CHAPTER THREE

GOODS DECLARATIONS

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. 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.

3.1 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 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.

3.2 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);
B. For outright export or temporary export;
C. Exported for outward processing; or
D. Imported for inward processing and whether it is duty free; or
E. Imported temporarily without payment of duties and taxes.

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

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

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 B. Goods for commercial advertising and samples, valued under USD 1,000;
C. 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;
D. Goods related with the security and defense of the country as per Directive No. 47/2000
EC;
E. 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.
F. Ethiopian Birr and foreign currency for outgoing passengers with the permission of the
National Bank of Ethiopia;
G. Goods for consumption of the staff of Ethiopian foreign Missions with the permission of
Ministry of Foreign Affairs; and
H. 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.

3.3 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 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;

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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.

3.4 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
 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;

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 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.

3.5 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

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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
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.

3.6 Cancellation of Declaration

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

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 A. 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;
B. 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 affected;
C. When the declarant is unable to pay the duty and tax
D. 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;
E. When goods are imported under one transport document and registered with more than
two or more customs branch offices;
F. When goods are imported under one transport document and registered twice by the same
declarant;
G. When the declaration is registered with incorrect declaration model or office code;
H. When the consignor/consignee’s name or tax identification number is incorrectly
registered;
I. When there is a mistake in registering a warehouse declaration;
J. 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;
K. 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.;
L. 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;

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 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.