General Overview
The Directive is issued by the Ministry of Finance of the Federal Democratic Republic of Ethiopia with the purpose of entitling exporters to export samples without paying tariffs and duties and without obtaining export permission from a bank.
The Directive defines “Product Samples” as exact products or a representation of the product sent to buyers before they are produced in mass (or “en masse”) to agree on the design, quality, and characteristics of the product. They are sent from one country to another for display and publicity purposes, and to obtain orders from buyers. And it is vital to safeguard the country’s long-term interests by building a clear, flexible, and predictable system of sample-handling procedures. As a result, the Ministry of Finance issued this Directive to aid in the seamless transmission and receipt of samples when engaging in international trade.
This Directive governs the samples of the manufacturing industry sector-an industry that makes, processes, or prepares industrial commodities from raw materials, such as textiles, food, drinks, medications, chemicals, metals, and engineering.
- Information required to obtain and receive sample products in the manufacturing industry
The Directive lists the required information that should be submitted to send and receive samples in industries such as food, clothing, chemicals, construction, metallurgical, and engineering. Documents for importing and exporting sample products should typically include the type of the sample, the name of the purchaser, a statement that the sample will not be sold, the price of each sample, detailed description of the sample such as the number of styles, size, purchase order number, and other necessary information.
However, there may be extra requirements depending on the type of industry. For example, pharmaceutical samples should have the Ethiopian Food and Drug Control license number of the producer.
- Number of Samples Permitted to Export and Import
The number of samples to be exported depends on the type of the product. For instance, for apparel/garment products, an exporter may export 10 samples for one type and one style of product to one buyer. If the exporter wants to export 200-500 samples (due to the nature of the product), s/he has to do so by filling out the customs declaration and obtaining export permission from the bank.
If fabrics, the exporter/importer may export or import a one-color sample in the length of 100 meters or 30 kg. Fabric swatches, however, can be exported or imported without any limitation provided that they are sent in A4 and A3 sizes.
- The number of product samples exported and imported by the manufacturing sector
Producers engaged in the manufacturing sector, according to the specified amount for the types of products specified in each sector that is listed under part three of the Directive, can purchase samples of products directly or through purchasing agents, without paying taxes and without asking for an export permit.
Textile and clothing manufacturers who produce in established industrial parks in Ethiopia should open offices in the country and send samples to agents or agents working on their behalf.
This Directive is effective from July 1, 2022 (Sene 24, 2014 E.C.).
For detailed information, please contact us.