Thursday, March 12, 2026

Importers decry bureaucratic hurdles in cross-border trade

By Eyasu Zekarias

Ethiopian importers have voiced growing frustration over what they describe as inconsistent and bureaucratic customs procedures that are disrupting cross-border trade and driving up the cost of essential commodities.

Importers of food and other basic goods say the Ethiopian Customs Commission’s documentary requirements are “unrealistic and retroactive,” with changing regulations often applied to goods already en route. One key grievance concerns a demand for the submission of a Bill of Lading (BoL)—a maritime shipping document—even for products transported overland from the Djibouti Free Trade Zone.

“New directives often come out while our shipments are still on the way,” said one importer during recent consultations between the Customs Commission, manufacturers, and freight forwarders on Customs Valuation Directive No. 1080/2025. “We start the process following one rule, but by the time the goods arrive, the rules have changed. This exposes us to penalties we could not have anticipated.”

Traders argue that frequent procedural changes have particularly affected those dealing in basic food items, where slim profit margins leave little room for delays or unexpected costs. They warn that bureaucratic hurdles—such as requiring maritime documentation for land shipments—threaten to disrupt the supply of staples like sugar and edible oil, ultimately pushing up consumer prices.

Several importers also complained about the Commission’s post‑clearance audit (PCA) practices. They allege that customs auditors, years after goods have been cleared, distributed, and sold, return to demand additional payments for “sea freight” costs—even on shipments that never involved maritime transport. “Two or three years later, they come back and tell us to pay transport fees and fines after the goods have long left the market,” one importer told Capital. “This is a financial burden many small traders cannot withstand.”

Responding to these concerns, Zemenu Zegeye, Director of the Valuation and Development Directorate at the Ethiopian Customs Commission, acknowledged that earlier rules had indeed made the submission of BoL and marine insurance mandatory for imports from neighboring countries. He clarified, however, that the latest directive has lifted those requirements.

“The previous directive required importers to submit the Bill of Lading and marine insurance, but under the new directive, these requirements have been fully removed,” Zemenu said. He explained that importers now only need to verify that the declared price reflects the actual transaction value.

Zemenu further noted that the Commission determines import values using standardized valuation methods—not arbitrary estimates. “Customs does not guess value,” he emphasized. “We rely on six scientific valuation methods, which include comparing similar imported goods within the last 90 to 180 days, conducting local market studies, and consulting international price databases.”

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