Nearly half of customs clearing agents operating in the country have their permits suspended by the Ethiopian Customs Commission (ECC), enforcing compliance with a directive it issued two years ago.

The temporary suspension of 482 clearing agents was made last week, tightening requirements that transitors conduct business with at least one professional other than themselves, while companies are required to hire a minimum of two.

A little over 1,000 customs clearing agents are registered, working on import and export customs declarations and facilitating the payment of import duties, VAT and excise tax. Individual agents and companies also have to present rental agreements authenticated by the Documents Authentication & Registration Service.

The requirements are more relaxed than the previous rules, says Filagot Bedane, legal advisor for the customs compliance division at the Commission.

The preceding directive compels individual transitors to hire at least three professionals, though never enforced. For permit renewal, individual agents and companies have to register at the Ministry of Trade & Regional Integration (MoTRI) and acquire trade licenses. Two years ago, the Ministry significantly reduced the types of businesses required to present certificates of competency from various federal regulatory bodies to acquire a trade license.

Previously, the requirements applied to 52 ventures, including the customs clearing business, but that number has been lowered to 10.

Most recently, the Commission called clearing agents to renew their permits on November 22 last year, almost three months past the designated renewal period, citing security issues in the country that resulted in the closure of its branches.

“Two of our branch offices in the Amhara and Tigray regions have been closed,” said Filagot. “The one in Tigray remains closed."

The Commission runs 16 branch offices and employs close to 8,000.

Agents can also renew their permits within a month after the deadline though charged penalties for doing so. Data from the Commission shows 57 clearing agents had registered in January after paying the fine. That brought the total number of agents and companies renewed permits to a little above 600.

The Ethiopian Customs Clearing Agents Professional Association, comprising over 350 customs clearing agents and companies, pleaded with the Commission to loosen some of the requirements by amending the two-year-old directive governing the registration and licensing of customs agents. The lobby group claims its members cannot afford to hire more staff, especially now that the import-export business has declined. According to industry players, the gross monthly salary of customs clearing agents is between 20,000 and 30,000 Br.

The Commission declined the Association’s requests.

"We've provided them with ample time," said Filagot. "It's time to enforce the directive fully."

Yohannes Hailemairmam has worked as transitor for more than 15 years. He is among those that have had their permits suspended. Yohannes says he plans not to renew it unless the authorities loosen the requirements.