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Improving Customs Transit Systems

In the Islamic Countries

163

4.3.1.4

Uganda legal framework at the national and regional levels

Republic of Uganda Customs Code

- the Uganda Revenue Act came into force in September

1991, which is not in compliance with the EAEU Customs Code. The Republic of Uganda has

enforced the East African Community Customs Management Act, 2004 Revised Edition 2009.

In 2005, Uganda was one of the initiators for creation of the Customs Union, defined in Article

75 of the Treaty for the Establishment of the East African Community (the first Regional

Integration milestone and critical foundation of the EAC.

The EAC MS agreed to establish free trade (or zero duty imposed) on goods and services

amongst themselves and agreed on a Common External Tariff (CET), whereby imports from

countries outside the EAC zone are subjected to the same tariff when sold to any EAC Partner

State.

4.3.1.5

Regional Electronic Cargo Tracking System

In 2014, the Regional Electronic Cargo Tracking System (RRECTS) was funded by the UK

Department for International Development (DFID) through TradeMark East Africa (TMEA). The

RECTS is one of the postulates of COMESA and EAC integration agenda - Customs co-operation.

The RECTS is a web-based system used to monitor transit cargo in near real-time, thus reducing

transit time, enhance cargo safety, and help traders to predict the arrival of goods better.

In Uganda, where the RECTS is in use since 2014, it reportedly helped traders cut the time

required to transport cargo from entry border points (Kenya’s Malaba and Busia in Uganda)

from six days to one day and a half, subsequently pushing down transport costs.

The system helped Ugandan Revenue Authority to eliminate the need for customs escorts and

reduced the transit time from three to four days to a one day, effectively decreasing the transport

costs of about 400 -500 USD.

4.3.1.6

Revenue Authorities Digital Data Exchange (RADDEx) system

Uganda, as a member of the East African Community (EAC), has shared export/re-export and

transit information bilaterally with other EAC members through the Revenue Authorities Digital

Data Exchange (RADDEx) system. Under the system, the Customs officers in Uganda may

retrieve data from the system where necessary for targeting and profiling the goods prior to

arrival, i.e., a “pull” system. They may reconcile the retrieved data with the corresponding

electronic declarations lodged at the Customs offices. Registered clearing agents in Uganda are

also able to access information in the system. The EAC members have been developing a single

regional system called RADDEx 2.0 by harmonizing the existing bilateral information-sharing

systems (USITC, 2012). It was reported that the RADDEx system covered 95% of the transit

goods moving from the Mombasa seaport, Kenya to Kampala, Uganda in 2009. The average time