Import Procedures in Ethiopia

A. Licensing & Registration / Eligibility

Business registration and trade-licence
- Any legal entity wishing to import must first be commercially registered (under the Commercial Registration and Business Licensing Proclamation No. 980/2016) with the relevant body (federal or regional trade bureau).
- Following registration, the importer must obtain a trade/business licence (often via the Ministry of Trade and Regional Integration (MoTRI) or regional trade bureau) for the business activity.
- The trade licence must be renewed annually (or as required).
- For foreign investors or domiciled companies there may be additional registration (e.g., with the Ethiopian Investment Commission) if the import activity is linked to an investment permit.
Import licence / import registration number
- Beyond the business and trade licence, an entity must often obtain an import licence or registration number, especially for non-free goods. The U.S. Trade.gov guide lists “Import license” among required documents.
- The process has been decentralised historically (regional bureaus) but has also been recentralised: for example, in 2022 the MoTRI absorbed the import-export permit issuance mandate from regional authorities, shifting toward a digital federal platform.
- In practice some regions still operate regional import-licensing bureaus; you should verify which region you are operating in and whether the federal or regional bureau is responsible.
Minimum criteria / prerequisites
- Tax Identification Number (TIN) certificate.
- Commercial registration certificate and trade licence as above.
- Memorandum & Articles of Association (for companies) or partnership agreements, if applicable.
- For certain restricted goods: additional permits as described later.
- Bank account (local) and ability to obtain foreign-exchange authorisation (see section D).
- Note: There is no fixed uniform minimum capital requirement explicitly referenced for all import-traders—some sources mention a minimal capital (e.g., ETB 5,001) for registration purposes.
Registration of the import activity
- Once the business and import licence/permit are obtained, the importer may need to register the import order or consignment through a commercial bank or the foreign-exchange unit in some cases. For example, a permit or “bank permit” may be required.
- Records and documentation must be maintained for at least five years for post-clearance audit.
Restricted or prohibited goods
- Some goods are prohibited for import (e.g., used clothing, arms/ammunition under general private-import unless authorised).
- Some goods require pre-import permits (e.g., seeds, agricultural inputs, pharmaceuticals, chemicals) from the relevant regulator.
- Importers need to verify if the goods they plan to import fall into the “restricted” list and then obtain the applicable permit before clearance.

B. Documentation / Pre-import Procedures

Before importation the following documentation and steps must generally be completed:

Pro-forma invoice / contract of sale
- Fully describing goods: quantity, grade, quality, unit and total price, HS code, mode of transport etc. (This is often used in the foreign-exchange permit process).
Bill of Lading (B/L) or Airway Bill
- The transport document evidencing shipment.
Certificate of Origin
- When required (for tariff classification / preferential trade agreements).
Commercial Invoice
- Original invoice showing seller, buyer, terms of trade, CIF or FOB value, description of goods.
Packing List
- Detailed list of packaging, weights, volumes, number of packages.
Import License / Registration / Permit
- As noted above, import license or permit issued by MoTRI or regional bureau.
Foreign-Exchange Authorization / Bank Permit
- Authorization from a commercial bank and/or the NBE (for foreign-currency payments) before placing the order, in many cases.
Insurance Certificate
- Insurance coverage for shipment (often 110% of value) for import clearance.
Pre-Shipment Inspection Certificate / Clean Report
- Some imports may require inspection before shipment; customs may request “report of findings” from approved inspector.
TIN certificate, VAT registration
- The importer must hold a Tax Identification Number certificate, and be VAT-registered (or able to obtain).
Other regulatory permits
- If the product is subject to health, safety, phytosanitary, environmental or other regulatory control (e.g., pharmaceuticals, agro-inputs, chemicals, communications equipment) then additional licences or approvals are needed from specific agencies (see Section E).

C. Customs Clearance & Import Duties / Taxes

Customs declaration
- Submit the import goods declaration to the Ethiopian Customs Commission (ECC) or relevant customs office. This must include description of goods, tariff classification, valuation, importer details, transport mode etc.
- The customs authority verifies data, tariff classification, documents and may conduct inspection.
Payment of duties & taxes
- Import duties vary (0–35% depending on commodity) plus a Value-Added Tax (VAT) of 15% on most imports.
- Withholding tax may apply on CIF value; excise tax and surtax apply for certain goods.
- The importer must pay the relevant duty/tax before goods release.
Inspection / physical examination
- For risk-goods, customs may conduct physical inspection, examination of origin, quality, quantity etc. Additional regulatory agency inspections may apply.
Goods release
- Upon clearance and payment, customs issues a final declaration or release note; importer (or agent) takes receipt of goods. The importer must keep all records for at least five years.
Post-clearance audit
- ECC reserves the right to audit imports even after release (post-clearance verification of declarations, records, business systems).
Record-keeping
- Importers must retain all relevant documents (invoices, bills, permits, customs declarations) for minimum of five years.

D. Foreign Exchange / Payment for Imports

Foreign currency authorisation
- Due to Ethiopia’s foreign-exchange control regime, before importation the importer must often obtain foreign-exchange (FOREX) approval or permit from a licensed bank or the NBE for remitting payment abroad.
- The application typically requires pro-forma invoice(s), import licence, insurance certificate, bank permit, identification of importer and verification no outstanding forex obligations.
Priority classification and allocation
- For scarce foreign currency, the NBE has established priority lists (essential goods imports get priority allocation).
- Even with approval, delays may occur—some reports indicate importers wait months for foreign-exchange release.
Bank permit / foreign-exchange surrender certificate
- After clearances and upon importation the importer submits the final customs declaration to the authorised bank / NBE as part of the forex settlement process.

E. Restricted, Prohibited, and Special-Goods Imports

Prohibited goods
- Certain items may be completely prohibited (e.g., used clothing in some cases, arms/ammunition unless authorised).
Restricted goods – requiring special permit or licence
- Some categories such as: seeds/plant products, fertilizers, pesticides (Ministry of Agriculture).
- Medical supplies, pharmaceuticals, cosmetics, baby formula (regulated by the Ethiopian Food and Drug Authority – EFDA) and may require pre-import permit, registration on ERIS platform.
- Communications equipment, security gear may require permit from regulators (e.g., Information Network Security Agency).
Goods subject to temporary prohibition
- The government may impose temporary import bans under conditions of national emergency, food crisis or to protect local industries.
Free trade zones / special regimes
- Imports destined for free-trade zones (e.g., Dire Dawa Free Trade Zone) may have preferential treatment or specific licensing.

F. Summary Process Flow

Register the business / trade licence.
Obtain import licence or registration (as required).
Obtain foreign-exchange authorisation via a bank (if payment abroad is needed).
Place order: pro-forma invoice, shipping/insurance arrangement.
Shipment‐arrival: bill of lading/airway bill, certificate of origin, invoice, insurance, packing list etc.
Submit customs declaration, pay duties & taxes; obtain regulatory clearances if required.
Release of goods.
Submit final customs declaration or import permit copy to bank/NBE for forex settlement.
Maintain records for at least five years; be ready for post‐clearance audit.

Key Points for Consulting / Client Advisory

Timing and delays: Even if the formal process is relatively straightforward (trade licence → import licence → clearance), in practice foreign-exchange delays and regulatory permit bottlenecks (especially for restricted goods) often slow import operations significantly.
Regulatory change risk: Licensing modalities (federal vs regional), digital platforms (online trade licence/permit), and forex priorities may be revised frequently. Clients should monitor official bulletins from MoTRI, NBE and EFDA.
Classification & duties: Accurate HS code classification, value reporting (CIF) and identification of preferential tariff regimes are essential to avoid re-assessment and penalties by ECC.
Restricted-goods compliance: Importers dealing in agro-inputs, pharmaceuticals, chemicals, communications equipment must undertake pre-import permit work early, including product registration, testing, and regulatory approvals.
Record-keeping and audit risk: Be mindful that ECC may conduct post-clearance audits up to five years; importers must keep complete documentation and be ready to show compliance with customs valuation, origin, duty payment and forex settlement.
Foreign-exchange risk: Given the constraint on forex supply, reliance on open-account imports or delayed payment structures may expose the importer to currency risk or non-allocation delays.
E-platforms: For some regulated goods (e.g., medical devices via EFDA) there is an electronic import permit platform (eRIS) where applicants upload product data.
Free-trade zones and logistics: For importers targeting industrial parks or free-zones (e.g., Dire Dawa FTZ) the process may differ (customs in bond, duty deferral). This can be an efficiency lever.

Legal / Regulatory Framework Highlights

Commercial Registration and Business Licensing Proclamation No. 980/2016 (sets registration/licensing of businesses).
Commercial Code Proclamation No. 1243/2021 (governs business entities broadly).
Customs legislation (via Ethiopian Customs Commission) covering valuation, classification, excise, etc.
Foreign-Exchange Directives (e.g., FXD/77/2021) govern how banks and NBE allocate foreign currency to imports.
Specific sector regulations: e.g., EFDA regulations for drugs/medical devices, Ministry of Agriculture regulation for agro-inputs.

Limitations & Further Verification

The guides referenced (Trade.gov, 2 Merkato, etc.) are valuable but not always up-to-date with the latest fee schedules or new digital procedures as of 2025.
Regional variation: States/regions may have different trade bureau rules, especially in trade licence renewal or local permit issuance.
Foreign-exchange regulation is dynamic: The priority list and allocation mechanism changes with macro conditions—urgent to check latest NBE directive.
For used goods (e.g., used vehicles, equipment) or import bans (e.g., used clothing) additional prohibitions may apply—consult MoTRI official notices.
Digital portals: Some procedures now online (e.g., trade-licence application, import permit for regulated goods) but infrastructure (internet access) may delay some regions.

Consultant’s Takeaway for Import Operations

For clients seeking to import into Ethiopia in 2025:

Secure business/trade licence and confirm import-licence/registration early.
Design the procurement workflow to accommodate forex approval timing and shipping lead times.
Conduct rigorous duty & tax modelling (customs duty, VAT, excise where relevant) to estimate landed cost.
If goods are regulated, start pre-import regulatory process early to avoid clearance delays.
Plan for record-keeping and compliance—set internal systems to capture all required documentation for post-clearance audits.
Factor in logistics, clearance risk, forex delays into project timelines; mitigate with local agent expertise.
For industrial/import-for-production clients, explore bonded logistics/free-zone options (e.g., Dire Dawa FTZ) to optimize costs and duty deferral.

🇪🇹 Ethiopia Import Procedures – Step-by-Step Compliance Checklist (2025)

Step	Procedure / Action	Responsible Authority	Documents / Requirements	Typical Timeframe	Indicative Costs / Fees (ETB/USD)
1. Business Registration	Register a new business entity (PLC, sole trader, or branch).	Ministry of Trade & Regional Integration (MoTRI) or Regional Trade Bureau	– Name reservation certificate – Founding documents (MoA, AOA) – Shareholders’ ID/passport – TIN (Tax Identification Number) – Lease or office ownership evidence	3–5 working days	ETB 1,500–2,500 (registration fee)
2. Obtain Trade Licence	Apply for trade/business licence with “Import” activity code.	MoTRI (Trade Licensing Directorate)	– Business registration certificate – TIN certificate – Bank statement evidencing paid-up capital (min. ETB 5,001 for nationals; varies for FDI) – Passport photos – Annual licence fee payment receipt	3–5 days	ETB 1,000–1,500 annual renewal
3. VAT & Tax Registration	Register for VAT and income tax.	Ethiopian Revenue & Customs Authority (ERCA) / Ministry of Revenues	– Trade licence – TIN – Bank account proof	2–3 days	No fee
4. Import Licence / Activity Endorsement	Add or renew the “Importer” status in licence.	MoTRI (Licensing Department)	– Valid trade licence – TIN – VAT certificate – Application form	1–2 days	ETB 500–1,000
5. Sector-Specific Permits (if applicable)	Obtain pre-import permits for regulated goods.	Depends on product: • EFDA (pharma, medical, food) • Ministry of Agriculture (agro-inputs, seeds, fertilizers) • INSA (ICT equipment) • EPA (environmental products) • MOTRI (vehicles, fuel) • National Bank (gold)	– Product registration certificate – Safety/technical documentation – Prior testing (if required) – Importer registration on EFDA eRIS (for pharmaceuticals) – Labelling compliance evidence	10–30 days (parallel with other steps)	ETB 1,000–5,000 per permit (varies)
6. Foreign-Exchange (FOREX) Permit	Apply for foreign-exchange allocation for import payment.	Commercial Bank licensed by NBE / National Bank of Ethiopia (NBE)	– Pro-forma invoice – Valid import licence – Insurance certificate – Tax & TIN certificates – Bank account statement – Evidence of no overdue forex obligations	7–14 days (varies by bank)	Bank service fee (~0.25%–1% of invoice)
7. Place Purchase Order / Contract	Conclude sales contract with supplier once FOREX permit issued.	Importer & Supplier	– Signed sales contract – Pro-forma invoice	Concurrent	—
8. Shipment & Insurance	Arrange shipment & insurance coverage.	Shipping line / Insurance Company	– Bill of Lading / Airway Bill – Insurance certificate (110% value) – Packing list	As per logistics	Insurance premium (~0.4–0.6% of value)
9. Pre-Shipment Inspection (where required)	For certain goods (machinery, pharmaceuticals, etc.)	SGS / Bureau Veritas / EFDA inspectors	– Pro-forma invoice – Sample / technical documentation	5–7 days	Inspection fee (≈US$250–500)
10. Customs Declaration	Submit import declaration through Customs Commission’s electronic platform.	Ethiopian Customs Commission (ECC)	– Commercial invoice – Bill of Lading / Airway Bill – Packing list – Certificate of origin – Insurance certificate – Import licence – Pre-shipment inspection report (if any) – Foreign-exchange permit	3–5 days	Duty assessment only
11. Pay Customs Duties & Taxes	Settle all assessed payments before clearance.	ECC / Authorized Bank	– Duty & tax assessment notice – Payment voucher	1–2 days	Customs duty: 0–35% VAT: 15% Surtax: 10% Excise (if applicable): 5–100%
12. Physical Inspection & Verification	Customs may inspect the goods to confirm conformity and valuation.	ECC	– Import declaration – Bill of Lading – Physical inspection documents	1–2 days	None (unless re-inspection)
13. Goods Release & Clearance	After duty payment and inspection clearance, ECC issues release note.	ECC	– Duty payment receipt – Release note	1 day	—
14. Post-Clearance Submission to Bank / NBE	Submit customs clearance docs to bank to close the forex file.	Importer’s Commercial Bank	– Customs declaration – Release note – Shipping documents – Payment evidence	1–2 days	—
15. Record-Keeping & Audit Preparedness	Retain all import documents for post-clearance audit.	Importer	– Full file (licence, invoices, declarations, payment)	5 years (statutory)	—

🔒 Key Compliance and Control Points

1. Customs Valuation

Ethiopia applies CIF valuation under the WTO Customs Valuation Agreement (Article VII).
Declared values must match supplier invoice + insurance + freight cost; misdeclaration leads to reassessment or penalties.

2. Duty Exemption Schemes

Certain importers can qualify for duty exemptions:

Investment projects approved by the Ethiopian Investment Commission (EIC) under Investment Proclamation No. 1180/2020.
Charitable organizations and NGOs (upon MoF and Customs Commission approval).
Government projects and embassies, per diplomatic or contractual agreements.

3. Free-Trade Zone (FTZ) Procedures

For goods imported through Dire Dawa Free-Trade Zone:

Goods enter duty-free and remain under customs control until re-export or local entry.
Importer must be an approved FTZ operator with bonded-warehouse licence.
Separate customs declaration applies (“In-bond” entry).

4. Inspection & Standards

The Ethiopian Standards Institute (ESI) and EFDA conduct conformity assessment on specific products (electrical goods, medical devices, food items). Non-compliant products may be seized or destroyed.

5. Restricted and Prohibited Imports

Restricted: pharmaceuticals, pesticides, radio communication equipment, explosives, seeds, food additives, medical devices (subject to permit).
Prohibited: used clothing, certain used cars beyond age limit, hazardous wastes, counterfeit goods, unregistered medical items.

6. Foreign-Exchange Priority Classes (NBE Directive FXD/77/2021 and subsequent amendments):

Priority 1: essential food, fuel, fertilizer, medicine, and medical equipment
Priority 2: industrial raw materials, spare parts
Priority 3: investment capital goods and intermediate inputs
Priority 4: other consumer goods

📑 Document Summary Table

Document	Issued By / Source	Purpose
Trade Licence	MoTRI / Regional Bureau	Legal authorization to trade (import activity)
Import Licence	MoTRI	Registration of importer and import activity
TIN & VAT Certificates	Ministry of Revenues	Tax compliance
Pro-forma Invoice	Foreign Supplier	Basis for forex and customs valuation
Insurance Certificate	Ethiopian insurer	Shipment coverage
Bill of Lading / Airway Bill	Shipping line / airline	Transport document
Certificate of Origin	Chamber of Commerce / Exporter’s authority	Tariff classification, rules of origin
Packing List	Exporter	Quantity verification
Pre-shipment Inspection Report	Inspection company	Quality/quantity verification
Customs Declaration	ECC	Entry and duty assessment
Duty Payment Receipt	Commercial Bank / ECC	Evidence of customs duty payment
Release Note	ECC	Final authorization for goods release
Forex Permit & Bank Payment Record	Commercial Bank / NBE	Foreign-currency compliance proof

🧭 Consultant’s Implementation Guidance

Pre-Planning: Confirm product HS codes, import restrictions, and required sectoral permits before placing orders.
Bank Relationship: Build rapport with a licensed commercial bank to expedite forex approval and document handling.
Digital Systems: Use online portals (MoTRI’s licensing system and EFDA eRIS) where possible to reduce physical delays.
Freight Coordination: Choose customs agents familiar with Ethiopian systems (ESLSE and ECC) to ensure proper declaration.
Tax Simulation: Run a landed-cost model factoring customs duty, VAT, surtax, and forex exposure.
Compliance Audit File: Maintain a master folder of all documents electronically for NBE and Customs audits.
Post-Clearance: Submit bank permit closure documents promptly to avoid forex penalties or transaction suspension.

⚖️ Legal and Regulatory References (Core Instruments)

Commercial Registration and Business Licensing Proclamation No. 980/2016
Customs Proclamation No. 859/2014 and subsequent directives (Ethiopian Customs Commission)
Excise Tax Proclamation No. 1186/2020
Value Added Tax Proclamation No. 285/2002 (as amended)
Investment Proclamation No. 1180/2020 (duty-free import privileges)
National Bank of Ethiopia Directive FXD/77/2021 (foreign-exchange allocation)
Income Tax (Amendment) Proclamation No. 1395/2025 (for importers’ corporate tax treatment)
EFDA Food, Medicine and Healthcare Import Regulation (2024 revision)
Ethiopian Standards Agency Conformity Assessment Regulation (2023)

✅ Final Takeaway

Ethiopia’s import system in 2025 is regulated, bank-mediated, and documentation-intensive, but the environment is modernizing:

Online licensing and FX auctions have improved transparency.
Customs reforms (risk-based inspection, post-clearance audit) are streamlining clearance.
Sector regulators (EFDA, MoA, INSA) enforce tighter quality control.
Free-trade zone and ESX reforms are creating new opportunities for trade-facilitated investment.

Strategic Import Advisory Services – MultiLink Consulting (2025)

With over eighteen years of multidisciplinary experience in investment, trade facilitation, and financial advisory, MultiLink Consulting provides end-to-end strategic support to clients engaged in importing goods, equipment, and capital inputs into Ethiopia. Our import advisory division integrates regulatory compliance, financial structuring, and operational execution to ensure that every transaction is lawful, efficient, and cost-optimized within Ethiopia’s evolving trade and forex framework.

1. Import Licensing, Regulatory & Compliance Advisory

End-to-end support in obtaining and renewing trade and import licences from the Ministry of Trade & Regional Integration (MoTRI) or regional bureaus.
Advisory on sector-specific permits (EFDA, MoA, INSA, EPA) for pharmaceuticals, agro-inputs, ICT equipment, and industrial chemicals.
Preparation and review of import documentation in accordance with the Customs Proclamation and NBE directives.
Representation and follow-up with relevant authorities to expedite licensing and regulatory approvals.
Compliance audits to ensure clients meet all customs and post-clearance audit requirements.

2. Foreign Exchange Structuring & Bank Permit Facilitation

Advisory on foreign-exchange access strategies, prioritization categories, and NBE directives.
Assistance in preparing bank permit applications, forex allocation documentation, and import payment approvals.
Structuring import financing through Letters of Credit (L/Cs), supplier’s credit, and deferred payment arrangements in compliance with NBE rules.
Risk mitigation guidance on forex exposure, hedging, and payment timelines to optimize working capital.

3. Customs, Tariff & Duty Optimization Advisory

Comprehensive tariff classification analysis (HS codes, customs valuation, and exemption eligibility).
Identification and management of duty-free privileges for investment projects under the Ethiopian Investment Proclamation No. 1180/2020.
Advisory on temporary importation, bonded warehouse, and free-trade zone mechanisms (e.g., Dire Dawa FTZ).
Support in appeals and re-assessments related to customs valuation disputes or import tax audits.
Modeling of landed cost structures to guide pricing, sourcing, and procurement decisions.

4. Import Risk & Compliance Management

Development of internal import compliance manuals aligned with Ethiopian Customs Commission, MoTRI, and NBE requirements.
Risk assessment of import transactions to identify potential non-compliance, valuation discrepancies, or forex documentation gaps.
Advisory on anti-smuggling, AML/CFT compliance in import-linked payments and trade finance.
Representation in customs or regulatory investigations, ensuring full procedural compliance and mitigation of penalties.

5. Import Process Outsourcing & Turnkey Facilitation

Turnkey management of end-to-end import transactions for international clients, including:
- Documentation preparation
- Freight forwarding and clearance coordination
- Payment and forex follow-up with banks
- Post-clearance reporting and record management
Establishment of import operations frameworks for foreign investors entering Ethiopia (liaison offices, representative agents, licensing compliance).
Advisory on local partnerships, distributorships, and import–distribution models in alignment with Ethiopian trade law.

6. Strategic Trade & Market Intelligence

Data-driven analysis of import trends, pricing, tariffs, and competitor sourcing channels across sectors.
Research on regulatory changes, tariff adjustments, and policy shifts affecting importers (e.g., NBE FX priorities, customs duty amendments, excise tax changes).
Forecasting of supply-chain risks and guidance on alternative sourcing markets.
Tailored intelligence reports for clients importing industrial inputs, construction machinery, or consumer goods.

7. Investment-Linked Import Structuring

Structuring of import-based investment projects—e.g., industrial machinery, raw material sourcing, and technology transfer.
Preparation of import components for feasibility studies and business plans, including customs duty modeling and foreign-capital transfer compliance.
Support in securing EIC duty exemptions and capital goods import permits.
Transaction advisory for joint ventures involving import–distribution partnerships or local assembly operations.

8. Government & Institutional Liaison

Representation in import-related engagements with:
- Ministry of Trade & Regional Integration
- Ethiopian Customs Commission
- National Bank of Ethiopia
- Ethiopian Investment Commission
- EFDA and sectoral regulators
Policy advisory support on proposed import regulations, taxation, and trade facilitation reforms.

9. Training & Capacity Building for Import Departments

Corporate training programs on:
- Import documentation and compliance workflows
- Customs valuation and tariff classification
- NBE forex regulations and payment documentation
- Import project financial modeling
Capacity building for import managers, accountants, and logistics officers to meet modern compliance and audit standards.

Conclusion

Through its integrated expertise in trade regulation, financial structuring, and investment facilitation, MultiLink Consulting offers importers in Ethiopia a one-stop solution—bridging regulatory compliance, fiscal optimization, and strategic market insight. Our services ensure that clients’ import operations are legally compliant, financially efficient, and strategically aligned with Ethiopia’s national trade and forex policies.