By Akinyi Winiefred
Taxpayers enrolled in the Authorized Economic Operators (AEO) program have asked the Uganda Revenue Authority to expedite the implementation of Mutual Recognition Agreements (MRAs) with other countries to enhance service delivery. URA currently has MRAs with India, South Africa, and China, but these are yet to be fully implemented for AEOs to reap the benefits.
Speaking at the AEO National Working Group meeting at the URA headquarters in Nakawa recently, Jennifer Mwijukye, the Chairperson of the AEO Association, noted that once they start enjoying the perks of the program in other countries, it will entice other taxpayers to join.
“If your service delivery is impeccable, then the program will attract other members. Once you deal with this issue, then there will be an overflow of companies interested in the efficiency and cost-effective benefits of the AEO program.”
She also called for expeditious handling of issues before they escalated.
In the same light, James Malinzi, the Assistant Commissioner of Customs Audit at the URA, noted that the AEO National Working Group Committee needs to include representatives from other agencies to increase efficiency across the board. These include Immigration, the Civil Aviation Authority, the Bankers Association, the Association of Insurance Companies, Uganda Police (traffic), and the Uganda National Roads Authority.
“When these agencies and associations join this committee, they will be able to facilitate the AEO members better because they will have a clear understanding of the benefits they are entitled to,” he stated.
The committee is currently comprised of representatives from the URA, the National Drug Authority (NDA), the Tanzania Ports Authority (TPA), the Kenya Ports Authority (KPA), the Uganda National Bureau of Standards (UNBS), and the Ministry of Agriculture, Animal Industry, and Fisheries.
The AEO program is also a regional trade facilitation initiative recommended by the World Customs Organization (WCO) to ease trade and customs clearance for tax-compliant importers and exporters. It allows revenue administrations to partner with businesses that have been checked and found to be compliant and, in return, get benefits in terms of simplified procedures.
Currently, URA has 147 taxpayers enrolled in the program, and these contribute about 45% of customs revenue. The tax body is working toward increasing the number of AEOs to about 500, which will increase their contribution to 80%.
URA has gradually improved the program, with the most recent enhancement being automation through the AEO-Enterprise Risk Management System (ERMS).
Additionally, the Tanzania and Kenya port authorities have increased their capacities, offering AEOs a 30- and 15-day free storage period, respectively. This is aimed at enhancing service delivery.
Additional Reporting by Jacinta Obore Mirembe
