New guidelines from URA for rice importers
Published on: November 6, 2023.
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The Uganda Revenue Authority (URA) has implemented new guidelines for rice importers at Mutukula border point in Kyotera District. Previously, over 100 trucks of rice were intercepted by URA officials who claimed that the rice was being imported from Pakistan instead of Tanzania, resulting in import duty charges. To prevent such situations in the future, URA officials will now collect samples from all rice trucks entering Uganda through Mutukula border for laboratory analysis to determine the country of origin.
According to URA’s statement on November 2, 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. Additionally, URA is now demanding that all rice trucks have a certificate of origin from Tanzanian farmers, an export permit from Tanzanian Bureau of Standards, and other necessary documents.
These new guidelines were established after a meeting between URA officials and leaders of long-distance truck drivers and rice traders. During the same meeting, it was decided that import duty top-up on cargo truck entries in the Mutukula Customs yard will be waived upon payment of a 6% withholding tax. Similarly, trucks in the customs controlled area will be released after payment of a 6% withholding tax, and trucks in no man’s land blocking the gateway to Uganda’s customs yard will be allowed into Uganda.
Despite the new guidelines, some rice traders remain skeptical. They argue that URA’s laboratory test results cannot be trusted due to previous incidents of fake results. However, URA spokesperson Mr Ibrahim Bbosa reassured traders that all impounded rice trucks have been released after traders paid withholding tax, but did not pay import duty.
URA Commissioner of Customs, Mr Abel Kagumire, has warned rice traders against under-declaring their goods at border points, emphasizing that importation of rice from outside the East African Community attracts a 75% import duty, while rice imported from EAC member states is duty-free.
Mutukula border post has experienced a significant increase in transit cargo volumes since it became a one-stop-border-post operating 24 hours a day since 2017.
Source: [The Monitor](https://www.monitor.co.ug)
