BY ANNET NANTONGO
URA is cleaning house as it streamlines groupage and cargo consolidation, a move that has unearthed a number of system flouters who disagree with the taxman’s directive.
Cargo Consolidators are intermediaries who provide a conducive trade environment to small and medium sized importers and exporters by capturing documents, facilitating verification and transfer of goods ownership. They collect cargo, its documentation and money from the different clients, bring it under one name, but have been noted to declare differing information to Customs.
M/S GRULAND LOGISTICS LIMITED of TIN: 1015926217, fell prey to malpractices and their Customs Clearing Agency License Number 22/2022 was revoked on account of flouting Customs Clearance Procedures at Entebbe International Airport Cargo Village.
Gruland Logistics concealed information on cargo that was imported as a printer. Upon verification, the box contained over 1,000 high-end phones such as iPhones and Samsung yet the agent had declared only 50. The declared revenue value for their consignment was UGX 26,549,563, as opposed to the actual revenue of UGX 191,359,571, leading to a recovery of UGX 164,900,008 in revenue.
The Consolidators recently sent a letter to URA highlighting some of the pains encountered at Entebbe International Airport such as delays resulting from the recent changes in procedures for clearance yet their category of cargo needs urgent attention. They added that verification takes 2-3 days and URA takes more than 4 days to provide verification accounts.
The letter, among others, pointed out that the non-intrusive (NII) cargo scanners slow down the clearance process since their cargo is bulky. It also pointed out that DPC has sophisticated processes and creates unnecessary queries, the cargo valuation is unrealistic, and that apparently the taxes charged are high. As a result, they urged their counterparts to hold a strike against all customs clearance procedures.
These middlemen claim to represent the interests of cargo owners yet they thrive in the grey areas which range from the ignorance of their clients and laxity of customs officials at the different points of entry. For instance, they charge cargo owners USD 7 per kilogram of cargo for taxes and clearance costs, meaning that 1000kgs would attract USD 7,000 in levies regardless of the goods one brings in, a duty that is not legally gazetted.
URA discovered that due to scanty information and incomplete documentation provided by the middlemen, this causes delays in clearing time since the tax body has to prompt for documents in piece meal. Section 34 of the EAC Customs Management Act regulations (EACCMA) 2004 requires agents or importers to declare within 21 days of unloading cargo and providing supporting documents, a provision that these taxpayers flout.
In addition, section 136 of the same regulations requires an agent or importer to declare the value of cargo being imported. Internationally recognised documents that are acceptable in a declaration to prove value declared include pro-forma invoice, invoice, proof of payment, telegraphic transfer among others.
Although cargo consolidators tend to present fictitious documents or deny having no documents related to the cargo, they also manipulate some URA staff to verify cargo that lacks documentation, thus affecting revenue. It should be noted that cargo lacking documentation is a deliberate move because globally, goods cannot land at the airport without documentation.
According to Ibrahim Bbossa, the Assistant Commissioner Public and Corporate Affairs, consolidators must follow the right declaration procedures and provide required documentation for ease of facilitation. He added that the perpetrators of these actions will be handled as provided for in the law.
URA continues to sensitize clients on the growing changes resulting from automation in customs processes. Traders are therefore urged to follow the correct declaration procedures in line with legal provisions on groupage, consolidated cargo, and cargo documentation.
