New guidelines released by URA for rice importers
Published on: November 6, 2023.
Filed under:
The Uganda Revenue Authority (URA) has implemented new guidelines for rice importers using the Mutukula border point in Kyotera District. These guidelines were put in place after over 100 trucks of rice were found to be imported from Pakistan instead of Tanzania, resulting in the evasion of import duties. To prevent this from happening again, URA officials will now take samples from all rice trucks entering Uganda through Mutukula border for laboratory analysis to determine their country of origin.
According to URA’s statement, rice that passes the laboratory test will be allowed to proceed after payment of withholding tax. However, rice that fails the test will be required to pay import duty and withholding tax. In addition, URA is now requiring all rice trucks to have a certificate of origin from Tanzanian farmers, as well as an export permit from the Tanzanian Bureau of Standards, along with other necessary documents.
These new guidelines were the result of a meeting between URA officials, long-distance truck drivers, and rice traders. In the same meeting, it was decided that import duty top-up on cargo truck entries in the Mutukula Customs yard would be eliminated upon payment of a 6% withholding tax. It was also agreed that all trucks in the customs controlled area would be released after payment of a 6% withholding tax, and the trucks in no man’s land that were blocking the gateway to Uganda’s customs yard would be allowed into the country.
However, some rice traders have expressed doubts about URA’s laboratory test results, citing previous incidents of fake results. They claim that they personally buy rice from Tanzanian farms, grade it, and pack it themselves, which contradicts URA’s findings that the rice is from Pakistan. URA spokesperson Mr. Ibrahim Bbosa stated that all impounded rice trucks were released after traders paid the withholding tax but did not pay import duty.
In conclusion, the URA has introduced new guidelines for rice importers using the Mutukula border point in order to prevent the evasion of import duties. These guidelines include laboratory analysis of rice samples, the requirement of a certificate of origin and export permit, as well as payment of withholding tax. While some traders have expressed concerns about the accuracy of the laboratory tests, URA has reassured them that they are open to resolving any disputes.
