The Need to prevent Contraband in Ethiopia
Introduction
Contraband is an illicit act which has harmful effect on the socioeconomic
development of a country. To avert the adverse effects of contraband
most countries of the world take preventive measures. In Ethiopia
the responsibility to prevent contraband rests with the Ethiopian
Revenues and Customs Authority (ERCA). Therefore this article gives
an overview of the existing situation of contraband in our country,
its adverse effects on the economic, political and cultural life
of our society, the strategies employed by ERCA to prevent it.
1. The definition of contraband
Understanding of contraband requires knowledge of its definition
and usage in various contexts. The English word contraband, reported
in English since 1529, denotes any item, which, relating to its
nature is illegal to be possessed, sold et cetera. The term is derived
from Latin contra "against" + Middle Latin bannum "a
command." Numerous treaties defining contraband have been concluded
among nations. However, the term is commonly (and in legal language)
used for goods that have been imported or exported illegally or
for smuggled goods that are imported into or exported from a country
in violation of its laws. The term is also applied to any property
that is illegal to produce or possess. The word is also used as
an adjective, again meaning 'distributed or sold illicitly'. The
person who traded in contraband is known as smuggler.
2. The existing situation of contraband and the challenges
facing ERCA today.
Contraband trade began in Ethiopia long time ago. Since then smugglers
do not hesitate to smuggle goods into and out of Ethiopia and they
are still doing it in spite of all laws and regulations. The seizure
of contraband goods has become an everyday occurrence. Almost daily,
federal policemen and other law enforcement bodies mandated to seize
contraband goods intercept many criminals involved in smuggling.
The frequently seized contraband goods smuggled into the country
includes manufactured goods such as electronic and electrical goods,
garments of various kinds, perfumes, cosmetics, pornography, habit
forming drugs, armaments and others. Sudan, Eritrea, Kenya, and
Djibouti are identified to be the main sources of these goods.
Coffee, which is the country’s chief export item, a multitude
of livestock, cereals of various types, animal skins, fuel and others
are some of the goods smuggled out of the country. These goods are
smuggled to the aforementioned neighboring countries.
The seized goods have no official entry point in the country, do
not have customs document or prior approval to enter into or depart
from our country. The smugglers traffic goods of various kinds into
and out of the country illegally without having state issued permits,
license or registration. In general, they violate the law that governs
the import /export procedure and thus avoid the payment of all applicable
taxes for the importation or exportation of goods.
Various factors cause contraband trade. Smugglers deliberately
move almost anything across the border (1) to avoid taxes and to
secure illegal competitive advantage, (2) to avoid customs checkpoints
where goods and their documents are examined. The checkpoints do
so just to ensure that goods are transported according to laws and
directives. (3) Smugglers claim that they involve in contraband
trade in order to make a living and to escape from the unemployment
prevailed in the country. (4) Others involve in contraband trade
as acts of political defiance. Irresponsible and anti peace elements
may smuggle guns and hand grenades into the country in order to
commit crime, to damage public infrastructure and to create political
instability in the country or to cause an atmosphere of social unrest.
(5) Consumer’s willingness to buy goods on the black market
is the other factor that drives smugglers. Smuggled goods are sold
at a low price and this has made thousands of poor people prefer
to buy smuggled goods than legally imported goods. Contraband goods
that consumers buy on the black market are estimated to be worth
millions of birr annually. This in turn undermines the ability of
businessmen to make profit and pay tax. (6)ERCA has also recognized
that external factors like political instability, social unrest
and economic crisis in Somalia have contributed to the expansion
of contraband trade in our country.
Smuggling method of contraband goods vary: sometimes smuggled goods
are conveyed across the border on foot or on pack animals. Some
are trafficked hidden within areas such as automobile tires, doors,
fenders, bumpers, fuel tanks, and in other secret compartments of
trucks, and trains. Some contraband goods are occasionally smuggled
into and out of the country stuck in containers with other legal
shipments allowed to be imported or exported after fulfilling customs
formality. Drivers of trucks which transport legal shipments stop
their vehicle en route and load illegal goods in the container of
legal goods. Smugglers are also assisted by some dishonest customs
officers at check points and local security forces. Smugglers bribe
them and enter or take their goods into or out of the country illegally.
To convey their goods, smugglers cross the land borders of the
country between Somalia, Sudan, Djibouti, Kenya, and Eritrea, and
use routes that are not under the control of the federal police.
The large part of the Ethiopian border encompasses extensive lowland
areas and can never be fully controlled by the federal police. As
a result, smugglers can easily cross the border with their substantial
smuggled goods. It is estimated that contraband goods worth millions
of birr enter Ethiopia annually via these borders. The smugglers,
experienced in running contraband goods and adept at traversing
the country's border, are canny in looking for other devious routes
when their way is blocked by federal policemen. They are also violent
enough to intimidate or kill anyone standing in their way. Especially,
smugglers in areas like Ginir and Negelle use rifles and other hand
guns like revolvers and pistols and are well known for their ability
to cause tension or an atmosphere of social unrest in those areas.
As a result, many elements of the Ethiopian law enforcement community
have lost their priceless lives in the fight against smugglers.
Using the above mentioned devious devices/methods, smugglers deliver
contraband goods to their secret stores and make them available
for selling and distribution. Some towns of the country like Gigiga,
Harer, Diredawa, Gedamaitu and Nazreith are identified to be major
centers for storing and trading contraband goods. Addis Ababa, the
capital city of the country, is also the market place for both legally
or illegally imported goods. Presently, it has become a commonplace
to see the selling of contraband goods at a street level in Addis
Ababa and other major towns of the country by the evening.
As the November 2009 paper on strategies to prevent contraband
stated, organized crime is deeply involved in trafficking contraband
goods especially in the Eastern, Southeastern and Northeastern Regions
of the country and these areas are identified as springboards for
smugglers.
4. How contraband affects us and the public as a whole and
what are its possible adverse effects.
4.1 The government loses revenue and as a result development
programs can be hampered.
The illegal trade in smuggled goods deprives governments of tax
revenue. When goods are conveyed secretly or illicitly into or out
of the country, without the payment of customs duty and taxes, the
government loses revenue of several million birr required to pay
for workers in civil and military institutions, build roads and
fund other government activities. The upshot or the eventual outcome
of the revenue lost is that it hampers development programs. Therefore
to make the development programs feasible and to finance them, the
government may be obliged to increase taxes. The burden of covering
these shortages falls on honest taxpayers which in turn lead to
higher prices of commodities. This in turn contributes for the growth
of black-markets or as the tax increase drive up the price of domestically
produced and imported goods, many consumers seek lower-priced goods
through a variety of alternative venues and channels, many of which
are illegal. This includes purchasing counterfeit, illegally imported,
untaxed, under-taxed and stolen goods.
Contraband trade also widens income inequality or the earnings
gap between the rich and the poor. Evading customs duties and taxes,
the smugglers become well off and are able to live quite extravagantly.
They amass wealth while the living standards for many stagnate.
Smugglers spend money that should have been available to the government:
a government who takes steps to achieve fair economic distribution
across the society.
4.2 The existing unemployment problem worsens as the country's
establishments go out of business because of contraband.
Our country is home to establishments (business organizations)
that provide customers with the goods and services they want. Our
industries, such as tyre, shoes, clothing etc factories are some
of our business organizations. These organizations came into business
after bringing together the labor force, capital and production
materials thereby creating employment opportunities for a large
number of citizens of the country. As we all know, these businesses
seek to make profit, that is, they aim to achieve revenues that
exceed the costs of operating the business. However, goods smuggled
into the country can create an adverse effect on their strive to
make profit. For instance by controlling the local market, thousands
of bales of clothing smuggled into the country can create serious
risk for domestic textile industry.
Not only domestic textile industries but also Importers of textile
are concerned about smuggling from abroad.
Therefore unless the smuggled goods that flow into the country
are curtailed, domestic industries, necessary to ensure national
growth and development, will be forced to go out of business and
to dismiss their workers thereby worsening the already existing
unemployment problem. In addition to this, the closure of these
factories may result in the dismissal of thousands of row material
producers for example cotton producer farmers from their work.
4.3 Smuggled in pornography and drugs corrupts moral virtue
and social order
According to the Electronic Concise Oxford Dictionary-Tenth Edition,
pornography is a printed or visual material intended to stimulate
sexual excitement. Pornography materials display of genitals and
show sex acts in an offensive way thereby eroding the moral values
of the society. In our country the importation of pornography is
prohibited for it is considered as a social evil and detrimental
to the notion of a good citizen. However, in spite of these prohibitions,
pornography materials that are en route to the country are seized
every time although there is lack of statistical evidence as to
the quantities seized. Additionally, the trafficking of Pornography
through non-traditional trade channels, specifically the Internet,
is a growing problem. and in response to this problem the Ethiopian
government has blocked pornography websites although complete control
is not yet possible.
Habit–forming dangerous drugs debase/demoralize the moral
senses of the youth and others who take illegal drugs for pleasure
or because of addiction and it also cause them a wave of sickness
when they are unable to continue taking it. The poor quality smuggled
goods can produce health problem in the society. In their attempt
to control drug trafficking, federal policemen catch people and
travelers who bring illegal drugs into the country.
4.4 Smuggled in armaments intensify crime and antisocial
behavior
Antisocial behavior is conduct that disrupts society, or display
disdain or hostility to it. For instance, committing crime is antisocial
behavior. Such kind of behavior can be intensified in our society
by body of persons who used smuggled in armaments for violence activities
calculated to cause death, robbery, burglary, rape and other crimes.
Therefore smuggling armaments into the country weakens the struggle
to maintain peace and order in the society.
Photo of damaged buses and mini buses due to terrorist acts
4.5 We lose our cultural heritage if goods are smuggled
out of the country.
Our cultural heritages which have aesthetic, historical and economical
importance are nowadays threatened by smugglers who move them out
of the country. Much of our country's priceless cultural heritage
will be vanished forever with in a short period of time if they
are not protected from theft and smuggling. Our cultural heritages
should be enriched and preserved in a museum so that they can be
means of tourist attraction. They can be used for the purposes of
public education and for the advancement of knowledge if we care
for them, study, interpret, and exhibit them.
4.6 Goods smuggled out of the country hurt foreign exchange
earnings
Multimillion dollars worth of goods are smuggled out of the country
every month all year long. Coffee, the country's chief export item,
precious metals as gold and silver, pulse and livestock are some
of the goods that are smuggled out of the country. Some of these
products of the country are seized while being smuggled out of the
country to foreign countries.
However, as complete control of smuggled goods is impossible, some
of the country's product escape customs detection and move away
illegally from the country thereby worsening the shortage of foreign
exchange. The upshot of this situation is that it hampers our country's
long range development program, which is intended to transform our
agricultural economy to partially industrial one. Additionally,
purchases of many capital goods needed for the growth and development
of our country will be restricted.
In brief, goods smuggled into or out of our country have an adverse
effect on the economical, political and cultural life of our society
and for this very reason our country prevents contraband. It enforces
laws to safeguard its society from the adverse effects of contraband
and has designed a strategy for the protection of its society from
the adverse effects of contraband.
5. Strategy to prevent contraband
5.1 Working in collaboration with the community
Contraband prevention strategy involving a wide range
of actors- government, regional and local administrators, and the
community has been adopted recently. The government is working on
a new strategy to curtail contraband. Based on this strategy the government
has disbanded customs police, the former agent responsible to prevent
contraband, and replaced it by the federal police as of July 2008.
In addition to this, the government has amended customs and tax laws.
This amendment has helped to streamline taxation procedure and to
empower the federal police to prevent contraband. As it is believed
that federal police can’t carry the burden of preventing contraband
alone, working with regional and local administrators, and the community
has become necessary. Before involving in the activity of preventing
contraband, both the administrators and their community are advised
of the adverse effects of contraband and the need to stand against
it. As a result of the active participation of them in fighting against
contraband, the volume of contraband goods that enters for example
into Diredawa via Shinile Zone has decreased. Other regional administrators
have also reached an agreement to work with the federal police so
that contraband trade can decrease at a national level.
5.2. Educating the public
Public education and enlightenment is part of the strategy
to prevent contraband. ERCA believes that the public should be made
to have greater knowledge and understanding to the adverse effects
of contraband trade. Many citizens in the Eastern and other parts
of the country unknowingly aid and abet the smugglers. Therefore,
providing abettors and potential smugglers with education is necessary
to infuse in the hearts and minds of citizens the necessity for proper
respect of customs law and to let them stand against contraband. To
meet this objective ERCA established the Taxpayers Education and Communication
Directorate with a staff of 22 who deal with collection, organization
and dissemination of information to the general public. The directorate
awakens people to the need to protect their own country from the disastrous
effect of contraband. The directorate educates the society about the
proclamations, regulations, directives and operational systems of
customs using various media as F.M. Addis 97.1, Ethiopian Radio and
Television Agency. It has also begun posting information on customs
website (www.erca.gov.et) to make it available for customs webpage
readers throughout the world. Preparing a monthly newspaper, a number
of brochures on various topics and distributing them to the public
are the other medium the department has recently employed. To foster
understanding between ERCA and its public, the Taxpayers Education
and Communication Directorate sometimes writes articles both in Amharic
and English versions for the daily Ethiopian News Papers.
5.3. Allowing border trade
The other approach connected with the strategy to prevent contraband
is allowing border trade. By making border trade with the neighboring
countries: Somalia, Sudan, Kenya and Djibouti, the government has
tried to collect taxes. The border trade has been carried out in accordance
with the directives issued in 2000 and 2001 by the Ministry of Trade
and Industries. The objectives of the border trade are to let the
residents in the border area fulfill their demand for consumption
goods, to let them use border trade as a means of securing the necessities
of life, to decrease the activities of contraband and to promote legal
trade. By opening the door to border trade, the government anticipates
some smugglers will abandon their vicious practice and turn into productive
citizens of the country. Export items for border trade are typically
consisted of pulse, livestock such as goats, sheep, camel and others.
Import items are mainly food items, clothing that are usually dressed
by the residents of border area.
5.4. Using information obtained from the general
public
In a country that covers an area of 437, 600 sq.mi.
we cannot solely rely on ERCA’s 3000 staff and the federal police
staff to manage the treat of contraband. As a whole the society, the
general public need to be intolerant of smuggling and should report
their concern to the appropriate authority. Thankfully, many citizens
are so publicly spirited and ERCA regularly use information from the
public to identify smugglers and smuggled goods. This source of information
is so vital the ERCA sets aside a significant budget to pay rewards
to citizens who provide useful information. According to the information
from the Resource Directorate of ERCA, the annual operating budget
for informants in the year 2009/10 is 18 million birr. This figure
was 9 million birr in the previous budget year. Informants may report
their concerns regarding smuggling to the nearby offices of ERCA and
other law enforcement bodies such as federal police, regional state
body. The information may be provided in person, in writing, over
a telephone, or using other media.
5.5. Punishment as part of the strategy
Any person who is proven to be involved in contraband
trade may receive various sorts of punishments. According to sub article
1 of article 92 stipulated in proclamation no.622/ 2009 any person
who, in contravention of this proclamation or the other laws enforced
by ERCA, including regulations and directives issued there under,
imports or exports prohibited or restricted goods or without customs
clearance or illegally imports dully exported goods, without prejudice
to the forfeiture of the goods and equipments used in the commission
of the offence and the proceeds thereof, be punishable with fine equivalent
to the amount of the customs duties and taxes payable on the goods
and with rigorous imprisonment from 7 to 15 years.
According to sub article 2 of article 92, any person
who transports, stores, offers for sale or buys goods referred to
in sub article 1 of this article while being or ought to have been
aware of the illegality of their acquisition shall without prejudice
to the forfeiture of the goods and equipments used in the commission
of the offence and the proceeds thereof without affecting the right
of third parties who transacted in good faith, be punishable with
a fine equivalent to the amount of the customs duties and taxes payable
on the goods and with rigorous imprisonment from 7 to 15 years.
According to sub article 3 of article 92 stipulated
in proclamation 622/2009, where the offence is committed by the use
of force or by an organized group with the offender of the punishment
shall be, without prejudice to the forfeiture of the goods seized
and fine from 15 to 20 years, rigorous imprisonment.
6. Conclusion
The responsibility to fight against contraband should
not be left to the federal police and ERCA alone. Their efficiency
in apprehending smugglers and preventing contraband trade depends
upon the support of the entire community. Coordinated community activities
guarantee the certainty of detection, apprehension and punishment
of smugglers. This would be possible if every citizen in the country
is a soldier in the fight against smuggling. If each serves faithfully
and resolutely the smuggler will be cornered and conquered. Through
this method alone, the economic, political and cultural growth of
the country can be protected from contraband.
Federal policemen or other law enforcement bodies such
as federal and regional policemen, regional administrative bodies
should at all times unite against the smugglers of contraband trade
and shall be free from playful behaviors or they should not connive
with the smugglers to violate customs law. Effective contraband prevention
becomes absurd when corruption is allowed to seep into customs working
systems and the judiciary.Therefore we have to be resolute in our
effort to expose crime of corruption. The government is also expected
to use diplomatic relations as a strategy to prevent contraband goods
smuggled into the country from the rest of the world through the neighboring
countries.
Reference:-
- The November 2009 paper on strategy to prevent contraband;
Amharic Version
- proclamations No.622/2009, Customs Proclamation;
- Directives no.1/1995, 4/1992, 5/1993, 6/1997, issued by Ministry
of Trade and industry about boarder trade with the neighboring countries;
Amharic version,
Contributed by:- Abebe Hunachew
