summary of new provisions compared to the previous amendments (Proclamation No. 1160/2019 and the original Proclamation No. 859/2014):

Summary: The Customs Proclamation (as Amended) Further Amendment No. 1425/2026 introduces several key changes to Ethiopia’s customs framework, including new rules for valuing imported software based solely on the carrier medium, expanded examination powers for the Customs Commission (allowing scanning, laboratory analysis, and re-examination), and an extension of the temporary storage period for sea/land imports to 45 days. It also permits partial release of goods upon proportional duty payment, establishes a valuation database for risk management, tightens origin marking and preferential origin rules, and significantly increases penalties for carriers and warehouse license violations—including fines up to Birr 500,000 for mixing contraband after opening seals and Birr 200,000 for failing to re-export temporary imports—while requiring 50% payment of disputed duties before an appeal can be lodged.

1. New Definitions and Valuation Rules (Major Addition)

• Software and Data Carriers (New Art. 98(4)-(6)): For the first time, specific rules are introduced for valuing imported software. The customs value of carrier media (like disks or tapes) bearing software will be based solely on the cost of the carrier medium itself, not the software. The cost of the software can be deducted if the declarant provides clear information distinguishing it from the physical carrier.
• Definitions for Software Valuation (New Art. 98(7)): New definitions are added for “Data carrier” (physical objects like magnetic discs) and “Data or instructions (Software)” (recorded programs, excluding sound recordings, cinematic films, and video recordings).

2. Customs Examination and Release Procedures

• Examination Methods (Art. 23(1)-(3)): The Commission is now explicitly authorized to examine goods in whole, in part, or by taking samples using cargo scanning equipment, laboratory analysis, physical inspection, or other alternatives. It can also conduct a documentary examination to verify the accuracy of the declaration.
• Re-examination (Art. 23(4)): The Commission can now conduct a re-examination of goods that have already undergone a goods and/or documentary examination if it finds it necessary.
• Partial Release of Goods (Art. 25(5)): A new provision allows for the partial release of goods if the declarant states they cannot pay the duties and taxes at once and requests it. The Commission can release a portion of the goods once the duties and taxes for that specific portion are paid.
• Storage Time Limits (Art. 51(1) & (2)): The time limit for goods imported by sea or land to be removed from temporary customs storage is extended to 45 days (from the previous 15 days). For air transport, it remains at 30 days. These limits can be extended due to customs controls, administrative action, or force majeure.

3. Valuation and Origin Rules

• Valuation Database (Art. 89(5)): The Commission is now explicitly permitted to use valuation databases for risk management and value verification. However, these databases cannot serve as fixed or minimum values and cannot replace the established valuation methods.
• Rejection of Transaction Value (Art. 90(1)(d)): If the buyer and seller are related, the Commission can question the declared transaction value if it has reasonable grounds to believe the relationship influenced the price. If the importer cannot prove otherwise, the Commission may reject the declared value.
• Production of Additional Information (Art. 99): The Commission is given more explicit power to require additional information or evidence if it doubts the declared transaction value. If doubts persist, it can determine the value using the next applicable method (Articles 91-95).
• Exchange Rate (Art. 101): The exchange rate used for calculating customs value is now the indicative exchange rate declared by the National Bank of Ethiopia on the date the declaration is submitted to and accepted by the Customs Commission (previously it was the date of registration).
• Origin Marking (Art. 107): The marking requirements are tightened. The country of origin must be affixed in English in a manner that cannot be easily deleted, removed, or altered. This does not apply to personal use items not intended for trade.
• Preferential Origin (Art. 108): New provisions state that preferential tariff treatment is governed exclusively by the rules of origin in relevant trade agreements. The Commission is designated as the competent authority for administering, implementing, issuing, and verifying proofs of preferential origin.

4. Security and Refunds

• Forms of Security (Art. 118(1)): The acceptable forms of security are now specified as cash deposit, bank guarantee, insurance bond, or a written undertaking for public bodies, public enterprises, and authorized economic operators.
• Time Limit for Refund Claims (Art. 123(2)): The time limit for claiming a refund of overpaid duties and taxes is changed to one year from the date customs formalities were completed and the declaration was finalized, or from the date the declaration was deleted from the customs system if the goods will not enter the country.

5. Penalties and Offences

• Carrier Penalties (Art. 160): Fines for carriers are significantly increased:
  • Failing to submit a manifest or delaying departure without permission: ETB 4,000 to ETB 10,000 (up from ETB 2,000-5,000).
  • Loading/unloading without a customs officer: ETB 15,000 to ETB 20,000 (up from ETB 7,000-10,000).
• Contraband Transport Penalties (Art. 160(3)-(5)): New and stricter penalties for vehicle owners:
  • If the owner failed to take preventive measures: 100% of the value of contraband goods or Birr 200,000 (whichever is lesser), plus confiscation of the means of transport.
  • If the owner mixed contraband goods after opening a cargo seal or container: A fine of Birr 500,000, plus confiscation of goods.
  • The penalty cannot exceed the current market value of the means of transport.
• Customs Warehouse License Violations (Art. 161(1)): The fine for failing to comply with license obligations is increased to Birr 100,000 to Birr 200,000.
• Misplaced Goods (Art. 161(2)): If goods meant for a bonded warehouse are found in temporary storage and not transferred within 5 working days, the importer faces a fine of Birr 10,000.
• Failure to Re-export Temporarily Imported Goods (Art. 161(3)): The importer must pay a fine of Birr 200,000 in addition to duties and taxes, and must re-export the goods within one month.
• Appeal Requirements (Art. 155(2)): For appeals related to duties and taxes, the Federal Tax Appeal Commission will not admit an appeal unless 50% of the disputed duties and taxes have been paid.

6. Other Changes

• Rewards for Informants (Art. 133(3)): Persons who provide information leading to the seizure of goods shall be rewarded in accordance with a directive from the Ministry of Finance.
• Confidentiality (Art. 133(4)): Information provided on a confidential basis for customs valuation must be treated as strictly confidential.
• Transitional Provision: Pending cases started before this new proclamation shall be settled based on the provisions of the amended Proclamation
• Amends: (Proclamation No. 1160/2019 (Amendment) and the original Proclamation No. 859/2014)
• effective date: 23rd day of July 2026