The customs regime is edging toward its biggest legal overhaul in more than a decade, as federal officials seek to recast a system criticised as too rigid for traders and too weak against contraband.

A draft amendment to the customs law would grant the Ethiopian Customs Commission (ECC) the power to seize vehicles used to transport illegal goods, while also offering relief to importers and exporters in the formal system. The proposal, led by Commissioner Debele Kebeta, comes as the country seeks to comply with international trade rules and standards while negotiating entry into the World Trade Organisation (WTO), but it is contending with a customs system that many believe has grown outdated, inconsistent and burdensome.

The existing law took effect nearly 12 years ago and, apart from minor amendments in 2019, has remained largely unchanged. Customs officials argue that the law no longer reflects the direction of the economy or the demands of cross-border commerce.

“The law didn’t support the growth of manufacturing or promote lawful trade and investment,” said Tadele Tebek, a senior expert at the Commission’s Manufacturing & Export Trade Directorate. “Some provisions no longer reflect the realities of international trade and are inconsistent with global standards."

That push for alignment shapes the proposed changes, but the draft does not move in only one direction. Alongside tougher enforcement provisions, it introduces flexibilities meant to ease pressure on traders. Importers would, for the first time, be allowed to request the partial release of goods when they cannot settle all taxes and duties at once. Temporary customs storage periods would also be extended to 45 days for goods arriving by sea or land and to one month for air shipments, giving businesses more time to overcome administrative and financial constraints.

Another change would alter how customs values imported goods. Rather than relying on the exchange rate in effect at the time of registration, officials would use the official rate set by the National Bank of Ethiopia (NBE) on the day a declaration is submitted. The change may appear technical, but for businesses operating under volatile currency conditions, the timing of valuation can directly affect costs.

The amendment also softens rules on country-of-origin labelling. Under the current system, goods that arrive without proper labelling can be sent back, a costly and disruptive penalty. The new proposal would allow such breaches to be handled through administrative measures, reducing interruptions in trade flows and limiting losses for businesses affected by procedural defects.

Among importers and exporters, the reaction has been favourable, though restrained. For many businesses, parts of the draft do not feel entirely new. Some practices had already been applied informally and are now being written into law, while other vague or unstated procedures are being formally defined. In other areas, strict provisions have been relaxed. The reform formalises what already existed while attempting to correct some of its harsher edges.

For critics, that leaves deeper structural flaws untouched.

Solomon Gebreyesus, an importer of engineering materials, warned against overstating the importance of the changes.