Import on Franco Valuta Directive FVD/01/2026

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;

2.5 “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;

9. Religious institutions, government Institutions, and civic societies receiving
   grants;

10. Diplomatic corps and communities;

11. International, continental, and regional NGO institutions.

12. Investment and Manufacturing Related Use
    Franco Valuta may be permitted for:

13. Investment capital goods, machinery, spare parts and accessories for capital
    goods equipment;

14. Raw materials for manufacturing;

15. Technology equipment, software, industrial, agricultural, and services inputs;

16. Goods for renewable and non-renewable energy and infrastructure projects;

17. Personal effects;

18. Donation goods;

19. Goods for sample/experimental purposes;

20. Goods for temporary importation.

21. Goods for replacement with the warranty period

22. Goods imported by a third party service provider subjected to warranty
    agreement.

23. Goods for trade fairs, exhibitions, research and other related items;

24. Fuel for own consumption by embassies, international organizations, and
    foreign direct investors;

25. Other goods as may be permitted by the National Bank of Ethiopia for
    monetary, financial, and FX stability purposes, temporary or permanently.

26. Trading and Commercial Use
    Franco Valuta may be permitted for:

27. 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;

28. Capital goods, inputs, spare parts, and other equipments for investments;

29. Importation of goods to special economic zone and free trade zone;

30. Permanent import, temporary import, re-export, and re-import goods;

31. Other commercial goods authorized by the National Bank;

32. Other goods will be permitted by Customs Commissioner’s discretionary, as
    delegated by the National Bank.

33. Obligations of Users
    Any Franco Valuta user, except from personal effect, shall:

34. Own and maintain all valid licenses;

35. Submit all required documents based on the purpose of import to Customs
    Commission;

36. Keep auditable records and

37. Comply with all applicable laws;

38. Documentation Requirements for Franco Valuta
    Investors and traders shall submit the following mandatory documents with their request:

39. Proforma /commercial invoice;

40. Shipping document such as bill of loading, air waybill, truck manifests, rail way
    bills and courier documents, as the case may be;

41. Investment or trade license, excluding import for person use by embassies,
    import by NGO’s, and others who do not require license;

42. Other documents attached as annex herewith.
    10.Digital Control System

43. Customs Commission shall use or integrate with the established system
    (FEMoUS) to record and report Franco Valuta imports.

44. All transactions shall be digitally recorded and traceable.

45. Violations
    Violations include:

46. Misuse of Franco Valuta;

47. False declaration;

48. Circumvention or avoidance of controls.

49. Administrative Measures and Penalty
    Any individual who contravenes the provisions of this Directive shall be subject to one or more of the following measures:

50. Monetary penalties as per relevant laws;

51. Confiscation of goods in accordance with relevant laws;

52. Criminal liability as per the National Bank of Ethiopia Proclamation No.
    1359/2025 and any other applicable laws.

53. Repealed Article 8 (8.1.3) of FXD/01/2024
    Article 8, sub-article 8.1.3 of FXD/01/2024 is hereby repealed.

54. Effective Date
    This Directive shall enter into force as of the 29th day of May 2026.

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

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

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)

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