Import and Export policies and procedures

CHAPTER ONE

CUSTOMS OPERATIONS IN ETHIOPIA

2.1. Overview of Customs Functions

Customs is an authority or agency in a country responsible for collecting tariffs and for controlling
the flow of goods, including animals, transports, personal effects, and hazardous items, into and out
of a country.

The World Customs Organization (WCO) defines Customs as “the government service which is
responsible for the administration of Customs law and the collection of import and export duties
and taxes and which also has responsibility for the application of other laws and regulations
relating, inter alia, to the importation, transit and exportation of goods.”

In Ethiopia, Ethiopian Revenues and Customs Authority (ERCA’s) functions include the
enforcement of the Customs Proclamation provisions governing the import and export of cargo,
baggage and postal articles; the arrival and departure of vessels, aircrafts, and other means of
transport; goods in transit; and the governance of any goods subject to customs control,
including rights and obligations of persons taking part in customs formalities.
2.2. Principles of Customs Operations in Ethiopia

Customs operations involve the administration of customs law relating to the importation,
exportation, movement or storage of goods and the collection of duties and taxes. In this regard,
customs operations are a key factor for trade facilitation and economic development of a country.
For such a crucial sector to function soundly it should stand on principles that guide its course to
worthwhile goals.

Accordingly, the Ethiopian customs law contains provisions that clearly prescribe the basic
guiding principles that have to be applied on customs operations. These guiding principles, which
have important implications for the roles of all stakeholders, including the traders themselves, are
the following ones:

1. Self-assessment: It is the responsibility of importers and exporters or their agents to assess and
submit the value of goods to the customs office, which then determines the appropriate duties and
taxes to be paid based on the information provided by traders.

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2. Risk management: ERCA steers its activities through assessing, directing and controlling
risks which emanate from the import and export of goods. The purpose is to strike a balance
between trade facilitation and controls. Successful implementation of the risk management
principle helps to avoid unnecessary delays and wastage of resources by concentrating
customs control on high risk consignments and expediting the release of low risk
consignments.

3. Transparency: Under this principle, ERCA provides relevant information about trade –
including the rates of duties and taxes, fees and charges, customs laws and procedures,
appeal procedures, etc. – through publications and other means. This guide is one example of
ERCA’s commitment to enhancing the transparency of its operations.

4. Accountability: ERCA clearly defines the duties and responsibilities of each actor
in customs operations.

5. Service orientation: As a result of the preceding principles, ERCA is committed to creating

conducive environment to provide equitable, expeditious, predictable and reliable services.
6. Prevention of illegal practices by promoting self-compliance: Under this principle, which
is related to risk management and self-assessment, ERCA will seek to prevent illegal practices
such as commercial fraud (under-or over-invoicing, wrong description and classification of
goods, etc.), smuggling of prohibited and restricted goods, and others, by taking measures that
promote self-compliance. Examples of such measures are the provision of information and
advice to traders, advance rulings for customs classification, customs valuation and
preferential origin, the implementation of post clearance audits, or the use of simplified
procedures for authorized traders.

7. Promotion of priority sectors and economic development:

This principle is aimed at the Authority to play its vital role in expediting the economic development of the
country by providing special service to priority sectors, such as manufacturing. To uphold these principles, a
vital system that informs all the functions of customs operations is the customs approved treatment or use of
goods. Under this system, in keeping with the standards that are set by the customs law all the goods that
pass customs are treated without any discrimination as to the nature, quantity, origin, and destination or
shipment conditions. However, the application of this system is precluded in situations where it would conflict
with measures put in place for public morality, protection of health and life of humans and animals and
plants, the protection of cultural heritages, or other specific treatment or use of goods provided by law.

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2.3. Prohibited or restricted imports and exports

While Ethiopia, as a general rule, allows any commodity to be traded freely, this is not true for two
categories of goods: Some are “prohibited goods,” according to Article 4 of the Customs
Proclamation, Prohibited goods are the goods that cannot be imported into the country Examples are
illicit narcotics and drugs or worn clothes.
While restricted goods are those which must meet certain conditions before clearance through
Customs. Restricted goods are not allowed to be imported, exported or transited unless in
compliance with the requirements of the specific restriction. Normally, restricted goods are
administered by specific regulatory agencies. Examples of restricted goods are medicines and
pharmaceutical products, foods and beverages, communication equipment, fertilizers,
seeds, live animals, etc.
2.4. Legal Basis for Customs Operations
In Ethiopia, the legal basis for customs operations is primarily governed by the Customs Proclamation
No. 859/2014. This proclamation outlines the rules and regulations related to customs duties, import
and export procedures, customs valuation, and classification of goods, customs offenses, penalties, and
other aspects of customs operations. Additionally, Ethiopia is a member of the World Customs
Organization (WCO) and follows international customs standards and best practices set by the WCO.
The Ethiopian Revenues and Customs Authority (ERCA) is the government agency responsible for
overseeing customs operations and enforcing customs laws in the country. It is important for businesses
and individuals engaged in import and export activities in Ethiopia to comply with the provisions of the
Customs Proclamation and other relevant regulations to ensure smooth and lawful customs operations.

2.5. Regulatory Bodies for Import and Export

The Ministry of Trade and Regional Integration (the former Ministry of Trade and Industry) is the major
body of the government to regulate all import and export of goods and licensing. The other major organ is
the National bank of Ethiopia (NBE) which regulates the foreign currency aspect of import-export. The
responsibility of the NBE include registration of sales contract agreement; issues Export Bank Permit;
issues Foreign currency Approval; and issues Bank import permit for Letter of Credit, Advance Payment,
approves Purchase Order for Cash Against Document (CAD).

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There are also other regulatory bodies which specifically issue import and export permit for specific
goods.

 For example; the Ministry of Agriculture issues import permit for plants, seeds, plant products,
pesticides and fertilizers, and export permit for animal feed, live animals and meat products;
 The Ministry of Mines and Petroleum issue permit for the exportation of mineral products;
 The Ethiopian Food and Drugs Authority (EFDA) (formerly Food, Medicine and Health Care
Administration and Control Authority (FMHACA)) regulates the import and export of drugs,
medical supplies or instruments, baby food, supplement food, and cosmetics; and
 The Information Network Security Agency (INSA) issue Import permit for communication and
security equipment’s.

CHAPTER TWO

IMPORT AND EXPORT PROCEDURE

2.1. Import procedure
An import is a good or service bought in one country that was produced in another. Imports and exports
are the components of international trade. If the value of a country's imports exceeds the value of its
exports, the country has a negative balance of trade (BOT), also known as a trade deficit.

Import trade refers to the purchase of goods from a foreign country. The procedure for import
trade differs from country to country depending upon the import policy, statutory requirements and
customs policies of different countries. In almost all countries of the world import trade is
controlled by the government. The objectives of these controls are proper use of foreign exchange
restrictions, protection of indigenous industries etc.
Typically, the procedure for import and export activities involves ensuring licensing and compliance
before the shipping of goods, arranging for transport and warehousing after the uploading of goods

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and getting customs clearance as well as paying taxes before the release of goods.
The following are the procedures for importing of goods.
1. Obtain an import license
The first step to import a good is to obtain an import license. Licenses are issued by the concerned
government offices against the submission of a completed application form along with the
following documents:

 A copy of the Tax Identification Number (TIN);

 A copy of the Memorandum of Association and Articles of Association for private

limited and share companies;

 A contractual agreement of office rent or office building plan;

 A document evidencing the capital allocated for the commercial activity;

 Two passport size photographs taken within the last six months;

 If the applicant is a foreign investor, the investment and residence permits; and

 A valid business registration certificate.

2. Obtain a pre-import permit for certain restricted goods in Ethiopia
The import of certain goods into Ethiopia is restricted for safety, security, environmental, health
and other reasons, i.e. they must not be imported without permission. any importer should check in
advance, with ERCA and/or regulatory agencies, if the import goods are subject to controls or
limitations.
3. Arrange payment issues
An important step early in the process – after the pre-import permit is secured, if required – is to
prepare for the payment of imported goods, which might be through a bank. Payment through a bank
requires two tasks. First, a foreign currency approval must be obtained.
This approval is necessary due to the foreign exchange controls in place and will allow the importer to
pay for the imported goods in foreign currency. Second, the payment arrangements have to be agreed
with the importer’s bank.

Foreign currency approvals must be requested through the bank at which the importer has the
account which is to be used for the import. As part of the request, the importer must present his/her
valid business license and a pro-forma invoice from the supplier.

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The pro-forma invoice should describe the imported goods, state the unit price, quantity and total
price, as well as list additional charges that may be applied on the transaction.

Currently, foreign currency approvals are issued by Commercial banks and are processed
manually; the time required for the approval depends on the availability of foreign currency
requested.

The second task within the payment issues is to arrange with the bank for the method of payment and
obtain a bank permit. In this regard, the methods of payment for imports used in Ethiopia are the
following:

 Letter of credit (L/C), in which the bank undertakes to pay the supplier a stated sum of money
within a prescribed time limit and against the hand-over of the documents needed for the release
of goods from customs;

 Cash against document (CAD), where the importer’s bank hands over to the importer the
documents needed for the release of goods from customs against full payment;

 Advance payment, i.e. the importer orders the bank to pay the seller via SWIFT transfer prior to
shipment or rendering the service.

4. Collect documents

Once the payment issues have been completed and the supplier has been informed, the goods will
be shipped to Ethiopia. Upon arrival of the goods at the port of entry in Ethiopia, they will be
placed in a customs warehouse, and the importer must accomplish the necessary customs
formalities. For this, the first step is to collect the necessary commercial documents from his/her
bank (in case of L/C or CAD) or directly from the supplier (in case of advance payment).

The following documents are necessary for the preparation of a customs declaration

 Transportation document such as bill of lading, air way bill or truck way bill;

 Invoice which describes the value of imported goods;

 Bank document, i.e. L/C, CAD, confirmation of advance payment/TT;

 Packing list which describes how the goods are packed during transport;

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 Certificate of origin which describes where the goods were originally produced;

 Other documents as required, such as pre-import permits issued by regulatory agencies and duty
free permits for investment goods.
5. Prepare customs declaration
The importer or his/her agent is required to fill in the clearance customs declaration, indicating the
type of import regime, detailed data or information about the imported goods, and also tariff
classification and customs valuation, which leads to determining the import duties and taxes.

According to the Ethiopian tax laws the following duties and taxes are levied on imported goods:

 Customs duty is normally calculated as a percentage of the duty paying value, also known as CIF
value (Cost, Insurance, and Freight). This is the sum of the transaction value (cost of goods), transport
charges paid to transport the good from the original port of loading to the port of entry in Ethiopia,
the transport insurance paid and other charges such as loading and unloading charges, port
charges, etc. The duty rate varies depending on the type of imported goods and ranges from 0-
35%.

 Excise tax is charged on selective goods such as luxury goods, basic goods demand for which is
hardly affected by price changes, goods that are hazardous to health, etc. The excise tax is
computed on the basis of the CIF value plus the amount of the customs duty payable. The rate of
the excise tax varies depending on the type of imported goods, from 10%-100%.

 Value added tax (VAT) is levied at a flat percentage rate of 15% on the sum of CIF value, customs
duty, and excise tax. Some types of supplies of goods, services and imports are exempted from
payment of VAT.

 Surtax of 10% is levied on all goods imported to Ethiopia with some exceptions, such as
fertilizers, petroleum and lubricants, etc. The amount payable is calculated on the sum of CIF
value, customs duty, excise tax, and VAT.

 Withholding tax is collected on goods imported for commercial use, at a level of 3% on the CIF.
The collected amount is creditable against the taxpayer’s income tax liability for the year. Thus, it
is not a tax in itself but rather a (partial) guarantee on the payment of income taxes.

6. Submit the customs declaration

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To obtain clearance of imported goods from ERCA, two different procedures exist, depending on the type
of transport used for the goods, i.e. whether it is multi-modal or unimodal. Under multi- modal transport,
goods are transported under a single contract with the logistics company but using different means of
transport (e.g., sea and road transport). Conversely, unimodal transport only uses one means of
transportation.

7. Obtain import customs clearance and goods release note

After submitting the customs declaration, ERCA first determines, and notifies the importer of the
decision, whether to accept or reject it based on an initial compliance check, including of the
completeness of documentation submitted. If accepted, the risk level of the consignment is
determined using the customs management system.
ERCA distinguishes three risk levels, i.e. Green (automatic release of goods without further checks),
Yellow (requiring the verification of the declaration only), and Red (requiring the verification of the
declaration and the physical examination of the imported goods) and Blue (automatic release of goods
without further checks at own premise).
8. Pay service charges, exit goods from customs warehouse, and receive final import
customs declaration

As the goods have been stored in a customs warehouse during clearance, storage fees must
normally be paid by the importer; in addition, other service charges (e.g. for scanning of goods)
might apply.24 Therefore, the importer must settle these charges once the goods release note has
been issued. The goods will then be released and the importer takes possession of them. In
addition,

ERCA will issue a final declaration for the importer as a certificate of completing the import procedures
and importation of goods.

9. Submit clearance declaration to NBE

Any importer who obtained a foreign currency permit should present the final import customs
declaration to the NBE. This is a requirement for importing (or exporting) goods in the future.

An importer must keep all records and documents related to the import for five years from the
date of ERCA’s acceptance of the goods declaration. During this period, ERCA may perform a
post clearance audit of the import. The purpose of such audits, which may cover traders’
commercial data, business systems, records and books, is to verify the accuracy and authenticity
of declarations and information provided by the importer.

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 Import and Export policies and procedures

2.2. Export Procedure

Exports are the goods and services produced in one country and purchased by residents of another
country. It doesn't matter what the good or service is. It doesn't matter how it is sent. It can be shipped,
sent by email, or carried in personal luggage on a plane. If it is produced domestically and sold to
someone in a foreign country, it is an export.

Engaging in an export business in Ethiopia is a potentially profitable venture; as exports from the country
are growing and the government encourages the sector. Ethiopia's main export products are agricultural
commodities. These commodities, live animals and other non-value added export products are allowed
only for domestic investors. However, exporters must register with the Ministry of Trade and Industry to
obtain an export license.

General export procedures for exporters

Below is a summary of the general export procedures for exporters:

 Obtaining Export License: Exporters must be registered with Ministry of Trade and obtain an export
license.
 Acknowledgement of receipt of the Order from Buyer: This involves the production of internal
instructions by the exporter on the works, production and preparation of the goods for export order.
 Finalization of Export Contract (sales contract agreement): Finalize the export contract stipulating the
method of payment for the export consignment, and submit a copy to the respective commercial bank by
any of such methods as hand delivery, fax, telex or post. Commercial banks require six copies of letter of
credit, and five copies of advance payment, cash against documents, and consignment note each.
 Application to Export permit: Register the export order with a commercial bank which will in turn issue
the export permit for the particular consignment. All exports except coffee have to be registered with any
of the commercial banks. For coffee, registration takes place at the National Bank of Ethiopia.
 Registration of Export Consignment: Fill in the Customs Declaration Annex form issued by the
commercial bank and submit to the International/Foreign Business Department of the Bank.
 Application for Quality Testing and Certification: When export products are ready, make arrangements
for suitable packaging and apply to the Quality and Standards Authority of Ethiopia for quality testing,
and acquire the Export Authorization Certificate.
 Compliance with Rules of Origin: Fill in the certificate of origin issued by the Ethiopian Chamber of

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Commerce and Sectoral Associations or the Customs Commission in order to qualify under the
preferential tariff treatments or free trade agreements.
 Compliance with Tariff Schemes: Fill in the special movement forms or certificates issued by the
Customs Commission.
 Insurance of Export Cargo: Insure the export cargo and acquire the insurance certificate or policy
document issued by an insurance company.
 Customs Declaration: To avoid costly delays, the exporter declares all facts about the export
consignment, and all supporting original documents should be forwarded to the Customs Clearing Agents
to enable customs formalities and authorization of the dispatch of the export goods. Accordingly, the
exporter must hand over the Export Permit, the copy of the Customs Declaration Annex form, the
Ethiopian Customs Declaration form, the Certificate of Origin, and the special movement
forms/certificates to the clearing agents.
 Movement of Export Cargo: To facilitate the movement of goods, transport documents should be
acquired from the respective carrier. Although the type of transport documents depends on the mode of
transport, the documents should be completed and signed by the carrier or its representatives

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Chapter Three

Goods Declarations

3.1 Introduction
A goods declaration is a statement made in accordance with the provisions of the Customs
Proclamation, by which the declarant indicates the customs procedure to be applied to import,
export or transit goods and furnishes the particulars which the customs administration requires for
its application. A goods declaration, also known as a customs declaration or import/export declaration,
is an official document that lists and gives details of goods that are being imported or exported. It is a
very crucial initial step for the smooth flow of the good through customs procedures.
Since careless handling of the declaration can carry penalties, filling this document and its handling
should be cautiously done.
The goods declaration contains essential information about the goods, such as their nature, quantity,
value, origin, and other relevant details.
3.2 Declarant

A declarant is normally the importer or exporter; it can also be a legal person. The declarant can
be represented by a customs agent. The declarant is a person who makes a statement or
declaration especially in connection with legal proceeding. The declarant is responsible for the
comprehensiveness, clarity, and authenticity of the information provided in the declaration, as
well as for the provision of any other required supporting documents.
The declarant's responsibilities may include:

 Gathering Information: The declarant collects all necessary information related to the goods, such as
their description, value, quantity, and country of origin. They may also obtain supporting documents such
as commercial invoices, packing lists, and certificates of origin.
 Customs Classification: The declarant determines the appropriate customs classification code
(Harmonized System code) for the goods, which is used to identify the specific category and
characteristics of the goods for customs purposes.
 Customs Valuation: The declarant declares the value of the goods, which is used to assess customs duties
and taxes. They must ensure that the declared value is accurate and complies with the customs valuation
rules.
 Customs Document Preparation: The declarant prepares the customs declaration document, including
entering all the required information accurately and completely. This may involve using electronic

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customs systems or filling out paper forms, depending on the customs procedures and requirements of the
country.
 Submission of the Customs Declaration: The declarant submits the customs declaration to the customs
authorities within the prescribed timeframe, either electronically or in paper format, depending on the
customs procedures in place.
 Compliance and Payment: The declarant ensures that the customs declaration complies with all relevant
customs rules and regulations. They are responsible for paying any applicable customs duties, taxes, or
fees on behalf of the importer or exporter.
 Customs Communication: The declarant may need to communicate with customs authorities regarding
the customs declaration, provide additional information or clarification if requested, and address any
customs-related issues or inquiries.

3.3 Goods to Be Declared

In principle, all import, export, or transit goods need to be declared. Any goods in respect of which
goods declaration is presented shall, in the declaration, be identified as any of the following:

A. Dutiable or duty free (e.g., if imported for home use or under the duty draw back import regime).
This refers to the classification of goods based on whether they are subject to import duties (taxes) or are
exempt from such duties. If goods are considered dutiable, it means that they are liable to be taxed upon
importation. On the other hand, if goods are classified as duty-free, it means that they are not subject to
import duties and can be imported without incurring additional taxes. Examples of duty-free imports
include goods imported for personal use or goods imported under specific government programs like the
duty drawback import regime.

B. For outright export or temporary export:

This pertains to the purpose of exporting goods. Outright export refers to the permanent export of goods
from one country to another with no intention of returning them. The goods are intended for sale or use in
the foreign market. Temporary export, on the other hand, involves the temporary movement of goods out
of a country with the intention of returning them at a later time. Temporary exports are typically for
purposes such as exhibitions, repairs, or testing.

C. Exported for outward processing:

When goods are exported for outward processing, it means they are sent to another country for specific
processing or manufacturing operations. The purpose of outward processing is to take advantage of lower
costs or specialized facilities available in the foreign country. After the processing or manufacturing is
completed, the goods are usually re-imported back into the original country.

D. Imported for inward processing and whether it is duty-free:

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Importing goods for inward processing refers to bringing goods into a country to undergo specific
processing or manufacturing operations. The purpose is to take advantage of domestic facilities, expertise,
or incentives. The declaration statement in this case would indicate whether the imported goods are duty-
free, meaning they are exempt from import duties during the inward processing period.

E. Imported temporarily without payment of duties and taxes:

This statement refers to goods that are imported into a country for a temporary period without the need to
pay import duties or taxes. Temporary importation is often allowed for specific purposes such as
exhibitions, demonstrations, or events. The goods are expected to be re-exported within a specified
timeframe

 Some goods are freed from requiring a goods declaration depending on their nature or use.
These include:

 Non-commercial goods imported or exported for personal and home use.

 Goods for commercial advertising and samples.

 Gifts for government, NGOs and religious institutions that do not have commercial amount and
character, as per the directive issued by the Ministry of Finance and Economic Cooperation and
produce donation certificate and invoice value for customs purposes.

 Goods related with the security and defense of the country as per Directive No. 47/2000 EC.

 Goods exported as samples or gifts, the size and number of which are permitted to be exported
without getting foreign exchange in return as per the National Bank of Ethiopia or a bank authorized
by the National Bank to do the same.

 Ethiopian Birr and foreign currency for outgoing passengers with the permission of the National Bank of
Ethiopia.

 Goods for consumption of the staff of Ethiopian foreign Missions with the permission of Ministry of
Foreign Affairs; and Other goods exported for special purpose by government organizations.
Furthermore, the declarant is allowed to inspect the goods and take samples before submitting a
customs declaration. A separate declaration for the sample is not required to be submitted.

3.4 Forms and Preparation of Goods Declaration

The declaration can either be made in writing, electronically, orally, or by bodily action (the latter
two are usually reserved for travelers). Bodily action is when a traveler passes either through the

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green or red channel, whereby the former denotes that no taxable good is carried. A traveler’s
verbal declaration to a customs officer is accepted as an oral declaration. However, when the good
has a commercial nature, a written or electronic declaration must be made.

Traders can complete and register electronic declarations into ERCA’s customs management
system either from their own computers (remote Direct Trader Input, DTI) or at the ERCA offices
(bureau DTI). The process for preparing goods declarations is as follows:

A. Collect the necessary documents (invoice, packing list, certificate of origin, transportation
document, bank permit, etc.; see next section).

B. Complete and register electronic declaration into ERCA’s customs management system
(either through remote DTI or bureau DTI).

C. Review the registered declaration data and produce assessment notice.

D. Prepare Cash Payment Order, if tax is payable.

E. Pay duties and taxes; and

F. Submit the declaration to customs to accomplish the customs procedures.

Additionally, the submission of a hard copy of the original declaration and supporting documents is
at present still required.

3.5 Supporting Documents of Goods Declaration

Supporting documents and goods declaration shall constitute a single indivisible legal
instrument upon acceptance of the declaration. Supporting documents must be submitted in
English or Amharic. If they are in another language, they may need to be translated by a
licensed translator to be processed during the goods declaration.

The following supporting documents shall be submitted with presentation of the goods declarations
of imported and exported goods:

 Transportation document; invoice.

 Bank permit.

 Packing list.

 Certificate of origin; and

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 other documents demanded by ERCA and relevant for compliance, e.g. letters from regulatory
bodies.

In principle, originals of supporting documents shall be submitted to customs. However, where

there are adequate reasons, the declarant may submit, and ERCA may accept, copies of the
necessary supporting documents. The declarant is required to present a guarantee to use copies of
supporting documents. The types of guarantee and time limits are the following:

a) Letter of guarantee for government organizations administered through budget and Insurance
guarantee or cash for others;

b) Where the guarantee is needed to get duty exemption letter or the use of export incentive
scheme, the amount must cover the duties and taxes;

c) The amount of the guarantee for international airport customs users is based on the tax or
duty amount:

• In case of telegram transfers, 50% of the total duties and taxes payable;

• In case of credit or cash against documents, 25% of the total duties and taxes payable;

d) The amount of the guarantee for other customs branch users is:

• In case of a telegram transfer, 5% of the total duties and taxes payable;

• In case of credit or cash against document, 2.5% of the total duties and taxes payable;

e) The time limit for the above guarantee is two months, which can be extended by one month.

If there are adequate reasons explaining why supporting documents cannot be submitted in time and
in full, ERCA may nevertheless accept the declaration if the information available is sufficient to
calculate duties and taxes and if the declarant provides a guarantee to produce the documents within
the time limit proposed by ERCA; the guarantees are identical to the ones listed above.

Additionally, a provisional goods declaration can be made when the declarant, for credible reasons,
does not have all the information for the declaration, but can submit the specifics necessary for
customs assessment, and if the declarant agrees to present the final goods declaration within a fixed
period. A separate tariff assessment may be done for the final declaration.

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3.6 Acceptance or Rejection of Goods Declaration

A declaration is said to be accepted when it has been registered in the customs system. This refers
to the goods declaration submitted to the customs officer together with the supporting documents in
hard copy as well as electronically. ERCA verifies and confirms the declaration without delay and
notifies acceptance in writing.

If ERCA has to reject a declaration, the declarant will be notified in writing, and the reasons for
rejection will be explained. Possible reasons for rejection include missing required documents or
errors in completing the declaration.
3.7 Amendment of Declaration

In principle, the declarant must make sure that the declaration and supporting documents are
complete and correct before they are presented to ERCA. In particular, errors committed through
gross negligence or fraudulent intent which are found after the declaration has been presented will
be penalized. However, a declarant can amend some of the particulars in the declaration before it is
accepted and taxes and duties are paid on it. It can also be amended after it has been accepted but
before it has been assessed. After assessment, the declarant can request that ERCA amends the
declaration. However, once the ERCA has found irregularities in the specifics of the declaration or
if it has notified the declarant its desire to examine the goods, the declarant cannot amend the
declaration unless there is good cause.

Some specific examples for situation where the declaration can be amended are:

 When a claim for refund of duties and taxes is submitted within one year after the goods are
imported or exported upon completion of customs formalities, the declaration can be amended.

 ERCA can amend the declaration to collect the duty and tax that is not paid or paid at a reduced
rate and to correct the difference in an export declaration.

 When the goods are not imported partially or entirely within a period of three months after a
goods declaration is registered and duty and tax are paid or guarantee furnished, the goods
declaration will be amended.

The responsibility and rights to amend goods declarations are as follows:

A. The declarant can amend a goods declaration before acceptance is issued by ERCA and

Ambo University Department of Marketing and Management Compiled by Yohannes K. (MA)

 Import and Export policies and procedures

payment is made.

B. The customer service department can amend a goods declaration before acceptance is
issued by ERCA and after payment is made.

C. The goods clearance team can amend a goods declaration after acceptance has been issued
by ERCA and payment has been made.

D. The post clearance audit department can amend a goods declaration when duty and tax
have not been paid or paid at a lesser amount.

E. The customs procedure department can amend a goods declaration after the customs
procedure is finalized and a copy of final declaration is issued.

3.8 Cancellation of Declaration

A declaration may be cancelled if any of the following conditions are present:

 When the declarant fails to follow-up with customs formalities with ERCA within five days after
submission the declaration or after the conclusion of the preparation of an assessment notice.

 Where it is proved that the declaration has been presented contrary to the provisions of the Customs
Proclamation or any appropriate customs procedure and payment has not yet been effected.

 When the declarant is unable to pay the duty and tax and import the good and applies for re-
exportation.

 When the declarant reports within ten days of the date of approval that the declared goods are not
imported or exported, the declaration can be cancelled; but if the application is received more than
ten days after the date of approval (and within one year), the declaration can be cancelled with
administrative penalty.

 When goods are imported under one transport document and registered with more than two or more
customs branch offices.

 When goods are imported under one transport document and registered twice by the same
declarant.

 When the declaration is registered with incorrect declaration model or office code.

 When the consignor/consignee name or tax identification number is incorrectly registered.

Ambo University Department of Marketing and Management Compiled by Yohannes K. (MA)

 Import and Export policies and procedures

 When there is a mistake in registering a warehouse declaration.

 If there is a dispute between the declarant and the clearing agent and one of them applies to the
cancellation of goods declaration before the goods are imported or exported.

 When a restricted good did not get the necessary authorization in 30 days and when the good is
prohibited from export or ordered to be exported.

 A declaration may also be cancelled upon the request of the declarant before payment has been
made.

The cancellation of a declaration is no longer possible once the goods are released.

The responsibility to cancel a goods declaration depends on the specific situation and reason for the
cancellation:

a) When the declarant reports that the declared goods cannot be imported or exported, the customer
service department can cancel the goods declaration.

b) When goods are imported under one transport document and registered with more than two or more
customs branch offices/two or more clearing agents, the General Complaints and Resolution
Coordinator can cancel the goods declaration.

c) When a declaration has been registered with an incorrect declaration model or office code or
incorrect consignor/ consignee name or tax identification number, the customer service officer
can cancel the goods declaration.

d) In the case of other reason for the cancellation of a declaration, the customer service is
responsible to check the application and cancel the declaration as per the cancellation procedure.

In addition, the customs procedure department is responsible for the cancellation of the goods
declaration in the case of restricted goods that are not imported or exported within 30 days.

The cancellation of declaration does not clear the declarant from penalties; he/she can be liable to
administrative penalties.

Ambo University Department of Marketing and Management Compiled by Yohannes K. (MA)