Export to Djibouti

Djibouti has no trade agreement with India. It is a small country, but its ports handle most of Ethiopia's foreign trade, and it has large free zones for storage and re-export. Its own market buys food, building materials and consumer goods. The Djibouti franc is pegged to the US dollar.

What it buys from India

• Rice, spices and other food
• Building materials, steel and ceramic products
• Medicines and consumer goods
• Goods in transit to Ethiopia

Import rules on their side

• Goods for Ethiopia move under transit documents and must also meet Ethiopia's import rules (EFDA registration, LC from an Ethiopian bank).
• Food and medicines for the local market need clearance from Djibouti's health ministry; labels should carry French or Arabic.
• Goods stored in Djibouti's free zones can be re-exported without local duty; ask the buyer whether the cargo is for the free zone, local use or transit.

Practical tips

• Make the consignee and notify party clear on the bill of lading — transit cargo for Ethiopia is often consigned to an Ethiopian bank under an LC.
• Quote in USD; the Djibouti franc's dollar peg makes USD pricing standard.
• Take advance payment or a confirmed LC; check ECGC cover before giving credit.