
Radar | Nov 07,2020
Dec 17 , 2022
By BERSABEH GEBRE ( FORTUNE STAFF WRITER )
Exporters, transporters and trading companies are required to apply for export permits from the Ministry of Trade & Regional Integration (MoTRI), retracting the mandate from regional trade bureaus, a move meant to fight a growing contraband trade. Exporters will have to show valid documents at all checkpoints of the Ethiopian Customs Commission before crossing borders.
The Commission threatened to stop exports without permits obtained from the Ministry, making permits issued by regional states invalid "due to the alarming rise of contraband." The Commission seized contraband goods valued at over half a billion Birr in the first quarter of the budget year. Signed by the Legal Commissioner, Mulegeta Beyene, the decision came following a three-day meeting between officials from the two federal institutions. The export permits granted by weredas and regional bureaus have been misused to encourage contraband trade.
Regional trade bureaus were mandated to issue permits to the commodity exchange warehouses. According to Mesfin Abebe, advisor at the Ministry, agricultural products such as oils, pulses, and khat, as well as livestock earning large-share of foreign currency were prone to contraband trade. Spices, oilseeds and pulse exporters brought a little over half a billion dollars in export earnings last year, data from the central bank disclosed.
The amount represents one-fourth of the total revenues generated from exported items but dropped by eight percent from the previous year's earnings.
Mesfin believes that contraband trade is the primary cause of the decline in export revenues. After confiscating a stockpile of 94,000tns from exporters' warehouses, officials set a deadline to auction them by the end of this month.
Atelaw Alemu (PhD), a lecturer at Addis Abeba University's School of Business & Economics, says that contraband is not the only factor in dawdling foreign currency. Insufficient production and lower offers from international buyers should also be addressed.
The export of goods brought in 4.12 billion dollars last year, nearly 14pc higher than revenues generated the year before. Agricultural commodities account for close to three-quarters of the revenues. Coffee remains the most valuable export item, generating 1.4 billion dollars.
Togochale town borders Somaliland, 65Km from the seat of the Somali Regional State, Jigjiga. It is where livestock contraband trade is exacerbated, with 162 cattle intercepted by inspectors near the border last year, disclosed Mesfin.
Eastern Hararege Zone Trade Secretariat Office, Ziyad Kedir, is unaware of the notice but awaits federal mandates to issue regional permits for fruits, vegetables and khat. These commodities used to be traded across borders without permits, with farmers required to present land-holding certificates if the supply amount exceeds four kilograms. Close to 37 exporters were registered to buy from suppliers in the zone.
Oromia Regional State is the largest Khat producer, with 1.3 million quintals annual production, followed by the Southwestern and Sidama regional states.
Dejen Gebre Meskel General Export has been in business for the past 12 years. It ships livestock, khat, and oilseeds using freight trucks into China and Europe. The Operation Manager, Bethlehem Solomon, said they are already getting permits from the Ministry and will not see any changes with the new rule issued two weeks ago.
Ziyad expects the permits from the regional bureau will be issued in the coming month. "This also aims to prevent contraband," says Ziyad. His office has the mandate to patrol six checkpoints in the zone.
Exporters pay one Birr for a permit, valid for one-way passage to cargo shipments.
"It's not much, but the process takes time," said Ziyad.
PUBLISHED ON
Dec 17,2022 [ VOL
23 , NO
1181]
Radar | Oct 23,2018
Fortune News | Jun 04,2022
Fortune News | Sep 18,2022
Radar | May 11,2019
Fortune News | May 31,2020
Dec 24 , 2022
Biniam Mikru heads the department of cabinet affairs under Mayor Adanech Abiebie. But...
Jul 2 , 2022 . By RUTH TAYE
On a rainy afternoon last week, a coffee processing facility in the capital's Akaki-Qality District was abuzz with activ...
Nov 27 , 2021
Against my will, I have witnessed the most terrible defeat of reason and the most sa...
Nov 13 , 2021
Plans and reality do not always gel. They rarely do in a fast-moving world. Every act...
Jan 21 , 2023
Eyob Tekalign, state minister for Finance, took to social media platforms last week t...
Jan 14 , 2023
The longing for normalcy and a semblance of individual and collective security in Eth...
Jan 7 , 2023
The hallmark of Ethiopia's contemporary leaders could be a fascination with grandeur...
Dec 31 , 2022
A change of guards in 2018 gave Ethiopians hope for better circumstances from the pre...