Pre-Shipment Inspection Scheme Establishment Proclamation (No. 173/1999)

1. Short Title Ii' h 6J.1"C C iJ II This Proclamation may be cited as the "Pre-Shipment f.O h'P:~" "f:"!:OD 6J.b~:"9"CODt. P'Cq..,. 1IIIcJ:cJ:tPJ..1 Inspection Scheme Establishment Proclamation t\'P:(- -h11'C jif.<fr./H!f.:~Ii" "'0(1"" lLm+ll f.":f'I\A:: No. 173/1999." ,f')-'=- If';J J'40 .,;Jt.}- ;JlI.llJ 7'..".4:. ita.1! Unit Price Negarit G.P.O.Box 80,001 .,~ jii(2j Uut.l\ ~:M"" ;JJLIfJ cft'l'C ~i eUt +, lulU '.r. Federal Negarit Gazeta - No. 56 15thJune, 1999--Page 1056 g. ,.,.C=\ "'L 2. Definitions (ULtJ 1\'P:E- t&hT; In this Proclamation: i' uh"11J'" "7/\"" h001"'1r"";JC n"7.~l"'l t&A w~ 1) "Company" shall mean the body which, in accor- 1\. :"r-k.f ~9'"?oh hAA n"7. 10- {):J>sP"f 1\" ':".('00 dance with an agreement to be entered into with the -T'~"" 9'"COOt. f"7..f1.C"'I .('c:E-"" ~t&; government, carries out pre-shipment inspection on g. uf1-9'"?oh hAA" "7/\"" f~9'"?oh ll/\rA1I)11 goods to be imported into the Customs Territory of 'h11.1'i /\"7**9'"'i 1\lPt.?01 /\OOWc"t1 nWII)t& Ethiopia. 2) "Customs Territory" shall mean that which is 1\'P:E- ckTC ~/Tli 1\1.,.;r g(il) f.,.oo/\h"'t& ~t&I referred to under Article 2 (9) of the Re-Establish- U{):J>" f' "7""" "7'iTt&9'" if+T ",,1f11 ntLtJ 1\'P:E- ment and Modernization of Customs Authority 1\,+;r i '.,.Ultl?O"",1\,.u.1.9'"C9'";. Proclamation No. 60/1997.

9.' ut&A" "7 it T ':".('00 -T'~,.,. 9'"C00 t. 1\1A"'I/\-,.,. 3) "Goods" shall mean any commodity but does not it"7"'1or,.,. nfID1"'1r""'i nh-1l1.ft& oot)hA f"7.1.l"'l include those listed under Article 6 of this t&A ~t&; Proclamation. ~. u''''''.'l.1\ '9'"COOt. "'I~"" tTC""" "7/\"" h-1l11t& 4) "Contract" shall mean an agreement entered by the government and the company for the performance of ':".('00 -T'~T 9'"COOt. t)t)~1. n~1\ f9'"coot-t& pre-shipment inspction service. t&m."" 1\T;J(t il/\OOIf~ '''7.c''tmt& '9'"hhC 5) "Clean Report of Findings" shall mean a certificate W l+"" ~t&; issued by the Company in confirmation of the U i' .('C.('C f"7,.1.l"'ln"" f9'"coot. "'I~T tTCT" satisfactory result of the pre-shipment inspection. "7itT h-1l11t& ':".('00 -T'~"" 9'"COOt. t)t)~1. n~1\ 6) "Non-Negotiable Report of Findings" shall mean a '9'"COOt-t& t&m."" 1\T;J(t hl\/\OOIf~ /\1\h.t& document issued to. the exporter by the Company f"7.c"tmt& c"t~.(' ~t&: whenever the pre-shipment inspection results in an ~. upC.(''' "7it"" f4.,lot./\. 1(tsP"f PC.(' ~t&; unsatisfactory result. 7) "Board" shall mean the Federal Revenues Board. ~. u1"'1.(' 111h" "7/\"" n1\. Tr-A-1 t&ilT .,. L:" ,./\ T 8) "Commercial Bank" shall mean private or govern- '''7.lPt. '"'IA W"9'" f001"'1r"" 1"'1.(' 1l1h ~t&:: ment bank licensed to operate in Ethiopia. ,.,. L~ "7. ~,.,. wc"t1 f' 3. Scope of Applicability (lILtJ 1\'P:E- oolPl"" '''t1.l1t& ':".('00 -T'~"" 9'"COOt. Pre-shipment inspection to be carried out in accordance (lILtJ 1\'P:E- 1\1+;r i nA" 1J-o~:1'h.,.oo/\hi:"" nil.,..,.C with this Proclamation shall apply to all goods imported n"7'iTt&9'" w~ 1\.,.,.r-A-.f~9'"?oh hAA nlll/..10- {):J>sP"f into the customs territory of Ethiopia except those treated 1\" IJ-o'""'L~III/.. ,.1f'iA:: with special conditions under Article 6 of this Proclamation.

9.' f:".('oo -T'~ T 9'"Coot. "'110:1'h/\ 00 If ~

4. Requirement of Pre-shipment Inspection i' "7'i:r:t&9'" W1. 1\.,.,.r-kJ' f"7.l\h {):J>n"7=\=\"tr 1\" 1) All goods to be imported into Ethiopia shall be hoo651~ nk"" ':".('00 -T'~"" 9'"COOt. ,.1. l"'ln:1'AII subject to pre-shipment inspection. Accordingly, h/\If~9'" "7'iTW-9'" 1\hoo",l" w"9'" {):J>sP"f1 W1. any Importer or any person who exports goods to 1\.:'-r-k.f f"7.Ah c"tl&w"9'" .('C:E-"" f:".('oo -T'~"" Ethiopia shall ensure that pre-shipment inspection 9'"COOt. '.,.1.l1 00.r~1 f"7l;J1T"'I1o:1' 1\/\nTU . has been conducted. g. (lILtJ 1\1+;r 10-h 1\1.,.;r (i) ,.,.1. ~11t& (t'iC9'" 2) Notwithstanding the provisions of sub-Article (1) of {):J>t& fill/..6511 n"" ~,.,. this Article if the Country of shipment has special 1\1 C f:".('oo -T' 9'"C 00 t. law concerning pre-shipment inspection, the '''7.t)~.('nT1 rC~T n"7_oo/\h"" f.,./\' ih"'l1/\t& execution of pre-shipment inspection shall follow ",,1f1: f9'"coot.(J). 1\4C_KK9'" flL.f1 1\1C ih"'l the existing law of that country. flll/..h.,.A ,.If'i A::

5. Coverage of Pre-Shipment Inspection ~. f:".('oo 6f.1"~""9'"coot. 'li~1 Pre-shipment inspection conducted on goods to be w1.1\.:'-f-k.f fDIJ.1'1 ().4> 1\" f"7.1.l1t& f:".('oo ~~,.,. imported into Ethiopia shall cover: 9'"COOt. f{).4>w'1~ I) price and exchange rate verification; i' 'P;J "-'i f9'"111&t&1 "'001 ""hh/\~~""I 2) quality; ~. 1'1"."": 3) quantity; .n II"": 4) packaging; f.' f 1',il .,. 7i'if"'l IJ-okJ-: 5) Tariff classification. !!. ?;. f;J-ottt:9'"1.'1: 6. Exceptions f"7.oo/\h')- ,..r'iA:: Pre-shipment inspection stated under Article (4) of this Proclamation shall be conducted in accordance with the i' A" 1J-o).;"sP":f- following special conditions regarding goods specified n1\1"'~' !~ oolPl"" f"7_'.l1t& f:".('oo ~~,.,. 9'"COOt. herein below: hlLtJ n;'-:-''' f.,.UlU?o:"1 IH-oo/\h.,. n"7.h.,.,..,.,. A" ~'" 1J-o).;J-osP:-"-f"7.4C.K9'" ,..r'i A: 1K" liitB u.t./A ~;J~"" ;JfLIfI +'TC 21 ,n. ~ +1 !UUli ~-,.- Federal Negarit Gazeta - No. S6 lSIhJune, 1999-:-Page IOS7 I- iJ?,,'f 1) Goods , fhn"- IDC:.}» UfliJy,,-'i:'"fh. "'I'n-o m-m."''f. Pre-shipment inspection shall not be undertaken on ~tt:y,,-tt: ",,:,. ~'i f,'-tlJt. T:"~lAf'" L 1:("'f. Cr;r..,.r;r- gold, precious-stones, objects of arts, crude oil and ~'i ~ "'LrJ. m-m."''f. 'I'u'f. ftnC OO"'I~ refined petroleum, explosives and pyrotechnic .,,,r;r-, Am:J-1.t.'e h11A..,A-:" f"tm-~ h.A-'f iJ?,,'f' feft,. ~1""':'" :"h-" ~'i f.,.".,.". tt:t.tt: products, ammunition, weapons, other military t.."r;r-: h:"hlA:": ''''1'1' JP;Ji :"h-" iJ1eftl\lAiaNSrf: equipment, live animals, fresh, chilled or frozen -ol:" -ol"''f. mr}»:J-'e;JILtIJ"'f ~'i OO"th..,.'f. fruits, vegetables, fish and meat, fresh eggs, scrap uy.cc.M." 11A1A "'''lihc'''~1 £L1."~ ffl.:" m-,,'I' metals, current newspapers and periodicals, fer- ~'i f..,1A OO11A1.'iJ?,,'f. nr":J- fl.:" nh-IA tilizers, household and personal effects including a f"toom- 'I't}»f\-'f ID"" f1"'~ 'illD-'i"'f fr}»~oo used motor vehicle, post or commercial samples. ."..,..,- "Coot- h,,1.l..,I1:fm-"1I 2) Value I 'P;J (a) Pre-shipment inspection shall not be conduc- V) nT~G:C"7 1\.1ii"" 1\" f"'OOAh.,.m- ted on consignments with a F.O.B. value in f1..tt:ltl1. 'P;J:~tD- Iif. fh"l~"" ,.I\C ~'i proforma invoice or indent or purchase order hilI n:J-r;r- fl'). iJ?,.'f ft}»~oo ."..,:,. of two thousand or less United States Dollars rCoot. h"'.l""I:fm-,.., (USD 2,000). A) nh1~ fGI1': "'-iJ"1' "'11,.,.m- m1.h1C (b) When goods purchased by a single purchase f"t1n- iJ,+,,'f '''h4-tt:Am- f"tl\h- l1..", order are imported in smaller quantities, pre- n~.".cc'~ htt:IA4-" 'r~tt:C"7 1\.&f"'OOA h.,.m- f1..tt:J.11.'P;J Iif. fh"l~"'"} ,.I\C ~'i shipment inspection shall be conducted on hIL.' n:J-r;r-n_""}" ft}»~oo ."..,:,. "Coot. them, even if the FOB value on each proforma "1.l..,n:J-IA:: invoice is 2000 USD or less. m) f1CJJ.fUU' h"}"''' "}O-"h1"''' (I) f"'OOA (c) The Board may increase or decrease the h.,.m-1 f1"}"-o oom1 htt: m",. 1,t}» amount specified under sub-Article (1) of this ft.11.C.., ,,'fl\1A1I Article. r.- Af.IAf. 3) Miscellaneous I- tULU n:,.r;r. f"'OOAhi::" fr}»~oo ."..,:,. 1) Pre-shipment inspection shall not be carried "Coot.h"'.lGI'F~m-"1 out on: V) f-\Tf\-"7of:h'i ff11f\-I\C "tl1.f-'.'"'f (a) goods imported by diplomatic and con- ~"}-\V-9uf""ln,,-:" oo1..,JP:J-:" 1Af.1Af. sular missions as well as specialized h"'I\:" ~'i fhtt:~'" h1~":" ~C~:,. m1. h1C ID-"'I' f"t.'''10-'P:fm- AJPt.:fm- agencies of the United Nations and the f"t.'''~_IA:}:':m- iJ:J»,,'f1 Organization of African Unity for their A) n~c.cc.'" f'''1'f. "7'i:fm-,. iJ:J»"'f., official use, I- f1C~ nrl: ,.h"}.':" l1..'1:OSl lULUh"}"''' nlAf. (b) any goods obtained as donations. rJ.k:J- f"'OOAhi::"1 iJ?,,'f ,,,.,:,. ID"" 2) The Board may for good cause issue special ft}»~oo ."..,..,- "Coot.m-1 hL~~" n"too directive concerning types of goods to be f\h:" f.,.Af OOOO~.'ft.llDtIJ ,,'fl\IAJI treated exceptionally in accordance with this i- nh..,.c J.tt: ht..Jl:" m,. h1C: f"t10- iJ:J»,,'f ft.h"'~:" Article and concerning the manner in which pre-shipment inspection may be carried out. f"t1'lm- fhL~~" JPC':" i- h"OO'L1.ID-h..,'C:lttt: ht'.Jl:" ~1-\hL:"A:" f"t1 7. Procedures for Importation of Goods Through The "'enm- "7OOlAh!f.fiJ.+m-1 ''''':''1 'I't.:"1 -0":"1 Opening of Letter of Credit(UC) f"ml\ 'P;J ~'i mt}»I\I\ 'P;JI f"7".nIi~m- m'L1. 1) The Importer's UC application shall state the type, fiJ,+m- 'P;J h"}~ htt:1A h.,., fiJ?m- oo"~ quality, quantity, unit price and total value, and fl'''m-"} h1C f"t.'OOAh:" oo."hAn:".' freight charges if it is included in the value of the I- h.','e lttt: ht..Jl.}- f"thtt:.,.m- 111h f"th"'~:"1 .,.~u,(, rJ.k:J-"r;r-: goods, as well as the country of supply of the goods. V) iJ.+,,=': f.}»y".oo ."..,:,. "Coot. f"7.,OOAh 2) The UC opened by the Opening Bank shall include :":(-m- Obi')."}: the following additional conditions: A) h"OO'L1.m-fh..,.C J.tt:ht..Jl:" (a) that the goods concerned shall be subject to "''''11'' A.,.,m- (am- m",. ~e~:" iJ?,,=': fr}»~oo ."..,:,. pre-shipment inspection; "Coot. ft.'-l..,I1:fm- f"t111 "Aoo.,). (b) that the importer shall inform the recipient of 'U'.-o.ccfl.m",. 'N:h.h" "7":J-mr}»~11."t the LIC through a letter or by telex that the 1'Im-i goods are subject to pre-shipment inspection; m) fh.'''C J."~ ht'.Jli: "''''11'' fr}»~oo ."..,:,. (c) that the recipient of the UC shall be responsible 9UCoot. ~ "}-\.''''t~ Ah-111.'m- hOO=l:rJ.k:J- for facilitating the inspection of the goods by foott:mC ;)I\~":" ~1.ccAn:"! (0) h..,.C J.tt: ht'.Jl.}. f"thtt:.,.m- l1"}h htt:1 the company; (d) that the Bank shall make payment only upon f"t~_"oom' f~'L1J fOO£L1.l~ fhtt:1 ODmfct.' (a"y,,- ~'i nh'I1"}Im- m",. receipt of the seller's final settlement invoice nlDh.f\-=': f"'l;J1m'i f"'''.7.1\ f"Coot. ..,:os:,. and a Clean Report of Findings confirmed by (,;rc:" l1.1.C(am- the company or its affiliates or agents. ~11.""1 nh.'''c It,.~ ht'.Jl.t: m-,,'I' "7OOlAh:" hAn:"JI 1~ liif.:I~ J..1..IAA ~;J~'''' ;J,LII, ch1'C :Ii (}~ ~ .,., lilU 't.,.. Federal Negarit Gazeta - No. 56 15111 June, 1999-Page 1058 f.' nh.')'f'k,f fIP/:,.fco- fh.fl11CO- 1\1'1~ ,./0.:" 3) The Liaison Office of the Company in Ethiopia shall l\..,'C ,,~ ht..Jl":1 'h'l fif,"1 fTC't.':C"7 (t'1'(- collect copies of the UC and' seller's proforma :,.~: l\..,.C ,,~ ht..Jl:" h"7..h~"'co- fl1h ,.ml\.c;AII invoice from the Opening Bank.

9.' fh,'I',fCO- 1\1'1~ ,./0.:" fl\..,.C ,,~ ht..Jl-f:1 :":( 4) The Liaison Office of the company shall register the OD1,"'lf1 m1. 1\1C f"7..1f1 f~tIt' iJJ' I\f\OD'r~ UC and issue an hnport Advice Note to the importer IIIJI\:rm~,f f\"I\OD'L).CO-'h'l 1i1'1;1; n.,.h'lm'1n:" and to the company's inspection Office in the country 1\1C f\"7..11m- fh-'I'.fco- ,./0.:" ,..M1AII of sale. ?;. 1i,ft.lJ: n.,.h'lCD'1n:" 1\1C f"7..11CO- fh-fl11CO- 5) The Inspection Office in the country of sale shall ,./ (L')- f9"COD(.. IIIJI\~CD~.f f\iJJ'co- 1\~Y . i send an advice of inspection requirement to the f\"h.m- CD"9" f\ift.lJ: "AI1AII shipper, consignor or seller of the goods. i' if t.lJ: 9"COD(..CD'h"7..I1th..(-n:" (tfl:" ~1 ~1.9" 6) The seller of the goods shall advise the Inspection 111\" 9"COD(..m. fIP/.I1th..(-n:"1 ~1'1 (l~ f\h-fl Office of the date and place of inspection and send 1,fw' ,./0.:" .fl\:rco-J'Af 1\..,fll1 .f":fCO-1 the documentation to the Inspection Office giving at (t'1'::;-9" ,.A I1AII least seven(7) days advance notice. ~. h'UJ n",. f"'ODf\h.,.co- (t'rC9" if'l;1;.m1. 1\1C 7) Notwithstanding the above provisions the seller may fIP/.1CIf~"" iJ:P I\f\OD'r~ IIIJI\~m~1 hOD.(-l.(). request the Inspection Office to perform an inspec- nt.'). fh-cl'.fw- ,./0.:" niJJ'SJI:f ",. 9"COD(.. tion prior to the receipt by the Inspection Office of 'h1Jl.f1.C'" f\.m":" ,.:f"A; "0.1 'h1:( IIIJI\~m the Import Advice Note. However, no Clean Report ~.fW' hOD'(-l.(t- nto"'- n.,.1-l.1 9"COD(..f.,.',,,, of Findings can be issued until the hnport Advice f9"COD(....,~:,. (.;rc:" f\.(t'l' 1\,.:fA9"I: Note has been received by the Inspection Office. ~. fh,'I1.fCO- ,./0."" niJJ'SJI:f ",. 1\11"«£9"COD(.. 8) The Inspection Office shall perform the physical ,f'.C;JA:: (lIUJ9" 9"COD(.. 1\1IIJ11~'1:" f~('~ inspection, verify the declared tariff heading 9",.llw'1: fiJ,cj>w'1 'P;J 'h'l l\.f\":f9" fiJJ'co- (HS no.), verify that the invoice value and other m:""" 'P;J 1\11.- h~A fIT). m'L).SJI:f iJJ'co- elements of the total amount charged by the supplier nIP/Ahn:" 1\1C f\W-'L1. 1n.f f\"7..~Cn- "'ODl1l1" correspond, within reasonable limits of the export iJ,cj>~':i-h"7..mf.,.m. f1n.f 'P;J ;JC "''''(..t..(t market price level generally prevailing in the country ODI').1 m,.9" "'t_~"7.. f\.IT1 'hl\hEFf\ .(-l.1\ h~f\9" of supply, or where applicable, the world market, f1n,f 'P;J ;JC f"7.."'('.l.l1 ODIT)'1; 'h1Jlo.9" and verify that the quality and quantity of the goods fiJ,cj>W- '1'( ,- 'h'l ,nl''''' n..,yco- CO-A ODIPl.:" 'h'l correspond to the specifications of the purchase nh.')-f'k.f i'h-)':i- f"'ODf\h.,.co-1 f"7...f""" ODIT)'1 contract. .f l.:.J"',1fJ A II 9) The Inspection Office, where satisfied with the it. fh-cl1,fco- ,./0."'- n9"COD(..co-1\'I';J(t co-m.:" results of the inspection, shall issue a Clean Report . of It..f1~ f.,.",," f9"COD(.. ..,~:,. ('7'C:" f\if," Findingsto the Seller. ,.(tIlIA:: 10) The Seller shall submit its final settlement invoice !. if(.Lb hh-cl'.fW' ,./0."" f.,.(tmco-1 f.,.",," and the Clean Report of Findings to the Advisiugl f9"COD(.. ..,~..,. ('7'C"" 'h'l fOD"-lol.if fh~.f Corresponding (AlC) Bank; and the Advising Bank ODmf.t.fl1'1~ 1 l\..t-C ,,~ ht..Jl-f: f\1.l.(tco- fl1h shall send documents and the final settlement ,.(tIlIAi cl1h-9" "tJ1~. (t'1'(- l\..,.C ,,~ ht..Jl-f:1 invoice to the Opening Bank. f\ht.,t-w- c11h "AI1AII

8. Procedures for Importation of Goods Effected Without a ~. hl\."'c"~ hl..-'l"" CD-'L).m1- 1\1C 1\f\"7..1n-iJJ'SJI:f Letter of Credit f:".(-OD 6£1>'1"" 9"COD(.. 1\t.~~9" ,...C~:,. . The following procedures shall apply to goods imported hl\.."c 1,('': ht..Jl"'- W"L). m1-1\1C f"7..1n- iJJ'SJI:f without a letter of credit: fIP/_h,,'f\-"'-1 f1\t.~~9" ""C~"':f ,.h.,."l\-f 1) The importer shall submit written details of his Ii' t,I\OD'L).m- m1.1\1C f\1IIJ1\1f1:" f"7..t.A;J:fCO-1 proposed importations together with the seller's iJ:PSJI':i-f"7...fl1" 1'C1'C hif(J;b fTC't.':C"7 (t'1'(- proforma invoice to the Commerical Bank. ;JCf\h.""~kI1"''(-fl1h,.(tIfJAp These documents shall have the following 'h'1lltJ (t'1f-.':i' fIP/_h.,.f\-"'-1 ODl.)fSJI:f flU- ODIT1 information: 1\f\ cP,:w-; (a) importer's name and address; U) f1\I\OD'L).W'1 1\9"'1 1\.(-(..if; (b) the Bank which will receive the Clean Report of f\) f"''''''' f9"COD(.. ""~:,. f"7..(tmco-1 fl1hf Findings; ",) ..,:rrm- f"'t_~ODn""'1'''11 ~"'1""f (c) currency of transaction; OD) m:""" CD'L1.'h'l f'1m" 'P;J; (d) value and unit price of goods to be imported; IP) iJ:PCD'f"'''hw- if," h"7..1~n"" 1\1C CO-'L1.. (e) country of supply if different from that of seller; hl''1 "tJ1~.: (t) name and address of seller; l.) fift.IJ:1 1\9"'1\.(-(..iff (g) type, quantity and quality of goods; (t) fiJ.cj>w-1 ~""""i '1'(..:"'1 111':"; (h) freight charges. if) flllJl\65j.;;:iD-1 CD'L)..: 2) The details specified above shall be submitted to the . I' hlltJ n",. f'N'l."~"" ODl.)fSJI:fiJ:Pco-h"7..1iIi1n:" Commercial Bank fifteen (15) days prior to the H; ..., .,.1.9" 11f\" f\11th.(..«£ fl1h OD'(-l.1\ scheduled date of shipment. 1\f\ cl:,:m-II 3) The hnporter shall, in advance, notify the seller or f.' if 1.1.1: (1)"9" "h.m. iJ,cj>SJI:r: nh-fl1.fCO- 'h1JlODl.OD~ exporter to arrange for inspection by the Company. 1\l\t.l\'l(l)-1 IIIJOD:J::':"" IIIJ.(-l..., 'h11-"7..1f1:fco- t,I\OD£M.w- 1\1\ (-'1" f\..fl1co-J':fco- "1f1AI: .,Jt liit!ii ~1.t..A ~;Jt...,.;JtLIIJ<tr'P{:!i .'11~ .,., IiiUji '.r. Federal Negarit Gazeta - No. 56 15thJune, 1999-Page 1059 ~. nh...,.r-k.' f"':tfm- fh.q"m- "1'1~ ,,/o.T 4) The Liaison Office shall collect the information men- lULU ",+" 'O-ll ",+" (Ii) f"'tI~"~T' tioned under sub-Article (1) of this Article from the 00~~1P"f h-flth.t.'e "'}h noom-lt~ 1iIQJJ n"'l.h'l Commercial Bank and issue an Import Advice Note to m'}n"" "1C f\"'I.1"fm- fh.q'}Im-,,/o.T "'I f\7fQJJ the Inspection Office in the country of sale and to the mswu f\"h.m- m1.""C f"'l.1q f:J-"tI 6Jo llf\oo""~ seller or Exporter. "'Ill:"mct.' "AI1A== S) The Inspection Office in the country of sale shall send an ~. 1i."LlJ n"'h'lm~nT "1C f"'l.1"fm- fh.Q"m- advice of inspection requirement to the seller or Expor- ,,/0...,. f?"coot. "'Ill:J-m-t1 f\7fQJJm"?,, f\"h.m- ., ter. "AI1A.. 6) The seller or Exporter of the gopds shall advice the i' 7f~ m"?,, "h.m' 9Ucoot.m- h"'l.I1~~nT ltQt Inspection Office of the date and place of inspection and +'} "".?" -flf\"?"c:oot.m. f"'l.I1~~nT' +''1 (1:J- send the documentation to the Inspection Office giving at f\h.I,'}.,m- ,,/0...,. .'ll:J-m'JoA, "..,Q-fl ''':fm-') least seven(7) days advance notice. lt~'."f?" "AI1A== 7) The Inspection Office shall perform the physical i).spec- ~. fh.I,'} .,m- ,,/0...,. n6Jo1P"f "11"Cf!?"coot. tion; verify the declared tariff heading(HS no); verify .'1.C;JA.. IULU9u ?"coot. """'II1~~T f:J-t.~ that the invoice value and other elem~nts of the total ?"1.',m''}, f6Jom- CP;1"'I Ibfto"f f6Jom- m:""" amount charged by the supplier correspond, within CP;1 reasonable limits, to the export market price level "'~ h~A fl')' m'u.1P"f 6Jom- n"'l."hnT "1C f\m-".. 1n.' f\"'I.+Cn- "'00""" 6Jo1P"f generally prevailing in the country of supply, or where h"'l.mf+m- f1n.' CP;J ;1C .,.+t.t.o. 00")" m"?,, applicable, the world market, and verify that the quality "'4.~"'I. ft.." "ilh;Ff\ ~~ll h,f\?" f1nl";J ;1C and quantity of the goods correspond to the f"'l."'t.~-fI OOI')',}: ,,'}.\.,.?" f6Jom- ...t.T "'I specifications of the purchase contract. -f"''''' n..,:rrm- m-A OOIP~T 00")" .'~;J..,tfJArr 8) The Inspection Office, where satisfied with the results of ~. fh.I,'}.,m- "/n.'}' n9UCoot.m- ""';10. m-m.T the inspection, shall issue a Clean Report of Findings to It..'1~ f.,.".'I." f?"c:oot. "'~T t.;rCT f\7fQJJ the Seller or Exporter. m"?,, f\"h.m- "lttfJArr

9. Other Procedures D' "'£1;1."'1(, f"4.~~?" P'C,.,.:r- 1) The procedures to be followed in the importation of Ii' n"'l'l:fm-?" 00'}1~ m1."1C f"'l.1n- 6Jo1P"f goods in any other way shall be determined by the ft.h','f\'T f"'l.1',m- "'(,Q."'It. f"4.~~?" P'C'T contract to be concluded between the Government nh.I,'}.,m. "'I nOO,}"'P'T ool1hA n"tf.~1m- and the Company. m'A "mlt'lAu 2) The procedural details to be followed in the impor- I' nlb"'c:"~ h~T m"?,, hlb"'C"~ h~T m-,u. tation of goods with or without UC shall be m1.V1C f"7.1n- 6Jo1P"fft.h"'~T f"'l.1Qm-lIC1'C determined by the foreign exchange directive to be f"~.~~?" P'C'T fh.Tr-k.' -flth.t.'e Q'}h n"tJ' issued by the National Bank of Ethiopia. mn,m. fm-".. ?,,'}IM oooot..' "mlt'lArr

10. Responsibility y. r. .~""" ~..,. 1) Pre-shipment Inspection shall not relieve the seller of Ii' 7f'''' n..,:rrm-m-A11f\.nT ..,1..:J-1P"f n:"~oo ""~T his contractual obligations to the buyer. ?"coot. ?"h"T ~~ "".,'}?".' 2) Pre-shipment Inspection shall not relieve the Impor- I' f:"~oo ""~T ?"coot. 001.~" "lloo'Ll.m- m1."1C ter of his duties or constitute as proof of carrying out m-ll... llf\ "'1.1n- 6Jo1P"f n Ibfto"f if,.,.."f f.,.tfJ f\n T'} such duties pertaining to the importation of goods ..,1..:J-f"'l..'ll.,.C m"?,, ..,1..:J-m-'}"'}1..,.mtfJ f"tJ'll imposed by other laws, rules and regulations. 4\...C "".,'}?"rr 11. Customs Formalities Iii' f","~h C:C"7ft.-I:"4.~~?" 1) No Customs Declarations shall be lodged in respect . Ii' UlLU"":Eo OOIP~'}'f:" ~oo ""~T "'coot. f\"'I.1.~ of goods subject to pre-shipment inspection before a ""'~fm' 6Jo1P"f f.,.".'I." f?"coot. "'~T t.;rCT Clean Report of Findings is received in accordance f?"llhc: m~"''''' ""'.Cll f,.?"~h C:C"'Ift.-I: with this Proclamation. f\00 ~.~?" .\ h" t.lt. f',} """.."?,,u 2) Goods imported into the country without a Clean Report of Findings shall be placed under the Custody I' f"'''.'I.'' ffOe?"t. ..,~..,. t.;rCT f?"llhc m~.,.:r- of the Customs Authority and appropriate action ""'=" t.:':m- m,. "1C f1n- 6Jo1P"f n,.?"~h Qf\P' shall be taken in accordance with the Customs AtfJ'} <II e P'{: m'f\m- n,.?"~h "":Eo OOIP~T "'10.m- "~.~?"I':t:CPA== Proclamation. r.. fH'~'.I\ f?"Coot.."'~,}, t.;rCT f"'OOf\h.,.m- 3) The sum of the value of the goods, insurance "" f6."'1P"'1.CP;1: f". '}a:t.'}ll "~(1' "'I f\"'I=\=\"tf premium and freight costs indicated in the Clean f'NI~.f\m' m'Ll. Y...?"C f,.?"~h +~"'' :J-hll Report of Findings shall be the basis for the . f\oomlt') OOIP~"""I''A.. computations of Customs duty and taxes. II' nh.l)'} .,m. "'I nOO'}"'p'T ool1hA llf\"'I.1.~'" m-A 12. Contents of the Contract to be Concluded Between the ""T Government and the Company nh.Q'}.'ID' "'I noo'}",p''''' ool1hA f"'l.'.~1m- m-A The Contract to be concluded between the Govern- lULU""mlt'} hlLUn:""'1'f'''''~''~'}',} 00.'1' "f\nT , ment and the company shall, without being limited to, have the following contents. 1X' Aif~ ~1.t.A ~:M"" ;JtLIIJ+''1'(: :Ii ...~ ~ +, Iunli 't.,.. Federal Negarit Gazeta - No. 56 15thJune, 1999-Page 1060 i f:".f.'oo -P~T "'Coot. f~~"'OT" 1IC1IC f1\L 1) Detail procedures in conducting Pre-shipment ~~,.. P'C'tTI inspection. I' h"I"J'm- i\"7..i'tmm- f:".f.'OO-P):" rCOOt. 1\1A 2) Inspection fee paid by the government for services ..,1\-:" f"'oo~oo~m-" iJ~ f1\Cj:.h.o. 'P;J OOIP~T rendered by the company to be fixed by negotiation n"7.f.'~'" noo"",p':" f"7..hLi\m-" O.f.'C.f.'C on the basis of the F.O.B value of the goods f"7..IDi't.,frCoot. 'P;J I inspected. f.' fh,'I.,.fm- f1\1A..,i\-T 'P;J hCj:1 f"7..arOT" 3) The way through which payment for Inspection OO"1.f.'I services is to be effected. §. fh,'I.,.fm- ~7"C:" ~tlT ,..., 0011''' ~.,.e;i\0:"'i 4) Specify the contents of the report of the company 0,..., .fIJA 1.ff. ~"""7.."'C'" f and the time of its submission. ~. h,'11.fm- ;)I\.t~":" O"'10.m- OO"1.f.' q~1D1IJ 5) The obligations of the company if it fails to f"7..'iCO:"" "'m.rct~T I discharge its responsibilities. i' f,..COOt.m- m-m.:" 1\"-;J0. O""l~II'''OT 1.11 6) The Non-Negotiable Report of findings to be I\i\"7..i't..- .f.'C.f.'C f"7~"~"'OT f,..Coot. ..,~:,. issued if the result of the inspection is not satisfac- ~7"C:"; tory. 1;' m-i\' ~.,.,. f"7..cJ~OT" 1.1111 7) The duration of the contract. If.' fm-A 1\1t.,..e;1.C 13. Administration oithe Contract Oh.q.,.fm. ~'inOO""'P'T oot)hA f"7..1.~1m-" m-A The Federal Revenues Board is hereby empowered to OO""'P':"" OoPIDhA f"7..LCoPm- ~'i fm-~" 1\1t.,. conclude, on behalf of the Government, , the Contract .e;"c f"7..oPt.m- f4..Y.t.A 10.9I'f PC.f.' ~1I''iA 81 with the Company and to administer the same. 1.§. hCj:1

14. Fees i' f:".f.'oP -P~T "'CoPt. .,.1.C1-q:fm- 1D1.1\1C 0"7..10- iJ~9I'f I\~ 1\ltoPQ.;).m- h,.r~h .,.~..-'i 1) The importer of goods on which pre-shipment ~hlt O"'gJ."7~ O"7..tItTCO'f rhc 0.:" 0"7..1Di't., inspection has been effected shall, in addition to the f"7lthLI Ah i\,,"'~h qi\P'AIIJ" f1\1A..,trT Customs duty and taxes, pay inspection service 'P;J ~hCj:I\A :: f1\1A..,trT 'P;Jm- f"7..i'tI\m- charge at a rate to be determined by the Council of 01,"'~h foP:"~Mol 'P;J I\~ ~1I''iA 81 Ministers. The service charge shall be computed on I' IULIJ1\.,.,." "o-It 1\.,.,." (i) f"'~1~m- 0.'fcr the basis of the duty paying value. f 4..y't.A 10.9I:r. PC.f.' oct ,..h., IT i't.11~ 2) Notwithstanding the provisions of sub-Article (1) 1\ltoPQ.;).m-h1\1A..,I\-T 'P;J hCj:1 O""'~ lD~r of this Article, the Board may, for good cause, Oh.tA ~~ ~ "'\11''' i\.L:".f.' ~'fI\A II exempt the importer from payment of inspection service charges wholly or partly. 1.~' foPif;J1~1 .f.''';J"I. IULIJ1\'P~ f"'oPi\h.,.m- f:".f.'oP -P~T "CoPt. 15. Transitory Provisions i' "'.'-~"7.. f"7..II'~ID' ~IJ 1\'P~ h~'iOT .,.., l."CO 1) The pre-shipment inspection to be carried out in tt..,.c hlf: ht.-'lT i\"7..hLTI\:fm- iJ~9I'f ~1I''iA II . accordance with this Proclamation shall apply to all ~IJ 1\'P~ h~'iOT .,.., O.t:" ftt..,.C hti: ht.-'l:" goods in respect of which a Letter of Credit is f,,.hL.,.I\:fm- iJ~9I'f .f:".f.'oP -P~T "CoPt. opened as of the effective date of this Proclamation. 1\~oPi\h~:fm-" :: ~v-., ~":( 1\'P:( f"7..~'iOT Goods in respect of which a Letter of Credit is .,.., ~'i hiLI" O~I\ Ott..,.C hti: ht.-'l-f: I\~ ""I7f7f1 opened before the effective date of this f"'1.~1 ~"1.II'~ iJ~9I:t: f:".f.'oP -P~T rcoPt. Proclamation shall not be subject to pre-shipment ~1.~..,q:f'PA II inspection. However, if the Letter of Credit is I' htt..,.c hti: ht.-'lT m-Q.;).ID1.1\1C f"7..10- iJ~9I'f., amended on or after the effective date of this OOlJ~oPi\hTOo.A hlf: 1\.Jl"'" ID~'" 01a.C~~ o.A Proclamation, the goods shall be subject to pre- f"'oPi\h.,.m- .,.., 1\'P:( h~'iOT .,.., O~I\ hll'~ shipment inspection. f:".f.'oP -P~T "'CoPt. ~1.~..,q:f'PA II 2) If the date indicated on the Bill of Lading or Airway Bill of goods imported without opening a Letter of Credit is after the effective date of this Pro- clamation, such goods shall be subject to pre- shipment inspection. :J(.'''' ;lILn, <h'PC ~i f1~~ +, Iuln ~'9'" ., FederalNegaritGazeta- No.56 15thJune, 1999-Page 1061 'I" iiif.t.ii 4..1-..t.fA .,..,. itl\"7~Cj t.:f:lD- if1',.."f 16. Inapplicable Laws I'k "'t..~"7. Any law inconsistent with the provisions of this hlltJ n'P~ ;JC f"7.""~~ if1',.."f 'ULU n'P~ f"'('ft..~ Proclamation shall not apply to matters provided for "~f-~" n"'OOl\h.,. .,.~c.~"7."""n~Cj t'TlD-9" II under this Proclamation. n'l':q: f"7-'~'in."f-.,., 17. Effective Date I~' This Proclamation shall enter into force as of the 15thday ~U n'l'~ h"'~ ~ .,., IiH~:~1! q.9'" 1.9"C':f1a'i ~11''i1AII of June, 1999. n.ltit nn'} (1~~ .,., Iilf.1i! q.9'" Done at Addis Ababa, this 15thday of June, 1999. p.!e ";Jf' 'l~~ ft\. ."f-f-kJ'~~t."'P. .ItqotJt.f1.1'P. tT-I1l\.tJ NEGASO GIDADA (DR.) PRESIDENT OF THE FEDERAL DEMOCRATIC Tt..ll~''''' REPUBLIC OF ETHIOPIA lIC?')Ct' M9" ""'folPl..f f:C~')- :1',foOO BERHANENA SELAM PRINTING ENTERPRISE