One Stop Border Post

What is Cross border trade and in what forms is it in the East African region?

Cross-border trade refers to the buying and selling of goods and services across national boundaries. In Uganda, cross-border trade takes place with neighbouring countries such as Kenya, Tanzania, Rwanda, South Sudan, and the Democratic Republic of Congo.

It takes several forms:

  • Formal trade through customs declared imports and exports.
  • Small-scale and informal trade conducted at border points.
  • Regional trade conducted under EAC and COMESA frameworks.

Note;

Key regional frameworks supporting cross-border trade by promoting the free movement of goods and services thus creating larger markets for East African traders include:

  • East African Community (EAC) Common Market
  • Common Market for Eastern and Southern Africa (COMESA)
  • African Continental Free Trade Area (AfCFTA)
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  • Economic Growth and Income Generation: Informal Cross Border Trade provides significant income for small scale traders
  • Poverty Reduction: By facilitating trade, especially for women and youth in border districts, the government boosts livelihoods for the poor.
  • Regional Integration: Projects like One Stop Border Posts and the Simplified Trade Regime reduce costs, remove bottlenecks, and promote regional cooperation.
  • Revenue Collection: Formalizing trade has significantly increased revenue, with customs offices at borders like Mpondwe and Ntoroko
  • Export Diversification: It enables the export of Ugandan goods like cement, agricultural products, and plastics to neighbouring countries, particularly the Democratic Republic of Congo (DRC).

Food Security: It allows for the efficient movement of food from areas of surplus to those in need, addressing regional shortages

A One Stop Border Post is a jointly managed border facility where border control agencies of two neighbouring countries operate under one roof enabling traders and travellers complete all border formalities at a single location instead of stopping separately on each side of the border.

Note;

At each OSBP URA works hand in hand with immigration, standards agencies, police and port health  from both countries to ensure seamless service delivery. Uganda operates OSBPs at key borders including:

  • Busia (Uganda–Kenya)
  • Malaba (Uganda–Kenya)
  • Mirama Hills/Kagitumba (Uganda–Rwanda)
  • Katuna/Gatuna (Uganda – Rwanda)
  • Elegu/Nimule (Uganda–South Sudan)
  • Mutukula (Uganda–Tanzania)
  • Goli/Mahagi (Uganda-DRC)
  • Mpondwe/Kasindi (Uganda – DRC)

Integrated Customs and Trade Services

  • Joint Inspections: Customs officials from both countries conduct simultaneous physical examinations and verifications of cargo to eliminate duplicate stops.
  • Electronic Cargo Clearing: Use of harmonized digital systems like the Uganda Electronic Single Window (UeSW) or ASYCUDA to process documents simultaneously for both exit and entry.
  • Specialized Clearances: Dedicated procedures for clearing perishable goods, hazardous materials, and abnormal loads.
  • Revenue Collection: Streamlined collection of duties and taxes, often resulting in higher revenue for participating governments due to increased efficiency.
  1. b) Immigration and Human Mobility Services
  • Single Stop Processing: Travelers undergo both exit and entry formalities (passport control and visa processing)

c)Regulatory and Security Services

  • Quarantine and Health Inspections: Joint health protocols, including infectious disease controls (e.g., Yellow Fever vaccinations), and veterinary/phytosanitary inspections for animals and plants.
  • Security and Police Services: Coordinated border management involving police and security services for crime interdiction and joint investigations.
  • Standards Verification: Agencies responsible for quality standards (e.g., UNBS) inspect products to combat counterfeit or substandard goods.

d)Support and Infrastructure Facilities

  • Warehousing and Parking: Facilities for offloading cargo once for joint inspection and designated parking for commercial trucks

Mandatory Documents

  • Import Declaration Form (IDF) / Export Declaration Form (EDF): Mandatory forms submitted electronically to the URA customs system.
  • Commercial Invoice: Provided by the exporter, detailing the goods’ quantity, value, and description.
  • Packing List: Outlines the contents of each package being shipped.
  • Bill of Lading or Air Waybill/Railway Consignment Note: The transport document issued by the carrier that serves as proof of ownership of the goods in transit.
  • Certificate of Origin: Proves where the goods were manufactured or produced.

Specific Documents

These depend on the type of goods

  • Pre-Export Verification of Conformity (PVoC) Certificate: Required for certain goods (e.g., electronics, construction materials) to confirm quality and standards compliance in the country of export.
  • Import/Export Permits: Needed for restricted products such as agricultural produce, minerals, pharmaceuticals, and wildlife products, issued by relevant authorities like National Drug Authority
  • Phytosanitary Certificates: Required for plants, fruits, vegetables, and other agricultural products to certify they are free from pests and diseases.
  • Insurance Certificate: If the goods were insured, this document may be required.
  • Test Reports: For certain items like chemicals.

Road Transit Customs Document (C63): For cargo in transit from a seaport like Mombasa, this document is prepared at the entry port

  • Significant Cost Reductions: Due to streamlined processing, this facilitates saving on annual costs.
  • Reduced Crossing Times: Transit times for cargo have been reduced, cargo processing times have dropped from 24 hours to just 4 hours.
  • Increased Trade Volumes: Improved infrastructure and cooperation has led to trade doubling at certain posts over four-year periods.
  • Revenue Growth: Enhanced efficiency in cargo clearance and improved tax collection gains have boosted revenue for the Uganda Revenue Authority (URA).
  • Simplified Documentation: The use of the Uganda Electronic Single Window (UESW) allows traders to lodge import/export documents once, reducing paperwork by approximately 30%.
  • Coordinated Agency Management: Integrated systems like ASYCUDA allow various government agencies including customs, immigration, and standards bodies to work simultaneously on a single consignment.
  • Real Time Data Exchange: Digital infrastructure, such as Phase III of the National Data Transmission Backbone, enables real-time information sharing between Uganda and neighboring authorities.
  • Support for Small Scale Traders: OSBPs include information centers and simplified trade regimes that specifically benefit informal and women traders, providing them with training.
  • Local Economic Development: The presence of OSBPs fosters new businesses and job opportunities in border towns.
  • Enhanced Security: Real-time data sharing and biometric systems (such as e-Immigration Border Management) improve border security and reduce illegal cross-border activities.

These are specialized streamlined customs procedures designed for small scale cross border traders in regions like COMESA and the EAC, usually for goods with a value not exceeding  USD 2,000.

Note;

This system is beneficial to mainly women and youth in small scale cross border trade

  • Source of Income and Employment: It is a crucial source of income and employment for low-income and unskilled women, especially in border communities.
  • Poverty Reduction: The income generated through this trade has a positive multiplier effect, contributing to poverty reduction, job creation, and overall economic growth.
  • Financial Independence: It helps women achieve greater financial autonomy and independence, improving their decision-making power within their households and communities.
  • Ensuring Food Security: Women traders often deal in agricultural products and foodstuffs addressing vital issues of food security in their regions.
  • Formalization of Businesses: Initiatives like the Simplified Trade Regime (STR) and One-Stop Border Posts (OSBPs) help women formalize their businesses, which in turn grants them better access to microcredit, market information, and legal protections.
  • Improved Job Quality: For women working in exporting firms, trade is linked to better job opportunities, higher wages, and a higher probability of being in formal employment with better benefits and job security.
  • Skills Development: Training sessions on entrepreneurship, trade laws, and digital literacy empower women to scale up their operations and overcome challenges like language barriers.
  • Advocacy and Support Networks: By forming associations and cooperatives, women traders create strong support groups, which allow them to advocate for their rights, access information, and collectively address challenges such as harassment and violence at border points.

  • Simplified Trade Regime (STR): This framework allows small scale traders to move goods worth under $2,000 without complex documentation or professional clearing agents.
  • Gender Responsive Infrastructure: OSBPs such as Busia, Mutukula, and Elegu feature improved facilities, including designated, secure storage, cleaner amenities, and lighting to enhance safety.
  • Trade Information Desks: Located at border points like Goli, Mpondwe, and Busia, these desks provide information on trade laws, procedures, and rights.
  • Digitalization and Training: URA, in partnership with organizations like Trademark Africa, has trained women in record-keeping, digital literacy, and entrepreneurship.
  • Dedicated Support Personnel: URA has appointed “Champions for Women” to directly assist small scale traders with entries and clearance.

Empowering Associations: Support is given to groups like the Uganda Women Cross Border Traders Association (UWCBTA) to help women navigate customs and report corruption

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