Global Rice News

The Uganda Revenue Authority (URA) has taken steps to combat the importation of falsely declared rice by acquiring an advanced machine. This machine will be used to test imported rice at the Mutukula border and determine its true country of origin. The aim is to identify rice imports from countries outside the East African Community, such as Pakistan, that are incorrectly claimed to be sourced from Tanzania in order to avoid import duty tax.

The importation of rice from outside the East African Community carries a hefty Import Duty of 75 percent, while rice imported from EAC member states is exempt from this tax. However, some traders have been evading the duty by declaring mixed rice imported from Pakistan as Tanzanian rice. To address this issue and protect the interests of local rice producers, the URA has introduced this machine to ensure fair trade among East African countries.

According to the URA Commissioner in charge of field services, the Mutukula customs office has experienced losses due to traders avoiding the import duty tax. Rice imported from countries within the EAC is only subject to a withholding tax of 6 percent. The machine will help reinforce import regulations and prevent revenue losses by accurately determining the country of origin for rice imports.

In a meeting with URA officials on November 2, rice traders and long-distance truck drivers agreed to have samples of rice picked for laboratory analysis upon arrival at Mutukula. This analysis will establish the origin of the rice, with conforming results only subject to the withholding tax. Rice that fails the tests will be required to pay both the import duty tax and the withholding tax.

Since becoming a one-stop-border-post operating 24 hours a day in 2017, there has been a significant increase in the volume of transit cargo passing through Mutukula border post. This step is part of the ongoing efforts to enhance trade facilitation and strengthen revenue collection at the border.

Source: Source