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Foreign Exchange Permit and Franco-Valuta



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Ethiopia Customs Guide

19.3 Foreign Exchange Permit and Franco-Valuta
“foreign exchange permit” provides a method for the settlement 
of payments through a bank that is engaged in import or export 
business in Ethiopia. This is the normal procedure to be applied 
for imports and exports. Conversely, “franco-valuta” refers to the 
importation of goods without the use of bank method of payment. 
This method can only be applied under certain conditions.
Goods are allowed to be imported on franco-valuta basis
94
under 
the following circumstances:
• For official use of diplomatic and consular missions, 
international organizations and donor agencies;
• For personal and household use of officers and employees of 
diplomatic and consular missions, international organizations 
and donor agencies;
94 Council of Ministers Revised Regulation on the Importation of Goods on Franco-Valuta Basis 
Regulation No. 88/2003.


ETHIOPIAN CUSTOMS GUIDE -
MARCH 2017
152
• By budgeted Ethiopian Government institutions and civic 
associations related to and supporting their function that 
receive gifts, aid, and donations from abroad;
• Gifts or donations that are intended solely and exclusively for 
religious, educational, medical, or professional organizations 
and institutions and that are not to be sold;
• Personal and household goods, excluding motor vehicles, 
imported from abroad as gifts or donations for family relatives 
and friend; Gifts or donations to a researcher’s research 
activity;
Personal and household effects, excluding motor vehicles, 
imported by persons upon first arrival and intending to take up 
residence in Ethiopia;
• Personal and household effects, as well as goods and 
equipment necessary for their livelihood, that are imported by 
Ethiopians and foreign nationals of Ethiopian origin who have 
stayed abroad for various reasons;
• Goods for investment activities, including capital goods and 
adequate raw materials, needed up to the commissioning 
stage and for personal use by Ethiopian and foreign nationals 
of Ethiopian origin investors who are permanently residing 
abroad and have a license from the appropriate government 
office;
• Awards obtained by and sent to individuals and organizations 
for outstanding achievement and cups, medal, and other 
trophies imported for presentation only and not to be sold;
• Inputs, such as labels, seeds, packages, and the like for goods 
to be exported;
• Gifts, trade samples, and advertising materials not imported as 
merchandise;
• Repeatedly used containers, boxes, tins, bottles, jars, and 


ETHIOPIAN CUSTOMS GUIDE -
MARCH 2017
153
other packages imported full of any articles liable to a 
specific duty rate and being ordinary packages for the goods 
contained therein; Goods specialized for use by disabled and 
handicapped people, imported by individuals and not to be 
sold;
• Goods for the replacement of short landed or defective goods 
accorded by the supplier to the importer under the terms of 
warranty;
• Extremely vital and urgently needed goods for the normal 
operation of an institution or health of a person, without 
which its function would be obstructed respectively his/her 
survival may be imperiled; Personal effects of travelers; and
• Goods introduced into the country temporarily and subject to 
re- export.
Detailed information is contained in the revised Regulation on the 
Importation of Goods on Franco-Valuta Basis (Council of Ministers 
Regulation No. 88/2003) and Ethiopian Revenue and Customs 
Authority Directive No. 66/2012.

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