By Irene Kabakama and Elizabeth Nakiru
The new directive by Uganda Revenue Authority gazetting different bonds to handle consolidated cargo is aimed at streamlining the warehousing sector. This was revealed by the Commissioner Customs URA Abel Kagumire during an engagement between the authority and warehouse owners and bond operators at the URA headquarters recently.
Kagumire intimated that the directive stemmed from the huge revenue losses that were occurring due to cargo overstaying in the warehouses and bonds. He revealed that URA lost at least UGX 2.7 billion every week and UGX 2 trillion every six months because of the above challenge.
“This is why we want to streamline the warehousing sector by gazetting warehouses and bonds that meet the stipulated requirements to become consolidators,” he said.
The requirements include sufficient security details, manpower, and cameras, spacious verification space, well demarcated warehouse space of at least 6000 square meters for shelves, having a weighbridge within the bond, adequate work space to accommodate a minimum of 10 customs officers, space to house at least 10 consolidated cargo operators, enough parking space for clients, sanitary places, and clients waiting area.
Patience T. Rubagumya, the Ag. Commissioner General urged the stakeholders to embrace the new changes adding that they are not aimed at destabilizing business.
“We are not doing this to destabilize your businesses but to professionalize the industry and ensure business facilitation. You can also give us ideas on how we can support you and work together with us,” she said.
On the other hand, participants requested for more time to implement these requirements as they cited that some of them may not be feasible within the 2 months period given to have them in place by 1st July 2023 due to the financial implications.
Kash Katende, the spokesperson for Consolidators of Uganda said, “Some requirements like having weighbridges in the bonds, and having demarcated spaces for shelves are a restraint to us. This is due to the heavy costs involved which we cannot afford.”
Additionally, Charles Kawalya, a bonded warehouse operator, requested for extension of time from 6 moths to 8 months for cargo to be kept in the warehouse as their business is usually affected by time.
“I appreciated BWIMS because it gave us control and understanding of the cargo we were handling but now we need time to also adjust to this new directive,” added Kawalya.
The URA seeks to better manage the cargo that is imported into the country to promote efficient service delivery and improve revenue collection of customs, as well as reduce revenue leakages that result from absconding or delay of goods in warehouses.
This is being done in tandem with sector players including bonded warehouse owners, motor vehicle dealers, bond operators, consolidators and the clearing and forwarding fraternity.
