JOINT PRESS STATEMENT BY THE MINISTRY OF TRADE,

INDUSTRY AND COOPERATIVES, UGANDA REVENUE

AUTHORITY (URA) AND UGANDA NATIONAL BUREAU OF
STANDARDS (UNBS)
ON
FOREIGN PETTY TRADERS, CLEARANCE OF GOODS BY
URA & UNBS
AT
THE UGANDA MEDIA CENTRE
THURSDAY, 27THAPRIL, 2017

_______________________________________________________________

Introduction
Government has received several complaints from the
business community concerning a number of issues that
affect their operations. The complaints include;
1. The influx of foreigners in petty trade which is
drivingcitizens out of business
2. Delays in clearance of goods by URA caused by valuation
at the Centralized Data Processing Center (DPC) and regular
system failure of Asycuda World Clearing System
3. Delays in clearance of goods by UNBS and testing services
4. Unfair treatment of traders (tenants) by the landlords in
Kampala

1.0 Foreigners in Petty Trade

Government is equally concerned with the influx of foreigners
in petty trade and a number of interventions have been made
to address the matter.
My Ministry presented the issue before Cabinet after realizing
that there is no law that prevents foreigners from engaging in
petty trade. Cabinet constituted a Subcommittee to study this
matter and come up with a national policy objective to guide
trade by Non-Citizens. The subcommittee has finalized its
report that will be presented to cabinet.

Some of the highlights in the draft include;

What is the actual definition of a foreigner?
Restricting foreigners from dealing in certain categories of
goods in some areas
Controlling the nature of distribution
Increasing the threshold from the current requirement of
USD 100,000 to agreed threshold in the Investment Code Act

2.0 Delays in clearance of goods by URA caused by

valuation at the Centralized Data Processing Center
(DPC) and ASYCUDA World Clearance System

On 24th February 2017, URA introduced a harmonized tax

collection system by setting up a Central Data Processing
Centre. This facility is a trade facilitation initiativewith the aim
of;
Harmonizing customs valuation/duty collection at all URA
regions
Shortening the Customs declaration processing time
Classification of all goods to ensure a level playing field for
all the traders and to ensure that all operations are closely
monitored to enhance integrity and Quick turnaround of the
customs clearance

However, traders have complained that the DPC System has

led to increased tax values on goods and due to this increase;
they have found it difficult to clear their goods out of the
customs area.

2.1 What is the DPC

The DPC is a centralized document processing hub where all
documentary assessment and compliance check functions for
all Customs declarations is done.
The DPC is located at the URA Headquarters in Nakawa and has
technical personnel that manage clearance of goods on a 24
hour basis.
The function of physical verification of goods takes place at the
entry points or in the customs bonded warehouses as the client
may please.
Hence valuation and classification of goods in the DPC is based
on the descriptive verification accounts that are attached on
the declarations electronically by the customs officers at the
place of verification.
2.2 Benefits of the DPC
Provide quick and efficient service on a 24/7 basis.
Shorten Customs declaration processing time by
receiving declarations online and processing them relying on
the scanned attached documents on a 24/7 work arrangement.
Minimizing staff, clearing agent and trader direct
interferences to enhance independency and separation of roles
in the customs clearance process
Improve the management of the declaration processing by
ensuring uniform application of tariffs and valuation for goods
Enhance the clearance processes by reducing the need for
physical documents in the clearance processes.
Enhanced Specialization and professionalism (in handling
certain types of cargo)
Enhance productivity of the customs staff so as to increase
the clearance speed
2.3 The Customs Help Tool
To support the implementation of the DPC, Customs created an
easy and convenient communication tool between Customs and
its different Stakeholders.
It is an easy and user friendly web-based application that can
be accessed onlinefrom anywhere as long as the user has
internet connection.
URA has also increased the number of staffs that receive the
issues and ensure they are resolved in the shortest time
possible.
A help desk has also been created inside the DPC to further
support this function. We encourage all the clients to use the
help tool as the only channel for receiving and managing the
complaints that may be raised.

2.4 Valuation of Goods

As a result of DPC implementation, harmonization of values has
been created across the country where by some importers who
used to get away with perhaps low values in certain stations
now can no longer do so. This is good for business because it
creates fairness across the board.

2.5 Interventions by URA to address the unnecessary

delays in clearance of goods
URA has undertaken the following immediate and short term
actions to address delays;
Upgraded our servers for Asycuda a week ago and this has
increased the speed of processing declarations.
Increased the number of users under the Asycuda License
from 1000 to 2000 users. This was done effective Tuesday
18thApril 2017.
 URA with the support of NITA-U has been granted a
dedicated internet line by the Uganda Internet Exchange. This
will ensure uninterrupted internet services.
In the long term, URA is working with NITA-U to increase
the band width.

3.0 Delays in clearance of Goods by UNBS

The business community has complained about the delays in
clearance of UNBS caused by the Pre-shipment Verification of
Conformity (PVoC) programme.
Implementation of the PVoC program started in June 2013 to
facilitate the inspection of goods and used vehicles against
compulsory Uganda Standards. Once goods are inspected in
the country of origin by service providers contracted by UNBS,
a Certificate of Conformity (COC) is issued. The verification of
the COC at the entry points in Uganda takes no longer than four
(4) hours.
In the absence of a COC, destination inspection takes place
which includes: payment of a surcharge (penalty); physical
inspection of the consignment; collection and testing of
samples at the UNBS Laboratories in Nakawa. The delays
mentioned above are experienced by traders who chose to go
through destination inspection instead of the PVoC program.

UNBS has undertaken the following initiatives to ensure that

traders are familiar with the programme;
i. Awareness on PVoC: Communication on PVoC is a
continuous process with traders. The collaboration with URA
has improved the intervention of UNBS on high risk goods.
ii. UNBS will continue to carry out sensitization and
encourage compliance to reduce challenges.

Short term Interventions

 Implementation of the E-Portal, which allows for inspection
application on-line, has been progressing steadily. This portal is
linked to Asycuda World and has helped in faster clearance of
goods.
The procedure for Release-Under-Seal (RUS) to importers
own storage space outside the Customs area is being
implemented. It is available only after paying the penalty (in
the absence of a valid COC). The storage space is sealed until
the inspection procedure is completed. With this procedure, the
traders are able to avoid demurrage charges at customs.

Long term interventions

Provided the budget allocations for financial year 2017/18 are
released, it is the intention of UNBS to boost the staff numbers
primarily at Malaba and Busia. This will allow for inspections to
be carried out on a 24hr cycle.

3.1 Delays in Testing Services:

Interventions
UNBS begun the implementation of a Laboratory
Information Management System (LIMS) in October 2016, which
has improved the monitoring of turn-around time for testing
services. Clients are able to get information on the status of
samples and are informed when the analysis is concluded.
Samples from the Imports Inspection Department are
given first priority at the labs.
The Recognition of Labs Certification scheme also begun
in November 2016. The recognized labs issue results that can
be used for the clearance of goods as well as certification
services. The list of labs that have been recognized by UNBS
include the following;
Laboratory Services:
o SMAT Technical Services Ltd Civil Engineering Materials
analysis
o Chemiphar Uganda Ltd Chemistry and Microbiology
analysis
o Uganda Industrial Research Institute Chemistry and
Microbiology analysis
o St. Michael Food Laboratory and Consultancy
Microbiology analysis

Factory Laboratories:
o Reco Industries Physio-chemical and Microbiology
analysis
o Roofings Ltd Physical and Chemical analysis
This is in the effort of improving the laboratory testing capacity
in Uganda. The private sector is encouraged to invest in this
area and improve the services available.

4. Unfair treatment of traders (tenants) by the landlords

in Kampala
The Ministry of Trade, Industry and Cooperatives has engaged
the Ministry of Lands, Housing and Urban Development to fast
track the development of a regulation for Landlords and Tenant
relationships.
When the regulation is in place, it will sort out the current
harassment and mistreatment of tenants by landlords.
The Ministry if also following up with the relevant Government
agencies to put a stop on the practice by landlords to charge
tenants in US dollars. They should instead charge them in
Ugandan shillings.

Amelia Kyambadde (MP)