CHAPTER FOUR

CUSTOMS TRANSIT

Introduction

Customs transit refers to customs procedures under which goods are transported under customs
control from one customs office to the other. The Revised Kyoto Convention (RKC) provides
standards for the application, formalities at the office of departure, customs seals, formalities
enroute and termination of customs transit. In line with this, the Customs Proclamation contains
provisions related to the application of customs transit operation in Ethiopia. This includes the
basic transit terms and concepts such as goods declaration for customs transit, sealing and
identification of consignments, customs seal, procedures enroute, termination of customs transit,
etc.
Importantly, according to Article 16(2) of the Proclamation goods being carried under customs
transit shall not be subject to the payment of duties and taxes, provided the conditions laid down
by ERCA are complied with and a security has been furnished for this purpose.
There are four types of customs transit operations allowed in Ethiopia:

 Inward transit: from a customs station of entry to an inland customs station;

 Outward transit: from an inland customs station to a customs station of exit;
 Through transit: from a customs station of entry to a customs station of exit; and
 Interior transit: from one inland customs station to another inland customs station.

The responsibility for ensuring that the goods are produced intact at the customs station of
destination, in accordance with the conditions imposed by ERCA, rests jointly and individually
with the declarant and the carrier. For the purpose of customs control, transit goods must enter or
exit through prescribed customs ports or customs crossings and be transported through
prescribed routes.
However, it is also possible in principle for an importer to receive or an exporter to send transit
goods directly from his/her premises. When ERCA is satisfied that the conditions laid down by
the Transit Directive are met, it authorizes:

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a) a consignee to receive goods directly at his premises without having to present them at the
customs station of destination; or

b) a consignor to send goods directly from his premises without having to present them at the
customs station of departure.

4.1 Commencement of Customs Transit

The following procedure will be applied by the customs office of departure to commence
customs transit:

 The transit declaration submitted by the declarant will be verified;

 The transport unit will be checked to assure it is secure for the purposes of customs
transit;
 The duty and tax paid or guarantee submitted by the declarant will be verified;
 The customs seal, if required, will be affixed; and
 All necessary actions will be taken to enable the customs station of destination to identify
the consignment and to detect any unauthorized interference.

With regard to the first step, in order to obtain a transit permit the declarant is required to submit
a transit declaration along with supporting documents to the customs office of departure. The
required supporting documents accompanying the transit declaration vary according to the type
of transit undertaken, i.e.:

I. For inward transit and through transit, the following documents are needed:

 Commercial invoice or proforma invoice authorized by the bank; Cargo manifest

(submitted by sea carrier);
 Truck manifest for goods purchased from Djibouti and neighboring countries;
 Guarantee

II. For interior transit, Truck manifest and Insurance Guarantee related documents are needed

Any commercial or transport document setting out clearly the necessary particulars may be
accepted as the descriptive part of the goods declaration for customs transit.

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In terms of the use of a customs seal, the following types of transit cargo are required to be
affixed with a customs seal: Containerized cargo; Cargo convenient to cover and seal with
canvas, and Fuel products. Conversely, the following types of cargo are not required to be affixed
with a customs seal: Big industrial and construction type machinery; Iron and steel cargos; non-
containerized vehicles; Cargo adequately secured and affixed with a customs seal by a foreign
customs authority; Relief goods, fertilizers and charcoal that are not loaded by train; and Goods
not difficult for customs transit control.

4.2 Procedures En Route

In accordance with Article 20 of the Customs Proclamation, the declarant can perform the
following activities while goods are in transit:

 Change the customs station of destination without prior notification except where ERCA
has specified that prior approval is necessary; and
 Transfer goods from one means of transport to another without authorization by ERCA,
provided that any customs seals or fastenings are not broken or interfered with.

Accidents or other unforeseen events directly affecting the customs transit operation must
promptly be reported by the declarant or carrier to the nearest customs station or other
appropriate government body. ERCA may allow goods to be transported under customs transit in
a transport unit carrying other goods at the same time, provided that it is satisfied that the goods
under customs transit can be identified and any other customs requirements can be met.

4.3 Termination of Customs Transit

The carrier is required to present the transit goods and the relevant goods declaration to the
customs station of destination:
 Within the time limit fixed;
 Without the goods having undergone any change;
 Without the goods having been used; and
 With customs seals, fastenings or identification marks intact.

The time limits for presenting goods in transit to the customs station of destination vary
according to the transit route and entry/exit customs office.

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If goods in transit are not presented to the customs station of destination within the prescribed
time limit and the declarant has failed to report the reasons, the guarantee secured will be
forfeited to the government.

4.4 Transshipment
Transshipment means the customs procedure under which goods are transferred under customs
control from the importing means of transport to the exporting means of transport within the area
of one customs port, which is the port of both importation and exportation.
No duties and taxes are paid on goods being transshipped. However, a goods declaration has to
be submitted. Any commercial or transport document setting out clearly the necessary particulars
can be accepted as the goods declaration for a transshipment operation.
In addition, ERCA may fix a time limit for the exportation of goods declared for transshipment.