Wakilii

World Best Corporation v The Commissioner Customs, Uganda Revenue Authority (Miscellaneous Cause No. 121 of 2018)

High Court · [2018] UGHCCD 223 · 2018 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for release order and possession of goods held in customs custody
Decision
Goods released to applicant subject to execution of fresh power of attorney in favour of lawyers and provision of indemnity

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that where goods consigned to a non-existent Ugandan company remained in customs custody and the true owner (the exporter) sought their release, the court would grant a release order upon satisfaction that the applicant owned the goods and that the purported clearing agent's suit claiming ownership was part of the fraud. The applicant must execute a fresh power of attorney in favour of lawyers to receive the goods and provide an indemnity against third party claims.

Outcome

Goods released to applicant subject to execution of fresh power of attorney in favour of lawyers and provision of indemnity

Facts

World Best Corporation, a South Korean chemicals manufacturer, shipped goods in three containers to a purported Ugandan company, OSHO Company East Africa Limited. The goods were to be paid for against delivery of bills of lading, which were returned unpaid when the consignee could not be traced. One container was cleared and exited by customs; two remained in customs custody. Investigation revealed the stated consignee did not exist as a legal entity in Uganda. A clearing and forwarding company, Excel Freight Consult Limited, purporting to be agent of the non-existent consignee, filed a separate suit in the Commercial Court claiming ownership of the goods. The applicant, through an appointed attorney, sought a release order for the goods held in customs.

Issues

  1. Whether the applicant is entitled to a release order and possession of goods held in customs custody where the stated consignee does not exist as a legal entity.
  2. Whether the goods should be released to the applicant despite a pending suit by a freight forwarder claiming ownership of the same goods.
  3. What conditions should attach to the release of goods in circumstances involving suspected fraud.

Orders

  • Release order and possession granted to the applicant.
  • The applicant shall execute another power of attorney in favour of lawyers who shall receive the goods.
  • The applicant shall execute a deed of indemnity in case of third party claims against the respondent.
  • Each party to bear its own costs.

Rules and key headnotes

Customs — Release of Goods — Jurisdiction of High Court under East African Customs Management Act
The High Court has jurisdiction under sections 220, 221, and 223 of the East African Customs Management Act to grant release orders for goods held in customs custody where the true owner establishes entitlement and the circumstances warrant such relief.
Fraud — Non-Existent Consignee — Release of Goods to True Owner
Where goods are consigned to a purported entity that does not exist as a legal entity and the transaction bears hallmarks of fraud, the court may grant a release order to the true owner (the exporter) upon satisfaction that the stated consignee is fictitious and that the exporter has been defrauded.
Abuse of Process — Suit by Agent of Non-Existent Entity
A suit filed by a clearing and forwarding company claiming to be agent of a non-existent legal entity and purporting to claim ownership of goods is part of the fraud and constitutes an abuse of court process, and will not prevent the court from granting relief to the true owner.
Release of Goods — Conditions — Indemnity Requirement
As a condition for the release of goods in circumstances involving potential fraud and third party claims, the court may require the applicant to provide an indemnity to customs authorities against future third party claims and to appoint a member of a law firm to receive the goods under a fresh power of attorney.

Legislation cited (7)

  • East African Customs Management Act s.220
  • East African Customs Management Act s.221
  • East African Customs Management Act s.223
  • Civil Procedure Rules O.52 r.1
  • Civil Procedure Rules O.52 r.2
  • Civil Procedure Rules O.52 r.3
  • Judicature Act s.33

Full judgment

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The original judgment as reported. Read the original PDF before relying on any passage.

World Best Corporation v The Commissioner Customs, Uganda Revenue Authority (Miscellaneous Cause No. 121 of 2018) [2018] UGHCCD 223 (29 June 2018)
Source: this page presents Wakilii’s issue analysis and metadata for a publicly reported Ugandan judgment. Any AI-generated summary is marked as such. Judgment text is sourced from the Uganda Legal Information Institute (ulii.org). Wakilii is not affiliated with ULII.