URA seizes smuggled rice, smartphones in crackdown on illicit trade

As part of an intensified campaign to curb illicit trade and protect the integrity of Uganda’s formal economy, the Uganda Revenue Authority (URA) enforcement team in Busitema has intercepted and recovered 75 bags of smuggled rice in Bugiri District.

The operation, carried out on Saturday, followed intelligence reports that a significant quantity of imported rice was being consolidated at a store in Butema village, with plans to transport it to Kampala. Upon arrival, the URA team found the goods packed and ready for illegal transit.

After a tense standoff, the enforcement team secured the contraband and transported it to the URA offices in Busitema for verification. Physical inspection revealed 75 bags of assorted 25kg premium rice from Pakistan, along with six packages of 40kg Hilal Premium Basmati rice, all concealed without proper documentation.

Because the rice originates from outside the East African Community (EAC), it is subject to import duties of 75%, in accordance with the EAC Common External Tariff. The importer now faces significant penalties for smuggling, in addition to the full payment of applicable taxes.

“This operation is part of a broader effort to protect Uganda’s market and ensure fair competition for compliant businesses,” said a URA enforcement officer familiar with the operation. “Smuggling not only drains public revenue but also undermines local traders who operate within the law.”

The crackdown continued the following day when URA enforcement officers raided Namungodi Trading Centre in Busia District, recovering 233 undeclared smartphones suspected to have been trafficked across the border. Offence management proceedings are currently underway.

Illicit trade—including the smuggling of agricultural goods, electronics, textiles, and fuel—poses a persistent threat to Uganda’s tax base. The URA has intensified border surveillance and inland enforcement, particularly along high-risk transit corridors linking Kenya and Uganda.

In FY 2022/23, URA reported an estimated UGX 2.1 trillion in lost revenue due to smuggling and tax evasion. With imports forming a major component of Uganda’s taxable base, curbing illegal trade is seen as crucial to domestic revenue mobilization and regional trade stability.

The authority has adopted technology-driven tracking tools and community-based intelligence to disrupt smuggling networks, especially those involving high-value consumer goods and food items that distort market prices.

“As Uganda invests in industrialization and import substitution, safeguarding our revenue and border systems becomes even more critical,” the URA noted in a recent enforcement bulletin. “We encourage the public to report suspicious activities and support the formal economy.”

URA is urging importers and traders to adhere to legal importation processes, pay the required duties, and refrain from exploiting porous border points. The authority is also promoting voluntary disclosure and use of bonded warehouses to encourage transparency.

“We recognize the importance of trade to our economy,” said a URA spokesperson. “But it must be conducted in a way that supports national development, protects legitimate businesses, and funds public services.”