New Customs Directive Seeks to Remove Export Uncertainty

New Customs Directive Seeks to Remove Export Uncertainty

May 31 , 2026. By BEZAWIT HULUAGER ( FORTUNE STAFF WRITER )

A pre-export origin ruling framework has been launched to regulate how Ethiopia certifies export goods. The system is designed to improve compliance with international trade rules and regional agreements. Exporters are required to submit detailed documentation and may face inspections or laboratory testing. The Commission issues rulings within 30 days, extendable by 15 days in complex cases. The reform aims to replace uncertainty with structured, enforceable origin verification.

The Ethiopian Customs Commission (ECC) has introduced a legally binding advance ruling system for determining the rules of origin of export goods, a move aimed at streamlining customs procedures and aligning Ethiopia's trade operations with World Trade Organisation (WTO) standards and African Free Continental Trade Area (AFCFTA).

The directive, signed in May 2026 by Minister of Revenue & Customs Commissioner Aynalem Nigussie, allows manufacturers and exporters to obtain official origin determinations before initiating exports. The measure is particularly relevant for businesses operating under continental, regional, or bilateral free trade agreements, as well as unilateral duty-free arrangements.

Under the new directive, applicants seeking an advance ruling must submit extensive documentation to the Tariff Classification & Rules of Origin Directorate, including a renewed export licence.

The application requirements include a Taxpayer Identification Number (TIN), comprehensive production formulas, and a detailed cost breakdown of domestic and imported raw materials used in production. Where submitted documents are considered insufficient, the Commission retains the authority to conduct on-site factory inspections and request laboratory analyses.

The Commission is required to issue a written decision within 30 days of receiving a complete application. The timeline may be extended by an additional 15 days in cases involving complex assessments or delays in laboratory findings. Once issued, an advance ruling remains legally binding on the Commission for three years.

Applicants dissatisfied with the decision may seek reconsideration through the Directorate within 15 business days, with further appeals permitted through the Appeals Review Directorate. While legally binding, the ruling does not replace the proof-of-origin documentation required at the time of shipment.

A senior rules-of-origin expert at the Commission, who requested anonymity, likened a certificate of origin to a product's citizenship. She explained that a product does not automatically acquire the citizenship of a country merely because value was added there or because part of its production process took place within its borders.

She added that exporters are responsible for covering the costs of laboratory tests and other investigations required to verify a product's origin. At present, the certification process is handled exclusively at the Commission's headquarters, where 223 declarations have been approved to date.

By shifting origin verification to the pre-export stage, the directive is expected to reduce clearance delays at customs checkpoints and strengthen confidence in customs administration. As Ethiopia expands its participation in regional trade blocs, the initiative signals an effort to improve institutional capacity and enhance market transparency through the public disclosure of non-confidential rulings on the Commission's website.

The development comes six months after Ethiopia joined the African Continental Free Trade Area (AfCFTA), launched by Kassahun Gofe (PhD) the minister of Trade and Regional Intergration.

Yet, major obstacles continue to hinder implementation. Persistent infrastructure deficits, including unreliable electricity supply and limited broadband access, combine with high internet costs to constrain digital trade adoption. Regulatory fragmentation, the absence of harmonised standards, data sovereignty concerns, financing challenges linked to currency instability and limited venture capital, as well as shortages of technical expertise and digital literacy, continue to weigh on the continent's integration ambitions.

According to the latest available UN COMTRADE data with a detailed regional breakdown, 15pc of Ethiopia's merchandise exports were destined for African markets in 2021, while the continent accounted for seven percent of the country's imports.

A report titled Growth Through Innovation: Economic Report on Africa 2026, released by the United Nations Economic Commission for Africa (UNECA), argues that deeper structural transformation is required to unlock the full benefits of regional integration. The report stresses that progress depends on embedding innovation into regional value chains, supporting industrialisation and manufacturing clusters centred on critical minerals and clean energy, rather than relying solely on tariff reductions.

Emerging technologies are already helping reduce transaction costs through initiatives such as the Pan-African Payment & Settlement System (PAPSS), which facilitates real-time cross-border payments in local currencies. The platform is also advancing efforts toward a unified digital market through the harmonisation of e-commerce and cybersecurity regulations, enabling African economies to bypass legacy constraints through modern logistics platforms such as the Africa Trade Gateway (ATG). PAPSS is currently being piloted in several countries and is expected to be introduced in Ethiopia, according to information confirmed to Fortune.

In 2025, the PAPSS African Currency Marketplace (PACM) facilitated the exchange of more than 120 million dollars in trapped aviation-sector funds. The most actively exchanged currencies in the aviation segment included the Malawi Kwacha, Mozambique Metical, and Central African CFA franc. As of April 2026, PAPSS supports 18 African currencies across West, Central, East, and Southern Africa, while the Egyptian Pound and Ethiopian Birr are scheduled for inclusion during the second quarter.

Edao Abdi, president of the Ethiopian Oil & Pulse Exporters Association (EPOSPEA), says exports of oilseeds and grains within Africa have begun gaining momentum, though trade remains concentrated in a limited number of crops and regional markets, particularly Kenya.

He noted that while Uganda and Tanzania produce maize, their output of certain pulses remains below Ethiopia's production levels. At the same time, restrictions have been imposed on Cash Against Documents (CAD) arrangements for exports to Kenya, Egypt, and Sudan.

Edao argues that the African Union has yet to provide an effective solution to cases where buyers take possession of goods without completing payment. He maintains that the National Bank of Ethiopia (NBE) bears responsibility for protecting exporters from financial losses arising from such transactions. According to him, the core challenge has never been the absence of payment instruments such as Letters of Credit (LC), which are widely available, but the frequency of payment defaults. This reality has compelled traders to depend heavily on trust and consistent delivery performance to sustain long-term commercial relationships.

Logistics experts such as Tewodros Kassahun observe that certificates of origin remain relatively easy to obtain and, in many destinations, are not yet rigorously required. He believes this reflects the early stage of regional trade integration but cautions that stricter enforcement and verification requirements are likely to emerge as continental trade expands.

PUBLISHED ON May 31,2026 [ VOL 27 , NO 1361]