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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.
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.
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.