By Irene Kabakama, Media Management/PCA
Uganda Revenue Authority and the Uganda Cargo Consolidators Association (UCCA) have committed to sign a Memorandum of Understanding (MoU) to lay down guidelines and facilitate data sharing which will improve clearance of cargo.
According to URA’s Commissioner General John R Musinguzi, the MoU is to be signed before the end of February.
This was agreed upon during an engagement with URA, UCCA and KACITA which deliberated on the challenges in cargo clearance and sought to harmonize processes therein for Small and Medium Enterprises.
During the discussions, concerns were raised on delayed clearance of cargo especially groupage consignments with the traders urging URA to forge better ways of handling them.
Issa Sekitto spokesperson UCCA said the current process of clearing through individual TINs creates delays which are further worsened by the cargo spending two weeks at the Uganda National Bureau of Standards (UNBS) undergoing verification.
Karugaba Emmanuel, Chairman UCCA asked URA to streamline the system to allow a consolidator to transfer cargo to individual owners after auto conversion. “The clear procedure will provide a match between internal and external data,” he said.
Karugaba added that URA Customs has deferred on previously agreed processes with the traders which is frustrating their efforts to organize the groupage importation process.
In response, CG advised the team to deconsolidate the cargo when it arrives in the bond for officers to easily tell who owns each groupage. “This will enable us avoid delays because we are working towards the mission of facilitating trade and mobilizing revenue.,” he explained.
He added that clearing of cargo should be done quickly and easily as URA thrives on consolidators information to onboard taxpayers to the Authority.
Commissioner Customs Abel Kagumire assured the traders that warehousing will streamline processes for clearing consolidated cargo adding that groupage cargo has been a high-risk issue. He advised the team to use the three bonds that comply with the guidelines put in place to avoid the theft of cargo.
URA continues to ease processes for taxpayers to improve compliance and increase collections. With the signing of this MoU, it is hoped that delays in cargo clearance will be reduced which will ease business for all stakeholders involved.
