Prime
URA issues new guidelines for rice importers
Some trucks with loaded with rice at Mutukula border post on November 1. Inset are other trucks loaded with rice that were impounded at the same border post last week. PHOTOS/ISSA ALIGA
What you need to know:
On October 31, more than 100 trucks of rice were intercepted at Customs Offices in Mutukula Town after URA officials claimed the rice was being imported from Pakistan, not Tanzania, and had to pay import duty, which most traders were trying to dodge
The Uganda Revenue Authority (URA) has issued new guidelines for all rice importers using Mutukula border point in Kyotera District.
On October 31, more than 100 trucks of rice were intercepted at Customs Offices in Mutukula Town after URA officials claimed the rice was being imported from Pakistan, not Tanzania, and had to pay import duty, which most traders were trying to dodge.
To avoid such scenarios, URA officials will now pick samples from all rice trucks entering Uganda through Mutukula border for laboratory analysis to establish the country of origin.
“Rice with conforming results (passed the test) shall be allowed to proceed after payment of withholding tax.Rice with non-conforming results (failed the test) will be required to pay import duty and withholding tax,” URA’s November 2 statement reads in part.
Also, URA wants all rice trucks to have a certificate of origin from Tanzanian farmers, an export permit from Tanzanian Bureau of Standards in addition to all other documents.
The new guidelines were issued following a meeting between URA officials and leaders of long-distance truck drivers and rice traders.
In the same meeting, it was resolved that import duty top-up on entries of cargo trucks in the Mutukula Customs yard be removed upon payment of a 6 percent withholding tax. It was also resolved that all trucks in the customs controlled area be released upon payment of withholding tax of 6 percent and the trucks in no man’s land that had blocked the gateway to Uganda’s customs yard, be allowed at the Ugandan side.
However, some rice traders claim URA’s laboratory test results cannot be trusted because there have been incidents of fake results in the past.
“We buy rice from Tanzanian farms by ourselves, grade it, and pack it in sacks, but it surprises us when URA makes tests and alleges that the rice comes from Pakistan,” Mr Patrick Ssenkima, a trader said.
Ms Aidah Ataho, a trader, told this publication that the new guidelines issued by URA are not any different from the ones in place .
“Our problem is with the URA process of laboratory analysis, which we don’t participate in. This could be a trick to make us fail the business and leave it to a few well-connected individuals,” she noted.
Mr Ibrahim Bbosa, the URA spokesperson, said after a meeting with traders in Mutukula, all impounded rice trucks were released after traders paid withholding tax, but did not pay import duty.
“The rice traders have started complying with URA’s guidelines because no single truck is allowed to cross the border without having the rice checked in the laboratory,” he said yesterday.
“We have harmonised with them and in case of any other disagreement, we are ready to sort it out,” Mr Bbosa added.
Last week, the URA Commissioner of Customs, Mr Abel Kagumire, cautioned rice traders against under-declaring their goods at the border points. He said some traders were importing rice from countries like Pakistan.
Importation of rice outside the East African Community attracts an import duty of 75 percent, while the rice imported from EAC member states has 0 percent imported duty tax.
About Mutukula border post
There has been a remarkable increase in volumes of transit cargo through Mutukula border post ever since it became a one-stop-border-post.
It has been operating 24 hours daily since 2017.
For seven years now, transit goods, passengers, travellers and exports exiting through Mutukula to either Tanzania or Uganda, stop once for clearance by immigration and customs officials.
