After finishing an undergraduate programme at the Addis Abeba University seven years ago, 28-year-old Zerihun (whose last name is withheld upon request) had little in the way of a promising career in his field: sociology. Born and raised in Addis Abeba, Zerihun eked out a living working as a schoolteacher, earning around 3,500 Br a month. He served as an instructor for three years before deciding on a major pivot.

He wanted to open a small clothing shop in the city, with 30,000 Br in savings and borrowed money from relatives. Zerihun's plan changed soon as his sister and a few people around convinced him it would be much more rewarding to try his luck in the thriving, yet clandestine, 'luggage trade'. His sister, in particular, was a significant influence as she had been involved in the trade for a few years at that point.

Four years ago, Zerihun made his first trip to Dubai, the most common destination for his newfound trade line. He bought a round-trip ticket for around 9,000 Br and exchanged his remaining savings into dollars to buy items he thought would be in demand here. He spent three nights in Dubai and returned with two bags full of clothes and other goods.

“I remember I only took five pieces of my own clothing when I made the trip," he said.

It took him a few months to sell off his goods, but he ended up netting 10,000 Br once he did. Zerihun had created a valuable trade network, developing connections with Dubai's suppliers, traders, buyers, and hoteliers. He has made 15 trips overseas since, mostly to Dubai, although he also travelled to Bangkok, Thailand, on a few occasions. He made up to 40,000 Br in profits for every trip, bringing in everything from clothes and laptops to television sets and mobile phones.

“Clothes are the easiest and less risky,” he told Fortune.

Zerihun is one of many traders who have been taking advantage of a directive issued by the Ministry of Finance four years ago, exempting airline passengers from paying duties on personal items brought in for non-trade purposes. But the rule opened the opportunity for illicit trade. People like Zerihun would make regular trips to the UAE, Thailand and Turkey to buy relatively inexpensive items, usually clothing, and sell them here.

These 'luggage traders' would unpack and remove the tags from the goods they bought abroad to pass them off as used or personal items. It is a well-recognised scheme to avoid paying duties at Addis Abeba Bole International Airport.

This came to an abrupt end last week after the authorities announced a decision to suspend the right of travellers to bring such items without paying duties. A circular was issued by the Customs Commission, emphasising items such as clothing and shoes, the fast-moving goods in the town's burgeoning boutique circle. Though the decision exempts travellers returning after more than a month, tourists and diplomats, the authorities would subject travellers with non-personal items to penalties. Repeat offenders could face criminal charges, too.

The authorities say they were forced to clamp down on the illicit luggage trading partly due to pressure from businesses who import these items paying duties and tax. They could not compete with the luggage traders, although spending on clothing and shoes is the second-highest household expenditure in Ethiopia.

Ethiopia has lately become a destination for global apparel brands such as Calvin Klein, Tommy Hilfiger and H&M. But these are companies not allowed to sell in the local market, where import supplies 79pc of clothing and 56pc of shoes. These constituted close to two percent of the 14 billion dollars Ethiopia imported last year, but the illicit trade in clothing and shoes is estimated to have reached 48pc of the total market value.

Zerihun Assefa, head of the compliance division at the Customs Commission, says the latest move by the authorities stemmed partly from the persistent complaints filed by legitimate traders that import clothing and electronics, paying taxes and duties. They protested that the illiterate luggage trading was pushing them out of business.

Abdurahman Mohammed is one of these legitimate traders. An owner and manager of an importing company that bears his name, Abdurahman primarily deals in clothing sourced from Dubai or Bangkok, paying duties, which would sometimes add up to one dollar an item. He saw profit margins waning over the last three years, following the Ministry allowing travellers to bring personal belongings. Others in a similar situation resorted to getting involved in the informal and illicit trade to survive.

The thriving illicit trade was not only hurting his business but the government as well.

“The government knew the impact and how it was affecting the legitimate business,” Abdurahman said. "Yet, it was ignoring it."

It appears the growing volume of illicit trade has reached a point where it can no longer be ignored.

Customs authorities at the Bole International Airport saw close to 224 million Br and nearly 180 million Br worth of contraband imports and exports, respectively, last year. It grew to around 125 million Br and 30 million Br for the first four months of this fiscal year. The majority of these items were clothing and electronics.

The customs office turned a blind eye to most of the contraband trade out of respect for passengers and the airport's reputation, according to Zerihun. However, there was a serious problem.