KAMPALA, September 22, 2014: 12 new companies in Uganda will now experience faster goods clearance, instant renewal of licenses, increased business turnover and preferential treatment from the Uganda Revenue Authority (URA) as a result of newly acquired status as Authorised Economic Operator (AEO). The companies comprise of exporters and warehouse keepers. This brings a total of companies accredited in Uganda to 21.
An AEO in Uganda is an individual, a business entity or government department that is involved in international trade and is duly authorized by URA to self-manage key aspects of its customs processes previously handled by URA. An independent assessment on URA reported a reduction of clearance time for AEOs from 4days to 1 day implying they were able to double their operations; some AEOs have recorded costs savings ranging from USD100 to USD 200 per transaction/per consignment.
Speaking at the awarding ceremony, URA Commissioner General, Allen Kagina commended the companies that attained the special status. ‘’ I am proud of yet another 12 companies who follow the pioneer 10 we awarded the same status at about the same time last year, you are reliable and special partners of the Uganda Revenue Authority (URA)who are also a demonstration of the success story of the trade facilitation initiative reforms URA has developed over the years”.
“The growth of global trade and increasing security threats to the international movement of goods have forced customs administrations to focus more and more on programs/initiative reforms aimed at facilitating and securing the international flow of trade” she added.
Authorization grants a special status which allows the client to enjoy a range of immediate benefits when transacting business with Customs. These include Pre-arrival clearance of goods, priority treatment at all times while transacting business with Customs, no physical examination of goods, Automatic renewal of licenses once all necessary fees have been paid, Operators of bonded warehouses without customs control and being awarded managed Customs bonded warehouses and being awarded Withholding tax exemption status.
The AEO project is an initiative of the URA supported by TradeMark Africa that seeks to enhance trade by reducing the cost of doing business through simplifying customs procedures and reducing clearance time.
Allen Asiimwe, TradeMark EA Country Director applauded all the companies, ‘’ This is a step further in achieving enhanced trade environment for Ugandan traders and the region. It is remarkable to see the numbers of complaint companies grow in record time, which is a strong indicator of a bright future for Uganda’s economy”.
“As a development partner, we appreciate Uganda Revenue Authority for the dedication and commitment devoted to make this project a success story” she added.
Since implementation of the AEO program, there has been registered achievement in reduction in clearance time and costs for AEOs. An independent assessment on URA reported a reduction of Clearance time for AEOs from 4days to 1 day implying they were able to double their operations; some AEOs have recorded costs savings ranging from USD100 to USD 200 per transaction/per consignment.
The 12 companies that achieved the AEO status are Spedag Interfreight Ltd, General Machinery Ltd, Victoria Pumps Ltd, Victoria Motors Ltd, Victoria Engineering Ltd, Victoria Equipment Ltd, Rapid Kate Services (U) Ltd, Multilines International, Daks Courier Services, Union Logistics (U) Ltd, Bemuga Forwarders Ltd, DHL International (U) Ltd. The first group of 10 companies to achieve AEO status are ,British American Tobacco (U) ,Nice House of Plastics Ltd, Uganda Batteries Ltd, Jesa Farm Diary Ltd, Roofings Ltd, DHL Global Forwarders Uganda Ltd, Unifreight Cargo Handling Ltd,Steel and Tube Industries Ltd, Toyota Uganda Ltd and Bollore Africa Logistics Uganda Ltd.
Source: TradeMark Africa (TMA)
TradeMark Africa (TMA) is an aid-for-trade organisation that was established with the aim of growing prosperity in East Africa through increased trade. TradeMark Africa (TMA) operates on a not-for-profit basis and is funded by the development agencies of the following countries: Belgium, Canada, Denmark, Finland, the Netherlands, UK, and USA. TradeMark Africa (TMA) works closely with East African Community (EAC) institutions, national governments, the private sector and civil society organisations.
Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TradeMark Africa.