Uganda Revenue Authority (URA) has disclosed that it collected 85 billion shillings in the last four months through the Authorized Economic Operators (AEO) program. The AEO program is part of an international initiative focusing on voluntary compliance to secure the international trade supply chain, with Uganda being a notable reference point for this program among the World Customs Organization (WCO) and its 185 member states.
During the mentioned four-month period, 57 AEOs conducted a total of 447 import transactions with partners in China, highlighting the program’s impact on international trade. The figures demonstrate the significant role of the AEO program in enhancing revenue operations.
AEOs, as defined by the World Customs Organization, are parties involved in the international movement of goods approved by national Customs administrations for complying with WCO or equivalent supply chain security standards. To attain AEO status, companies must meet specific criteria related to customs compliance, financial stability, and security standards.
Sarah Chelangat, the Commissioner of Domestic Taxes, speaking at the 10th-anniversary celebration of the AEO program, emphasized the crucial role AEOs play in customs revenue collection. They contribute to over 40 percent of international trade operations, making a substantial contribution to total revenue collection. Chelangat encouraged more enterprises to join the AEO program, pointing out that Uganda currently has 129 national AEOs.
Chelangat also highlighted Uganda’s mutual recognition agreements with China and South Africa, which provide favorable treatment to Ugandan AEOs in these markets. She added that URA has improved the benefits provided to AEOs and has harnessed digitalization and automation to enhance customer service.
Abel Kagumire, the URA Commissioner for Customs, revealed that AEOs account for up to 33 percent of total customs revenue collection. He commended their contribution and noted that it has steadily increased over the years in tandem with the growth of businesses involved.
Anna Nambooze from Trade Mark Africa, the organization facilitating the AEO program, stressed the initiative’s role in expediting import and export processes. AEOs not only operate within Uganda but also collaborate with regional partners, ensuring smooth operations.
Betty Kiguli, a representative from the Mulwana Group of Companies, lauded the benefits of self-tax management and quick shipment processing as the most outstanding benefits of the program. However, she also urged the URA audit department to maintain high standards, assuring them of the AEOs’ commitment to compliance.
James Malinzi, the URA Assistant Commissioner for Audit, expressed concern about the lack of exports through the AEO program. He revealed that all 447 billion Shillings worth of transactions were imports, highlighting the need to expand export transactions through AEOs.
