Summary:
Ethiopian Customs Proclamation No. 859/2014 consolidates and modernizes Ethiopian customs law, emphasizing risk management, electronic procedures, strict enforcement, and alignment with international standards.

1. Purpose & Scope
   • Modernize customs laws to facilitate trade, investment, and manufacturing.
   • Prevent contraband and commercial crimes.
   • Align with international, continental, and regional trade agreements.
2. Key Objectives
   The proclamation aims to:
   • Ensure efficient collection of duties and taxes
   • Facilitate trade and economic development
   • Prevent illegal trade practices
   • Promote transparent, predictable customs services
3. Key Definitions:
   • Goods: Tangible/intangible chattels, including money and natural resources.
   • Duty/Tax: Charges levied on imports/exports per customs tariff and tax laws.
   • Customs territory: Ethiopia’s territory.
   • Customs warehouse: Includes temporary storage, bonded warehouses, and government warehouses.
   • Prohibited/Restricted goods: Items banned or restricted by Ethiopian law or international agreements.
   • Electronic signature: Digital signature for authenticated electronic records.
   • Customs control: Measures to ensure compliance
   • Customs transit: Movement of goods under customs supervision
   • Customs port: Designated place for import/export handling
   • Risk management: Classification of goods based on risk level
   • Release of goods: Authorization for goods to enter intended
4. Principles of Customs Operations
   • Self-assessment system (importers/exporters declare value and pay duties)
   • Risk management-based control and facilitation; keeps balance between trade facilitation and control. Higher Focus given to high-risk goods
   • Non-discriminatory treatment of goods based on nature, quantity, origin, etc.
   • Use of electronic information exchange systems for declarations, payments, and release orders.
5. Goods Declaration & Clearance
   • Declarant responsible for accuracy and completeness information, and payment of duties and taxes.
   • Goods declaration can be written, oral, or electronic.
   • Supporting documents required (e.g., invoice, transport document, certificate of origin, packing list, bank permit).
   • Provisional declarations allowed in certain cases.
   • Pre-arrival clearance and post-clearance audit permitted.
6. Customs Procedures
   • Transit, transshipment, warehousing: Goods under customs control during movement or storage.
   • Temporary importation/exportation: Allowed for specific purposes (e.g., trade fairs, repairs, technology transfer) without duty/tax, subject to re-export/import.
   • Inward/outward processing: Duty-free temporary import/export for manufacturing or repair, with compensating products subject to duty if not re-exported/imported on time.
   • Personal effects and non-commercial goods: May be duty-free within prescribed limits.
   • Postal goods: Subject to customs control and simplified procedures.
7. Prohibited and Restricted Goods
   • Prohibited goods → cannot be imported/exported/transited
   • Restricted goods → allowed only under specific conditions
8. Risk Management System
   • Goods are categorized into risk levels
   • Enables:
   o Faster clearance for low-risk goods
   o Strict control for high-risk goods
   • Includes post-clearance audit and compliance checks
9. Duty & Tax Valuation
   • Dutiable value based on transaction value (price actually paid or payable) plus certain costs (transport, insurance, packing, etc.).
   • Alternative methods: identical/similar goods, deductive value, computed value, fallback method.
   • Exchange rate determined by National Bank of Ethiopia on declaration date.
10. Tariff Classification & Origin Rules
    • Tariff classification per Customs Tariff Regulation.
    • Origin determined by last substantial transformation.
11. Customs Warehousing
    • Temporary storage, bonded warehouses, and government warehouses.
    • Goods must be removed within specified time limits; otherwise transferred to government warehouse.
    • Warehouse operator obligations: record keeping, segregation, security, reporting.
12. Security & Guarantees
    • Security may be required for deferred payment, transit, temporary importation, etc.
    • Security amount based on estimated duties/taxes.
13. Post-clearance Audit, Refund, Remission
    • Audits within 5 years of declaration acceptance.
    • Refund for overcharged duties/taxes if claimed within 1 year.
    • Remission for damaged/destroyed goods under customs control (not due to importer’s fault).
14. Enforcement Powers
    • Customs officers can search persons, vehicles, premises; open packages; seize goods/documents.
    • Physical search by same sex, with dignity; internal search by medical professional with court order.
    • Seized goods may be released against security under certain conditions.
    • Forfeiture of contraband, concealed goods (if concealed value >50% of declared value), prohibited goods.
15. Offences & Penalties
    • Custom offenses include smuggling, false declarations, Concealment of goods, fraudulent practices
    • Penalty may include
    o Administrative penalties: Fines for minor infractions (e.g., failure to return samples, carrier obligations).
    o Criminal offences: Contraband, forgery, obstruction, misuse of duty-free/temporarily imported goods, unauthorized use of electronic system.
    o Penalties include rigorous imprisonment (e.g., 5–10 years for contraband) and heavy fines (e.g., 50,000–200,000 Birr).
16. Appeals & Dispute Resolution
    • Internal complaint review within Authority.
    • Appeal to Tax Appeal Commission (duties/taxes must be paid first).
    • Further appeal to Federal High Court on error of law.
17. Miscellaneous
    • Establishment of customs warehouses (public/private) with permit.
    • Repeals Customs Proclamation No. 622/2009.
18. Effective Date: 9 December 2014