On April 24, URA Commissioner General John Musinguzi announced the ban on groupage cargo under container consignments, allowing only those with a house bill of lading. URA argues the decision is intended to curb alleged exploitation by container leaders—middlemen who reportedly inflate tax charges and manipulate revenue reporting.
Kampala traders, under their umbrella body Kampala City Traders Association (KACITA), have expressed dismay over Uganda Revenue Authority’s (URA) recent policy banning groupage cargo taxation and increasing customs valuation for garments and similar goods.
On April 24, URA Commissioner General John Musinguzi announced the ban on groupage cargo under container consignments, allowing only those with a house bill of lading. URA argues the decision is intended to curb alleged exploitation by container leaders—middlemen who reportedly inflate tax charges and manipulate revenue reporting.
Additionally, URA raised customs values on garments and related products, a move traders warn will significantly inflate their operational costs.
Traders Decry Increased Costs, Delays
Addressing journalists at the KACITA offices in Kampala, Chairperson Thaddeus Musoke Nagenda criticized the policy shift, saying it unfairly targets small-scale traders who lack the capital to ship full containers.
“Clearing each house bill entry comes with significant costs, including agency fees, capture fees, transfer fees, inspection fees, and warehouse handling charges. For small-scale traders with limited consignments, these expenses are unsustainable, which is why groupage provides a vital cost-sharing solution,” said Nagenda.
Traders argue the house bill of lading requirement will lead to prolonged cargo clearance periods, spanning months, and increased financial strain.
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Nagenda further expressed concern over URA’s unilateral decision-making without adequate stakeholder consultation, including container coordinators, shipping firms, and the traders themselves.
He reminded URA of Uganda’s obligations under World Trade Organization (WTO) rules, particularly the General Agreement on Tariffs and Trade (GATT), which mandates that customs valuations should be based on actual transaction values.
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Traders Call for Dialogue
KACITA spokesperson Issa Ssekito emphasized that most Ugandan traders rely on shared container shipping due to limited capital.
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Herbert Nsubuga, representing the United Attire Traders Association, urged URA to involve traders in policy formulation, warning that current practices are forcing many out of business.
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Call for Government Intervention
KACITA has since petitioned the Ministry of Trade, the Ministry of Finance, and Uganda Revenue Authority, urging a reversal of the policy.
They argue the move contradicts President Yoweri Museveni’s 2023 guidance to URA to refrain from introducing new business-related policies without consensus between the government and the private sector.
The traders now await a government response and warn of potential legal action if their grievances are not addressed.
Kamali. M James
Freelancer