General Standards
In an attempt to develop a mechanism of protecting the consumer and also ensuring the existence of acceptable trade practice norm the Ethiopian legal system has developed a large number of trade practice and consumer protection laws.
Presently, commercial activities and the rights of concerned traders and buyers are regulated by The Trade Practice and Consumer’s Protection Proclamation (No. 685/2010). Obligations of the seller, rights of the buyer, illegal or harmful trade practices and their corresponding legal duties are incorporated within that aim to ensure the responsible carry of duties by parties as well as safety, health, interests and good will of the general public. This proclamation also establishes and enumerates the power and duties of the trade practice and consumer’s protection authority which among other things is responsible for the regulation and enforcement of the said provisions.
REQUIRED DOCUMENTATION
In order to import or export different kinds of products in Ethiopia, every seller/buyer has to prepare a wide range of documents in order to get access to the Ethiopian market. These are:
- Agency Agreement;
- A bank Permit;
- A bill of lading or airway bill;
- Certificate of origin;
- Commercial invoices;
- Customs import declaration;
- Foreign Exchange Authorization;
- Import license ;
- Insurance Certificate;
- Packing list;
- Tax Identification (TIN) Certificate;
- Pre shipment inspection clean report of findings;
- Transit Document;
- Value Added Tax (VAT) Certificate.
Medicines, medical supplies, and medical equipment must be registered with the Food, Medicine and Health Care Administration and Control Authority of Ethiopia (FMHCA). A Certificate of Analysis (COA) is also required for processed food and pharmaceuticals.
IMPORT POLICIES
Ethiopia has significantly reduced customs duties on a wide range of imports over the last three years. The most recent tariff reductions in January 1997 offer considerable cuts in most duties and especially target imported goods that enhance exports. Tariff rates range from 0 to 50 percent, with an average tariff rate approximately 20 percent. The government plans to reduce the maximum rate to 30% and the average tariff rate to 17-18 percent with in the next three years. Sales tax rates are 4 percent for a selected list of agricultural goods and "essential" goods such as pharmaceuticals, books and printed materials, hides and skins, and cotton. For all other goods, the sales tax rate is 12 percent. There are ten excise tax brackets, applied equally to domestically produced and imported goods, ranging from 10 percent for textiles and electronic products to 200 percent for alcoholic beverages. Neither quantitative restriction on imports nor import licensing requirements present a notable trade barrier although customs clearance remains a hindrance to the business of importing. Not only is the clearance process slow, the imported goods are sometimes charges at attributed values instead of an invoice values, even when the invoices have been certified by trade officials of the exporting country. The government requires that all imports be channeled through Ethiopian national registered as official import or distribution agents.
LABELING REQUIREMENTS
- Packing should be strong and guard against extreme heat in summer, humidity in winter and possible storage in the open. Steel strapping is recommended.
- Outer containers should bear the consignee's and port mark and should be numbered according to the packing list, unless their contents can be otherwise readily identified.
- An indelible marking of origin must appear on all goods and their immediate containers.
- Edible fats, oils, milk and other dairy products are subject to special marking regulations.
- Infant milk foods must state in English.
- Containers of liquids must be marked in the metric equivalent of imperial gallons.
- Dimensions of piece goods must be conspicuously stamped/marked in the metric equivalent of standard yards and fractions of yards.
PACKAGING REQUIREMENTS
Food packaging must be made of harmless material, free of substances that could affect food safety. Likewise, packages must be manufactured so as to preserve the product’s sanitary quality and composition throughout its useful life according to the Ministry of Health’s sanitary standards. Packaging with recycled paper, cardboard, or plastic is forbidden.
CONTACTS
Ethiopian Standards Agency
P. O. Box 2310
Addis Ababa, Ethiopia
Tel: +251-11-646-0111/+251-11-646-0565
Fax: +251-11-646-0880
E-mail: info@ethiostandards.org
Ethiopian Conformity Assessment Enterprise
P.O. Box 11145
Addis Ababa, Ethiopia
Tel: +251-11-646-0569/+251-11-651-1381
Fax: +251-11-645-9720
Email: info-cs@eca-e.com