Dicksons Kateshumbwa, Commissioner of Customs at Uganda Revenue Authority, said consignments of sugar cleared in Mombasa for warehousing in Uganda are now handled under the Single Customs Territory (SCT) arrangement — which allows for joint collection of customs taxes by the East African Community (EAC) partners.
Uganda has also added containerised refined edible oil, second-hand clothes and shoes as well as alcoholic and non-alcoholic drinks for clearance under the seamless tax system.

“In addition, SCT clearance procedures will also be extended to containerised cargo of the following products; bitumen, cement, steel and steel products with effect from September 7, 2015” Kateshumbwa further said in a notice to traders.

Under the SCT deal that began in 2014, importers of commodities are required to lodge the import declaration forms in their home country and pay relevant taxes first to facilitate the export process.

The tax authorities in the respective countries would then issue a road manifest against the import documents submitted electronically by the revenue authority of the importing country.

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Clearing agents within EAC have been granted rights to relocate and carry out their duties in any of the partner states as part of a strategy to improve flow of goods and curb dumping.

Several commodities including petroleum, steel, edible oils, confectionery and milk are currently traded between Kenya, Uganda and Rwanda under the SCT platform. Cement, cigarettes and neutral spirit were the first products to be handled under the scheme.

The latest move by Uganda is expected to reduce feuds with Kenya and other EAC members over importation of sugar.

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Sugar industry regulators and tax agencies in EAC have been involved in frequent standoffs over dumping of duty-free sugar within the region.

The feuds have mainly pitted Kenya against Rwanda and Uganda with the former accusing the two countries of abetting the malpractice that renders its own millers uncompetitive.

At a meeting in Kampala in July 2014, Rwanda was reprimanded and urged to step up surveillance on duty-free sugar imported into its market to avoid dumping in other EAC countries.

Source: Business Daily

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