URA Bans Fraudulent Consolidated Cargo Clearance to Protect Traders
The Uganda Revenue Authority (URA) has introduced major reforms to tackle fraud in the clearance of consolidated cargo, aiming to protect small traders and boost tax collection efforts.
In a public notice issued on April 27, 2025, URA clarified that while importing goods through shared containers remains allowed, new rules require each importer to clear their goods individually under their own Tax Identification Number (TIN).
Addressing Fraud and Protecting Traders
Previously, some “container leaders” exploited the system by clearing goods under their personal TINs, leading to inflated tax bills, fraudulent VAT refund claims, and loss of income for legitimate traders. Several offenders have already been arrested and charged.
URA detailed widespread abuses, including collecting money under false pretenses, overcharging taxes, and submitting fake customs documents. These malpractices have not only hurt small businesses but have also caused significant government revenue losses.
The country reportedly loses about Shs 5 trillion (approximately USD 1.3 billion) annually to various forms of tax evasion, according to URA — representing nearly 10% of Uganda’s GDP.
New Cargo Clearance Rules
Under the new system:
- Each importer’s goods must be transferred and cleared using their own name and TIN.
- Consolidators must provide a master bill for the container and individual house bills for every importer.
- Cargo will still be transported together but must be cleared separately to ensure full transparency.
URA emphasized that cargo consolidation itself is not banned; only the fraudulent clearance practices are prohibited.
Supporting Small Businesses
Responding to concerns from traders, URA spokesperson Robert Kalumba assured the public that the reforms are designed to support rather than hurt small businesses.
“This is not about banning consolidated shipping. It’s about stopping fraud where container leaders falsely clear goods under their own TIN,” Kalumba explained.
He dismissed claims that container leaders fairly distributed taxes, saying many small traders were overcharged without justification. Kalumba also highlighted URA’s ongoing support for traders through initiatives like flexible payment plans, storage facilities, and partial goods clearance.
“The goal is fairness — ensuring every importer pays only for their actual goods while eliminating exploitation,” he stated.
A Step Toward Better Compliance
URA encouraged traders to embrace self-clearance or use registered clearing agents to avoid exploitation by middlemen. For assistance, traders were advised to contact URA’s Manager Warehousing – Customs, Henry Kwaligonza.
With these reforms, Uganda takes a significant step toward improving tax compliance and supporting the nation’s economic growth.
