The methods of payment practiced in international import export business in Ethiopia are Letter of Credit (LC), Cash against Document (CAD), Telegraphic Transfer (TT) and Advance Payment. It also contains documents to be included in a letter of credit and specifically in an LC opened through Ethiopian banks.
An importer who wishes to import goods to Ethiopia should pay through commercial banks. All payments above USD 2000 should be made through Letter of Credit or Cash Against Document. Pre shipment inspections apply for all imports from China.
Businesses that wish to export from Ethiopia should know the export procedures needed to obtain export permit by commercial banks; should prepare Application for Quality Testing and Certification to obtain Export Authorization Certificate from the Quality and Standards Authority of Ethiopia; should fill the Customs declaration. We have included all these export procedures in Ethiopia and also the VAT registration for exporters from Ethiopia and VAT rate applied on goods exported from Ethiopia.