Cash Against Document
(CAD/IBC) |
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Meaning
The term Inward Bills for collection (IBC) is used
in Dashen Bank to indicate the set of Collection
Documents which are also known as Cash Against
Document (CAD).
Collection" means the handling by banks, on
instructions received, of documents as defined in
below, in order to
a) Obtain acceptance and/or, as the case may be,
payment, or
b) Deliver commercial documents against acceptance
and/or, as the case may be against payment,
c) Deliver documents on other terms and conditions.
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Documents required for
Permit Approval – Two stages |
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Purchase Order Approval
a) Purchase Order
b) Proforma Invoice
c) Insurance Certificate
d) Copy of valid Trade License
e) In case of second hand items like cars Commercial
Invoice (certified by chamber of commerce) which
show original price from third party other than the
original supplier.
f) Tax registration certificate (TIN certificate)
g) Original title certificate for used vehicles.
h) NBE issues delinquent list of importers
periodically. Customer’s name should not appear in
the delinquent importers list of NBE for the period.
If the name appears, there should be subsequent list
indicating the given customer has cleared
outstanding items at NBE.
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Foreign Exchange Permit
Approval (upon receipt of shipping documents) |
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a) Import
Application Form duly filled, Signed & Stamped (as
applicable)
b) IBC advice
ticket
c) Shipping
Documents, comprising minimum of the following: -
Commercial Invoices minimum 3 (three) copies
certified by the chamber of commerce of exporter’s
country.
Packing Lists minimum 3 (three) copies.
Certificate of Origin minimum 3 (three) copies.
Transportation Document in full set: -
Full set Bill of Lading (B/L) and nonnegotiable
copies OR Air Waybill (AWB) OR Rail Waybill (RWB) OR
Truck Waybill(TWB) OR Parcel Post Receipt (PPR) OR
Courier’s Receipt (from DHL, UPS, EMS, etc.)
d) Previously Approved Purchase Order.
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Expectations from
importers on CAD basis |
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Customers are required to
inform their foreign counter party (exporters/
suppliers) as the bank no way of contacting
exporter: -
Inform exporters regarding Foreign Exchange
Regulation of Ethiopia applicable to import as entry
of consignments are subject to fulfillment of the
regulation.
To stress on the importance of presenting shipping
documents that comply with Exchange Regulations of
Ethiopia.
Shipping documents should enter the country only
through bank channels i.e. only from exporters’
banks to local bank. Hand deliveries and mailing
from exporter direct to local banks are not allowed.
Importers are expected to stress on the importance
of compliance to delivery channel.
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