insurance

Ethiopian insurance corporation that explain inland transit

Such as –bandits

-guerilla

-shifter

-standard risk

-Transit-risk

Foreign insurance such as

*Group insurance

*Marin insurance

Bill of lading: which show container number and mark?

A bill of lading (sometimes abbrivated as B/LorBOL)is a document issued by carrier which

details ashippment of –name

-description

History of legal status and us of material

The bill of lading also serve as a receipt of shipment when the good is delivered to the
predetermined destination

Bill of lading template-micro soft office

The bill of lading form template for cargo has shipping tracking and order information as
well as space for bar codes

Way bill

Away bill ,is a document issued by a carrier giving details and instructions relating to the
shipment of a good

Customer letter :in this case the customer is Ethiopia electric power corporation ,which
explain about the issue custom bond import
Letter of credit

Is a written commitment to pay by a buyer’s or importers bank(called the issuing bank) to

the seller’s or exporters bank(accepting bank .

A letter of credit guarantee payment of specified ‘s sum in a specified currency provided

the seller meets precise defined condition and submits the prescribed documents

A letter of credit also defines as a document issues by a financial institution or similarly

accredited professional party.

Import if stock items

The cost of this import stock is include the following:

-Purchase price

-custom duty

-scanning document

Insurance

Fright up to store (ware house)

Cut off of inventory

Cut of test means the transaction should be included in the period when the transaction
carried

IMPORTED WITHHOLDING TAX (3%)

*3% OF CIF VALUE ON IMPORTED COMMERCIAL GOODS

*THE RATE IS 3%

THE BASE IS CIF

C=COST OF PURCHASE

I=INSURANCE COST

F=FREIGHT CHARGE
*WHICH IS THE IMPORTER (TAX PAYER) OF THE GOODS IS REQUIRED TO PAY A WITHHOLDING BUSINESS
INCOME TAX AT 3% OF THE CIF VALUE OF IMPORTED COMMERCIAL GOODS WHICH IS CREDITED AGAINST
INCOME TAX LIABILITY FOR THE YEAR .

THE LAW OF ETHIOPIA REQUIRE THAT GOODS IMPORTED IN TO ETHIOPIA SHALL HAVE INSURANCE
COVERAGE ,HOW EVER IF THE FREIGHT CHARGE (TRANSPORTATION COST)FOR IMPORT OF GOODS IS NOT
COVERED BY IMPORTER (BUSINESS FOUND IN ETHIOPIA ),THE FREIGHT CHARGE REASONABLY ESTIMATED BY
THE TAX AUTHORITY ONLY FOR THE PURPOSE OF CHARGE OF WITHHOLDING INCOME TAX PURPOSE

OUT SOURCING OF IMPORTING ACTIVITY

WHEN I make audit of one company which manufacturing of soap which
import raw material from foreign company and out soureced to
In order to collect the following documents
The agreement between the two company show the following schedule

Sr/no Type of orginal Copy Total Checking

document
1 Bill of
lading
2 Commercial
invoice
3 Pakage list
4 Cereteficate
of orgin
5 Insurance
debit note
6 Bank permit
advice
7 Bank permit
8 Freight
invoice
9 Freight
repice
10 Vat
registration
11 TIN&license
12 Health
certeficate
13 Certificate
analysis
14 Container
relif
 15 Duty free
letter
16 Other
deposit
17 With
container
Import trade
Import procedure: the following steps are the brief serious of activities in
import procedure in Ethiopians are :
 The person must be registered under the ministry of trade or
finance bureau
 He/she has to apply to the national bank of Ethiopia for
foreign exchange and import permit and application must be
supported by CIF quotation
 the importer establish letter of credit in favor of the foreign
supplier through any commercial bank
 the supplier will present the bill of lading along with other
document to his/her bank for obtaining payment
 the exporter bank will forward all the document to the
importer through his /her bankers in his or her country. the
importer’s bank provide letter of credit to the importer. Once
the importer has received the related documents ,he/she or
his/her agent will take delivery of goods from the carrier
 the transit agent(clearing agent)will take delivery of goods at
the port of destination on behalf of importer
 the importer will pay the import duty and other taxes for
clearing the custom administration
 the agent will then forward the goods to the importer.