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Authorized Economic Operator Programs

In the Islamic Countries:

Enhancing Customs-Traders Partnership

103

field visits to China and Malaysia along with a WCO training for the team to design the AEO

program in Uganda.

Different from the cases of Jordan and Turkey, Uganda Customs established a separate

department under the Risk Management Directorate to operationalize the AEO program.

Uganda Customs, operating under the Uganda Revenue Authority (URA), commenced the

piloting of the AEO program in 2009 by setting up an AEO task team that chose 10 companies

to initiate the AEO application and authorization procedures in 2010. The program reached a

roll out stage and on 5th September 2013 and the URA formalized the status of these 10

companies that piloted the program by issuing them authorization certificates.

In its design, the AEO program in Uganda targeted importers and Customs agents first. Later,

exporters and bonded warehouses were included in the program. Currently, plans to involve

transporters and freight-forwarders are in way.

The awareness about the AEO program was created by inviting a diverse set of companies to

the Customs and giving seminars starting in 2010. In 2013, the AEO program was launched

with a grand event where the AEO pilot companies received their certificates in the presence

of 200 other firms. Moreover, the program was promoted in newspaper columns and radio talk

shows as well. Manuals for Customs officials and handbooks, brochures and group emails

through trade associations were the other awareness-creation channels used.

The main challenges that were faced in the design process of the AEO program in Uganda were

the high degree of informality experienced in the country coupled with the disbelief of firms

about the merits of the program.

4.3.1.3. Current Situation

Currently 51 companies in Uganda hold AEO status of which 23 are EAC Regional AEOs. Among

these 51 companies, 30 are importers, 11 are bonded warehouse operators and 21 are

Customs agents. These AEO companies account for 22 percent of trade volume in Uganda.

Current number of companies that hold a regional AEO certificate in EAC region is 82 of which

23 are Ugandan companies.

4.3.1.4. Mutual Recognition Agreements

Current

There are no MRAs signed by Uganda currently. However, there is a regional AEO certification

available in the EAC framework. A company is eligible to apply for the regional AEO

certification only after having the national one first. The application for the regional AEO

program requires less documentation and authorization process takes 30-60 days. EAC

delegates the power to grant the regional AEO certificate to the national Customs Authorities

of the EAC members. Therefore, once the regional AEO certificate is obtained, the company is

treated as an AEO in Burundi, Kenya, Rwanda and Tanzania.

Potential

The simplified procedures for AEOs has had tremendous effect with regard to reducing the

cost associated with the movement and clearance of goods. The EAC is currently pursuing