Overview

This proclamation, issued on June 5, 2017, establishes a comprehensive legal framework for coffee marketing and quality control in Ethiopia. It aims to create a sustainable, traceable system that supplies quality, competitive unroasted and value-added coffee to the global market while ensuring fair benefits for producers, traders, and the country.

Key Definitions (Article 2)

The proclamation defines various coffee types and processing stages:

• Red cherry coffee: Ripe, picked but un-pulped coffee fruit
• Coffee with pulp: Dried red cherry coffee not yet hulled
• Washed coffee with parchment: Pulped, fermented, and dried with husk
• Washed coffee: Coffee with mucilage and parchment removed
• Semi-washed coffee: Pulped and dried with mucilage
• Natural/sun-dried coffee: Hulled, cleaned, and sorted coffee
• Special coffee: Certified for unique production/quality, sold at premium
• Supply coffee: Processed for direct delivery to ECX or exporters
• Export coffee: Raw, roasted, or value-added coffee meeting export standards
• Coffee by-product: Mixed with light, broken, underdeveloped coffee and husk
• Domestic consumption coffee: Non-exportable, max 15% pure coffee
• Traditionally processed coffee: Using outdated methods, not export-grade

Key Stakeholders and Their Obligations

Coffee Producers (Article 8)

• Must hold valid competence certificate and trade license (except small farmers)
• Can directly export from own farm after quality inspection
• Must sell through ECX or alternative transaction centers
• Must provide extension support to out-growers and pay fair prices

Coffee Suppliers (Article 9)

• Purchase, process, and transport red cherry/coffee with pulp only in designated areas
• Process within 8 hours into washed, semi-washed, or natural coffee
• Deliver to ECX or alternative transaction centers before next harvest
• Ensure quality standards and moisture content compliance

Coffee Exporters (Article 10)

• Hold valid competence certificate and trade license
• Process export coffee per national quality standards
• Maintain origin characteristics (unless special mixing permitted)
• Register contracts with National Bank within 24 hours
• Export within determined period without quality loss

Domestic Consumption Wholesalers (Article 11)

• Purchase only from ECX
• Cannot purchase, sell, or transport export coffee
• Sell only in licensed region/zone/city
• Must seal, obtain release letters, and verify delivery

Domestic Consumption Retailers (Article 12)

• Purchase only from domestic wholesalers or roasters
• Cannot handle export coffee
• Sell only in licensed retail shops
• Maintain transaction registers

Export Coffee Roasters (Article 13)

• Source input coffee from own farm, ECX, or directly from suppliers/producers
• Provide by-products to domestic roasters/retailers
• Maintain origin and quality (unless special mixing permitted)
• Label packaging with origin, quality, content, dates, type, and trademark
• Register contracts with National Bank within 24 hours

Domestic Coffee Roasters (Article 14)

• Purchase permitted coffee from ECX
• Roast/grind for domestic market only
• Label packaging with enterprise name, quality, content, dates, type, and trademark
• Maintain purchase/process/sell registers

Service Providers (Articles 15-16)

• Coffee processing/warehousing providers must have competence certificates
• Must process/store per quality standards and contract terms
• Transporters must ensure vehicle/driver competence, maintain seals, and prevent tampering

Coffee Transaction Process (Article 5)

Transactions occur through:

1. First-level centers (red cherry/coffee with pulp)
2. ECX or alternative transaction centers
3. Direct supplier-exporter transactions
4. Domestic market channels

All transactions require:

• Competence certificates
• Quality inspection and grading
• Proper sealing and release letters
• Daily transaction records

Quality Control (Article 4)

• Authority inspects coffee before export
• Quality inspection and certification centers grade and certify coffee
• Export coffee must meet national standards and buyer requirements
• Domestic coffee must meet minimum standards
• Authority decides on complaints

Prohibitions and Penalties (Article 19)

Violations include:

• Non-compliance with technical procedures: 1-3 years imprisonment + 20,000-40,000 Birr fine
• Trading outside ECX/authorized centers: 1-3 years + 20,000-40,000 Birr
• Improper storage: 1-3 years + 20,000-40,000 Birr
• Selling export-grade coffee domestically: 3-5 years + 60,000-100,000 Birr
• Deceptive acts: 3-5 years + 60,000-100,000 Birr
• Illegal storage: 3-5 years + 60,000-100,000 Birr
• Route deviation: 3-5 years + 60,000-100,000 Birr + vehicle confiscation
• Seal tampering: 3-5 years + 60,000-100,000 Birr
• Overloading/mixing: 6 months-3 years + 10,000-40,000 Birr
• Unauthorized buying: 1-3 years + 20,000-40,000 Birr
• Unauthorized agency: 1-3 years + 20,000-40,000 Birr
• Confidential information misuse: 1-5 years + 20,000-40,000 Birr

Legal persons face penalties under Criminal Code Articles 34 and 90.

Institutional Framework

• Authority: Ethiopian Coffee and Tea Authority (powers in Article 18)
• Ministry: Agriculture and Rural Natural Resources
• Regional organs: Regional Coffee and Tea Authorities
• ECX: Ethiopia Commodity Exchange
• Jurisdiction: Federal First Instance Court (criminal and civil matters)

Repeals and Transitional Provisions

• Repeals Proclamation No. 602/2008
• Pending cases finalized under previous law
• Existing competence certificates valid until replaced

Power to Issue Regulations

• Council of Ministers: regulations
• Authority: directives
• Regional States: laws
• ECX and ECX Authority: directives for ECX coffee trading

Effective Date

The proclamation entered into force on July 5, 2017.