News Customs Commission grants franco valuta importers month to finalize shipments
By Elias Tegegn
November 30, 2024
Customs officials have announced an extension for the drawdown of the franco valuta scheme, instructing all importers to finalize transactions and shipments within the coming 30 days.
The announcement follows a decision from Finance Minister Ahmed Shide on November 7, 2024, directing importers to wrap up ongoing franco valuta transactions within two weeks. A letter from the Minister said the scheme had lived out its usefulness and declared that commercial banks would henceforth be responsible for supplying foreign currency to importers.
A subsequent notice from Debele Kabeta, Customs commissioner, issued to all customs branch offices, including the one at Addis Ababa’s Bole International Airport, instructs officers to permit importers with the appropriate documents a full month to finalize their imports.
Federal officials first introduced the franco valuta scheme in a bid to cut down the time importers would spend waiting to open letters of credit at commercial banks, who themselves were struggling with severe forex shortages.
The scheme enabled individuals and businesses with forex on hand to import basic commodities directly. The list of eligible commodities was determined by the government and included items like edible oil, sugar, and flour.
The Finance Ministry has reversed the decision in light of reported improvements in foreign exchange reserves.
This week’s notice from the Customs Commission emphasized that only importers who are registered at branch offices and acknowledged by the head office will be permitted to complete their franco valuta commodity imports within the next 30 days.