Uganda exports gain under EA single customs territory

Kampala. Clearing exports to various destinations will now take less time as Uganda begins using the East Africa Single Customs Territory.

The system was officially rolled out earlier last week for the export of commodities via Mombasa Port.

This is one of the stages towards the full attainment of the Customs Union that will eliminate tariffs and other restrictions as well as minimise internal border controls on goods moving among partner states.

The EAC is composed of Uganda, Kenya, Tanzania, Rwanda, Burundi and South Sudan, whose application to fully join the trading bloc is still under consideration.

The Single Customs Territory was officially launched on Monday, starting with coffee, Uganda’s leading export commodity. In an interview, Mr Abel Kagumire, the Uganda Revenue Authority manager for customs, said they would start with coffee in the first quarter before moving onto other commodities such tea, fish and skins and hides.

The Single Customs Territory seeks to improve clearance time, reduce the cost of doing business as well as enhance application of cross border ICT systems.

The system will also improve coordination of the private and public sector agencies among others.

Mr Emmanuel Iyamulemye, the Uganda Coffee Development Authority executive director, told Daily Monitor the system will support the already existing Uganda Electronic Single Window, an e-system that allows importers and exporters to submit coffee export documents online.

“We are optimistic about this. It is not only going to cut back on taxes and non-tariff barriers but will make doing business easy and our commodities will be able to reach the market on time,” he said.

Data from Uganda Coffee Development Authority shows Uganda exported 401,930 (60-kilo) bags of coffee earning the country about Sh158 billion. According to data from Bank of Uganda, the country, as of November 2017, exported goods and services worth Sh11.5 trillion up from Sh9.8 trillion the previous year.