The Ethiopian Coffee and Tea Authority has issued a new directive to regulate exportable coffees’ minimum price on the grounds of the global weighted average.
Coming into effect on the 10th of January 2020, the new directive called “Export Coffee Contract Administration” will determine the minimum selling price of coffees through everyday price analysis that involves both the Authority and the National Bank of Ethiopia (NBE).
The aim is to prevent under invoicing and contract defaults that have been hampering the performance of the coffee export sector.
Those who fail to comply with the directive will receive penalties depending on the degree and occurrences. A first-time offense will produce a written warning. If that same offender manipulates and breaks the law for the second time, they will receive a one-year ban from performing any coffee related business. A third time offense produces a complete ban from the sector and will result in criminal charges.
The directive requires exporters to report within 24 hours of completing a deal stating the volume, value and the graded quality of coffee, the sellers have agreed to deliver to the buyer. Once the contract is concluded, the coffee is expected to be shipped out within 90 days and the value shall be deposited in the coffers of NBE. This way both defaulters and under invoicing will be checked.
Source: The Reporter