Hundreds of rice trucks seized by URA at the border, leaving businesses in a standstill
Published on: November 2, 2023.
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Businesses at the Mutukula border in Kyotera District have come to a standstill as Uganda Revenue Authority (URA) seizes over 100 trucks loaded with rice from neighboring Tanzania. The impounded trucks have caused severe traffic congestion, disrupting normal trade activities at the busy Uganda-Tanzania border point.
Patrick Ssenkima, a rice trader, expressed his dissatisfaction with URA’s procedure for regulating rice imports from Tanzania. He stated that URA had instructed all rice traders to obtain import permits and have their rice inspected by the Uganda National Bureau of Standards (UNBS), which they had complied with. However, he disagreed with URA’s claim that their rice was from Pakistan when they actually purchased it from Tanzania.
Ssenkima revealed that URA is demanding UGX 69 million from him as import tax for each of his four trucks, totaling to UGX 276 million. While the traders respect URA’s authority, Ssenkima requested that they either allow them to sell the rice and leave the business or permit them to return the rice to Tanzania.
Aidah, a rice trader with five years of experience, confirmed that her rice was indeed from Tanzania. She was surprised that the URA team alleged that it was imported from Pakistan. Aidah has been ordered to pay UGX 86 million in taxes for the 39 tonnes of rice intercepted at the Mutukula border.
The traders expressed concerns about potential losses due to the delay in releasing their trucks. They rent trucks from Tanzania at a cost of TSH 170,000 per day, in addition to fuel and driver allowances. Therefore, the longer the trucks stay at the customs office, the more expenses they incur.
URA spokesperson Ibrahim Bbosa acknowledged the traders’ concerns and assured negotiations were ongoing to resolve the issue. He expressed confidence in reaching an agreement soon.
Recently, the URA Commissioner of Customs, Abel Kagumire, warned rice traders against under-declaring their goods at border points. Some traders have been importing rice from countries like Pakistan but falsely declaring it as Tanzanian. URA has collected samples from the intercepted rice trucks at Mutukula for testing to verify their origin.
Overall, the situation at the Mutukula border has caused significant disruptions for businesses, especially rice traders. The URA is in the process of addressing the concerns and finding a resolution.
