1. Import Transactions

Advance Payment

• Under this method, the seller receives payment from the buyer prior to shipment or rendering the service. This mode of payment is appropriate for imports of small items for values not exceeding USD 5,000.00 or its equivalent in other foreign currencies. If the advance payment is more than USD 5,000 an advance payment bank guarantee for the equivalent amount should be presented.
• Required Documents: Performa Invoice, License, Insurance certificate./policy, undertaking letter for the entry of goods, beneficiary’s Bank and A/C details and TIN certificate (additional documents may be requested as and when situation demand).

Letter of Credit (L/C) /Documentary Credit

• A Letter of Credit (LC) is a conditional but irrevocable undertaking issued by DBE to the exporter at the request of the importer to effect payment up to a stated amount within a stated time period against presentation of compliant documents. The Letter of Credit is governed by the ICC rules defined in Uniform Customs Practice (UCP) 600, NBE Directives and the Bank’s Policies and Procedures
• Required Documents: Performa invoice, Insurance certificate/policy, License, L/C application form and TIN certificate (additional documents may be requested as and when situations demand).

Cash Against Document (CAD) /Documentary Collection

• When an importer concludes a contract with a seller indicating method of payment as documentary collection/CAD, prepare and submit its purchase order to DBE for approval before shipment of goods. After the Bank approves the purchase order ,the customer instructs the seller to ship the goods and sends the documents via the exporter bank
• Required Document: Purchase order, Performa invoice, insurance. /policy, License & TIN Certificate (additional documents may be requested as and when situations demand).

(Note: All import & export applications of customers for visible transaction shall be completed and submitted via the Ethiopian Electronic Single Window system; while applications for invisible payments shall be accompanied by a completed, dully signed and stamped application letters. Customers whose names appear on NBE’s Delinquent Importers list are not eligible for entitlement of import and export permit for visible transactions)

 

2. Export Transactions

Advance Payment

• This is the most basic / preferred payment methods for goods. The supplier receives cash in advance from the buyer before goods are shipped.
• Required Documents: Advance payment receipt (Incoming Telegraphic Transfer) advice or customs declaration along with bank advice for the sale of the Cash Notes to the Bank. (If deposited in Foreign Currency Cash Notes), commercial invoice, sales contract, License & TIN certificate.

Consignment

• The consignment sales are applicable to the perishable items such as fruits, cut flowers, meat, live animals, molasses and others in accordance to the list provided by NBE,
• Required Documents: Commercial Invoice, sales contract, License, TIN certificate & undertaking letter to repatriate the proceeds timely (additional documents may be requested as and when situations demand)

Letter of Credit (L/C)

• An export letter of credit is an instrument issued by a foreign bank on behalf of its importing customer favoring an exporter who is customer of DBE.
• Required Documents: Authenticated L/C (SWIFT MT 700), Commercial Invoice, Sales contract, License and TIN certificate (additional documents may be requested as and when situations demand).

Cash Against Document (CAD)

• Under this mode of payment customers shipped the agreed up on goods to the buyer and present shipping documents along with covering letter to the bank for collection of payment
• Required Document: Commercial Invoice, Sales contract, License, undertaking letter and TIN certificate (additional documents may be requested as and when situations demand).

3. Foreign Exchange Service

Purchase and Sales of Foreign Currency (F/CY) Cash Notes

• Forex bureau of the Bank buy FCY Cash Notes at the prevailing exchange rate.
• Forex bureau of the Bank also sell FCY Cash Notes for Holiday travel expenses, Business travel allowance, medical expense, Educational expenses and General transfers as per NBE’s Directives and the Bank’s Policies and Procedures.

4. Foreign Exchange Remittances

Incoming Transfers

IBSP provides incoming transfer services to customer through its correspondent banking via SWIFT

Outgoing Transfers

• IBSP also provides foreign currency transfers to foreign beneficiaries on behalf of local customers against foreign exchange permit approved by the Bank via SWIFT

5. Foreign Currency Account

Non-Resident Foreign Currency Accounts (NR-FCY)

IBSP opens and maintains accounts denominated in foreign currency that provides the Account holders the privilege to instruct transfer of funds abroad without foreign exchange permit approval or make local payments in Birr.

Retention Accounts

IBSP opens and maintains foreign currency accounts for exporters and frequent recipients of foreign exchange remittance to enable retain all /portion of their export earnings and inward remittances as per the NBE directive.