Saturday, 07 July 2018 08:38

Money Transfer

INCOMING TRANSFER THROUGH AGENTS

Incoming Transfers, Handling incoming money transfers from abroad through CBO’s International Money transfer Organizations for further credit to our customer account or payment in cash to the customer. i.e. Western Union, MoneyGram, Dahabshiil, X-press, RIA, Trans Fast etc. Inward Transfers could be sent through Swift, Personal or Bank Checks and Remittance Service Providers.

OUTGOING TRANSFER (TELELEGRAPHICTRANSFERS)

Outgoing Transfer Payment processed to individuals or organizations aboard upon the request of the Bank’s customers. Such transfers are used to effect payment for imports, tuition fees, membership fees, consultancy fees, medical bills, hotel booking, etc. Transfers can be made either through Swift or through Foreign Bank Draft. Foreign exchange permit is required to make outgoing transfers.

Saturday, 07 July 2018 08:33

Export

EXPORT BY LETTER OF CREDIT
/Documentary Credit/

An export documentary letter of credit is a document whereby CBO Exporter buyer instructs their bank to pay our customers, assuming that the agreed conditions specified in the original documentary credit, are met. It is an internationally accepted method of settling trade payments. Rules and guidelines are governed by the International Chamber of Commerce (ICC).
Export-payment available by sight/negotiation/acceptance of bills
*If approved by the National Bank of Ethiopia

EXPORT BY CASH AGAINST DOCUMENT
/Documentary Collection/

A payment arrangement in which an exporter instructs CBO to hand over shipping and title documents to the importer when the importer fully pays the accompanying bill of exchange or draft.

EXPORT BY ADVANCE PAYMENT
/Advance Payment/

Advance payment: is a method through which CBO customer /seller/ receives payment from a buyer prior to shipment or the agreed upon goods or rendering the agreed upon service. Export-Payment through bank transfers, traveler cheques, cash (as long as it is declared).

EXPORT ON CONSIGNMENT

Consignment basis payment It is a method of payment in which the title to the goods remains with the CBO customer /seller/ until an agent (distributor) in foreign country sells them. Payment is made to the seller if and when the agent (distributor) sells the goods.
Export is applicable to perishable items: fruits, flowers, meat, molasses, etc as approved by the National Bank of Ethiopia

Saturday, 07 July 2018 08:28

Import

  • IMPORT BY LETTER OF CREDIT
    /Documentary Credit/

An import Letter of Credit is an unconditional undertaking, given by CBO at the request of our customer (the Applicant or Importer) to pay the Beneficiary (or Supplier) against stipulated documents, provided all the terms and conditions in the Letter of Credit are complied with.
Import-available by sight payment/negotiation payment/deferred payment*/acceptance payment*

  • IMPORT BY CASH AGAINST DOCUMENT
    /Documentary Collection/

Documentary collection is a method through which banks handle a seller's commercial documents with or without financial documents in accordance with instructions received from the seller in order to deliver the documents to buyer (importer) against payment and/or acceptance or against other terms and conditions.

  • IMPORT BY ADVANCE PAYMENT

Advance payment: is a method through which a seller receives payment from a buyer prior to shipment or the agreed upon goods or rendering the agreed upon service.
Import-Payment though bank transfers

Monday, 18 September 2017 11:25

Trade Service

The Trade Service is one of the core processes of the bank entrusted with the task of international banking services.

The services are now provided at all branches of the bank with a single contact point of customer service relationship officers assigned for this purpose only.

The following are major services provided:

Documentary credit (L/C): is a written undertaking by a bank given to the seller at a request and/or the instruction of the buyer to make payment or accept and pay bill of exchanging (draft) drawn by the seller up to a stated sum of money within a prescribed time limit and against stipulated documents.

Import-available by sight payment/negotiation payment/deferred payment*/acceptance payment*

Export-payment available by sight/negotiation/acceptance of bills

*If approved by the National Bank of Ethiopia

Documentary collection: is a method through which banks handle a seller's commercial documents with or without financial documents in accordance with instructions received from the seller in order to deliver the documents to buyer (importer) against payment and/or acceptance or against other terms and conditions.

Import-available by sight payment

Export-available by sight payment/acceptance payment

Advance payment: is a method through which a seller receives payment from a buyer prior to shipment or the agreed upon goods or rendering the agreed upon service.

Import-Payment though bank transfers

Export-Payment through bank transfers, traveler cheques, cash (as long as it is declared).

Consignment basis payment: It is a method of payment in which the title to the goods remains with the seller until an agent (distributor) in foreign country sells them. Payment is made to the seller if and when the agent (distributor) sells the goods.

Export- it is applicable to perishable items: fruits, flowers, meat, molasses, etc as approved by the National Bank of Ethiopia

Guarantee: A letter of guarantee issued by an issuing bank/guarantor is a written undertaking by the bank to compensate (pay sum of money) to the beneficiary (local or foreign) in the event that the obligator/principal fails to fulfill his/her /its obligations in accordance with the terms and conditions of the guarantee.

Types of guarantee:

  • Bid bond
  • performance bond
  • advance payment guarantee
  • loan guarantee, retention guarantee
  • customs duty guarantee

Franco valuta license(permit): is a license issued to importers of goods on which no foreign exchange is payable.

Small export items license (permit): is a license issued for small export items to tourists, foreign residents of Ethiopian nationals who wish to take souvenir, samples, gifts, repairs, replacements, exhibitions and personal effects and belongingness, etc.

Eligibility criteria/conditions

  • Customers that request the above products of Trade Service, except guarantee should fulfill the following criteria:
  • Should maintain current account with the bank
  • Should be in the possession of valid trade license for import /export as appropriate or business license or investment or industry license or must exist in the list of budgetary government organizations issued by the National Bank of Ethiopia. In case of non-government organization, certificate issued by the Ministry of Justice, Regional Governments and offices authorized by proclamation.
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