Importers given three months to embrace local marine cargo insurance without penalties
Uganda Revenue Authority (URA), together with the Insurance Regulatory Authority (IRA) have urged traders to obtain marine cargo insurance policies for their imports from locally licensed insurance companies, prior to obtaining customs clearance.
The implementation of this move follows a July 31, 201 9 directive from the Minister of Finance requiring URA to provide the local marine cargo/goods in transit certificate of insurance on the Uganda electronic single window.
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The local marine cargo insurance officially took effect on July 1 2022.
Speaking to the media in Kampala, the Assistant Commissioner Public and Corporate Affairs at URA, Ibrahim Bbossa said the requirement for local insurance companies to provide marine insurance for goods in transit to Uganda will develop and grow the local insurance industry and ultimately boost the economy.
"The implementation of this directive will be done in a phased manner with a three-month grace period during which there will be no penalties. Importers with marine insurance coverage from off-shore companies will be facilitated while those with no form of insurance are compelled to purchase the local insurance during this transitory period," he said.
Bbossa called upon traders to embrace this new way of doing business because marine cargo insurance protects goods from risk of loss, damage, and theft during transit by sea, air, rail or road.
The chairman of Uganda Insurers Association(UIA), Latimer Mukasa said they have come up with the single marine cargo portal, a facility to support all importers to acquire insurance that protects them against loss or damage to their cargo from warehouse to warehouse.
"It is important to note that this platform is aimed at meeting the needs of importers that have been having challenges with acquiring insurance by now using technology to get closer to them," he said.
Traders under their umbrella body, the Kampala City Traders Association (KACITA) welcomed the move taken by the government to have importers take on compulsory local marine cargo insurance.
