Commodities

Kenyan exports to Uganda to be cleared under SCT system

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Trucks make their way from the Malaba border point to Kampala. All Kenyan exports to Uganda are set to be cleared under the Single Customs Territory system, according to URA. PHOTO by Michael Kakumirizi 

By ISMAIL MUSA LADU

Posted  Thursday, June 19  2014 at  01:00

In Summary

Joined. Tanzania and Burundi have joined the system after being reluctant for some time.

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KAMPALA.

Beverages such as mineral water, soft drinks and beer have been added onto items to be cleared under the Single Customs Territory system, a regional initiative meant to speed up the clearance of goods and quicken revenue collection.

Other goods that have also been cleared under the system include; wines, spirits and plastics.

“Beginning June 16, 2014 the following (goods mentioned above) items imported from Kenya will be cleared using Single Custom Territory (SCT) procedures,” Uganda Revenue Authority (URA) public notice issued early in the week, reads in part.

According to URA, inclusion of more items came after SCT successfully passed the experiment to clear fuel, neutral spirit, cigarettes, and cements from Kenya.

Success story
Furthermore, clearance of edible oils, steel products, milk and milk products and confectionary into Uganda from Kenya, proved that all items can undergo the same procedure—SCT.

“All exports from Kenya to Uganda shall be cleared under SCT clearance procedures with effect from July 1, 2014. Under SCT clearance procedures, customs declarations are made electronically and are processed and released by URA prior to loading of such goods for export from Kenya,” reads the public notice signed by the commissioner for customs URA, Mr Richard Kamajugo.

Uganda Manufacturers Association advocacy and policy analyst Godfrey Ssali, said in an interview yesterday, that the manufacturers are backing the move to have goods cleared under the SCT. He said: “This is a move in a right direction. We hope that this initiative will further reduce dumping and smuggling and quicken movement of goods across the border and increase revenue collections for the country.”

Need for education
Despite the good intentions of the SCT, the Kampala City Trader Association (Kacita) chairman, Mr Everest Kayondo, said nothing much has been done in terms of sensitisation, leaving traders ignorant of such developments regarding the Single Customs Territory regional initiative.

“Traders have a mixed feeling about SCT because they do not have information. We suggest that sensitisation should not be broadly designed but packaged to suit the interests of the different sectors and industries.

“However, SCT is a good initiative save for lack of information about its operations,” Mr Kayondo said on Tuesday.

Tanzania, Burundi join SCT system

Tanzania and Burundi have also joined Uganda, Kenya and Rwanda in implementing the single custom territory (SCT), Uganda Revenue Authority, one of the regional implementing agencies has confirmed.

Until recently, Tanzania and Burundi had been reluctant, saying the initiative (SCT) was arrived at without participation of all the member states, implying that it lacked the regional appeal of the five East African Community EAC member countries.

According to URA, the five EAC member states have now agreed to enforce the SCT initiatives.

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