Import on Franco Valuta Directive FVD/01/2026

1 IMPORT ON FRANCO VALUTA DIRECTIVE NO. FVD/01/2026 WHEREAS, Franco Valuta arrangements constitute a significant mechanism for facilitating trade and investment without exerting pressure on the national foreign exchange reserves; WHEREAS, the absence of a comprehensive and modern regulatory framework governing Franco Valuta transactions has created risks of misuse, misreporting, illicit financial flows, circumvention of foreign exchange, and institutional fragmentation; WHEREAS, it is necessary to ensure transparency, accountability, institutional coordination, and technological control mechanisms in Franco Valuta transactions; NOW, THEREFORE, in accordance with Article 39(5), Article 39(6) and Article 53(2) of the National Bank of Ethiopia Proclamation No. 1359/2025, the National Bank has issued this Directive.

1. Short Title This Directive may be cited as “Import on Franco Valuta Directive No. FVD/01/2026”
2. Definitions For the purposes of this Directive, unless the context otherwise requires: 2.1 “Customs Commission” means the Ethiopian Customs Commission; 2.2 “Eligible User” means a person authorized under this Directive to utilize Franco Valuta; 2.3 “FEMoUS” means Foreign Exchange Monitoring and Orchestration Unified System; 2.4 “Franco Valuta” means the importation of goods for which foreign exchange from the domestic banking system is not payable;

2 2.5 “Investment Purpose” means capital goods and raw materials; 2.6 “National Bank” means the National Bank of Ethiopia; 2.7 “Person” means any natural or juridical person; 2.8 “Personal effect” means household effects, excluding motor vehicles, imported by persons; 2.9 “Trading Purpose” means importation of goods for resale, manufacturing, or commercial distribution by Foreign Direct Investment. 3. Scope of Application This directive shall apply to persons who participate in permanent import, temporary import, and re-import transaction conducted into Ethiopia, and to government institutions importing machineries and other key inputs using alternative foreign currency source. 4. Objectives The objectives of this Directive are to:

1. Establish a unified legal framework governing Franco Valuta transactions;
2. Protect the national economy from foreign exchange abuse and illicit trade practices;
3. Eligible Persons to use Franco Valuta Subject to the conditions provided under articles 7 and 8, and other provisions of this Directive, the following may utilize Franco Valuta:
4. Licensed domestic (economic zones), diaspora and foreign investors;
5. Manufacturing and industrial enterprises owned foreign investors;
6. FDI and diaspora traders;
7. Development projects of strategic importance;
8. Owners of personal effects;

3 6. Religious institutions, government Institutions, and civic societies receiving grants; 7. Diplomatic corps and communities; 8. International, continental, and regional NGO institutions. 6. Investment and Manufacturing Related Use Franco Valuta may be permitted for:

1. Investment capital goods, machinery, spare parts and accessories for capital goods equipment;
2. Raw materials for manufacturing;
3. Technology equipment, software, industrial, agricultural, and services inputs;
4. Goods for renewable and non-renewable energy and infrastructure projects;
5. Personal effects;
6. Donation goods;
7. Goods for sample/experimental purposes;
8. Goods for temporary importation.
9. Goods for replacement with the warranty period
10. Goods imported by a third party service provider subjected to warranty agreement.
11. Goods for trade fairs, exhibitions, research and other related items;
12. Fuel for own consumption by embassies, international organizations, and foreign direct investors;
13. Other goods as may be permitted by the National Bank of Ethiopia for monetary, financial, and FX stability purposes, temporary or permanently.
14. Trading and Commercial Use Franco Valuta may be permitted for:
15. Importation of goods for wholesale or retail trade by FDI and diaspora engaged in domestic trading, as per the Ministry of Trade and Regional Intergradation proclamation or regulation;
16. Capital goods, inputs, spare parts, and other equipments for investments;

4 3. Importation of goods to special economic zone and free trade zone; 4. Permanent import, temporary import, re-export, and re-import goods; 5. Other commercial goods authorized by the National Bank; 6. Other goods will be permitted by Customs Commissioner’s discretionary, as delegated by the National Bank. 8. Obligations of Users Any Franco Valuta user, except from personal effect, shall:

1. Own and maintain all valid licenses;
2. Submit all required documents based on the purpose of import to Customs Commission;
3. Keep auditable records and
4. Comply with all applicable laws;
5. Documentation Requirements for Franco Valuta Investors and traders shall submit the following mandatory documents with their request:
6. Proforma /commercial invoice;
7. Shipping document such as bill of loading, air waybill, truck manifests, rail way bills and courier documents, as the case may be;
8. Investment or trade license, excluding import for person use by embassies, import by NGO’s, and others who do not require license;
9. Other documents attached as annex herewith. 10.Digital Control System
10. Customs Commission shall use or integrate with the established system (FEMoUS) to record and report Franco Valuta imports.
11. All transactions shall be digitally recorded and traceable.
12. Violations Violations include:

5

1. Misuse of Franco Valuta;
2. False declaration;
3. Circumvention or avoidance of controls.
4. Administrative Measures and Penalty Any individual who contravenes the provisions of this Directive shall be subject to one or more of the following measures:
5. Monetary penalties as per relevant laws;
6. Confiscation of goods in accordance with relevant laws;
7. Criminal liability as per the National Bank of Ethiopia Proclamation No. 1359/2025 and any other applicable laws.
8. Repealed Article 8 (8.1.3) of FXD/01/2024 Article 8, sub-article 8.1.3 of FXD/01/2024 is hereby repealed.
9. Effective Date This Directive shall enter into force as of the 29th day of May 2026.

1 Procedures for importing goods on a Franco Valuta basis S.No. Type of goods imported on a Franco Valuta basis Permitted quantity of goods and FOB value in US dollars for import on a Franco Valuta basis Supporting documents required to import goods on a Franco Valuta basis

1. Goods imported by diplomatic and consular missions for their recognized services All goods used for official use of diplomatic or consular missions Embassy document authenticated by the Ministry of Foreign Affairs
2. Goods imported by international organizations for their recognized services All goods used for official use of international organizations Document submitted by the international organization and authenticated by the Ministry of Foreign Affairs
3. Goods used by donor agencies for the services they provide All goods used for official use of the donor agencies Supporting document authenticated by the Ministry of Agriculture or the relevant government office
4. Goods imported for personal and household use of officials and employees of diplomatic and consular missions All personal and household goods used by officials and employees Embassy document authenticated by the Ministry of Foreign Affairs
5. Goods imported for personal and household use of officials and employees of international organizations All personal and household goods used by officials and employees Document of the international organization authenticated by the Ministry of Foreign Affairs
6. Goods imported for personal and household use of officials and employees of international donor agencies All personal and household goods used by officials and employees Supporting document authenticated by the Ministry of Agriculture or the relevant government office
7. Goods imported by budgetary Ethiopian government institutions that are related to and support their functions and are received from abroad as gifts, aid, or donations Only goods that are supportive of and necessary for their functions Confirmation document from the budgetary institution
8. Goods imported by civil society organizations that are related to and support their functions and are received from abroad as gifts, aid, or donations Only goods that are supportive of and necessary for their activities Authenticated certificate of donation, aid, or grant, and the organization’s registration document (Articles of Association)
9. Goods imported from abroad as gifts or aid exclusively for the Non-commercial goods imported in quantities appropriate to Authenticated certificate of donation or aid and the

2 S.No. Type of goods imported on a Franco Valuta basis Permitted quantity of goods and FOB value in US dollars for import on a Franco Valuta basis Supporting documents required to import goods on a Franco Valuta basis activities of religious, educational, medical, or professional organizations and institutions, not to be offered for sale the intended activities organization’s registration document 10. Personal and household goods (excluding vehicles) imported from abroad as gifts or donations for family members, relatives, or friends, not to be offered for sale As per the list of personal effects issued by the Authority 11. Goods imported as gifts or donations related to the research work of a researcher in any field Goods directly related and appropriate to the research work Supporting document from the research institution certifying that the goods are for research purposes 12. Personal and household effects (excluding vehicles) imported by individuals coming to reside in Ethiopia for the first time • Not of a commercial nature or quantity • Personal goods not exceeding USD 5,000 are duty￾free • Residence permit issued for living in Ethiopia • Confirmation issued by the Ministry of Foreign Affairs or the relevant government office 13. Tools, personal effects, and household items imported by Ethiopians and foreign nationals of Ethiopian origin permanently returning after staying abroad for various reasons • Document from the Ethiopian embassy or consulate in the country of residence, authenticated by the Ministry of Foreign Affairs, confirming permanent return • Employment or business document proving the importer was engaged in professional or business activity abroad, authenticated by the Ethiopian embassy/consulate and the Ministry of Foreign Affairs 14. Goods imported for investment activities, including capital goods and raw materials adequate up to the commissioning stage, and for personal use by Ethiopians and foreign nationals of Ethiopian origin who are permanently residing abroad and have an investment license from the appropriate government office • Capital goods strictly related to the investment • Raw materials related to and necessary for pilot production, within the approved quantity • Personal effects not exceeding an FOB value of USD 10,000.00 If the goods are duty-free, a supporting document issued by the Customs Clearance Office

3 S.No. Type of goods imported on a Franco Valuta basis Permitted quantity of goods and FOB value in US dollars for import on a Franco Valuta basis Supporting documents required to import goods on a Franco Valuta basis 15. Prizes, trophies, medals, and other awards sent to individuals or organizations in sports, arts, and similar fields, not intended for sale Not of a commercial nature or quantity Certificate issued by the awarding body and authentication by the relevant government office 16. Inputs used for goods exported abroad, such as labels, packaging, containers, and similar items Goods used solely for exported products Confirmation issued by the Ministry of Trade indicating coverage under the export promotion scheme 17. Gifts, trade samples, and promotional items not imported as merchandise • Promotional items bearing product logos, company names, special identifiers, or marks, not for commercial use, with FOB value not exceeding USD 5,000.00 • Gifts or commercial samples not of a commercial quantity, with FOB value not exceeding USD 4,000.00 Supporting document showing that the goods are related to a licensed business or service 18. Repeatedly used containers, boxes, tins, bottles, jars, and other packaging that enter the country temporarily Based on the quantity of goods imported Documents submitted for the imported goods carried in them 19. Non-commercial goods and equipment imported or sent for persons with disabilities All goods and equipment imported solely for persons with disabilities Confirmation issued by the Ministry of Labor and Social Affairs 20. Goods imported to replace omitted or defective items based on a warranty agreement between the supplier and the importer Goods equivalent in quantity to replace missing or defective items Evidence of loss or defect and a warranty document issued by the supplier to the importer 21. Goods urgently required for the normal operation of an institution or for an individual’s health where delay would cause serious disruption or imperil life • For medicines, imported as necessary in type and quantity with no FOB value limit • For vehicle spare parts, excluding engines, gearboxes, and differentials, limited to the extent of the damage • Supporting document from the institution, physician, or Ministry of Health • For vehicle spare parts, submission of ownership certificate (Libre)

4 S.No. Type of goods imported on a Franco Valuta basis Permitted quantity of goods and FOB value in US dollars for import on a Franco Valuta basis Supporting documents required to import goods on a Franco Valuta basis 22. Personal goods carried by travelers As per the list of personal effects issued by the relevant government office 23. Goods temporarily imported into the country and re-exported Within the permitted type and quantity Supported by an agreement with the relevant government office or other appropriate supporting document 24. Fuel for own consumption by embassies, international organizations, and FDI. As per the approval given by the recommending government office Supporting document from the relevant government office