CPC PPT 1.pptx

ETHIOPIAN CUSTOMS COMMISSION
Customs procedure code (CPC)
December 2019
By:- Tesfaye F

Welcome!
• Introduction of the other trainers and students
• Please tell us a little about yourselves, including:
• Your name
• Your current position
• Your previous jobs and education
• This class will run from 08:30 am to 05:00pm

Contents
• 1.Introduction
• 2.Principle Customs Operations
• 3.Model(type)of Declaration
• 4.CPC
• 5.Purposeof CPCs”
• 6.CPC Structures
• 6.1.General Procedure
• 6.2. Requested procedure
• 6.3.Previous procedure
• 6.4.Extended ProcedureCode
• 6.5.AdditionalProcedureCodes(APC)
• 7.CorrelationbetweenEPCandAPC
• 8.CPC Impact onDuty andTax

1. Introduction
• Customs operations involve the administration of customs law
relating to:-
Importation,
Exportation,
 Movement or storage of goods and
The collection of duties and taxes.
• In this regard, customs operations are a key factor for:-
Trade Facilitation and
Economic Development of a country.

2. Principle Customs Operations
1. Promote a self assessment
2. Customs control based on Risk management
3. Promote and support manufacturing industry and economic
development
4. Provide clear information to customers by using
internationally accepted information technology system
5. Prevent illegal practices by promoting self compliance

Group discussion
1. What is customs declaration?
2. List the possible ways a declaration may be presented to
customs?
3. Explain types of customs procedure?

3. Model (type) of Declaration
• A customs declaration is an official document that lists and gives
details of goods that are being imported or exported.
• In principle, all import, export, or transit goods need to be declared.
• There are four ways customs receive a declaration;
These are:
Verbal or orally;
By body movement;
Written
electronically

…..Model(type)ofDeclaration
• Traders can complete and register electronic declarations into
electronics customs management system (eCMS).
• The declaration model (or regime) number is entered on the
SAD box number 1.
• Customs procedures have three main divisions these are
i. Transit procedures,
ii. Warehousing procedures and
iii. Clearance procedures.

• Each division of procedures also further classified into
small declaration model categories.
For all import declarations model is “IM”
For all export declaration model is ‟EX”
• These declaration models are combination of letters and
numbers_ alpha numerical,
• The first numeric character of the CPC signifies the
general procedure code.

• Any goods in respect of which goods declaration is presented
shall, in the declaration, be identified by CPC as any of the
following:
Outright export or temporary export,
Permanent or temporary import,
Imported/export for inward/outward processing or
unaltered,
Dutiable or duty free etc.

…Mode of declarations
Export regime
1. EX1
2. EX2
3. EX3
4. EX7
5. EX8
Import regime
1. IM4
2. IM5
3. IM6
4. IM7
5. IM8

All export declaration model is ‟EX”

For all import declarations, the model is “IM”

4. CPC
• Is an acronym representing the customs procedure code.
• Used to describes
Customs procedure:- Transit, warehouse and Clearance
 Declaration:- Import and Export
Used to codify
 whether payable or exempted from duty and taxes

………CPC
• Composed of seven digits and classified in to two parts
• The first four consecutive digits together represent extended
procedure code
• The last consecutive three digits represent Additional procedure
code

Group discussion (10 minute)
• What is the purpose of CPC?

5. Purpose of CPCs”
To identify the type of customs procedure
Allows use of 1 form of declaration for all types of procedures
Specifying a procedure performed by Customs on goods which
are subject to Customs control.
Identify the type of procedure for which the goods are entered
and from which they came
To secure the highest degree of harmony and uniformity in
Customs systems;

…………PurposeofCPCs
To facilitate the exchange of data and information;
Basis for the control of movement of goods;
Facilitates the collection of statistics
Facilitates assessment and collection of revenue;
Facilitates the targeting of consignments for inspections and
documentary check or other regulatory controls when using
Selectivity function in

…………PurposeofCPCs
Facilitates provision of more detailed information
Triggers actions in the computer system
International coding structure
To identify if the goods are claiming a special duty/tax
treatment

6. CPC Structures
• The customs procedure codes (CPCs) entered in eCMS SAD
box 37
• Is composed of a 7-didgit numeric code, which is divided into
two parts:
i. Extended Procedure Code: First 4-digit code
ii. Additional Procedure Code: the last 3-digit code
• The first digit - The highest (or broadest) level
o Indicates General Procedure code which represents
type of customs procedure.

Composed of seven digits and classified in to two parts
CPC EPC APC
 Extended procedure code is the sum of requested and previous
procedure code
 Requested procedure code is the first 2 digit of EPC
 Previous procedure code is the third and fourth digit of EPC

6.1. General Procedure
• The first numeric character of the CPC
• Also known as standard procedure code
• An internationally agreed standard.
• This number combines with the second number to create the
Requested Procedure

General Procedure
• Permanent Export
• Temporary Export
• Re-export
• Entry for home use/ direct import
• Temporary Import
• Re-importation
• Customs warehousing
• Customs Transit
• Other Procedures
1
2
3
4
5
6
7
8
9
Description

6.2. Requested procedure
• The first and second digits of the extended procedure Code
• Represents the customs procedure with which the goods
are currently being cleared for/ asked for.

Group Discussion(10 minute )
1. Explain types of customs transit procedure?
•

Group Discussion(10 minute )
1. Explain types of customs transit procedure?
i. Inward transit procedure
ii. Outward transit procedure
iii. Interior/inland transit procedure
iv. Through transit procedure

Discussion….RP
• 80 – Through Transit procedure
• 81 – Inward transit procedure
• 82 – Outward transit procedure
• 83 – Inland transit procedure

Requested Procedure Codes for Transit
• 80 – Through Transit procedure
• 81 – Inward transit procedure
• 82 – Outward transit procedure
• 83 – Inland transit procedure

Requested Procedure Codes for Warehousing
• 71 – Entry for customs warehousing
• 72 – Entry for Industrial / Processing Warehouse

Discussion….RP
• 10 - Permanent Export
• 21 - Temporary Export for return in unaltered state.
• 22 - Temporary Export for customs outward processing
• 30 - Re-export

Export Requested Procedure Codes for clearance
• 10 - Permanent Export
• 21 - Temporary Export for return in unaltered state.
• 22 - Temporary Export for customs outward processing
• 30 - Re-export

Discussion……RP
• 40 - Entry for home use (Direct import)
• 41 - Entry for home use (2ND SCHEDULE)
• 42 - Entry for home use 2-2 special schedule
• 43 - Entry For Home Use (ADDITIONAL 2ND SCHEDULE)
• 51 - Temporary Import for return in unaltered state.
• 52 - Temporary import for inward processing
• 60 - Re-importation

Import Requested Procedure Codes for Clearance
• 40 - Entry for home use (Direct import)
• 41 - Entry for home use (2ND SCHEDULE)
• 42 - Entry for home use 2-2 special schedule
• 43 - Entry For Home Use (ADDITIONAL 2ND SCHEDULE)
• 51 - Temporary Import for return in unaltered state.
• 52 - Temporary import for inward processing
• 60 - Re-importation

6.3.Previous procedure
• Is the third and fourth digits of the extended procedure
• It defines the last procedure to which the goods on the declaration
had been subjected (if any).

Discussion…PP
• 00 Direct (No previous procedure)
• 10 Direct Export
• 21 Temporary export for return in unaltered state.
• 22 Temporary export for outward processing

Previous (PPC) Description
• 00 Direct (No previous procedure)
• 10 Direct Export
• 21 Temporary export for return in unaltered state.
• 22 Temporary export for outward processing

Discussion…….Previousprocedure
• 40 Entry for home consumption
• 51 Temporary Import for return in unaltered state.
• 52 Temporary import for customs inward processing

…….Previousprocedure
• 40 Entry for home consumption
• 51 Temporary Import for return in unaltered state.
• 52 Temporary import for customs inward processing

• 71 Entry for customs warehousing
• 72 Entry for Industrial / Processing Warehouse

• 81 Inward Transit
• 83 Inland transit procedure

6.4. Extended Procedure Code
• The First 4-digit code
• Internationally Defined
• If there is no previous procedure, code 00 is added to the requested
procedure to create the extended procedure.
Requested
Procedure
Previous
Procedure
Extended Procedure

The customs procedure codes (CPCs) entered in electronics Customs
Management System SAD box 37.

For example:-
In the EPC Code 4081;
40 81
General procedure
Requested procedure
Previous Procedure

EPCs
• 5100 - Temporary import for return in unaltered state.
• 4083 - Entry for home use after Inland Transit procedure

EPC
• 1000 - Direct permanent export
• 3052-

1. Group discussion …Matching
1. 1000 A
2. 1071 C
3. 4071 E
4. 4052 D
5. 4081 F
6. 1040 B
A. Direct permanent export
B. Exportation After entry for
home use
C. Direct Export from Export
warehouse
D. Entry for home use after TI
for inward processing
E. Entry for home use after
customs warehousing procedure
F. Entry for home use after inward
transit procedure

1. Group discussion …Matching
1. 1000 * A
2. 1071 * C
3. 4071 * E
4. 4052 * D
5. 4081 * F
6. 1040 * B
A. Direct permanent export
B. Exportation After entry for
home use
C. Direct Export from Export
warehouse
D. Entry for home use after TI
for inward processing
E. Entry for home use after
F. Entry for home use after inward
transit procedure

2. Group discussion ….Matching
1. 4271 * F
2. 4051 * A
3. 4083 * B
4. 4100 * C
5. 4181 * E
6. 4152 * D

A. 4271 * F
B. 4051 * A
C. 4083 * B
D. 4100 * C
E. 4181 * E
F. 4152 * D
A. Entry for home use after TI and return in unaltered state
B. Entry for home use after Inland Transit procedure
C. Direct Importation under 2ND SCHEDULE
procedure
D. Entry for home after temporary importation for
inward processing (2nd)
E. Entry for home use (2ND SCHEDULE) after
Inward Transit procedure
F. Entry for home use after warehousing (2-2 Sch)

1. 2100 *E
2. 6021 *A
3. 7181 *C
4. 8100 *D
5. 6022 *B
6. 2200 *F
A. Reimport after TE for return in an
unaltered state
B. Reimport after TE for customs
outward processing
C. Entry for Customs Warehouse after
D. Inward transit
E. Temporary Export for return in
unaltered state
F. Temporary Export for outward
processing

1. 2100 *E
2. 6021 *A
3. 7181 *C
4. 8100 *D
5. 6022 *B
6. 2200 *F
A. Reimport after TE for return in an unaltered state
B. Reimport after TE for customs outward
processing
C. Entry for Customs Warehouse after Inward
Transit procedure
D. Inward transit
E. Temporary Export for return in unaltered state
F. Temporary Export for outward processing

1. 3071 * D
2. 4383 * C
3. 4381 * B
4. 6010 * A
A. Re-import after direct export
B. Entry For Home Use (ADD.
2ND SCHEDULE) after Inward
Transit procedure
C. Entry For Home Use
(ADDITIONAL 2ND
SCHEDULE) after Inland
Transit procedure
D. Re-export after warehousing
procedure

6.5.Additional Procedure Codes(APC)
• Is national defined codes also known as national procedures code
• Provide extra divisions beyond the four-digit CPC level
• Consists of 3 digits and it’s an extension of EPC
• This represents the national rebates, remission procedures available in
the country.
• They are mainly linked to rebates
• Are used to activate agreements or concessions/exemptions that link
particular Importers and Commodity codes to special control or
taxation treatment/arrangements

……AdditionalProcedureCodes(APC)

APC
• 000 - Goods for private sector
• 100 - Home produced goods by private sector
• 101 - Home produced goods by Gov't organization
• 190- Exportation of personal effects and other nes
•
Description

• 401 - Goods for Gov't budgetary institutions
• 402 - Goods for private sector exempted from with-holding tax
• 403 - Goods for the public Enterprise. which are fully or partially owned
by Gov't
• 404 - Medical supplies & equipment for licensed org. with Certificate
• 405 - Raw Materials and inputs imported only for the manufa. of drugs by
Pha
• 409 - Agricultural inputs (Fertilizer, Pesticides & seeds)
• 410 - Goods for public enterprise exempted from withholding tax
APC Description

APC Description
• 415 Goods under Diplomatic or consular privileges
• 419 Capital goods for NGO
• 421- Relief from duties & taxes under special exemption other than(414-419
• 427 - Relief, duties, taxes, Scan - special Exemption Other Than (414-419)
• 430 - Articles and Equipment specialized for use by the disabled or
handicap
•

APC…..
• 435 Consumable goods under Border trade procedure
• 440 Capital goods for INVESTMENT -by private sector
• 441 Capital goods for INVESTMENT -by Public Enterprise
• 442 Transfer of duty free imported goods from investment to another.
• 443 Goods previously declared under investment request to pay tax

APC…..
• 483 Goods notified and certified but short shipped and short landed
• 485 project goods re-exported paying customs Duty &Excise tax based on
Depreciation.
• 487 Transfer of used vehicles from duty free entitled body to GOV't org.
• 488 Re-declaring of duty free vehicles& machineries having>=10 or12yrs serve

APC…..
• 491 Transfer of goods from previously D.F entitled body to
another.
• 492 Transfer of T. Imported goods from one Project to another
project.
• 494 Transfer of T. Imported goods to duty free entitled body

APC…..
• 505 Goods under Voucher Scheme
• 506 Goods under Bonded Manufacturing Scheme (BMW)
• 701 Goods for private warehouses
• 800 Goods in Transit

7. Correlation between EPC and APC
In the CPC Code 4081000
40 81 000 APC
General procedure
Requested procedure
Previous Procedure

……Correlation between EPC and APC

1. Group discussion..Matching
CPC
1. 1000190 - B
2. 1000100 - A
3. 1000506 - D
4. 1000505 - C
Description
A. Permanent Exportation of Home
produced goods by private sector
B. Permanent Exportation of personal
effects and others necessities
C. Permanent Exportation of Goods
under Voucher Scheme
D. Permanent Exportation of Goods
under Bonded Manufacturing Scheme
E. Permanent Exportation of Goods
under Diplomatic or consular

1. Group discussion..Matching
CPC
1. 1000190 - B
2. 1000100 - A
3. 1000506 - D
4. 1000505 - C
Description
A. Permanent Exportation of Home
produced goods by private sector
B. Permanent Exportation of
personal effects and others
necessities
C. Permanent Exportation of Goods
under Voucher Scheme
D. Permanent Exportation of Goods
under Bonded Manufacturing
Scheme
E. Permanent Exportation of Goods
under Diplomatic or consular

2. Group discussion- Matching..
1. 2100000- C
2. 2200417 - F
3. 2100403- D
4. 1040000- A
5. 2200404- E
6. 1040403- B
A. Permanent exportationafter entry for home use- goods for
private sectors
B. Permanent exportationafter entry for home use- goods for
the public enterprise which are fully or partial owned by
government
C. Temporary Export for return in an unaltered state- Goods for
Private sectors
D. Temporary Export for return in an unalteredstate- Goods for
the public Enterprise. which are fully or partially owned
by Government
E. Temporary Export for outward processing Medical supplies
& equipment for licensed org. With certificate of
competence
F. Temporary Export for outward processing Equipment and
Supplies for aircrafts engaged in International flights

1. 2100000- C
2. 2200417 - F
3. 2100403- D
4. 1040000- A
5. 2200404- E
6. 1040403- B
A. Permanent exportationafterentryforhomeuse- goods for private
sectors
B. Permanent exportationafterentryforhomeuse-goods for the
public enterprise which are fully or partial owned by
government
C. TemporaryExportforreturninanunalteredstate-Goods for Private
sectors
D. TemporaryExportforreturninanunalteredstate-Goods for the
public Enterprise. which are fully or partially owned by
Government
E. TemporaryExportforoutwardprocessing Medical supplies &
equipment for licensed org. With certificate of competence
F. TemporaryExportforoutwardprocessing Equipment and Supplies
for aircrafts engaged in International flights

1. 1071100- E
2. 1040440- A
3. 1040476- C
4. 1040441- D
5. 1040473- B
A. Permanent ExportationAfter entryfor home use-
Capital goods for investment by private sector
B. Permanent ExportationAfter entryfor home use -
Goods for International, regional organization &
their foreign personnel (not part of UN.)
C. Permanent ExportationAfter entryfor home use - Goods
for International, regional organizations.& their
foreign personnel (part of UN)
D. Permanent ExportationAfter entryfor home use Capital
goods for INVESTMENT -by public enterprise
E. Permanent exportation from Export warehouse
Home produced goods by private sector from
warehouse

1. 1071100- E
2. 1040440- A
3. 1040476- C
4. 1040441- D
5. 1040473- B
A. Permanent ExportationAfterentryforhomeuse- Capital goods for
investment by private sector
B. Permanent ExportationAfterentryforhomeuse- Goods for
International, regional organization & their foreign personnel (not
part of UN.)
C. Permanent ExportationAfterentryforhomeuse-Goods for
International, regional organizations.& their foreign personnel
(part of UN)
D. Permanent ExportationAfterentryforhomeuse Capital goods for
INVESTMENT -by public enterprise
E. Permanent exportation from Export warehouse Home produced goods
by private sector from warehouse

1. 4071440 * A
2. 4083440 * C
3. 4081440 * B
4. 4000440 * D
A. capital goods for investment -by
private sector Entry for home use after
B. Capital goods for investment -by
C. Capital goods for investment -by
interior/inland Transit procedure
D. Capital goods for investment -by
private sector Direct entry for home
use

1. 4071440 * A
2. 4083440 * C
3. 4081440 * B
4. 4000440 * D
A. capital goods for investment -by
private sector Entry for home use
after customs warehousing procedure
B. Capital goods for investment -by
after Inward Transit procedure
C. Capital goods for investment -by
after interior/inland Transit procedure
D. Capital goods for investment -by
private sector Direct entry for home
use

1. 4081427 *C
2. 4083408 *A
3. 4081421 *B
4.
A. Entry for home use after inland Transit
procedure -Donation of personal effects for
passengers, returnees and residences
B. Entry for home use after Inward Transit
procedure-Relief from duties & taxes under
special exemption other than(415-419)
C. Entry for home use after Inward Transit
procedure-Relief from duties & taxes
including scanning fees other than(415-
419)

7.APC Impact on Duty and Tax
7.1. APC exempted from all duty and tax
• 411
• 413
• "415"
• "416"
• "417"
• "418"
• "419"
• "421"
• "422"
• "423" )
• "424" )
• "425"
• "426"
• "427"
• "430"
• "432" )
• "433"
• "434"
• "440" )
• "441"
• "442"
• "473"
• "476"
• "477"
• "483"
• "487"
• "488"
• "491"
• "493"
• "494"
• "496"
• "498"
• "499"
• "507"

APC exempted from withholding
• "401"
• "402"
• "406"
• "408"
• "410"
• "492"
• "505"

APC exempted from sure and withholding
• "431"
• "489"
• "490"
• "506"

APC exempted from VAT
• "412"

APC exempted from VAT and withholding
• "405" )
• "407" )
• "409" )
• "420"

APC exempted from VAT and sure
• 404

APC exempted from VAT, sure and
withholding
• 485

APC exempted from excise
• "444"
• "445"

APC pays only customs duty
• "450"

APC pays only VAT and withholding
• 451

tesfsh3145@yahoo.com
tesfayef2019@gmail.com
0911976406

Thank you for your participation…

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