URA: Commercial goods luggage exceeding 50 kg is now taxed

KAMPALA, UGANDA | THE INDEPENDENT | Under its new guidelines to streamline passenger baggage clearance procedures, the Uganda Revenue Authority (URA) will now collect taxes on any dutiable items in passenger baggage exceeding 50 kilograms.

These goods include phones, shoes, perfumes, clothes, phone accessories, motor vehicle spare parts, Information Technology (IT) equipment, and goods belonging to corporate bodies or companies that are imported as passenger-accompanied baggage.

By procedure, passengers with affected luggage will have their baggage transferred to the cargo terminal for normal customs clearance, requiring traders to use their tax identification numbers.

Robert Kalumba, URA’s Assistant Commissioner for Public & Corporate Affairs, says this measure aims to close a revenue leakage gap, where passengers have exploited the baggage exemption window to import goods without paying taxes. Some traders have also used it as a smuggling route.

These new guidelines are part of the ratification of the East African Community Customs Management Act (EACCMA) fifth schedule amendments, which increased the allowable limit for passenger baggage from USD 500 to USD 2,000 for passengers who have been outside the country for a period exceeding 24 hours.

Kalumba notes that the passenger baggage allowance applies to accompanied baggage in the name of the benefiting passenger and does not apply to gifts, goods for distribution, or items for commercial sale. “The exemption also does not apply to items that belong to a company imported as passenger-accompanied baggage,” he clarified.

In compliance with Section 46 of EACCMA, 2004 (as amended), passengers are required to declare to the URA officer and provide an authentic receipt of purchase confirming the value in their name. “The passenger allowance does not apply to goods sent by other persons through the passenger for delivery to a third party in Uganda,” Kalumba emphasized. “These exemptions are subject to quantity limitations and the fulfilment of conditions specified in item 5 of the fifth schedule of the EACCMA, 2004 (as amended).”

For Ugandan residents returning after at least one year abroad, the guidelines state that personal and household effects will be exempt from taxes, provided the goods were used and are for personal use in their previous residence. These items will also be cleared through the cargo terminal.

“However, contraband items such as used refrigerators, used computers and used televisions are not allowed into the country and will be forfeited to the state after the payment of the applicable penalty,” Kalumba further states.

The law also provides for specific limits for passengers arriving from outside Uganda as follows: Spirits – maximum of 1 litre; Wine – maximum of 2 litres; Perfumes and toilet water – maximum of 250ml; and Cigarettes, cigars, cheroot, cigarillos, tobacco, and snuff total weight not exceeding 250 grams.

With 19 scheduled flights to major trade hubs including China, India, Dubai, and Turkey, Uganda’s trade activities have expanded, increasing the risk of non-compliance, with some passengers disguising trade goods as passenger baggage to benefit from the exemption. In response to this surge in trade and the potential risks, URA has updated customs clearance procedures to ensure efficiency and compliance.

According to Kalumba, these new guidelines not only ensure tax compliance but also reduce the turnaround time for the entire handling process. “Passengers who arrive with goods subject to payment of taxes will undergo a simplified customs clearance process, where taxes payable are assessed immediately,” he explained.

He added that taxes must be paid within two hours to avoid congestion, failing which baggage will be transferred to the cargo terminal for further processing. He concluded by stressing the importance of these changes: “We urge passengers to familiarize themselves with the new guidelines, which are not only aimed at facilitating trade but also ensuring smoother customs clearance for all.”

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