Prime
URA blames rising penalties on untrained clearing agents
URA says there is need to train clearing and forwarding agents to reduce penalties resulting from skill-related errors. Photo / File
What you need to know:
- URA now collects more than Shs10b annually as penalties from traders because of under-declaration of cargo, relating to poor commodity identification, quantities and other offenses under the East African Customs Management Act
Uganda Revenue Authority (URA) has said it now collects about Shs10b in penalties due to an increase in under-declaration, which results from errors made by untrained clearing and forwarding agents.
Speaking during a pass out of 190 students, who graduated with the East African Customs Freight Forwarding Practicing Certificate, in Kampala, Mr Asadu Kisitu Kigozi, the URA acting commissioner customs, said they now collect more than Shs10b annually as penalties from traders because of under declaration of cargo, relating to poor commodity identification, quantities and other offences under the East African Customs Management Act.
“With such amounts of money, we need to enhance the skills and knowledge of clearing and forwarding agents as they interact with URA. Innovations come up every day so we must train [clearing and forwarding agents] to ensure that they provide worthy services,” he said, noting that there is need for more professionalism in the sector.
The East African Customs Freight Forwarding Practicing Certificate equips students with the necessary knowledge to practice freight forwarding within URA jurisdiction.
This was the 14th graduation that has seen more than 2,500 go through the East African Customs Freight Forwarding Practicing Certificate course.
Self-regulation
Mr Kisitu also urged clearing and forwarding agents to get into the practice of self-regulation if the sector is to meet internationally accepted standards.
“The challenges are many in the industry but the most important is that the business community trusts us with goods and money. Once we have professional people and have integrity, the industry will move faster,” he said, noting that it would also reduce the amount of time URA spends on checking and confirming goods, which would increase turnover and turnaround.
Mr Charles Mwebembezi, the Uganda Freight Forwarders Association chairperson, said the East African Customs Freight Forwarding Practicing Certificate seeks to promote professionalism and integrity in an industry that is central to trade.
“We have trained over 2,539. This is an improvement in professionalism, agents, and tax collection and such training is a contributory factor,” he said, noting the industry deals with huge volumes of money and cargo, which calls for improved professionalism.
Mr Philippe Ndikumana, the Federation of East African Freight Forwarders Associations president, said whereas the performance of clearing and forwarding agents has improved to 19 percent between 2018 and 2022, the target is to achieve 100 percent, which shall be achieved through professionalism.
