What is the process of bond execution? - Uganda Revenue Authority

Application for a Customs Bond
A licensed clearing firm/bond owner (RCTG/CB6 Bond) or an importer (CB10A Bond) makes an application in writing or through the URA Touch Point requesting for permission to execute a Customs bond, specifying the bond.
Specify the amount of bond to be executed; the Insurance company to be used; type of bond desired; details of goods being imported in case of a particular bond.
Once permission is granted through the manager Legal & Bonds the agent/importer or bond owner proceeds to the Insurance Company which then prepares the bond instruments and collects the requisite payments/premiums as a guarantee for the customs bonds.
The applicant pays stamp duty on all instruments involved (Contracts and the Bond Instrument at 5000 for each copy of contract and 0.05% of the Bond value)
Incase permission has been granted for a Cash deposit, the client will proceed to his bankers to prepare a bank guarantee or will deposit a cheque with Legal & Bonds.

The officer receives the bond instruments from the agent/importer/bond owner/insurance company. These will be checked against the set parameters.
If satisfactory the instrument will be given a serial number (KP number) endorsed and recorded in the electronic register.
Since the bond is legal document, all parties to the bond will receive an original copy indicating the duration of the bond executed, the amount guaranteed, and signatures of all parties to the bond; these are a confirmation that the importer and agent are bound to pay URA in case of any default.

This process begins with licensing of clearing firms as well as bonded warehouses. The clearing agents license is activated on the URA PORTAL/E-Tax for a period of one calendar year. The bonded warehouse license is activated in Asycuda world also for a period of one year.
The transit as well as warehousing bond will then be activated in Asycuda world to enable the clients to handle Customs transaction and consignments.
The transit bond is also activated in the COMESA system, under the UESW Portal.

Once the Customs bond has been activated in the Customs system, including Asycuda World and COMESA systems; it is then available for use by the agent.
Declarations are duly made at any entry points and guarantee is deducted from the agents’ bond account, e.g RCTG23/1000026050UG; T1000026050; W0468
When goods reach their destination, the T1 is validated and the Carnet used for transit is cancelled; the clients account is then replenished.
However, where goods are not accounted for the amount involved will be withheld and becomes outstanding; TMU will then suspend the guarantee account and the client will be required to account for the outstanding transaction. If the agent/importer/exporter fails to account, other legal measures shall ensue.

A Customs bond has a life span of three years, and is renewable every calendar year.
Once a bond is not renewed Customs conducts a system check for any T1S/Carnets not yet cleared and shall issue a demand from the clearing company/bonded warehouse owner to settle it.
If all out standings are cleared, then the bond will be considered reconciled and a certificate issued for cancellation of the bond under 107(4) EAC-CMA Bond discharged upon due performance
Note however, that after issuing of the demand the items are still not cleared, other legal procedures shall be used, including calling penalty to bond, or issuance of agency notices for recovery of due taxes.
After taxes are recovered the bond will be cancelled and the account will be closed with the insurance company.

What the process of bond execution involves