• Email :

  • Phone : +251-11-6-672341

 

Receive our updates

FX Rules Series: Export-Import: FXD/01/2024

As per the Customs Proclamation Export is taking or causing to be taken out goods from the customs territory. Import is bringing or causing to be brought goods into the customs territory.

     Export of goods

Banks will issue export permits (excluding gold) upon receipt of required documents under the FX Directive. They are also required to ensure proceeds from all approved exports are repatriated to Ethiopia.

Exporters must repatriate proceeds within 90 days of receiving export permits; extensions may be granted by the NBE.

Payment Modes for Exports:

  • L/C: at sight and on acceptance.
  • CAD: at sight and on acceptance.
  • Advance Payments: can be made via bank transfers, debit/credit cards, or cash notes declared at customs and deposited at forex bureaus.

Additionally, consignment sales apply to perishable items. Open Account method is permitted for e-commerce and other export transactions explicitly authorized by the NBE.

Special Mode of Payment

The export of khat, livestock, and injera is permitted solely through the use of Letters of Credit (L/C) or by making advance payments.

  • Flower Export

Flower exporters can choose between direct sales (contract-based consignment or negotiated) and auction market sales. Payment methods include open accounts for consignment, L/C (sight or acceptance) or advance payments.

Export permits require compliance with general conditions, specifying market type, currency, flower details, and supporting document like registration certificates and agreements. Exporters must repatriate proceeds within specified timeframes: 30 days for roses and summer flowers, and 60 days for cuttings. Extensions beyond these deadlines may be granted under valid reasons only up to 15 days, with banks required to report such extensions to the NBE and relevant authorities.

  • Small Export

Banks may permit exports of samples, gifts, and repairs.

  • Tourists

Export souvenirs up to USD 5,000; higher values require a signed declaration and Forex Bureau ticket.

  • Ethiopian Nationals/Residents

Export household goods and souvenirs up to birr 50,000; amounts exceeding this need foreign currency receipts.

  • Sample Exports

Subject to weight restrictions; coffee samples capped at 2kg per passenger. Exceeding limits requires foreign exchange payments and government approval.

  • Machinery/Spare parts

Require a 100% invoice value deposit as a guarantee.

  • For Exhibitions/Trade Fairs

Requires a temporary export permit with specific documents.

  • Repair

Items temporarily imported for repair, with repair costs paid in foreign exchange, can be temporarily exported.

  • Partial Export

If only part of the equipment is exported and no invoice is available, an estimated value declared by the exporter is accepted.

  • Machinery/Specialized Products

Require a 50% guarantee deposit of the invoice value, either in blocked birr or via an acceptable foreign bank guarantee. NBE may reduce this based on the item’s nature and the applicant’s credibility.

         Import of goods

Banks will facilitate imports regardless of value with necessary documentation. Electronic submission of documents is possible.

  • Payments Methods
  • L/C at sight
  • L/C on acceptance with prior approval of NBE.
  • CAD at sight
  • CAD on acceptance with prior approval of NBE
  • Advance payment

Franco Valuta Payments are allowed for imports and import applications are valid for 120 days from issuance. Authorized Bank may extend this by up to 30 days for valid reasons. The directive outlines the requirements for service payments in Annex III, covering areas such as import and export transit payments, freight payments, other related charges, reinsurance premiums, salary remittances for foreigners, medical and educational expenses, and more.

  • Dry Port Import and Export Procedures

Imports under the dry port procedure can be done via import by L/C  or imports by CAD. On the other hand, exports under the dry port regime can be carried out through exports by L/C or exports under advance payments.

  • Inland and Sea Ports Accessible

Designated inland ports include Modjo Branch Customs Warehouse and Semera Customs Warehouse, with others potentially designated by the Dry Port Service Enterprise. The Sea Port primarily serving these dry ports is the Port of Djibouti, with additional ports designated by the relevant authorities as eligible for cargo handling.

Developments In Ethiopia’s Capital Market
Exploring Business Opportunities in Ethiopia
Disclaimer:

‘Information provided in this site does not provide or offer legal or other advice and one should not rely on it as legal advice. MTA does not accept any liability to any person who does rely on the content of this website. The site is for informational purposes and is not an advertisement. MTA is not responsible for the content of any other site, including any site through which you may have gained access to our site or to which you may gain access from our site. We do not accept any liability in connection with any such sites or links. Nothing on this site constitutes a binding offer to perform any legal service.