International Trade

and

Trade Service

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Commercial Bank of Ethiopia - TS Advisory and Training
International Trade

Trade Service

IMPORT
Training material Prepared by Advisory and Training Team, November 2011

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Commercial Bank of Ethiopia - TS Advisory and Training
WELCOME TO TRADE SERVICE
SEMINAR CONDUCTED BY CBE

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Commercial Bank of Ethiopia - TS Advisory and Training
 INTRODUCTION
As you all know Commercial Bank of Ethiopia, is one of a
government banks, which plays a leading role in banking
economy. Currently it has more than 430 branches all over
the country and completed the BPR and moved to the second
phase.

This seminar is launched to fill the gap which is currently

seen while checking the import documents. As you all know
that time elapsing correcting the document will cause
delay of the required import which may cause delay of the
use of the item by different users' as raw material ….say
manufacturing industries

We hope you will gain more from this seminar and be well
informed about the trade service products which our bank
is currently providing. You as the well informed customer
will be able to add on what you have and hope we both will
mutually benefited from this seminar.
Thank you

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Commercial Bank of Ethiopia - TS Advisory and Training
 መግቢያ
እንደሚታወቀው የኢትዮጵያ ንግድ ባንክ በአገሪቱ ካሉት የመንግSት
ባንኮች አንዱ ሲሆን በባንክ ዓለም ለይ ዋናውን ሚና እየተጫወተ
የሚገኝ ባንክ ነው:: በአሁኑ ጊዜ በመላው አገሪቱ ከ430 በላይ
ቅርንጫፎች ያሉት ሲሆን የመQረታዊ የአሰራር ለውጥን በብቃት
አጠናቅቆ ወደሚቀጥለው ደረጃ የደረሰ ባንክ ነው ::

ባንኩ ይህን ሴሚናር ያዘጋጀው በገቢ ንግድ ላይ የተሰማሩ ደንበኞቹን

ሰነድ ሲመረምር የታዩ ክፍተቶችን ለመዝጋት እንዲያስችል በማሰብ
ነው:: እንደምታውቁት የገቢ ንግድ ሰነዶችን ለማረም የሚጠፋው ጊዜ
የዕቃውን አገር ውስጥ መድረሻ ጊዜን ስለሚያጓትት ዕቃውን ለግባት
ለሚጠቀሙ ድርጅቶች ችግር ይፈጥራል :: / ማምረቻ ድርጅቶቸ:
የተለያዩ ፋብሪካዎች….

ከዚህ ሴሚናር ደንበኞቻችን ባንካችን ስለሚሰጣቸው አገልግሎቶች

የተሻለ ግንዛቤ ይጨብጣሉ ብለንም እናምናለን:: ለእናንተም ባላችሁ
የባንክ የአሰራር ዕውቀት ላይ ለመጨመር የሚያገዛችሁና ለወደፊትም
በብቃት አብረን ለመስራት የሚያስችለንን ዕውቀት
እንደሚያስጨብጣችሁ
Commercial Bank ofሙሉ እምነት
Ethiopia አለን::
- TS Advisory and Training 5
 Table of content
Page No
• Introduction 4
• International Trade 10
• International Trade Facilitators 12
• Trade Service 14
• Trade Service Products definition, advantage
and disadvantage of each mode of payment 16 - 42
Documentary/Letter of Credit 18,20,22
• Documentary Collection 24,26
• Advance Payment 28,30
• Consignment Sales 32.34
• Franco Valuta permit 36
• Small items Export Permit 38
• Guarantee 40
• Foreign Transfer 42
• Regulatory Guidelines 44-45
• Requirement (to International Trade) 46
• Additional Requirement 48
• How to proceed… 50
• Pro forma Invoice 52
• Pro forma Invoice Content 54 6
Commercial Bank of Ethiopia - TS Advisory and Training
 ማውጫ
ገጽ
መግቢያ 5
አለም አቀፍ ንግድ 11
የአለም አቀፍ ንግድ አስተባባሪዎች 13
የዓለም አቀፍ ንግድ አገልግሎት 15
የንግድ አገልግሎት ክፍሉ የሚሰጣቸው አገልግሎቶች ትርጉምና ጠቀሜታ 17 -
43 የመተማመኛ Wነድ
19,21,23
Wነዶችን ለክፍያ መላክ 25,27
ቅድሚያ ክፍያ 29,31
ያለምንም ክፍያ ወይም ዋስትና ዕቃን ለሽያጭ ለወኪል መላክ 33,35
ያለውጭ ምንዛሪ ክፍያ ለሚገባ ዕቃ የሚሰጥ ፈቃድ 37
ወደውጭ የሚላኩ አነስተኛ ዕቃዎች ፍቃድ 39
የዋስትና ሰነድ 41
የወጪ አገር ሀዋላ አገልግሎት 43
ለዓለም አቀፍ ንግድ መሟላት የሚገባቸው
47
• በተጨማሪ መሟላት የሚገባችው 49
• እንዴት ይቀጥሉ 7
51 Commercial Bank of Ethiopia - TS Advisory and Training
 Table of content
Page No
• Required Documents under Letter of Credit 56
• Required Documents under Documentary Collection 58,60
• Required Documents under Advance Payment 62
• Amendment 64,66
• Applying for Amendment 68
• Exercise on sample Letter of credit 70
 Pro forma Invoice 71
• Foreign Exchange Application 72
• Letter of credit Application 73
• Sample Letter of Credit 74-78
 Purchase Order 79
 Guarantee 80
 Direct/without/Guarantee 82
 Indirect/with/Guarantee 84
 Types of Guarantees 86,88
 Guarantee in relation to International Trade 90
 Precaution on Letter of guarantee 92
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 AnnexesCommercial Bank of Ethiopia - TS Advisory and Training 95 -101
 ማውጫ ገጽ
• በመተማመኛ Wነድ (L/C) ለማስመጣት መቅረብ ያባቸው Wነዶች
57
 Wነድን ለክፍያ በመላክ ዘዴ (CAD) ለማስመጣት መቅረብ
ያለባቸው Wነዶች 59,61
• በቅድሚያ ክፍያ ለማስመጣት የሚቀርቡ Wነዶች
63
• ማስተካከያ 65,67
• ማስተካከያ ለማድረግ ጥያቄ ማቅረብ
69
• የዋስትና Wነድ 81
• በቀጥታ የሚሰጥ ዋስትና
83
• ቀጥታ ያልሆነ ዋስትና 85
Commercial Bank of Ethiopia - TS Advisory and Training
• የዋስትና ®ይነቶች
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87,89
 International trade
Exchange of goods and services cross-frontier
(between several political economics) and flow
of goods from seller to buyer in accordance
with the contract of sale and the consequential
flow of payment from buyer to seller.

Payment

Buyer Sales Contract Seller

Shipment
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Commercial Bank of Ethiopia - TS Advisory and Training
 ®ለም አቀፍ ንግድ
በሁለት የተለያዩ አገራት የሚደረግ የንግድ ልውውጥ
የሚካሄድበት ሂደት ሲሆን፣ የየአገራቱን ወጪና ገቢ ንግድ
ፓሊሲን ጨምሮ፣ በ®ለም አቀፍ ንግድ ምክር ቤት ሕጎችና
ደንቦች (ICC Regulations) እንዲሁም እንደየአገራቱ
ባንኮች ሕግና ደንብ የሚስተናገድ ነው:: ይህ ንግድ በገዢና
ሻጭ መካከል በተደረገ የንግድ ስምምነት መሰረት ከሻጭ ወደ
ገዢ የሸቀጥ ፍሰትና እንዲሁም ከገዢ ወደ ሻጭ ክፍያ
መፈጸሙን ይከታተላል::
ክፍያ

ገዢ ኮንትራት/ የንግድ ስምምነት ሻጭ

ጭነት
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Commercial Bank of Ethiopia - TS Advisory and Training
 International Trade Facilitators
International trade facilitators are the essential bodies needed to
smooth the flow of goods and payments between buyers and sellers.
As the nature of the trade needs special attention the role played by
these facilitators are of great importance. They are categorized as:-
Financial Institution
• Banks
– Facilitates payment, avails finance and gives professional advice
• Insurance
– Gives cover to different types of risks involved in the trade

Transport Companies
• Airlines
• Shipping lines
• Courier service
• Postal office
• Land and rail way transport companies
Agents
• Clearing Agent/Forwarding Agent
• Commission Agent that identifies markets
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Commercial Bank of Ethiopia - TS Advisory and Training
 የ®ለም አቀፍ ንግድ አስተባባሪዎች
በ®ለም አቀፍ የንግድ ®ለም የንግዱን ፍሰት የሚያመቻቹ
አስተባባሪዎች መኖራቸው አስፈላጊ ነው:: እነሱም

– የገንዘብ ተቋማት
• ባንኮች ክፍያ ማመቻቸት: ብድርና ሙያዊ ድጋፍ መስጠት
• የኢንሹራንስ ድርጅቶች - የተለያዩ የዋስትና ሽፋን መስጠት

– አጓጓZ ድርጅት
• አየር መንገድ
• መርከብ ድርጅት
• መልእክት አገልግሎት
• ፖስታ አገልግሎት
• የየብስና የባቡር አገልግሎት

― ወኪሎች
• አውጭና/አስተላላፊ ( የጉምሩክ ፎርመሊቲ ማማላት)
• ገበያ አፈላላጊ ወኪሎች
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Commercial Bank of Ethiopia - TS Advisory and Training
 Trade Service
• The major business of Commercial Bank of
Ethiopia that targets the international trading
society of the country. It mainly focuses on
facilitation of payments and
mitigation of risks associated with
international trade through a process
that is compatible with customers’ needs and
international standards

Commercial Bank of Ethiopia - TS Advisory and Training 14

 የዓለም አቀፍ ንግድ አገልግሎት
• ከኢትዮጵያ ንግድ ባንክ ዋና የሥራ ሂደቶች
አንዱ የሆነው የዓለም አቀፍ ንግድ አገልግሎት
የሥራ ሂደት፣ ዓለም አቀፍ ንግድ ማለትም
የገቢና ወጪ ንግድ፣የዋስትና እንዲሁም የገቢና
ወጪ ሀዋላዎች አገልግሎትን በዋናነት
ይሰጣል፡፡

• ይህ ክፍል ክፍያን እንዲሁም ክፍያን

አስመልክቶ በንግድ አገልግሎት ላይ ሊከሰቱ
የሚችሉ ችግሮችን ለመከላከል ይሞክራል ፡፡
Commercial Bank of Ethiopia - TS Advisory and Training 15
 Trade Service Products
• Documentary Letter of Credit
– Import - available by sight/negotiation/deferred * /acceptance *
– Export - available by sight/negotiation/acceptance
• Documentary Collection
– Import - available by sight payment
– Export - available by sight payment /acceptance payment
• Cash in Advance
– Import
– Export
• Consignment Basis Payment
– Export
• Franco Valuta license
– Import
• Small Items Export Permit
– Export
• Guarantee
– Bid Bond, Performance Bond, Advance Payment ….
• Foreign Transfer (Incoming and/or outgoing)
– Export
* If approved by NBE
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Commercial Bank of Ethiopia - TS Advisory and Training
 የንግድ አገልግሎት ክፍሉ የሚሰጣቸው
አገልግሎቶች
 የመተማመኛ Wነድ (Documentary Credit)/
(L/C)
 Wነዶችን ለክፍያ መላክ (Documentary
collection )
 ቅድሚያ ክፍያ (Advance payment)
 ያለምንም ክፍያ ወይም ዋስትና ዕቃን ለሽያጭ
ለወኪል መላክ
(Consignment basis payment)
 ያለውጭ ምንዛሪ ክፍያ ለሚገባ ዕቃ የሚሰጥ
ፈቃድ
(Franco Valuate permit)
 ወደውጭ የሚላኩ አነስተኛ ዕቃዎች ፍቃድ
(Small Item Export Permit) 17
 የዋስትና ሰነድ
Commercial Bank of(Guarantee)
Ethiopia - TS Advisory and Training
Documentary/
Letter of Credit

• Undertaking issued by a bank in

favor of a beneficiary by which the
bank substitutes its
creditworthiness for that of the
applicant by promising to honor
(pay) if the document specified in
the letter of credit are timely
presented
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Commercial Bank of Ethiopia - TS Advisory and Training
 የመተማመኛ Wነድ
(Documentary Credit)
• በገዢ ጥያቄ መሰረት የሚዘጋጅና በመተማመኛ
Wነዱ ላይ የተጠቀሱት Wነዶችና ሁኔታዎች በሙሉ
ተሟልተው በተጠቀሰው የጊዜ ገደብ ሲቀርቡ የገዢ
ባንክ ለሻጭ በWነዱ ላይ የተጠቀሰውን የገንዘብ
መጠን ለመክፈል ግዴታ የሚገባበት Wነድ ነው፡፡
– ገቢ ንግድን በተመለከተ Wነድ እንደቀረበ ወይም/
ወደፊት የሚከፈል*
– ወጪ ንግድን በተመለከተ Wነድ እንደቀረበ ወይም ወደ
ፊት የሚከፈል
• * የኢትዮጵያ ብሔራዊ ባንክ ሲፈቅድ ብቻ
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Commercial Bank of Ethiopia - TS Advisory and Training
Documentary/
Letter of Credit

As per UCP 600 define:

• Documentary credit means any arrangement,

however named or described, that is irrevocable
and there by constitutes a definite undertaking
of the issuing bank to honor complying
presentation

Commercial Bank of Ethiopia - TS Advisory and Training 20

 የመተማመኛ Wነድ
እንደ UCP 600 የመተማማኛ Wነድ ሲተረጎም…

• የተማመኛ Wነድ ማለት የገ∙ና የሻጭ ሙሉ

ስምምነት ያለበትና የገ∙ ባንክ በመተማመኛ Wነዱ
መሰረት ተዘጋጅቶ የቀረበለትን Wነድ ዋጋ
እንደሚከፍል ቃል የሚገባበት ነው

Commercial Bank of Ethiopia - TS Advisory and Training 21

 Documentary Credit
Advantage
Importer give assurance that payment will not be
effected for non shipped item
Exporter payment assurance
Disadvantage
Importer shipment value and opening charges are high
Exporter delay /none payment (for discrepant document)
Banks role
Importer give assurance to honor complying documents
Exporter advance funds upon document compliance
22
Commercial Bank of Ethiopia - TS Advisory and Training
 የመተማመኛ Wነድ
ጥቅም
ለገዥ - ላልተጫነ ዕቃ ክፍያ እንደማይፈጸም ያረጋግጣል

ለሻጭ - የክፍያ ዋስትና ይሰጣል

ጉዳት
ለገዥ - ዋጋው ውድ ነው (የመክፈቻና ሌሎች ወጪዎች)
ለሻጭ - Wነዱ ንጹህ ካልሆነ ክፍያው
ይዘገያል/አይከፈልም
የባንኩ ድርሻ
የገዥ - ባንኩ ለንጹህ Wነድ ብቻ ክፍያ እንደሚፈጽም
ዋስትናCommercial
ይሰጠዋል Bank of Ethiopia - TS Advisory and Training
23
 Documentary Collection
• Handling of documents (financial and/ or commercial) by banks in
accordance with instructions received, in order to:-

a. Obtain payment and/or acceptance

b. Deliver documents against payment and/or acceptance
c. Deliver documents on other terms and conditions

• Pay the document value in case of importer bank

• Give instruction to deliver document against
payment /against acceptance in case of exporter
bank
24
Commercial Bank of Ethiopia - TS Advisory and Training
 Wነዶችን ለክፍያ መላክ
(Documentary collection )
ሻጭና ገዢ አስቀድመው በተስማሙት መሰረት ሻጭ ዕቃውን
ለገዢ መላኩን የሚያረጋግጥና ስለክፍያ ጊዜና ሁኔታዎችን
የያዘ Wነድ በሻጭ ባንክ በኩል ለገዢ ባንክ ተልኮ ባንኩም
በሻጭ ትዕዛዙ መሰረት Wነዶቹን ለገዢ የሚያስተላልፍበት
የክፍያ አይነት ነው፡፡

ሀ. ወዲያው ክፍያ መፈጸም /ወደፊት ለመክፈል መስማማት

ለ. ወዲያው ክፍያ በመፈጸም /ወደፊት እንዲክፈል Wነድ መላክ
ሐ. በሌላ ሁኔታ መስማማት

• ገቢ ንግድን በተመለከተ Wነድ ሲቀርብ ክፍያ መፈፀም

• ወጪ ንግድን በተመለከተ Wነድ ሲቀርብ /ወደ ፊት እንዲከፈል
ትዕዛዝ ማስተላለፍ 25
Commercial Bank of Ethiopia - TS Advisory and Training
 Documentary Collection
Advantage
Importer late payment
Exporter none
Disadvantage
Importer none
Exporter delay payment
Banks role
Importer Effect payment ( as per Importer’s request)
Exporter Document transfer ( as per exporter’s request)

26
Commercial Bank of Ethiopia - TS Advisory and Training
 ሰነዶችን ለክፍያ መላክ
ጥቅም
ለገዥ ክፍያ ያዘገያል
ለሻጭ ምንም

ጉዳት
ለገዥ ምንም
ለሻጭ ክፍያ ይዘገያል

የባንኩ ድርሻ
የገዥ ክፍያ መቀበልና ማስተላለፍ (በገዥው ትዕዛዝ
መሰረት)
የሻጭ ሰነድ መቀበልና ማስተላለፍ (በሻጭው ትዕዛዝ
መሰረት)

Commercial Bank of Ethiopia - TS Advisory and Training 27

 Advance Payment
• The method of payment where the seller receives payment
from the buyer prior to shipment or rendering of service.
– Payment will be effected by SWIFT in case of import *
– Inward remittance through our bank/other money
transfer agents/travelers cheques and cash (declared
by customs)
* Foreign Bank Guarantee is needed for the amount greater than USD5,000

28
Commercial Bank of Ethiopia - TS Advisory and Training
 ቅድሚያ ክፍያ
(Advance Payment)
• ሻጭ ዕቃውን/አገልግሎቱን ለገዢ ከመስጠቱ
በፊት ክፍያውን በቅድሚያ የሚያገኝበት የክፍያ
አይነት ነው፡፡

– ገቢ ንግድን በተመለከተ በባንክ በኩል የሚተላለፍ

ክፍያ *
– ወጪ ንግድን በተመለከተ በባንክ በኩል /በገንዘብ
ማስተላለፊያ ድርጅቶች/ በመንገደኞች ቼክ እና በጥሬ
ገንዘብ የገባ (በጉምሩክ የተመዘገበና የተረጋገጠ)

* ከUSD5,000 በላይ
Commercial Bank የውጭ
of Ethiopia - TSባንክ ዋስትና
Advisory መቅረብ ይኖርበታል
and Training
29
 Advance Payment
Advantage
Importer No advantage
Exporter Enjoy payment, be liquid (liquidity advantage)
Disadvantage
Importer lack of control over the goods, and other
unforeseen risk
Exporter local market price fluctuation
(on unstable commodity price )
Banks role
Importer money transfer as per the buyer’s instruction
Exporter pay to the exporter

30
Commercial Bank of Ethiopia - TS Advisory and Training
 ቅድሚያ ክፍያ
ጥቅም
ለገዥ ምንም
ለሻጭ ክፍያ በቅድሚያ ያገኛል

ጉዳት
ለገዥ በዕቃው ላይ ሊያዝ አይችልም/ ሌላ ያልታየ
ክስተት
ለሻጭ በአገር ውስጥ ዋጋ ቢጨምር ይቸገራል

የባንኩ ድርሻ
የገዥ ክፍያ መቀበልና ማስተላለፍ (በገዥው
ትዕዛዝ መሰረት)
የሻጭCommercial
የመጣውን ክፍያ ለሻጩ መክፈል
Bank of Ethiopia - TS Advisory and Training 31
 Consignment Sales
• The supplier ships the goods to the importer (known as
the consignee) whilst retaining ownership. The
consignee is the agent responsible for paying the
supplier if and only when the goods are sold. This
mode of payment is allowed for perishable items and
other as per NBE approval.

Commercial Bank of Ethiopia - TS Advisory and Training 32

 ያለምንም ክፍያ ወይም ዋስትና ዕቃን ለሽያጭ
ለወኪል መላክ
(Consignment Sales)
● ሻጭ ፅቃውን ያለምንም ዋስትና ልኮ ወኪሉ
ፅቃውን ሸጦ ገንዘቡን እንዲልክለት የሚፈቅድ
የክፍያ አይነት ሲሆን ዕቃው እስካልተሸጠ ድረስ
ወኪሉ የዕቃውን ዋጋ የመላክ ግዴታ የሌለበትና
የባለቤትነት መብት ግን እስካልሸጠ ድረስ የሻጭ
ሆኖ የሚቆይበት ነው፡፡ ይህ የክፍያ አይነት ለወጪ
ንግድ የምንጠቀምበት ሲሆን የሚፈቀደውም
በቀላሉ ሊበላሹ የሚችሉ የፅቃ አይነቶች ማለትም
ፍራፍሬ፣ አበባ፣ ሥጋ፣ ሞላሰስ እንዲሁም ሌሎች
የኢትዮጵያ ብሔራዊ ባንክ እንዲካተቱ ሲፈቅድ ብቻ
Commercial Bank of Ethiopia - TS Advisory and Training
ነው፡፡
33
 Consignment Sales
Advantage
Importer Late payment
Exporter none
Disadvantage
Importer none
Exporter Delay payment
Banks role
Importer Payment transfer
Exporter Effect payment
Commercial Bank of Ethiopia - TS Advisory and Training 34
ያለምንም ክፍያ ወይም ዋስትና ዕቃን ለሽያጭ
ለወኪል መላክ
ጥቅም
ለገዥ ክፍያ ያዘገያል
ለሻጭ ምንም

ጉዳት
ለገዥ ምንም
ለሻጭ ክፍያ ይዘገይበታል

የባንኩ ድርሻ
የገዥ ክፍያ ያስተላልፋል
የሻጭ ክፍያ ይፈጽማል
Commercial Bank of Ethiopia - TS Advisory and Training 35
 Franco Valuta
Items imported without
payment of Foreign
Currency by the importing
country.

Commercial Bank of Ethiopia - TS Advisory and Training 36

 ያለውጭ ምንዛሪ ክፍያ ለሚገባ ዕቃ
የሚሰጥ ፈቃድ
(Franco Valuta permit)

• ከአገር ወደ ውጭ የሚከፈል የውጭ

ምንዛሪ ሳይኖር፣ ከውጪ ዕቃ ለሚያስገቡ
የሚሰጥ ፈቃድ ነው፡፡

37
Commercial Bank of Ethiopia - TS Advisory and Training
 Small Items Export Permit
• The permit issued for export of small items by
tourists, foreign residents of Ethiopian
Nationals who wish to take souvenirs.
Also this permit is given for items to be sent
abroad for sample, gift, repair, replacement,
exhibition and trade fair and personal effects
and belongings etc.

Commercial Bank of Ethiopia - TS Advisory and Training 38

 ወደ ውጭ የሚላኩ አነስተኛ ዕቃዎች
ፍቃድ (Small Items Export
Permit)
• ይህ ለአነስተኛ ወጪ ዕቃዎች የሚሰጥ ፈቃድ
ሲሆን ለቱሪስቶችና፣ በውጭ አገር የሚኖሩ
ኢትዮጵያውያን ለሚወስዱት የስጦታ ዕቃዎች
የሚስተናገዱበት ፈቃድ ሲሆን፣ በተጨማሪ
ለናሙናዎች፣ለጥገና ለሚላኩ ዕቃዎች፣ለምትክ
ዕቃዎች፣ለኤግዚቢሽኖች፣ የግል ንብረቶችንና
የመሳሰሉትን ወደ ውጭ መውሰድ ለሚፈልጉ
የሚሰጥ ፈቃድ ነው፡፡
Commercial Bank of Ethiopia - TS Advisory and Training 39
 Guarantee
A letter of guarantee issued by a bank is a written
promise by the bank to compensate (pay a sum of
money) to the beneficiary in the event that the obligor fails to
honor his obligations in accordance with the terms and
conditions of the guarantee.

Types of Bank Guarantee:-

Bid Bond, Performance Bond, Advance Payment

Guarantee, Loan Guarantee, Retention Guarantee,
and Customs Duty Guarantee

Commercial Bank of Ethiopia - TS Advisory and Training 40

 የዋስትና Wነድ (Guarantee)
• የዋስትና / የቃል ኪዳን Qነድ በግዴታ ገቢው
ጠያቂነት የሚዘጋጅ ሲሆን ግዴታ ገቢው
በስምምነታቸው መሰረት ግዴታውን ካልተወጣ
በዋስትና ተቀባዩ /ተጠቃሚው/ ላይ የሚደርሰውን
ኪሳራ/ጉዳት ለማካካስ በግዴታ ገቢው ባንክ የሚስጥ
የቃል ኪዳን/ የዋስትና Wነድ ነው፡፡

• የዋስትና ዓይነቶች፡-
የጨረታ መሳተፊያ ዋስትና፣የመልካም ሥራ
አፈፃፀም ዋስትና፣የቅድሚያ ክፍያ
ዋስትና፣የብድር ዋስትና፣የቀሪ ክፍያና ለቀረጥ
ተከፋይነት የሚሰጡ የዋስትና Wነዶች ናቸው፡፡
Commercial Bank of Ethiopia - TS Advisory and Training
41
 Foreign Transfer
For the purpose of trade service we need to discuss the Incoming
and outgoing money transfers -----
• Incoming money transfer :- transfer of money from abroad
to Ethiopia. CBE is currently working with more than ten
money transfer agencies, mainly by SWIFT and other
money transfer agencies like, Western Union, X press,
Money Gram … which is useful for customers using the
Advance Payment as mode of payment for export

• Outgoing money transfer:- transfer of money from Ethiopia

to abroad. CBE is using mainly SWIFT which is useful
for customers using the Advance Payment as mode of
payment for import

42
Commercial Bank of Ethiopia - TS Advisory and Training
 የውጭ አገር ሀዋላ
ከንግድ አገልግሎት ጥቅም አንጻር የገቢና የወጪ
ሀዋላዎችን ለመግለጽ….

● የውጭ አገር ገቢ ሀዋላ

ከማንኛውም አገራት ወደ ኢትዮÆያ የሚላክ የሀዋላ
አገልግሎት ነው:: የኢትዮÆያ ንግድ ባንክ ይህንን
አገልግሎት ለመስጠት ከአስር በላይ ከሆኑ የውጭ አገር
ሀዋላ አገልግሎት ሰጪ ድርጅቶች ጋር ይሰራል:: ላኪዎች
ይህን አገልግሎት የሚጠቀሙት በቅድሚያ ክፍያ ግብይት
ወቅት ነው::

● የውጭ አገር ወጪ ሀዋላ

ከኢትዮÆያ ወደ ማንኛውም አገራት የሚላክ የሀዋላ
አገልግሎት ነው:: የኢትዮÆያ ንግድ ባንክ አስመጪዎች
የቅድሚያ ክፍያ ግብይትን
of Ethiopia - TSሲጠይቁ በዋናነት
43
Commercial Bank Advisory andSWIFTን
Training
 Regulatory Guidelines
Foreign trade is regulated by two basic categories of
regulations

1. Local regulations
• It Varies from country to country depending on the
monetary policies of government
• The basics of the regulations would include:
– Exchange Control regulations
– Documentation requirements
– Foreign exchange funds flow National Bank of
Ethiopia (NBE) directives

44
Commercial Bank of Ethiopia - TS Advisory and Training
 Regulatory Guidelines
2. International Regulations
– There are many regulatory bodies but the most widely accepted is
the International Chambers of Commerce (ICC)

• For Documentary Credit:

– UCP 600 – Uniform Customs and Practices for Documentary
Credits
– URR 725 – Uniform Rules for Bank to Bank Reimbursement

• For Documentary Collection

– URC 522 – Uniform Rules for Collections

• For Guarantee
– URDG 458 – Demand Guarantees
– URDG 758 – Demand Guarantees

– ISP98 – International Standby Practices 45

Commercial Bank of Ethiopia - TS Advisory and Training
 Requirement (… international Trade)
Customer should have the following to enter in to
international trade under any modes of payment
approved by NBE.
 Valid trade license, investment, industry, budgetary
government organizations, in case of NGOs’ Certificate
from Ministry of Justice, regional government & offices
authorized by proclamation
 Should have Tax Identification Number (TIN).
 Should have NBE account number
 Should open account with the bank
 Should Not appear on delinquent list of the NBE
 Search for market and obtain pro forma Invoice 46
Commercial Bank of Ethiopia - TS Advisory and Training
 ለùለም አቀፍ ንግድ መሟላት የሚገባቸው
ደንበኛው ወደ ùለም አቀፍ ንግድ ከመግባቱ በፊት የትኛውንም የክፍያ
ዘዴዎች ቢጠቀም ሊያሟላቸው የሚገቡ :-

▪ የታደሰና የንግዱን ዓይነት የሚገልጽ የንግድ/

የኢንቨስትመንት/የኢንዱስትሪ ፈቃድøበበጀት የሚተዳደሩ
የመንግJት ድርጅቶችø መንግJታዊ ላልሆኑ ድርጅቶች
የፍትህ ሚ/ር ሰርቲፊኬትøየክልል መንግስታትøበአዋጅ
ስልጣን የተሰጣቸው ቢሮዎች
▪ የታክስ ከፋይነት ማረጋገጫ ሰርቲፊኬት
▪ የአስመጪ/የላኪ ቁጥር ማግኘት (በብሔራዊ ባንክ
የተመዘገበ)
▪ የባንክ ሂሳብ መክፈት
 በùለም አቀፍ ንግድ ያልተወራረደ ግዴታ የሌለባቸው
47
▪ ገበያ መፈለግና ፕሮፎርማ ኢንቮይስ ማግኘት
Commercial Bank of Ethiopia - TS Advisory and Training
 Additional requirement
• Ownership Certificate (Libre) from the country of purchase (In case
of used vehicles).
– Chamberized documents showing full description of the goods
including type, model, date of manufacture, and original purchase price
from parties other than the seller.
– The FOB value of used vehicles, machineries, equipments etc to be
imported shall not exceed the maximum value with respect of service
year.
• Certificate from Ethiopian drug control and administration for
medicines and equipment, (if applicable).
• Certificate from Ministry of Agriculture for agricultural chemical and
medicines, if applicable.
• Certificate from Road Transport Authority for import of vehicle, if
applicable.
• Copy of a loan or grant agreement concluded between Government
Agencies & foreign financing organizations. However, a letter of
NBE is required in the case of private sector, & no objection letter
from donor or lender (if applicable).
48
Commercial Bank of Ethiopia - TS Advisory and Training
 በተጨማሪ መሟላት የሚገባቸው
• ያገለገሉ ተሽከርካሪዎች/መኪኖች ለሚያስመጡ ድርጅቶች የባለቤትነት
ማረጋገጫ ሰነድ (Libre) ተሽከርካሪዎቹን/መኪኖቹን ከሚያስመጡበት
አገር ማስመጣት አለባቸው

• መድሀኒትና የህክምና ዕቃዎች ለሚያስመጡ ድርጅቶች ከኢትዮጵያ

የመድሀኒት ቁጥጥርና አስተዳደር ማረጋገጫ/ Certificate መቅረብ
አለባቸው

• ተሽከርካሪ ሰሚያስመጡ ድርጅቶች ከኢትዮጵያ መንገዶች ባለስልጣን

ማረጋገጫ/ Certificate መቅረብ አለባቸው

• በመንግስትና የውጭ አበዳሪ ወይም እርዳታ ሰጪ ድርጅት ጋር የተደረገ

ስምምነትን የሚያሳይ ማስረጃ ኮፒ መቅረብ አለበት። ለግል ድርጅቶች
የብሄራዊ ባንክ ደብዳቤ ያስፈልጋል። የክፍያ ስምምነትን ደብዳቤ (no
objection letter) ከአበዳሪው ወይም እርዳታ ሰጪው ድርጅት 49
Commercial Bank of Ethiopia - TS Advisory and Training
How to Proceed…
• Search for market, (web site,
internet …
• know your customer
• Agree on details of market
conditions like mode of payment (L/C,
A/P,CAD), Delivery terms (FOB, C&F…)
• Collect Pro forma
• Appear at a bank counter for Trade
Service
– Apply for import
• On mode of payment you agreed
with your supplier

50
Commercial Bank of Ethiopia - TS Advisory and Training
እንዴት ይቀጥሉ…
• ገበያ ያፈላልጉ (web site, internet … )
• ደንበኛዎን ይወቁ
• በአጠቃላይ የገበያ ሁኔታዎች ላይ ይስማሙ
½እንደ የክፍያ ዘዴዎች / የመተማመኛ
Wነድ (L/C)øቅድሚያ ክፍያ (Advance
Payment)øWነድን ለክፍያ መላክ (CAD)/
øያጫጫን ሁኔታ (FOB, C&F…) እና
ሌሎች
• ፕሮፎርማ ይቀበሉ

• ከዚያ ወደ ባንክዎ ለአገልግሎት

ይምጡ
ከላኪው ጋር በተስማሙበት የክፍያ ዘዴ
ዕቃው ለማስመጣት ያመልክቱ
Commercial Bank of Ethiopia - TS Advisory and Training
51
 Pro forma Invoice

Invoice issued in advance of order:

 issued before goods are ordered

 an indication of price
 it is a form of quotation

52
Commercial Bank of Ethiopia - TS Advisory and Training
የዋጋ ማቅረበያ ኢንቮይስ /pro forma invoice/

ከጭነት በፊት የሚመጣ የዋጋ

ማሳወቂያ ኢንቮይስ

 ዕቃ ከመታዘዙ በፈት
የሚቀርብ

 የዋጋ ማሳወቂያ

 የተግባቡበት የሺያጭ
ዝርዝር ሁኔታ
53
Commercial Bank of Ethiopia - TS Advisory and Training
 Pro forma Invoice content
• Pro forma Invoice No…….
• Date……………….
• Validity Date (optional) -------------------
• Names of importer and exporter
– Item to be imported
– Country of origin
– Quantity
– Price (unit & Total) per agreed measurement
– Terms of delivery
– Port of loading, discharge/destination
– Mode of payment
– Exporter’s bank

------------ ------------
Seller’s signature Buyer’s signature
Seal of both parties

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Commercial Bank of Ethiopia - TS Advisory and Training
 የዋጋ ማቅረቢያው ሊይዛቸው የሚገቡ

• ቁጥር-----------------
• ቀን--------------------
• የማብቂያ ጊዜ-------------
• የገዥ/የሻጭ ስም
– የሚገባ/የሚወጣው ዕቃ ዓይነት
– የተሰራበት አገር
– መጠኑ
– የመሸጫ ነጠላና ጠቅላላ ዋጋው/በተስማሙበት መለኪያ
– ያጫጫኑ ሁኔታ
– የጭነቱ መነሻ እና የጭነቱ መድረሻ ወደብ
– የክፍያው ዓይነት
– የላኪዉ ባንክ ስም

------------------ ----------------------
የገዥ ፊርማ የሻጭ ፊርማ
ማህተም
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Commercial Bank of Ethiopia - TS Advisory and Training
Required Documents under Documentary /Letter of Credit
● Valid Foreign Trade License /Industry/ Investment
● Tax Payer Identification Number /TIN Certificate
● Duly signed valid Pro forma invoice ( indicating HS. Code)
● Duly completed signed and sealed Foreign Exchange Application
for Import (permit),
● In case of service import signed and sealed application letter
● L/C application and other supporting documents such as
certificates from different authorities (if any)
● Insurance certificate from licensed local insurance company,
ascertain that the insurance policy is issued in the name of
customer and a bank
● Letter /waiver from ESL for delivery term C&F, (CIF… if this mode
Is approved by NBE)
● International competitive Bid for values USD1,000,000.- and above
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Commercial Bank of Ethiopia - TS Advisory and Training
በመተማመኛ ሰነድ (L/C) ለማስመጣት መቅረብ ያባቸው
Wነዶች
▪ የታደሰ ውጭ የንግድ ፈቃድ/ የኢንቨስትመንት/ የኢንዱስትሪ
▪ ታክስ ከፋይነት ማረጋገጫ ሰርቲፊኬት
▪ የግዜ ገደቡ ያላለፈበት ፕሮፎርማ ኢንቮይስ (HS. Code ያካተተ)
• በትክክል ተሞልቶ የተፈረመ የውጭ ምንዛሪ መጠየቂያ ቅጽ
• የሚያስመጡት አገልግሎት ከሆነ ( service import) ደብዳቤ /ማመልከቻ
ማቅረብ
• የመተማመኛ ሰነድ መጠየቂያ ቅጽ L/C application እና አባሪ
ሰርቲፊኬቶች እንደአስፈላጊነቱ ማያያዝ
• በአገር ውስጥ የኢንሹራንስ ኩባንያ የተገባ የአስመጪውንና የባንኩን ስም
የሚገልጽ ዋስትና
• የጭነቱ ሁኔታ የዕቃውን ዋጋና ማስጫኛውን የሚጨምር (C&F)øወይም
ኢንሹራንሱን ጨምሮ (CIF) ከሆነ (በብ• ራዊ ባንክ ከተፈቀደ) ከኢትዮPያ
ንግድ መርከብ ደብዳቤ ማቅረብ
• የሚያስመጡት እቃ ዋጋ የአሜሪካን ዶላር 1.000.000- እና ከዚያ በላይ
ከሆነ አለም አቀፍ ጨረታ ማቅረብ
57
Commercial Bank of Ethiopia - TS Advisory and Training
 Required Documents under Documentary collection /CAD
Customer should present the following documents at time of Purchase Order approval
● Valid Foreign Trade License /Industry/ Investment
● Tax Payer Identification Number /TIN Certificate
● Duly signed valid Proforma invoice ( indicating HS. Code)
● Valid, signed and sealed Purchase Order (P/O) for approval, which
– should be addressed to exporter
– has to include at least
– Description of goods, and Country of origin,
– Payment term Cash Against Document (CAD) sight
– Unit & total price
– Delivery term FOB, (C&F), it has to show breakdown of cost and freight, for (CIF)
needs NBE approval
– Unit & total price
– List of required documents
● Insurance certificate from licensed local insurance company, ascertain that the
insurance policy is issued in the name of customer and a bank
● Letter /waiver from ESL for delivery term C&F, (CIF if this mode Is approved by NBE)
● International competitive Bid for values USD1,000,000.- and above 58
Commercial Bank of Ethiopia - TS Advisory and Training
 ሰነድን ለክፍያ በመላክ ዘዴ (CAD) ለማስመጣት መቅረብ ያባቸው Wነዶች
አስመጪው የግ· ማዘ¸ (P/O) ለማጸደቅ የሚያቀርባቸው Wነዶች
▪ የታደሰ የውጭ ንግድ ፈቃድ/ የኢንቨስትመንት/ የኢንዱስትሪ
▪ የታክስ ከፋይነት ማረጋገጫ ሰርቲፊኬት
▪ የግዜ ገደቡ ያላለፈበት ፕሮፎርማ ኢንቮይስ (HS. Code ያካተተ)
▪ የግ· ማዘ¸/ PO/ የግዜ ገደቡ ያላለፈበትና
- በሻጩ ስም የተዘጋጀ
- የሚከተሉትን ዝርዝር ሁኔታዎች ያካተተ
- የዕቃው አይነትና የሚጫንበት አገር
- የክፍያ ዘዴው CAD/ sight
- የዕቃው ነጠላና ጥቅል ዋጋ
- የጭነቱ ሁኔታ FOB, C&F, (የዕቃውን ዋጋ የጭነቱንና ኢንሹራንሱን) ከፋፍሎ
የሚያሳይ (CIF) በብ• ራዊ ባንክ ሲፈቀድ
- የሚፈለጉ ሰነዶች ዝርዝር
▪ በአገር ውስጥ የኢንሹራንስ ኩባንያ የተገባ የአስመጪውንና የባንኩን ስም
የሚገልጽ ዋስትና
• የጭነቱ ሁኔታ የዕቃውን ዋጋና ማስጫኛውን የሚጨምር (C&F)øወይም
ኢንሹራንሱን ጨምሮ (CIF) ከሆነ (በብ• ራዊ ባንክ ከተፈቀደ) ከኢትዮPያ ንግድ
መርከብ ደብዳቤ ማቅረብ 59
Commercial Bank of Ethiopia - TS Advisory and Training
• የሚያስመጡት ዕቃ ዋጋ የአሜሪካን ዶላር 1.000.000- እና ከዚያ በላይ ከሆነ
 … Required Documents under Documentary collection /CAD
Customer should present the following documents at time of CAD
settlement /arrival of documents
● Duly completed signed and sealed Foreign Exchange
Application for Import (permit),
● Chamberized Invoice
● Certificate of origin
● Transport document
● Packing list
● Authorization letter to debit their account for value of
goods and bank charges if any.
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Commercial Bank of Ethiopia - TS Advisory and Training
… ሰነድን ለክፍያ በመላክ ዘዴ (CAD) ለማስመጣት መቅረብ ያባቸው Wነዶች

አስመጪው ዕቃው ተጭኖ/ Qነድ ሲደርስ የሚያቀርባቸው Wነዶች

● የውጭ ምንዛሪ መጠየቂያ ቅጽ

● Chamberized Invoice/ ኢንቮይስ
● ዕቃው የተሰራበትን አገር የሚገልጽ ሰርተፊኬት
● የማስጫኛ Wነድ
● የጥቅል ሁኔታ የሚያሳይ ሊስት
● የዕቃውን ዋጋና አስፈላጊውን የባንከ ወጨ ከሂሳባቸው እንዲቀነስ
የሚያዝ ደብዳቤ ማያያዝ

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Commercial Bank of Ethiopia - TS Advisory and Training
 Required Documents under Advance Payment
Importer should present the following documents for import under Advance
Payment (A/P)

● Valid Foreign Trade License /Industry/ Investment

● Tax Payer Identification Number /TIN Certificate
● Duly completed signed and sealed Foreign Exchange Application for Import (permit)
● In case of service import signed and sealed application letter
● Valid and signed Pro forma invoices
● Insurance certificate from licensed local insurance company, ascertain that the
insurance policy is issued in the name of customer and a bank
● Letter /waiver from ESL for delivery term C&F, (CIF… if this mode Is approved by
NBE)
● Foreign bank guarantee confirmed by local banks for the amount exceeding USD5000
● A letter of undertaking for the entry of the goods into the country if not, refund the
approved FCY
● International competitive Bid for values USD1,000,000.- and above
● Authorization letter to debit their account for value of goods and bank charges if any

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Commercial Bank of Ethiopia - TS Advisory and Training
 በቅድሚያ ክፍያ ለማስመጣት የሚቀርቡ Wነዶች
አስመጪው በቅድሚያ ክፍያ የክፍያ ዘዴ በመጠቀም ማስመጣት ከፈለገ
የሚያቀርባቸው Wነዶች

▪ የታደሰና የንግዱን ዓይነት የሚገልጽ የንግድ ፈቃድ/ የኢንቨስትመንት /የኢንዱስትሪ

▪ ታክስ ከፋይነት ማረጋገጫ ሰርቲፊኬት
▪ የውጭ ምንዛሪ መጠየቂያ ቅጽ
▪ ፕሮፎርማ ኢንቮይስ /ቀኑ ያላለፈበት/
 በአገር ውስጥ ኢንሹራንስ ኩባንያ የተገባ የአስመጪውንና የባንኩን ስም የሚገልጽ
የዋስትና
• የጭነቱ ሁኔታ የዕቃውን ዋጋና ማስጫኛው የሚጨምር ከሆነ ከኢትዮPያ ንግድ መርከብ
ደብዳቤ መቅረብ/በብ• ራዊ በንክ ከተፈቀደ የዕቃውን ዋጋ ማስጫኛውንና ኢንሹራንሱን
ከጨመረም እንዲሁ/
• ከኢትዮPያ ንግድ መርከብ/ Waiver/ ደብዳቤ ማምጣት
• የእቃው ዋጋ ከአሜሪካን ዶላር 5000 በላይ ከሆነ የውጭ ባንክ ዋስትና/Guarantee
ማቅረብ
• ውጭ ምንዛሪ የተከፈለበት እቃ አገር ውስጥ ባይገባ ገንዘቡን በውጭ ምንዛሪ 63
Commercial Bank of Ethiopia - TS Advisory and Training
እንደሚመልስ በደብዳቤ መረጋገጫ መስጠት
 Amendment

Any change in the

terms and
conditions of
letter of credit

Commercial Bank of Ethiopia - TS Advisory and Training 64

 ማስተካከያ

በመተማመኛ
Wነዱ ላይ
የሚደረግ
ማንኛውም
ማስተካከያ /
ለውጥ
Commercial Bank of Ethiopia - TS Advisory and Training 65
 Amendment
A process to change terms and conditions of letter of credit.
It can be initiated by the beneficiary or the applicant and
all parties should agree on the changes.

▪ The applicant should submit an application to his

bank/issuing bank to make the required changes on the
L/C. Amendments can be made on :-
- Increase/decrease L/C amount
– Extension of expiry and/or shipment date
– Change on trade term
– Correction of misspellings,
– Change on origin of goods, …etc

Commercial Bank of Ethiopia - TS Advisory and Training 66

 ማስተካከያ
▪ በመተማማኛ ሰነዱ ላይ የተገለጹት ሁኔታዎችን
ማረም/መቀየር ማለት ነው½½ ጥያቄው በገ·ው/በሻጩ
ሊቀርብ የሚችል ሲሆን በለውጡ ሁሉም ወገን
መስማማት አለባቸው ½½
▪ ገ·ው ለባንኩ ማመልከቻ በማቅረብ Wነዱ
እንዲስተካከል ያደርጋል ½½ ከተለመዱት
ማስተካከያዎች ውስጥ:-
- የWነዱን ዋጋ መጨመር/መቀነስ
- የWነዱን ማብቂያና የጭነት ጊዜውን ማራዘም
- ያጫጫኑን ሁኔታ መለወጥ
- የፊደል ግድፈትን ማረም
- የዕቃው የተመረተበት አገር (Origin) ለውጥና
የመሳሰሉት …Bank of Ethiopia - TS Advisory and Training
Commercial
67
 Application for amendment

• Customer should submit application letter

mentioning the change/amendment
quoting the L/C number authorizing to
debit their account for bank charges and
for all the additional costs.

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Commercial Bank of Ethiopia - TS Advisory and Training
 ማስተካከያ ለማድረግ ጥያቄ ማቅረብ

• አስመጪው የሚለወጡትን ነገሮች በመዘርዘር

ኤልሲ ቁጥሩን ጠቅሶ ደብዳቤ ለባንኩ በማቅረብ
ለማስተካከያው የባንክ ወጪውና ተጨማሪ ገንዘብ
የሚያስፈልግ ከሆነ ከሂሳቡ መቀነስ እንዲቻል
ትዕዛዝ መስጠት½½

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Commercial Bank of Ethiopia - TS Advisory and Training
EXERCISE

BASED ON

THE SAMPLE

– LETTER OF CREDIT

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Commercial Bank of Ethiopia - TS Advisory and Training
 XY ENTERPRISE MIDDLE EAST DUBAI
TEL: 097143329090 FAX 097143329291
Dubai, UAE
PROFORMA INVOICE

TO: ABC GENERAL IMPORT Pro forma Invoice No H011003070

P.O.BOX 21150 Date 29/06/2011
ADDIS ABABA ETHIOPIA Validity Date 06/07/2011

Description of goods Quantity Unit Price Total Price

/MT USD USD

Chemical 25 3400 85000

HS Code ……
Total Quantity Total FOB Jebel Ali Port USD85000

Delivery Terms - FOB … Port of Loading - Jebel Ali

Port of discharge - Djibouti Port of discharge - Djibouti
Payment Terms- Letter of Credit at sight
Country of origin - Taiwan
Carrier - Shipment to be effected by ESL or EAL

Bank; HSBC Bank Middle East Dubai

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Commercial Bank of Ethiopia - TS Advisory and Training
 Foreign Exchange Application for Import
1 TSSO/ IBD/ Branch name 10 XY Enterprise Middle East Dubai
2 ABC General Import, 11 NBE Account No
P.O.Box Code 1000 15423 12 CBETSC01……. (Bank Ref. No)
Addis Ababa Ethiopia 13 Permit Issue date-----
3 00012345 DD/MM/2011
4 0000000000 14 DD/MM/2011 (validity is 120
5 25 MT Chemical as per Pro forma days from the issue date)
Invoice No H011003070 dd 29/06/11 15 Reserve
6 FOB USD 85000.- 16 Date, signature of applicant ,
7 Birr ( As per the daily rate) and stamp
8 XY Enterprise Middle East Dubai 17 Signature of bank staff
Tel: 097143329090 and round stamp of CBE
FAX 097143329291
9 Letter of credit
Djibouti
ESL

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Commercial Bank of Ethiopia - TS Advisory and Training
 Application For Letter of Credit
A CBE IBD 9 Allowed
B July 1, 2011 10 Not allowed
C ABC General Import 11 ESL
P.O.BOX ------ A.A. Ethiopia 12 Taiwan Origin
D 00012345 13 ABC General Import
E 00000000000 P.O.BOX ------ A.A. Ethiopia
F Reserve 14 Beneficiary
G 000000 15 Not required
H XY Enterprise Middle East Dubai, 16
Tel: 097143329090 17 No.-of originals 4
Fax: 097143329291 No.-of copies 3
I HSBC Bank Middle East Dubai 18
1 ---- (Transferable) 19 No.-of originals 4
2 Payment No.-of copies 3
3 USD 85000----- United states Dollars 20 Payable at destination
Eighty Five thousands only Commercial Bank of Ethiopia
4 FOB Dubai Port ABC General Import
5 September 07, 2011 21
6 September 27,2011 22
7 Dubai Port 23 Chemical as per pro forma Invoice No
8 Djibouti H011003070
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Commercial Bank of Ethiopia TS Advisory and Training
SAMPLE COMMERCIAL BANK OF ETHIOPIA
TRADE SERVICE CENTRAL PROCESSING CENTER
LETTER OR CREDIT

TO : ABC GENERAL IMPORT DATE 01/07/11

P.O.BOX Code 1000 15423
ADDIS ABABA ETHIOPIA
We have opened irrevocable letter of cre3dit under our ref 2011.WO.00000000
Advising Bank: HSBC BANK MIDDLE EAST
UAE, DUBAI
27: SEQUANCE OF TOTAL
1/1
40A: FORM OF DOCUMENTARY CREDIT
IRREVOCABLE
20: DOCUMENTARY CREDIT NUMBER
2011.WO.00000000
31C: DATE OF ISSUE
110701
40E: APPLICABLE RULES
UCPURR LATEST VERSION
31D: DATE AND PLACE OF EXPIRY
110927 DUBAI
50: APPLICANT
ABC GENERAL IMPORT
P.O.BOX 1000 15423
ADDIS ABABA ETHIOPIA
TIN 0000000000 74
Commercial Bank of Ethiopia - TS Advisory and Training
59:BENEFICIARY
XY ENTERPRISE MIDDLE EAST DUBAI
TELL +097143329090 FAX + 097143329092
32B: CURRENCY CODE, AMOUNT
USD 85000.00
39B: MAXIMUM CREDIT AMOUNT
NOT EXCEEDING
41D: AVAILABE WITH.. .BY...
ANY BANK
BY PAYMENT
43P: PARTIAL SHIPMENT
ALLOWED
43T: TRANSHIPMENT
NOT ALLOWED
44E: SHIPMENT FROM
DUBAI PORT
44F: SHIPMENT TO
DJIBOUTI PORT
44B: PLACE OF FINAL DESTINATION
MODJO DRY PORT
44C: LATEST DATE SHIPMENT
110907
45A:DESCRIPTION OF GOODS
CHEMICAL AS PER PROFORMA INVOICE NO. H 011003070, DD 29/06/2011
DELIVERY TERMS FOB DUBAI PORT

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Commercial Bank of Ethiopia - TS Advisory and Training
46A:DOCUMENTS REQUIRED
+ Four signed original commercial invoice three of them certified by chamber of commerce
+ Packing list in four original and three copies
+ One original and two copies of certificate origin issued by the chamber of commerce
+Full set of multimodal transport document and one non negotiable copy issued by Ethiopian
Shipping Lines S.C marked freight payable at destination made out to the order of Commercial
Bank of Ethiopia marked notify ABC General import P.O.BOX 1000 15423
A certificate issued by a Captain or vessel owner or agent or company of vessel to be
presented stating the following:
1. Name of a vessel
2 Voyage No.
3 Bill of Lading No. and date
4 Port of Loading
5 Port of discharge
6 Number (quantity) of packages
7 Gross weight
8 Types of goods
9 Our L/C no.
10 Name of carrier’s agent
11 And further stating that the vessel shall not call or anchor the ports or enter the territorial
waters o state of Eritrea in route to its destination and that the vessel is not registered
under Eritrean flag nor owned by Eritrean national
12 The classification of societies under which the vessel is registered and the country of
registration
The certificate has to be signed and stamped by the issuer declaring that the information
provided above are correct and complete
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Commercial Bank of Ethiopia - TS Advisory and Training
+ One original beneficiary’s confirmation certificate is required to confirm the following
conditions in the L/C
- packages are marked ABC General import
- non negotiable copies of shipping documents are sent directly to the buyer
- Shipment are effected by the Ethiopian Shipping Lines S.C or its agent

47:Additional condition
+All documents should be prepared in English and should state our L/C no.
+Bill if lading should include country name along with seaport of lading
+Document evidencing shipment of goods prior to issuance of this letter of credit are not
acceptable
+Any document containing discrepancies and presented to us under this documentary credit
will be charged with a fee of USD 50. plus telex charge (if any) at final payment. This charge is
for the account of beneficiary and will be deducted from any amount to be paid
+The invoices should indicate our foreign exchange application for import No.
CBETSC010000002011
+ The certificate of origin should evidence that the goods are of Taiwan origin

71B:CHARGES
ALL BANK CHARGES OUTSIDE ETHIOPIA ARE FOR THE ACCOUNT OF THE BENEFICIARY.
49: CONFIRMATION INSTRUCTION
WITHOUT
53A: REIMBUERSING BANK
HSBCZAJJXXX
77
Commercial Bank of Ethiopia - TS Advisory and Training
78:INSTRUCTION TO THE PAYING/ACCEPTING/NEGOTIATING BANK

+ The negotiating bank is authorized to reimburse itself with our account

held with the reimbursing bank stated under Field 53A under advise to us
+ the negotiating bank must send all documents to the first sent by fast
courier and the second set by registered express air mail to the following
address
Commercial Bank of Ethiopia
Trade service Central Processing Center (TSCPC)
Churchill Road, Unity Square
P.O.BOX255
Addis Ababa, Ethiopia

72: SENDER TO RECEIVER INFORMATION

PLEASE ACKNOWLEDGE RECIEPT OF THIS L/C.

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Commercial Bank of Ethiopia - TS Advisory and Training
 ABC GENERAL IMPORT
P.O.BOX Code 1000 15423 ADDIS ABABA ETHIOPIA
PRUCHASE ORDER
TO: XY ENTERPRISE MIDDLE EAST DUBAI Purchase order No 0012/11
Tel. 097143329090 Date 2/07/2011
Fax 097143329291 Validity Date 20/07/2011
Mode of Transport by Sea

Kindly deliver the goods in accordance with the terms and conditions stated in your Pro forma
Invoice No. E011002972 dated 29/06/11
Description of Goods Quantity Unit Price Total Price
/MT USD USD

Chemical 25 3400 85000

HS Code
Total Quantity 25MT Total FOB Jebel Ali Port USD 85000

Payment Terms: CAD at sight Port of Loading : Jebel Ali port

Bank: HSBC Bank Middle East Dubai Port of discharge: Djibouti
Required documents
Chamberized Invoice send document to:
Chamberized Certificate of origin Commercial Bank of Ethiopia
Packing list Trade Service CPC
Bill of lading – consignee__________ P.O.Box 255, AA Ethiopia
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Commercial Bank of Ethiopia - TS Advisory and Training
 Letter of Guarantee
A letter of guarantee issued by a bank is a
written promise by the bank to
compensate (pay a sum of money) to the
beneficiary in the event that the obligor fails
to honor his obligations in accordance with
the terms and conditions of the guarantee.

Guarantee can be issued in a form of

direct or indirect.
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Commercial Bank of Ethiopia - TS Advisory and Training
 የዋስትና Qነድ
• የዋስትና / የቃል ኪዳን Qነድ በግዴታ ገቢው
ጠያቂነት የሚዘጋጅ ሲሆን ግዴታ ገቢው
በስምምነታቸው መሰረት ግዴታውን ካልተወጣ
በዋስትና ተቀባዩ / beneficiary / ላይ የሚደርሰውን
ኪሳራ/ጉዳት ለማካካስ በግዴታ ገቢው ባንክ የሚስጥ
የቃል ኪዳን/ የዋስትና Wነድ ነው፡፡

• ዋስትና የውጭው ባንክ ለተጠቃሚው ክፍል

በቀጥታ የሚገባለትø ወይም የአገር ውስጥ ባንኩ
ሙሉ Ïላፈነቱን ወስዶ ለተጠቃሚው የሚሰጠው
የዋስትና ®ይነት ሊሆን ይችላል፡፡
Commercial Bank of Ethiopia - TS Advisory and Training 81
 Direct /Without/ Guarantee
• This type of guarantee is advised to a
beneficiary through advising bank without any
engagement or responsibility on the part of the
advising bank, but that bank shall take
reasonable care to check the apparent
authenticity of the guarantee.

Parties involved under Direct Guarantee

 Principal
 Issuing bank/Foreign bank
 Beneficiary
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Commercial Bank of Ethiopia - TS Advisory and Training
 በቀጥታ የሚሰጥ ዋስትና
• የአገር ውስጥ ባንኩ ከውጭ ባንክ የተቀበለውን
የዋስትና መልእክት ምንም Ïላፈነት ሳይወስድ/
without any engagement or
responsibility/ ለተጠቃሚው ክፍል በቀጥታ
የሚያስተላልፈው የዋስትና ®ይነት ሲሆን ø ባንኩ
የመልዕክቱን ትክክለኛነት /authenticity/
ማረጋገጥ አለበት፡፡

• በዚህ የዋስትና ®ይነት የሚካተቱት

– ሻጭ / ዋስትና ሰጪ
– የሻጪው ባንክ/ዋስትና ሰጪው /ግዴታ የገባው ባንክ
83
– ገ∙/ዋስትና ተቀባይ
Commercial Bank of Ethiopia - TS Advisory and Training
 Indirect /with/ Guarantee
• This type of guarantee is issued by the
beneficiary’s country bank (issuing bank) with
full responsibility/ engagement based on the
principal’s bank instruction.

Parties involve under Indirect Guarantee

 Principal
 Instructing bank
 Issuing bank/Local bank
 Beneficiary

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Commercial Bank of Ethiopia - TS Advisory and Training
 ቀጥታ ያልሆነ ዋስትና
• የአገር ውስጥ ባንኩ ከውጭው ከዋስትና ሰጪው ባንክ
የተቀበለውን የዋስትና መልእክት ሙሉ Ïላፈነት ወስዶ/ with
full responsibility/ engagement ለተጠቃሚው
ክፍል የሚሰጠው የዋስትና ®ይነት ነው፡፡

• በዚህ የዋስትና ®ይነት የሚካተቱት

– ሻጭ / ዋስትና ሰጪ
– የጠለፋ ዋስትና ሰጪው ባንክ
– የገ∙ው ባንክ/ዋስትና ሰጪው /ግዴታ የገባው ባንክ
– ገ∙/ዋስትና ተቀባይ
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Commercial Bank of Ethiopia - TS Advisory and Training
 Types of Guarantees
Bid Bond a guarantee issued by the bank in favor of
beneficiary in the event that the bidder withdraws from the
bid during the bid period or fails to accept the award when
he/she becomes the winner.
Performance Bond a guarantee that the bank issues
in favor of beneficiary in case the applicant fails to the
perform his obligation in accordance with the terms and
conditions of the contract.
Advance Payment Guarantee, a guarantee
issued in favor of the beneficiary (who makes the
advance) to repay the sum incase the applicant fails to
fulfill the obligation as per the agreement

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 የዋስትና ®ይነቶች
• የጨረታ መሳተፊያ ዋስትና ተጫራቹ የጨረታ ጊዜው
ሳይጠናቀቅ አቋርጦ እንዳይወጣና ካሸነፈም
የመልካም Jራ አፈጻጸም ዋስትና አላቀርብም ቢል
ለአጫራቹ ክፍል የሚገባ ዋስትና ነው ½½

• የመልካም ሥራ አፈፃፀም ዋስትና ተጫራቹ በገባው

የመልካም Jራ አፈጻጸም ውል መሰረት ግዴታውን ባይወጣ
ለአጫራቹ ክፍል የሚገባ ዋስትና ነው ½½

• የቅድሚያ ክፍያ ዋስትና ደንበኛው በቅድሚያ ለከፈለው

ገንዘብ ተገቢውን እቃ/አገልግሎት ማግኘት ባይችል
የከፈለው ገንዘብ እንደሚመለስለት የሚገባ ዋስተና ነው ½½
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 …Types of Guarantees
Loan Guarantee a guarantee issued by foreign bank in
favor of a local bank (who grants loan) to pay the amount
in case the borrower fails to repay the sum as per the
agreement
Retention Guarantee a guarantee issued in favor of
the beneficiary in order to release the retention to the
applicant
Customs Duty Guarantee a guarantee issued in
favor of customs authority that the goods imported without
payment of customs duties are not re-exported
Payment Guarantee a guarantee issued by foreign
bank at the request of a local bank to pay the amount in
case the applicant fails to pay the agreed upon amount on
installment basis 88
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 …የዋስትና ®ይነቶች
የብድር ዋስትና፣ የውጪ አገሩ ባንክø አገር ውስጥ ላለ ተበዳረø
የአገር ውስጥ ባንኩ ብድር እንዲሰጠው
የሚያዝና ተበዳሪው ባይከፍል ብድሩን
እንደሚከፍል የሚገባ ዋስትና
የቀሪ ክፍያ ዋስትና በማስያዛነት የተያዘው ገንዘብ ከመለቀቂያ ጊዜው
በፊት ለአመልካቹ እንዲለቀቅ የሚገባ
ዋስትና
ለቀረጥ ተከፋይነት የሚሰጥ ዋስትና ቀረጥ ሳይከፈልባቸው
ለJራ ጉዳይ ወደ አገር ውስጥ ለገቡ አቃዎች
ግዳጃቸውን ጨርሰው ወደመጡበት ባይመለሱ
የሚጣልባቸውን ቀረጥ ባንኩ ለገቢዎችና ጉምሩክ ባስልጣን
ሊከፍል የሚገባው ዋስትና
የክፍያ ዋስትና በ installment ክፍያ ለሚፈጸም ግ∙ø በአገር ውስጥ89
ባንኩ ጠያቂነት የውጪ አገሩ ባንክ ለሻጩ
Commercial Bank of Ethiopia - TS Advisory and Training
 Guarantee in relation to International Trade
• Import
– At time of paying in advance for the amount exceeding USD5000
– International competitive bid for the amount of USD1000000 and
above
– Bid bond
– Performance bond

- Payment guarantee/guarantee in relation to import of goods/

services which payment is to be handled on installment basis

• Export
– At time of receiving payment in advance
– Guarantee requirement in relation to quality of the shipment/goods
– Bid bond participation for export items (call for tender in foreign
country)
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 ከ®ለም አቀፍ ንግድ ጋር በተያያዘ የሚሰጥ ዋስትና
• ገቢ ንግድ
– ከአሜሪካን ዶላር 5000 በላይ በቀድሚያ ሲከፍሉ
– ንግድዎን በሚመለከት ከአሜሪካን ዶላር 1000000 እና በላይ
የሚያወጣ ግ∙ ለመፈጸም ®ለም አቀፍ ጨረታ ቢያወጡ
• ጨረታ መሳተፊያ ዋስትና
• የመልካም ስራ አፈጻጸም ዋስትና
- ለሚገዙት ዕቃ/አገልገሎት Installment ክፍያ ለማድረግ ቢስማሙ

• ወጪ ንግድ
– ቅድሚያ ክፍያ ሲቀበሉ
– የምርት ጥራትን በሚመለከት ዋስትና እንዲሰጡ ሲጠየቁ
– ንግድዎን በሚመለከት ®ለም አቀፍ ጨረታ መካፈል ቢፈልጉ
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 Precaution on Letter of Guarantee
Importer
Performance bond
– Check the content of guarantee against the contract
agreement.
– Apply for amendment if the above conditions are not
fulfilled
– Be sure that you meet the claim conditions at time of
lodging
Exporter
– In order to avoid unfair calling, be sure not to state
ambiguous conditions at time of issuing the guarantee

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 የዋስትና Qነድን በሚመለከት የሚደረግ ጥንቃቄ
አስመጪ
የመልካም Jራ አፈጻጸም ዋስትና
– ዋስትናው ከተፈራረማችሁት ውል ጋር መስማማቱን ማረጋገጥ
– ከውሉ ጋር የማይስማማ ሁኔታ ካጋጠማችሁ ወዲያውኑ
ማስተካከያ ይጠይቁ
– ዋስትና ሰጪው ግዴታውን ሳይወጣ ቀርቶ የይከፈለኝ ጥያቄ
ማቅረብ ቢኖርባችሁø ጥያቄያችሁ ዋስትናው ላይ በተገለጸው
መQረት መሆኑን እርግጠኛ ይሁኑ
ላኪ
– አላስፈላጊ የክፈሉኝ ጥያቄን ለማሰወገድ የዋስትና ሰነዱ አሻሚ
የሆኑ ቃላቶችን እንዳይዝ ጥንቃቄ ማድረግ

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WE HOPE YOU HAVE ENJOYED THE TRAINING,

WISH YOU A NICE AND PROSPEROUS

BUSINESS YEAR !

THANK YOU

KEEP IN TOUCH

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 Precaution on Import documents
• Company’s current address should clearly be shown on the forms
(Application for L/C, Foreign Exchange Application for import ) while
applying for import

• Import of food items, needs certificate from the Ministry of Health of the
exporting country

• If the importer deals with Sole exporter no need of launching

competitive bid

• Pro forma Invoice showing full description of goods including quantity,

grade, quality, measurement, terms of shipment and mode of payment.
unit and total price of goods at a named place of delivery
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Commercial Bank of Ethiopia - TS Advisory and Training
 … Precaution on Import documents
Import under L/C modes of payments

• When you need to apply for confirmed L/C, be sure that

the commission is to be covered by the exporter

• On import application
• Expiry date
• Shipment date
should be filled by counting the exact date and mark as
dd/mm/yy ( 01/07/11) not like 90days,…

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 … Precaution on Import documents
Import under CAD modes of payments

• List all required documents and your bank full address on

the purchase order P/O and instruct your customer to send
original documents directly to your bank

• Shipment of goods should be done after purchase

order (P/O) approval. If shipment is
- Prior to P/O approval shipment done with 1-10 days
- Since P/O validity is 90 days, for shipment to be done after 90 days
customer should apply for extension before the expiry date

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 … Precaution on Import documents
Import under A/P
•Supplier’s full details including his bank name
and correct account number will ease payment

• For the amount of import up to USD5000, the

customer’s full undertaking for the arrival of the
goods is required

•For the amount more than USD5000, foreign

bank guarantee should be presented

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 Precaution on Letter of Guarantee
Common phrases that needs special attention on :-

*Text of guarantee
…this gtee will become operative upon issuance of L/C within 2/… some
short no. of days/ working days from our issuance date.

… this gtee shall expire upon the arrival of goods at Djibouti port/ upon
presentation of shipping document

.. the gtee amount shall be reduced automatically upon the arrival of

the first shipment at Djibouti Port

… the gtee amount shall be reduced automatically upon presentation of the

work performance by the contractor

… this gtee serves only for delivery purpose 100

commercial Bank of Ethiopia - TS Advisory and Training
 … Precaution on Letter of Guarantee
Common phrases that needs special attention on :-
* Conditions on guarantee claims
… upon claim presentation, the beneficiary should attach
documents/ reminders that was given to the supplier
regarding the non-performance/ extension of the gtee.

… the claim letter should show both parties agreement

signature

… the claim letter should state the exact wording/ Claim

statement shown on the gtee
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