When I last entered Ethiopia overland (2011) they didn't recognise the carnet and you had to get a TIP as well. This isn't a problem and was either free or a small charge. Customs will occasionally stop cars (esp if heading out to the east eg to Harar) and ask for your "permit" or "paper". This is the TIP.
As above organise your visa in advance. For the last few years you have had to do this from your home country embassy (ie courier your passports back if you are on a long trip) but some people have managed to persude the Ethiopian Embassy to issue a visa in recent months.
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