Overview
PSI, under its current application in Ethiopia, is a service established and governed by Proclamation No. 173/1999.  SGS is appointed by the Ethiopian Government to conduct the   Pre-Shipment Inspection services for goods coming from all over the world.

Goods Subject to PSI
All goods with a FOB value equal to or in excess to USD 2,000.00 (except those stated under the exempted goods list below) are subject to PSI according to the existing laws governing PSI.
 

Exempted Goods
The following goods are exempted from PSI requirements:

• Gold, precious stones, precious metals

• Objects of art

• Crude oil and refined petroleum

• Explosives and pyrotechnic products

• Ammunition, weapons, implements of war

• Live animals fresh, chilled or frozen fruits, vegetables, fish meat and fresh eggs

• Scrap metals

• Fertilizer

• Current newspapers and periodicals

• Household and personal effects including a used vehicle

• Parcel post or commercial samples

• Gifts made by foreign governments or international organizations to foundations, charities and recognized humanitarian organizations

• Gifts and supplies to diplomatic and consular missions and to agencies of the United Nations Organization and the organization of African Unity imported for their own needs

• Goods supplied to the Government as direct grants emergency and relief imports

• Investment goods imported by Ethiopian nationals residing abroad and foreign investors, who have an exemption letter from the Investment Authority

• Postage stamps, aero grams, lottery tickets, currency.

• Shipments with a FOB order value of less than USD 2,000.00 except Full Container Load Cargos (FCLs) and spare parts of commercial value (but only upon official announcement by the Ministry of Revenue).  The amount of the proforma invoice accepted by the banks and the transactions exchange rate applicable on the date of the proforma invoice is the basis for determining the value.

Partial Shipments:
Partial shipments of goods purchased by a single purchase order shall be subjected to pre-shipment inspection even if the FOB, value of each partial shipment is less than USD 2,000.00 FOB, provided that the aggregated value of such partial shipments is greater than USD 2,000.00 FOB.
 

Full Container Load Cargos (FCLs) and spare parts of commercial value:
Full Container Load Cargos (FCLs) and spare parts of commercial value are subject to Pre-Shipment Inspection irrespective of their commercial value.  Therefore, such imports are subject to PSI even if their total order value is below USD 2,000.00 FOB. (only upon official announcement by the Ministry of Revenue)
 

How to apply for pre shipment inspection
Once an importer has decided to import goods and received a proforma invoice from his overseas supplier, he needs to:

Contact Customs Authorities to pay a PSI program deposit of 1% of the CIF value.  (This deposit will, after importation of the goods, be offset against the Pre-shipment Inspection Programme Fee, is 1% of the duty paying value.  Against payment, importer will obtain a prepayment receipt from Customs, which will have to be added to all other documents required to import goods.  The inspection will not be conducted without payment of this PSI fee).

Apply to the National or Commercial Banks for imports covered by a letter of credit or by cash against documents (CAD) as per current procedure (including all necessary documents and authorizations).

Complete an Import Advice Note application (IAN) on the format already available from the banks or SGS Addis Ababa Liaison Office, that will be submitted to the banks for L/C, CAD and TT imports along with other documents necessary to arrange a payment instrument.

SGS Addis Ababa Liaison Office will collect from the banks the completed application together with all the necessary documents as listed below for each type of import.

Upon receipt of the import documentation from the banks, SGS Addis Ababa Liaison Office will enter the details showed on the documents into its computer application and will  electronically send such details to the inspecting SGS office located in the declared country of supply.  A copy of the Import Advise Note will also be sent to the importer through the fax number declared on the Import Advise Note application.

Upon receipt of the Import Advice Note, the inspecting office in the country of supply automatically contacts the seller of record detailed on the importers’ Import Advice Note to request information and to arrange the physical inspection.

N.B:  It is important to note that SGS will contact the seller (i.e. the party named in the Import Advice Note) who may not be the actual supplier of the goods.  If you know who the supplier is, please provide full contact details.
 

Document requirement for PSI Application
The following Documents are required for Pre-Shipment Inspection application:
 

Letter of Credit (L/C) importation:

• Proforma Invoice (with Quality and Standards Authority, Ministry of Health, Ministry of Interior etc… stamps whenever applicable)

• Exchange control permit copy

• L\C copy

• Pre-Shipment Inspection fee payment application (duly stamped by Customs)

• Pre-Shipment inspection fee receipts copy

• Import Advice Note application (duly completed and stamped)
   

Cash Against Documents (CAD) Importation:

• Proforma Invoice (with Quality and Standards Authority, Ministry of Health, Ministry of Interior etc… stamps whenever applicable)

• Purchase order copy (duly approved by the bank)

• Pre-Shipment Inspection fee payment application (duly stamped by Customs)

• Pre-shipment Inspection fee receipt copy

• Import Advice Note application (duly completed and stamped)
   

Telegraphic Transfer (TT) Importation:

• Proforma Invoice (with Quality and Standards Authority, Ministry of Health, Ministry of Interior etc… stamps whenever applicable)

• Exchange control permit copy

• Pre-Shipment Inspection fee payment application (duly stamped by Customs)

• Pre-Shipment inspection fee receipt copy

• Import Advice Note application (duly completed and stamped)
  

Other Importation (e.g. self-funded payments)

• Proforma invoice (with Quality and Standards Authority, Ministry of Health, Ministry of Interior etc… stamps whenever applicable)

• Pre-Shipment inspection fee payment application (duly stamped by Customs)

• Pre-Shipment inspection fee receipt copy

• Import Advice Note application (duly completed and stamped)
   

N.B – Important tips for prompt PSI application processing

• Importers must duly complete all fields including their shipment type as FCL (Full Container Load) or Non-FCL on the Importer Advise Note application form with the maximum possible accurate information.

• Importers must ensure prompt transmission of their PSI application from the banks to SGS.

• Importers must ensure that the bank transmits correct and legible photocopies of documents along with their Import Advise Note application to SGS.

• Importers must immediately communicate with SGS Addis Ababa Liaison Office and provide the required/missing information and/or documents(s) whenever they are advised that their applications are not being completely processed.

• Importers must always advise their suppliers about the mandatory requirement of PSI and provide them with SGS IAN number for ease of reference.