URA and China Customs launch mutual trade-enhancing program; clearance speed to improve by 60% and costs to reduce by 10%

Uganda Revenue Authority together with China Customs have launched the implementation of the Authorized Economic Operators Mutual Recognition Agreement. The agreement which was signed in May 2021 has its implementation delayed due to the COVID-19 pandemic.

Speaking at the launch ceremony at the URA headquarters on Thursday, Ag. Commissioner General Patience T. Rubagumya noted that the implementation of the agreement will benefit Uganda in revenue collections especially in Customs Department since clearance time will reduce.

“The launch of the MRA is one of the areas which is very significant in the customs journey. The agreement is an instrument for cooperation between the two customs administrations and the partnership between URA and traders,” said Rubagumya.

She highlighted some of the benefits as faster clearance of goods, reduction in the cost of doing business in Uganda, and attraction of more business entrepreneurs and investors in different sectors resulting in a ripple effect on the community.

Rubagumya said that the MRA will promote synergies between traders in the two countries and provide a basis for efficient and effective revenue collections.

Chinese Ambassador to Uganda, H.E. Zhang Lizhong said that with the implementation of the MRA, traders under the AEO program will enjoy a wide range of convenience in customs clearance measures, and the agreement improves clearance speed by 60%.

“After gaining a certificate, the MRA will improve the customs clearance speed by 60% from the previous time and save about 10% in logistics costs. So, it is a good arrangement for the traders in the two countries,” Lizhong.

The Ambassador applauded the mutual cooperation between the two countries saying Uganda is the best investment destination in East Africa and the MRA will contribute largely to industrialisation.

“I think one area Uganda has made great efforts and has great potential is industrialization where Chinese development plays a big role. The other driving force to drive the economy is tourism,” noted Lizhong.

URA Commissioner Customs Abel Kagumire called upon traders on the Authorized Economic Operators program to utilize the Mutual Recognition Agreement to export more Ugandan products to China. He expressed his gratitude for the implementation of the AEO MRA which will facilitate trade.

The AEO program aims to enhance customs efficiency in the face of increasing volumes of trade and the vulnerability of the international trade supply chain to security threats.

Currently, Uganda has 118 operators in the program, while China has over 5,000.

Ugandan AEOs will be recognized in China and vice versa.