URA to revoke licenses of some clearing firms

Uganda Revenue Authority is set to revoke licenses of a number of clearing and forwarding companies that have in the last 11 months failed to clear their consignments within the stipulated two days.

According to Dicksons Kateshumbwa, the commissioner Customs at the tax collecting body, many put the blame of delays on URA yet it is the clearing agents that sleep on their job.

Kateshumbwa made the remarks during a clearing and forwarding licensing event where the tax body set up tight key performance indicators for the licensed customs agents.

URA was tasked with collecting Shs16 trillion for financial year 2018/2019. 

With this the tax body has a target of reducing the time taken to clear cargo from 3 and above days to 2 days.

It’s here that the tax body has decided to revoke licenses of some clearing and forwarding agents that did not hit the target in the last 11 months.

"You people waste a lot of time with people’s containers and they put pressure on Uganda Revenue Authority. Now it’s upon you to keep on delaying or lose your license," Kateshumbwa said.

In the last 11 months only 42%of the licensed companies managed to clear their goods within the 2 days target that was given by URA while 27% cleared their goods between two and half and three days

Although many managed to try their best to hit the set target other 121(31%) companies had consignment delayed for over 4 and above days adds Dickson’s Kateshumbwa - commissioner customs, URA

The move to revoke licenses will not also spare clearing and forwarding agents that have committed more customs offences in the last 11 months, the URA official said.

Most offences committed include under declaration while others assign goods the wrong codes in order to evade taxes.

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