URA engages tailors on garment valuation and tax compliance

The Uganda Revenue Authority (URA) Customs team recently held a sensitisation session with members of the Uganda Tailors Association (UTA) to deepen their understanding of garment classification, valuation, and improve overall tax compliance.

The engagement, held at URA headquarters in Nakawa, also aimed to directly address the practical challenges tailors face during importation and clearance of textiles and garments.

During the session, Alexander Rubanga, Manager Tariff, explained that garment classification—an essential step in customs procedures—is determined by fabric type, garment construction, and material composition, all of which directly influence applicable duty rates.

Sheila Kyomugisha, Manager Valuation, emphasized that customs valuation in Uganda is aligned with international standards, particularly the World Trade Organization’s Customs Valuation Agreement. She also highlighted the importance of the valuation database, describing it as a key tool for promoting transparency and fairness.

“The valuation database helps both Customs Officers and traders manage compliance risks effectively,” she noted.

Traders were advised to submit accurate declarations backed by authentic commercial documents, and to seek guidance prior to importation in order to avoid misclassification and related disputes.

Addressing the tailors directly, Henry Kwaligonza, Acting Commissioner of Customs, reaffirmed URA’s commitment to working collaboratively with stakeholders:

“URA is dedicated to ensuring fair, transparent, and supportive customs processes that empower local businesses to grow and thrive,” he said.

Tailors Raise Concerns

During the discussion, UTA members—led by their Chairperson Phillip Sekimpi—voiced several concerns. Key among them were the high cost of fabric imports, delays in clearance, and the impact of classification on duty payable.

They also appealed for practical training on customs procedures to reduce misunderstandings and foster voluntary compliance. Sekimpi stressed the need for continued education, especially for small and medium tailoring businesses, many of whom lack the technical knowledge to navigate customs systems effectively.

The Association further requested that URA’s valuation and classification teams conduct field visits to tailoring workshops and businesses. Such visits, they argued, would help customs officials gain a clearer understanding of the real-world challenges faced by local tailors.

“We believe direct interaction will improve mutual understanding and create a friendlier compliance environment,” one member added.

The meeting concluded with a joint commitment to strengthen dialogue between URA and UTA, conduct field assessments, and expand educational outreach initiatives. Both parties agreed that regular engagement, built on mutual respect and transparency, is essential to fostering a compliant, competitive, and resilient textile and garment industry in Uganda.