Kampala — Uganda’s export sector is in turmoil as persistent system failures at the Uganda Revenue Authority (URA) continue to block the return of transit bonds, leaving hundreds of exporters unable to process new consignments for more than two months.
The problem now widely referred to by traders as the “URA Conundrum” began in early September when the transit bond return mechanism abruptly stopped functioning. Although export trucks appear in the system as having exited through official border points, the corresponding bonds never reflect back in exporters’ accounts. Without these bonds, traders cannot generate fresh T1 transit documents, effectively stalling export operations.
“This has been going on for more than two months,” one exporter said. “We report the errors and the only response we get is: ‘We are looking into it.’ Nothing changes.”
As a result, many businesses say they have incurred heavy losses due to stalled deliveries, cancelled contracts, and trucks that have remained idle at borders such as Malaba, Mutukula, and Elegu.
In an attempt to ease the pressure, URA issued virtual bonds—temporary digital guarantees valid for 2–3 weeks—but exporters say these have now expired, while the root system malfunction remains unresolved. “The virtual bonds helped briefly, but now they’re gone and we’re stuck again. No one is giving a clear timeline,” another exporter explained.
Compounding the crisis is a new setback involving EFRIS invoices. Exporters report that when invoice numbers are entered into the export system, the platform generates incorrect values, often inflating the taxable worth of goods. Some traders say they have accumulated large, unjustified tax liabilities as a result. When the invoices are submitted for assessment, they reportedly disappear from the system, blocking the completion of export entries. Efforts to correct the errors through credit notes have also failed, with the system unable to process them.
“No credit notes can go through, and no new entries can be finalised. The entire export chain is stuck,” a clearing agent said.
Exporters accuse URA’s technical teams of failing to resolve problems that have crippled operations for weeks. URA has not issued a public statement on the crisis, though internal sources say engineers are working continuously to restore system stability. Logistics specialists warn that the prolonged disruptions risk damaging Uganda’s reputation as a reliable supplier in regional markets where delivery schedules are critical.
“This is affecting manufacturers, freight forwarders, clearing agents, and even foreign buyers. It’s much bigger than a simple technical hitch,” a logistics expert noted.
Industry stakeholders are urging URA leadership to offer clear communication and a definite roadmap for restoring the transit bond return system and fixing the EFRIS export module. “Exports drive our foreign exchange earnings. The longer this continues, the more damage we suffer as a country,” an exporters’ representative said.
