Local manufacturers are facing disruptions due to a recent customs regulation put forth a month ago. Ethiopian Customs Commission now requires approval for all imports of their non-raw materials brought in under franco valuta arrangements exclusively at the headquarter in Addis Abeba. This has created a bottleneck, with factories experiencing delays in importing essential equipment, spare parts, and chemicals and accruing demurrage charges on stranded containers.

Commissioner Debele Kabeta prohibited branch offices from independently clearing these items a month ago, without the consent of the deputy commissioner of operations placed at the headquarters on Ras Biru St.

Four containers of manufacturers based in the Hawassa Industrial Park have been stranded at the Moyale Customs Branch Office for the past three weeks. Hibret Lema, head of the Investors Association at the Park, revealed the struggle to get permits from the main office while paying hefty demurrage fees of 250 dollars daily as they await.

"I fear that some companies will halt operations if the deadlock persists," he expressed concerns.

Hibret observed several companies unable to obtain clearances for spare parts imported through the DHL service, crucial for meeting production deadlines or satisfying international buyers.

"The service is used for literal emergencies," he said.

A requirement for a support letter from the Ethiopian Investment Commission adds another layer of bureaucracy to the import process, causing delays of up to a week. The Association representing 23 companies pleaded for a reconsideration of the practice.

One of the companies within the Hawassa Industrial Park, Pan Afric Global Plc, is directly affected. Werqaferahu Mengesha, branch manager of Pan Afric Global Plc's Hawassa operations, said a couple of 40ft containers containing lubricants and accessories became stranded at the customs branch offices due to the new rules.

"They need it for functional machinery," he said.

The regulation targets imports happening under franco valuta arrangements, where importers use their foreign currency, not relying on the central bank's allocation. It aims to centralise operations scattered across branch offices.