Cash Against Document
(CAD/IBC) |
|
|
The total amount of export that an exporter can
transact under this mode of sales will not exceed
USD30,000 at any one time.
|
Documents required for
Permit Approval |
|
|
a) Duly signed contract by seller & buyer
b) Undertaking letter of our customer that CAD will
be settled within a maximum of 90 days from date of
the Foreign Exchange Permit.
c) Seller's invoice
d) Export License Valid for the year
e) Tax registration certificate (TIN certificate)
f) Export permit application form duly filled,
signed & stamped (as appropriate) by the customer.
g) If the export is Teff or Berbere an undertaking
letter from the exporter that the goods will be
unloaded as mentioned in the export permit
(excluding Djibouti and The Sudan)
h) NBE issues delinquent list of exporters
periodically. Customer’s name should not appear in
the delinquent exporters list of NBE for the period.
If the name appears, there should be subsequent list
indicating the given customer has cleared all
outstanding items at NBE.
|
Expectations from importers on CAD basis |
|
|
a) Exporter should know
foreign counter part as detail as possible with
regard to financial soundness, reliability,
integrity, full address, etc.
b) Sales/Purchase contract
should exist between the two parties (importer and
exporter).
c) Follow up of payment should
be done by exporter as nonpayment or even delay of
remittance above 90 days will put name of exporter
in delinquent list freezing further exports until
proceeds are received.
|
