KAMPALA, Uganda — A new policy by the Uganda Revenue Authority (URA) on the clearance of “groupage cargo” — goods imported in shared containers — has turned what was once a three-day process into a three-week ordeal for thousands of small traders, leaving many grappling with financial hardship and empty shelves.
Effective June 1, 2025, URA insists all groupage cargo must be cleared individually by each importer using their unique Tax Identification Number (TIN) and a house bill of lading. This marks a significant departure from the previous system where a single “container leader” or clearing agent often handled the entire container’s clearance.
URA Commissioner General John Musinguzi announced the policy in April, stating its aim is to combat fraud by container leaders who allegedly overcharged small traders and under-declared taxes. Abel Kagumire of URA emphasized, “This is about protecting traders from exploitation. Now every trader takes responsibility for their cargo.”
However, traders in bustling Kampala arcades like Nana Plaza, BMK House, and Papa Plaza report soaring costs and crippling delays. “What used to be a fast, shared process has turned into weeks of frustrating delays,” lamented one trader. Many claim taxes and fees have doubled or even tripled, with some containers now costing Shs350 million to clear, up from Shs150 million. URA maintains that tax rates have not changed, only the registration method.
Tax expert Emmanuel Ssemugenyi acknowledges the need for reform but notes, “The system needed to change, but it is small traders who are suffering most. They used to share clearing costs — now each person has to pay separately. For a struggling trader, that is devastating.” He clarified that while groupage shipping (combining goods in one container) is still permitted, URA has banned the practice of one agent clearing goods on behalf of multiple traders upon arrival in Uganda.
URA cited concerns over traders without TINs using others’ names for clearance and “container leaders” inflating taxes or making deceptive claims, leading to an estimated annual loss of Shs5 trillion (about $1.3 billion) to various forms of tax evasion, nearly 10% of Uganda’s Gross Domestic Product (GDP).
The new measures have caused significant disruptions. Eddie Dollar, a clothing trader, said he has lost loyal customers because his shelves remain empty for weeks awaiting customs clearance. These added costs are inevitably passed to consumers, with products once retailing at Shs40,000 now exceeding Shs100,000, impacting ordinary Ugandans.
While economists suggest the new system could bring order and boost domestic revenue long-term by eliminating fraudulent middlemen, the short-term transition has proven painful. Many traders, still unfamiliar with the new process, continue to rely on clearing agents who now charge higher fees, exacerbating financial burdens.
Jemba Kanakulya Mulondo, a board member of the Kampala City Traders’ Association, sees potential but stresses the need for URA efficiency. “This new system can work, but URA must clear goods within 48 hours, not weeks. Otherwise, it will disrupt the business of small traders.” He urged the government to emulate countries like Kenya, Tanzania, and Rwanda, where cargo consolidation functions smoothly.
Uganda’s traders find themselves caught between a reform intended to protect them and the harsh reality of delayed goods, higher costs, and frustrated customers. The new measures stipulate that each importer’s cargo must be cleared under their individual TIN, ensuring transparency and efficiency, and legitimate cargo consolidators must provide a master bill for all cargo in a container while issuing individual house bills for each importer.
