Importers Beware: URA’s Deadline Extension for Warehouse Directive
Uganda Revenue Authority clarified the government’s directive on restricting specific goods in customs-bonded warehouses. The focus is on protecting local industries, and adherence to agreements with importers is encouraged for fair implementation.
The Uganda Revenue Authority wishes to provide clarification regarding the government directive that imposes restrictions on the warehousing of specific goods in customs-bonded warehouses. Speaking at a press conference held at URA headquarters in Nakawa, Acting Assistant Commissioner for Public and Corporate Affairs, Edrine Mutebi, stated that URA is undertaking measures to streamline its warehousing practices, aiming to enhance trade facilitation and ensure heightened tax compliance.
Mutebi emphasized URA’s commitment to facilitating business operations, aiming for an uninterrupted flow of goods. The objective is to refine and optimize the warehousing system by excluding certain items from it. Some of these goods encounter prolonged clearance times, while others are domestically produced in surplus. Importers are encouraged to fulfill their tax obligations at the port to expedite the process.
In April 2023, Customs Department Commissioner Abel Kagumire communicated the government’s directive to cease warehousing wheat, mobile devices, phones, tiles, marble, granite, lubricants, automotive batteries, toiletries, cosmetic products, spaghetti, pasta, and soft drink flavours by June 1, 2023. However, responding to traders’ requests, the implementation was extended to December 31, 2023, acknowledging transit situations and the necessity for preparation.
Acting Assistant Commissioner Mutebi underscored that many of the restricted goods are locally manufactured in Uganda. This restriction is intended to safeguard the growth of domestic industries and promote import substitution. Importers are urged to adhere to the agreements reached during URA’s engagement with them in May of the previous year, emphasizing the government’s considerate and fair approach when issuing such directives.
