URA bans customs warehousing for imported wheat flour, tiles, phones and cosmetics

Uganda Revenue Authority (URA) has said that importers of wheat flour, mobile phones, tiles, marble and granite will have to pay for their taxes upon arrival at the various entry points into the country as their will not be warehousing for them.

Also affected are lubricants, automotive batteries, toiletries and cosmetic products, pasta and spaghetti, and flavours for soft drinks.

According to URA, the listed items have been restricted in fulfilment of the customs laws, particularly article 64(k) of the East African Community Customs Management regulations 2010 (EACMA).

Customs warehousing allows the owner to hold imported non-Community goods in the Community and choose when he pays the duties or re-exports the goods.

“This is to promote efficient service delivery and improve revenue collection of customs as well as reduce the gaps for revenue loss that come from abandonment of goods at warehouses,” URA said in a statement issued on Thursday, 13 April 2023.

URA also said it seeks to better manage the contingencies that come with these products including their fragility, high level of perishability, flammability, and the fact that most of these goods are not assorted but are usually imported as a single carton.

This move is to equally encourage import traders to plan ahead of time to pay the taxes due on the goods they are importing upon arrival at the boarders or entry points like the water ports and airport. This will further ease movement once the goods have been cleared straight to the market instead of going to the warehouse.

“The affected stakeholders will be engaged by URA through a sector by sector basis, therefore I encourage them to be open to the coming engagements when called upon,” said Ivan Kakaire, Manager Customs Planning.

This directive will be effective from 1^st June 2023 to enable stakeholders adjust and comply to the new customs clearance measure of the named products.