Uganda Revenue Authority (URA) has announced a sweeping overhaul of groupage cargo clearance procedures, formally phasing out the use of intermediaries known as “container leaders” in a bid to close long-standing tax evasion loopholes and restore transparency in customs operations.
The announcement was made by Commissioner General John R. Musinguzi Rujoki during a high-level stakeholder meeting convened on Tuesday, June 17, 2025, at Hotel Africana in Kampala. The forum brought together URA officials, representatives from the Kampala City Traders Association (KACITA), and freight forwarding agents.
Container leaders, who have traditionally coordinated the clearance of consolidated cargo for small traders, were cited as major contributors to under-declaration and revenue leakage. Mr. Rujoki emphasized that the practice had increasingly become untenable.
“The time is up for container leaders,” he declared. “They have consistently under-declared imports, exposing legitimate businesses to unfair competition and the country to significant revenue losses.”
Traders were encouraged to adopt self-clearance, which the tax authority believes will lead to greater accountability and reduce the manipulation of cargo manifests. Mr. Rujoki further warned that URA would not tolerate corruption within its ranks or among clearing agents, adding that disciplinary action had already been taken against those implicated in malpractice.
While URA exceeded its revenue target in the 2023/2024 financial year—collecting Shs 25.2 trillion against a Shs 24 trillion target—Mr. Rujoki disclosed that over Shs 5 trillion continues to be lost annually due to smuggling, tax evasion, and illicit financial flows.
The Acting Commissioner for Customs, Hajj Asadu Kigozi Kisitu, acknowledged that some internal weaknesses had contributed to inefficiencies and delays in cargo clearance. He admitted that both customs officers and traders had been involved in unethical conduct that compromised the integrity of the system.
In response to mounting concern over delays and inconsistent import charges, Mr. Kisitu also clarified the government’s policy on textile importation. Under the new directive, T-shirts and similar goods will be taxed at either USD 3.5 per kilogram or 35%, whichever yields a higher return—part of a broader effort to support Uganda’s local manufacturers through import substitution.
KACITA leaders welcomed the engagement as an important step toward resolving long-standing tensions between traders and tax authorities. Chairman Dr. Thaddeus Musoke Nagenda cited a worrying trend of shops operating without stock due to delays at customs, while spokesperson Issa Sekitto urged URA to maintain continuous dialogue with the business community.
“Many traders have come here today because they cannot clear their goods,” Dr. Musoke said. “Our businesses are struggling.”
The call for reform was prompted, in part, by a recent internal audit by URA that exposed extensive losses linked to misreported cargo in groupage containers. This triggered a more aggressive compliance strategy and a policy review targeting loopholes in consolidated shipments.
In his closing remarks, Mr. Rujoki reiterated URA’s commitment to collaborative engagement with the private sector.
“We exist to facilitate trade,” he said. “If businesses fail, so does revenue collection. We must work together.”
The shift in groupage cargo policy marks one of the most decisive moves in recent years to enhance customs transparency and restore confidence among importers, amid growing pressure to balance revenue generation with support for private enterprise.
