URA Taxation Handbook FY2023-24

Consolidator of his/her choice (Shipper) in the foreign country (eg. China, UAE) together with all the documents showing the nature of the packages, description of the items as well as the invoices, packing list.

of their names, contacts and Tax Identification Numbers (TIN) to the consolidator at the point of delivery of the goods at the consolidator's warehouse. These details ought to appear on the master Bill of Lading and the House bill of lading.

the goods arrive at the first port of entry for instance Mombasa/Dar-es-Salaam, all individual importers in the container have been IDENTIFIED; TINs details indicated on the Master Bill of landing and have submitted the required purchase documentation i.e. invoices evidence of payments, parking lists with a detailed description of goods, quantities, delivery notes etc.

port of entry port in the Partner State (eg. Mombasa, Dar-es-Salaam), transit entries are captured to move the goods to the destination bond in Uganda, where final clearance will take place. These Customs documents are called WT8 and T1

ICD/Bond, the bond operator and Customs officer shall receive the cargo. WT8/T1 auto-converted to the warehousing entry (IM7), the registered consolidator, the appointed agent shall handle cargo examination with customs and upload examination accounts for further processing

transfer of ownership from his names to the individual taxpayers they consolidated (breaks bulk). Transfer of ownership fees are paid and approval of transfer is done by the Supervisor

on the process of clearing the items after the consolidator has approved the transfer of ownership

to pay taxes (IM4) after transfer of ownership approval or continue with the warehousing process as per the warehousing procedures or goods are re-exported. All the purchase documents (invoices, evidence of payments, parking lists with detailed description of goods, quantities, delivery notes Master and House Bill of lading etc.) must be declared and attached on all customs declarations Transfer of ownership of warehoused goods Steps followed

Step I: Importer (Transferor or registered consignee on the subject consignment) writes to Manager Customs Warehousing a request to Transfer Ownership of Goods specifying in the request: a. Date of the letter b. The affected declaration and its date c. The general description and quantities of the goods to be transferred. d. The total Customs Value of the goods involved e. Reasons for the transfer f. Clearing agent (full names of both Company and Individual) authorized to process the transfer of ownership transaction g. The TIN of the importer (transferor) and transferee h. Currently active physical address, telephone and email address of the

transfer or and transferee i. Full names of the person(s) signing on the letter as they appear on their National ID or Passport In case of a corporate entity, the above letter should be on the company's (transferor's) known letterhead.

Step II: Attach the following mandatory supporting documents a. A copy of the national ID of signatories and each individual named in the letter referred to in STEP I above. b. A copy of any (for corporate entities) contract, agreement or (for the case of individual transferors) sworn affidavit on the basis of which the above transfer is to be effected. c. The document mentioned in 'b.' above should be submitted to Customs in original form and duly signed by the transferor and transferee or their authorized signatories. d. Copy of the evidence of payment of stamp duty fees wherever applicable. e. In case the transferor is a corporate entity, a 'Company Form VII' that shows the current directors of the corporate entity that is certified by registrar of companies should as well be attached. f. Copies of National IDs or Passports of all individuals that have signed on any documents to be submitted alongside the request to transfer any goods should be attached and endorsed by the owners of the IDs. g. Copies of the first page of each Customs document pertaining to the subject goods arranged chronologically from: Transfer Form - IM7 - T1 - WT8 - Bill of Lading (Original Customs Copy), Invoice and Parking List.

Step III:

to the appointed clearing agent

of ownership process in the Customs system

above required documents and submits them through the Customs Help tool under the warehouse Problem Code - 'Warehousing REC - Transfer of Ownership'

if there is no query

same shall be handled and responded to by the appointed clearing agent through the Customs help tool ticket for the subject transaction Step IV: Completion of the transaction by the Customs Warehousing reconciliation team and giving applicant feedback.

requests for transfer of ownership of cargo through the help tool or (only where help tool is down) manually and handle or allocate them to different reconciliation team members for handling.

all documents presented and may ask any other relevant document for purposes of making an objective and informed decision through help tool or manually written queries.

the cargo is expected to be warehoused by the consolidator in the names of the consignee that contracted the importer who shall go through the transfer of ownership process by themselves and attach the Master bill and House Bill.

of ownership of cargo of CIF value not exceeding USD 50,000. For any transfer of cargo whose BIF is above the stipulated amount, the Supervisor should be consulted.

should be queried; and where the client fails to provide satisfactory response, - rejected and reasons for rejection clearly indicated in writing. The client can appeal against the rejection in which case they can be referred to the next office in the hierarchy for consideration of the appeal.

six hours of our response and querying Resolution of each transaction should be within 24hrs of the request.

from a Private Entity to a government entity for which taxes are exempted should only be authorized with written permission from a supervisor or manager warehousing.

Current process of change of ownership. • Agent appointed by the client initiates the request to transfer ownership in asycuda world by indicating details of the current and new owner plus details cargo to transfer. • The system generates the assessment for change of ownership fees and gets paid in bank of choice. • Agent or client lodges the transfer of ownership request on help tool and with all transaction documents uploaded (As in step II above). If help tool is down, client lodges manually to the supervisor or in charge reconciliation. • The ticket is allocated to either sector Supervisors or in charge reconciliation • The supervisor or in charge reconciliation vets or validates the attached transaction documents and if satisfied proceeds to system approve in asycuda world • Upon system approval(transfer), the client is then able to capture the subsequent declaration in the names of the new owner

13.0 | Auction at Customs Warehouse

Customs warehouse means any place approved by the Commissioner for the

deposit of goods unaccounted for goods, unexamined goods, abandoned goods, detained, or seized goods, goods for safe custody. If such goods are not claimed and redeemed, they are disposed of off as the Commissioner may decide. Note: a. Goods deposited in the customs warehouse must be lawfully removed within thirty days (30) after deposit. b. Where the goods above are not removed within 30 days, the commissioner shall give notice by publication in the Gazette that unless such goods are removed within thirty days (30) from the date of the notice, they shall be deemed to have been abandoned to Customs for sale by public auction and may be sold in such a manner as the Commissioner may deem fit: c. Customs allocates lot numbers (Identification numbers) for easy identification by the prospective buyers d. Owners of such goods (the category that is redeemable) are given 30days from the date of publication within which they can redeem their goods and pay the FULL taxes e. The exercise of the auction is conducted through online bidding f. Clients are encouraged to view the lotted items, before the day of the auction g. The bidder with the highest bid amount is declared as the winner h. For online auction, however, the winner is given 48 hours within which 100% payment is made to the lot won else the bid is given to the next bidder with the highest bid amount.

Online auction The Online Auction site can be accessed through http://singlewindow.go.ug/auction/home.

To participate on the online auction, the participant is required to be registered for taxes (have an active TIN) • On the home page, the participant should click on auction to navigate through the available auction lots and click on view for more details. • Bidder is required to login using his URA portal account details (TIN and Password) in order to participate in the bidding process. • A payment registration slip will pop up to enable the auction participant select his preferred Bank and create a payment registration slip to enable him/her pay for the participation fee. • Once the payment is reconciled, the bidder will log into the website again to have more options. The bidder can view my messages under his login when he clicks on his TIN.

14.0 | Temporary Importation

Customs procedure where goods brought into a Partner State are for use for a limited time (temporary use) and will ultimately preferably within 12 months be exported out of the country of importation on a prescribed form and subject to a security bond or carnet de passage en Duane (Passbook) or Pass Sheet or other similar importation documents issued under guarantee of an authorized association in respect of the vehicle or goods

14.1 Temporary imports This means to bring or cause to be brought, into the partner state. Goods are imported into the partner state and then exported within the time limit, normally not more than a year.

14.2 Procedure on Temporary Importation • A proper officer is satisfied that the goods are imported for temporary use or purpose • Goods imported should be qualifying to pay duties • Duties ordinarily payable secured by a customs bond or other form of security • Temporary importation period does not exceed 12 months • Temporary importation without payment or guarantee of duties is onlywith approval of a proper customs officer • Deposit is refunded or bond security cancelled with proof, goods were re- exported

14.3 Goods allowed for Temporary Importation a) Commercial Travelers' samples b) Goods, including stage properties, imported for local exhibition or entertainment c) Goods imported solely for renovation or repair d) Touring propaganda material not otherwise prohibited e) Any vehicles and goods of a kind described in regulation135-137 f) Such other goods as Commissioner may allow subject to such conditions as he or she may impose

14.4 Goods not accepted for Temporary Importation • Cinematograph films (except films of maximum width of 16mm and length of 500metres imported for free exhibition for the sole purpose of promoting travel in the country therein depicted) may not be imported under temporary importation privileges • Consumable stores such as beverages of all kinds • Goods imported by residents • Goods which do not attract duty

14.5 Refund of deposit/ bond discharge • Refund of deposit or bond discharge on temporary imports may be allowed: • The owner of the goods being re-exported gives notice of their intended export • Presents them for inspection before exportation • Contravention of the conditions of importation makes all goods liable to duty.

14.6 Administrative guidelines on temporally importation of registered vehicles Temporary Importation of Private Foreign Registered Motor Vehicles. In reference to EACCMR 2010,

14.7 Regulation 136 and 137 effective 1st July 2019 1) The owners of foreign private motor vehicles must have a valid Temporary Importation of Road Vehicles Form (Form C32) issued at the Border Station 2) To obtain a Form C32, an individual MUST: a. Be a foreigner with foreign identification. b. If Ugandan has a valid work permit or proof of residency in a Partner State c. Have the foreign Motor Vehicle Registration in his or her name d. Have a valid Power of Attorney from the motor vehicle owner, in case the operator is an agent of the owner e. Provide satisfactory reasons for the temporary importation with clear physical and contact address of place of aboard inland f. Pay temporary license fees (US Dollars 20) where applicable

NOT be issued with form C32 or be allowed operate a foreign registered motor vehicle within the country and any such vehicle shall be impounded 4) Temporary importation of foreign registered motor vehicles shall be granted ONLY once, for a period not exceeding three (3) months

not be allowed and such vehicle is expected to exit within the three months or else be impounded

the owner/ agent being in possession of a valid Form C39

the Commissioner 14.8 Re-Importation Means the Customs procedure under which goods which were exported may be taken into home use free of import duties and taxes, provided they have not undergone any manufacturing, processing or repairs abroad and provided that

any sums chargeable as a result of repayment or remission of or conditional relief from duties and taxes or of any subsidies or other amounts granted in connection with exportation must be paid. The goods that are eligible for re-importation in the same state can be goods that were in free circulation or were compensating products.

15.0 | Transit and Transshipment

Customs transit refers to the movement of goods imported from a foreign place through the territory of one or more of the Partner States, to a foreign destination under customs control. In simpler terms, this can be explained as the transport/movement of goods from an office of departure to an office of destination under customs control.

15.1 Transit Management Transit management is one of the procedures that play an important role in facilitating international trade. It is the administration of the flow of goods within, through and out of the country. Goods may be declared for in-ward or through-transit upon arrival at the first point of entry from another country. Goods may also be declared for outward transit from Uganda (exports and re-exports) to other countries.

To ensure that the revenue relating to goods in transit is protected, several measures are put in place;

clearing agent is prepared and a transit document (T1) is generated to facilitate the movement of goods

It is an offence to tamper with a customs seal of any kind and the same must remain secure up to the destination. Any confirmed tampering attracts heavy penalties

if the goods are not presented at the customs office of destination)

sufficient to cover the suspended customs duties and taxes

retired after customs is satisfied that the goods are intact and transit documents have been presented at the destination office 15.2 Treatment of Goods in Transit

Goods landed for removal in transit are cleared on Form C.17 within 21 days of commencement of their discharge from importing vessel. Beyond 21 days they are deposited in customs warehouse • Goods entered for transit must be exited within 30 days or within such further period as the Commissioner Customs may allow. Take note of administrative provisions allowed by the Commissioner Customs of 7days for national transits and 10 days for regional transits • The conveyance of goods in transit is through routes approved and gazzetted by the Commissioner Customs. • The owner/approved agent shall specify their preferred transit route at the time of declaration of the entry and is required to stick to the same. Any diversion from the specified route is an offence which attracts penalties • A Customs Security Bond is executed by the owner/agent to cover the tax liability of the goods at the office where the goods are entered. • The amount of guarantee must be sufficient to cover the suspended customs duties and taxes • Provisions of any law prohibiting or restricting the importation of goods will not apply to transit goods destined to a foreign destination unless the goods are specifically listed in the Third Schedule to the East African Community Customs Management Act by order of the council • Transit goods stored in a customs area or transit shed are at owner's risk and liable to rent and other charges as may be prescribed • Where the goods are handed over to an owner of the transit shed who is not an agent of the importing aircraft or vessel, the owner of the transit shed shall be responsible and accountable for the goods and shall be liable for payment of duty on the goods if the goods are not delivered or otherwise accounted for • Goods under transit may be transshipped from one means of conveyance to another • Where the owner/agent wishes to change destination office, extend transit period, diversion to the garage for repairs, he/she must ask for permission from the Transit Monitoring Unit (TMU) with justification

15.3 Licensing of vehicles for conveyance of goods in transit All vehicles/vessels carrying transit goods are required to have a Transit Goods License (TGL) renewable every year

The Commissioner Customs may license any vessel or vehicle intended to be used for the conveyance of any goods subject to Customs control and any transporter upon application made in such manner and upon payment of such fees, as may be prescribed.

A person who uses any unlicensed vessel for the conveyance of any goods subject

to Customs control, or uses any unlicensed vehicle for the conveyance of goods to which other legislation of any of the Partner States applies commits an offence and shall be liable to a fine not exceeding five thousand dollars

15.4 Procedure for licensing vehicles The process of application and issuance of the Transit Goods License (TGL) is automated and can be accessed online through http://singlewindow.go.ug/ atransporter/

create an account in order to access the portal

where the applicant wants his/her vehicle to be inspected

the user then submits the application

an officer (Inspector) for inspection

deliver the physical motor vehicle along with its registration documents for inspection to the customs location which they selected

on the payment icon on his/her application

after payment has been made 15.5 Requirements and Conditions for a Transit Goods License (TGL) • The vehicle must be constructed in a manner that it is sealable i.e. goods cannot be removed from or introduced into the sealed part of the vehicle without breaking Customs seals. • It does not have concealed spaces where goods can be hidden. All spaces in the form of compartments or other spaces that are capable of holding goods are readily available for Customs inspection • It should not have any false floors, walls or roofs • Hinges must be made and fitted such that doors and other closing systems cannot be lifted off the hinge-pins and other fasteners are welded to the outer • Doors should cover all gaps and ensure complete effective closure. • The vehicle/vessel must be marked with the words "TRANSIT GOODS" printed boldly and clearly on both sides of the vehicle. • The vehicle/vessel must be registered.

The Transit Goods License fees will be USD 200 annually for every carrying unit/ vehicle

The Transit Goods License once issued by one partner state shall be mutually recognized by all the partner states

Where it is justifiable depending on the nature of goods the owner/agent/ transporter who wishes to use an open truck to transport transit goods may seek permission from Transit Monitoring Unit

15.6 Transshipment 15.6.1 Meaning of Transshipment Transshipment means the customs procedure under which goods in transit are transferred under customs control from one conveyance to another (from one carrier to another) within the customs controlled area or along the gazetted transit route.

There are practical incidents that may warrant transshipment of goods and these may include but not limited to accidents, mechanical breakdowns, change in mode of transport and may involve the following categories

road to rail, air to road, water to road, rail to road etc)

from one container to another, from a container to a wagon, from one truck to another, from truck to a container etc) 15.6.2 Transshipment Process

to transship his/her cargo, makes a formal request/application to Transit Monitoring Unit (TMU) highlighting justifications with all the supporting documents

approving authority shall either approve or reject the request or request for more information

to supervise the transshipment exercise

fees of $15 and thereafter proceed to supervise the transshipment process

where applicable

illegal transit diversion, mis-declaration, under declaration), the officer shall raise a seizure notice and manage the offence

a copy of the transshipment account to the driver and then flag off the truck to proceed 15.6.3 Treatment of accident cases involving goods in Transit

the accident to Transit Monitoring Unit or the nearest Customs office and a customs officer shall visit the scene

normal transshipment process shall take course

officer makes a verification report highlighting the extent of damage. The salvaged goods are transshipped to new means of transport and sealed to resume transit.

customs officer shall make a report highlighting that no goods were salvaged.

the Commissioner Customs is satisfied that the goods were completely destroyed, the transit bond shall be reconciled and cancelled.

goods were destroyed but found missing then all the due taxes are payable

by a police accident report 16.0 | Export Procedures

16.1 Export of Goods This is a process of taking goods and services from Uganda to a foreign country. This process is subdivided into the two (2) categories below

16.2 Intra Region Cargo (Transfers): traded within EAC partner states a) A declaration is made in the country of importation's Customs System by the client's declarant (agent) b) When the declaration is released after all the necessary checks, its then transmitted to URA's Asycuda system. c) Then the respective customs officers will then, issue a C2(Cargo Movement Document) on the transmitted entry to permit the cargo to move to the importing partner state.

16.3 Exports Cargo originating from a Partner state to a destination out of the Region (East Africa), e.g. coffee exports from Uganda to Singapore a) A declaration is made in the country of Exportation's Customs System by the client's declarant (agent) b) When the declaration is released after all the necessary checks, its then transmitted to the KRA Customs system ICMs. c) Then the respective customs officers of KRA will then, issue a C2(Cargo Movement Document) on the transmitted entry to permit the cargo to move through the partner state to the port of discharge Mombasa.

Please Note: In the EACCMA Sec 77.-(1) Goods which have been put on board on any aircraft or vessel for export, or for use as stores, or as passengers' baggage, shall not, save with the written permission of the proper officer and in accordance with such conditions as he or she may impose, be discharged at any place within the

Partner States.

16.3.1 Types of exports Permanent exports: This covers goods especially originating in the country, exported and intended to remain permanently or to be consumed in the foreign country.

Temporary exports: This covers goods which are exported for special purposes and are to be returned after that purpose. E.g. goods exported for repair/ refurbishment, or exhibition.

Re-exports: This covers goods originally imported in the country but later exported to a foreign country such as a) Temporary imports, b) Goods warehoused at importation and thereafter entered to be exported to another country, OR c) Goods entered for Home Consumption and later exported to another country.

16.3.2 Exporting goods outside Uganda The exporter can improve his/her cash flow through the claim of a refund of money spent on packing materials, e.g., boxes, Gunny bags.

The exporter can also claim back money paid as VAT, during the production process of the exported goods. All exports do not pay taxes except; Unprocessed hides and skin, Fish, and unprocessed tobacco.

A taxpayer who wishes to re-export their goods to another country, should note that income earned from the re-exported goods is taxable and should be declared during filing of their returns to avoid penalties and or interest.

The exporter/re-exporter has to be registered with a Taxpayer Identification Number. Please note that all goods manufactured for export must be labeled 'produced for export'.

Remember before packaging your goods for export consult with Uganda Export Promotion Board to get more information on Eco-labeling, finding buyers for your goods, open account trading, how prices are determined internationally and much more.

The exporter is required to appoint a customs agent to transact on their behalf. The exporter is required to obtain an export license from the Uganda Export Promotions Board. The exporter must secure the services of a licensed transporter (where applicable).

16.3.3 Entering Cargo for Export The whole of cargo intended for export should be entered by the owner of such cargo in the manner prescribed. The owner of cargo intended for export is required to furnish to the proper officer full particulars, supported by documentary evidence, of the goods referred to in the entry.

Goods intended for export are required to be exported within thirty days from the date of entry or such further period as the Commissioner may allow (Sec 2A of EACCMA (Amendment) Act 2011. Breaching the provisions of Sec 73 is an offence and goods in question are liable to forfeiture.

Exports that may be exempted from a Single Administrative Document include: • Bona fide personal baggage of the passenger or members of the crew • Goods intended for sale or delivery to passengers or members of the crew • Mail bags and postal articles in the course of transmission by post

16.4 Taxation and exports a. The export value of goods is the value of the goods at the port or place of shipment or exportation plus all charges incurred in delivering the goods on board the aircraft, vessel or vehicle of exportation b. Where the cost of the goods cannot be determined, the cost of similar or identical goods exported from a Partner State at about or the same time shall apply c. Where the value of the goods cannot be determined under subsections (1) or (2) then the proper officer may determine the value of such goods

16.4.1 Treatment of goods liable to export levy Where goods are liable to export duty: a) The amount of duty shall be stated on the export entry of the goods, and b) The goods shall not be exported until the export duty has been paid or security thereof given to the satisfaction of the proper officer If the goods entered for exportation are examined by the Proper Officer and discrepancies found from those on the entry an offence is committed and the goods shall be liable to forfeiture. Subject to the provisions of any law in force in a Partner State, export duty shall not be levied on the exportation from the Partner State of any goods grown, produced, or manufactured, in another Partner State; and such goods shall on exportation, be subject at the place of exportation only to the export duty, restrictions and conditions imposed under the law of the Partner State in which they were grown, produced, or manufactured.

Also note that:

Income earned from the re-exported goods is taxable and should be declared during filing of the re-exporter's returns to avoid penalties and or interest.

16.5 Refunds on Exports The exporter can claim of a refund of money spent on packing materials, e.g., boxes, Gunny bags. The exporter can also claim back money paid as VAT, during the production process of the exported goods.

Therefore, • All goods manufactured for export must be labeled 'produced for export • The exporter is required to obtain an export license from the Uganda Export Promotions Board. • In the case of goods on which drawback is to be claimed, the particulars on the entry are, whenever possible, to be compared with the particulars of the respective import entry. • No drawback is payable on damaged or spoilt goods, unless the designated officer is satisfied that the goods were accidentally destroyed on board or were materially damaged after loading, and have been abandoned to the Customs. • Also, drawback may not be allowed on provisional entries i.e. only goods that were perfectly cleared and in respect of which an invoice was presented to Customs may be considered for drawback.

17.0 | Prohibited and Restricted Goods

17.1 Prohibited goods These are goods whose exportation, carriage coastwise or transfer of which is completely not allowed by any of the laws in force in the Partner State.

17.2 Prohibited exports Prohibited exports are listed in Part A of the Third Schedule of the EAC-CMA. Ideally these are all goods the exportation of which is prohibited under this Act or by any written law for the time being in force in the Partner States e.g. narcotic drugs. See Sec 70 (1) of the EACCMA

17.3 Restricted exports These are goods whose exportation, carriage coastwise or transfer of which depends on the fulfillment of the conditions regulating such exportation under the Customs laws or any other written laws. Restricted exports are listed in Part B of the Third Schedule of the EAC-CMA E.g. Waste and scrap of ferrous cast iron, timber from any wood grown in the Partner States. Sec 70 (2) of the EACCMA

17.4 Restricted goods Restricted goods include the following: • All goods the exportation of which is regulated under this Act or of any law for the time being in force in the Partner States; • Waste and scrap of ferrous cast iron; • Timber from any wood grown in the Partner States; • Fresh unprocessed fish (Nile Perch and Tilapia); • Wood charcoal • Used automobile batteries, lead scrap, crude and refined lead and all forms of scrap metals

The following goods shall not be exported in vessels of less than two hundred and fifty tons register- • Warehoused goods; • Goods under duty drawback; • Transshipped goods.

Note: The Schedule for prohibited and restricted goods may by order in the gazette be amended by the Council to specify the goods of which their exportation is to be prohibited or restricted either generally or in particular cases. The Council may by order in the gazette prohibit or restrict the exportation of goods from a Partner State either to all places or to any particular country or person. Goods in transit, transshipment or goods exported as stores of a vessel or aircraft unless it is otherwise stated, they are not affected by provisions of Sect. 70 & 71 of the EAC-CMA, 2004. Nonetheless, we should further note that although the law of prohibitions/restrictions does not bind these goods they should be exported within such a time as the Commissioner may specify.

18.0 | Clearance and Temporary Exports

For goods under temporary export, there is need to have a detailed examination account on the export entry which should be endorsed by the Customs station of exit. This copy will be used to support the declaration by the owner at the time of the re-importation of the goods as supporting evidence for the goods that were temporarily exported in order for the goods not to be taxed as fresh imports if they are re-imported in the same state as that at the time of exportation or to ascertain value addition and pay applicable taxes

The exporter/owner of goods is advised to get a re-importation certificate (Form P45) from Customs for the goods under temporary exportation at the time of clearing his goods for temporary exportation. The re-importation certificate is

one of the cardinal documents that support the declaration made to Customs at the time of re-importation of the goods.

Where goods on re-importation are liable to duty, the value of such goods shall be the amount of the increase in value attributable to: a) Repairs outside the Partner State; b) Equipment or other goods added and related work done outside the Partner State; c) Processing or manufacturing done outside the Partner State; d) Any other costs incurred outside the Partner State

However, goods temporarily exported for repair free of charge on account of a contractual obligation if established by the Commissioner shall be released without payment of taxes nevertheless, this shall not apply where account was taken of the manufacturing defect at the time when such goods were first released for home Consumption.

19.0 | Export under the Simplified Regime

The SE1 is configured in Asycuda world like any other regimes but unique because of its simplified nature purposely to ease cross border trade which is normally informal in nature Briefs on;

19.1 The regime • It's a self-clearance by the exporter and no need for a customs clearing agent. • It's captured by customs officers hence saves the cost of a hiring the services of clearing agent. • Exporter TIN is not mandatory unlike other formal regimes. • No rigorous export transaction documents required • The SE1 declaration takes shorter time than other declarations since some boxes on SAD are optional • The value of goods under this regime is less or equal to $2000 • The regime is facilitated with a simplified certificate of origin(SCOO) which is manually issued at the border of exit

19.2 Process flow a) Present goods to exports desk/front desk/market desk for inspection with all relevant transaction documents (E.g. Receipt, Simplified Certificate of origin, Identity card) b) Customs office captures/registers a simplified export entry (SE1) with the documents in 1 attached. c) Assessment forms generated where applicable especially for exports that

attract levy e.g. un-processed minerals, raw fish, raw hides and raw Tobacco, minerals. d) Payment made in the bank of choice (Presence of pay way machine, Agency Banking, mobile banking and commercial Banks proximal to the processing desk) e) System release and exit of goods by customs

20.0 | Exemption Regimes

The EACCMA outlines goods that shall not be charged duty under the 5th schedule. This is done in 2 parts:

PART A: SPECIFIC EXEMPTIONS A. Goods imported or purchased before clearance through the customs by or on behalf of privileged persons and institutions • The Presidents. Goods for use by the Presidents of the Partner States. • Partner States Armed Forces. All goods, including materials, supplies, equipment, machinery and motor vehicles for the official use of Partner States Armed Forces. • Commonwealth and Other Governments

B. Goods consigned to officers or men on board a naval vessel belonging to another Commonwealth Government for their personal use or for consumption on board such vessel. • Diplomatic and First Arrival Privileges • Household and personal effects of any kind imported by entitled personnel or their dependents • One motor vehicle which the ministry responsible for foreign affairs of a Partner State is satisfied as having been imported as a replacement for a motor vehicle originally imported. • Goods for the official use of the United Nations or its specialized agencies or any Commonwealth High Commission, or of any foreign embassy, consulate or diplomatic mission in a Partner State. • Goods for the use of a high official of the United Nations or its specialized agencies, or a member of the diplomatic staff of any Commonwealth or foreign country, where specific provision for such exemption is made by the minister responsible for foreign affairs. • Goods for the United Nations or any of its specialized agencies for the support of a project in a Partner State. C. Donor Agencies with Bilateral or Multilateral Agreements with the Partner States D. International and Regional Organizations. Goods and equipment imported by donor agencies, international and regional organizations with Diplomatic

accreditation or bilateral or multilateral agreements with a Partner State for their official use. E. The War Graves Commission. Goods, including official vehicles but not including office supplies and equipment and the property of the Commission's staff, for the establishment and maintenance of war cemeteries Commission.by the Commonwealth War Graves F. Disabled, Blind and Physically Handicapped Persons Materials, articles vehicle, which: and equipment, including one motor • are specially designed for use by disabled or physically handicapped persons or; • are intended for the educational, scientific or cultural advancement of the disabled for the use of an organization approved by the Government for the purpose of this exemption G. Rally Drivers. One motor vehicle for each driver and spare parts specified in accordance with schedule 5 EACMA H. Goods and Equipment for Use in Aid Funded Projects

PART B-GENERAL EXEMPTION Goods imported or purchased before clearance through customs a) Aircraft operations b) Containers and pallets c) Deceased Person's Effects d) Fish, Crustaceans and Molluscs e) Passengers' Baggage and personal effects f) Samples and Miscellaneous Articles g) Ships and Other Vessels h) Preparations for cleaning dairy apparatus i) Mosquito nets and materials for the manufacture of mosquito nets j) Seeds for Sowing k) Chemically defined compounds used as fertilisers l) Museums, Exhibits and Equipment m) Diapers, Urine bags and hygienic bags n) Diagnostic Reagents and Equipment o) Horticulture, Agriculture or Floriculture Inputs p) Packaging Material for Medicaments q) Education. Educational Articles and Materials as specified in the Florence Agreement. r) Splints for use in the manufacture of matches s) Inputs for use in the manufacture of agricultural equipment t) Relief goods imported for emergency use in specific areas where natural disaster/calamity has occurred in a Partner State u) Hotel Equipment v) Refrigerated trucks

w) Speed Governors x) Computer Software y) Electrical Energy saving bulbs for lighting also known as Compact Fluorescent Bulbs z) Specialized Solar equipment and accessories aa) Unbleached woven fabrics of a width 80 inches and above imported for manufacture of textile materials bb) Items imported for use in licensed hospitals cc) Motor vehicles specially designed for refuse/garbage collection

21.0 | The Single Customs Territory (SCT)

21.1 Definition of Single Customs Territory A Single Customs Territory is the full attainment of the Customs Union achievable through removal of trade restrictions including minimization of internal border controls. It is about achieving free circulation of goods in the Customs Territory in order to reduce the cost of doing business.

21.2 Features of SCT • Goods are cleared at the first point of entry; • One Customs declaration is made at the destination country • Taxes are paid at the point of destination when goods are still at the first point of entry; • Goods are moved under a single Regional bond from the port to destination; • Goods are monitored by electronic cargo tracking system; • Interconnected Customs systems

21.3 Benefits from the SCT These include • Reduced turnaround time for transporters. • Reduced clearance time and the cost of doing business. • Reduced the risks associated with non-compliance on the transit of goods; • Enhanced trade in locally produced goods. • Enhanced the relationship between the private and public sectors; • Efficient revenue management; • Enhanced application of Information Technology and data collection at the regional level • Synergy through shared resources and utilization of economies of scale.

21.4 Countries involved in the SCT The EAC Partner States - Burundi, Kenya, Rwanda, Tanzania, Uganda and South Sudan

Revenue Authorities have deployed officials to the first points of Entry to facilitate the smooth operations of the SCT. URA has deployed officers at Port of Mombasa, different locations in Nairobi, Nakuru, Eldoret, Kisumu, and Port Of Dar es salaam.

21.5 Requirements for stakeholder to transact under the SCT 21.5.1 Importers & Exporters • Appoint a licensed clearing agent/or get licensed for own clearance • Develop a working relationship with shipping line agents • Knowledge on SCT process and documentation

21.5.2 Customs/Clearing Agents • Acquire license from respective Revenue Authorities • Execute a Regional Bond Guarantee • Register with Port Authorities • Develop a working relationship with shipping line agents

21.5.3 Transporters These need to acquire Transit License from the respective Revenue Authorities. Customs/Clearing Agents involved in the clearance process may choose to operate under the Mutual Recognition of Customs Agents and/or relocate to the First points of Entry (Dar es Salaam, Mombasa)

Note: those who wish to operate businesses in other Partner States must meet the legal requirements for business registration. Customs/Clearing Agents that are licensed by one Partner state are recognized in the other Partner states and are granted access rights to operate in the respective Customs Systems to facilitate the clearance of cargo destined to and from their respective countries.

21.6 Handling Customs clearance in a partner state The Customs Agent can handle processes in another country where they have no presence. The Customs agent may nominate another agent to handle Port Processes, the nominated agent is captured in Box 51 of the SCT declaration.

21.7 Clearance of goods under the SCT Under the SCT; • Manifests submitted to Kenya Revenue Authority (KRA) and Tanzania Revenue Authority (TRA) by shipper prior to Vessel arrival • KRA /TRA transmits manifests to the respective Revenue Authorities; • Importer/Agent accesses manifest data in the respective Revenue Authority Customs Systems and makes a customs declaration/Entry. • Taxes are paid at destination Partner state for duty paid cargo using respective national currency.

• Physical verification of selected consignments may be carried out at a designated area as may be determined by the respective Revenue Authority • Release is issued from destination Revenue Authorities • Removal of goods from first point of entry.

Transit declaration only apply to goods originating from foreign countries and destined to countries outside the EAC region. Movement of goods within the EAC Partner states is referred to as "transfer of good" • Acquire knowledge in SCT & training in other Revenue Authorities Customs systems • Acquire access rights in the other Revenue Authorities Customs systems. • Sensitize their clients

A regional Bond guarantee is applicable for goods declared for warehousing, temporary importation, transit and on duty remission/ exemption. There's no bond guarantee for goods where taxes have been paid at destination.

The Customs Agent responsible for the clearance of the cargo shall supervise the physical examination of the goods. It's possible to sell goods where duties and taxes have been paid in another Partner State other than the destination country subject to approval from the Commissioners of Customs of the destination state and the state where the goods are to be sold.

21.8 Treatment of locally produced goods treated under the SCT Goods produced in the region are not subjected to import duty when transferred to another Partner State if they meet the EAC rules of origin criteria. However, these goods shall be subjected to domestic taxes which must be paid before the goods move from the country of origin to the destination Partner State. How is the SCT addressing the problem of several weigh bridges along the transit/transfer routes? Partner States have reduced the number of weigh bridges. • Northern Corridor: Cargo in transit/transfer is weighed once • Central corridor: Cargo in transit/transfer is weighed at 7 weigh bridges from 23. • Implementation of the use of weigh in motion weigh bridges where trucks conforming to the required weights do not stop

21.9 Responsibility if the bonded cargo does not reach its intended destination The clearing agent executes a regional Bond Guarantee for Bonded Cargo and is therefore responsible for ensuring that it reaches the final destination.

21.10Responsibility for the security of goods along the corridors Whereas the Partner States provide security, the responsibility of securing the

goods lies with the customs clearing agent, the transporter and the owner.

21.11 How Other Government Agencies (OGAs) of the destination Partner state are involved in the clearing process Some Government agencies have positioned their staff at the first points of entry and/or developed working relationships with the relevant OGAs in the Partner state of the first point of Entry.

21.12 Cargo Manifest (C2) It is a cargo movement document issued by the partner state where the goods are originating from. It is sometimes referred to as a "cargo manifest."

21.13 Container Freight Stations These are extensions of the port which are licensed by the Commissioner of Customs for the purpose of storage and clearance of goods and to ease congestion at the port.

21.14 Clearance of containerized Motor vehicles handled under SCT All containerized Motor Vehicles are cleared under the warehousing Regime (WT8). They are consigned to a general goods Bonds and NOT a Motor Vehicle Bond.

21.15 Clearance of re-exports to Partner States under SCT A step by step process i. Agent (on behalf of the consignee) presents the purchase documents/sales contract and a copy of the IM7 to the bond officer. ii. Bond officer generates a manifest with as per the documents presented by agent. iii. Bond officer issues the manifest to the clearing agent to enable capturing of an SCT declaration in the country of destination. iv. The agent includes manifest number in SCT declaration that is generated in the destination country system. v. SCT declaration is released in the destination country and transmitted into URA ASYCUDA system vi. Bond officer accesses the declarations, confirms the declaration and uploads a Verification Account. vii. Bond officer generates a cargo movement document (C2) and issues it to agent. viii. Cargo is flagged off ix. Customs officer at the border 'exits' the consignment upon arrival at the Exit Border.

21.16 Importation of Motor Vehicle Units alongside some goods

The agent is required capture two (2) separate Entries; one for the Motor Vehicle Unit - this may be a warehousing Entry (WT8) or an IM4 (Payment of Taxes), and another one (IM4) for the goods. Both Entries should be inspected accordingly.

21.17 Clearance of exempted goods treated under SCT All Exempted goods are cleared under the Warehousing Regime (WT8.) The goods are secured under an RCTG bond, and an exemption entry processed on arrival at destination partner state.

21.18 Clearance procedures in case of eventualities such as accidents, thefts and fire The following is the procedure; • Obtain incident report and Scene of Crime from Police Authorities, Revenue Authority of the state where incident happened, nearest URA office and any other related evidence e.g. Pictures of the Scene etc. • Obtain a Taxes demand note from state/country of incident • Submit Report/ Refund Claim (for IM4s) to Assistant Commissioner Enforcement for further investigations and processing.

21.19 Stripping/ de stuffing of containers This simply means It is possible for goods imported through the Port of Mombasa Port to be de- stuffed. A client is required to seek formal approval from the Manager Mombasa URA and Manager Enforcement KRA before such an Entry is captured. The approval letter is attached on the Entry. The Goods are captured as Bulk goods and processed as such.

Note: If Ugandan destined goods arrive at the ports and are not entered for Customs Clearance, the goods not declared within 21 days are liable for auction (refer to ECMCMA)

21.20 Clearance of groupage or consolidated cargo handled under SCT All groupage cargo is cleared under the Warehousing regime (WT8) as declared on the master Bill of Lading. Deconsolidation/ breaking bulk shall be done when goods arrive at destination partner state.

21.21 Handling a Bill of Lading with several units/containers destined to different bonds The Bill of Lading will be cleared on one entry i.e. total write off of bill of lading (apart from bulk consignments like wheat, fuel, CPO etc where part clearance can be done) and thereafter, a bond to bond effected at arrival at the bond of destination respectively.

21.22 Clearance of Motorcycles through a Ware housing Regime (WT8) The Regional Customs Transit Guarantee Bond that is used to secure warehoused Goods (WT8) that are on transit within the COMESA and the EAC Regions. The RCTG is housed and managed in The RCTG MIS system by the COMESA RCTG Technical team

21.23 Retiring the RCTG bond The RCTG Bond is retired at assessment of subsequent IM7 or IM4.One cannot use an RCTG bond number for another declarant in the declaration. (WT8). These are configured in the system and tagged to the respective declarant's TIN.

The declarant must monitor the performance of their RCTG accounts. E.g. bond balances, active carnets etc. the declarant can acquire rights in the MIS system from COMESA RCTG technical team.

22.0 | Automated System for Customs Data (ASYCUDA)

ASYCUDA World is an online system used for processing transactions of all goods imported or exported out of the country. The system allows self-declaration, assessment and payment of taxes by the importer/exporter. It also allows users to process customs declarations from anywhere around the world. It is also possible to attach and submit commercial documents.

22.1 Accessing ASYCUDA World Any internet web browser such as Internet Explorer, Google Chrome can access ASYCUDA World, on the Customs website at http://asyworld.ura.go.ug and it can also be accessed through the single window page as http://singlewindow. go.ug/uesw/Downloads The computer should have a memory (RAM) of at least 4GB and above, processor of 1.6 GZ, Java8 version 202. One may need any type of printer and a document scanner for scanning all commercial documents to attach to the declaration. There is need for an Adobe Reader for reading documents in PDF format. ASYCUDA World application doesn't need to be installed on your computer; you access it through the internet. A user logs in at once and is able to access all modules attached to his/her customer account.

22.2 Authorization The persons are authorized to use the system include Licensed Clearing Agents, Bond Keepers, Customs Officers, Cargo Handlers, and Importers/ Exporters. However, in order to access, all users have to complete a user rights application form which is downloaded from the home page of the custom's help tool site. The user rights application form has to be signed by the company Chief Executive Officers and approved by the Customs Station Managers. The form as earlier

indicated can be accesses on the link provided. All these forms can be submitted to the customs system and procedure section through the help tool which is help.ura.go.ug Login if you already have an account, if not then you will be required to create one. Select the right classification as; Creation of user Rights. The forms shall be received by the client support unit that creates the access rights in the system. All parties involved in the international trade chain have to abide by law (East African Community Customs Management Act) and all the necessary laws application

22.3 Registration to get user rights

• To get the form for user rights, the client downloads them from the home page of the customs help-tool. • Click on the link for forms, • Click on the URA external user rights Access forms or internal user rights access forms. • Fill in the relevant information. • The forms should be signed and have a company stamp or a seal. • They should be submitted through the customs help tool under the classification as; Creation of user Rights. For the external stakeholders, it can be downloaded from the Single Window Portal on this link https://help.ura.go.ug/downloads/uraexternal_userrights.pdf

22.4 Logging into Asycuda World involves the following Go to the website address - http://asyworld.ura.go.ug and login using your user name and password. You may fail to log in if you have; a) Supplied a wrong password b) Misspelt your password c) May be using uppercase instead of lowercase or vice versa

A password is important because it unlocks the system for you as authorized user. It is similar to your ATM passcode that you use to withdraw or deposit money in your bank account. It should be known and used by ONLY you!! The system uses the password for identifying authorized users to access the system. A password acts like an access card when combined with your user name. A password in ASYCUDA WORLD expires after about 90 days.

Passwords must never be shared in ASYCUDA World. In the event that you shared and you discovered that you did, the URA may institute criminal charges against you and or your company's operations may be suspended among others.

22.5 Declarations in Asycuda World

You need the services of a clearing agent to clear any goods in ASYCUDA World on your behalf. A list of such agents is available on the URA web portal; http:// ura.go.ug and is updated periodically. • The importer shall log into his portal account then click on customs Agent appointment, then customs clearing agent, • You can appoint, view or deactivate agents. • Please note; the importer can appoint any number of clearing firm but only 3 can be active at a particular time. • After the importer has appointed the clearing firm, the firm shall confirm the appointment either by accepting or rejecting the appointment The agent logs into ASYCUDA World, captures declaration, validate and assesses it, and the importer/exporter pays their taxes without giving the money to the agents to pay on their behalf. In fact it is advisable that the importer does the payment (himself/herself) in the bank against the generated PRN • A declaration is rendered submitted after assessment, with or without payment required. This is why after assessment the agent cannot do any amendment on the declaration assessed and if the payment is not made within the specified period the importer TIN is suspended in the system. Any amendment of the information provided on the declaration after assessment is made by customs. Before assessment, all the necessary documents shall be scanned and attached to the declaration. Such scanned documents should not be greater than 500 kilobytes (KBs) in size.

You may need to come to URA if customs require you to provide additional information to complete a customs clearance such as physical examination of goods. However, it is envisaged that the declarants may not need to come to Customs offices since documents can be scanned and submitted from wherever one is using the internet.

No declaration shall be processed by customs if the payment is required and no payment has been done.

22.6 Tracking a customs declaration There is a query module in the system where an officer will query the entry/ declaration and the agent shall reply any query or inquiry made on the entry lodged within the ASYCUDA system. Importers and clearing agents may also send inquiries on customs clearances through the customs help-tool and select the right classification. Entry status can also be viewed on the help tool by a particular importer.

23.0 | Customs Trade Facilitation Initiatives

23.1 Security and Facilitation in a global Environment (SAFE) SAFE is a World Customs Organisation (WCO) standard frame work document developed by the WCO member countries represented by their heads of Revenue administrations at its headquarters in Brussels in 2005 with major objectives of enhancing trade facilitation and promoting supply chain security. The SAFE has got three major pillars;

a) Customs-to-Customs network arrangements This emphasizes the need for customs administrations globally to build closer working relationships to enable • Customs receive advance cargo information and proceed with pre arrival clearance of the cargo, thereby saving the clients' time. • Harmonization of Customs procedures with other authorities that reduces cost of doing business • Ease exchange information on risky cargo which poses a security threat to society among the different customs authorities

b) Customs-to Business Partnerships The second pillar, is where the Authorized Economic Operator Scheme (AEO) is derived from. Each Customs administration establishes partnership with the private sector in order to involve it in ensuring the safety and security of the international trade supply chain. These receive tangible benefits in such partnerships in the form of expedited processing and other measures.

c) Customs-to-Other Government Agencies co-operation. There are many governmental agencies which cooperate with Customs in the area of supply chain security. This is where we have the Coordinated Border Management and Electronic Single Window Compendiums that impact on and guide cooperation between Customs and Other Government Agencies and Inter-Government Agencies. All these standards are geared towards enhancing trade facilitation and promoting supply chain security.

23.2 AEO as a trade facilitation tool Authorized Economic Operator program is a trade facilitation initiative derived from the World Customs Organization Safe Framework of Standards which Uganda Revenue Authority Customs Department implemented in a bid to facilitate trade and promote security of the international trade supply chain.

Uganda Customs therefore seeks to build mutual partnership with businesses that consistently strive to comply with Customs Laws and regulations and in return, such businesses will benefit from the Customs preferential treatments and

simplified procedures in the clearance process proposed under the AEO Program.

23.2.1 Defining who an AEO is An AEO is an individual, a business entity or a government department that is involved in international trade and is duly authorized by the Commissioner of Customs of Uganda Revenue Authority. Prospective clients include • Manufacturers (who are involved in export and import) • Customs clearing agents • Bonded ware house keepers • Importers and Exporters • Transporters and Freight forwarders

23.2.2 Objectives of the Uganda AEO scheme • Enhance international trade facilitation by promoting and rewarding good business practices • Promote Customs to business partnership • Promote Customs to Customs partnerships • Promote government inter-Agency (Customs to government Agency partnerships) • Promote security of international trade supply chain • Promote voluntary compliance to customs laws and procedures among our clients

23.2.3 Eligibility criteria for becoming an AEO Customs has developed eligibility criteria, in this criteria is a MUST do list that an intending individual/business should qualify for or is willing to attain in order to be authorized by the Commissioner of Customs. i. The individual/business must be involved in international trade ii. Be able to install and use the customs automated system e.g. Asycuda, e-tax. iii. Must have a good compliance history with Uganda Revenue Authority of at least three years. iv. Must be financially sound\should not have filed for bankruptcy in the past v. Must have implemented the AEO compliance program.

23.2.4 Step by step process of attaining an AEO status Step 1: Expression of Interest in writing to the Commissioner Customs Department Step 2: Preliminary consultation with Customs AEO Team: Interested parties are provided with information about the AEO Program Step 3: Application; a prescribed form is submitted to Customs with the relevant supporting documents Step 4: Vetting of Applicant; Customs vets the application and all the supporting documents to confirm whether the Applicant is eligible Step 5: On-site Inspection; Customs conducts inspection of the Applicants

premises to confirm the information provided in application form and supporting documents Step 6: Authorization; upon satisfying all the requirements the applicant is approved as a Customs Authorized Economic Operator by the Commissioner

23.2.5 Immediate benefits of the AEO Program to Business i. Pre-arrival clearance of cargo; i.e. the importer or exporter can process the documents for their cargo with customs prior to the arrival of cargo at the customs area/port. ii. Reduction in average clearance time observed so far: Clearance Time reduction from Mombasa to Kampala from 18days to 4Hrs & Average OSBP Border Clearance 30minutes from 4hours iii. Priority treatment at all times while dealing with Customs. Customs will fast track the process of cargo clearance for the AEO clients, giving them priority over others. iv. Choice of place of physical examination in case there is need to perform physical examination on cargo. The AEO client will have the opportunity to select any convenient place for the examination of their cargo should their cargo be selected for examination to avoid multiple loadings & offloadinds which helps him save the cost. v. Automatic renewal of Customs Licences like Agency and Bonded Warehouse licencesOperator-management of Customs Bonded Ware vi. Withholding Tax exemption vii. Priority to participate in URA activities viii. Secured parking space at the URA Tower ix. AEO national working Group, an advocacy team for better management of the Program

23.2.6 Long term benefits to the business; i. Reduction in the Cost of doing business. ii. Enhanced reputation and image. iii. Increased business turnover. iv. Improved quality of service. v. Trustworthy and compliant business. vi. Improved Internal Control Systems. vii. Mutual Recognition.

23.2.7 The Regional AEO program (EAC Region) At the Regional level, the Customs Administrations in the East African Community adopted the Authorized Economic Operator (AEO) Policy Framework that aims at increasing Revenue performance through facilitating trade, strengthening the customs to business partnership as well as securing the regional and ultimately,

global supply chain.

The regional AEO program therefore runs alongside the national program. An applicant to the regional AEO is expected to be familiar with the AEO Program after having participated as a National AEO Operator.

23.2.8 Carrying out business outside Uganda as a Ugandan AEO There is an arrangement under the AEO Program called Mutual Recognition Arrangement, aimed at extending recognition of the AEO status to countries with whom we have signed the Arrangement. , it involves a country's government, formally recognizing the AEO Program of another country's Program and thereby granting benefits to the AEOs of that country.

This can be at a bilateral, or multilateral arrangements. For this to happen; • The AEO programs in both countries should be consistent with the WCO SAFE Framework of standards.Standards are applied in a uniform manner so that one Customs administration may have confidence in the authorization of another country.

23.2.9 Trade facilitation benefits to the regional AEO operators The AEO shall be allowed under the EAC Regional Authorized Economic Operator Program to enjoy the following benefits;

Importers/Exporters/Manufacturers • Expedited processing of entries/declarations - AEO declarations will be given priority throughout the whole clearance process. This will include; o Automatic passing of declaration. o Once all conditions for lodgment of a declaration are fulfilled by the AEO, the declaration shall be lodged and thereafter system released. • No physical or document examination except for random or risk based interventions/exceptional cases. Where the AEO declaration is randomly selected to the red or yellow lane, priority treatment shall be given during examination. The AEO shall also have the option to choose the location for the physical examination. • Expedited payment of refund claim. o Priority shall be given in processing of the refund claims. Where applicable, some procedures will be simplified for the AEO. • Reduced Customs security wherever applicable o Subject to relevant provisions of law/regulations, consideration for a lower Customs Security on a case-to-case basis will be granted to the AEO.

Customs Agents • Guaranteed renewal of Customs agent's license • The renewal of the AEO Customs Agent's license shall not be subject to the vetting process but the AEO shall be required to make payment for licensing fees and any other related payments. • Priority to participate in Customs initiatives • The AEO will be given first opportunity to take part in new trade facilitation initiatives within EAC Revenue Authorities. • Priority treatment in cargo clearance chain • Any consignment declared by the AEO Customs Agent will be processed before the non-AEO declarations. • Waiver of movement bond for AEO • The AEO's goods in transit to the warehouses will be exempted from movement bond requirements. This will only apply to consignments where the Importer/Exporter, Customs Agents, and the transporter are ALL AEOs.

Transporters • Guaranteed renewal of transit goods license and any other licenses issued by Customs: The renewal of licenses issued by Customs will not be subject to the vetting process but the AEO shall be required to make payment for licensing fees and any other related payments. • Exemption from the mandatory use of Customs Electronic Cargo Tracking System (ECTS): In cases where the ECTS is required, the AEO will enjoy the benefit of optional use of ECTS. • Priority clearance at the borders: Consignments transported by the AEO will enjoy expedited border processes.

Warehouse Operators • Self-management of bonded warehouse: The AEO will be granted the privileged to self-manage his/her bonded warehouse. Self-managed Bonded Warehouse is a facility extended to a warehousing Operator where the responsibilities of a Customs Officer are delegated to the Bonded Warehouse Operator. The Warehouse Operator is required to adhere to the provisions of the law and any other conditions that may be given by the Commissioner. This enhances flexibility of Bonded Warehouse Operations in terms of time and cost. • Guaranteed renewal of AEO Warehouse Operator's license: An AEO shall not be subject to the vetting process but the AEO shall be required to make payment for licensing fees and any other related payments. • Reduced Customs security wherever applicable: Subject to relevant provisions of law/regulations, consideration for a lower Customs security on a case-to-

case basis will be for an AEO.

23.2.10 Treatment of AEOs under special circumstances

23.2.11 Verification of AEO consignments All AEO importers are blue lane companies which means risks are addressed through post importation audit, examination can only be made on a risk-based assessment.

In the event that system challenges arise, the Manager, Supervisors and Station heads always ensure that AEOs are given priority.

23.2.12 AEO Agent clearing non AEO client The AEO agent is given priority treatment, the transaction will none the less go through normal procedures as required.

23.2.13 AEO client cleared by non AEO agent The AEO client gets all the benefits enjoyed by an AEO

23.2.14 Outstanding/ audit queries on AEO transactions In case of AEO outstanding transactions/audit queries, the supervisor AEO center and customs audit division contact the AEO to give him/her an opportunity to explain the case and resolve the issue. In the event that there's information that points to noncompliance with AEOs, this is immediately brought to the attention of the Assistant Commissioner Customs audit.

23.3 Regional Electronic Cargo Tracking System (RECTS) With the support of Department for International Development (DFID) through Trademark East Africa (TMEA) the three EAC countries Kenya, Uganda and Rwanda were able to implement a Regional Electronic Cargo Tracking System that provides 24x7 real time monitoring of transit goods.

The system which is premised on GPS technology offers real time location of a truck on which an electronic seal is attached and an alert is triggered in-case of tampering or diversion of such a truck.

RECTS aims at; i. Having a harmonized regional e-monitoring that eases tracking of transit cargo and is done in the different Central Monitoring Centers (Kampala, Kigali, Nairobi and DRC) thereby facilitating a single view of cargo tracking along the corridor. ii. Protecting government revenue through minimizing diversion of Transit Cargo.

iii. Enhancing transit information exchange among the user EAC countries. iv. Eliminating Non-Tariff Barriers (NTBs), in order to reduce transit times (border scenario) and reduce the cost of doing business. v. Align the ECTS with the Single Customs Territory and the Regional Customs Transit Guarantee (RCTG) Bond. (One declaration, one bond, one tracking system). vi. Reduced clearance times given the seamless flow of transit cargo and cost of doing business vii. Enhanced Cargo security since system provides real time detection of transit violations and rapid response teams are on standby to counteract any violation. viii. Monitoring Truck driver compliance with COVID 19 SOPs through The Regional Electronic Cargo Tracking integration with the Diver System (RECTDS).

23.3.1 How RECTS works • The system uses GPS/GPRS technology, an effective tracking technology • Targeted units, box body trucks, tankers and containers ferrying transit goods under URA's control are fitted with a tracking device which sends the seal status, truck location and any violation information to URA on real time basis • Once the seal is activated, cargo is monitored from start to destination • The truck is expected to move along gazette geo-fenced routes • Everything that happens to the cargo is recorded and reported simultaneously with every incident being time stamped together with the location of occurrence • Any violation including movement outside the geo- fenced route or tampering with the seal is detected and reported immediately to the Central Monitoring Centre (CMC) • Alerts are sent both via e-mail and SMS to pre-defined persons • The Rapid Response Unit (RRU) deployed at strategic points reacts to alerts as directed by the CMC • Truck driver equipped with smart phones, installed with RECTDS which comprises of their encrypted COVID 19 health status (COVID 19 Test Certificates) are monitored during the transit movement.

23.3.2 Benefits of RECTS To the private sector • There is reduced cost of doing business. • Currently we are tracking 25% of National cargo in Transit and 75% of maritime cargo. 100% of exports to Kenya are all e-tracked. • Transit time has reduced from 7 to 2 days for National transits and 14 to 5 days regional Transits. Real time monitoring has left no room for time wastage on transit routes.

• Delayed departure results into accumulation of demurrage • Real-time monitoring of transit cargo. • Safe and secure arrival of the goods to their destination • The transporters, clearing and freight forwarders have an opportunity to efficiently monitor their respective businesses in the logistics supply chain • The clearing agents are saved the burden of suspension due to transit diversion • Better negotiation grounds for discount on insurance costs

To transporters • Ability to see the location of their trucks all the time using their mobile devices • ECTS provides a system report as evidence of arrival at destination • Transporters can monitor the effectiveness of their drivers i.e. speed, location of parking, diversion from agreed routes • Reduced costs i.e. fuel, facilitation for drivers • Increased turnover due to reduced customs physical controls, hence more income • Reduced tear and wear and increased life span of the truck due to full time monitoring • Transporters are able to bill their clients more accurately • Improved customer service • Ability to manage and communicate with your fleet via mobile device and receive exceptional alerts when the consignee is away from office • Insurance discounts due to the enhanced confidence from an assured business tracking system • Theft recovery; minute by minute tracking helps to identify the exact location of one's vehicle which enhances theft recovery

To Manufacturers • Fair terms of trade due to system efficiency • Monitoring goods in their warehouses • Reduced costs i.e. on escort charges, fuel, facilitation for drivers • Increased turnover due to reduced customs physical controls, hence more income • A manufacturer is able to bill his/ her clients more accurately • Ability to monitor the location of their goods all the time • Provide system report as evidence of arrival at destination • Theft recovery; minute by minute tracking helps to identify the exact location of your goods hence enhancing theft recovery

23.3.3 Obligations of each party in the RECTS functionality Transporters: • Fulfil the terms and conditions for trucks licensed to carry goods in Transit

• Pay the Transit Goods License as required by the EACCMA 2004 • Supervise drivers to ensure compliance with the transit rules and regulations

Drivers • Provide accurate information in form of preceding transaction clearance documents • Submit the correct personal mobile contacts for ease of contact • Keep within the gazetted transit routes while conveying transit goods • Report any transit incidences to the nearest Customs station on time • Respond to inquiries and queries paused by Customs in the course of movement

Clearing agents: • Execute a transit Bond with the Insurance companies • Prepare accurate transit declarations (IM8), and attach all the necessary accompanying documents • Account for all the outstanding transit transactions within the schedule

• Monitor the movement of goods in Transit to avert possible diversion. This is done through: • Generation of the Transit document (T1) • Respond to transit incidences (e.g. seal breakage and cargo diversion among others • Facilitate transit related activities like transshipments and change of destinations • Respond to Transit Alerts generated in the course of Transit, and • System validation of arrival at the destination station

23.4 Uganda Electronic Single Window (UESW) The UESW provides a platform on which all parties involved in trade and transport can lodge standardized information and documents at a single point to fulfill all import, export, and transit -related regulatory requirements. The System is built on ASYCUDA World platform and shall be used by majority of the government agencies and clients to perform international trade related transactions

The Vision: To be leading single access platform for international trade facilitation

The Mission: To provide transparent, efficient, integrated electronic environment that will reduce the cost of doing business and increase trade competitiveness

23.4.1 Reasons for implementing the Electronic Single Window To develop and implement the UESW system that is fully automated and web based in order to facilitate trade through; • Efficiency; streamlined procedures that are cost effective • Transparency; i.e. accurate, reliable and timely information online • Competitiveness; through improved conditions of doing business, capacity building and use of technology

23.4.2 Why Government of Uganda embarked on the National Electronic Single Window project • Establishing a system to allow importers and exporters submit trade related information electronically to fulfil import, export and transit regulatory requirements • Enabling users to track the progress in respect to processing • Regulatory agencies can also inform traders and their representatives of the progress of the transactions

23.4.3 Expected benefits/outcomes • 30% reduction in transaction costs for the private sector at URA, NDA, UNBS, UCDA, MAAIF, MEMD and UEPB including demurrage, administrative costs and improved service delivery • 30% reduction in the average trade document processing time (days) at the above institutions; • 30% reduction in number of documents (physical paper) required for clearance of exports, imports and transit through the elimination of duplicate processes especially by regulators; and • A fully operational NESW system designed and operational at all major public and private sector trade regulatory institutions.

23.4.4 Impact of Single Window on agency business processes • The development of UESW system has automated 22 out of 30 border intervening agencies and economic operators who are now able to issue permits and certificates electronically. • Improved collaboration between government agencies • Platform is a catalyst for e-government given the targeted scope of the 30 MDAs. • Upgrading of the Customs ASYCUDA World system • Development of the Single Transaction Portal (STP) that includes bringing together all traders applications usually done by different agencies e-portals in to a single portal through which all traders will only transact with. • Standardized forms for all agencies and system linkages • Streamlined processes and One stop shop for trade and clearance information • Real time communication and follow up transactions between agencies

• The system enables agencies build strong risk management systems to monitor -accurate information, the compliance history and analyze risk. They are able to focus on real risk (for examination), target efficiently (document check), accelerate checks, and improve post audit • Linked agency systems to ease the clearance process • Integrate same data in both systems, to be used for different purposes • Reduction of clearance time and costs of doing business • Transparency in the supply chain, Increased revenues • High turnover due to ease of import, transit and export clearance procedures • UESW implementation has resulted in to improved cross border trade, clearance time, reduced cost of doing business, increase in revenue and provision of accurate and timely statistics have been noticed. I.e.

o Clearance time for imports has reduced from an average of 14 days to 4 days for selected institutions and under 2 days for exports and inspection results and quality certificates can now be shared electronically by agencies such as the UNBS & NDA to facilitate fast clearance. o Before the implementation of UESW system in 2015, trading across Border index was 161 whereas it has improved to 119 in 2019. The World Bank Doing business quoted some achievements made by UESW implementation as best practice o Uganda Coffee Development Authority, one of the agencies on the Single Window system reported estimated cost savings of 1.53 billion on transport of 15,333 containers annually as a result of coffee exporters fulfilling clearance requirements online, freight forwarders have reported average savings on stationery of UGX. 50m annually o The electronic sharing of preferential certificates of origin information with Rwanda eliminated charges saving clients over $85,966 business documentation costs in 2018.

23.4.5 Agencies involved: Development of interfaces with the different agencies. These include, 1) Lead Coordinating Institution: Ministry of Trade Industry and Cooperatives 2) Lead Agency: Uganda Revenue Authority i. Ministry of Energy and Mineral development, (Fuel marking by Global Fluids International, a company contracted by the ministry to carry out fuel marking for all fuel imports into the country), Payment interface has been finalized and now fully developed. ii. Uganda National Chamber of Commerce (Issuance of Non-Preferential Certificates of Origin) iii. Uganda Revenue Authority (Issuance of Preferential Certificate of Origin, automated Customs agent licensing, Bonded warehouse license module iv. Ministry of Trade, Industry and Corporative (licensing of tobacco exporters)

v. Uganda National Bureau of Standards (Sending Goods Inspection requests and Receiving Inspection results) vi. Ministry of Agriculture Animal Industry and Fisheries (Sending of Import and Exports Inspection requests and receiving inspection results for Fisheries, Animal and Crop Protection departments) vii. National Drugs Authority (Sending NDA inspection requests and receiving inspection results) viii. Uganda Coffee Development Authority (issuance of coffee export Certificates ix. Ministry of Foreign Affairs x. Ministry of Trade, Industry and Cooperatives xi. Dairy Development Authority xii. Uganda Free Zones Authority xiii. Warehouse Operators xiv. Clearing Agencies xv. Transporters xvi. Airlines xvii. Uganda Communications Commission xviii. Ministry of Water and Environment (Timber) xix. Atomic Energy Council

23.4.6 Reasons for implementing the Electronic Single Window • To develop and implement the UESW system that is fully automated and web based in order to facilitate trade through; • Efficiency; streamlined procedures that are cost effective • Transparency; i.e. accurate, reliable and timely information online • Competitiveness; through improved conditions of doing business, capacity building and use of technology

23.4.7 Why Government of Uganda embarked on the National Electronic Single Window project • Establishing a system to allow importers and exporters submit trade related information electronically to fulfil import, export and transit regulatory requirements • Enabling users to track the progress in respect to processing • Regulatory agencies can also inform traders and their representatives of the progress of the transactions

23.4.8 Expected benefits/outcomes

• 30% reduction in transaction costs for the private sector at URA, NDA, UNBS, UCDA, MAAIF, MEMD and UEPB including demurrage, administrative costs and improved service delivery • 30% reduction in the average trade document processing time (days) at the

above institutions; • 30% reduction in number of documents (physical paper) required for clearance of exports, imports and transit through the elimination of duplicate processes especially by regulators; and • A fully operational NESW system designed and operational at all major public and private sector trade regulatory institutions.

23.5 The Document Processing Centre (DPC) Uganda Revenue Authority, Customs Department reengineered the Customs Clearance procedures by implementing a Centralized Document Processing Centre (DPC) on the 25th of November, 2016 with an aim of achieving the following:

23.5.1 Objectives

• Receiving declarations online and processing them relying on the scanned attached documents • Dedicating a team of all round experienced customs staff to man the DPC • Isolating the DPC team from distractions/disruptions and to create a highly productive environment

processing function by ensuring that headquarter functions such as tariff, valuation, enforcement, National Targeting Centre and others, monitor the process and intervene in real time.

and reduce clearance time

statuses via email or SMS, with the identities of the officials remaining anonymous to the trader 23.5.2 Benefits of DPC implementation. • Improved productivity • Integrity Enhancement • Improved professionalism • Enhancement of specialization • Improved control of declaration processing • Easy Implementation of Standard Operating Procedures.