Businesses paralyzed as URA impounds 100 rice trucks at border

Businesses at Mutukula border in Kyotera District have since Tuesday been paralyzed after Uganda Revenue Authority (URA) impounded over 100 trucks loaded with rice from neighbouring Tanzania.

The trucks which were intercepted at the Customs Office have now caused unnecessary traffic jams, blocking other traders from transacting normal businesses at the usually busy Uganda – Tanzania border point.

Rice trader Patrick Ssenkima said “URA is currently using a wrong procedure to regulate rice imported from Tanzania.”

“URA told all rice traders to acquire import permits and also have the rice checked by Uganda National Bureau of Standards (UNBS), the directives we have complied with. However, we are not happy with URA’s claims that our rice is from Pakistan yet we buy it from Tanzania,” he told Monitor on Wednesday.

He added that URA is currently demanding shs69m from him as an import tax for each of the four trucks, summing up to Shs276m.

“We are not opposing URA’s decision because they are the authority. However, we request that they allow us to take the rice, sell it and quit the business or allow us to take the rice back to Tanzania where we bought it,” Ssenkima appealed.

Five-year rice trader Aidah said: “I’m very sure my rice is from Tanzania because I pack and grade it myself, but I’m surprised that the URA team claims it is imported from Pakistan.”

She claimed URA has ordered her to pay shs86m in taxes for the 39 tonnes of rice intercepted at Mutukula border.

The traders expressed concern over likely losses, explaining that the trucks they use to transport the rice from Tanzania are hired at Tshs170,000 (about Shs 256,049 ) per day in addition to paying fuel and driver allowances.

“This means the more the trucks delay at the customs office, the more expenses we incur,” trades observed.

URA spokesperson Ibrahim Bbosa said they are aware of the traders' concerns at Mutukula border and negotiations are underway to resolve the impasse.

“I am sure we will reach an agreement soon,” he said in a telephone interview.

Early this week, the URA Commissioner of Customs, Abel Kagumire cautioned rice traders against under-declaring their goods at the border points with some businesspeople importing rice from countries like Pakistan but declaring it as Tanzanian.

URA teams have since picked samples from rice trucks intercepted at Mutukula for tests to to ascertain the origin of the rice.

FYI

Importation of rice outside the East African Community attracts an import duty of 75 percent yet the rice imported from EAC member states has 0 per cent import duty tax.