WELCOME TO CUSTOMS

CLEARING AGENT TRAINING

September, 2019
 Chapter Four
Customs clearance Procedure
At the end of the training the trainee will expected to understand:
•Introduction about clearance
•Clearance of Goods Imported for Home Use
•Types Customs Clearance Procedure
•importing cargo customs clearance
•Simplified customs procedure
•Pre-arrival Clearance
•Customs clearance procedure of goods on transit-finished goods
arriving at their destination
•importing personal effect customs clearance
•travelers customs clearance
•Postal parcels customs clearance
•Cargo Exportation customs clearance
•Prohibited or Restricted Imports and Exports
•Unaccompanied Baggage
•Transit Travelers
•Inward and outward processing
 4.1 Introduction

customs clearance as “the accomplishment of the

Customs formalities necessary to allow goods to
enter home use, to be exported or to be placed
under another Customs procedure” and release as
“the action by the Customs to permit goods
undergoing clearance to be placed at the disposal of
the persons concerned.”
“prohibited goods” means goods of which the
importation, exportation or transit is prohibited by
Ethiopia law or international agreement ratified by
Ethiopia;
“restricted goods” means goods which the
importation, exportation or transit is restricted
unless it is permitted by the competent authority
in accordance with legal procedures;;
"Customs control" means the task of examining of
goods, verifying the documents fully availability
and their accuracy, assessing financial statements
and records promise made by the Authority to
ensure compliance with the laws and regulations;
controlled location in customs are
 Ports (harbor, air port, dry port, etc.),
 Boundaries,
 permitted Bond Warehouses,
 Temporary stores,
 Free zone, and
 transit lines
Cargo Importation According to Article 2(2) of the
Customs Proclamation 859/2006, “cargo” is any good
imported or exported by any means of transport other
than stores of means of transport (i.e. goods to be
consumed during the journey, such as spare parts or
food items) for commercial use and baggage of
travelers. Cargo import clearance procedure means the
accomplishment of the customs formalities necessary
to allow cargo to enter into the customs territory.
The bodies which are controlled by customs
 Ships
 Airplanes
 Vehicles and trains
 cargos
 Containers
 Postage packages
 Travelers
Release of goods:- The following goods can be given priority in
undergoing customs procedures, where the declarant applies to get the
service before/ after the goods enter to customs territory(dir.119/2008)
art.20
• Medicines;
• Inflammatory goods;
• Radiation emitting goods;
• Seeds;
• Live animals and chicken;
• Organisms destined for laboratory and examination;
• Inputs for export goods;
• Chemicals that pollute the environment;
• Current newspapers and journals;
• Foodstuff and fruits;
• Export goods;
• Authorized economic operators and special
customs service users;
• Goods and spare parts that are necessary for
regular operation of company and urgently needed;
• Relief cargo; and Other goods that are specified by
CC
“Examination of goods”:- refers to the physical examination
of goods by a customs officer to satisfy that the
 origin,
 country of export,
 nature,
 condition,
 quality,
 quantity,
 tariff classification and
 value of the goods are in accordance with the information
furnished in the goods declaration.
 This includes the examination of goods on the basis of
declarations by travelers..
The examination of goods by customs
commission is needed to ensure that goods to be
released are covered by a registered declaration.
For this purpose, customs commission may take
samples for examination and analysis The
declarant is entitled to be present when the
goods are examined or samples are taken;
provided, however, that if he fails to appear,
customs commission can proceed to conduct the
examination or to take the samples in the
presence of the warehouse operator.
The examination of goods may take place at:
• Customs premises;
• Government offices and companies premises;
• Warehouse or project site;
• Industry zones;
According to the Goods Examination Directives No. No. 119/2008, art. 12 the

following are eligible for examination outside of customs

premises: Eligible agencies and companies:
• Government agencies and government share
companies;
• Beneficiaries of export trade tax incentive schemes;
• Projects owned by federal and regional governments;
• Public or regional development associations; and
• Authorized Economic Operators.
 Eligible goods:
• Manufacturing raw materials, chemicals and inflammatory
goods;
• Fuel and fuel products;
• New vehicles, if imported in a quantity of twenty and above
at a time by one importer; also three wheel vehicles 40 and
above;
• Fertilizer, relief cereal and other bulk cargos;
• Mirrors of vehicles and buildings;
• Export consignments;
• Big factory machinery, investment goods and other goods
not convenient for examination at a customs station;
• Other goods can be allowed by the deputy branch manager.
The declarant must cover the costs incurred for the
examination of goods, such as
 the cost of transport of the goods to the place where
they are examined or samples are taken,
 the cost of taking samples and
 the cost of examination, as well as any expenses
related thereto.
Where the declarant considers the result of a partial
examination to be invalid as regards the remainder of
the goods, he/she can request further examination of
the goods and shall cover the expenses incurred by
such examination.
Prohibited or Restricted Imports and Exports
 No person may import, export or transit
prohibited goods.
 No person may import, export or transit
restricted goods unless in compliance with the
requirements of the restriction.
 PRINCIPLES OF CUSTOMS OPERATIONS
 promote a self-assessment system whereby importers and
exporters present the value of goods and pay duties and taxes
by themselves;
 be based on the principles of risk management,
transparency and accountability and create a conducive
environment to provide equitable, expeditious, predictable
and reliable services in the exercise of customs control;
 promote and support manufacturing industry and economic
development;
 provide clear information to the customers and be based on
the use of internationally accepted information technology
systems through which information is gathered, analysed, used
and stored in the course of cooperation and consultation
among concerned bodies;
prevent illegal practices by promoting self-compliance.
 GOODS DECLARATION

Declarant
 Any person having the right to dispose of the goods shall
be entitled to act as declarant, and shall be entitled to be
represented by a customs clearing agent.
 The declarant shall be held responsible for the
completeness and accuracy of the particulars given in the
goods declaration and the payment of the duties and taxes.
 Before lodging the goods declaration the declarant shall be
allowed, under such conditions as may be laid down in a
directive issued by the Authority, to inspect the goods and to
draw samples.
 A separate goods declaration shall not be required in
respect of samples allowed to be drawn, provided that
such samples are included in the goods declaration
concerning the relevant consignment .
 Forms of Goods Declaration
Goods declaration may be made in
 writing form,
 orally,
 by bodily action or
 electronically.
Goods declaration to be presented in written form and
electronically shall be filled and signed in the form
prescribed by the Authority and shall contain the
particulars only necessary for completing customs
formalities.
 Supporting Documents of Goods Declaration
On the presentation of goods declaration made in
written or electronic form, original copies of the
following supporting documents or electronic copies
shall be submitted as required by the Authority:
a) transportation document;
b) invoice;
c) bank permit;
d) packing list;
e) certificate of origin; and
f) other documents necessary to ensure compliance
with customs laws and prescribed by directives issued
by the Authority.
 Allowing Provisional Goods Declaration
 Where, for reasons deemed valid by the Authority, the
declarant does not have all the information required to make
the goods declaration, a provisional goods declaration shall be
allowed to be lodged, provided that it contains the particulars
deemed necessary by the Authority for the assessment of
customs duties and that the declarant undertakes to produce
final goods declaration within a specified period.

 If the Authority allows the presentation of a provisional

goods declaration, the tariff treatment to be accorded to the
goods shall not be different from that which would have been
accorded had a complete and correct goods declaration been
lodged in the first instance.
 MODELS OF DECLARATIONS
MODEL CODE GENERAL DESCRIPTION
PROCEDURE
CODE

EX 1 Permanent Export

EX 2 Temporary Export

EX 3 Re-Export

EX 8 Outward Transit

EX 9 Other Customs Export

Procedures
IM 4 Permanent Import

IM 5 Temporary Imports

IM 6 Re-Import

IM 7 Customs Warehousing

IM 8 Inward / Through / Inland Transit

IM 9 Other Customs Import Procedures

 PURPOSE OF THE CUSTOMS PROCEDURE CODES

 To secure the highest degree of harmony and

uniformity in Customs systems;
 To standardize, simplify and harmonize procedures
and documents
 To facilitate the exchange of data and information;
 Basis for the control of movement of goods;
 Facilitates the collection of statistics;
 Facilitates assessment and collection of revenue;
 Facilitates the targeting of consignments for
inspections and documentary check or other
regulatory controls when using Selectivity function
 EXTENDED PROCEDURE CODES (EPC)
The 4-numeric characters in an Extended Procedure
constitute the Model of Declaration numeric identifier,
Requested Procedure and the Previous Procedure.
The Model of Declaration is identified by the first numeric
character also known as the General Procedure Code.
The Requested Procedure is denoted by the first two
numeric characters while
The Previous Procedure is denoted by the 3rd and 4th
numeric characters of the 4-digit Extended Procedure
Code.
The Requested Procedure represents a specific Customs
procedure that the goods concerned should be entered
under.
The Previous Procedure represents any previous
Customs Procedure that the goods concerned would
have previously been entered under.
For example, when goods are entered for import into
a Customs Warehouse they would be entered under
Extended Procedure 7100;
where the 5 Model of Declaration is identified by 7
which falls under the IM group;
 Requested Procedure 71 denotes Warehousing;
and
 Previous Procedure 00 denotes that No Previous
Procedure is applicable.
When those same goods are removed from the
Warehouse for clearance for Permanent Import, the EPC
4071 would apply; where the
Model of Declaration is identified by 4 which falls under
the IM group;
Requested Procedure 40 denotes Permanent Imports
(Home Use); and
Previous Procedure 71 denotes that previously the goods
had been cleared into a Customs Warehouse.
 ADDITIONAL PROCEDURE CODES (APC)

The specific national needs such as Customs rebates and

other circumstances are handled by the next set of three
numeric characters known as the Additional Procedure
Codes (APC) or National Procedure Codes.
All APCs have to be based on, and fully aligned to, the
provisions of the national laws.. `
 Acceptance of Goods Declaration
1. A goods declaration shall be deemed to be accepted when the
declaration and supporting documents enumerated under sub-article
(1) of Article 10 of the Proclamation has been registered in the
customs database and verified by the Authority for completeness
and accuracy.
2. Verification of goods declaration shall be effected immediately
after its presentation.
3. Any error that makes goods declaration or supporting
documents incompelete or defective shall be rectified by the
declarant before having the goods declaration registered.
4. Errors committed, after presentation of goods declaration, with
fraudulent intent or gross negligence shall entail penalty in
accordance with this Proclamation.
5. When the Authority rejects the goods declaration, it shall
state the reasons to the declarant in writing.
 Amendment of Declaration(dir. 118/2008 art 17)
 The declarant may amend one or more of the particulars of
a goods declaration already presented; provided, however, that
such amendment may not have the effect of rendering the
declaration applicable to goods other than those originally
declared.
, Any amendment may not be made, unless authorized by the
Authority for good cause, after the Authority has informed the
declarant that it intends to examine the documents or goods or
it has established that the particulars are incorrect.
 Cancellation of Declaration

1. Where the declarant fails to proceed with the customs

formalities within five days after the presentation of a goods
declaration or after completion of the preparation of an
assessment notice, the goods declaration may be cancelled.
2. Goods declaration may be cancelled upon the request of the
declarant, where it is proved that the declaration has been
presented contrary to provisions of this proclamation or any
appropriate customs procedure and payment has not yet been
effected.
3. Notwithstanding the provisions of sub-article (2)
of this Article, the request for cancellation may
not be permitted after release of the goods.
4. The Authority may allow cancellation of the
goods declaration on good cause prior to the
payment of the duty and tax.
5. Allowing the cancellation of goods declaration
pursuant to this Article shall not exonerate the
declarant from a penalty that may be imposed in
accordance with this Proclamation.
 Clearance customs procedure-

• Customs clearance - the accomplishment of the

Customs formalities necessary to allow goods to
enter home use, to be exported or to be placed
under another Customs procedure and release as
the action by the Customs to permit goods
undergoing clearance to be placed at the disposal
of the persons concerned.
• Clearance customs procedure- it includes
 import clearance customs procedure and
 export clearance customs procedure
Import customs procedure includes
• Direct Entry for home use IM4
• Temporary Importation IM5
• Re-Importation IM6
Export clearance customs procedure includes
• Direct Exportation EX1
• Temporary Exportation EX2
• Re-Exportation EX3
 Clearance of Goods Imported for Home Use

• “Clearance for home use” is the Customs

procedure which provides that imported goods
enter into free circulation in the Customs territory
upon the payment of any import duties and taxes
chargeable and the accomplishment of all the
necessary Customs formalities.
• “Goods in free circulation” means goods which
may be disposed of without Customs restriction.
Imported goods that have completed the
necessary customs formalities and have been
released for free circulation are considered as
domestic goods.
 goods released for free circulation may lose this
status if:
• the goods declaration for their release for free
circulation is invalidated;
• they are imported for inward processing and treated
under the duty draw back or voucher scheme;
• they have to be re-exported because they are
defective or fail to meet the required standards; or
•they are re-exported or used only for the permitted
purpose and subject to drawback system.
The following steps must be completed to obtain
release for import cargo:
• Registration of the goods declaration. The goods
declaration that needs to be used for clearance of
direct imported goods for home use is IM-4;
• Assessment and payment of import duties and taxes,
if required;
• Submission of the goods declaration;
• Checking the goods declaration and supporting
documents;
• Acceptance or rejection of the goods declaration
(when rejected, correct and submit the causes of
rejection)
 The risk level

The risk level determination by customs commission

of the accepted goods declaration are:
Green: automatic release of goods;
yellow: verification of the goods declaration and
supporting documents;
Red: physical examination and verification of the
goods declaration and supporting documents;
Blue: automatic release of goods at the importer’s own premises);
Verification of the goods declaration and
supporting documents – this may include, in certain
cases,
 The verification of other legislative requirements
administered by other regulatory agencies (e.g.
veterinary, health, phytosanitary, etc.)
 The other concept is examination of the goods, if
required addressing any discrepancy as per the
administrative/criminal laws and directives.
Goods declared will be released as soon as they are examined by
customs commission.
Customs commission may also decide not to examine the goods
provided that:
• They are not subject to prohibition, or an offence has been
committed in relation to them;
• The conditions of placing the goods under the customs procedure in
question are fulfilled;

In the case of restricted goods, the permit issued by the appropriate

body pursuant to the relevant law is presented; and

Any applicable duties and taxes have been paid, or a security has
been furnished. customs commission may release goods upon
receiving a guarantee from the importer to secure payment of the
taxes and duties within a certain period of time; this period may not
exceed 12 month
The RKC refers to pre-lodgment and pre-registration in
Chapter 3 of the General Annex.
Where samples are taken and technical documents and expert
advice is required to determine duties and taxes, customs
commission may release the goods against security before the
results of such examination are known, provided that other
agencies approved the release of goods, if any.
Goods can also be released prior to the completion of
customs formalities under the following conditions:
 The declarant can subsequently accomplish all the custom
formalities;
 The declarant produces a commercial or official document
containing the main particulars of the concerned consignment
and is acceptable to customs commission; and
A security has been furnished, where required,
to ensure that customs commission can collect
any applicable duties and taxes. Furthermore, an
importer or his/her agent may submit a
declaration with supporting documents prior to
the arrival of the goods and may request for a
pre-arrival clearance to be issued upon
examination of the declaration and supporting
documents. This is comparable to the normal
clearance procedure except that the declaration
is submitted earlier.
Pre- arrival clearance is possible only when customs
commission does not undertake a physical
examination of the imported goods.
In cross-border trade transactions the clearance and
release of goods at the point of entry often create a
barrier to trade because of long delays.
The modernization of customs procedures so as to
expedite clearance and release, therefore, is an
important trade facilitation tool.
Accordingly, advance submission of information
allows for a release with little or no delay upon arrival.
All the goods covered by a declaration will be released
at the same time.
Some specific provisions exist for the treatment of goods imported for
home use, where the imported goods do not correspond with the
intended purpose or have been delivered in a different quantity(pro.
Art.26)
•If goods imported for home use cannot be used for the intended
purpose due to defect, error of consignment, or incompleteness, upon a
request by the importer customs commission may allow them to be re-
exported and replaced within one year from the date of importation
without additional payment of duties and taxes.
• If customs commission is convinced that the incompatible goods
cannot be re-exported before the replacement goods are imported, it
may allow the importation of the replacement goods without payment of
duties and taxes.
• However, the condition for this is that the importer submits a
guarantee for the re-export of the original goods within a certain period
of time or, if such goods cannot be used for any other purpose, delivers
them to customs commission.
If goods imported for home use are delivered in a
lower quantity stated in the goods declaration,
customs commission may allow, if it has sufficient
evidence, the remaining goods to be imported, or
refund the amount of tax and duties paid on the
remaining goods. In general, goods imported and
declared for home use can be re-exported under the
following conditions:
• The goods declared for home use are not prohibited
and their entry is not contrary to customs law;
• The importer requests to re-export the goods
declared for home use before completing customs
formalities; and
• 5% of the payable duties and taxes on the goods are
 Types Customs Clearance Procedure

In the new customs clearance procedure, different

procedures have been developed make the service
delivery and control system efficient and effective to
take into account the types and incoming of goods and
their suppliers, and the unique nature of importers and
exporters.
The Types Customs Clearance Procedure
 Importing cargo customs clearance
 Personal effect customs clearance
 Travelers customs clearance
 Postal parcels customs clearance
 Cargo Exportation customs clearance
Main functions to carry out the customs clearance procedure
 Ensure(checking) documents are provided fully
 checking the validation of tariff classification of
the goods
 checking the correct duty payable value (DPV)
of the goods
 Ensure the accuracy of the goods by physical
inspection(examination)
When a differences found in document assessment
and / or physical examination making a decision
based on administrative directives or forward to the
subsequent legal procedure
The new customs clearance procedure is mainly divided into
two they are;
1. A customs clearance procedure based on risk management
2. Simplified customs procedure
A customs clearance procedure based on risk management
when it is divided into two parts, we say:
1. Customs clearance procedure of goods on transit-finished
goods arriving at their destination; and
2. Pre-arrival customs clearance procedure;
 Making the service more efficient and accessible the
following things into consideration
1. Different Customs Clearance Units (CCU) have been
developed to implement customs clearance procedure
based on the importation and exportation of goods
 strategic importance,
 their contribution to income and
 their level of risk;
 Customs Clearance Units (CCU)
 Building, Construction and Chemical Unit (DCU)
 Automotive and Machinery(AMU)
Medical Equipment, Food and Pharmacological Goods (MES)
 Garment and Textile (GT)
 Electronics and Other Goods (EOG)
 Governmental and Non-governmental Unit (GNU)
 Personal Effect (PE)
 Investment Project (IP)
 Manufacturing and Export (ME)
 Manufacturing (MF) like 2nd schedule, export incentive scheme
2. The importance of implementing an electronic
release is of particular interest(emphasis),
3. It is important that importers and exporters and
shipping companies in connection with customs
procedure the way in which information is provided
and they get service electronically creating a way will
make the clearance procedure more efficient (Art.78),
4. Importers and exporters before the goods arrive
transmission of information of the goods In advance
by automation system to customs; based on this
information the clearance of goods is done online by
performing determination of risk level, calculation of
taxes and duties and others.
5. If it is physical examination goods, it is intended that the
clearance procedure will be made more efficient by providing
the information online to the importer to supply the goods
for inspection immediately upon arrival.
The following services have been exceptionally provided to
importers and exporters engaged in industrial and
manufacturer economic sector. Hosting a separate Customs
Clearance Unit (CCU) so that they can access accelerated
Customs Service, for example:
 Kaliti Customs Branch Office-10
 Addis Ababa Airport Customs Branch Office -10
 Adama Branch Customs Office-3
 Modjo Branch Customs Office-10
NB:-Number of Customs Clearance Unit (CCU) depending on:
Number of jobs, office, and number of employees….
6. By facilitating the customization of pre-arrival customs
procedure, complete the clearance procedure before delivery
and provide Suspended Release.
7. A system where most manufacturers deal with the lowest
level of risk and control by post-clearance audit;
8. Both goods and input imported by manufacturers to be
treated according to at market price (Invoice value);
9. The goods inspection service will be carried out at their
factory premises:
10. To obtain full customs clearance in the zone for
manufacturers or factories in the industrial zone;
11. Releasing their goods by issuing a letter of guarantee for
differences in the case of tariff classification, valuation and
other decisions;
12. Use of a simplified declaration and customs procedure;
13. Deffered payment
 Importing Cargo Customs Clearance Procedure

1 Simplified customs procedure

ERCA applies a “Simplified Procedure” for the release of
goods for free circulation based on limited declaration
information by using a simplified declaration
produced for this purpose.
The trader, subsequently, submits a detailed declaration
within the time limit prescribed by the law.
The Simplified Procedure is governed under the terms
of Articles 84-88 of the Customs Proclamation. Only
authorized persons are eligible to apply the Simplified
Procedure. An authorized person is a person selected
and registered upon fulfillment of CC’s criteria.
The following requirements have to be fulfilled to use the procedure:
• An authorization certificate issued by concerned authority;
• A security (General insurance bond); and
• A simplified declaration electronically completed and
submitted.
The beneficiaries of the Simplified Procedure are:
• Authorized manufacturers producing for export markets;
• Authorized manufacturers producing for the local market;
• Direct exporters; and
• Authorized Economic Operators (AEOs).
 Criteria for beneficiary of simplified customs procedures
A company or an organization to be beneficiary of
simplified customs procedure the following criteria
should be fulfilled;
1. The goods which is producing by using an imported
raw material need to be 30% of value additions;
2. Establish strong internal management and control
procedure; and
3. There is need of recorded data through automation
through checking the above criteria the certificate is
issued by ministry of trade
 Types of Simplified Procedures
Different types of simplified procedures exist; these refer to the
declaration of goods, clearance of goods, and self-assessment of duty
and tax liabilities.
A simplified procedure for the declaration of goods may include the
following:
•The release of the goods on the provision of the minimum information
necessary to identify the goods and permit the subsequent completion of
the final goods declaration;
•Allowing a consolidated goods declaration for all imports or exports in
a given period where goods are imported or exported frequently by the
same person; and
•Allowing the submission of a goods declaration by means of an entry
in the records of the authorized person to be supported subsequently by a
supplementary goods declaration.
•The simplified procedure for clearance of goods allows the clearance of
goods at the declarant’s business premises or another place authorized
by customs commission.
Finally, under certain conditions CC allows the use of the
authorized person’s commercial records to self-assess duty
and tax liabilities and, where appropriate, to ensure
compliance with other customs requirements.
Benefits of Simplified Customs Procedures- the Simplified
Customs Procedures has direct and indirect benefits
Direct Benefits;
 Easy and convenience to register declaration
 Pre-arrival clearance procedure can be used
 It provides fast service customs procedure
 Deferment of payment of import Customs duties and
Taxes.
It provide the controlling and examination service at
domicile of the company
 It provide priority controlling and examination service
 Indirect benefits
•It minimize the lapse time of the loading and
unloading of cargo
•To increase the ability to lead by planning
•It minimize the crime at the movement of goods
•It facilitate trade among countries
•It strengthen partnership among countries
 The beneficiaries of the Simplified Procedure
1. Authorized manufacturers producing for export market
(producer exporter)
Means a person engaged in producing any commodity by
importing raw material which used to produce the commodity
and supplying at least 50% of their commodity to foreign
market and they got hard currency.
2. Authorized manufacturers producing for the local market;
Means a person engaged in producing any commodity by
importing raw material/ use of local raw material which used
to produce the commodity and supplying same in whole, in
part to foreign market; and used as import substitution.
 3. Direct exporters
Means a person engaged in producing agricultural
commodity by importing raw material which used to produce
the commodity and supplying commodity to foreign market;
and used as a source of hard currency.
4. Authorized Economic Operators(AEOs)
AEO is a major element of the risk management strategy of
the customs commission. Under this program economic
operators who are assessed as highly compliant would be
given assured facilitation by the RMS.
One of the stated objectives of CC as expressed in its Vision
document is to create a climate of voluntary compliance.
Such a climate can be created only by developing a
relationship of trust between the Authority and its economic
operators.
• With this goal in view the AEO has been designed to
provide recognition and the incentive of facilitation
to economic operators who maintain high levels of
compliance. When a sufficient level of compliance
will be confirmed, then the import consignment of
AEO will also not be subjected to examination at
the time of clearance. In short the AEO will enjoy
an assured self-assessment in respect of importers.
 2. Pre-arrival Clearance

Pre-arrival Clearance procedure is a one of

customs procedure which the importer before the
arrival of the imported goods to customs station
they present electronically document which is
used for customs clearance and based on the risk
management system goods arrive at the final
destination before transit is completed or as
soon as it arrives they get customs clearance are
given then the goods are released.
The beneficiaries of this system are the following
Goods And Special Importers.
 1. Depending on the type and nature of the goods
According to the WCO policy, the types of items that are allowed to be processed in
this fast-customs clearance the types of goods they are divided into four
categories.
A. correspondence and document
As long as they do not have a commercial nature, they can be released immediately
through shipping documentation or at customer request.
B. They are low-cost items and are tax-free
The goods may release immediately upon if FOB value of the goods not exceeding
the specified amount which stipulates on the directives (up to $ 300 in other
countries).
C. Low-cost but tax-deductible items (payment of tax and duties)
The payment of taxes and duties not exceeding the specified dollar amount which
stipulates on the directives (allowed up to US $ 1,000 in other countries) may be
handled by this system when a simplified declaration is delivered (filled) before or
after delivery goods.
D. Highly valuable items
Specialized importers they bring valuable goods, may be released before goods are
delivered in accordance with the risk management system when the goods
information is submitted to Priority the customs and the appropriate tax and duties is
paid or the appropriate guarantee is provided.
The document will be closed within a certain period of time after the item is
 2. In Terms Of Imports
A. Goods importing by a postal organization
Enterprises before goods are imported providing electronic information
or customs declaration to the customs to accomplish a Pre-documented
assessment after the depending on the nature of the item, a decision to
release it can be made. Under this system, the Ethiopian Post
Corporation and other instant messaging organizations will benefit from
'curious'.
B. Goods importing by select importers
Importing any valuable item importers mentioned below before the
goods are imported if you are able to provide the documents
electronically to the Customs which is necessary for the execution of
customs clearance procedure and if approved, you can access the Pre-
arrival Clearance system before the goods arrive. The importer for this
system must meet the following criteria.
Any government agency
An organization that are beneficiary of simplified customs procedure,
and Any importer beneficiary of the multimodal transport system.
 Prerequisite for the Beneficiary of Pre-Arrival Clearance
While the above importers beneficiary of the Pre-arrival
Clearance system to get the final goods release they have to
get registered with System and assessed declaration as well as
the availability of documents necessary for the execution of
customs clearance procedure they must, however, meet the
following conditions:
 Completing transit;
 Certification from regulatory agencies if it is a controlled
goods;
 Original customs documents that are necessary for customs
clearance procedure which is accepted by customs(Until a
single window service is implemented);
 The goods examination result is high (red) risk level; and
 If the goods is a taxable goods and evidence payment of tax
and duties
 3. Customs clearance procedure of goods on transit-
finished goods arriving at their destination
Customs clearance procedure of goods on transit-
finished goods arriving at their destination- After the
delivery of goods to their destination and completing
transit, customs clearance is done according to the
risk management system in which the goods are
processed and released.
In this system, transit completion is a pre-requisite, but
the importer or agent can perform
 Register declaration through automation system;
 Self assessment of taxes and duties; and
 Making payment before the goods arrive.
Most commodities that are transported by Unimodal Transit and non-
pre-arrival systems will be hosted under the Risk Management System.
The manufacturer selected to be specially treated at the lowest risk
level must meet the following criteria:
 Manufacturers who supply their products to foreign markets
 Manufacturers producing products that replace foreign products(import
substitution)
Prerequisites
 Transit Completion
 Electronically provided systematic registered and assessed
declaration as well as documents necessary for customs clearance
procedure( up to implementation of a single window service),
 Systematically registered and assessed in-person provided declaration
as well as the original documents necessary for the execution of
customs clearance.
 Where taxes and duties are paid or proof of rights,
Basic changes in the new customs procedure are- the service
is divided into three types
 Standard(normal) service
 Pre-arrival customs clearance of goods
 Simplified customs clearance procedure
Providing service delivery in terms of government strategy,
risk management and income.
 That the release of goods is separate from the clearance of
the goods
 Due to the adoption of information technology, including
any customs clearance, it reduces the time and cost of the
customer and the commission;
 Developing a Dual Channel Release System for International
Travelers and Fate Rate Consideration
 4 Non-commercial Goods and Personal Effects

Non-commercial goods are goods intended for the

personal or family use of the consignee or persons
carrying them or that are clearly intended as gifts.
Personal effects are articles that a traveler may require
for personal use.
The aggregate value or quantity of non-commercial goods
or personal effects may not exceed the amounts laid
down in Ministry directives.
Flat-rate duties and taxes are applied to non-commercial
goods imported or exported by travelers. The flat rate is
applied on the goods in excess of the aggregate value or
quantity prescribed by directive.
Fundamental change in Customs Clearance of Personal Effects

The fundamental change in this process is by using the

“single window" in which the process is handled differently:
 goods examination;
 assessment; and
Taxes and duties as well as warehouse fees to be
paid in one place
Personal Effects Customs Clearance Prerequisites
 Shipping Document
 5 POSTAL Parcels
• The movement of goods by post has been one of the most
widely used methods to import or export small items like
sample, gifts, etc.
• According to the Customs Proclamation, postal parcels
imported and exported thus are subject to customs control.
• The RKC provides for specific customs procedures in respect
of postal items. According to the Acts of the Universal Postal
Union certain letter post items are required to be
accompanied by a customs declaration form CN22/CN23 as
appropriate.
• Any authorized postal services provider must report to the
customs office by means of a manifest or in any other
approved manner all goods arriving or departing through the
postal system and to present such goods to a customs officer
Any form completed by the sender, label affixed or supporting
documents produced in respect of goods imported or to be exported
through the postal system are considered as an acceptable declaration
for the purpose of customs formalities provided that:
 Import and export via the post office are monitored by customs.
 No goods can be imported or exported through a post office without
customs formalities; unless
1. the goods have a value not exceeding the value determined by
customs commission
2. Import or export does not require certification by a regulatory
agency; and
3. the imported goods need not be placed under a different procedure
other than the customs procedure applicable to goods for home use
if goods imported or to be exported through the postal system do
not meet all of these three conditions, a separate goods declaration
is required. The collection of duties and taxes for goods imported
and exported through the postal system may be delegated by CC to
postal service providers.
The Postal parcels of the customs procedure is set up
in the following three categories:
1. Where they are not subject to payment of taxes and
duties as determined by law the value of the goodS are
low (< $1000) no restrictions and prohibition gifts,
business samples, personal items, etc.
2. Where they are not subject to provided declaration
as determined by law but subject to payment of taxes
and duties and no prohibition goods etc; and
3. Where they are subject to provided declaration,
subject to payment of taxes and duties and no
prohibition goods etc;
Prerequisites Postal parcels customs procedure
• Declaration of goods received by postal
organization,
For the sake of declaration
• A statement of payment prepared declaration,
• Invoice for taxes and duties payment
•Invoice,
•Bank permit,
•Authorization of Supervisory Offices (as required)
 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

1. No person may import, export or transit prohibited goods.

2. No person may import, export or transit restricted goods unless in

compliance with the requirements of the restriction, which must

not be imported into, exported from, or transited through Ethiopia.

Examples are illicit narcotics and drugs or worn clothes.

Secondly, 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
Prohibited (CITES)

Species threatened with extinction

-International trade is generally
Seizure by Customs
 6. Travelers
• A traveler is a person who enters or leaves Ethiopia, regardless
of whether he/she is a domiciliary of Ethiopia.
• Every traveler entering Ethiopia has to pass through customs.
• A traveler may be permitted to make an oral declaration in
respect of the goods he/she carries.
• However, a written or electronic declaration is required for
goods constituting an importation or exportation of a
commercial nature.
• CC has adopted a two channels system for the purpose of
customs clearance of travelers: the Green and the Red Channel.
According to the Customs Proclamation, travelers can make a
clearance declaration in the form of bodily action by choosing
 In current practice, customs commission streams flights either
green or red, depending on the risk assessment.
An authorized person can be a clearing agent or any person
who has power of attorney. Not yet implemented. being
carried:
Green Channel is for passengers who have neither dutiable
goods nor goods which are subject to import prohibitions or
restrictions;
Red Channel is for passengers having dutiable goods and/or
goods which are subject to import prohibitions or restrictions.
Goods declaration provided by travelers
 Any traveler may be allowed to provide a verbal
declaration for the goods he owns,
 The goods contained are of commercial nature and must be
declared in writing or by electronic means,
In order to provide efficient service and effective
monitoring, the following basic considerations have
been considered:
•Prior to arrival of the traveler received 'advance
passenger information via electronic ' from carrier,
which is an international standard
•Implementation of risk management (Low, Medium
or High),
•Ensure that the passenger and the baggage are
transmitted through the designated route and exit.
•Before the passenger baggage is transported to a
luggage depot, perform a thorough inspection and
monitoring of trained dogs and x-ray equipment as
well as security cameras.
•Travelers are provided with access to advance
information in at least two languages, both in
Amharic and English (859/2014, Article 35).
•As a two-way (red and green) channel, where a
passenger with not taxable goods and a passenger
with taxable goods will be treated separately through
physical and oral declaration,
•Implement flat rate for low value dutiable goods
,easy- to- use and standardized goods
•There is need of implementation in the absence of
an invoice for the purchase of dutiable passenger
baggage, unlike other commercial goods, where
prices are valued differently.
 Unaccompanied Baggage and Transit Traveler

Unaccompanied Baggage

Unaccompanied baggage, i.e. baggage arriving or leaving before or

after the traveler, can be cleared under the procedure applicable

to accompanied baggage or under another simplified customs

procedure.

Thus, according to Article 32(2) of the Customs Proclamation, any

authorized person may present unaccompanied baggage for

clearance on behalf of the traveler.

 Transit Travelers
Transit travelers not leaving the transit area are not
required to pass through any customs control.
However, customs commission may maintain general
surveillance of transit areas and take any action necessary
when a customs offence is suspected.
 Cargo Exportation

Types of cargo exportation

1. Outright exportation /Direct Exportation/

2. Temporary Exportation

3. Re-Exportation
 1. Outright exportation /Direct Exportation/
Outright exportation is the customs procedure whereby goods
in free circulation leave the customs territory and are intended
to remain permanently outside it. The following formalities
must be completed for the outright exportation of cargo
(goods):
• Registration of the goods declaration. The goods declaration
used for clearance of outright exported goods is EX-1
• Assessment and payment of export duties and taxes, if any;
• Verification of goods declaration and supporting documents
– which includes the verification of other requirements RKC
Specific Annex C1 administered by other regulatory agencies
(e.g. veterinary, health, phytosanitary, etc.); and
• Examination of the goods, if required
 2. Temporary Exportation
Temporary exportation is the exportation of goods that the
declarant specifies as intended for re-importation.
To facilitate the re-importation at a later stage, Customs may
take identification measures on the goods.
In Ethiopia, temporary exportation may be authorized for the
following goods and purposes:
• vehicles, equipment and machinery taken out by a person for
the purpose of carrying out his work abroad;
• Goods exported for trade fair, exhibition or cultural show.
The goods declaration used for the clearance of temporarily
exported goods is EX-2.
•The temporary exportation procedure may be terminated by
declaring the goods for outright exportation, subject to
compliance with the conditions and formalities applicable to
this.
 •Re-exportation
Re-exportation is the exportation from the customs territory of
goods previously imported into that territory. There are often
occasions where imported goods may have to be exported
again. Such situations arise where the import goods are found
defective after customs clearance or are not in accordance with
specifications or requirements of the consignee. Goods are
also often temporarily imported for the purposes and are then
subject to re-exportation upon the completion of the intended
objectives.
The following conditions shall be fulfilled to re-export
goods imported and declared for home use:
•The goods are not prohibited, and their entry is not contrary
to customs law; and
•The importer requests the customs office of entry to allow
re-exportation before completing customs formalities upon
payment of 5% of the duties and taxes to be paid on the
goods.
For temporarily imported goods, re-exportation is allowed
if the following conditions are met:
 Within the specified period the importer has submitted a request
to the customs office of entry to allow the re- exportation; and
 Duties and taxes are paid on the depreciated values of
temporarily imported goods upon their re-exportation based on the
tariff currently applicable. The goods declaration used for the
clearance of goods to be re-exported is EX-3.
 Pre-Condition
1. Outright Exportation /Direct Exportation/
With registered export transit declaration
 track manifest
 invoice;
 bank permit;
 certificate of origin; and
 other regulatory agencies
With registered export clearance declaration
 Bill of loading or Airway bill
2. Temporary exportation
With registered export transit declaration;
bank permit;
 packing list; and
 Track Manifest
With registered export clearance declaration
 Bill of loading or Airway bill
3. Re-exportation
With registered export transit declaration;
 packing list
 other concerned regulatory agencies written letter/may or
may not; and
 Track Manifest
With registered export clearance declaration-
Bill of loading or Airway bill
In order to provide efficient service and effective monitoring,
the following basic considerations have been considered:
 Outline(separate) transit procedure and clearance
procedure clearly
 The export of transit procedure based on the risk
management system;
 For the selected exporters, a transit permit has been set up
before loading the goods,
 Ensure that the examination of the goods is carried out by
the sender premises.
 The export document will be closed to ensure that the goods
are properly exported since the bill of loading is provided for
the goods are shipped by ship or aircraft.
 There must be a mechanism for obtaining a transit permit
from the exporter warehouse for export goods.
Control over the customs clearance procedure
 Undertake post-clearance audit based on risk
management systems;
 In a data-driven manner (based on information) do
an emergency(surprise) check,
 Effective use of modern information technology for
regulatory(controlling) action they are the main on
 Inward and outward processing

• Inward and outward processing refer to the temporary

importation and exportation, respectively, of goods for
manufacturing or processing and the exportation and
importation, respectively, of compensating products resulting
thereof.
• Inward and outward processing are governed under the terms
of Articles 65-67 of the Customs Proclamation, and the Export
Trade Duty Incentive Schemes Proclamation No. 768/2012.
• Importantly, authorization is required to import/export or
receive inward/outward processing goods to be eligible for duty
relief. Authorizations are issued by customs commission to the
person processing the goods.
 Inward Processing
Inward processing provides benefits to Ethiopian
manufacturers in order to promote exports from
Ethiopia and create a conducive environment for
domestic products to become competitive in
international commodity markets. It is based on the
temporary importation of goods into Ethiopia for
processing as per the export duty incentive schemes.
 Outward Processing
Outward processing allows the temporary export of goods for
manufacturing/processing and repairing abroad. Outward
processing works based on temporary exportation procedures.
Individuals, partnerships or corporate bodies established in
Ethiopia can use it.
Compensating products resulting from the manufacturing or
processing goods temporarily exported should be re-imported
within a year from the date of the temporary export of the
goods. However, customs commission may authorize an
extension where necessary.
Outward processing can be terminated after temporary
exportation by declaring the goods for outright exportation
subject to compliance with the conditions and formalities
applicable to the exportation of goods.
 Temporary Importation and Re-Importation
• Temporary Importation
• Temporary importation takes place when goods enter a customs territory for a
limited period of time and are then removed from the territory again, unchanged,
and without any duty liability arising.
In Ethiopia, goods necessary for the following purposes may be imported
temporarily:
 Trade promotion;
 Technology transfer;
 Tourism and cultural exchange;
 Construction works;
 Consultancy services; or
 Relief may temporarily be imported
 Spare parts and other consumable goods are not allowed to be imported
temporarily. The goods declaration used for clearance of temporary imported
goods is IM-5.
CC may refuse to authorize the use of the temporary
importation procedure where it is impossible to identify the
goods.
However, CC may nevertheless allow temporary importation
where, in view of the nature of the goods or of the operations
to be carried out, the absence of identification measures is not
liable to give rise to any abuse of the procedure.
Once CC has authorized temporary importation and received
a security, goods may temporarily be admitted duty and tax
free, subject to their re- export.
Nevertheless, duties and taxes must be paid on the depreciated
values of temporarily imported goods upon their re-export,
based on the tariff currently applicable . Temporary
importation pursuant to these reasons may also be granted to
goods already placed under another customs procedure.
Temporarily imported goods can also be used locally
by paying duty and tax when it is approved by the
Ministry. Furthermore, customs commission may
permit the transfer of temporarily imported goods for
construction works or consultancy services, within the
authorized period, to other duty free right holders with
respect to similar goods.
The time limit for temporarily imported goods to stay in
Ethiopia depends on the purpose of the temporary import, as
follows:
a. Goods for tourism, cultural exchange or technology
transfer: six months;
b. Goods for trade promotion and welfare services
purposes: two months from the date of completion of the
trade promotion or welfare service;
c. Goods for construction works, consultancy services, and
welfare services or as per a project agreement: these goods
must be re- exported within the period specified in the
project agreement or within three months after the
completion of the project or welfare services.
CC may extend the time limit if the importer provides an
acceptable justification for why the goods cannot be re-
exported within the specified time.
If temporarily imported goods are not re-exported within the
specified time limit, the security provided will be transferred
to the Government and the goods may, upon the completion of
the appropriate customs formalities, remain in the country or
be re-exported.
If temporarily imported goods cannot be re-exported as a
result of a seizure, other than a seizure made at the request of
private persons, the requirement of re-exportation will be
suspended for the duration of the seizure. The temporary
importation status may be terminated by declaring the goods
for outright importation. In this case, the goods will be subject
to compliance with the conditions and formalities applicable
to the importation of goods.
 Re-Importation
Re-importation is the importation into a customs territory of
goods that had previously been exported from the territory.
Goods exported temporarily by completing customs
formalities for the following reasons may be allowed to re-
enter the country without payment of duties and taxes:
• vehicles, equipment and machinery taken out by a person
for the purpose of carrying out his/her work abroad;
• goods exported for trade fairs, exhibitions or cultural shows;
and
• defective goods that are re-exported. Goods may be eligible
for duty exemption only if returned from abroad within one
year, unless a longer period is specified in a directive issued
by Ministry. The goods declaration used for clearance of re-
imported goods is IM-6.
 Discussion question
1. What is "Customs control mean? List down the controlled
location in customs?
2. What is Inward and outward processing and what will be the
payment of taxes and duties?
3. What is Temporary Importation in which case goods are
imported temporarily and what will be the payment of duties
and taxies?
4. after the customs clearance procedure completion how
customs control over the goods
5. List down types of cargo exportation and explain when we use
6. What is traveller ? How to declare explain in detail ?
7. The Postal parcels of the customs procedure is set up in different
ways what are this? explain how to declare and pay their taxes
and duties
8. What are goods can be given priority in
undergoing customs procedures, where the
declarant applies to get the service?
9. List forms of declaration and in which case we use explain it
briefly?
10. What is postal parcel and what will be the procedure we follow
to cleare the good from customs?
11. What is pre-arrival clearance mean? And what the
beneficiaries of this system ?

12. what are Main functions to carry out the

customs clearance procedure
13. What is declaration? Explain breifly its
amendment and cancellation
QUESTIONS?
THANK YOU