These days, the ever-increasing contraband and illicit trade have become major challenges to governments in ensuring the necessary revenue needed for development. As contraband has an adverse effect on the socio-economic development of a country, the responsibility of preventing it is upon citizens.
In Ethiopia, contraband trade began long ago. Currently, the seizure of contraband becomes an everyday occurrence. The frequently seized goods smuggled into the country include electronics, garments, perfumes, cosmetics, habit forming drugs, guns, and others. Sudan, Eritrea, Kenya, and Djibouti are identified to be the main transit countries of these goods.
The government has recently formed a national task force in a bid to tackle the ever-growing contraband and illicit trade in the country.
Chaired by Deputy Prime Minister Demeke Mekonnen, the national task force has 28 members drawn from Ministers of Agriculture, Health, Trade and Industry, Mines and Petroleum, Finance, National Bank of Ethiopia, representatives from the Office of the Attorney General, Police Commission, the National Intelligence and Security Service and heads of the States.
Aiming to involve all administration at each level, the task force will have an integrated structure from federal to regional administrative units, including zones, towns, woredas, kebeles. The state presidents will lead the state councils and have bureau heads as members in charge of the operations of zones, towns, woredas.
Speaking on the national campaign against contraband and illicit trade, Deputy Prime Minister Demeke Mekonnen said that contraband is becoming an issue of sovereignty and as it has been posing adverse effects on the national economy, joint efforts and commitment of stakeholders at all levels is crucial to combat it.
According to Deputy Prime Minister, the formation of the task force is one of the government’s two prioritized agendas in the fiscal year, adding that the government will vigorously work on fighting contraband trade coupled with creating job opportunities million citizens.
“We should collectively act now to prevent contraband and illicit trade as it becomes a bottleneck to our development,” he said. With the presence of contraband, thinking of free market and the attraction of foreign direct investment would be difficult. And joining the World Trade Organization (WTO) would also be a mere wish, he pointed out.
The government is working to combating contraband as a main agenda in the year 2019/20. Various activities have been carried out to curb contraband and illicit trade thereby creating an environment for legal businesses. Astonishing results have been achieved. However, the basic problem has not yet been solved due to lack of coordination among leaders and stakeholders at each level, Adanech Abebe, Minister of Revenues said.
According to the Minster, introducing a national campaign for anti-contraband and illicit trade will help to raise awareness of the public regarding the adverse effect of contraband and illicit trade on the overall development of the country.
As to her, controlling the scenario needs commitment and dedication to work closely with stakeholders. Most of all, it needs the enforcement of law across the country. Efforts have also been made to take corrective measures against offenders and co-offenders. To realize the national campaign, leaders have a role in taking responsibility, Adanech noted.
Debella Kebeta, Customs Commissioner on his part said more than 1.6 billion Birr worth of goods were confiscated in the previous year. Illicit guns’ trade is also becoming a potential threat to the country’s security and overall economic development.
Addis Ababa Airport, Hawassa, Jigjiga, Mille Moyale are identified as routes most contraband trades conveyed through. Over the year, more than 555 million Birr cost goods were seized in the aforementioned routes alone.
Contraband goods that consumers buy on the black market are estimated to be worth millions of Birr annually. This undermines the ability of businessmen to make and pay tax. And finally, it also reduces national revenue.
Customs authority has also recognized external factors that have contributed to the expansion of contraband trade in the country. To prevent this, it is working with stakeholder’s stinging national anti-contraband and illicit trade campaign agenda.
Debella noted that 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, irresponsive custom officers, and local security forces are also involving in the contraband.
The Federal Police, Customs Commission and Ministry of Revenue alone cannot achieve the task of apprehending smugglers and preventing contraband. Its success is heavily reliant on the active participation of citizens, it is noted.
Coordinated community activity is a guarantee for detection, apprehension, and punishment. This would be possible if every citizen in the country is a soldier in the fight against contraband and illicit trade. If each serves faithfully and resolutely the ease to control contraband trade will become successful.
Moreover, strengthening law enforcement as well as curbing contraband and illicit trade as the activity deprives tax revenue and hurts legitimate businesses at large. Enforcing federal, state and local law and regulatory agencies including trade policies is also important.
Blocking illegal channels of distribution, imposing more strict penalties for the violation of laws, and providing additional tools for law enforcement is also vital.
The Ethiopian Herald August 15, 2019
BY TSEGAYE TILAHUN
