonded warehouses (Shipping Bill for Shipment ex-bond).
K. Shipment Advice
Depending upon the terms of sale on a specific stipulation in the contract, and immediately after
shipping the goods, the exporter has to inform the foreign buyer of the fact of shipment. This is
usually done in the form of a `shipment advice' giving invoice number; description of goods,
quantity, number of packages, marks and numbers, name of the carrier, bill of lading/airway bill
number and date, expected time of arrival of the carrier at the port of destination, etc. This
enables the foreign buyer to arrange insurance coverage in respect of goods in transit and also for
making advance arrangements for the clearance of the goods at the port of destination.
L. Proforma invoice
Proforma invoice is an invoice provided by a supplier prior to the shipment of merchandise. It
serves as a preliminary bill of sale, providing an estimated cost to the buyer before the
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actual sale takes place. It outlines the goods or services being offered, including
descriptions, quantities, and prices. This document is crucial for helping buyers make
informed decisions and is often used to secure financing or initiate purchase orders.
Additionally, it can assist in calculating import duties and taxes. Although it is not a
demand for payment, it creates a formal agreement of intent or may be used when
applying for an import licence / permit or arranging foreign currency or other funding purposes,
which can facilitate smoother transactions.
M. Black list certificate
A Black List Certificate indicates that a company or individual is on a blacklist, often due to
previous fraudulent activities or violations of trade regulations. This certificate may be required
by banks or trading partners to assess the risk associated with engaging in business with certain
entities. It helps protect businesses from potential losses due to non-compliance or unethical
practices.
N. Tin certificate
The Tax Identification Number (TIN) certificate is issued by tax authorities to identify taxpayers
for tax purposes. In international trade, having a TIN is often mandatory for businesses to
facilitate transactions and comply with tax regulations. The TIN helps in tracking tax obligations
and ensuring that businesses are compliant with local tax laws.
O. Insurance debit advice
An Insurance Debit Advice is a notification from an insurance provider to the insured party,
indicating that a charge has been made to their account for insurance premiums or related fees.
This document serves as a record of the transaction and may include details about the policy,
coverage amounts, and payment terms. It is essential for maintaining accurate financial records.
P. Duty free form
A Duty-Free Form allows certain goods to be imported without incurring customs duties,
typically under specific conditions such as diplomatic exemptions or special trade agreements.
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This document must be presented to customs authorities at the time of importation and often
requires supporting documentation to justify the duty-free status.
Q. Letter to the bank for collection/ Negotiable documents
The bank for collection letter instructs a bank to collect payment on behalf of the seller or handle
negotiable documents related to a transaction. It typically includes details about the transaction,
such as invoice numbers, amounts due, and instructions for releasing documents upon payment.
This process helps facilitate international trade by ensuring that payments are collected securely
and efficiently.
R. Receipt for payment of port charges
Payment of port charges receipt confirms that port charges (such as docking fees, handling fees,
or storage fees) have been paid for goods arriving at or departing from a port. It serves as proof of
payment and may be required for customs clearance or to release goods from port facilities.
Accurate records of port charges are essential for financial accounting and compliance.
S. Vehicle ticket
A Vehicle Ticket is issued for vehicles entering or exiting a facility, such as a port or warehouse.
It typically includes details like vehicle identification, entry/exit times, and any fees paid (if
applicable). This ticket helps manage traffic flow and track vehicles within restricted areas.
T. Insurance premium payment Certificate
Insurance premium payment Certificate serves as proof that an insurance premium has been paid
for a specific policy. It includes details such as policy numbers, coverage amounts, and payment
dates. This document is essential for businesses to demonstrate that they have adequate insurance
coverage for their shipments, which can be crucial in case of loss or damage during transit.
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