The House of Peoples’ Representatives has approved a major amendment to Ethiopia’s Customs Proclamation, introducing tougher penalties against contraband trade, including the confiscation of vehicles used to transport illicit goods.
The amendment was passed on Tuesday, June 9, 2026, during the House’s 24th regular session. The bill secured majority approval, with only two members voting against it.
Lawmakers said the revised law is intended to strengthen the fight against smuggling, reduce black market activity, and close enforcement gaps that have allowed contraband networks to operate with limited financial risk.
A key feature of the amendment is the introduction of stricter penalties against vehicle owners whose vehicles are used in smuggling activities. Under the previous customs framework, transporters caught carrying contraband were subject to a fixed fine of Birr 100,000.
Parliamentary discussions indicated that the previous penalty had failed to serve as an effective deterrent. Instead, it was increasingly viewed by smugglers as a manageable cost within their illegal operations.
Under the newly amended proclamation, vehicles involved in serious smuggling activities may now be fully confiscated and transferred to state ownership.
The law provides for the absolute confiscation of vehicles that are built, modified, or fitted with hidden compartments used to conceal goods. It also applies to vehicles found transporting a full load of contraband or contraband exceeding thresholds to be determined by the Ministry of Finance.
In such cases, the vehicle may be seized regardless of the monetary value of the contraband being transported. However, the amendment also includes a due process safeguard requiring authorities to notify vehicle owners and give them an opportunity to present evidence regarding how their vehicle was used.
The amendment also introduces a major change to the tax appeal process for importers. Previously, importers who disagreed with duty and tax assessments issued by the Customs Commission were required to pay the full disputed amount before lodging an appeal.
Under the new law, importers may appeal to the Tax Appeal Commission by paying only the portion of the tax or duty they admit to owing, together with a deposit of 50 percent of the disputed amount. Lawmakers described the change as an important correction to a long-standing problem that had restricted access to appeal mechanisms.
The revised proclamation also increases administrative penalties for transporters and operators who fail to comply with customs procedures.
Transporters who fail to submit cargo or passenger manifests on time, allow unauthorized persons onboard, or delay departure from customs ports without authorization may face fines ranging from Birr 4,000 to Birr 10,000.
Operators who load or unload goods at a customs port without the presence of a customs officer may be fined between Birr 15,000 and Birr 20,000.
The amendment further provides that if a vehicle is found carrying contraband and the owner is deemed to have failed to take the necessary precautions to prevent the offense, the owner may be fined an amount equal to 100 percent of the value of the contraband or Birr 200,000, whichever is lower. The contraband goods will also be confiscated. This administrative penalty does not prevent separate criminal liability where the owner is proven to have been directly involved in the offense.
The highest administrative fine under the amendment applies to transport owners who break customs seals or open cargo containers in order to mix contraband goods with legally transported goods. Such violations will attract a fixed fine of Birr 500,000, in addition to the seizure of the goods.
The Ministry of Finance is expected to issue detailed directives outlining the enforcement framework, including the specific volume thresholds that will trigger automatic vehicle confiscation.
Source: Sheger FM 102.1
