Ethiopian exports are increasing, and the government supports the industry, so starting a trading firm there could be successful. Agriculture-related products make up the majority of Ethiopia’s exports. Only domestic investors are permitted to trade these goods, live animals, and other low-value products. To receive a trade license, exporters must register with the Ministry of Trade and Industry. Businesses that want to export from Ethiopia should be aware of the trade procedures required to get an authorization certificate from the Quality and Standards Authority of Ethiopia. They should also prepare an application for Quality Testing and Certification. Finally, they should complete the Customs declaration.

Documents needed for the approval of an export permit

The following records are necessary:

• Bill from the seller
• Export permit good for the entire year
• Tax registration document (TIN certificate).
• Form for an export permit, properly completed by the customer and bearing their signature and stamp.

When a customer’s name appears, a list following it should show that they have paid for all outstanding NBE goods.

When it comes to payment, exporters should:

• There should be a sales/purchase agreement between the two parties (importer and exporter).

Application for certification and quality testing

When the products are ready for trade, prepare for appropriate packaging, request quality testing from the Ethiopian Quality and Standards Authority, and obtain the export authorization certificate.

Customs statement

To facilitate customs processes and authorize the shipment of the export products, the exporter declares all relevant information about the export consignment and should send all supporting original documents to the Customs Clearing Agents to avoid expensive delays. The Exporter shall deliver the trade Permit, a copy of the Customs

Send the GSP to form A, the EURI Movement Certificate, the Ethiopian Customs Declaration form, the Declaration Annex form, and the Certificate of Origin to the clearing agents.

VAT registration, VAT, and exporters

All exports of goods and services are subject to VAT at zero rates following the Value Added Tax Proclamation (285/2002) and the Regulation by the Council of Ministers on VAT (Regulation 79/2002). This indicates a 0% VAT charge (or no VAT has to be charged). What’s more, an exporter is qualified to recoup the VAT paid on all items and services used to create the exports.

However, because even at a zero rate, an exporter is still making taxable shipments, the law mandates that they register if their turnover exceeds the registration thresholds.

general guidelines for exporters.

General export policies for exporters

The general export policies for exporters are outlined below:

A license to export must be obtained, and exporters must register with the ministry of trade

The exporter must produce internal instructions on the works, production, and preparation of the goods for trade to acknowledge receipt of the buyer’s order.

Finalize the export contract (sales contract agreement)

The contract specifies the means of payment for the consignment and gives the relevant commercial bank via hand delivery, fax, telex, or mail. Commercial banks demand six copies of the letter of credit as well as five copies of the consignment note, advance payment, and cash against papers.

Request for an export permit

Register the trade order with a commercial bank, and that institution will then grant the export license for the specific shipment. Except for coffee, all exports must be registered with one of the commercial banks. Registration for coffee is done at the National Bank of Ethiopia.

Fill out the customs declaration annex

Fill out the Customs Declaration Annex form provided by the commercial bank and send it to the department of international and foreign business for registration of trade consignments.

When export products are prepared, arrange for appropriate packaging, submit an application to the Ethiopian Quality and Standards Authority for quality testing, and obtain the Export Authorization Certificate.

Compliance with origin rules

To be eligible for preferential tariff treatments or free trade agreements, fill out the original certificate provided by the Ethiopian Chamber of Commerce and Sectoral Associations or the Customs Commission. Fill out the special movement forms or certificates issued by the Customs Commission to comply with tariff schemes.

Customs declaration

To facilitate customs formalities and authorize the dispatch of the export goods, the exporter declares all relevant information about the export consignment and should forward all original supporting documents to the Customs Clearing Agents to avoid expensive delays. The exporter must therefore give the clearing agents the Export Permit, a copy of the Customs Declaration Annex form, the Ethiopian Customs Declaration form, the Certificate of Origin, and the special movement forms/certificates.

Export cargo transfer

Transport documentation should be obtained from the appropriate carrier to enable the movement of products. The form of transport documents depends on the mode of transportation, but the carrier or a representative should fill them out and sign them.