The Ethiopian Coffee and Tea Authority (ECTA) has issued a new directive that will require exporters of coffee to sell at a minimum price as part of the country’s efforts to capture revenue currently lost through under-invoicing.
Coffee is central to Ethiopia’s economy, providing jobs to around one quarter of the population and accounting for around 30 per cent of the country’s hard currency earnings.
Minimum set price
The new directive will determine each day the minimum selling price of coffee so that it falls in line with the global weighted average price of the commodity.
The minimum price will be set by ECTA in collaboration with the National Bank of Ethiopia (NBE).
Requirements for exporters
Exporters are required to report export sales within 24 hours of completing a deal and must state the quantity, value and the quality grade of the coffee the seller has agreed to deliver to the buyer.
Once a contract is concluded, coffee should be shipped within 90 days and the value of the consignment should be deposited in NBE accounts.
Selling coffee below the minimum price will be a punishable offence.
Categories: Trade Based Financial crimes News