FVD/01/2026 – IMPORT ON FRANCO VALUTA
Summary
This directive establishes a unified legal framework for Franco Valuta transactions, aiming to prevent foreign exchange abuse and illicit trade practices by setting clear rules for eligible users, permitted goods, documentation, and digital control systems. It also repeals a specific article from a previous directive (FXD/01/2024).
Who's affected
Importers, investors, manufacturers, traders, government institutions, NGOs, diplomatic corps, and individuals involved in transactions where foreign exchange from the domestic banking system is not payable.
Action required
Businesses and individuals intending to import goods on a Franco Valuta basis must review the directive, ensure they meet the eligibility criteria, and gather the specified supporting documents for their specific type of import.
Key points
8- Establishes a unified framework for Franco Valuta imports.
- Aims to prevent foreign exchange abuse and illicit trade.
- Defines eligible users and specifies permitted goods for investment, manufacturing, and trade.
- Mandates digital recording and traceability of transactions.
- Outlines documentation requirements for various import scenarios.
- Specifies penalties for violations, including monetary fines, confiscation, and criminal liability.
- Repeals Article 8 (8.1.3) of FXD/01/2024.
- Effective date is May 29, 2026.
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Requirements
6- Possess and maintain all valid licenses (unless exempt for personal use, NGOs, etc.)
- Submit required documents to the Customs Commission based on the purpose of import
- Keep auditable records
- Comply with all applicable laws
- Digital recording and traceability of all Franco Valuta transactions via FEMoUS
- Submission of proforma/commercial invoice, shipping documents, and investment/trade license (where applicable)
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Rights and permissions
4- To utilize Franco Valuta for permitted investment, manufacturing, and trading purposes
- To import personal effects
- To import goods for donations, grants, samples, research, temporary import, replacement, and trade fairs
- To import fuel for own consumption by embassies, international organizations, and FDI
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Restrictions
4- Franco Valuta is not payable from the domestic banking system's foreign exchange reserves.
- Specific documentation is required for each type of import.
- Certain goods are restricted or have specific conditions for Franco Valuta import.
- Misuse of Franco Valuta, false declarations, and circumvention of controls are violations.
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Penalties
3- Monetary penalties as per relevant laws
- Confiscation of goods in accordance with relevant laws
- Criminal liability as per the National Bank of Ethiopia Proclamation No. 1359/2025 and any other applicable laws
Objectives
2- Establish a unified legal framework governing Franco Valuta transactions
- Protect the national economy from foreign exchange abuse and illicit trade practices
Organizations
3- National Bank of Ethiopia
- Ethiopian Customs Commission
- Ministry of Trade and Regional Integration
Legal references
4- National Bank of Ethiopia Proclamation No. 1359/2025, Article 39(5)
- National Bank of Ethiopia Proclamation No. 1359/2025, Article 39(6)
- National Bank of Ethiopia Proclamation No. 1359/2025, Article 53(2)
- FXD/01/2024, Article 8, sub-article 8.1.3 (Repealed)