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FEDERAL NEGARIT GAZETA
.,

OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA

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19l)8

CONTENTS

cry (J)c6fi),
ftJlf.~ll:N~"f

ADDIS

41h Year No. 46

ABABA
- 191h June,

c9?:II~f:i 0,.9".

Council of Ministers Regulations No. 37/1998

Freight Forwarding and Ship Agency Licence
1~' ?~f.t.~
Issuance Council of MinistersRegulations
Page 766

lD"nA C; JP t. ~..CPJ!:
.,

COUNCIL OF MINISTERS REGULATIONS NO. 37/19%

COUNCIL OF MINISTERS REGULATIONS TO
PROVIDE FOR THE ISSUANCE OF FREIGHT
FORWARDING AND SHIP AGENCY LICENCE
fOlJ.'i.{}'h~:1' .9uhc n,.} f~\.:"f"~.f' &..~t.l\tf
~.qutJt.
These Regulations are issued by the Council of Minisfl..f'lf tT.nlLh
~,(}&.?OIL ~,'11\'1") FAnnc.'
.,.ol'lC t\oPlD(}'}
ters pursuant to Article 5 of the Definition of powers and
nmll)tD. htp~ <h'}'c !!/na'ii'% ~,,}4>7" ?.i"he.' (nolJ!.: 9u111'llJ
Duties of the Executive Organs of the Federal Democratic
&..cp,r.:~,tp~ 4:'I'C :!~?~/):i!~'i!'!! i','}4'?' ~1%oP,pl..1' .eu') J-'.'}11
Republic of Ethiopia Proclamation No. 4/1995 and Artick ,p
::
h tD.lr;t A
of the Commercial Registration and Business Li(~el!sin.~
~. i',ti/!,C C6{}
Proclamation No. 67/1997.
.eu g:Hl "f6.cp h{}','I\I\&..,.1. "t,lJfoPch.n (l)ctJA'i Ft.
1. Short Title
&.:1>
Y: fOl/,'1.
.. {}'}r:1' 9utJC n':" Y.'}11 <h'I'C ciw./'mv'j"
.. ,."
",,,..
"'~
These Regulations may be cited as the "Freight Forwar.,..nt\" lLm4'{} .e")".I\A ::
ding and Ship Agency Licence Issuance Council 01
~.
""C~OIl
Ministers Regulations No. 37/1998."
fO?'i.{}.1'r:1' 9utJC n,.} g.'}.n <h'}'c ifl:~;-I]!ti
f6.cp h{}"'''J\&.'':'' "hlJ f(lDch.n (l)ctJA lJ Ft. &.:1>Y:
fO?'i.{}:"{~"''''' 9tJC {1,.} Y:Hl

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{i. "6:J> i',{}.f'I\I\&."'}"
OI/t\"', ni','lC tD.{}'}, m.e9u
no,t\9u ~,4'(~ g.I.~' 6:1> "'4"l.e '} IU!!.9 6:1> 1\tL '}

noPmhA f1'9u?-t, F" p'co,:,. : fmg..n F" FCO'}

"t,lJ 1\,t\"1' F" p'co,.y:.)'.'} h{}&.?,'l/U f'Ul m.e9u
fan".. /J.P9'1' nm.{J..n "t,'}~.1 n. mY.9 1,.)JtWlH0I/Y.:1.1 n.IY'} /J.p') f"I/~~1n~' f",/{}l.h.(1'} p't.
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f"'(}mlf}. (}tD. 'ltD. :

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Unit Price

J. 40

g:Hl

f'}o1J~:

oPlJ.'l.'} f6.p
P't.

&...py:

2.

Definitions
In these Regualtions:
I) "'Freight Forwarding" means the representation of a
consignor or consignee locally or internationally in
fulfilling customs, port and other fonnalities 1m
import and export cargo at port and includes the
transportation and delivery of same;
2) "Freight Forwarder" means a person who is licensed under these Regulations to carry out freight
forwarding;

'i:J/.')' :JlLI', ;1",'''.'1:. 'U"i'Ui

Negarit G.P.O.Box ~().O() I]

t..Y..&.A ~:M"" :m,il} <h1'C:~} ...~ I~ +') Hnj 'I.,...

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Federal Negarit Gazeta -

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O?I\T b~
tDJ'.'J" ttiloP'L1.SV:f'} noPtDhA n'l-'J".;.h

1lJ00.f m-illJ' I\tD'L1. tDJ'.'r 1\10. ,,~sv:f

rC~T
?;.

4)

the Federal Revenues Board as such;

"Customs Clearance" means a process of fulfilling

hilh"7.~hnmf"7.hlf'(lJ')

1;'

"f.'J"C': h,}J.'.tt"'lI111~i:
(lJJ'.'J" hh.Tf"kl

0?1f':fm-'J"

5)

hilh"7.(lJ1lJ

6)

(lJh.A" O?I\T
m-hAIf' l\oPrl.-T

means a process of fulfilling

behalf of consignor or consignee within port area

until the import cargo is brought out from the port
or the export cargo is loaded onto the ship;
7)

"Groupage/Consolidation"

means the grouping

together of several compatible consignments into a

full container load;
8)
9)

"Person" means any natural or juridcal person;

,
'Protective Agency" means the representation of a
shipowner to protect a shipowner's interest and to
supervise the work carried out by the ship's agent

rl.-

10) "Ship" means any kind offloating object used for

maritime transport and includes vessel;
11) "Shipping

O?I\T n"~ ttil"'I\I\k~T

tDJ'.'J" noPchl1 tD-hAIf' tt1A"'II\OT rl.. l\oPlP
O?I.'T h,}"'I~1f' h. ,}~ilTt. "7.~il1:C f"7.(\1' 4.~~
~m- :
19.' "f(lJ'1iJ!' '}"'I~ ~J;T" O?I\T n'}"'1~ i'h"'lhtt'}"'~ ~9.
hilh t.~ h,}J.'."''''~1oP(lJ' f,}"'1~ (lJh.A : f,}"'1~ J.'.I\I\
",If' ftt"7. 7i') (lJh.A ~m- ::

Agency"

an owner, charterer

means the representation

or operator

of

of a ship in

canvassing and booking cargo or passenger and

providing services to the ship inland and at port as
necessary

and

includes

the

coordination

of

stevedoring and shorehandling services;

12) "Shipping Agent" means a person who is licensed

lULU J.'.'}11 oPlP~T

f,}"'1~ rl.. 4.~~

f"'(\mm- (\m- ~m- :

f.'

customs control;
"Port Clearance"

when the ,owner's ship is in port;

O?I\T 0?1f':fm-'J" 1\0?t.;J-f.'J" TI..,}il

T CT tt 1A"'I1\0T f"7.(lJ-A .,.'} l}4-k fliJ!'~T tDf.'J"
f(\tD- O?~~"r oPUft..f (\.If') "f.AI1,}f.'L1.'J"I..A :
m-hAIf''' O?I\T foPch11 I1I\,}l1~T'} :
Hi' "foPchl1
"'hl..f. '} : tDJ'.'J" Nf t..1'C'} noP(lJhA: oPch~
f"7..f~'l-IIm-'} ,,~ (lJf.'J" oP'}1J.'.;;:0?"'I1T'}1f' oPoP
1'11n: n'HJC tDJ.'.11"f. hlf' ntt1c m-il1' h,}J.'.ttil4.I\
tt1 A "'II\oT oPilmT')
: ,,~
'L ~.,: l\oPch(1:f
foP651.'}1f'fO?I...,lj:'} : h'}Jtu.'J" ,,~'} tt~.,.t' fO?hO?
:t:T'} rl.. O?il.,.l1nC'} J'.'L1.'J"I.-A :

If.' "f,}"'1~

any custsoms

port's formalities for import and export cargo on

I\J'. fO?(\I1(\l1 "'"'II1C ~m- :

"oPchl1"

I~' "foPchl1
foPchl1

means

of arrival at the customs port until released from the

'l.J.'.T ~(J)<:

~ (J)<:

I'

Formalities"

tation, exportation or transit of goods from the time

~~il

"(\tD-" O?I\T f.,.4.'I'C': (\m- tDf.'J" ni'h"'l f(\m-~T

oP1).}' f'''(\mm- ttllA ~m- ~
"f.,.<f.flJIlJt. m-hA If''' O?I\T tD1-11 m-il1' 11\
oPCh11 t}1\,}l1~T'} noPtDhA flll\oPch~,}
1':"'J"
l\oPmn:" foPchl1 tDh.I\-,} rl.. foP<f.flJmC '''"'II1C

"Customs

operations carried out in C\mnection with impor-

ttiloP'L1.m-

"f(lJJ.'.l1 r~ rC~T O?il4.?'J"" O?I\T f(lJ'L1. ,,~'}

n:\1\
n"'oPl\h.,. f'l-'J".;.h r~ rC~T
h"'mlf'''''''
n(lJJ.'.11 "~m- noPCh11 I\J'. hilh"7.651.'}nT (lJJ'.'J"

00-1\. tt,}1:J'.~C tt'}~

ii'

behalf of consignor or consignee within customs

station;

10. ":1'') n"'oPl\h1' ":1'm- h.,.I..14. n:\1\ h(lJJ.'.l1

hilh"7.(lJllJnT 1.IL ~-~il I\tD'L1. (lJJ'.'J" 1\10. ,,~
0?1f':fm-'}'J" r~ rC~T O?il4.?'J" ~m- :
%, ""~sv:f')
ntt'}~ I\J'. O?"'If'"f.T" O?I\T ntt'}~ I\f.
1\.1f't- f"7.:f1r f"'l\.f~ 111\,}11~.y.:f,,~sv:f'} ntt'}~
;!;.

customs' formalities for import and export cargo on

f'l-'J".;.h r~

"f'l-'J".;.h r~ rC~T"
O?I\T tDJ.'.(}1C f"7.111: tDJ.'.
()
m-1iJ!' 1 C f "7. 1\h tDJ'.'J" .,.1\1\k ,,~ 'l-'J"';'h tDJ.'.11
1.It

767

"Port" means the area or place to be designated by

O?il4.?'J" ~m- :

hJ.'.~(UIT

1901June, 1998-page

3)

h A A tDJ'.'J" (1:t' ~ (J)<:

"f'l-'J".;.h
1\h.sv:f')

No. 46

under these Regulations

to carry out shipping

agency;
13) "Licence"

4.~~"

means a business licence issued by the

Ministry of Trade and Industry to carry out freight

forwarding and/or shipping agency;
14) "Foreign

Trade Auxiliary"

Agents, Commercial

Brokers

means Commercial
and Commission

Agents as defined under Articles 44-62 of the

Commercial Code.

ttil.,.I\I\k ~T r I..
3. The Functions of the Freight Forwarder
ttil.,.I\I\k ~T r I.. f"7.h.,.IrT') f.'L1.'J"I..A :
The functions of the freight forwarder
f(lJJ.'.11r~ rc~"'- O?il4.?'J"~
following:
f'l-'J".;.h r~ rC~T O?il4.?'J":
1) port clearance;
f.' b:J>SV1''}ntt'}~ I\J'. tt"'If':E-.y.foPI\h tt1A"'II\OT
2) customs clearance;
oPilmT:
3) groupage/consolidation;
9.' foP ;JII'} tt1A"'Il\oT oPilmTIf' ,,~ fO?~~il :
4) warehousing and delivery services;
?;' f"~ O?il"'If'''~ oPUft..fSV:ftt1A"'Il\oT oPilmT :

f"~
f"~
{!,
~.

5)

cargo handling equipment services;

include the

1K" :~y':j;~; t..fo/.'&\

~:M''''

;lILli' <I:'}'C~'j't.M. I~""

6)

Irlf f'rt.,}il

7-C'''' h1Aol/\"-1- oPilm:'- :

f1t\~:j>m- t.(}- 1I'/=\=\1f tl'\4>~n nil1-4>C : ft.(}.)-t.,}il;rC-1f/\,t\m- h,}f.lr~
f-1-t.,}ilTC')h1A

~.

1/\":'- 'HM.f.1'- ~:pm-'} 11'/=\=\1':f~..p9':{- II'/m'} h1Aol/\"-1- oPilm-1- :

~..p9':{-,} II'/7iOJ:-

8)

fumigation services;

IP~ ?::'--'} II'/II;J~ :'-'1 oPilm-1-

9)

packing services;

H?

7)

hoP:I: 1I'/=\=\1f oP9~1'

oPererA

: f~:1> 11'/=\=\1' ilrr~-1-

of credit instructions;

foPch.n

m-tJA'I

m-tJA'I Ft.

Ft.

fDl/.h1-t\--1-') f.l.lJ"rt.A

f1t\,}11~1'-'f
;JC OJTf.~1'-'f
t\lI'/t.1~
ilt\Dl/.oPlJlo oPchn'f

hil&.I\'L oP~~9''f'}

n.pY.-Dl/.f II'/m'l4>C :-

E.

/\oPCh11~:1>

Ii.

h1Aol/\"-1foPchn'f'}
fh1/,-I:

'k
%.

oPilm-1- :
noPll}1''

oPOJ/\6fiI.

Iii.

oPil-l''1J;. '} 1I'/~;J11' :

f016J.b ~:1>9''f oPchO- m1.11 hoP Y.-~(}- nk-1- lD1.ll
t\oPy'-~l)TmoPh:J-'''A
: ~:1>9''f
nhOlf)()- oP6fiI.':fm-'} 1I'/~;J11' :

noPchll

~..p hiloP""l_9':{- ~..p:':01-'} h'}JtlDilJ;.

lI'/il;t'lD.p :-

f011.11 oPl.I.1.'~.p'} h'}Jtu-r

consultancy services in freight forwarding.

The Functions of the Shipping Agency

oPht.f:'-'}

oPchn'f

t\oPht.f.)-

foPch.n~:1>

agency

include

the

contact vanous

shipowners

and obtain advance

information of sailing schedule of cargo discharging

2)

3)

n1-oPt\h1h '}Jt:FA

f1o.'

5)

O11..n m-il1' t\oPchO- hil&.I\'L flr~ f1-t\.f~ h1AOJ

/\...y.:{-'} 1I'/t\-1- t\oPchn- IPt.1-?f'f rOJ11lD-'/ foPl)o

I~'

/\-'r'} oPilm-1- O1~9 fDll_01'n-1-'} u-).;t' 1I'/<I''''f:-1- :

f1m~?f:{-'} fll'/4>.ffC'l 011. oPlJlo(H- foPoPt\il h1A

IE'

1/\":" oPrim.)- :
foPch.n
~:1> oP6fiI.'..,:"''I.e,,- : f~:1> II'/il~ho.f
},'}Jtu-r

/\,/\..'f

follow that export goods have arrived at port before

arrival of loading vessel and ascertain that the goods
are properly loaded;

6)

01'1.1. oPlt\",.",

1'0(~:'- h1AOJ/\..-1- oPilm-1- :

f~..p oP6fiI.'}' 11'/1..1':h1AOJ/\..-1- h'l f~:1> 1-.y.ll}ll}
/,~..,. 'f-OJf1ClI'/il.f-f1nC :

foreign trade

cargo be transported by sea-worthy vessels;

Y.-;J~ oPilm-1- :
f th.l)1l

organize the arrival and departure arrangements of

ships and ensure that the country's

11:1>-1- .fI\TlD-'}
oP011011'1

provide cargo canvassing, booking and coordination

servIces;

I\~

hl1l\-1-

prepare daily fleet position and distribute to shippers

and importers;

fh1Aol/\..-1- oPIIOJf-1-'}

1I'/=\:}1f h.t.f.

lPilm:"

of the shipping

following:

4)

/\oP4>~il hOJf1ll .fI\TlD-'}

foPch11

II'/";J:~')''

14)

of the contract of carriage;

and loading vessels;

h 11,h"Y.- U-).;t' fll'/4>'"f:-1-'

oPl/\6fiI. IP~Y.- },'}JtU-9

'r.

follow up movement of cargo;

fll'/il1-f1nC

oPcP,-1- :

J!'

13)

f016J.b '}OJY.-~..p9'"f 11:1>-1-f1I\TlD- h=\=\1r'f

/\lI'/ilO11Y.- O1f.r
~.

choice of the most suitable carrier and conclusion

1)

oPl\tJ :

foP&.t\OJ : foPf-A1.A'I

4.

12)
.

The functions

nf4>~ .f/\-n-1-'} U-).;t' n1-oPt\h1-

1I'/lD-ll}'r'l t\1\h.9''f'll\iloP''''1.9''f

f;'

h'''/\.f~
foPch11
nll'/Y.-~OJ t\oP"""''}'
oPchn'f

owner do not have transport

10) preparation and issuance of relevant documents;

] 1) compliance with foreign trade regulation and letter

foPch.n

~.

forwarder

servIces;

h'}.pil..p(). oPh;t'1-A :
IE' f~..p9''f'}
Hi. f~..p oP-I'I\t\~'} ()-f-oP/\h1- rtJc oPilm-1- ::

Ii'

where the freight

768

transport the cargo using other transporters, where

himself or ;cargo

-'n

/'

19thJune, 1998-Page

provides such services himself;

-I-OJf1CI\f. lI'/erA :

Q'

services,

%.

Hi' fm-6J.b'}OJY.-1.'}11'1 f/\,1-C ).~ tM,Jt:'- -1-ht'tI:{-'}

/

transport

No. 46

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Federal Negarit Gazeta -

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notify importers of the arrival oftheir goods to effect

delivery;

7)

assist the appropriate bodies in order to avoid or

minimize congestion of port and delay of services;

8)

assist in chartering sea-worthy ships;

9)

collect freight, prepare statement of account and

disbursement account;

10)

coordinate stevedoring and provide cargo superintendancy services;

IP~Y.-

11)

foPch11

provide or arrange ships husbandry services like

provision of food, water, etc., to the ship;

IP~ ?"')--'} 1I'/1I;J"f:')' :

'r .N: h '}Jt&.Kr

Hi' f1/\~..p9''f fDl/..f4>CO-:'- ftJ~f
u-).:J-9':{-,} lI'/oP;J:~::'-:
If;' f1-.y.ll}ll}/, lD-tJA'I h1AOI/\"-1- oPilm-1- :

12)

provide crew change and repatriation services;

13)

issue bill of lading, delivery order and prepare other

n.

14)

facilitate settlement

15)

provide protective agency services;

16)

monitor movements of containers.

ftt,}'I:~~C h'}.pil..p(). oPh;t'1-A ::

shipping documents;
of ,claim by cargo own~rs;

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5.

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No. 46

19thJune, 1998-Page

769

Requirement of Licence
I) A person may perform the business. of frei.ght
forwarding and/or shipping agency services only
upon acquiring a licence pursuant to. these
Regulations.
2) A person who has been rendering shipping agency
services and freight forwarding services under'

Foreign Trade Auxiliary licence may not continue

nllU f. '}11 000'1."" fiJ:J' hflTI\I\&'~"" Fl.. L:J' Y:

providing said services unless be obtains licence

fT(}mCD- (}OJ-f.,..l}".;.tJ hflTI\I\&'~"" F/.. L:J' Y:
under these Regulations.
h ') Y.T(}mOJ- ~~ml..A ::
3) A person who acquires the licence as freight forwar%. L.<J>Y:1\lP/<?T"" 00:L1\"" J'l\fFfOJ- ooflLC-r-:f
der under these Regulations is deemed to have
ji.
l\iJ:J' hflTI\I\&'~""
Fl.. OJ~I}" 1\00Ch11 OJ-tJAlf
acquired customs clearence licence.
Fl.. L.<J>Y:1\lP/<?T..,' hooAt}~:
6. Requirements for Obtaining Licence
I) For freight forwarding or shipping agency licence,
u)
fie')'f-A-.r<e IL;J OJ,e.1}"h,}f.~OJ- W1'} 1\D'/..(}mOJ(}
the applicant shall have:
'1':"1}" 1\.1\~ OJ- fD1'} n Too ItIt,e. h R4.OJ-'} f D'/..
(a) Ethiopian nationality or be a person from a
h1C
'l'n"" fll}"?U~"" fie""V-A-.r fTLI..t.oo:fn..,.
country
having
the relevant
reciprocal
(}OJ-:
agreement with Ethiopia;
1\) 1\iJ:J' h fl 1'1\ 1\&,~..,. h 11C Ii D'/..I\.V-'} [; f. n. U :
(b)
a minimum captial of Birr:
~..,. h 11 C ji D'/..I\. V-'} fD ~I}" 0-1\ 1: '} I}"
1\ 00 C h 11 OJ h. A
1)500,000 (one million and five hundred
F I..~:f l\lP/t}~~; h11C gD'/..I\.V-'} gf. n.U .rl\ ~(}
thousand) for freight forwarding agency;
ooFi t}1::rA .rI\OJ- ;
1,000,000 (one million) for shipping agency;
~,,)
hI.. (}- OJ~ I}" f.,. m I. OJ- (}OJ- n fie '} TC lf7i If A ""1.. '} fl
2,200,000 (two million and two hundred
7'C"" nTI\~1}" nf1J1C ""/..'}flTC""
Fl.. hflL
thousand) for both agency services; . .
,
l\'lOJ- foo-.r iJOJ-"'''''lf AI}"Y: .rl\OJ- : I\llUI}"
(c) himself the qualification or qualified personnel

'"

h'}I..'}fl7-C""lf

oo1lf~

D'/..tfl1:C

f:fl\o;t-

(d)

with the knowledge and experience,in international transport particularly shipping, as

evidenced by certificate of competency issued
by the Ministry of Transport and Communications;
an office equipped with telephone, fax, telex

(e)

and other relevant modern facilities;

submit Articles of Association and Memoran-

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dum of Association, if it is a company.

The applicant for freight forwarding in addition to the
certificate mentioned in sub-Article (l)(c) of this
Article, shall submit a certificate of competence from
the Customs Authority to carry out customs clearing
activity.
3) The applicant already with a licence for customs
clearing is not required to submit the said certificate of
competence.
7. Responsibility of the Ministry of Transport and Communications
I) The Ministry shall issue directives with regard to the
requirements set in Article 6 sub-Article (1)(c) herein-above.
2) The applicant shall be issued with the certificate of
competence where he fulfills the requirements under
Article 6 sub-Article (l)(c) of these Regulations.
8. Responsibility of the Ministry of Trade and Industry
The Ministry shall issue the licence for shipping or freight
forwarding agtncy upon fulfilment of the requirements
under Article 6 here-in-above.
2)

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Federal Negarit Gazeta - No. 46

9.

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155/1994.

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9.

Responsibility of the National Bank of Ethiopia

1) The issuance of bill of lading under Article 4( 13) is
subject to the directives to be issued by the National

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directives with respect to the control of foreign

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Where the freight forwarder or the shipping agent

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the authority that issued the certificate(s) of

\
competence may suspend or cancel the certificate(s) and same shall be made known.to the

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Ministry of Trade and Industry.

12.

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or shortage of or damage to the goods or delay in

delivery of the goods.
13.

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Applicability of other Laws

Commercial Registration and Business Licensing
Proclamation No. 67/1997; the Re-establishment

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9Rrry out his duties with due diligence.

He shall be liable for defaults in the performance of
his duties, in particular he shall be liable for loss of

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f ",,,..:f :It 1 :f.,. L1. Dt ~..,.
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Liability of the Freight Forwarder or the Shipping

Agent
I) The!Freight Forwarder or the Shipping Agent shall

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fails to abide by the rules and conduct of the trade,

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currency transactions by the freight forwarding and

shipping agency services.

Suspension and Cancellation of Certificates of Competence

IP 1..1'

h'}Y:

Bank of Ethiopia.
The National Bank of Ethiopia shall also issue

2)

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Article 5 of the Council of Ministers Regulations No.

10.

If. h'}f.."'ODt\h"'lD-

770

Responsibility of the Cutoms AuthMity

The Customs Authority shall issue the certificate of
competence of customs clearing agent, regarding
freight forwarding, pursuant to sub-Article (l)(c) of

ODlPl.""

ll'}h I'"'AII}'}

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19thJune, 1998-Page

and Modernisation
of Customs Authority
roclamation No. 60/1997 and other relevant laws

f..'}-H i\f-, "1f..h'?lltt

shall be, mutatis mutandis, applicable to matters

provided for in these Regulations.'
~9"c.> f?c," ,e.rrc,"A ::

14.

..

Effective Date

These Regualtions shall come into force as of the

h.ltit MIll ()~ I~ .,.'} I!lf.1 q.9"

19th

day of June, 1998.

Done at Addis Ababa, this 19thday of June, 1998.

OD

f1\.""f-k1

MELES ZEN AWI

t\ it ,L c,"'f

t..Y..t.i\lf .ltlJOht-""''f
m:" i\ f-, Dt t it""c

/.T-Ht\.h

PRIME MINISTER OF THE FEDERAL

DEMOCRATIC REPUBLIC OF ETHIOPIA