Teshome, Tilahun (Professor)Siraj, Habtamu2018-10-152023-11-082018-10-152023-11-082018-01http://etd.aau.edu.et/handle/123456789/12746In international trade supplier and importer conclude sale contract. The movement or transit of goods from supplier’s country to buyer’s country automatically raises different questions. These are who cover cost of transportation? Who is responsible to arrange marine cargo cover? Who is responsible to arrange carriage and who is responsible to fulfill various documents? These questions can be answered by agreed INCOTERM under the sale contract. The adoption or recognition of any of INCOTERM by any country has its own effect on macroeconomic and micro economic policy of a given state. Because, foreign exchange, marine cargo insurance underwriting by domestic insurer and protection of national carrier is determined by the INCOTERM a country adopts. In an attempt to address proposed research questions the research employed both doctrinal and non-doctrinal approach. Specifically the research has employed review of literature, interview and case study as a methodology. The research has found out that from imperial regime onwards with view to protect domestic insurance companies Ethiopia recognized FOB INCOTERM implicitly as freight control mechanism. However, there is interruption in adhering to FOB INCOTERM during change of governments. During EPRDF regimes from transitional period up to1990’s importers were not adhere to FOB delivery term. However, from 1990 onwards Ethiopia adopted FOB sea transport policy and directives with waiver directives of ESLSE. However, Air transport Ethiopia was liberalized without recognition of any INCOTERM. But this FOB policy and directives of the country is not yet fully appreciated by its stakeholders (importers, underwriting companies and other stake holders). It is also hardly possible to hold that Ethiopia has adequate formal laws and policy guide lines in relation to adoption of any of the INCOTERMS. When parties to international sale agreed FOB INCOTERM risk of loss or damage to goods transferred from supplier to importer when the goods passes the ships rail. In such case importers have insurable interest to insure their goods from port of loading to final destination warehouse. However, there is a practice of marine cargo underwriting from warehouse or from named country of supplier (e.g. from china, Italy and India etc) to named dry port or final destination warehouse. This practice of marine cargo underwriting is incompatible with adopted FOB marine carriage policy of Ethiopia. On top of this, this research reveals that there is a disparity on use of either of the two version ICC (A, B and C) 1/1/1982 or 1/1/2009 among underwriting companies in Ethiopia. Therefore, the absence of clear and detail policy framework on recognition and adoption of INCOTERMS and ICC highly affects the process of marine cargo underwriting, marine cargo claims and recoveries, which has adverse effect on growth and development of insurance industry in Ethiopia. Keywords: INCOTERMS, ICC (A, B and C).enINCOTERMSICC (A, B and C).Thesis