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1. GENERAL PRESENTATION:  1.1 General characteristics 1.2 General Information 1.3. The legal framework of trade relationships

2. TRADE STRUCTURE (1996):   2.1 Main imported and exported products 2.3 Main trading partners

3. FOREIGN TRADE CONTROL:   3.1 Imports regulations 3.2 Exports regulations 3-3. Other formalities and documents

4. FINANCIAL REGULATIONS OF FOREIGN TRADE OPERATIONS:   4.1 Banking system 4.2. Exchange system 4.3. Methods and means for international settlement

5. CUSTOMS TAXATION:   5.1 Applicable duties and taxes 5-2.Special provisions

6. FOREIGN TRADE LOGISTIC:   6.1 International transport 6.2 Telecommunications 6.3 Distribution system

  

7. USEFUL ADDRESSES

1. GENERAL PRESENTATION: 

1.1 General characteristics:

* Variable dates

1.2 General Information

1.3. The legal framework of trade relationships:

Djibouti is a member of the following international organizations:

The World Trade Organization (WTO) and its specialized organs;

United Nations Organization (UNO) and its specialized organs;

Organization of the Islamic Conference (OIC) and its specialized organs;

Organization of African Unity (OAU);

League of Arab States;

Group 77;

African Development Bank.

Djibouti is signatory to co-operation agreements between the COMESA countries and those of Lome Convention.

2. TRADE STRUCTURE (1996): 

2.1 Main imported and exported products:

2.3 Main trading partners :

3.1 Imports regulations:

Foreign trade operations are generally free from all controls and restrictions. Yet the imports of arms and ammunition, drugs and salacious literature require a license from the competent authorities.

Besides products of no commercial value may be imported free of duty and taxes. But advertising materials are subject to internal taxes.

The following documents are required for imports:

Commercial invoice: Two copies of the commercial invoice must be signed by the exporter and must contain the name and address of the shipper, date of shipment , name and address of the consignee number and types of containers, marks and numbers, content , weight, and the place of origin and C.I.F value in US dollars. The importer must certify invoices;

Certificate of origin: Usually not required but in case it is requested by the importer or the letter of credit , two copies are necessary and they must be certified by a recognized chamber of commerce;

Bill of lading: The bill of lading must show the name of the shipper, name and address of the consignee, port of destination, description of goods, listing of freight and other charges, number of the bill of lading in the full set, the date and signature of the carrier’s official. The bill of lading may be signed by the shipper or his authorized agent. The Information must be identical to that shown on the invoices and the packages. The airway bill replaces the bill of lading on air cargo shipments.

3.2 Exports regulations:

The documents required at Export level are the following: 

Veterinary certificate: This certificate is compulsory for the shipment of live animals;

Plant health certificate: The shipment of plants requires a phytopathological certificate.

3-3. Other formalities and documents:

For the imports of alcoholic products, the percentage of alcohol and the volume in liters must be specified on the invoice In this regard, it is advisable to use a form comprising both the English and French languages. 

Imports estimate at US$ 1000 or above must go through pre-shipment inspection in the country of origin involving the verification of prices invoice and the system of customs classification as well as quality. 

The other formalities are as follows:

Labeling and marking: Labels should indicate the descriptive name of the product, the list of ingredients, the name, address and the phone number of the manufacturer or distributor, net weight or volume in metric units, and instructions for storage and use. Some details may be required in the case of a new market such as the country of origin, expiry date, percentages of the predominant product ingredients.

The consignee’s marks and port’s marks should be inscribed on the packages to facilitate arrival of the shipments;

Packing: Packing should be made in such a way as to withstand rough handling and the tropical climate of Djibouti.

4. FINANCIAL REGULATIONS OF FOREIGN TRADE OPERATIONS: 

4.1 Banking system:

The major banks of Djibouti are as follows: Banque Al BarakaDjibouti, Banque de Djibouti et du Moyen Orient SA, Banque Indosuez Mer Rouge, Banque pour le Commerce et l’Industrie Mer Rouge, the British Bank of Middle-East, la banque de dépôt de l’Ethiopie, la Banque d’Epargne de la Somalie et la caisse de développement. The central bank is the Banque Nationale de Djibouti.

4.2. Exchange system:

There are no exchange controls for international transactions but the Central is responsible for the issuing and control of currency.

4.3. Methods and means for international settlement:

Payments are freely made. Commercial enterprises may negotiate forward exchange controls for commercial and financial transactions through local banks or banks abroad.

5. CUSTOMS TAXATION: 

Djibouti’s customs system is based on the Harmonized Description and coding System of Tariff Classification (HS). 

5.1 Applicable duties and taxes:

Most of products are freely imported but they are submitted to domestic taxes.

Ad valorem duties: Customs valuation is determined on the basis of Brussels Definition of Value. Customs value is defined as the normal price for such goods between an independent buyer and an independent seller in the country of Export of this product.

Preferential duties: Preferential duties apply to the member countries of the Preferential Trade Area for Eastern and Southern African States (PTA) including: Angola, Burundi, Comoros, Djibouti, Ethiopia, Kenya, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Uganda, Tanzania, Rwanda, Seychelles, Somalia, Sudan, Swaziland, Zambia and Zimbabwe as well as to the signatory countries of the Lome Convention.

Customs surcharges and indirect taxes: The general consumption tax is levied at the rate of 33% on luxury goods and 20% on all other products.

5-2.Special provisions:

A limited number of food products, fertilizers and books are exempt from consumer tax. On the other hand alcoholic beverages, non- carbonated mineral water, petroleum products, Khat and tobacco are subject to surtax at various rates. Dairy products and fruit juices are subject to additional taxes.

6. FOREIGN TRADE LOGISTIC: 

6.1 International transport:

Maritime transport : Djibouti is the main port of the country.

Air transport : The international airport is located in Ambouli, six kilometers from Djibouti (JIB). Other lines serve Djibouti: Aeroflot, Air France, Air Madagascar, Air Tanzanie, Alyemda, Ethiopian, Somali and Yeminia airlines

Land transport : In 1994, Djibouti was provided with 3,067kilometers of roads of which1,130 km of main roads, 1,800 km of regional roads, and 125 km of urban roads. More than 400 km of the roads are bitumen surfaced. In 1995 the road network extended over 2,890, 12.6% of which were paved. The railway network extends over 100 km.

6.2 Telecommunications:

In 1995, the number of telephone lines reached 7,500 lines. There is a telephone network between Djibouti, the North of Yemen and Saudi Arabia. An international radio telephone service connects Djibouti to Europe.

6.3 Distribution system:

The distribution network is traditional; it is made up of wholesalers and retailers.

7. USEFUL ADDRESSES: