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Import-Export Service/Trade Finance

Oromia International Bank provides import and export services to its customers to facilitate trade in the global market. OIB provides expertise advice and quick customer services with the aim of laying the platform to smooth trade activities and transactions between sellers and buyers.

Basic payment methods by which an international seller of merchandise can obtain payment for goods shipped to an overseas buyer are:

  • Letter of credit (LC)
  • Cash Against Documents
  • Cash in advance
  • Consignment

Import

Letter of Credit (L/C) – is a written undertaking by issuing bank on the request of an applicant in favor of the beneficiary to effect payment on presentation of complying documents stipulated in the text of the L/C

Documents Required for Import Letter of Credit

  • L/C opening application form duly completed
  • Foreign exchange application form duly completed, signed and sealed
  • Three copies of Performa invoice clearly showing full description of goods, including quantity, grade, quality, volume, measurement, mode of shipment, terms of payment, unit, and total price of the goods at a named place of delivery
  • Photocopy of valid foreign trade, investment or industry license and TIN certificate
  • Insurance certificate from licensed local insurance company.
  • It will be checked that the applicant’s name is not in the delinquent list of National Bank of Ethiopia (NBE)

Cash Against Document (CAD) - it is a type of transaction in which the title for goods purchased is released to the buyer after total sale price is paid in cash.

Required documents for Imports by Cash against Document (CAD) at sight

  • Previously approved purchase order by the bank, Performa invoice, valid foreign trade, investment or industry license. Taxpayer registration certificate.
  • One copy of local insurance certificate for goods to be imported
  • Foreign Exchange application form duly completed, signed and stamped together with the following documents.
  • Three copies of chamberized invoices.
  • Two copies of certificate of origin.
  • Full sets of shipping documents (i.e. bill of lading, airway bill/Truck manifest/railway bill/couriers etc. and carrier invoice to indicate the actual fright charges, if it is CRF.

Advance Payment- Import in advance payment is allowed up to USD 5,000. – or equivalent in other currency only.

Export

Like in import transaction, methods of payments for export are;

  • Letter of Credit ( L/C)
  • Advance payment
  • Cash against document, and
  • Consignment.

Required documents for Letter of Credit

  • Valid trade license for export
  • Copy of authenticated L/C
  • Four copies of completed Bank permit for Export of Goods (permit form to be supplied by the bank)
  • Two copies of invoices duly completed, signed and stamped. The invoice should be authenticated by chamber of commerce in Ethiopia as the case may be.
  • A copy of sales contract.
  • It will be checked that the applicant’s name is not in the delinquent list of NBE.

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