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This is to better facilitate trade and ensure improved tax compliance.
The tax body wants importers to abide by the government directive restricting the warehousing of particular goods in customs-bonded warehouses.
“URA is here to facilitate business, so our aim is to make sure that there is a continuous flow of goods without any disturbance. We want to streamline and improve our warehousing regime by removing some goods from the warehousing regime,” said Mutebi.
“Some of these goods take a long time to clear, others are locally produced here in Uganda and we are already in surplus. So, if anyone is importing, we believe that this person can actually pay at the port.”
In April 2023, the Commissioner of Customs Department Abel Kagumire informed the public of the need to implement the government directive. This is on the restriction of warehousing of wheat, mobile devices and phones.
Tiles, marble and granite of all kinds, lubricants, automotive batteries, toiletries and cosmetic products. Spaghetti and pasta, and flavors for soft drinks. These were to stop being warehoused by June 1, 2023.
“Following a request by traders, the implementation was postponed until December 31, 2023. The importers claimed that some of their goods were in transit and that they needed time to prepare for the new change, which was granted by the URA,” Mutebi explained.
Mutebi also noted that the majority of the restricted goods are locally produced in Uganda. This explains the need to protect the growth of domestic industries and promote import substitution.
He encouraged traders to adhere to what was agreed upon in May last year. This was during URA’s engagement with importers.
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