- Introduction
The recently enacted Coffee Marketing and Quality Control Amendment Directive No. 1106/2017 Ethiopian Calendar, which amends Directive No. 02/2012 Ethiopian Calander, introduces significant changes aimed at strengthening the oversight of coffee exporters in Ethiopia. These amendments address gaps in the previous Directive by enhancing qualification standards, raising capital requirements, tightening compliance controls, and introducing new digital procedures and mandatory engagement timelines. Collectively, these changes are designed to ensure greater transparency, quality assurance, and accountability in Ethiopias coffee export sector.
- Rationale for the Amendment
The Directive was amended to better support, monitor, and control coffee exporters, to align capital requirements with the current Coffee Market situation, and to prevent misuse of the Certificate of Competency for illegal activities.
- Main Amendments
- Office and Laboratory Requirements
Previously, exporters were only required to have basic office facilities such as furniture, a telephone, a computer with a printer, and an information management system. The amended Directive now requires that all exporters (except farmer-exporters) possess a coffee laboratory certified by the Ethiopian Coffee and Tea Authority, capable of conducting basic quality cupping.
- Human Resource Arrangements
The previous directive required the employment of a coffee quality professional with a diploma and at least two years of experience. The amended Directive now stipulates that cuppers must be at least 18 years old, possess a diploma, hold a valid and renewed competency certificate in tasting from a recognized coffee training institution, and have any level of experience. Furthermore, one cupper may serve only one exporter.
- Digital Application Process
Applicants for a Certificate of Competency must now electronically submit scanned documents to the Ethiopian Coffee and Tea Authority, demonstrating compliance with the requirements outlined in the regulation and directive. In cases where electronic submission is not possible due to system failure or lack of access, in-person submission is permitted.
- Appeal Process
If an applicant disagrees with the Ethiopian Coffee and Tea Authoritys decision, they may file a written appeal within five days, either electronically or in person. The previous directive did not specify the method for submitting such appeals.
- Capital Requirements for Coffee Exporters
To obtain a Coffee Exporter Competency Certificate, applicants must meet the following enhanced capital requirements:
- Individual Applicants: Must present a bank-certified document demonstrating a minimum initial capital of ETB 15 million (increased from the previous requirement of ETB 1 million) and provide evidence of at least one year of financial activity.
- Business Associations: Must submit bank-certified proof of at least ETB 20 million in initial capital. Additionally, at least two major shareholders must provide documentation of one year of financial activity.
- Private Limited Companies: The owner is required to submit a bank-certified document showing one year of financial activity, consistent with the capital requirement stated above.
- Procedure for Signing and Receiving the Certificate
Upon fulfillment of all requirements, the exporter or their authorized legal representative must appear in person to sign for the Certificate of Competency. For business associations, the designated manager is required to appear personally to sign and collect the certificate. If the manager is unable to appear due to imprisonment, illness, being abroad, or another approved force majeure situation, a legal representative may sign on their behalf.
- Issuance of Certificate of Competency
Unlike the previous directive, which mandated only the issuance of certificates upon fulfillment of requirements, the amended Directive now requires that certificates be issued with a QR code in color print. This measure is intended to enhance security, prevent tampering, and increase the durability of the certificates.
- Mandatory Engagement in Coffee Export
Exporters who obtain a Certificate of Competency must commence export activities within one year of obtaining the certificate, with the exception of farmer-exporters. Furthermore, certificate holders are required to renew their certificate within the timeframe specified in the Directive.
- Cancellation for Failure to Rectify Suspension
Should a suspended exporter fail to address the issues leading to their suspension and renew their certificate within three months, the certificate will be permanently cancelled.
- Restriction on Holding Multiple Certificates
No individual or organization engaged in coffee exporting may possess more than one type of Certificate of Competency under the same name. This provision is intended to eliminate loopholes that could allow for conflicts of interest, double participation, or market manipulation, thereby ensuring clear classification of exporters and improving regulatory oversight.
- Conclusion
The amendments to the Coffee Marketing and Quality Control Directive introduce significant changes aimed at strengthening the regulatory framework governing coffee export in Ethiopia. By increasing capital requirements, introducing enhanced verification measures such as QR-coded certificates, and enforcing stricter compliance and renewal procedures, the directive seeks to ensure that only qualified, financially stable, and accountable entities participate in the coffee export sector. These changes are expected to improve the quality and reliability of Ethiopian coffee exports, enhance the reputation of Ethiopian coffee in international markets, and support the long-term sustainability and growth of the industry.
Should you require further details or clarification on any specific section of the directive, please do not hesitate to let us know.
Compiled by Melkamu Destaw (Junior Legal Associate at MAP Legal Services LLP)
Disclaimer: The information provided herein is intended for general informational purposes only and does not constitute legal advice, regulatory guidance, or an official interpretation of any law or directive. While every effort has been made to ensure the accuracy and completeness of the content, the details may be subject to change based on subsequent amendments, official publications, or regulatory updates. Stakeholders are advised to consult the official text of the Coffee Marketing and Quality Control Directive and seek professional legal or regulatory counsel before making any decisions or taking any actions based on this information. The author and publisher accept no responsibility or liability for any loss or damage arising from reliance on the information contained in this document.
