BUSINESS PROCESS ANALYSIS - Ethiopia - Formatted

BUSINESS PROCESS
ANALYSIS
EXPORT OF PULSES AND SPICES

FROM ETHIOPIA
BUSINESS PROCESS ANALYSIS: EXPORT OF PULSES AND SPICES FROM ETHIOPIA
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Acknowledgements
Md. Tariqur Rahman, international consultant, is the author of this report. He was assisted by Tilahun
Esmael Kassahun, an Ethiopia-based national consultant, for this study. The authors are solely
responsible for the information and views presented in the report.
The consultants’ team acknowledges with gratitude the contributions of a number of people towards the
process of this business process analysis (BPA), without whose participation the project would not have
succeeded.
The authors would like to express their deep gratitude and appreciation to Andrew Huelin, Associate
Programme Adviser, Trade Facilitation and Policy for Business (TFPB), International Trade Centre (ITC),
Geneva, for his overall oversight, feedback and in-depth comments and guidance from the inception to the
finishing of the report, including his participation in field interviews in Ethiopia and Djibouti.
The authors also benefited from guidance of with Rajesh Aggarwal, Chief, TFPB, ITC Geneva and
Mohammad Saeed, Senior Trade Facilitation Adviser, TFPB, ITC.
Vanessa Finaughty edited the report and Isabelle Jouve, Associate Programme Adviser, TFPB, ITC,
prepared the copy for printing.
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Contents
Acknowledgements iii
Acronyms and Abbreviations vii
Introduction 1
Chapter 1 Trade context for BPA in Ethiopia 4

1. Overview of Ethiopia’s export performance 6
2. Methodology of the study 7
3. Review of literatures 8
Chapter 2 Analysis of export processes and procedures of selected items from

Ethiopia 9
1. Export process: Pulses and spices exports from Ethiopia 9
Chapter 3 Concluding observations and policy options 15
Annex Buy: Finalize purchase order 17
References 50
Table 1. Major economic indicators of SITA countries in 2014 4

Table 2. Over time change of export process in Ethiopia: WEF 5
Table 3. SITA countries: Logistics Performance Index 2014 5
Table 4. Comparative statistics of trading across borders indicators for SITA countries 5
Table 5. Trend of Ethiopian pulse exports (FOB value in ‘000 US$) 6
Table 6. Trend of Ethiopian spice exports (FOB value in ‘000 US$) 7
Table 7. Time procedure for exports from Ethiopia 12
Table 8. Core business process and stakeholders involved in the export process from Ethiopia 13
Figure 1. Use case diagram of core export processes from Ethiopia 12
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Acronyms and Abbreviations
Unless otherwise specified, all references to dollars ($) are to United States dollars, and all references to
tons are to metric tons.
The following abbreviations are used:
GDP Gross domestic product

EEPA Ethiopian Export Promotion Agency
ERCA Ethiopian Revenues and Customs Authority
ESA Ethiopian Standard Agency
WTO World Trade Organization
TFA Trade Facilitation Agreement
TF Trade facilitation
WDI World Development Indicators
ITC International Trade Centre
EPOSPEA Ethiopian Pulses, Oilseeds and Spices Processors-Exporters Association
TTM Trade Transaction Modeling
UML Unified Modelling Language
C&F Clearing and forwarding
L/C Letter of credit
MINAGRI Ministry of Agriculture and Animal Resources
CFA Clearing and forwarding agent
PO Purchase order
NBE National Bank of Ethiopia
COQ Certificate of quality
TIN Tax identification number
EIR Equipment interchange receipt
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Introduction
Ethiopia is a landlocked country situated in the Horn of Africa. With an area of 1.14 million square
kilometres, it is the African continent’s second biggest country. Ethiopia is bordered by Somalia and
Djibouti in the east, Sudan in the west, Kenya in the south and Eritrea in the north. In 2014, Ethiopia was
the second fastest-growing economy in the world, with a gross domestic product (GDP) growth rate of
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10.28% (WDI, 2016 ). Although the country is still one of the poorest countries in the world, with a per
capita GDP of only US$ 573 in 2014, over the period of 2003 to 2014, it has managed to achieve an
astonishing 11% GDP growth rate on average. The country is predominantly an agrarian where agriculture
contributes more than 70% in total employment and more than 40% in total GDP. The share of
international trade to its GDP is more than 40%, of which imports contribute more than two-thirds. This
high share of imports to exports creates pressure on the foreign exchange management for Ethiopia. In
this backdrop, it is crucial for the country to enhance its foreign earnings where increase of export can play
a vital role.
Ethiopia has a diversified climate that is suitable for production of a variety of crops. Historically, the
country is famous for its production of spices and pulses such as cumin, pepper, coriander, ginger,
turmeric and so on. Now, these items can be a major source of export earnings for the country. However,
the export and import procedures for items are quite long and cumbersome, which undermines the
country’s competitiveness in the global market. In the face of sharp reduction of tariff in international trade,
one of the major sources of increasing competiveness for the traded items of any country remains in the
ability to supply goods in the fastest possible time. This fact has shifted the focus of any country towards
improving the status of trade facilitation measures.
Countries that are pursuing trade-led economic growth and development, improving the preconditions of
trade across borders, such as problematic regulatory procedures and documentation, inefficient transport
and logistics facilities and services, are crucial. Countries can improve their competitiveness by reducing
the time and costs required for completing documentary and regulatory requirements involved in the
process of exporting or importing any goods. Sometimes, these costs can be a substantial part of the value
of the traded items, especially if the value of time required is taken into account. The significance of trade
facilitation by simplifying the regulatory process and procedures of cross-border trade, improving the
conditions of transit procedures, and increased and efficient use of information and communication
facilities has gained momentum and due importance in recent times.
Completion of any cross-border trade requires fulfilling regulatory and documentary requirements involving
parties from both private and public sectors. To perform any such transaction completely, it requires
harmonization and cooperation among many actors, service providers and regulators from both home
country and partner country. Failure to meet these regulatory and documentary requirements or lack of
proper coordination among the actors involved entails significant delays to complete the whole process of
importing and exporting, which eventually increases the costs of the items being traded. Improving the
procedural and regulatory requirements through necessary reforms such as reducing the amount of
certification needed and decentralization or online availability of services can have a significant impact on
the predictability of the whole business process and profitability for the parties involved.
In general, although parties involved in cross-border trade are aware of the importance of rationalization of
procedural requirements for import and exports, only a few of them have in-depth understanding of the
whole process. This lack of complete understanding of the whole process makes it harder for policymakers
and other stakeholders involved to scrutinize and improve the loopholes. On top of that, the efficiency of
these steps varies based on the specific nature of the products being traded. In this background, carrying
out a detailed analysis of procedural requirements examining all commercial, transport, regulatory and
financial procedures along with time and costs involved at each step can help to identify and address the
areas and scope to improve the whole process. For this purpose, a product- or item-specific business
process analysis (BPA) can serve as a systematic approach.
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World Development Indicators (WDI) (2016). The World Bank. Available from http://data.worldbank.org/data-catalog/world-
development-indicators (accessed on 21 March 2016).
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Being a landlocked country, Ethiopia is already in a disadvantageous position in carrying out international
trade, as it has to use another country’s seaport, for example, Djibouti. To sustain the impressive growth
performance, Ethiopia needs to improve its competitiveness in international trade as well. One of the policy
options in this regard can be reforming its administrative and procedural requirements in the process of
service delivery. In this endeavour, this product-specific analysis of the export process for pulses and
spices is hoped to assist the policymakers and stakeholders to identify areas of improvement in the coming
days to stay ahead of the global export market for these particular items.
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Chapter 1 Trade context for BPA in Ethiopia
The Federal Democratic Republic of Ethiopia is the second largest country in Africa, with a population of
slightly more than 100 million. The country is one of the poorest countries in the Horn of Africa and is trying
to change that by achieving accelerated economic growth by leveraging industrialization and international
trade both at global and regional level from its predominant agrarian economy. Recently, the country is
maintaining a high economic growth and is among the top 10 performers in terms of growth of gross
domestic product (GDP). In terms of major economic characteristics, Ethiopia resembles its neighbouring
countries, but it is still falling behind the Sub-Saharan standards on many frontiers, such as per capita
GDP, and trade to GDP ratio (table 1).
Table 1. Major economic indicators of SITA countries in 2014

Indicator name Ethiopia Rwanda Kenya Tanzania Low income Sub-Saharan
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Africa
GDP per capita (constant 2005 US$) 445.62 314.52 658.71 600.66 415.67 1 045.86
GDP growth (annual %) 6.96 9.94 5.33 6.97 6.22 4.24
Agriculture; value-added (% of GDP) 33.12 42.33 30.27 31.47 32.30 13.96
Industry; value-added (% of GDP) 14.36 15.43 19.36 24.99 21.54 27.61
Manufacturing; value-added (% of GDP) 4.84 4.17 11.11 6.09 8.71 (2013) 10.95
Services, etc.; value-added (% of GDP) 52.51 42.25 50.37 43.54 46.16 58.40
Trade (% of GDP) 45.48 41.18 50.28 49.37 65.18 61.80
Merchandise trade (% of GDP) 40.47 43.09 40.07 34.64 51.79 48.10
Source: WDI (World Development Indicators), The World Bank (accessed on 25 November 2015).
Following trade liberalization and removal of other restrictions such as quotas, international trade of all
types of goods and services have increased rapidly. Without ensuring effective and efficient movements of
goods, countries cannot reap the highest benefits from the trade liberalization. This cross-border
movement of goods requires meeting a vast number of national and international rules and regulations
applicable both in the exporting and importing countries. Fulfilling these rules and regulations very often
involves burdensome documentation involving a number of stakeholders from both private and public
sectors, which delays the whole process. For exporters and importers, failure to meet these requirements
properly delays the process of sending and receiving goods between them. This increases the costs by
adding more time to the whole process. This extra cost of transferring goods from one country to another
country reduces the profitability of the parties involved (IFC, 2006).
Along with its natural disadvantages of being landlocked, doing business in Ethiopia is costly due to high
costs of transaction, transportation and administration (Teklu & Negus, 2011). Kassahun (2015) also
pointed to the high cost of doing business across borders as one of the major challenges for Ethiopia in
doing cross-border trade. With regard to trade facilitation indicators, Ethiopia performs significantly better
than the average of Sub-Saharan African and low-income countries in areas such as streamlining
procedures, harmonization and simplification of documents, and automation. Ethiopia has already started
using ASYCUDA++ at multiple border crossings and the Ethiopian Revenue Authority (RRA) has a call
centre to provide adequate and timely responses to traders. As a national enquiry point and notification
authority, the Ethiopian Standard Agency (ESA) provides importers and exporters with the latest
information on standards, technical regulations and conformity assessment procedures available in the
Ethiopian market and other external markets targeted by Ethiopian exporters. However, Ethiopia is still not
a signatory of the World Trade Organization (WTO) Trade Facilitation Agreement (TFA) at Bali in
December 2013, which is hoped to reduce border transaction costs for Ethiopian exporters and importers,
which could be taken as a commitment from Ethiopia to improve the status of trade facilitation (TF).
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All income levels.
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Ethiopia is trying to boost its regional and international economic integration through a private sector-led
economy. Being landlocked is a major disadvantage for Ethiopia to be competitive in the international
trade, as exporters have to go through other countries (mostly Djibouti) to ship their goods, which adds a
substantial cost, with high transport costs and procedural delays. In this endeavour, the government has
taken a number of initiatives to simplify the international trade process and procedures, such as
establishing a single-window system for customs clearance, which has already generated noticeable
benefits for traders. However, from table 2, we can’t see much improvement during the 10 years in the
case of the export process.
Table 2. Over time change of export process in Ethiopia: WEF

(1=extremely inefficient to 7=extremely efficient)
Indicator name 2005 2010 2013 2014
Documents to export (number) 8 8 8 8
Time to export (days) 47 45 44 44
Cost to export (US$ per container) 2 037 2 180 2 180 2 380
Burden of customs procedure N/A 3.63 3.1 2.9
Source: World Development Indicators (WDI), The World Bank (accessed on 25 November 2015).
Note: Burden of customs procedure (1=extremely inefficient to 7=extremely efficient).
To promote Ethiopian exports, the Ethiopian Export Promotion Agency (EEPA) has been established. The
EEPA provides different services including improving export procedures, export training, conducting
market research for export items, matchmaking of Ethiopian exporters with foreign buyers, providing trade-
related information, and participating in regional and international trade fairs. The EEPA also scrutinizes
rules, laws and regulations to make export-related requirements and instructions conducive for exports. As
a country, Ethiopia is not such a high performer, even in terms of regional comparison. Ethiopia only
outperforms Tanzania when it comes to logistics performance or efficient handling of cross-border trade
(table 3 and table 4). The country performs very poorly compared to high-income countries. Even in
comparison to other nearby countries such as Rwanda or Kenya, Ethiopia takes quite long to handle its
export process. This long time requirement increases the cost of exporting, which is eroding the
competitiveness of its export sector to some extent.
Table 3. SITA countries: Logistics Performance Index 2014

Tracking
Economy Overall International Logistics
Customs Infrastructure and Timeliness
name LPI rank shipments competence
tracing
Ethiopia 104 102 134 121 96 97 78
Rwanda 80 89 113 88 92 68 63
Kenya 74 151 102 50 90 60 45
Tanzania 138 135 114 137 145 150 107
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Uganda 66 44 89 60 76 114 60
Source: World Bank, Logistics Performance Index (accessed on 21 September 2015).
Table 4. Comparative statistics of trading across borders indicators for SITA countries
Cost to
Time to export:
Time to export: export: Cost to export:
Economy Border
Rank DTF Documentary Border Documentary
name compliance
compliance (hours) compliance compliance (US$)
(hours)
(US$)
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For Uganda, the statistics are for 2010.
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Ethiopia 166 39.8 57 126 144 175

Kenya 131 57.83 21 19 143 191
Rwanda 156 45.17 97 42 183 110
Tanzania 180 20.21 96 96 1 160 275
Uganda 128 58.6 77 64 287 102
Singapor
41 89.35 12 4 335 37
e
OECD
high – 93.33 15.2 4.5 159.9 35.6
income
Source: Doing Business, The World Bank (accessed on 8 October 2015).
With the significant reduction in tariff and quotas for most of the items being traded across the border, the
issue of delivering goods and services in time and at low costs is a key factor in determining the
competiveness of a country in global trade. In this regard, improved trade facilitation is likely to result in
better competitiveness for domestic industries, by reducing unnecessary bureaucratic requirements and
harmonizing relevant processes. From this perspective, a thorough analysis and understanding of the
product-specific business process involving all commercial, transport, regulatory and financial procedures
is believed to have a profound impact on the overall international trade procedures through elimination of
administrative and procedural constraints (Hossain & Rahman, 2011). As the process and procedures of
cross-border trade vary greatly depending on the nature of the specific product in question, for a better
understanding and identifying key areas for change to improve these steps, an analysis of product-specific
business processes is very much needed.
1. Overview of Ethiopia’s export performance

The volume of merchandize exports from Ethiopia is not that big and only a handful items constitute the
majority shares. Within the 2010/11 to 2014/15 period, the country has registered a moderate export
growth, but spices’ growth is negative (table 5 and table 6).
Table 5. Trend of Ethiopian pulse exports (FOB value in ‘000 US$)

Sr. Type 2010/11 2012/13 2014/15 Growth
no.
Volume Value Volume Value Volume Value
1 Haricot bean 102 026 57 932 183 458 122 626 151 639 98 793 70.53
2 Horse bean 41 027 24 166 35 981 21 746 38 552 18 945 (21.60)
3 Chick peas 61 536 39 639 73 953 48 193 47 461 23 812 (39.93)
4 Lentils 3 683 3 243 – – – – N/A
5 Green mung 8 619 10 802 17 396 16 712 22 719 27 821 N/A
beans
6 Lupin 5 283 1 397 6 394 1 834 5 671 1 742 24.69
7 Peas 412 230 – – – – N/A
8 Vetch 1 909 905 5 924 3 049 6 243 2 535 N/A
9 Soya beans 1 380 656 34 411 19 183 27 475 13 296 N/A
10 Others – – 1 4 92 68 N/A
11 White pea beans – – – – 41 631 33 181 N/A
Grand total 225 875 138 970 357 518 233 347 341 483 220 193 58.45
Source: Ethiopian Pulses, Oilseeds and Spices Processors-Exporters Association (EPOSPEA)
Note: Figures in parentheses indicate negative growth.
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Table 6. Trend of Ethiopian spice exports (FOB value in ‘000 US$)

Sr. Type 2010/11 2012/13 2014/15 Growth
no.
Volume Fob Volume Fob Volume Fob
value value value
1 Ginger 7 345 22 323 11 638 13 327 3,606 7 959 (64.34)
2 Cumin seed 1 441 4 951 1 782 2 679 2 662 5 562 12.34
3 Turmeric 1 449 2 499 3 712 2 307 4 679 3 532 41.35
4 Pepper 1 423 2 138 4 036 6 804 2 504 5 971 N/A
5 Cardamoms 208 1 015 60 319 128 584 (42.48)
6 Other spices, nes 179 286 689 1 116 403 637 122.75
7 Coriander 257 196 1 463 956 3 971 4 291 2 089.52
8 Long pepper 10 15 – – 54 134 796.6
9 Basil 7 11 – – – – (100)
10 Spice mixtures 4 10 4 11 0.33 3.2 (68.5)
11 Fenu Greek 13 8 – – 63 55 587.13
12 Timez 4 5 – – – – (100)
13 Saffron 2 1 41 25 7 5 404
Grand total 12 342 33 458 23 425 27 544 18 077.3 28 733.2 (14.12)
Source: Ethiopian Pulses, Oilseeds and Spices Processors-Exporters Association (EPOSPEA).
Note: Figures in parentheses indicate negative growth.
2. Methodology of the study

This study has focussed on the export process and procedures for chick peas, pigeon peas, green gram,
yellow gram, kidney beans (pulses sector) as well as turmeric, African bird’s eye chilli and ginger (spices
sector) for Ethiopia. Under this project, we have studied the steps, actors, documents, time and cost
involved in the overall transaction procedure and identified areas of improvements to facilitate border trade
of these items.
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The Business Process Analysis Guide to Simplify Trade Procedures has been used as a guide for this
study. This guide is based on Trade Transaction Modeling (TTM), which is a flowchart that identifies the
people or organizations involved in each step of the export or import process, and uses Unified Modelling
Language (UML) activity diagrams to represent the steps in a trade transaction, over time, related to the
agent or organization responsible for the action (UNCTAD, 2007). Using activity diagrams, TTM provides a
better way of communicating the logical paths of a trade transaction to all concerned parties. Most of the
studies on the trade transaction processes are industry specific supply chain based. They map the supply
process primarily in the internal market and those that are focussed on international trade have identified
the process under a border heading of the activities involved or at a disaggregated level of a single broad
step of the overall trade process. The standard procedure of process analysis is associated with identifying
the steps involved in completing the cycle, starting from getting an order for export or placing an order for
import and the time required to complete each stage, with associated costs both in accounting and
economic terms.
Necessary information for the analyses was collected through face-to-face interviews and telephonic
communication with the relevant stakeholders, including persons from government agencies,
entrepreneurs or exporters, clearing and forwarding (C&F) agents, and association members. We also
compared the collected information with relevant secondary sources, literature and reports.
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UNNExT, UNESCAP and UNECE (2009).
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3. Review of literatures
A typical export process involves 27 parties, more than 40 documents and more than 300 copies of
documents, and the average customs transaction involves 20 to 30 parties, 40 documents, 200 data
elements (30 of which are repeated at least 30 times), and the rekeying of 60%–70% of all data at least
once (UNECE, 2007). This long and cumbersome documentation not only slows the overall business
process, but also adds up a significant amount of costs, which makes the business less competitive.
Although the exact amount of benefit out of improved and efficient trade process and procedures as a
result of better trade facilitation measures (e.g. reduction of number of documentation) varies from country
to country and product to product, the direction of change is always positive (Nathan, 2009). With the help
of a fragmented international trade transaction process, Alavi (2005) estimated the positive benefits of
shifting paper-based trade documentation to paperless trade. Using a gravity model simulation exercise for
75 countries on their manufacturing trade, Wilson et al. (2005) found substantive benefits as well as scope
of improvement for trade facilitation, where trade facilitation measures might include both “border” and
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“inside the border” elements.
In their study on the apparel industry, Bangladesh, Gereffic and Memedovic, (2003) pointed out the
importance of improved trade facilitation measures that require simplification of the trade process and
procedures in order to reduce the lead time to remain competitive in this byer-driven market, along with
cheap labour cost.
From the brief survey of relevant literatures in the field, we can easily see the importance of improving the
status of trade process, especially for a country like Ethiopia, which is trying its best to improve its
economic conditions. One major step in this regard can be to improve its competitiveness in the global
market. As part of this aspiration, streamlining the process and procedures of international trade will have a
significant benefit.
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“Border” elements include port efficiency and customs administration, and “inside the border” elements, such as domestic regulatory
environment and the infrastructure to enable e-business usage.
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Chapter 2 Analysis of export processes and procedures of

selected items from Ethiopia
1. Export process: Pulses and spices exports from Ethiopia

Step 1: Buy: Finalize purchase order
Based on a buyer’s interest to purchase an item, the exporter prepares a price quotation and terms of
trade, which includes the delivery date, quality of item, packaging instructions and payment options. The
quotation is then sent to the importer for approval. If the buyer is satisfied with the terms and conditions on
the quotation, the importer confirms his or her intention to purchase the item and the parties sign a
commercial invoice; otherwise, the buyer gets back to the exporter to negotiate the terms of trade. After
necessary modifications, the document is returned to the exporter and, once both parties agree on the
terms, they finalize the contract. The process of communication between the importer and the exporter is
mainly through exchange of e-mails. If required, however, supporting documents are sent through courier
services and voice calls or even Skype.
Step 2.1: Obtain letter of credit (L/C)
The exporter sends a request to open the letter of credit to the importer. Then the importer instructs his or
her bank to prepare a letter of credit, and the importer’s bank prepares a draft letter of credit and sends it
to the exporter’s bank. The exporter’s bank receives the draft letter of credit and forwards it to the exporter.
The exporter receives the letter of credit and checks the terms and conditions. If the exporter is satisfied,
the importer makes the agreed payment and notifies the exporter about the payment made.
Step 2.2: Ship: Obtain bank export permit
The exporter already has an export business license. The exporter prepares and submits the necessary
documents – i.e. business registration, commercial invoice, packing list and export business license. The
exporter’s bank receives the application and verifies whether the item is an exportable item and whether
prices are realistic. If the officer in charge is satisfied, the exporter’s bank issues the bank export permit.
The National Bank of Ethiopia receives a copy of the bank export permit as well as supporting documents.
Step 2.3: Ship: Clean products and obtain cleaning certificate
The exporter contacts the authorized cleaning company for a quotation if the exporter doesn’t have a
cleaning facility. For this step, the exporter needs to ensure that the items are ready stocked, either at the
exporter’s premises or at the warehouse of the cleaning company, and graded based on the buyer’s
requirement. The cleaning company starts cleaning the items based on the required quality, agreed on
between the exporter and the buyer. Once the required level of refinement is achieved, the company
issues a certificate. However, some items, such as ginger and turmeric, need to be cleaned manually, so
the time required at this step varies according to the nature of the items.
Step 2.4: Ship: Obtain fumigation certificate
In this step, the exporter contracts some fumigation companies if he or she does not have a preferred one
already and asks for the quotation. Normally, every exporter has its own preferred company. Before
booking the visit by the fumigation company, the exporter cleans goods and arranges at warehouse or
container. Then the fumigation company comes and does the fumigation depending on the nature of the
products and requirements set by the importers. It takes around four hours on average to do the
fumigation. However, after the fumigation, it normally takes about 72 hours to complete the fumigation
process. Then they conduct a pre-inspection and, if the sample test meets all requirements, the pre-
inspection certificate is issued.
Step 2.5: Ship: Obtain quality certificates
Once the products are graded and cleaned according to the buyer’s requirements, the exporter applies for
a quality certificate to the standardization authority, along with copies of the commercial invoice, packing
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list and any other required information and the proof of payment. The exporter arranges the authorized
inspection agency to inspect the product and collect a sample. During the visit, the inspector(s) or
representative(s) from the testing authority collects samples and performs the inspection and performs the
required testing in their laboratory. If any problem or mismatch is found between the sample and
commercial invoice, the exporter is asked to rectify it. Once the inspector is satisfied with the product
quality, he or she issues the lab test report to the exporter.
Step 2.6: Ship: Obtain phytosanitary certificate
For this certificate, the exporter first needs to apply to the Ministry of Agriculture, by filling in a form and
providing copies of the commercial invoice, cleaning certificate, quality certificate and packing list. Before
the application for the phytosanitary certificate, the exporter needs to make sure that the items are already
graded and cleaned according to the buyer’s requirements and have the quality certificate. The exporter
arranges a time to visit the warehouse for the Ministry of Agriculture and Animal Resources (MINAGRI)
inspector. The inspector(s) from the testing authority collects samples and performs the inspection. If any
problem or mismatch is found between the samples and commercial invoice, the exporter is asked to
rectify it. Once the inspector is satisfied with the product quality, he or she issues the lab test report to the
exporter. The exporter receives a phytosanitary certificate at the end. As a requirement, people from the
fumigation company need to be present at the site during the MINAGRI inspector’s visit.
Step 2.7: Arrange local transport
The exporter contacts inland haulage or, in some cases, uses his or her own company vehicle to transfer
the goods from the warehouse. Once the two parties agree on the terms and conditions, they fix a time to
pick up the goods from the exporter’s premises. Inland haulage collects the goods from the exporter’s
premises and brings to the place of customs inspection.
Step 2.8: Ship: Load goods/stuff cargo
Once the exporter has the quality and phytosanitary certificates, he or she requests the transitor (licensed
customs broker) to send a vehicle to load the goods. Parallel to sending the cargo to the exporter’s
premise or warehouse, the transitor makes the declaration and submits all the documents to customs. If
the declaration is accepted, the transitor immediately submits the request to customs to assign an
inspector. After getting the request from the exporter, customs assigns an inspector to inspect the goods.
The transitor instructs the transporter to take the container to the factory site. The transporter takes the
container to the customs facility, where the inspector checks the samples and oversees the stuffing of
cargo and, finally, puts the seal on the container.
Step 2.9: Declare customs online
This step is completed by the exporter’s agent; i.e. the transitor company or CFA. The CFA submits the
required documents (the commercial invoice, packing list, certificate of origin, certificate of quality and
insurance policy) on Ethiopian Revenues and Customs Authority’s website.
Step 2.10: Obtain customs clearance
Upon finding the documentation provided by the CFA satisfactory, customs authorities issue customs
clearance; i.e. exit note. The exporter’s agent then acknowledges receipt of the customs clearance. The
CFA then acknowledges the receipt of the clearance.
Step 2.11: Move goods to Djibouti
As per the transport contract, the inland transport company collects the goods from the pre-agreed place
and transports them to the port.
Once the transporter leaves the ERCA facilities at Kaliti, the first stop is the ERCA facility in Mile. In Mile,
the ERCA officer receives the documents and checks them for accuracy and completeness. If everything is
in order, the ERCA officer in Mile stamps them. Obtaining the stamps ensures that the transporter takes a
certain route to the border. At Galafi border post, the transporter provides the documents to the ERCA
officer. The ERCA border officer scrutinizes the documents and updates the ASYCUDA++ system to state
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that the goods have left the country and closes the Customs declaration. Based on this, the ERCA officer
issues the validation letter, which is sent via the ASYCUDA++ system to the transitor. The transporter
continues the journey by crossing the border into Djibouti. The driver can cross the border with an
Ethiopian ID card and the truck must have third party insurance for Djibouti. This insurance for the truck
can be obtained in Addis Ababa.
Step 2.12: Enter the port and stow cargo on vessel
This step involves a number of parallel activities by the shipping line and port authority. On arrival, the CFA
requests entry of the vehicle into the port area. The port authority or private depot then records details of
the truck and container and issues an entry pass, allowing the truck and container to enter the controlled
area. The date and time of entry of the truck and container is officially recorded. The goods are then taken
to the designated area where cargo inspection is to take place. The shipping agent coordinates handling of
the container at the terminal and moves it to the berth area with permission from the port authority. It is the
responsibility of the shipping agent to prepare a container loading list and a container list message to be
used for berthing the container and stowing it on the designated vessel in a coordinated manner. While the
container is in the process of being stowed onto the vessel, the shipping agent prepares the final bill of
lading, which is supplied to the CFA. Parallel to this process, the port authority prepares a list of outward-
going containers to be stowed on the vessel and ensures that the shipping line verifies the list. Once all
these activities are completed and the cargo release order is received from customs, the ship sets sail as
per schedule.
Step 2.13: Ship: Obtain certificate of origin (Chamber of Commerce)
The exporter pays and takes a blank certificate of origin from the Ethiopian Chamber of Commerce and
Sectoral Association. The exporter completes the blank certificate of origin, signs it and submits it, together
with relevant documents. An officer from the Chamber of Commerce checks the supporting documents and
assesses if the exporter is eligible for the certificate of origin. If the application file meets the criteria, a note
of the shipment date is made. Then rules of origin officer at the Chamber of Commerce issues and signs
the certificate of origin. The exporter takes the signed certificate of origin to the documentation section to
get it stamped. The exporter receives the certificate of origin.
Step 2.14: Arrange documents
The exporter collates all the documents that will be needed by the importer to receive the consignment in
the importing country. Then the exporter sends an e-mail notifying the importer of the shipment, along with
soft copies of the documents. Within two to seven days, the exporter sends original copies of those
documents by courier.
Step 3: Pay
The payment for the exporter depends on the terms and conditions set in the commercial invoice. In
general, exporters receive a part of their export value upon the first presentation of the supporting
documents. Once the exporter notifies the importer about the shipment and sends the copies of the
required documents, the importer usually transfers the agreed percentage of money to the exporter’s bank
account. However, for the full payment, exporters might have to wait for some time (until the coffee is
released by the importer).
11
Figure 1. Use case diagram of core export processes from Ethiopia
Table 7. Time procedure for exports from Ethiopia

Step Core business process Private/public Average cost Time required (days)
US$ (ton)
Min. Max. Avg.
1 Finalize purchase order Private 0 2 4 3
2.1 Obtain L/C advice Private/public 0 0.06 0.188 0.16
2.2 Obtain bank permit Private 10 to 25 1 3 2
2.3 Clean products and obtain cleaning
certificate Private 10 to 15 1 4 2.5
2.4 Obtain fumigation certificate
Private 0.25 1 2 1.5
2.5 Obtain quality certificates
Private/public 1 0.02 0.5 0.27
2.6 Obtain phytosanitary certificate
Private 5 to 10 0.25 0.5 0.5
2.7 Arrange local transportation
Private/public 5.5 to 6.5 0.5 0.75 0.875
2.8 Load goods/stuff cargo Private/public 3 0.125 0.5 0.375
2.9 Declare customs online
Private/public 1.75 0.125 2 1.125
2.10 Obtain customs clearance Included in the
Private declaration cost 2 4 3
12
2.11 Move goods to Djibouti Private/public 50 to 60 2 3 2.5

2.12 Enter into the port and stow cargo on
the vessel Private/public 0.75 to 0.80 1 1.5 1.25
2.13 Obtain certificate of origin Private 0 0.01 0.02 0.015
2.14 Arrange documents Private/public 0 0.02 0.04 0.03
3 Pay Private 0 2 5 3.5
Table 8. Core business process and stakeholders involved in the export process from
Ethiopia
Ethiopian Chamber of Commerce and

Standardization authority (conformity
assessment enterprise/laboratory)
Ministry of Agriculture (MINAGRI)
Djibouti customs authority

Customs authority (ERCA)
Fumigation company
Sectoral Association
Local transportation
Insurance company
Logistics company
Shipping company
Cleaning company
Ministry of Trade
Exporter’s bank
Importer’s bank
ERCA Djibouti
Port authority
Exporters
Importers
1.1 Finalize Χ Χ
purchase
order
2.1 Obtain L/C Χ Χ Χ Χ
advice
2.2 Obtain Χ Χ
bank
permit
2.3 Clean Χ Χ
products
and obtain
cleaning
certificate
2.4 Obtain Χ Χ Χ Χ
fumigation
certificate
2.5 Obtain Χ Χ Χ
quality
certificates
2.6 Obtain Χ Χ
phytosanit
ary
certificate
2.7 Arrange Χ Χ
local
transportat
ion
2.8 Load Χ Χ
goods/stuf
f cargo
2.9 Declare Χ Χ Χ
customs
online
13
2.10 Obtain Χ Χ Χ
customs
clearance
2.11 Move Χ Χ Χ Χ
goods to
Djibouti
2.12 Enter the Χ Χ Χ
port and
stow cargo
on the
vessel of
departure
2.13 Obtain Χ Χ
certificate
of origin
2.14 Arrange Χ Χ
document
s
3. Pay Χ Χ Χ Χ
14
Chapter 3 Concluding observations and policy options
From our field-based interview, we have found Ethiopia’s export business process to be quite lengthy and
cumbersome, as it requires many steps. However, a part of the long procedure, in terms of documents
required, parties involved and time required to perform those activities, can be attributed to the nature of
export items from Ethiopia. As the items are agricultural items, they need to go through a number of testing
and certifications, which are not required for industrial or manufactured items in general. That being said,
we have found some of the steps are unnecessarily cumbersome or fragmented service is provided, which
adds up time and cost in the process. Based on our interviews with the stakeholders and secondary
information, following are the recommendations that the policymakers can consider implementing to make
Ethiopia’s export sector more competitive.
• Issue of delinquency list: Some exporters have mentioned this as a big challenge in the export
business. As part of foreign exchange control, the Ethiopian Government is very strict on monitoring
the export amount declared during the stage of obtaining the bank permit and the actual amount of
money entering into the exporter’s bank account. If any mismatch is found, even the slightest, the
exporter is put on a “delinquency list” and is not given an export permit for the next time. For
exporters, this is a very big fear. The foreign exchange control mechanism is full of cumbersome
procedures. For instance, the whole process of bank permit issuance is cumbersome for exporters.
Although the process of obtaining a bank export permit takes only one hour, the whole process,
including preparation of necessary documents and waiting times, etc., amounts to at least half a day
to a full day. The national bank can collect information on price, quantity and quality from customs
through an online gateway, which will minimize the time requirement and increase transparency.
Ethiopia’s foreign exchange policy is focussed on capital flight control, by focussing on balancing the
inflow of foreign currency in Ethiopia to make it equal to the quantity and quality of goods exported.
This policy can be changed towards promotion of trade and investments from its current focus. This
means that, if the national bank integrates its network to customs’ network, it could get everything it
wants from the customs declaration. To monitor foreign currency inflows, the commercial banks
could transmit the incoming payment information from foreign sources to the NBE. This notification
can be done through an online platform for easy and quick process. This notification, together with
the payment information, will be sufficient for NBE to balance the accounts. Exporters also have an
incentive to register their incoming payments from exports in order to avoid penalties from the NBE
in case they do not balance their NBE account in time.
• Inefficiency at customs: This problem arises because of the frequent change of officers at customs.
The reason behind this is to prevent the officials being corrupted. Due to the fact that the Ethiopian
Revenues and Customs Authority keeps changing the inspectors at customs very often, officers are
not able to be efficient. This delays the checking procedures very often. Also, there is a lack of
infrastructure starting from basic infrastructure such as working space and waiting areas for the
exporters or their representatives to checking facilities such as scanning of items loaded into trucks
or containers. The process of keeping the records is still manual, but it can be digitalized, which
would give easy access to information and quick sharing with other agencies involved in the
process, such as NBE. Also, customs officials’ capacity needs to be improved by providing
necessary training, so that they can be equipped with the best international practices. In Ethiopia, all
exports are subject to physical inspection. The physical inspection takes place either at the customs
facility or at the exporters’ premises, but this is not the same procedure that is followed for imports.
In the case of imports, Ethiopia has already introduced the concept of authorized economic
operators (AEO), a system that allows the eligible importers not to subject their goods to inspection
all the time. This privilege is not offered to exporters. The benefits are restricted to imports, such as
exemptions from physical inspection if the cargo is low risk, reduced price verifications in the import
declaration and copies accepted (as long as originals are provided within 30 days). However, in
order to facilitate export trade, a risk management system could also be applied for exports. This
would allow customs to prioritize high-risk and high-damage cargo for inspections while only doing
random inspections of other cargo from time to time. There is no need for cargo to go to customs’
warehouse and wait in a long line all the time. There are plenty of mechanisms for customs to
accredit ethical exporters with many years of experience the status of authorized exporters so that
they can be audited later. The customs authority has already agreed to implement risk management
15
in exports, but no timeline has been set. In this case, development partners such as ITC and
UNCTAD can help to build human capacity to implement these initiatives.
• Phytosanitary certificate: Although this is not a big problem, it is an issue when it comes exporting to
Russia. Russian importers ask for not only the phytosanitary certificate, but also the result of the
analysis for the certificate. However, the Ministry of Agriculture does not issue the certificate of
analysis (i.e. detailed results), as it’s beyond their mandate. This creates a problem for exporters
who wish to export to Russia. To address the issue, the Ethiopian Ministry of Agriculture can sit with
the Russian counterpart and mitigate it through bilateral trade negotiations.
• Supply of container: Ethiopia imports more than what it exports. Hence, the inflow of containers
inside the country is more than it needs to support its export. Normally, finding cargo for export
purposes is not a problem for the exporters. However, sometimes, to support a big project, the
government takes control of most of the empty containers, which creates a short supply for export
businesses.
• Container load: Although there is no restriction on the load limit for cargo, there is a maximum load
amount from the road authority to maintain road condition. Due to the load limit on the road,
sometimes, even if the load exceeds the limit only slightly, the exporter needs to use an extra
vehicle to transport the goods, which adds to the cost substantially. This is not a regulation
particularly targeted to trade, but it affects trade from time to time. A slight increase of the axle load
limits will reduce the vehicle operating costs for traders. Also, with the introduction of the new
railway, this problem might be minimized.
• Multimodal transportation: Ethiopian Shipping & Logistics Service Enterprise (ESLSE) is the only
multimodal transport operator (MTO) that is owned by the state. The lack of a competitive
environment is likely to have a negative impact on cost reduction and improvement of efficiency in
the transportation system. In this regard, stakeholders from all spheres should work together to
increase the efficiency by encouraging further completion from private sectors.
• One-stop service centre: A one-stop service centre or single enquiry point for export and import
processes and procedures can be helpful to newcomers in these fields. In this regard, a website can
be operated for wide and easy accessibility. The product- or sector-specific BPA can be used as an
input to develop the handbook and the website for this purpose. The Ethiopian Revenues and
Customs Authority or the Chamber can manage the project and development partners like ITC can
support the initial phase. An online presence of some services that exporters need, but need not go
in person all the time to obtain, can be given priority. For instance, a chamber body, sectorial
association or export development agency can issue the certificate of origin online if that is
supported by the Ethiopian Government. However, to reap the benefit of this online system, the
country needs to ensure quality and reliable Internet facilities, which is lacking at present. Due to
slow and unreliable Internet services, people sometimes have to wait a long time, even when
accessing ASYCUDA++.
• Port efficiency: As Ethiopia does not have any direct access to a sea port, it relies heavily on the
services of the Port of Djibouti for its maritime trade. However, there are a few problems in using the
Port of Djibouti, including abrupt changes of policies and fees, limited hour of operations, which is
mainly due to the unfavourable weather when working during the middle of the day. Ethiopia, in
collaboration with the countries through which most of its international trade is handled (i.e. Djibouti),
can carry an in-depth study to identify the problem areas in port operations. Further cooperation with
its neighbouring countries, especially with Djibouti, can help Ethiopia to be more competitive in the
global market by increasing efficiency.
• New markets: Finding new markets should be emphasized to increase the amount of exports and
get better prices for Ethiopia’s goods, especially considering the rise of many emerging and
developing countries who might be prospective buyers for many of Ethiopia’s export items.
16
Annex Buy: Finalize purchase order
Topic Description
Process name Buy
Rules and regulations N/A
Exporter
Stakeholders
Importer
Exporter has an export permit from relevant authority.
Precondition
Exporter has a list of prospective buyers.
1.1 Exporter prepares quotation and sales terms and sends it to importer, usually via
e-mail.
1.2 Importer reviews the quotation and sales terms and determines if they are
Description acceptable. If not, importer may request a revised quoted price and sales terms.
1.3 Once both parties agree on the terms and conditions, importer confirms the
purchase and issues purchase order (PO) to exporter.
1.4 Exporter issues proforma invoice after receiving the PO.
Output criteria to complete Exporter and importer deal with a contract known as a commercial invoice.
the business process
Average time to complete 3 working days
Average costs involved N/A
17
2.1 Ship: Obtain letter of credit (L/C) advice
Topic Description
Name of process area Ship
Name of business process 2.1) Obtain letter of credit (L/C) advice
Related laws, rules and Bank internal directive

regulations
Process participants Exporter (or representative)
Exporter’s bank
Importer
Importer’s bank
Input and criteria to begin the Sales contract
business process
Activities and associated 2.1.1 The exporter sends a request to open the letter of credit to the importer.
documentary requirements 2.1.2 The importer receives the request to open the letter of credit.
2.1.3 The importer instructs the importer’s bank to prepare a letter of credit.
2.1.4 The importer’s bank prepares a draft letter of credit and sends it to the
exporter’s bank.
2.1.5 The exporter’s bank receives the draft letter of credit and forwards it to the
exporter.
2.1.6 The exporter receives the letter of credit and scrutinizes all terms.
- If the terms are not acceptable, the exporter requests the importer to make
amendments.
- If the terms are acceptable, then:
2.1.7 The importer makes the agreed payment and notifies the exporter about the
payment made.
2.1.8 The importer’s bank executes the payment.
- The exporter receives the letter of credit advice.
- The exporter’s bank’s trade services department receives the payment.
2.1.9 The trade services department notifies the customer relations officer in the
branch office about the payment made.
2.1.10 The customer relations officer in the branch office of the exporter’s bank
notifies the exporter.
2.1.11 The exporter receives the notification about the importer payment under the
letter of credit.
Output criteria to complete the Open letter of credit.
business process Obtained letter of credit advice.
Average time required to 1.5 hours
complete this business process
18
19
2.2 Ship: Obtain bank permit
Topic Description
Name of process area 2.Ship
Name of business process 2.2 Obtain bank permit
Related laws, rules and Commercial code

regulations Banking proclamation
The National Bank of Ethiopia Establishment (as amended) Proclamation No.
591/2008
Exporter’s bank
National Bank of Ethiopia (NBE)
Input and criteria to begin the Business registration
business process Commercial invoice
Packing list
Export business license
Activities and associated 2.2.1 Exporter prepares and submits the necessary documents.
documentary requirements 2.2.2 The exporter’s bank receives the application.
2.2.3 Exporter’s bank verifies whether the item is an exportable item and whether
prices are realistic.
- If the requirements are not met, the process is terminated.
- If the requirements are met, then:
2.2.4 The exporter’s bank issues the bank export permit.
2.2.5 The exporter receives the bank export permit, and the National Bank of
Ethiopia receives a copy of the bank export permit as well as supporting
documents.
2.2.6 The National Bank of Ethiopia registers the export in its database under the
exporter’s registration number.
Output criteria to complete the Bank export permit
business process
Average time required to 1–3 hours

complete this business process
Average costs involved US$ 10–US$ 25 per ton
20
21
2.3 Ship: Clean products and obtain cleaning certificate
Topic Description
Process name 2.3) Clean products and obtain cleaning certificate
Exporter
Stakeholders
Cleaning company
Goods are already stocked either at exporter’s premises or at the cleaning company’s
Precondition
warehouse.
2.3.1 The exporter contacts the authorized cleaning company for a quotation if the
exporter doesn’t have a cleaning facility.
The goods are already graded based on the buyer’s requirements.
2.3.3 The cleaning company starts cleaning the items based on the required level
Description
agreed on between the exporter and the buyer.
2.3.4 Once the required level of refinement is achieved, the company issues a
certificate.
2.3.5 Then the company packs the items and prepares the packing list.
Output criteria to complete the Receive cleaning certificate.
business process Prepares packing list.
2 working days (however, this time varies depending on the nature of goods, as some
Average time to complete
items, like ginger and turmeric, are cleaned manually)
22
2.4 Ship: Obtain fumigation certificate
Topic Description
Name of a process area Ship
Name of business process 2.4) Obtain fumigation certificate
Related laws, rules and regulations N/A
Fumigation company
Input and criteria to begin the Exporter cleans goods and organizes goods at warehouse or container.
business process
Activities and associated 2.4.1 Exporter cleans goods and organizes goods at warehouse or container.
documentary requirements 2.4.2 Fumigation company issues a quotation for the service.
2.4.3 Fumigation is conducted.
2.4.4 Exporter makes payment.
2.4.5 Exporter brings bill of lading.
2.4.6 Fumigation company receives payment.
2.4.7 If the sample test meets all requirements, the pre-inspection certificate is
issued.
2.4.8 Exporter receives fumigation certificate.
Output criteria to complete the Pre-inspection certificate is issued and received by the exporter.
business process
Average time required to complete 3 days

this business process
Average costs involved US$ 1–US$ 1.5 per ton
23
2.5 Ship: Obtain quality certificates
Topic Description
Process name 2.5) Obtain quality certificates
Exporter
Stakeholders
Standardization authority
Precondition Items are already graded and cleaned according to the buyer’s requirements.
2.5.1 The exporter requests a certificate of quality (COQ) via letter or e-mail,
along with copies of the commercial invoice, packing list and any other required
information, plus the proof of payment.
2.5.2 The exporter arranges the authorized inspection agency to inspect the
product and collect samples.
Description
2.5.3 The inspector(s) from the testing authority collect samples and performs the
inspection. If any problem or mismatch is found between the samples and
commercial invoice, the exporter is asked to rectify it.
2.5.4 Once the inspector is satisfied with the product quality, he or she issues the
lab test report to the exporter.
Output criteria to complete The exporter gets a lab test report.
Average time to complete 1.5 working days
Average costs involved US$ 1
24
2.6 Ship: Obtain phytosanitary certificate
Topic Description
Process name 2.6) Obtain phytosanitary certificate
Exporter
Stakeholders
Ministry of Agriculture
Items are already graded and cleaned according to the buyer’s requirements.
Precondition The fumigation company is present at the site during the visit from the Ministry of
Agriculture’s inspector.
2.6.1 The exporter applies for a phytosanitary certificate from the Ministry of
Agriculture (MINAGRI) by filling in a form and submitting it, along with copies of
the commercial Invoice, cleaning certificate, quality certificate and packing list.
2.6.2 The exporter arranges a time for the MINAGRI inspector to visit the
warehouse.
Description
2.6.3 The inspector(s) from the testing authority collects samples and performs
the inspection. If any problem or mismatch is found between the samples and
commercial invoice, the exporter is asked to rectify it.
2.6.4 Once the inspector is satisfied with the product quality, he or she issues the
certificate to the exporter.
Output criteria to complete The exporter receives a phytosanitary certificate.
Average time to complete 1 hour
Average costs involved US$ 5–US$ 10
25
2.7 Ship: Arrange local transportation
Topic Description
Process name 2.7 Arrange local transportation
Exporter
Stakeholders
Inland haulage
Precondition Exporter has an export contract.
2.7.1 Exporter contacts inland haulage or, in some cases, exporter uses its own
company vehicle to transport goods.
2.7.2 Once the two parties agree on the terms and conditions, they fix a time to
Description
pick up the goods from the exporter’s premises.
2.7.3 Inland haulage picks up the goods from the exporter’s premises and brings
to the place of customs inspection.
Output criteria to complete The items are on the cargo carrier.
Average time to complete Varies depending on the location of the exporter
US$ 5.5–US$ 6.5 per ton (this varies greatly depending upon the distance from
Average costs involved
the exporter’s location)
26
2.8 Ship: Load goods/stuff cargo
Topic Description
Name of business process 2.8) Load goods/stuff cargo
Related laws, rules and regulations Ethiopian Revenues and Customs Authority Establishment Proclamation

Transitor (licensed customs broker)
Ethiopian Revenues and Customs Authority
Transporter
Input and criteria to begin the Exporter has obtained a certificate of quality and phytosanitary certificate.
business process
Activities and associated 2.8.1 Once the transitor (licensed customs broker) makes the declaration and
documentary requirements submits all the documents to customs, it receives acceptance of the declaration.
2.8.2 The transitor immediately submits the request to customs to assign an
inspector.
2.8.3 Customs receives the request.
2.8.4 Customs assigns an inspector.
2.8.5 The transitor then instructs the exporter to prepare goods for inspection.
2.8.6 The transitor also instructs the transporter to take the container to the
factory.
2.8.7 Transporter receives instruction.
2.8.8 Parallel to the above, the exporter prepares the goods for inspection.
2.8.9 The exporter also sends his own vehicle to pick up the inspector from the
customs compound.
2.8.10 The exporter receives inspector.
2.8.11 Transporter takes container to factory site.
2.8.12 Exporter also receives container.
2.8.13 Exporter stuffs the container at factory site in the presence of transitor
and customs inspector.
2.8.14 Inspector checks samples and oversees the stuffing of cargo.
2.8.15 The inspector finally puts the seal on the container.
Output criteria to complete the Inspector puts seal on the container
business process
Average time required to complete 1 day
Average costs involved US$ 3
27
28
2.9 Ship: Declare customs online
Topic Description

Name of business process 2.9) Declare customs online
Related laws, rules and regulations Customs Proclamation No. 859/2014

Transitor
Ethiopian Revenues and Customs Authority (ERCA)
Input and criteria to begin the Bank export permit
business process Business license
Tax identification number (TIN)
Packing list
Invoice
Activities and associated 2.9.1 Exporter prepares all necessary documents and submits it to the transitor.
documentary requirements 2.9.2 The transitor receives the documents and checks them for completeness
and accuracy.
2.9.3 The transitor makes the export declaration electronically.
2.9.4 The transitor prints, signs and stamps the print-out of the online
declaration and attaches all necessary documents.
2.9.5 The transitor submits the declaration together with other documents to
ERCA.
2.9.6 ERCA receives the application file and checks it for accuracy and
completeness.
2.9.7 ERCA scrutinizes the declaration and all attached documents.
- If the requirements are not met, ERCA requests transitor to make
amendments to the declaration file. Possibly, a penalty will be issued depending
on the seriousness of the error.
- If the requirements are met, then:
2.9.8 ERCA issues an acceptance of declaration letter.
2.9.9 The transitor receives the acceptance of declaration letter and notifies the
exporter.
2.9.10 The exporter receives the acceptance of declaration letter.
Output criteria to complete the Acceptance of declaration letter
business process
Average time required to complete 1 hour–2 days
Average costs involved US$ 1.75 per declaration
29
30
2.10 Ship: Obtain customs clearance
Topic Description
Process name 2.10 Obtain customs clearance
Rules and regulations Customs Proclamation No. 859/2014
Exporter or representative
Stakeholders Logistics
Customs
Exporter or representative has already submitted the required documents for
Precondition
customs clearance.
2.10.1 Upon finding the documentation provided by the exporter or representative
satisfactory, customs authorities issue customs clearance; i.e. exit note.
2.10.2 The exporter’s agent acknowledges receipt of the customs clearance.
2.10.3 A driver of inland haulage presents the equipment interchange receipt and
goods transition control list to the customs officer.
2.10.4 Customs officer verifies the information received with the actual
consignment and the information recorded in the system. If customs’ paperless
system indicates that the consignment is not subject to further inspection, the
Description customs officer can release the consignment from the sub-gate right away.
2.10.5 If it is indicated in customs’ paperless system that this particular
consignment is randomly selected for inspection, a driver of inland haulage has to
transfer the container to the point of inspection.
2.10.6 Customs officer inspects the cargo. If misconduct is not found, the
customs officer can release the consignment from the sub-gate right away.
2.10.7 The actual quantity of goods to be exported will be recorded in the system.
The exporter will be notified of this amount. If misconduct is found, the customs
officer records a misconduct case, which requires further investigation.
Output criteria to complete Goods are ready to get out of the customs inspections area and are on the way
the business process to the port of shipment.
Average time to complete 1 day
Average costs involved N/A (fee is already paid during the online submission)
31
2.11 Ship: Move goods to Djibouti
Topic Description
Process name 2.11) Move goods to Djibouti
Rules and regulations Ethiopian Roads Authority (ERA) Proclamation No. 80/1997
Stakeholders Inland haulage
Customs
Precondition The goods are already at the port’s gate.
2.11.1 Driver presents the equipment interchange receipt (EIR) at the gate and
requests to enter port container yard.
2.11.2 Customs official verifies documents. If not in order or missing documents,
informs exporter provide the missing documents.
2.11.3 Deputy chief assigns an inspector to inspect the container’s seal for
authenticity.
2.11.4 The container undergoes scanning by the concessionaire. Port authority’s
officer allows truck to enter port container yard, and container goes through
Description customs clearance.
2.11.5 Driver proceeds to pay port fees for loading and unloading container and
stevedoring charges to the port authority’s billing department.
2.11.6 Port authority’s officer enters data into single-window computer system,
which informs the stevedoring department to proceed with loading and unloading.
The data is also shared with the carrier (shipping line) to prepare a load list for
the cargo.
2.11.7 Port authority’s worker moves the container from container yard to the
dockside to stow onto the vessel.
Output criteria to complete The consignment is ready to be shipped.
Average time to complete 2–3 days
32
33
2.12 Ship: Enter the port and stow cargo on vessel
Topic Description
Process name 2.12) Enter the port and stow cargo on vessel
Rules and regulations Convention on the International Maritime Organization
Customs
Stakeholders
Carrier (shipping line)
Port authority
The consignment has already been released from the customs area.
Precondition Carrier has already received permission from the marine department to leave port
of departure.
2.12.1 Ship agent prepares bill of lading to exporter and manifest to the customs
department through paperless system.
2.12.2 Ship agent prepares container loading list for port authority.
2.12.3 Ship agent sends bill of lading to exporter.
Description
2.12.4 The port authority prepares a list of outward-going containers to be stowed
on the vessel and ensures that the shipping line verifies the list.
2.12.5 Once all these activities are completed and the cargo release order is
received from customs, the ship sets sail as per schedule.
Output criteria to complete The ship is on the move with the consignment.
Average time to complete 1–1.5 days
Average costs involved US$ 0.75–US$ 0.80
34
35
2.13 Ship: Obtain certificate of origin from Chamber of Commerce
Topic Description
Process name Ship
Name of business process 2.13) Obtain certificate of origin from Chamber of Commerce
Related laws, rules and regulations International trade agreements

Ethiopian Chamber of Commerce and Sectoral Association
Input and criteria to begin the Certificate of origin form (four copies)
business process Business registration certificate and export business license
TIN
Activities and associated 2.13.1 The exporter pays for and takes a blank certificate of origin form.
documentary requirements 2.13.2 Chamber receives the cash payment.
2.15.3 Chamber issues a payment receipt.
2.13.4 The exporter completes the blank certificate of origin form, signs it and
submits it together with relevant documents.
2.13.5 Chamber’s trade and investment office cross-checks the supporting
documents and assesses if the exporter is eligible for the certificate of origin.
- If the application file does not meet the criteria, the process is terminated.
- If the application file meets the criteria, a note of the shipment date is taken.
2.13.6 Rules of origin officer of Chamber issues and signs the certificate of
origin.
2.13.7 The exporter takes the signed certificate of origin to the documentation
section to get it stamped.
2.13.8 The exporter receives the certificate of origin.
Output criteria to complete the Certificate of origin

business process
Average time required to complete 0.01–0.02 days

36
37
2.14 Ship: Prepare documents required by importer
Topic Description
Process name 2.14) Prepare documents required by importer
Uniform Customs and Practice for Documentary Credits, UCP 600 (ICC
Rules and regulations
Publication No. 600)
Importer
Stakeholders
Logistics
Shipping line
Precondition The consignment is already on the ship and set for movement.
2.14.1 The exporter or representative collates all the documents that will be
needed by the importer to receive the consignment in the importing country,
which includes the commercial invoice, packing list, certificate of origin, certificate
Description of quality, insurance certificate and bill of lading.
2.14.2 The exporter sends an e-mail notifying the importer of the shipment, along
with soft copies of the documents. Within two to seven days, the exporter sends
original copies of those documents by courier.
Output criteria to complete Importer receives and acknowledges the receipt of import documentation.
Average time to complete 15 to 30 minutes
Average costs involved N/A (except for the courier fee to send the hardcopy documents)
38
2.15 Ship: Obtain certificate of origin (customs) (optional)
Topic Description
Name of a process area Ship
Name of business process 2.15) Obtain certificate of origin (customs)
Related laws, rules and regulations Various relevant international agreements

Customs
Input and criteria to begin the Written application for status
business process Certificate of origin form
Activities and associated 2.15.1 The exporter makes a written application to customs for status.
documentary requirements 2.15.2 Customs receives application.
2.15.3 Customs assesses the goods by visiting the factory.
2.15.4 Customs provides criteria.
2.15.5 Exporter chooses criteria.
2.15.6 For a particular shipment, the exporter then buys a blank certificate and
submits it to customs together with other documents such as the bill of lading
and invoice.
2.15.7 Customs cross-checks the supporting documents, assesses if the criteria
are correct and takes note of the shipment date.
2.15.8 Responsible officer issues and signs the certificate.
2.15.9 The exporter takes the certificate to the documents section to get it
stamped.
2.15.10 The exporter receives the certificate.
Output criteria to complete the Certificate of origin is issued by customs and received by the exporter.
business process
Average time required to complete 10–15 minutes
Average costs involved US$ 0.25
39
40
3. Pay: Description of activities
Topic Description
Process name 3. Pay
Uniform Customs and Practice for Documentary Credits, UCP 600 (ICC
Rules and regulations
Publication No. 600)
Exporter and exporter’s bank
Stakeholders
Importer and importer’s bank
Precondition Exporter and importer conclude sales contract and trade terms.
3.1 Exporter prepares and sends documents (e.g. invoice, packing list and bill of
lading) to importer.
3.2 Importer receives documents. Importer goes through import declaration
process.
3.3 Importer prepares cash or money in the account for transfer when the due
comes.
Description 3.4 Importer’s bank receives transferred money.
3.5 Importer’s bank review and payment or direct debit from importer.
3.6 Importer’s bank sends money orders to exporter’s bank.
3.7 Exporter’s bank is debited from importer’s bank.
3.8 Fee deducted before transfer to exporter’s account.
3.9 Exporter checks and receives money.
Output criteria to complete The contract is fulfilled and finishes the whole process.
Average time to complete 2–5 days
41
42
Table: Export process of pulses and spices from Ethiopia and recommendations for improvement
Core business process Observations Recommendations

(use case)
Procedural Data and documentary Transparency and
requirements requirements predictability
Finalization of the sales Quotation Direct Improving the
contract is quite straight Purchase order communication communication
forward, as it involves between the technologies, such as
Proforma invoice (PI)
only two parties, both of importer and the Internet connectivity,
whom are private. exporter, through will ease the process by
exchange of e- enabling reliable and
mails, phone or faster correspondence
Skype among stakeholders
conversations. inside the country and
Finalize purchase order These are in line outside.
with the layout of
international trade
documents, which
includes the
delivery date,
quality of item,
packaging
instructions and
payment options.
This step involves Bank application This is quite a There is scope to
interaction among the Proforma invoice standard approach, improve the procedure
exporters, importers as it is guided by through wide, faster and
Export permit (copy)
and their respective the Uniform reliable use of an online
banks. The payment advice Customs and platform, which requires
Obtain L/C advice needs to contain a Practice for improvement of Internet
specific reference to the Documentary speed and coverage.
export and sales contract. Credits (UCP)
(current version is
UCP 600).
The exporter’s bank Business registration Proclamation No. There should be some
receives and verifies Export business license 591/2008, The online platform to
the application. After National Bank of connect all the organs
Commercial invoice
verification, if the officer Ethiopia related to the export
in charge is satisfied, Copy of authenticated Establishment (as process for data and
the exporter’s bank letter of credit amended) information sharing, in
issues the bank export Bank permit for export of Proclamation. order to make the
permit. The National the goods duly National Bank of process faster and find
Bank of Ethiopia (NBE) completed, signed and Ethiopia, Directive any mismatch very
receives a copy of the sealed No. FXD/07/1998: easily.
bank export permit, Two original invoices duly “To transfer
along with supporting completed, signed and National Bank of
documents. sealed Ethiopia's foreign
Packing list exchange functions
to commercial
The bank export permit
banks”, dated 31
form has four copies (one
August 1998.
each for the exporter's
Obtain bank permit
bank, the NBE, ERCA
and the exporter). This is The National Bank
being completed manually of Ethiopia (NBE)
with carbon paper. All oversees this
documents are then process. It regularly
submitted to the customer provides and
relations officer of the updates commercial
commercial bank. banks with the
Names and full addresses latest price
of parties to each information on
transaction. various
commodities so
Type of currency and
they can advise on
amount.
pricing of export
INCOTERMS agreed items if requested
upon between the parties by their customer.
(for import/export).
Short description of
43

(use case)
commodities or service of
the transaction.
If the exporter does not Commercial invoice This is a private A one-stop facility can
have his or her own Packing list step that involves be built for export
cleaning facility, he or exporters and promotion. On the
she contacts the cleaning premises, exporters will
authorized cleaning companies. get support for services
company for a like cleaning,
quotation. The exporter fumigation, inspection
ensures that the items for phytosanitary and
are ready stocked storage.
Clean products and obtain either on the exporter’s
cleaning certificate premises or at the
cleaning company’s
warehouse and graded
based on the buyer’s
requirement.
One the required level
of cleaning is achieved,
the company issues a
cleaning certificate.
Once the goods are Description of the goods The fumigation process
cleaned and properly (commercial invoice) and and requirements can
stocked, the exporter location of the be made available
contracts fumigation warehouses online.
companies and asks for The certificate can be
quotations. On issued online, which will
average, it takes four save travel time and
hours to do the cost for the exporter.
fumigation and it takes
Obtain fumigation
about 72 hours to
certificate
complete the whole
fumigation process.
Then the company
conducts a pre-
inspection and, if the
sample test meets all
requirements, the pre-
inspection certificate is
issued.
Exporter applies for Application form The Ethiopian The test results can be
quality certificate to the Commercial invoice Conformity issued online, which the
Ethiopian Conformity Proof of payment Assessment exporter can print and
Assessment Enterprise Enterprise (ECAE). use for the next level.
(ECAE). Establishment Even the
The exporter arranges Council of Ministers standardization
with the authorized Regulation No. authority can directly
inspection agency to 196/2010. There is send the results to the
inspect the product. no SPS notification importer or to the
The inspector (or authority or SPS respective authority who
inspectors) from the enquiry point. issues the quality
testing authority Eventually, the SPS certificate (Ministry of
collects samples, and notification authority Trade, in this case).
Obtain quality certificates
performs inspection is expected to be
and required testing in established under
their laboratory. the responsibility of
the Ministry of
Trade, and the SPS
If the inspector is enquiry point under
satisfied with the that of the Ministry
product quality, an of Agriculture.
inspector issues the lab
A TBT inquiry point
test report to the
exporter. has been
established under
the overview of
Ethiopian Standards
44

(use case)
Agency. However,
the office does not
operate fully and
only limited
demands are
presented from
local exporters.
The exporter applies for Application form Plant quarantine The process can be
a phytosanitary Cleaning certificate regulation (Council automated so that the
certificate from the of Ministers process of application
Quality certificate
Ministry of Agriculture Regulations no. for the inspector’s visit
(MINAGRI). Application form 4/1992). and collection of the
Commercial invoice certificate can be made
online. This will save
The exporter arranges The Ministry of
Any container shall be Agriculture time and cost and make
a time for the MINAGRI
marked with the oversees the the overall process
inspector to visit the
information specifying the transparent.
warehouse. process.
nature of the contents, the Ethiopia is a Russian importers ask
place where produced or for not only the
Once satisfied, the member of the
Obtain phytosanitary obtained, where plants or certificate, but also the
inspector issues the Codex Alimentarius
certificate other articles were result of the analysis,
certificate to the Commission, the
propagated, the name which the Ministry of
exporter. International Plant
and address of the Protection Agriculture does not
shipper, owners or person Convention (IPPC) issue. This creates a
forwarding, and the name and the problem for exporters
and address of the International Office who wish to export to
consignee. Russia. To address the
of Epizootics (OIE)
and, therefore, issue, the Ethiopian
applies international Government can sit with
the Russian counterpart
standards
guidelines issued by and mitigate it through
these organizations. bilateral trade
negotiations.
If the exporter does not Description of the goods When supporting big
have his or her own Amount of goods (number projects, the
transportation, he or of containers) government sometimes
she contacts an inland Location of the takes control of most of
haulage company. the containers, which
warehouses
creates a short supply
Vehicle plate number for export businesses. A
Once the parties agree Drivers’ identities mechanism could be
on the terms and
conditions, they fix a developed to address
Arrange local these issues upfront.
time to pick up the
transportation
goods from the
exporter’s premises.
Inland haulage collects

the goods from the
exporter’s premises
and brings them to the
place of customs
inspection.
Once the goods are Quality certificates There are no The sequencing of
ready for customs Phytosanitary certificates specific rules or cleaning, testing,
inspection, the exporter regulations here. fumigating and
asks the customs obtaining phytosanitary
broker to send a certificates can be
vehicle to load the harmonized in such a
Load goods/stuff cargo goods. way that the time
Parallel to sending the required to perform all
cargo to the exporter’s these functions can be
premises or reduced to the
warehouse, the minimum. In this regard,
transitor makes the a one-stop facility can
declaration. improve efficiency.
45

(use case)
This step is completed Commercial invoice Ethiopia Revenues The online declaration
by the exporter’s agent; Packing list and Customs process sometimes
i.e. the transitor Authority, Customs takes a long time due to
Certificate of origin
company or CFA. The Proclamation No. the bad Internet
CFA submits the online Certificate of quality 859/2014. ERCA connection. The
declaration to Ethiopia Business registration has its own website business community
Revenues and license and agents that are can work together with
Customs Authority. Export business license registered to use the government to
Tax identification number ASYCUDA++ have improve this situation by
(TIN) access to the ensuring the maximum
system from their benefit of ICT.
Bank export permit (copy
office.
for ERCA)
However, not all
Power of attorney letter
transitor offices are
equipped with an
As a first step, the ASYCUDA++
transitor checks the connection. In such
documents for cases, the transitor
completeness and first completes a
accuracy. Then the customs declaration
transitor makes the manually and
customs declaration submits the manual
online via the Automated declaration to the
System for Customs Data customs clearing
Declare customs online (ASYCUDA++). Once the agency, the DTI.
declaration is submitted, it The DTI staff keys
must be printed, stamped in the manual
and signed by the declaration and
transitor and becomes prints a copy for
part of the customs verification by the
declaration file. In transitor. Once the
addition, the above- transitor verifies the
mentioned documents are accuracy of the
attached to the data, the
declaration. The declaration is sent
declaration file is to customs and a
subsequently submitted to final print-out is
ERCA. produced. Using the
DTI comes at a
service charge of
ETB 150 for single-
product shipments
(one HS-Code). For
additional product
types, there is an
additional fee of
ETB 2 per product.
This process takes
15–30 minutes.
The transitor submits Commercial invoice The frequent The capacity of the
the request to customs Packing list change of officers at customs officials needs
to assign an inspector Certificate of origin customs doesn’t to be improved by
for inspection of the permit the officials providing necessary
goods. Customs Certificate of quality to be efficient. This training, so that they
assigns an inspector to delays the checking can be equipped with
inspect the goods. procedures very the best international
Inspector checks often. practices. In order to
samples and also the Also, there is a lack facilitate export, a risk-
Obtain customs clearance
checks the submitted of infrastructure based inspection
documents. starting from basic system could be
Once the inspector is infrastructure such introduced and also
as working space applied for exports. This
satisfied, he or she puts
the seal on the and waiting areas would allow customs to
container and issues an for the exporters or prioritize high-risk and
their high-damage cargo for
exit note.
representatives to inspection while only
checking facilities doing random
46

(use case)
such as scanning of inspections of other
items loaded in cargo from time to time.
trucks or containers. The customs authority
The process of has already agreed to
keeping the records implement risk
is still manual, but management in exports,
can be digitalized, but no timeline has
which will give easy been set. In this case,
access to development partners
information and such as ITC and
quick sharing with UNCTAD can help to
other agencies build human capacity to
involved in the implement these
process, such as initiatives.
NBE.
All exports are
subject to physical
inspection. The
physical inspection
takes place either at
the customs facility
or at the exporters’
premises.
As per the transport Commercial invoice With the
contract, the inland Packing list operationalization of the
transport company railway track, the
Certificate of origin
collects the goods from process will be faster.
the pre-agreed place Certificate of quality
Government should
and transports them to Customs exit note make a strategic plan to
Move goods to Djibouti the port. connect the rail network
with major business
areas.
Increase competition in
providing multimodal
transportation service.
This step involves a Officials at the port verify International The guidelines or
number of parallel seals on the container Convention for the instructions regarding
activities by the and accept the truck into Safety of Life at Sea port handling can be
shipping line and the the yard, and signs the (SOLAS), 1974, as made available on the
port authority. cargo acceptance form. amended. port website.
On arrival, the CFA International
requests entry of the The shipping line Convention for the A way needs to be
vehicle into the port prepares the draft bill of Prevention of found to enable the Port
area. The port records lading for the agent to Pollution from of Djibouti to remain
details of the truck and confirm all details, upon Ships, 1973, as operational for longer
container and issues an confirmation of which the modified by the hours.
entry pass allowing the bill of lading is issued. Protocol of 1978
truck and container to relating thereto and
enter the controlled by the Protocol of Data requirements can
Enter the port of Agent collects bill of be harmonized.
area. The date and 1997(MARPOL).
departure and stow cargo lading from shipping line
time of entry of the International
on the vessel and forwards it to the
truck and container is Convention on
officially recorded. The exporter.
Standards of
goods are then taken to Training,
the designated area Certification and
where cargo inspection Watch-keeping for
is to take place. Seafarers (STCW)
The shipping agent as amended,
coordinates handling of including the 1995
the container at the and 2010 Manila
terminal and moves it amendments.
to the berth area with
permission from the
port authority.
While the container is
47

(use case)
in the process of being
stowed onto the vessel,
the shipping agent
prepares the final bill of
lading, which is
supplied to the CFA.
Parallel to this process,
the port authority
prepares a list of
outward-going
containers to be stowed
on the vessel and
ensures that the
shipping line verifies
the list. Once all these
activities are completed
and the cargo release
order is received from
customs, the ship sets
sail as per schedule.
The exporter pays and Business registration Application needs to This step can be
takes a blank certificate Export business license be made in person. simplified by allowing
of origin form from the Commercial invoice The Chamber has online application and
Ethiopian Chamber of similar offices in issue of the certificate,
Commerce and Tax identification number Tigray Region, which will save the time
Sectoral Association. (TIN) Mekele Town and and cost of travelling to
The exporter completes Dire Dawa. Other the Chamber every
the blank certificate of regions are serviced time.
origin form, signs it and from the Addis
submits it together with Ababa office.
relevant documents. An
officer from the
Chamber checks the
supporting documents
and assesses if the
Obtain certificate of origin exporter is eligible for
(Chamber of Commerce) the certificate of origin.
If the application file
meets the criteria, a
note is made of the
shipment date. The
Chamber’s rules of
origin officer issues and
signs the certificate of
origin. The exporter
takes the signed
certificate of origin to
the documentation
section to get it
stamped. The exporter
receives the certificate
of origin.
The exporter collects all Commercial invoice International Exporters can be

the documents required Packing list Chamber of trained to prepare or
by the importer to Certificate of origin Commerce (ICC) organize the
receive the Uniform Customs documentary
consignment in the Certificate of quality requirements for export
Prepare the documents and Practice for
importing country. Then Insurance certificate Documentary business. Short courses
required by the importer
the exporter sends an Bill of lading Credits, UCP 600, or training on this can
e-mail notifying the (ICC Publication be introduced or
importer of the No. 600) conducted on a regular
shipment, along with basis, combining both
soft copies of the national and
documents. international
48

(use case)
Shortly thereafter, the professionals in this
exporter sends original field.
copies of those
documents by courier.
The payment for the Commercial invoice International More professionals in

exporter depends on Packing list Chamber of the banking sector can
the terms and Certificate of origin Commerce (ICC) be trained for better
conditions set in the Uniform Customs understanding of trade
commercial invoice. Certificate of quality finance.
and Practice for
Normally, exporters get Insurance certificate Documentary Professionals can be
an agreed percentage Bill of lading Credits, UCP 600, encouraged to get
of export value upon (ICC Publication certificates like the
the first presentation of No. 600) Certificate for
the supporting Documentary Credit
documents. Once the Specialists (CDCS).
exporter notifies the
importer about the
Pay shipment and sends
the copies of the
required documents,
the importer transfers
the agreed percentage
of money to the
exporter’s bank
account.
However, for the full
payment, exporters
might have to wait for
some time (until the
coffee is released by
the importer).
49
References
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and Training Network on Trade (ARTNeT). Available from
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BUSINESS PROCESS

EXPORT OF PULSES AND SPICES

Chapter 1 Trade context for BPA in Ethiopia 4

Chapter 2 Analysis of export processes and procedures of selected items from

Chapter 3 Concluding observations and policy options 15

Annex Buy: Finalize purchase order 17

Table 1. Major economic indicators of SITA countries in 2014 4

Figure 1. Use case diagram of core export processes from Ethiopia 12

Acronyms and Abbreviations

The following abbreviations are used:

GDP Gross domestic product

Chapter 1 Trade context for BPA in Ethiopia

Table 1. Major economic indicators of SITA countries in 2014

Table 2. Over time change of export process in Ethiopia: WEF

Table 3. SITA countries: Logistics Performance Index 2014

Ethiopia 166 39.8 57 126 144 175

1. Overview of Ethiopia’s export performance

Table 5. Trend of Ethiopian pulse exports (FOB value in ‘000 US$)

Table 6. Trend of Ethiopian spice exports (FOB value in ‘000 US$)

2. Methodology of the study

Chapter 2 Analysis of export processes and procedures of

1. Export process: Pulses and spices exports from Ethiopia

Step 2.1: Obtain letter of credit (L/C)

Step 2.2: Ship: Obtain bank export permit

Step 2.3: Ship: Clean products and obtain cleaning certificate

Step 2.4: Ship: Obtain fumigation certificate

Step 2.5: Ship: Obtain quality certificates

Step 2.6: Ship: Obtain phytosanitary certificate

Step 2.7: Arrange local transport

Step 2.8: Ship: Load goods/stuff cargo

Step 2.9: Declare customs online

Step 2.10: Obtain customs clearance

Step 2.11: Move goods to Djibouti

Step 2.12: Enter the port and stow cargo on vessel

Step 2.13: Ship: Obtain certificate of origin (Chamber of Commerce)

Step 2.14: Arrange documents

Figure 1. Use case diagram of core export processes from Ethiopia

Table 7. Time procedure for exports from Ethiopia

2.11 Move goods to Djibouti Private/public 50 to 60 2 3 2.5

Ethiopian Chamber of Commerce and

Djibouti customs authority

Chapter 3 Concluding observations and policy options

Annex Buy: Finalize purchase order

2.1 Ship: Obtain letter of credit (L/C) advice

Name of process area Ship

Name of business process 2.1) Obtain letter of credit (L/C) advice

Related laws, rules and Bank internal directive

Average costs involved N/A

2.2 Ship: Obtain bank permit

Related laws, rules and Commercial code

Average time required to 1–3 hours

Average costs involved US$ 10–US$ 25 per ton

2.3 Ship: Clean products and obtain cleaning certificate

2.4 Ship: Obtain fumigation certificate

Average time required to complete 3 days

2.5 Ship: Obtain quality certificates

2.6 Ship: Obtain phytosanitary certificate