What is the Individual House Bill arrangement, and how does it differ from the old system?
Dear Reader,
The individual house bill arrangement is an improvement in the way imported goods are cleared for Customs duties.
Under the individual house bill arrangement, every importer is required to clear goods using their individual TINs unlike the old system where the consolidator would clear the goods using their TIN.
Can I still use a consolidator, or do I have to ship everything myself?
Dear Reader,
You can still use a consolidator to help in shipping and transporting the goods up to the first entry point for example Mombasa.
Once the goods are at the point of entry, the consolidator will work with a clearing agent to get an individual House bill for your goods. Therefore, you do not have to ship everything yourself.
Does this new system increase the cost of clearing my goods?
Dear Reader,
No, the individual house bill arrangement does not increase the cost of clearing goods but instead reduces the cost of doing business since each importer pays the correct tax i.e. the amount of tax that relates to his/her consignment.
A taxpayer who uses their individual TIN to clear the taxes at Customs may be able to claim a credit for the Value Added Tax (VAT) and Withholding Tax (WHT) paid at importation unlike when these taxes are paid using the consolidator’s TIN.
What specific documents do I need to clear my goods under the individual house bill arrangement?
Dear Reader,
To clear goods under the individual house bill arrangement, an importer is required to furnish the following documents:
- The commercial invoice;
- House bill of lading;
- Packaging list.
Taxation on Re-imported Personal Vehicles:
If a Ugandan citizen is returning home with a vehicle they have been using abroad for personal purposes, what taxes or duties will be charged upon importation? Is there a tax relief option for returning residents?
Dear Reader,
The current legal framework provides tax relief to returning residents in respect to personal effects including motor vehicles where the following conditions are met:
The returning resident must have owned and used the motor vehicle for at least 12 months and the vehicle should have been registered in the name of the returning resident;
The returning resident’s stay in the foreign country should not have been interrupted within the 12-month period;
The motor vehicle is required to be within Uganda not later than 90 days after the return of the resident person.
Please note that a returning resident shall benefit from tax relief on only one motor vehicle.
Lack of Transparency in Customs Valuation:
Importers have long requested that URA provide publicly accessible, standardized customs values to enable better planning and budgeting. Why has this not yet been implemented? Could URA publish clear valuation guidelines to improve transparency and reduce disputes at points of entry?
Dear Reader,
URA has a data base for harmonized customs values that are reviewed on a quarterly basis in line with the General Agreement on Tariffs and Trade (GATT) to which Uganda is a signatory.
The values have been published on the URA web portal www.ura.go.ug and may be accessed by selecting Tax Education, then Customs valuation and then Revised General Goods Database to assist importers make informed decisions.
Please note that these published values are indicative, and therefore will not supersede the valuation principle, of “price paid or payable.’’
I would urge the Commissioner General to invest in tax education. When people understand taxes, know the importance of taxes and the fair assessments of these taxes that they are supposed to pay, I think everybody will embrace taxation, and this will translate to development.
Dear Reader,
URA has a fully-fledged division that handles tax education and has planned trainings that are meant to engage clients on a regular basis in every region, on tax related issues through Physical engagements, Tax hubs, workshops and Tax Katales.
In addition, URA runs a weekly publication in New Vision and Bukedde newspaper columns called “Ask the Commissioner General” and ‘’Buuza Komisona” respectively.
The Commissioner General is also hosted by UBC Television and other Television and Radio stations to sensitise the public about their rights and obligations.
URA has so far disseminated tax literature in 13 (thirteen) languages. This literature can be accessed on the URA web portal (www.ura.go.ug) under Tax Education.
Taxpayers can also take advantage of our mobile tax clinics when the team visits their area.
We have also availed different channels through which taxpayers may contact us for service-oriented requests and these include: visiting the nearest URA office or through our email address; services@ura.go.ug, or Toll-free numbers; 0800117000 and 0800217000, or WhatsApp line; 0772140000, or through our website; touchpoint.ura.go.ug
We are part of the East African Community (EAC) and I presume that taxes should be streamlined so that all sister nations pay the same rates. But, I know that this has not been implemented by the sister countries. There may be lower taxes in South Sudan and higher taxes in Uganda. This is a challenge for cross border trade. However, our people should be sensitized: Is it true that we are paying different taxes? If we are paying different taxes, why?
If this is explained to the people and the people understand it, there wouldn’t be a challenge. But it will be a challenge if it is not explained, people might think that we are in the East African Community and that we are charged the same taxes – which might not be the case, as I understand it
Dear Reader,
Under the EAC Treaty, the Partner states have committed to harmonise their tax regimes in order to encourage cross border trade and integration. So far, the Partner States have adopted the Common External Tariff (CET) which stipulates the applicable import duty rates for goods imported into the EAC. However, the new EAC Partner States namely, South Sudan, Somalia and DRC are in the process of adopting the CET for customs purposes.
Please note that notwithstanding the CET, a Partner State may request other Partner States to grant it permission to vary the CET with respect to importation of particular goods.
Currently, the domestic tax regimes of the Partner States have not yet been harmonized, however discussions are ongoing.
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