Procure Follow-Up SOP

thRough sustained
availability of life
saving commodities
በኢትዮጵያ ፌዴራላዊ ዴሞክራሲያዊ ሪፐብሊክ
THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA
የመድኃኒት ፈንድና አቅርቦት ኤጀንሲ
PHARMACEUTICALS FUND AND SUPPLY AGENCY
Standard Operating Procedure

(SOP) for Pharmaceuticals
Procurement Follow Up
October, 2015
Addis Ababa, Ethiopia
Standard Operating Procedure (SOP) for
Pharmaceuticals Procurement Follow UP
December, 2016
Addis Ababa, Ethiopia
Table of Contents
Foreword …………………………………………………………...............................................................…………………..……………….. I
Acknowledgment ……………………………………………….....................................................………………………...…………….. II
Acronyms ……………………………………………….....................................................…………………..............……...…………….. III
Definition of Technical Terms ………………………………………………......……………….........................………...…………….. 1
1.. SOP- Receive Import Intiation Documents ……………………..............................………………………...…………….. 4
2.. SOP- Request for Foreign Currency Reserve from NBE ………….......................................………...…………….. 7
3.. SOP- Ensure Import Insurance Coverage ...................................................................................................... 10
4.. SOP- Bank Application for Letter of Credit (LC) .......................................................................................... 13
5.. SOP- Bank Application for Cash against Document (CAD) ....................................................................... 17
6.. SOP- Air Shipment Follow-up .......................................................................................................................... 20
7.. SOP- Sea Shipment Follow-up ......................................................................................................................... 24
8.. SOP- Clearing Processes .................................................................................................................................... 29
9.. SOP- Transporting Pharmaceutical Goods from Port to Warehouse ................................................. 32
10.. SOP - Claim Processing ..................................................................................................................................... 35
11.. SOP - Officialization/Declaration ................................................................................................................. 40
12.. SOP - Managing Performance Bond .............................................................................................................. 43
13. . SOP - Routine Reports ..................................................................................................................................... 46
14.. Annexes ................................................................................................................................................................. 49

I
Foreword
Pharmaceuticals Fund and Supply Agency (PFSA) is coordinating sector wide effort aimed at significantly
improving sustainable availability of quality assured pharmaceuticals at an affordable price to the public.
As part of this effort, the Agency has developed standard operating procedures (SOP) for pharmaceuticals
procurement follow up activities with a view to standardize work processes and to make the service more
effective and efficient.
This manual contains thirteen procurement follow up SOPs that document regularly recurring work process-
es in pharmaceuticals procurement follow ups. The SOP will promote access to quality assured pharmaceu-
ticals through consistent implementation of processes and procedures. The SOP can be used as reference
material for professionals working on sourcing of pharmaceuticals in the public sector. The implementation
of the SOP needs to be re-enforced by management at all levels and it should be reviewed regularly.
I would like to take this opportunity to thank all who participated in the development of this SOP. I would also
like to encourage users of the Manual to send their comments regarding the Manual to the Agency via mail
(Pharmaceuticals Fund and Supply Agency (PFSA), P. O. Box 21904, Addis Ababa, Ethiopia)
Meskele Lera
Director General, Pharmaceuticals Fund and Supply Agency (PFSA)

II
ACKNOWLEDGMENTS
Pharmaceuticals Fund and Supply Agency (PFSA) would like to acknowledge all of the contributors for their
dedicated effort in developing this Standard Operating Procedure (SOP) for Pharmaceuticals Procurement
Follow up. We would also like to extend our gratitude to Clinton Health Access Initiative (CHAI) for its finan-
cial assistance in printing of this SOP and Adroit Consultancy and Training Service PLC for the development
of the SOP. The following persons have contributed starting from idea generation to the development this
document and their advice and support are gratefully acknowledged. Mr. Yemaneberhan Taddesse (Deputy
Director General, PFSA), Mr. Yared Yiegezu Zegiorgis (Director of Forecasting & Capacity Building Director-
ate, PFSA), Mr. Bekele Ashagire Yeshanew (Director of Pharmaceuticals & Medical supplies Procurement
Directorate, PFSA) Mesfin Teklehaimanot and Yared Debebe from Adroit Consultancy and Training Service
PLC. Furthermore, we would like to acknowledge the individuals and their organizations (Annex II) who par-
ticipated in the workshop organized to review the draft Manual for their feedbacks.
Recommended citation
Pharmaceuticals Fund and Supply Agency (PFSA). Standard Operating Procedure (SOP) for Pharmaceuticals Procurement Follow up.
December 2016, Addis Ababa, Ethiopia
III
Acronyms
CAD Cash Against Document
C&F Cost and Freight
CPO Certified Payment Order
DG Director General
EAL Ethiopian Air lines
ESL Ethiopian Shipping Lines
FHRDDG Finance and Human Resource Deputy Director General
FMD Fund Management Director
FMHACA Food, Medicine and Healthcare Administration and Control Authority
FOB Freight on Board
GMP Good Manufacturing Practice
GS General Service
GRV Goods Receiving Voucher
LC Letter of Credit
NBE National Bank of Ethiopia
ODDG Operations Deputy Director General
PFT Procurement Follow up Team
PI Proforma Invoice
PO Purchase Order
TRF Track Request Form
TV Transfer Voucher
VAT Value Added Tax
WT Withhold Tax
Page 1
Definition of Technical Terms

Air waybill
Air Waybill - AWB’ A document that accompanies goods shipped by an international courier to pro-
vide detailed information about the shipment and allow it to be tracked. The air waybill has multiple
copies so that each party involved in the shipment can document it.
Bill of Lading
A bill of lading (sometimes abbreviated as B/L or BoL) is a document issued by a carrier which
details a shipment of merchandise and gives title of that shipment to a specified party.
Cash Against Document
A payment arrangement in which an exporter instructs a bank to handover shipping and title docu-
ments to the importer when the importer fully pays the accompanying bill of exchange or draft.
Category of Pharmaceutical Goods

For PFSA and for this SOP purpose Category of Pharmaceutical Goods are: 1) Medical supplies, 2)
Medical Equipment, 3) Chemicals and Laboratory Reagents and 4).Pharmaceuticals.
Certificate of Analysis
Is an authenticated document issued by an appropriate authority that certifies the quality and pu-
rity of pharmaceuticals, and animals and plant products being exported are analyzed and in good
condition
Certificate of Origin
A Certificate of Origin (CO) is an important international trade document attesting that goods in a
particular export shipment are wholly obtained, produced, manufactured or processed in a particu-
lar country. COs also constitute a declaration by the exporter.
Chamberized Commercial Invoice
Chamberized Commercial Invoices are an invoice that a buyer has to get a notary stamp from the
Chamber of Commerce of the supplier country.
Commercial invoice
A commercial invoice is a document (an invoice) used in foreign trade. It is used as a customs
declaration provided by the supplier that is exporting an item across international borders.
Confirmed Purchase Order
Is a purchase orders where it is authenticated by the buyer bank for confirmation for the accep-
tance of the transaction and reservation of the required foreign currency.
Consignment
Consignment is the act of consigning, which in turn is the act of giving over to another person or
agent’s charge, custody or care any material or goods, but retaining legal ownership until the mate-
rial or goods are sold.
SOP for Procurement Follow Up Team

Page 2
Container
A very large metal case of a standard size where most of the time the sizes are 20 feet or 40 feet
and used for loading and transporting goods on trucks, trains and ships.
Expiry Date
Is a date on which a product becomes technically un-usable or unsellable and should be pulled off
from the shelves or from the market and got disposed as per the legal requirment
File Document
It is a paper folder (classer) or box file used to keep documents of the same nature together and
track their records.
Good Manufacturing Practices
Good manufacturing practices (GMP) are the practices required in order to conform to the guide-
lines recommended by agencies that control authorization and licensing for manufacture and sale
of food, drug products, and active pharmaceutical products. These guidelines provide minimum
requirements that a pharmaceutical or a food product manufacturer must meet to assure that the
products are of high quality and do not pose any risk to the consumer or public.
Foreign Currency
A currency, usually from a highly industrialized country, that is widely accepted around the world
as a form of payment for goods and services. In our country this includes US Dollars ($), GB
Pound (£), Euro (€) etc. A hard currency is expected to remain relatively stable through a short
period of time, and to be highly liquid in the forex market.
Insurance
Is an arrangement by which a company undertakes to provide a guarantee of compensation for
specified loss, damage, illness, or death in return for payment of a specified premium for a specific
period of time.
Letter of Credit
It is a written undertaking by a bank (issuing bank) given to the seller (beneficiary) at the request,
and in accordance with the buyer’s (applicant) instructions to effect payment — that is by mak-
ing a payment, or by accepting or negotiating bills of exchange (drafts) — up to a stated amount,
against stipulated documents and within a prescribed time limit. The below are different types of
LCs.
• Revocable Credit – the LC which may be cancelled any time without notice to the ben-
eficiary. This is an unsatisfactory and risky mode of settlement for any Supplier of pharma-
ceuticals and is rarely seen in practice.
• Irrevocable Credit – the LC which can only be amended or cancelled with the consent
of both parties. This is the standard document for international transactions.

Page 3
• Confirmed Irrevocable Credit - is recommended when dealing with countries with po-
tential economic instability or foreign exchange issues. Essentially, the seller’s bank has the
buyer’s bank confirm the credit, constituting a definite undertaking by the releasing bank.
• Transferable Irrevocable Credit enables the Supplier to make the credit available in
whole or in part to one or more third parties (second beneficiaries).
• Revolving Credit can be irrevocable or revocable and provides for continuous drawings
for specified amounts within a stated period of time. This is used to replace a series of LC’s
to the same beneficiary with similar requirements or to control size of shipments at any one
time.
Log Book
Systematic daily or hourly or activity based record of documents, tasks, activities, events, occur-
rences or record of movement of documents from one place to another.
Packing List
A packing list is a document that includes details about the contents of a package. The packing
list is intended to let transport agencies, government authorities, and customers know the contents
of the package. These details help each of these parties handle the package accordingly
Quality
It is the totality of features and characteristics of a product or service that bears its ability to satisfy
stated or implied needs. Quality is a measure of excellence or state of being free from defects, defi-
ciencies and significant variations from stipulated mix of ingredients.
Regulatory Bodies
This includes all government bodies which have control over the permit for import and inspection
for quality and other parameters of pharmaceutical goods.
Split of shipment
Large shipment broken into two or more shipments and sent either on the same vessel or sepa-
rately to the buyer.
Supplier
A party that supply goods and services to customers.
Swift Copy
A SWIFT copy or document is an extract of the electronic payment document sent to the cor-
respondent bank or beneficiary bank. It acts as a confirmation of payment made from buyer bank
and informs the beneficiary of the value and date of transaction
Undertaking debit Note
It is a form or letter issued by a seller of goods or service to advise the amount owed by the buyer.

Page 4
1. SOP- Receiving Import Initiation Documents

Document Title Receiving Import Documents
Document No SOP/PFT/01
Revision 1 Effective on:

1. Introduction
The starting point for Procurement Follow up Teams is collecting all relevant and approved
procurement documents from Procurement teams and suppliers.
2. Purpose
The purpose of this SOP is to define the processes that will be followed to collect all ap-
proved and relevant documents and to show the next steps in order to open and control
register book for each transaction.
3. Scope
This SOP is applicable to all import carried out by the Follow-up Team of Procurement
Directorate and other partners.
4. Responsibilities
Title Responsibility
Documentation Officers • Receive all relevant and approved purchase documents
from Procurement teams, partners and suppliers.
Banking and Insurance
Officers • Open File and register on log book
• Check the conformity of PI, PO, Contract agreement and

other import initiation documents
Follow-up Team Coordina- • Make sure that the documents are registered on log book.
tor

Page 5
5. Process map/Flowcharts
Receive signed contract

agreement & other relevant
import documents
Open File document with PO reference

number or Waybill no.
Check for the Correctness of

documents PI, PO, Currency type, 10%
bond etc
Register on log book
6. Procedures
6.1. Receive signed contract agreement and other relevant import initiation procurement
documents from Procurement Directorate team which includes:
• Signed Contract Agreement
• Proforma Invoice which should have the following
• Date of Proforma Invoice
• Purchase order number
• Name of the supplier
• Address with phone number
• Payment term
• Currency
• Incoterm
• Country of origin
• HSS code
• Description of the product as per the PO and contract
• Unit of each package

Page 6
• Quantity of each product

• Bank detail (bank name, Address, Account number)
• Mode of shipment
• Port of loading Including country
• Port of discharge(destination) including country
• Delivery period
• 10% Performance bond
• Quotation
• Offer analysis
• Bid announcement document for purchase of above USD 1 million.
• etc.
6.2. Open File document with PO reference number or Airway Bill or Bill of Lading number
with requesting organization code in case of donations.
6.3. Check PI with PO, contact agreement, in order to confirm similarity of purchase terms,
values, currency similarity, Country of origin, etc
6.4. Register on Log Book.
7. Amendment History
Revision: Effective Date: Approved By: Reason
0 Initial release

Page 7
2. SOP- Request for Foreign Currency from NBE

Document Title Request for Foreign Currency from NBE

1. Introduction
Foreign currency permit is necessary step for all imports made by any business in Ethiopia.
The National Bank of Ethiopia (NBE) is the central bank of the country where this responsi-
bility lie and controls the foreign exchange transactions.
2. Purpose
The purpose of this SOP is to define the processes to follow in the submission of foreign
Currency Permit Request to National Bank of Ethiopia and subsequent follow-up.
3. Scope
This SOP is applicable to all import carried out by the agency pertinent to pharmaceuticals
and medical supplies.
4. Responsibilities
Runner • Make sure the letter is signed and stamped by the respective
body in time
Archive • Stamp the letters and make sure to distribute to respective

body
Banking and Insur- • Prepare bank permit request letter

ance Officers.
• Submit the approved request letter to NBE and copy to Com-
mercial banks then follow up the status.
Contract mange- • Check the completeness of the request letter

ment team Coordi-
nator
FM Director or co- • Sign on the bank permit request letter

ordinator and either
ODDG or FHRDDG
or DG

Page 8
Prepare Bank permit

request letter to NBE
Check completeness of the NBE

permit request letter
Get the NBE Permit signed by FMD

and ODDG or FHRDDG or DG
Submit the approved letter to NBE
Follow up with NBE for approval
Receive Approval from NBE
File the approved

NBEpermit
6. Procedure
6.1. Prepare letter to NBE requesting permit by filling the following on the standard letter to
national bank of Ethiopia
• On subject raw enter authorization to commercial bank branch you want to open
either LC or CAD should be clearly stated
• Name of supplier the purchase order on first raw and the FOB value with the cur-
rency of agreement and payment term with account holder in the agency
• On next step write the currency and value in fingure and statement consecutively
• Name of the count with its number and make copies to all relevant bodies
• Checked for correctness by procurement contract management team correctness

Page 9
6.2. Submit the NBE Permit form to the contract management team Coordinator and PD for
checking.
6.3. Get the NBE Permit signed by FMD and ODDG, FHRDDG or DG.
6.4. Make sure properly stamped and submit the approved NBE Permit letter to NBE.
6.5. Follow –up with NBE for permit approval
6.6. Collect the NBE approval document.
6.7. File in the opened file document with proper traceability
0 Initial release

Page 10
3. SOP - Ensure Import Insurance Coverage

Document Title Ensure Import Insurance Coverage

1. Introduction
Insurance is a promise of compensation for specific potential future losses in exchange for
payment known as Insurance Premium. It is a common practice in the import transaction
to insure pharmaceutical goods in transit. Briefly, the following reasons compel PFSA to
contract transport insurance:
• Protection against financial losses resulting from damage, pilferage, theft and non-
receipt of entire or part of a consignment; and
• Protection against financial claims that can be made against the owner of goods on
board a vessel in case of a “declared general average” (the goods themselves being
undamaged).
2. Purpose
The purpose of this SOP is to define the processes to follow in the process of insuring im-
ported pharmaceutical goods from foreign countries.
3. Scope
This SOP is applicable to all import carried out by pharamceuticals and medical supplies
procurement.
4. Responsibilities
Banking and Insurance • Properly complete Insurance Form
Officer.
• Submit the Insurance Form to Insurance Company with
relevant documents.
• Get Insurance coverage for the import goods.

Follow-up Team Coordina- • Check and verify the completeness of filled insurance
tor application letter for completeness.
Procurement Director • Approve Insurance form

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Get Insurance form from

Insurance company
Fill the Marine declaration form
Check for Completeness of the

Insurance Form
Get the insurance form Approved
Submit the Insurance form to

Insurance Company
Yes
Credit facility?
No
Get quotation for the Premium Get certificate witnessing

amount marine cargo confirmation
Policy Letter
Request for Payment
Pay to Insurance Company
Receive Underwriting Debit Note
File in the referenced

document file

Page 12
6. Procedure
6.1. Get marine declaration form from Insuring company
6.2. Fill the marine declaration form properly based on PI and PO.
• Name of tje insured part-write pharmaceuticals Fund and Supply Agency
• Amount to be ensured section -write the currency and figurative value of the
contracted amount and also in word the plus 10%
• Quantity optional
• Description of goods part write either of pharmaceuticals, medical supplies,
chemicals and reagent or medical equipment based on contract
• Marks and Nos- Write here PFSA and commerical bank with specific branch
• Packing optional
• Form in this section indicate from which port the product is shipped and to be
the agreed destination in Ethiopia
• In the per SS section write the mode of shipment which is either sea or air
• In the cover required section write against all risks
• finally on the remark section write the performa invoice number and purchase
order number for easy tracking
6.3. Get Insurance form reviewed by the contract management team Coordinator.
6.4. Get signed and approved by Procurement Director.
6.5. Based on the approved Insurance Declaration form get quotation of the premium
amount and or
6.6. Receive Certificate Witnessing Letter from Insurance company as a credit note and
continue bank process. Then Follow the next step to settle the credit
6.7. Submit Payment request for insurance premium amount to Fund Management
• Prepare payment request fill the following part on the standard insurance pay-
ment request form
6.8. Pay to Insurance Company.
6.10. File the Underwriting Debit Note in the PO reference File document for
next stage.
0 Initial release

Page 13
4. SOP- Bank Application for Letter of Credit (LC)

Document Title Bank Application for Letter of Credit (LC)

1. Introduction
Bank application for payment is one of the major components of pharmaceutical goods im-
portation into the country. Currently LC opening is facilitated through all commercial banks.
2. Purpose
The purpose of this SOP is to define the processes to follow in the preparation of LC appli-
cation to make payments to supplier of pharmaceutical goods from foreign countries.
3. Scope
This SOP is applicable to all import carried out by the pharmaceuticals and medical sup-
plies of Procurement Directorate of PFSA.
4. Responsibilities
Banking and Insur- • Receive NBE Permit
ance Officer
• Fill LC application form and Foreign Exchange Application for
Imports
• Submit insurance, NBE Form, LC application, PO and pro-

forma invoice to Commercial Banks
• Collect LC Swift copy

Contract manage- • Check LC application form and Foreign Exchange Application
ment Team Coordi- for Imports.
nator and PD
FMD and ODDG or • Approve and sign on LC and foreign Exchange Application
DG form

Page 14
Receive NBE Permit
Collect and fill LC Application and Foreign

exchange Application for Imports of
Commercial Banks
Check for the correctness of the forms
Signed and approved by PFSA officials
Submit the approved LC to bank
Receive Bank’s LC swift, or debit advice

from the bank
Inform supplier about the Bank Payment

Status
File the LC documents
6. Procedure
6.1. Collect all relevant and approved documents to apply for LC payment which includes
• Supplier Proforma Invoice of 2 copies,
• Insurance Debit Note (one original and one copy),
• NBE permit, and
• Purchase Order.
6.2. Fill Foreign Exchange Application for Imports with due care based on supplier Pro-
forma Invoice. Fill the permit form in 5 (five) copies and the purpose of copies are the

Page 15
1st is original, 2nd is Import Control Copy, 3rd is Customs Control (Original), 4th is
Customs Copy (Duplicate) and the 5th is File Copy. Details to be filled are:-
• PFSA’s full Name, address and Bank detail
• Details of PI reference and Category of Pharmaceutical Goods to be im-
ported.
• Required Foreign currency amount and equivalent Birr for FOB Value,
Freight and CIF
• Method of Payment
• Port of destination
• Shipment allowed by (sea or air)
• Manufacturer’s Name and Country of Origin
• Supplier Name
• Name of local commission agent and address
• And others required by the bank, and
6.3. Collect and fill the LC form in 2 (two) copies and make sure that the following are
properly jotted down to avoid any future inconveniences and additional costs:
6.3.1. Whether the LC is Irrevocable or Confirmed Irrevocable
6.3.2. Supplier name, address and bank detail
6.3.3. Value of import goods
6.3.4. PI date and Number
6.3.5. Expected list and quantity of official documents required to make final pay-
ment including ,
• Chamberized Commercial Invoice (3copies)
• Manufacturer Invoice (if necessary)
• Packing list,
• Bills of lading or airway bill (parcel post receipt marked “freight prepaid”
or “payable at destination” by the shipping company (3copies)
• Expected delivery date
• Latest Shipment Date
• Chamberized Certificate of Origin
• Insurance certificate (if necessary)
• Origin of Goods
• Whether partial shipment is allowed or not

Page 16
• Whether transshipment is permitted or not

• Packaging mark
• Certificate of Analysis and manuals (if necessary)
• Freight Invoice in case of CIF
• Pre-shipment Inspection (if necessary)
6.4. Get the Letter of application form and Foreign Exchange Application signed by
PFSA authorities (DG or DDGs and FMD or FM coordinator
6.5. Submit the approved applications to bank
6.6. Follow-up until the application is concluded by the bank
6.7. Collect LC swift copy and bank debit advice from the bank and check for the
correctness of the advice whether it meets all the terms and conditions of Bank
Application Form. Normally the bank charge the following (though this might
be changed through time and need frequent update)
• Service charge 1.5% of invoice value
• Exchange payable 1.5% (Please note that no exchange payable if PFSA
uses its own USD account)
• Opening Commission 0.5%
• Cable (swift charge) ETB 100
• In latter stage Extension charge of 1.0%
6.8. Communicate to supplier and or his agent about the bank status to speed up
the procurement process by scanning and sending the LC swift copy.
6.9. On the standared letter mention the name of the supplier with its address, the
opening date, late shipment date and LC expire date
6.10. File in the opened filed document.
0 Initial release

Page 17
5. SOP- Bank Application for Cash Against Document (CAD)

Document Title Bank Application for Cash against Document (CAD)
1. Introduction
CAD mode of settlement enables the seller to produce, supply and ship goods ordered by
PFSA while retaining some control over the release of the cargo until PFSA pays through
bank.
2. Purpose
The purpose of this SOP is to define the processes to follow in the preparation of CAD ap-
plication to make payments to supplier of pharmaceutical goods from foreign countries.
3. Scope
This SOP is applicable to all import carried out by pharmaceuticals and medical supplies
Procurement Directorate of PFSA.
4. Responsibilities
Banking and Insur- • Receive NBE Permit
ance; and Follow
Up Officer • Submit Insurance Coverage, NBE Permit, PO and Proforma
Invoice to Commercial Banks
• Receive Confirmed PO for CAD
• Inform supplier and or his agent about confirmed PO

Page 18
Receive NBE Permit
Submit the approved PO, Insurance

and NBE Permit to commercial bank
Receive Confirmed PO for CAD
Inform supplier and or his agent about

the confirmed PO
File in the file document
6. Procedure
6.1. Collect NBE permit.
6.2. Submit the approved PI, PO, Insurance debit note and NBE permit with other
relevant supporting document to commercial bank.
6.3. The Bank approves the Purchase Order (Confirmed PO) to show foreign ex-
change is reserved for the supplier payment.
6.4. Communicate supplier and or his agent about the confirmed Purchase Order to
start production and shipment of the pharmaceutical goods.
6.5. File the confirmed PO in the PO referenced file
6.6. Normally the bank charge the following (though this might be changed through
time and need frequent update)
• Service charge 0.50% of invoice value upon PO approval
• Exchange payable 1.50% (Please note that no exchange payable if PFSA
uses its own USD account)
• Cable (swift charge) ETB 100
• In latter stage Extension charge for expire PO is 1.0% for a month and
1.5% after a month.

Page 19
0 Initial release

Page 20
6. SOP- Air Shipment Follow-up

Document Title Air Shipment Follow

1. Introduction
Shipment follow up is the process to know and understand where about of the pharmaceu-
tical goods production as well as shipment stage. Once the Follow-up team communicates
the LC swift copy or confirmed PO to suppliers, it is necessary to make status follow-up
using convenient communication tools to speed up the delivery of goods on timely manner.
2. Purpose
The purpose of this SOP is to define the processes to follow in the Air Freight shipment to
avoid delay of shipment as well as speed up of customs clearance at air ports.
3. Scope
Directorate of PFSA.
4. Responsibilities
Follow up and • Make repetitive communication with supplier and receive notifica-
Documentation tion for shipment.
Officer, Banking
and Insurance • Receive draft shipping documents for verification and confirm
Officers, Transitor supplier about correction and then follow up for copy and original
documents
• Prepare inspection request letter to FMHACA and other regulatory

bodies
• Prepare undertaking letter to custom and EAL
• Collect inspection request letter from documentation officers
• Follow up with FMHACA and other regulatory bodies
• Settle Air Freight (if necessary)

Follow Up Team • Follow up for the receipt of shipment documents
Coordinator
• Review FMHACA and other regulatory bodies inspection request
letter and freight payment request
PD • Sign FMHACA and other regulatory bodies inspection request let-
ter
• Confirm Freight Payment Request (if necessary)

Page 21
Check with supplier about the production/or

shipment Receive Signed contract agreement
and other relevant import documents
Receive shipment notification from supplier or donor either by

email, fax, DHL etc
Receive all draft shipping documents from the supplier before

they send the original (Copy) to check correctness
Yes
Prepare split of shipment request to
Partial shipment Bank and Insurance
No Receive confirmed split of shipment

from bank and insurance
Yes
Is this Donation?
Get Pre Import Permit
No
Write undertaking letter to Customs and EAL cargo to

be entertained using copy documents in order to start
clearing Register on log book
Write and send Inspection request letter to FMHACA

& other bodies
No
Meet regulatory bodies’

requirements?
Yes
Receive regulatory bodies release paper

Start Claim Processing (section
10)
Pay or receive credit invoice for freight
Submit the bank and Insurance documents; Regulatory

bodies release letter and Supplier documents to
Clearing Agent

Page 22
6. Procedure
6.1. Frequently follow up with supplier about the production and shipment of the
pharmaceutical goods using all communication means.
6.2. Receive shipment notification from the supplier or donor.
6.3. If this is donation, then get pre import permit from the donor or his agent.
6.4. If it is purchase, receive all draft documents from suppliers before they send
the original ones through fax or email attachment or DHL to verify possible mis-
takes/errors.
6.5. Inform to Suppliers if there is any adjustment required or correctness of the
shipping document.
6.6. If there is any partial shipment, prepare split of shipment request to Bank and
Insurance, then receive Confirmed split of shipment from Bank and Insurance.
6.7. If the shipment goods arrive before the original documents’ arrival through the
bank, or, if PFSA wants to start customs process early, the Follow Up officer
and Team Coordinator should initiate the customs clearance formalities with
the copy document at the customs office at the arrival port. Therefore receive
updated copy shipping documents from suppliers in order to be entertained by
bank. the documents which must include at least the following:
6.7.1. Commercial Invoice (this need to be chamberized)
6.7.2. Air way bill
6.7.3. Certificate of Origin (this need to be chamberized)
6.7.4. Packaging list
6.7.5. Certificate of analysis
6.7.6. Pre Import Permit for donations
6.7.7. Narcotic and Psychotropic permit
6.8. Write undertaking letter to customs office and EAL cargo to be entertained us-
ing the copy documents. This facilitates the early finishing of customs clear-
ance processes. Please note that the Bank will hold 10% and Customs 25% of
invoice value to process using copy of shipping documents.
6.9. Prepare letter to FMHACA and regulatory bodies for inspection permit by
including documents under section 6.6 and packing list, commercial invoice.
This needs to be verified by Team Coordinator and signed by PD.
6.10. Send the letter with supporting documents to regulatory bodies with copy of
packing list and commercial invoice.
6.11. Receive regulatory bodies’ release or rejection letter. If it is rejected start claim
processing.

Page 23
6.12. Check delivery condition whether the terms are FOB, CIF, etc
6.13. Receive EAL/Carrier air lines freight Invoice.
6.14. Prepare Freight Payment Request which needs to be approved by PD.
6.15. Send Payment Request to Fund Management to prepare check or CPO.
6.16. Pay Freight to EAL and receive Payment confirmation from EAL.
6.17. Finally collect Original documents through bank and deliver to clearing agent.
6.18. File in the file document.

Page 24
7. SOP- Sea Shipment Follow-up

Document Title Sea Shipment Follow-Up
1. Introduction
Shipment follow up is the process to know and understand where about of the pharma-
ceutical goods production as well as shipment stage. Once the Transit and Follow-up team
communicate the LC swift copy or confirmed PO to suppliers, it is necessary to make
status follow-up using convenient communication tools to speed up the delivery of goods
on timely manner.
2. Purpose
The purpose of this SOP is to define the processes to follow in the shipment following-up
of goods in order to avoid delay of shipment as well as speed up of customs clearance at
ports.
3. Scope
4. Responsibilities
Banking and • Make repetitive communication with supplier and receive notifi-
insurance, Sea cation for shipment.
case team,
Documentation • Check and submit shipment status and prepare Split of Ship-
Officer & Transi- ment permission to Bank and Insurance
tor
• Prepare FMHACA and other regulatory bodies Inspection re-
quest letter
• Settling ESL Freight and port dues

Follow Up Team • Follow up for the receipt of shipment documents and shipment
Coordinator type
• Review FMHACA and other regulatory bodies inspection re-

quest letter, freight and port due payment requests
Procurement • Sign FMHACA inspection request letter
Director
• Confirm Freight Payment Request
FMD, ODDG, DG • Sign on payment requests

Page 25
Check with supplier about the

production or shipment status
Receive shipment notification from supplier either

by mail or fax, DHL etc
Receive all draft shipping documents from the supplier

before they send the original (Copy) to check correctness
Receive all original shipping documents from

the bank
Yes
Prepare Split of shipment
Partial Shipment?
request to Bank and Insurance
No
Receive Freight and Port Debit Note or Receive Confirmed Split of

Payment requests shipment from Bank and
Insurance
Prepare Payment Request Letter
Pay freight cost to the carrier and port dues
Sign Container Agreement and Release Form

with ESL
Receive Customs assessment, Operation 10)Follow Clearing

number and effect Payment Process (Section 8)
Follow up the shipment & arrival of the goods

at dry port

Page 26
Write and send Inspection request letter to

FMHACA & other Regulatory bodies
Meet FMHACA
Requirements?
Receive Regulatory bodies release paper Process Claim

(Section
Conduct Customs Physical Inspection
Meet Customs Receive Customs

Requirements? Release Paper.
Identify Price or quantity

difference?
Pay if above initial assessment or Claim refund if

payment is over
File in the file

document
6. Procedure
6.1. Frequently follow up with supplier about the production and shipment of the
pharmaceutical goods using all communication means.
6.2. Receive shipment notification from the supplier

Page 27
6.3. Receive all draft shipping documents from suppliers before they send the origi-
nal ones through fax or email attachment or DHL to verify possible mistakes/
errors.
6.4. Inform to Suppliers if there is any adjustment required or correctness of the
shipping document.
6.5. If there is any partial shipment, prepare split of shipment request to Bank and
Insurance, then receive Confirmed split of shipment from Bank and Insurance
6.6. Receive Freight and port debit note or Payment requests from ESL.
6.7. Prepare letter in two copies for bank to make payment to ESL which need to be
checked by Team Coordinator and PD.
6.8. Submit the Payment letter to FMD and ODDG or DG for approval and signature.
6.9. Send Payment letter to bank to effect the payment.
6.10. Receive Bank debit advise
6.11. Submit the Bank advice to ESL and receive Payment confirmation from ESL.
6.12. Receive Customs Assessment and operation number from Maritime (then fol-
low clearing process of section 8)
6.13. Sign Container Agreement with ESL and Release Form and pay in advance for
container as per estimated days of container usage and follow up to clear at the
end
6.14. Receive all original shipping documents from suppliers through bank or indorse
copy documents. The documents must include at least the following:
6.14.1. Commercial Invoice (this need to be chamberized)
6.14.2. Bill of lading
6.14.3. Certificate of Origin (this need to be chamberized)
6.14.4. Packaging list
6.14.5. Certificate of analysis
6.15. Check the shipment condition whether it is partial or not.
6.15.1. If the shipment is partial, then
6.15.1.1. Prepare Split of Shipment request to Bank and Insurance
6.15.1.2. Reviewed by Team Coordinator, initialed by PD and signed by FMD
and ODDG or FHRDDG or DG.
6.15.1.3. Submit the Split of Shipment Request to Bank and Insurance
6.15.1.4. Receive Confirmed Split of Shipment from Bank and Insurance
6.15.2. If it is full shipment, then submit all documents to transitor

Page 28
6.16. Sign Clearing agreement

6.17. Submit all documents to the transitor through documentation officer.
6.18. Follow up and receive Customs assessment and storage payment
6.19. Prepare letter to FMHACA for inspection by indicating packing list, commercial
invoice. This needs to be verified by Team Coordinator and signed by PD.
6.20. Send the letter to FMHACA with copy of packing list, commercial invoice, PO
and other necessary shipment documents.
6.21. Receive FMHACA and other regulatory bodies release letter through the transi-
tor if it is as per their requirements, otherwise
6.22. Process claim as per section 10.
6.23. Get customs physical inspections
6.24. If it meets customs requirements receive customs release paper and continue
the next process, otherwise
6.25. Identify if it is price or quantity difference and pay the difference if the initial
assessment is lower or claim refund if the initial payment is higher.
6.26. Submit the bank documents, FAMACA letter, Supplier documents and Con-
tainer Agreement and Release Form to clearing company
6.27. File in the file document
0 Initial release

Page 29
8. SOP- Clearing Processes

Document Title Clearing Processes
1. Introduction
Customs clearance is the documented permission to pass that a national customs author-
ity grants permission to imported goods so that they can enter the country or to exported
goods so that they can leave the country.
The custom clearance is typically given to a transit and shipping agent to prove that all ap-
plicable customs duties have been paid and the shipment has been approved.
2. Purpose
The purpose of this SOP is to define the processes to follow in the transit and clearing of
goods in order to speed up of customs clearance at ports.
3. Scope
4. Responsibilities
Transitor, Clearing Com- • Handover necessary shipping documents to Clearing
pany agent
• Prepare clearing agreement
• facilitate customs clearing processes

Team Coordinator and • follow up the processes and check payment requests
PD
• Sign Clearing agreement
FMD. ODDG, FHRDDG • Approve payments
and DG

Page 30
Collect all shipping

documents
Fill Customs Clearing Agency

Agreement
Submit all shipping documents,

FMHACA clearance and other
documents to Customs Clearing agency
Follow-up with the Clearing agent
Receive tax assessment for VAT, WT,

Customs duty, Sure Tax
Request for CPO or budget request

based on assessment document
Follow up With Banks & Collect
Original shipping Documents
Pay the CPO to the Clearing agent and
receive payment advice
Receive Receipt or Removal (release) Submit Original shipping

paper from Customs Documents to customs
No
Storage and Collect declaration document

Demurrage?
Yes
Request for CPO

Prepare for next
Stage
Pay and Collect invoice

Page 31
6. Procedure
6.1. Collect all shipping documents from supplier through bank for originals or fax
or email attachment for Copy documents.
6.2. Prepare Customs clearing agreement
6.3. Reviewed by Team Coordinator and signed by PD
6.4. Send Customs Clearing Agreement and all shipping documents including FM-
HACA clearance (in case of Air Shipment) to clearing agency
6.5. Follow up with the clearing agent about the signing of the contract and customs
clearing status.
6.6. Receive assessment from clearing agent for VAT, WT, Customs duty, Sure Tax,
etc.
6.7. Request for CPO payment based on assessment letter or Prepare budget re-
quest to Ministry of Health.
6.8. Payment request checked/reviewed by Team Coordinator, confirmed by PD and
signed by FMD and DG or ODDG.
6.9. Send the letter to Bank and receive CPO
6.10. Pay the CPO or Budget letter to clearing agent and receive payment advice
from the agent.
6.11. Receive release paper from Customs.
6.12. Check if there is storage and demurrage cost
6.13. If no storage and demurrage costs, prepare for next step, if not
6.14. Request for CPO
6.15. Pay for storage and demurrage
6.16. Collect invoice for payment of storage and demurrage.
6.17. Collect Declaration document and
6.18. File in the file document.
0 Initial release

Page 32
9. SOP- Transporting Pharmaceutical Goods from Port to Warehouse

Document Title Transporting Pharmaceutical Goods from Port to Warehouse
1. Introduction
Transporting pharmaceutical goods from port to warehouse involves the processes that
oversees, coordinates and facilitates the shipment of pharmaceutical goods from port to
PFSA designated warehouses. This process considers nature and size of the imported
goods, the need for cold chain vehicles facilities etc.
2. Purpose
The purpose of this SOP is to define the processes to follow in the transporting of pharma-
ceutical goods from port to warehouse with maximum care.
3. Scope
4. Responsibilities
Transitors, Follow –up • Notify storage and distribution to arrange ware house
officers
• Confirm driver status
General Service • Assign driver and truck for transporting goods
Driver • Carefully move consignments from port to warehouse
Team Coordinator • Request truck
Procurement Director • Approve truck request

Page 33
Identify the nature of the

pharmaceutical goods
Estimate the number of trucks and type

of truck needed
Fill Truck Request Form
Send Approved Truck Request to

General Service
Follow up with General Service
Confirm the assigned driver and his/her

location status
Check the containers are sealed and

locked if goods are in Container
Handover Consignment from

Port/Cargo
Fill Consignment Handover Form for

each trucks and sign on the Form
Transport the Consignment from Port

to Warehouse
Handover the Consignment to

Warehouse with accompanied
documents
Fill Transfer Voucher
Receive Goods Receiving Notification

and GRV from Finance
File all documents TVs and

GRV in PO reference file

Page 34
6. Procedure
6.1. Identify the nature of the pharmaceutical goods and decide the type of track needed
whether normal truck or cold chain trucks required
6.2. Estimate the number of trucks needed
6.3. Fill Truck Request Form (TRF) and get approval from Procurement Director
6.4. Submit the approved TRF to General Service (GS)
6.5. Follow up with GS
6.6. Confirm with GS about the assigned driver and his/her where about and communi-
cate to clearing agent.
6.7. Check the containers are sealed and locked before handing over to drivers.
6.8. Handover the consignment (in Container in Case of Sea freight) from port to each
truck driver.
6.9. Fill Consignment Handover Form to each track and sign on the form
6.10. Transport the consignments from port to the assigned Warehouse.
6.11. Compile Handover forms from the drivers in case of more than one truck.
6.12. Fill Transfer Voucher (TV) by mentioning airway bill or bill of ladings and commercial
invoice and get signed by Warehouse Manager.
6.13. Receive Goods Receiving Notification form from warehouse signed by Warehouse
Manager and GRV from Finance.
6.14. File all transport and store documents in PO referenced file.
0 Initial release
8. Supplemental Issues
8.1. In case of single parcel for light consignment, the transitor might directly deliver to
store by fulfilling all procurement follow up and store procedures.
8.2. In case of sea freight, the responsibility of taking the consignment will be by the
driver and he/she needs to make sure that all procurement follow up and store
procedures are fulfilled.

Page 35
10. SOP - Claim Processing,

Document Title Claim Processing

1. Introduction
Claim processing is one of the follow up team responsibility in case of expiry, quality, short-
age, damage, loose pack or cancellation of orders of imported pharmaceutical goods. The
claim processing team should always carefully read the claims procedure and documents
required to support the claims.
2. Purpose
The purpose of this SOP is to define the processes to follow in the claim processing of pro-
cured pharmaceutical goods.
3. Scope
4. Responsibilities
Secretary • Receive Complaint letter from any department
• Submit to Procurement Director

Follow –up officers, • Make Preliminary assessment for incoming pharmaceutical goods
Transitor, Ware-
house Manager & • Receive Compliant letters and check for the necessary informa-
Banking and Insur- tion are included in the letter
ance Officer
• Fill and follow up to send Insurance claim letter and
• Send cancelation letter and receive confirmation for cancelation

Team Coordinator • Check insurance claim form and notification letters to suppliers
• Communicate aggregated quantity to suppliers

Procurement Di- • Forward Complaint letter to follow up team
rector
• Sign on Insurance claim forms,
• Approve letters to be sent to suppliers and cancelation letter to

banks.

Page 36
1 Make preliminary assessment on the

quantity & quality of imported product
Conduct preliminary survey by transitor/ or inspection by

FMHACA, Warehouse, or Customers
Yes
Meet contract
Continue Customs No
clearing processes.
Supplier issue?
No Yes
Get Preliminary Survey Report Receive compliant letter from any

from the transitor/agent source or FMHACA inspection
paper
Inform Insurance firm by

phone & fill Insurance formats Forward compliant letter to
Follow up Team
Submit the Preliminary Survey

report to Port and Customs Check the Necessary Information
are incorporated in the letter
Submit shipping documents to

insurance company Prepare letter to supplier stating
the issue and claim for
replacement
Follow up with Insurance Company to
get Survey inspection done by the
Insurance and receive Survey report Check the letter prepared for
Supplier
Notify Customs for the loss or damage Approve the letter prepared for
Supplier
Follow up with Insurance Communicate/Send the letter to

for reimbursement Supplier
Follow with supplier

for claim

Page 37
2 Order Cancelation by Supplier due to

Force Majeure
Order Cancelation from Supplier
Write Cancelation to Bank
Send Cancelation to Supplier
Collect Credit Advise from

Bank
6. Procedure
6.1. Arrange preliminary assessment on the quantity and quality of imported product. If
there is any claim requirement
6.2. Conduct Preliminary survey by the Transitor or his/her agent
6.3. Get Preliminary Survey Report from the transitor/agent.
6.4. If there is any shortage, damage or non conformity to shipping documents identify
who is responsible and claim either from Insurance or claim from the supplier. If the
claim is from Insurance, then
6.4.1. Immediately inform to Insurance by phone
6.4.2. Submit the Preliminary Survey report to Port and Customs
6.4.3. Fill Insurance claim format.
6.4.4. Submit Insurance claim form together with shipping documents to insurance
company. Shipping Documents includes
6.4.4.1. Commercial Invoice
6.4.4.2. Bill of Lading
6.4.4.3. Certificate of Origin
6.4.4.4. Packing List
6.4.4.5. Insurance Debit Note
6.4.4.6. Insurance policy Document which need to have revenue stamp.
6.4.4.7. Others as per the requirement of insurance company.

Page 38
6.4.5. Follow up with Insurance Company to get Survey inspection done by the
Insurance company itself
6.4.6. Collect Insurance Survey report.
6.4.7. Notify Customs for the loss or damage
6.4.8. Follow up with Insurance company for reimbursement
6.4.9. Collect money from insurance
6.5. If Claim is from supplier (in case of the claim arises as a result of issues of Quality,
Loose Pack, Expiry and Order Cancelation:
6.5.1. Quality
6.5.1.1. Receive FMHACA quality problem letter and or compliant letter
from Storage and Distribution Directorate (SDD).
6.5.1.2. Forward compliant letter to follow up team
6.5.1.3. Check for the necessary information incorporation into the letter
6.5.1.4. Prepare letter to the supplier about quality issues and claim for
replacement
6.5.1.5. Check the letter for inclusion of all information
6.5.1.6. Approve the letter
6.5.1.7. Communicate/send the letter to the Supplier
6.5.1.8. Receive aggregated quantity of quality problem drags/goods from
SDD.
6.5.1.9. Communicate the aggregated quantity to the supplier
6.5.1.10. Follow up for replacement.
6.5.2. Loose Pack and Expiry
6.5.2.1. Receive compliant letter from Storage and Distribution Directorate
(SDD).
6.5.2.2. Forward compliant letter to follow up team
6.5.2.3. Check for the necessary information incorporation into the letter
6.5.2.4. Prepare letter to the supplier about quality issues and claim for
replacement
6.5.2.5. Check the letter for inclusion of all information
6.5.2.6. Approve the letter
6.5.2.7. Communicate/send the letter to the Supplier
6.5.2.8. Receive aggregated quantity of loose pack/Expiry problem drags/
goods from SDD.

Page 39
6.5.2.9. Communicate the aggregated quantity to the supplier

6.5.2.10. Follow up for replacement.
6.5.3. Order Cancelation From Supplier
6.5.3.1. Receive order cancelation notification from supplier
6.5.3.2. Write cancellation letter to commercial bank
6.5.3.3. Check and approve the letter of cancelation
6.5.3.4. Send the letter to bank
6.5.3.5. Receive cancelation confirmation and credit advise from bank
6.5.3.6. File the cancelation and credit advise copy in PO reference file.
0 Initial release

Page 40
11. SOP - Officialization/Declaration

Document Title Officialization/Declaration
1. Introduction
Declarization involves in the process of collecting all import documents from bank, transis-
tor, customs and finally authenticate the documents especially customs assessment decla-
ration and supplier’s commercial invoice by National Bank of Ethiopia.
2. Purpose
The purpose of this SOP is to define the processes to follow in the receiving of pharmaceu-
tical goods from port transporting to warehouse.
3. Scope
4. Responsibilities
Follow up Team • Collect Original Customs Declaration and Original Shipping
and Banking & Documents
Insurance of-
ficers • Submit to NBE and get authenticated
• File in PO referenced file document

Team Coordinator • Follow up for completion of authentication by NBE

Page 41
Get Original Customs Declaration

Document and Com. Invoice
Reconcile Original Customs Declaration

Document and Commercial Invoice value with
Foreign currency Permit
Discrepancy
1. If Permit > Consumption get

Bring documents to the attention of Credit note from Supplier
NBE’s Foreign Exchange Monitoring and
Reserve Management Directorate 2. If Permit < consumption get
additional permit from Bank
Get Stamp of Import Export Clearance

Section of NBE
Properly file all import

documents for future reference
6. Procedure
6.1. Collect all original documents from Bank, Customs, Transitor and from Supplier
6.2. Reconcile Foreign Currency amount of originally permitted versus actual consump-
tion using Commercial invoice, Customs declaration format
6.3. If the Foreign Currency permitted has variance with consumption.
6.3.1. If foreign currency consumption is higher than originally permitted, then get
additional permit from NBE, for the difference amount, or
6.3.2. If foreign currency consumption is less than originally permitted amount,
then get credit note from Supplier through bank for under purchase amount.
6.4. When foreign currency consumption and permit of foreign currency amount equals
bring the import documents to the attention of NBE’s Foreign Exchange Monitoring

Page 42
and Reserve Management Directorate.

6.5. Get official stamp of Import Export clearance of NBE from the above directorate.
6.6. Properly file all import documents for future reference.
0 Initial release

Page 43
12. SOP - Managing Performance Bond
Document Title Managing Performance Bond
1. Introduction
Most of the time suppliers make performance bond deposit after signing of contract agree-
ment to show their confidence on the delivery of goods or services in anticipation of collect-
ing back the bond after fully satisfying their customers.
2. Purpose
The purpose of this SOP is to define the processes to follow in the receiving of pharmaceu-
tical goods from port transporting to warehouse.
3. Scope
4. Responsibilities
Banking and • Check Performance of Suppliers by reconciling with PO and Con-
Insurance and tract agreement
Follow up Team
• Prepare Performance bond release or cancelation letter to bank
• Submit letters with bank and collect documents from bank
• Inform suppliers
Team Coordina- • Review Performance reports
tor
• Review written bank letter
Procurement • Approve performance bond release or cancelation letters.
Director
DDG • Approve cancelation of orders

Page 44
Receive Performance Bond

from Suppliers
Follow up the Expiry of Performance

Bond and periodically update
Check performance of the supplier for

appropriate delivery of goods or services as
per contract
Meet
Requirements?
Inform DDG about the

Write Letter to bank to release the performance of the supplier and
performance guarantee requesting cancelation
Inform suppliers about the release of Write cancellation letter to bank

the performance bond and collect performance bond
Follow up with bank to check for

the deposit of Performance bond
File the documents Inform suppliers about the

confiscation of the performance
bond
6. Procedure
6.1. Collect Performance Bond
6.2. Regularly Follow up the expiry date of the Performance bond and in case of Expiry
request supplier for replacement of the bond.
6.3. Check for the performance of the supplier whether the goods or services are deliv-
ered as per the contract agreement details.
6.4. If the deliveries of goods or services are as per the contract agreement, then write
letter to bank to release the performance bond.

Page 45
6.5. Inform the supplier the release of the performance bond

6.6. If the delivery of goods or services is not as per the contract agreement, then inform
DDG about the performance of the supplier and request for cancellation.
6.7. Get approval from DDG and write cancellation letter to bank.
6.8. Follow-up the deposit of performance bond into PFSA account
6.9. Inform the supplier about the status of their performance and confiscation of the
performance bond money.

0 Initial release

Page 46
13. SOP – Routine Report
Document Title Routine Report
1. Introduction
Written reports are one of the basic tools that communicate the performance of activities
and their achievements or challenges to work colleagues and managers. This helps to in-
form as well as get support in early stages. Therefore follow up team need to communicate
their activities on periodically manner as weekly, monthly or on need basis.
2. Purpose
The purpose of this SOP is to define the processes to follow in the preparation and submis-
sion of periodical reports by follow up team.
3. Scope
4. Responsibilities
Documentation • Check Performance of activities and periodically update the for-
officer, Follow mat
up Team of-
ficers • Prepare status report format and submit the reports on agreed
intervals and upon request
Team Coordina- • Review Performance reports and communicate to PD
tor
Procurement • Approve performance reports and communicate to concerned

Director officials.

Page 47
Create Reporting formats
Check performance of each

procurement activity and update
immediately
Submit the reports to Team Coordinator

for checking and approval to PD
Communicate the report to concerned

officials
6. Procedure
6.1. Create reporting formats which will show overall information of the goods to be im-
ported and to-date progress status.
6.2. Regularly communicate with follow up team members and update the format on
timely manner as activities happened.
6.3. Submit the reports to follow up team coordinator or PD on weekly, monthly or upon
request basis.
6.4. Review the report and submit to PD for approval or for Information purpose.
6.5. Communicate to concerned officials
6.6. File for future reference purpose.

Page 48
0 Initial release

Page 49
Annexes
Annex1 :List of Forms
Form No Form Title

Log Book
Truck Request Form
Goods Temporarily Handover Sheet
Transfer Voucher
Payment Request Letter
Inspection request to FMHACA
Routine Report Forms

Page 50
Annex 2: List of workshop participants for reviewing the draft Procedure
S.N List of participant Organization

1 Abyot Adane PFSA
2 Bayew Liknaw PFSA
3 Bekele Ashagrie PFSA
4 Berhanu Bekele PFSA
5 Fozia Mohammed PFSA
6 G/Selassie G/Yohannes PFSA
7 Meseret Adugna PFSA
8 Mesfin T/Haimanot Adroit Consultancy & Training Ser.
9 Seid Ali PFSA
10 Seifu Moges PFSA
11 Tibebu Hailu PFSA
12 Wondimu Haile PFSA
13 Yared Debebe Adroit Consultancy & Training Ser.
14 Yared Yigezu PFSA

Procure Follow-Up SOP

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thRough sustained

Standard Operating Procedure

Acronyms ……………………………………………….....................................................…………………..............……...…………….. III

Definition of Technical Terms ………………………………………………......……………….........................………...…………….. 1

1.. SOP- Receive Import Intiation Documents ……………………..............................………………………...…………….. 4

3.. SOP- Ensure Import Insurance Coverage ...................................................................................................... 10

4.. SOP- Bank Application for Letter of Credit (LC) .......................................................................................... 13

6.. SOP- Air Shipment Follow-up .......................................................................................................................... 20

7.. SOP- Sea Shipment Follow-up ......................................................................................................................... 24

8.. SOP- Clearing Processes .................................................................................................................................... 29

9.. SOP- Transporting Pharmaceutical Goods from Port to Warehouse ................................................. 32

10.. SOP - Claim Processing ..................................................................................................................................... 35

11.. SOP - Officialization/Declaration ................................................................................................................. 40

12.. SOP - Managing Performance Bond .............................................................................................................. 43

13. . SOP - Routine Reports ..................................................................................................................................... 46

14.. Annexes ................................................................................................................................................................. 49

Director General, Pharmaceuticals Fund and Supply Agency (PFSA)

C&F Cost and Freight

CPO Certified Payment Order

EAL Ethiopian Air lines

ESL Ethiopian Shipping Lines

FHRDDG Finance and Human Resource Deputy Director General

FMD Fund Management Director

FMHACA Food, Medicine and Healthcare Administration and Control Authority

FOB Freight on Board

GMP Good Manufacturing Practice

GRV Goods Receiving Voucher

NBE National Bank of Ethiopia

ODDG Operations Deputy Director General

PFT Procurement Follow up Team

TRF Track Request Form

VAT Value Added Tax

Definition of Technical Terms

Category of Pharmaceutical Goods

SOP for Procurement Follow Up Team

SOP for Procurement Follow Up Team

SOP for Procurement Follow Up Team

1. SOP- Receiving Import Initiation Documents

Revision 1 Effective on:

• Check the conformity of PI, PO, Contract agreement and

SOP for Procurement Follow Up Team

Receive signed contract

Open File document with PO reference

Check for the Correctness of

Register on log book

SOP for Procurement Follow Up Team

• Quantity of each product

SOP for Procurement Follow Up Team

2. SOP- Request for Foreign Currency from NBE

Revision 1 Effective on:

Archive • Stamp the letters and make sure to distribute to respective

Banking and Insur- • Prepare bank permit request letter

Contract mange- • Check the completeness of the request letter

FM Director or co- • Sign on the bank permit request letter

SOP for Procurement Follow Up Team

Prepare Bank permit

Check completeness of the NBE

Get the NBE Permit signed by FMD

Submit the approved letter to NBE

Follow up with NBE for approval

Receive Approval from NBE

File the approved