Ministry Set to Regulating Export Contracts

Addis Ababa  October 21  /2019 Ministry of Trade and Industry disclosed today that it will start implementing export contract registration and performance directive effective from 28 October 2019.

Pursuant to the requirements of the regulation for license, exporters need to fulfill requirements to register at the Ministry of Trade and Industry and get exporters license from the National Bank of Ethiopia, it was indicated.

Trade and Industry State Minister, Misganu Aragaw said export performance partly declined due to absence of export contract in place.

“We observed various bottlenecks that emanated from inappropriate regulation of export contract. We are working to improve Ease of Doing Business in the trade system under the economic reform after assessing the export trade system requires regulation,” he said.

The contracts of all commodities that pass through the Ethiopia Commodity Exchange (ECX) will be registered and approved by the ministry and sent to the National Bank of Ethiopia for export license to be issued starting October 28, 2019.

There was no regulation mechanism to supervise, control, and regulate contracts and agreements performances by the ministry.

“So, there was no system to control exporter’s quality, price and contracts, which destination countries complain with exporters in completion of contracts,” he pointed out.

According to Misganu, the newly introduced directive enables to build positive image for the country’s export sector on the top of regulating price and quality of exported commodities.