The House of Peoples’ Representatives (HoPR) has officially approved a major amendment to the Customs Proclamation, granting law enforcement and border authorities the power to permanently confiscate and forfeit any vehicle used in the transportation of contraband goods. The legislative update was passed during the HoPR’s regular session following a comprehensive review and endorsement of a report submitted by the Standing Committee on Plan, Budget, and Finance Affairs, signaling a sharp escalation in the government’s crackdown on illicit trade networks.
Lawmakers stated that the amendment became an urgent necessity after the previous statutory penalty of 100,000 Ethiopian Birr (Br) failed to deter smuggling operations. According to committee findings, major illicit trade networks had begun treating the flat fine as a routine, predictable cost of doing business rather than a punitive deterrent. The legislative overhaul arrives amid mounting governmental concern over the economic toll of illicit trade and the increasing sophistication of smuggling networks operating across the country’s borders.
Under the previous framework of Customs Proclamation No. 859/2014, a significant legal loophole allowed vehicle owners who claimed no direct involvement in a smuggling operation to reclaim their impounded property simply by paying the 100,000 Br fine, thereby avoiding total asset forfeiture. Customs authorities successfully argued that this specific provision created a severe vulnerability, allowing smuggling syndicates to repeatedly deploy the same transport fleets with minimal financial risk. Under the newly amended law, this loophole is closed, and any vehicle caught transporting contraband goods above a value threshold set by the Ministry of Finance will be subject to direct confiscation and government forfeiture, regardless of the owner’s claimed awareness.
Furthermore, the new enforcement mandates target vehicles that have been specifically manufactured, altered, or retrofitted with hidden compartments designed to conceal illegal cargo, making them subject to automatic, mandatory confiscation. The proclamation highlights that smugglers have increasingly turned to advanced operational tactics to evade law enforcement. These tactics include utilizing high-speed, off-road vehicles to bypass traditional border checkpoints, constructing specialized hidden compartments to evade basic physical inspections, and even driving vehicles reinforced with bulletproof materials to resist law enforcement interventions.
While the amendment sharply escalates penalties for illicit trade to safeguard national revenues, officials note it is part of a broader customs reform. The overarching legislative package aims to balance stricter border security with enhanced trade facilitation, simultaneously streamlining customs operations and clearing times for lawful traders.













