The valuation unit under the Trade division recently engaged importers and traders in the Garments and Textiles Industry in Wonder Hall at the Learning and Development Centre.
This engagement sought to inform the importers about the valuation database amendment, sensitize them on the Valuation processes and to solicit feedback regarding the challenges they currently face with the valuation process.
It also aimed at addressing issues concerning unfair valuation, under-declaration and mis-declaration by parallel traders and lastly outright smuggling of garments and textiles which was affecting their cash flow and mark-up and the tax bodies revenue collections.
The engagement with the Garments and textile sector follows numerous meetings held between Uganda Revenue Authority (URA) and the Business Community calling for transparency of the amendment of the valuation database.
“The Valuation database is a risk management tool and it is always the last resort used to determine duty payable by the tax payer. In this sector, the database is used to value 90% of the cargo you import,” Ephraim Mulindwa, the Supervisor Customs Valuation stated.
The traders raised issues about delays at Uganda National Bureau of Standards (UNBS), Document Processing Centre (DPC), appeals processes and cases of smuggling which have hampered their businesses. They also added that officers delay to give them responses in time to their issues when queried.
“Your declarations to Customs determine how long you will delay at DPC. The more detailed your declaration is the faster it is for the officer to clear your cargo,” Ephraim Mulindwa, the Supervisor Customs Valuation advised.
Particularly, the importers claimed that the textiles produced in Uganda are not f the same quality with foreign manufacturers of the same products as they claim to be and thus considered the 35% tax on imported clothing and textiles as "a stretch” which does not necessarily encourage traders to buy the local products.
“I think that your team should do a research on how goods with high duty rates are performing. Ideally if the local market could produce the quality of products that the market wants, we would not bother importing because it is cost efficient for us to source locally,” Gibson Nsimire a clearing agent proposed.
However, the importers and traders expressed their gratitude to the unit for including them during the amendment process of the valuation database.
“I want to thank the valuation team for engaging us; Knowing that we can always be listened to and have a stake in this process makes us know that our opinions are valued by you,” Nsimire added.
Correspondence by Jacinta Obore Mirembe, Customs Planning.