Single Customs Territory Will Be a Success Implementing Asycuda

A MAGAZINE FOR THE UGANDA FREIGHT FORWARDERS ASSOCIATION ISSUE N0. 2

Hon. Amelia Kyambadde Talks Trade, Non-Tariﬀ Barriers and government commitment to reduce the cost of doing business. Single Customs Territory will

be a success- Minister Bageine Implementing Asycuda World SPECIAL FEATURE: Why Entebbe is the at URA most expensive airport One of the initiatives being in Africa implemented by the Customs Freight Forwarder www.freightforwardermagazine.com Issue 2, 2013 Business Systems Enhancement Project 1 AND SO MUCH MORE INSIDE Centenary Bank Head Office: Mapeera House, Plot 44-46 Kampala Road & Plot 2 Burton Street. P. O. Box 1892 Kampala Tel: 0414-4251276/7 Fax: 0414 - 251273/4 E-mail: [email protected] www.centenarybank.co.ug FOREWORD

This year, the Association recorded some commendable success in its activities.

Dear readers, in 2015 following implementation of the our stake holders, I wish to extend I am pleased to bring to you the second Single Customs Territory (SCT), if their special gratitude and appreciation edition of our biannual publication, The licenses are to be recognized in other to our Development Partners who Freight Forwarder Magazine. The theme member states of EAC who have already have contributed tremendously to the of this issue is “Reducing the cost of implemented the policy. development of the association as well doing business”. This is backed by the as the industry. These includeTradeMark various articles inside the magazine that This year, the Association recorded East Africa (TMEA), USAID, InWent. The are in line with this theme, for example some commendable success in its same goes to close partners, Uganda the introduction of the single customs activities. The actively subscribing Revenue Authority (URA), Ministry of territory in the East African Community, members increased from 85 in 2012 East African Community Affairs (MEACA), removal of Non-Tariff Barriers (NTBs) to 97 by the end of last year. This is an Ministry of Trade and Industry, Ministry to trade, revamping of the railway line accomplishment given the fact that the of Finance and Economic Development, and the continued initiatives by Uganda Executive Committee EXCOM(Board) set Private Sector Foundation Uganda Revenue Authority to improve their online a minimum target of recruiting 5 new (PSFU) among others. clearance of goods. members each year and to maintain our market share target at above 85%. Last but not least, I wish to appreciate In this regard, the Association also, in and thank our members - the reason its continued bid to professsionalize I wish to extend special thanks to UFFA we exist - and stake holders who the industry by equipping it’s members Executive Committee (EXCOM), our board have continued to play an important with knowledge to appreciate our role as members, for their diligent support and role in the success of this publication. trade facilitators, saw a total admission commitment that they have accorded the UFFA extends her gratitude to all the of 588 students into our Kampala association in their various capacities, companies and organizations that and border classes for the East Africa throughout last year. I take this have contributed advertisements and Customs Clearing and Freight Forwarding opportunity to encourage our members sponsored pages and articles, it is Practicing Certificate (EACFFPC). Over to support the EXCOM and Secretariat through these means that we continue to 90% of the students passed their to serve them better by remaining produce this magazine. I therefore make exams there by increasing the number interactive with them in order for the a personal appeal to all stake holders of trained personnel for the freight association to achieve its objectives. to enrich this publication by using this logistics industry. It is hoped that by the Largely, the objectives aim to achieve in magazine to reach our readership with end of June 2014 Uganda should have our individual businesses, association, their product. achieved its critical mass of 800 trained industry and the Nation. personnel, at least two in each licensed I thank you all. Company. The certificate will also be Since this magazine is one of the key a mandatory requirement for licensing channels of communication with companies as Customs Agents in Uganda

Freight Forwarder www.freightforwardermagazine.com 3 Issue 2, 2013 Centenary Bank Head Office: Mapeera House, Plot 44-46 Kampala Road & Plot 2 Burton Street. P. O. Box 1892 Kampala Tel: 0414-4251276/7 Fax: 0414 - 251273/4 E-mail: [email protected] www.centenarybank.co.ug EASTERN AFRICA CUSTOMS AND FREIGHT FORWARDING PRACTICING CERTIFICATE

CERTIFICATE OF COMPETENCE (COC) APPLICATION GUIDELINES FOR INDIVIDUALS This Certiﬁcate of Competence shall be awarded to qualifying individuals in the freight forwarding industry in any one of the EAC partner states.

1.ELIGIBILITY 2.2 Applicants are required to attach copies of any supporting For any applicant to be awarded the Certificate of Competence documents bearing in mind that they may be called upon to produce shall fulfil all the following requirements: the original for verification. They are also required to attach a recent clear coloured passport size photograph. 1.1 Applicant must be at least forty five (45) years of age (a copy of identification card or passport is to be attached). 2.3 Applicants may be required to attend a seminar/s before issuance of the certificate,as shall be determined by National Curriculum 1.2 Must be a practising freight Forwarder with minimum Implementation Committee (NCIC) and may be required to meet of fifteen years experience. related costs.

1.3 Must attend/ have attended two relevant seminars as shall 2.4 Upon issuance of the certificate or rejection of the application, be prescribed. the applicant shall be notified through the respective national associations. The decision shall be final. 1.4 Must be recommended by respective National Curriculum Implementation Committees (NCIC). 3.REFEREES It is mandatory for the Application Form to be signed by two referees. 2.APPLICATION PROCEDURE The referees must have known the applicant, in a business context, 2.1.1 Applicants are requested to carefully read the application for a minimum of ten years prior to the date of application. Referees guidelines before completing the Application Form. If any information must not be related. The verifying body may contact the referees is found to be incorrect, then the application will automatically be named in the application form. rejected or will lead to automatic cancellation of the COC in the event that it is already issued. 4. APPLICATION FEE The applicant shall pay a non refundable fee of United States Dollars 2.1.2 The completed Application Form together with copies of any five hundred (USD 500) using a bankers’ cheque in favour of FEAFFA, supporting documents is to be submitted to the applicant’s which shall be payable at the time of submitting the application form. National Association, which shall verify the application to certify the correctness of the information on the basis of which it shall 5. CLOSING DATE FOR RECEIPT OF APPLICATIONS recommend to NCIC for approval or rejection of the application. The closing date for receipt of application of Certificate of Competence shall be a year after commencement. 2.1.3 Recommendation by the National Association is an essential but not the only condition for the award of the certificate. 6. RECOGNITION The COC shall be recognised in the EAC Region. 2.1.4 NCIC shall vet the applications and either recommend for issuance of the certificate or reject and return the application to the National Freight Forwarder Association. www.freightforwardermagazine.com 4 Issue 2, 2013 EDITORIAL BOARD Merian Sebunya INTRODUCTION Chairperson, Uganda Freight Forwarders’ Association EASTERN AFRICA CUSTOMS AND FREIGHT Jeni er Mwijukye General Secretary, Uganda Freight Forwarders’ Association FORWARDING PRACTICING CERTIFICATE Bernard Ology Chief Execuitve O cer Charm Media Africa Emmanuel Ochai CERTIFICATE OF COMPETENCE (COC) Project Head, The Freight Forwarder Simon Ngari Growth APPLICATION GUIDELINES FOR INDIVIDUALS Client Service Manager, Charm Media Africa This Certificate of Competence shall be awarded to qualifying individuals in the freight forwarding continues in industry in any one of the EAC partner states. CHARM MEDIA LTD Publisher & CEO Bernard Ology the logistics Head of Publishing Emmanuela Ochai Editor Billy Rwothungeyo Administration Nalule Faridah Contributing Editor Joseph Olanyo industry Senior Sales Manager Simon Ngari Senior Sales Executive James Odeke Production Assistant Patrick Kilenga Two of the most prolific ministers in Uganda issue of The Freight Forwarder and she focuses Front Cover Artwork Hon. Amelia Kyambadde form our primary story in this issue of The on the organisation’s ‘Developing Uganda Freight Forwarder. With secured investments Through Trade Support’ to promote the call for and on-going trade expansion projects, greater support in order to obtain more and SUBSCRIPTION these two ministers are showcasing their better sector and economic growth. The Freight Forwarder is published two times a year and is commitment in reducing the cost of doing Monday’s interview forms part of our Preferred available for FREE to companies and individuals on our business in Uganda and the region – essential Bank section which features an innovative mailing list or by subscription for $50 for a year which includes on-line membership access. for the growth of the economy. bank every issue. Back issue copies can be requested at $25 per copy. Subscription enquires to Emmanuel Ochai: Take Hon. Shem Bageine at the Ministry of East Following UFFA’s successful EAFPC students’ Email: [email protected] Africa for example. On page 26, Shem Bageine, graduation in February, our Events Team Tel: +256 (0) 712 833 678 Minister of East African Affairs – hails the fresh are now turning their attention to our 2014 CONTACT political will in the integration process, and conference calendar . With an unrivalled The Freight Forwarder: Published by Charm Media Africa, says that progress has started to be realized on speaker line-up already confirmed, this event is 16/38, O Kaduyu Road, Sebowa - Ntinda projects such as the Northern Corridor railway set to be bigger than our previous conferences Tel: +256 (0) 3 121 06 680 email: [email protected] line. Mr. Bageine gives details of some progress and is one you will not want to miss. made to fast track the integration including: 1.ELIGIBILITY 2.2 Applicants are required to attach copies of any supporting For any applicant to be awarded the Certificate of Competence documents bearing in mind that they may be called upon to produce a 10year roadmap which has been set for a As always, if you would like to contribute to shall fulfil all the following requirements: the original for verification. They are also required to attach a recent Single Currency. Bageine said certain issues a future issue of The Freight Forwarder with clear coloured passport size photograph. have to be sorted out before the Monetary an end-user article or a dedicated news item, 1.1 Applicant must be at least forty five (45) years of age Union eventually rolls out - I guess we won’t please do not hesitate to contact me directly (a copy of identification card or passport is to be attached). 2.3 Applicants may be required to attend a seminar/s before issuance have to wait too long now. at [email protected]. Please also bookmark of the certificate,as shall be determined by National Curriculum our website at www.freight- magazine.com 1.2 Must be a practising freight Forwarder with minimum Implementation Committee (NCIC) and may be required to meet Registered O ce as above. Charm Media Africa, Over at the trade ministry, we sat down where you can find details of current and future of fifteen years experience. related costs. is registered as a Limited Company in Uganda, with Honourable Amelia Kyambadde. We issues, industry news and conference details. 1.3 Must attend/ have attended two relevant seminars as shall 2.4 Upon issuance of the certificate or rejection of the application, discussed a range of issues from South Sudan be prescribed. the applicant shall be notified through the respective national COPYRIGHT to counterfeight goods. All in regards to her Don’t forget you can also join our groups on associations. The decision shall be final. Copyright rests with the publishers. ministry’s contribution to reduce the cost of LinkedIn and Twitter – details are opposite. All rights reserved ©2014 Charm Media Africa 1.4 Must be recommended by respective National Curriculum doing business. Implementation Committees (NCIC). 3.REFEREES It is mandatory for the Application Form to be signed by two referees. 2.APPLICATION PROCEDURE The referees must have known the applicant, in a business context, Aside from the political will, sustainability is 2.1.1 Applicants are requested to carefully read the application for a minimum of ten years prior to the date of application. Referees another area of our industry that continues guidelines before completing the Application Form. If any information must not be related. The verifying body may contact the referees to grow – not just in the technology but is found to be incorrect, then the application will automatically be named in the application form. the increase in support that the industry is rejected or will lead to automatic cancellation of the COC in the receiving. We are delighted to have Ms. Edigold event that it is already issued. 4. APPLICATION FEE Monday, pioneer banking industry woman The applicant shall pay a non refundable fee of United States Dollars 2.1.2 The completed Application Form together with copies of any five hundred (USD 500) using a bankers’ cheque in favour of FEAFFA, executive and outgoing Managing Director supporting documents is to be submitted to the applicant’s which shall be payable at the time of submitting the application form. of Bank of Africa Uganda interviewed in this National Association, which shall verify the application to certify the correctness of the information on the basis of which it shall 5. CLOSING DATE FOR RECEIPT OF APPLICATIONS Bernard Ology recommend to NCIC for approval or rejection of the application. The closing date for receipt of application of Certificate of Competence Join us on LinkedIn: Publisher, The Freight Forwarder shall be a year after commencement. http://linkd.in/FreightForwarder 2.1.3 Recommendation by the National Association is an essential but No responsibility can be accepted by Charm Media Africa, the publisher, editor, staff or any contributors for action taken as a result of the information and other materials contained in our not the only condition for the award of the certificate. 6. RECOGNITION Follow us on Twitter: publications. Readers should take specific advice when dealing with specific situations. In addition, the views expressed in our publications by any contributor are not necessarily those of the publisher editor, staff or Charm Media Ltd. As such, our publications are not intended to amount to advice on which reliance should be placed. We therefore disclaim all liability and responsibility The COC shall be recognised in the EAC Region. http://twitter.com/FreightForwarder arising from any reliance placed on such materials by any reader, or by anyone who may be informed of any of its contents. 2.1.4 NCIC shall vet the applications and either recommend for issuance of the certificate or reject and return the application to the National Freight Forwarder Association. www.freightforwardermagazine.com 5 Issue 2, 2013 www.unifreightcfs.com CFS Logistics simplified

SMOOTH HANDLING OF THE COMPLEX PROCESS AT MOMBASA PORT.

Uniqueness One stop customer care center/ Complimentary/Advisory services Customer Care Centres in all major cities in East Africa DTI Centre/Customs clearing Complimentary Services Transit Insurance Payment convenience in all major N Delivery to ﬁnal destination cities/banks in East Africa Car service for journey Transparent and negotiable tariff Car Cleaning Volume discount Can arrange for any other service you may require, e.g electronic tracking, escort, etc. The solution

Nominate Unifreight CFS, Plot 2448, Kenyatta Avenue Makupa causeway (near Changamwe roundabout) Mombasa. Postel Building, Plot 65/70 Block 88 Banda, Kireka P. O. Box 92984-80102, Clement Hill Road 1st Floor, Suite 8 (Next to Nagoya Bond & Shell Kireka) Emails: [email protected], P. O. Box 12160 Kampala Uganda P. O. Box 12160Freight Kampala Forwarder Uganda Telephone: (+256) 414 233696/ 250902 Telephone: (+256) 414 233696/ 250902 [email protected],www.freightforwardermagazine.com 6 Issue 2, 2013 [email protected] on your Fax: (+256) 414 231966 Fax: (+256) 414 231966 Bill of Lading and enjoy our service. Email: [email protected] Email: [email protected] www.unifreightcfs.com CONTENTS CFS 24 SINGLE CUSTOMS TERRITORY Logistics simplified Minister Bageine says it will be a success Read more about how it will be 26 LOGISTICS DEVELOPMENT Authorised Economic Operator The Spedag Interfreight team are already enjoying SMOOTH HANDLING OF 1 INTRODUCTION the fruits Expansion and growth continues Letter from the publisher 30 CUSTOMS AND TARIFFS THE COMPLEX PROCESS Non tariff barriers 5 FOREWORD EALA wants immediate action More growth of the logistics on non tariff barriers AT MOMBASA PORT. industry has been registered Merian Sebunya, President of UFFA 32 CUSTOMS AND TARIFFS It’s not business as usual in malaba 6 NEWS An article by Joseph Olanyo 8 UFFA SECRETARIAT PROGRESS REPORT 2013 34 REVENUE AUTHORITIES Expanding public logistics in EA Implementation of Ascyuda Secretariat information World at URA The advantages so far noted in the use of Asycuda 11 NEW CARGO TRANSPORT PATH World include the reduced usage of paper OPENED by customs stations and the clearing agents. President Museveni opens rail President Museveni commended Rift Valley Railways for rebuilding and reopening the railway that was last 37 MILESTONE in use 20 years ago Bollore Africa Logistics acquires SDV Transami 14 KPA EXPANDS TO KIGALI - In the first quarter of 2013, SDV Transami RWANDA re-branded to Bolloré Africa Logistics. New liaison office opened in 41 COVER STORY Kigali Rwanda Cabinet Secretary for Transport and Infrastructure Interview with minister Amelia Eng. Mihcael Kamau opens the office 44 SPECIAL FEATURE Uniqueness One stop customer care center/ 17 OUR PREFERRED BANK IS... Tackling Non-tariff barriers key BANK OF AFRICA Complimentary/Advisory services to success of logistics industry Customer Care Centres in all major cities in We interview the Bank’s Uganda An interview with the Chairman, National Response East Africa DTI Centre/Customs clearing MD Edigold Monday Strategy on Elimination of Non-Tariff Barriers Complimentary Services Our editors sat down with the accomplished banker 46 SPECIAL FEATURE Transit Insurance at her office in Kampala Payment convenience in all major Status on Elimination N Delivery to final destination cities/banks in East Africa 20 UNRA PUBLIC NOTICE of NTBs in Uganda Car service for journey WEIGH BRIDGE GUIDELINES Transparent and negotiable tariff Car Cleaning Volume discount COMING UP IN THE NEXT ISSUE… 49 AIR TRANSPORT Can arrange for any other service you Part 2 of why Entebbe is very expensive Developments in the logistics industry Why Entebbe is the most may require, e.g electronic tracking, Ticketing Supplement escort, etc. expensive airport in the region The solution Special coverage on logistics and the oil industry Part one of our indepth feature of why Entebbe Plus lots more… airport is the most expensive in Africa Nominate Unifreight CFS, Published April 2014. Don’t miss out on your copy by subscribing Plot 2448, Kenyatta Avenue today. Call Emmanuel Ochai or contact Bernard Ology via email at [email protected] Makupa causeway (near Changamwe 51 URBAN UPDATE roundabout) Mombasa. Postel Building, Plot 65/70 Block 88 Banda, Kireka P. O. Box 92984-80102, Clement Hill Road 1st Floor, Suite 8 (Next to Nagoya Bond & Shell Kireka) Emails: [email protected], P. O. Box 12160 Kampala Uganda P. O. Box 12160 Kampala Uganda Freight Forwarder Telephone: (+256) 414 233696/ 250902 Telephone: (+256) 414 233696/ 250902 [email protected], www.freightforwardermagazine.com 7 Issue 2, 2013 [email protected] on your Fax: (+256) 414 231966 Fax: (+256) 414 231966 Bill of Lading and enjoy our service. Email: [email protected] Email: [email protected] NEWS Clearing agents graduate

192 clearing agents in Uganda were recently awarded certificates by the East African Freight Forwarders Association and East African revenue authorities after a six months’ training in customs and freight operations.

The training program, which was started Cement to be cleared under in Uganda in 2008 so as to streamline and professionalize the industry, has EA single customs system. churned out hundreds of graduates. While presiding over the graduation in Cement and cigarettes will be the first goods to be import declaration forms in their home country Kampala recently, URA Commissioner cleared under a new trade deal allowing or joint and pay relevant taxes first to facilitate the for customs, Richard Kamajugo revealed collection of Customs taxes by Kenya, Rwanda export process. his delight at how far the industry has and Uganda. Under the deal starting April 1 2014, clearing agents have been granted rights to KRA will then issue a road manifest against the come. relocate and carry out their duties in any of the import documents submitted electronically by “Before, when every other option (of partner states under the single customs territory the revenue authority of the importing country. work) had failed, then one would go for system, raising hope of improved flow of goods Similarly, exporters of commodities in Uganda clearing. Now the industry is becoming and curbing dumping. and Rwanda to Kenya will require the importers more popular,” he said. to pay taxes to KRA before the revenue authority “We (URA) now do not take any decision Kenya Revenue Authority (KRA) commissioner of of the exporting country releases goods. without consulting the clearing agents customs service Beatrice Memo said: “effective “Thus only one declaration document shall be first. We have come a long way. You April 1, importers and exporters of cigarettes, made in the clearance of these products within are lucky that you have come at a time cement and neutral spirit originating from Kenya, the region”, Ms Memo said. when there is no more fighting and Uganda and Rwanda for trade within the three Exports of these commodities from Kenya to quarrelling between agents and the countries shall have them cleared through the Tanzania and Burundi and vice versa will be SCT system”. handled as per the current export procedures. revenue authorities,” Kamajugo told the Importers of these commodities will lodge the Source: The East African clearing agents. Mathieu Bizimana, the president of the Federation of East African Freight Forwarders Association said this training is changing the way clearing Citadel Capital Buys more stakes and forwarding is carried out in the East African region. in Rift Valley Railways. “As a federation through this training program we have reduced the time and Capital Subsidiary Africa Railways, a lead The replacement of hundreds of Kilometers cost of cargo transport in east Africa,” investor in the Kenya and Uganda railways, of decrepit track started in 2010. Since the Bizimana said. has purchased a 34% equity stake in Rift Val- start of rehabilitation, 500 Km of rail that He said the graduates are now ley Railways (RVR) from Safari Rail Company links Kenya to Tororo in eastern Uganda equipped with the necessary skills and Limited. were given a new lease of life, alongside that competencies to enable them discharge rail that marauds from Tororo to Gulu in the their roles as customs agents and Safari Rail Company is a subsidiary of north, ending two decades of disuse and entrench professionalism in the services Nairobi-Listed infrastructure company Tran- inefficiency. they offer. sCentury Limited. The entire network is also managed through The transaction, which was concluded yes- a state of the art GPS-based control room Silas Kanamugire, a director at terday, brings Africa Railways, total owner- from the Company’s headquarters in Nairobi. Trademark East Africa said qualified ship of RVR to 85%, up from 51%. TransCentury first invested in RVR in Decem- agents would go a long way in “The citizens and business communities of ber 2006, acquiring a 20% stake in Safari Rail enhancing trade in the region. Kenya and Uganda have a right to a world- and later increased its shareholding to 34% “We want to see trade enhanced within class national railway that serves as an in May 2010. the region by creating a pool of trained engine of national development and regional Citadel Capital first acquired a minority stake agents who can raise the professional integration,” said Dr. Ahmed Heikal , the in RVR in 2010, eventually becoming a lead standards in the industry.” founding chairman of Citidel Capital after the shareholder through Africa Railways. latest acquisition.

Freight Forwarder www.freightforwardermagazine.com 8 Issue 2, 2013 NEWS Logistics Companies on Top 100 Mid-sized Companies

Four logistics Companies made it to the list of 5th According to KPMG, at least 300 Companies were audited and those, which made it in the top 100, met all annual Uganda Top 100 Mid-sized Companies. the criteria that befit the mid-sized Companies. That means they are financially sound and they also have Bemuga Forwarders Limited, Atlas Cargo Systems the ability to professionally and ethically do business both within and beyond Uganda. Ltd, Kargo International Ltd and Spedaginter- Mr. Benson Ndung’u, country leader KPMG Uganda, noted that to emerge as one of the top 100 fastest freight made the list with the former graduating growing businesses in the survey is proof that the entrepreneurs have developed stable and reliable cor- to the club 101. Club 101 is for Companies whose porate governance guidelines as well as necessary risk mitigation process to ensure that they stay at the turnover exceeds shs25 billion. top of their respective businesses, through acquiring the trust of their clients. As a requirement, all the surveyed mid-sized Mr. Joram Nyanzi, the managing director Spedaginterfreight acknowledged the importance of participat- Companies’ annual turnover must range between ing in the survey. “Through participating in the top 100 mid-sized Companies awards we have come to shs 360 million to shs 25 billion. They all had to realize that the awards have provided the inspiration that Ugandan Companies needed to sustain, improve provide financial ratios based on a three year and grow our Companies.It has been used as a benchmark on where a particular Company lies in terms of audited accounts and they should not have been standards/ performance and there after as a foundation for performing better and growing our business”, among the public listed Companies. he said.

New berth at Mombasa port aims to boost regional trade.

Berth 19 at the port of Mombasa, under construction for the past two years, is now open for business. The berth is expected to increase capacity Uganda acquires Container Freight and ease congestion in clearing cargo at the port, thereby boosting trade throughout Station at Mombasa. East Africa, officials say. Delays in clearing goods are bound to This development has been lauded by the Kenyan President Uhuru Kenyatta reduce as Uganda finally acquires her private sector saying it will help them reduce the inaugurated the new berth (August 28th container freight station at Mombasa Port. costs they have been incurring while waiting for 2013) with Ugandan President Yoweri Museveni and Rwandan President Paul The facility, which was built way back the goods to be cleared at the port. Kagame. Kenyatta said the launch of in 2009, is owned by Uganda Property Initially, clearing goods at Mombasa has been the new berth represented the three Holdings Ltd, a Uganda government taking more than two weeks, leading to the governments’ commitment to improving company. accumulation of demurrage charges. business in the region. Unifreight Cargo handling Limited- the Commenting about the CFS, Private Sector “This is the deepest berth in East African company that won the bid and compliance Foundation Uganda’s executive director, Mr Coast,” Kenyatta said at the opening with Kenya Ports Authority and Kenya Gideon Badagawa, said: “The CFS will go a long ceremony, according to Kenya’s The Revenue Authority (KRA) CFS requirements away in reducing the congestion of clearing Standard. “We want to make Mombasa port will manage the facility. Ugandan bound goods.” one of the largest, busiest and business friendly in the East African coast.” Initially, there had been controversy in Ms Jennifer Mwejukye the managing director of Construction on the berth began in July 2011 and came in at a cost of 5.2 billion shillings letting the facility start operations because Unifreight, welcomed the venture saying it will ($59.4 million), according to Kenya Ports the Kenyan authorities claimed that allow them to compete. However, she said this Authority Managing Director Gichiri Ndua. Uganda had not met certain set conditions. contract allows her company to handle only The 240-metre long berth expands the The conditions were that Uganda was to transit cars. Mombasa Container Terminal’s length to a pay $1,500 to Kenya Revenue Authority “This contract is restrictive in a way that our total of 840 metres, and it will allow the port (KRA) and a Ksh100 million (UGX 3 billion) company will not be allowed to handle clearing to handle 800,000 twenty-foot equivalent cash bond to a reputable Kenya insurance of cars destined for our clients in Kenya but only units per year, up from 600,000 containers, company as cover for 1000 cars. Ugandan in Uganda,” Ms Mwijukye said. he said. businessmen viewed the above conditions as a non-tariff barrier. Freight Forwarder www.freightforwardermagazine.com 9 Issue 2, 2013 UFFA SECRETARIAT PROGRESS

UFFA progress report

UFFA Executive has actively participated as a private sector support organization in the planning stages of its implementation. It is the duty of the Secretariat to update members on any new developments that will arise in the area.

Below is the list of the reviewed membership and subscription fees. MEMBER SERVICES Member recruitment and retention Category Ordinary Ordinary Secretariat set a minimum target of recruiting Corporate 5 new members each year. This has been Review Before After Before After achieved as evidenced by the increasing Membership 300,000 300,000 300,000 500,000 membership each year. Membership now Subscription 200,000 500,000 500,000 1,000,000 stands at 108 members. The number also Total by new 500,000 800,000 800,000 1,500,000 includes the non-active members. Actively Member subscribing members now stand at 98 for the year 2013. Secretariat will in 2013/2014 develop and implement a comprehensive member recruitment and retention strategy that will enhance the trend of membership The AGM 2012 approved a new membership growth. UFFA is proud to say that revenue from membership and subscription has structure that increases membership and sustainably supported Secretariat activities. subscription fees of Ordinary and Ordinary Corporate members (see Table below). A new category for Associate members was Milestones also introduced. It is important to note that East African Customs and Freight Forwarding Practicing benefits and privileges to each member Certificate training (EACFFPC) category was defined and will be adhered to beginning 2014. Funding: Trademark East Africa funding towards the EACFFPC program through the Federation of East Africa Freight Forwarders Association (FEAFFA) has been

Freight Forwarder www.freightforwardermagazine.com 10 Issue 2, 2013 UFFA SECRETARIAT PROGRESS extended up to June 2014. It is hoped that by the end of June 2014, Uganda should EASTERN AFRICA CUSTOMS AND FREIGHT have achieved the critical mass of 800 FORWARDING PRACTICING CERTIFICATE CERTIFICATE OF COMPETENCE (COC) personnel trained in the whole industry, APPLICATION GUIDELINES FOR INDIVIDUALS This Certificate of Competence shall be awarded to qualifying individuals in the freight forwarding two from each licensed company. EXCOM industry in any one of the EAC partner states. milestone encourages Members to proactively train at least two staff in the EACFFPC course before June 2014 because the certificate is a basic It is hoped that by the and mandatory requirement for licensing. New applications are invited for the 10th end of June 2014, Uganda intake. After June 2014 commercial fees for should have achieved 1.ELIGIBILITY 2.2 Applicants are required to attach copies of any supporting For any applicant to be awarded the Certificate of Competence documents bearing in mind that they may be called upon to produce the program will apply. shall fulfil all the following requirements: the original for verification. They are also required to attach a recent clear coloured passport size photograph. the critical mass of 800 1.1 Applicant must be at least forty five (45) years of age (a copy of identification card or passport is to be attached). 2.3 Applicants may be required to attend a seminar/s before issuance of the certificate,as shall be determined by National Curriculum 1.2 Must be a practising freight Forwarder with minimum Implementation Committee (NCIC) and may be required to meet of fifteen years experience. related costs. personnel trained in the 1.3 Must attend/ have attended two relevant seminars as shall 2.4 Upon issuance of the certificate or rejection of the application, Refresher Training of Trainers (TOT): be prescribed. the applicant shall be notified through the respective national associations. The decision shall be final. 1.4 Must be recommended by respective National Curriculum whole industry, two from Implementation Committees (NCIC). 3.REFEREES Two Training of Trainers (TOT) programs It is mandatory for the Application Form to be signed by two referees. 2.APPLICATION PROCEDURE The referees must have known the applicant, in a business context, 2.1.1 Applicants are requested to carefully read the application for a minimum of ten years prior to the date of application. Referees guidelines before completing the Application Form. If any information must not be related. The verifying body may contact the referees each licensed company. were conducted last year as follows: is found to be incorrect, then the application will automatically be named in the application form. rejected or will lead to automatic cancellation of the COC in the event that it is already issued. 4. APPLICATION FEE The applicant shall pay a non refundable fee of United States Dollars • Malaba for 29 trainers (May 13th -16th, 2013) 2.1.2 The completed Application Form together with copies of any five hundred (USD 500) using a bankers’ cheque in favour of FEAFFA, supporting documents is to be submitted to the applicant’s which shall be payable at the time of submitting the application form. National Association, which shall verify the application to certify the correctness of the information on the basis of which it shall 5. CLOSING DATE FOR RECEIPT OF APPLICATIONS • Busia for 20 trainers (May 13th -16th, 2013) recommend to NCIC for approval or rejection of the application. The closing date for receipt of application of Certificate of Competence shall be a year after commencement. 2.1.3 Recommendation by the National Association is an essential but not the only condition for the award of the certificate. 6. RECOGNITION The COC shall be recognised in the EAC Region. 2.1.4 NCIC shall vet the applications and either recommend for issuance of the certificate or reject and return the application to the National Association. New Training Center: To expand implementation capacity beyond from the Secretariat. UFFA has collected 50 phase completion report was successfully URA training school facilities. UFFA entered applications including 3 from UCIFA. The delivered to Trademark. The project into a Memorandum of Understanding with Certificate of Competence training took place completion report was delivered to TMEA for Kololo Secondary School to provide extra on 13th to 14th February, 2014 at Sheraton project closure. space of two furnished classrooms. The Hotel. A total of 27 participants attended the space has been hired for the period ending workshop. Out of the 27 participants 26 paid Marketing of the central corridor: A position December 2013 and will paid by Trademark the mandatory fees for attending and are paper was submitted by UFFA to the Ministry Uganda. By April, 2014 fees for the students awaiting graduation on 28th March, 2014. of Finance in this regard. A Copy can be will be inclusive of rent since funding by accessed at the secretariat. TradeMark would have ended. The 5th, 7th Boarder Classes: intake is implemented at the new training The border training was launched at Levantes MEDIA AND PUBLICITY center. Up to 700 participants were enrolled Hotel in Malaba Kenya on 17th May, 2013 with i. The Freight Forwarder Magazine: for the previous classes. The classes are a total of 183 students in Malaba and 100 UFFA commissioned production of an annual fully managed by UFFA National Training students in Busia.By the end of the program, publication called the “Freight Forwarder”. Coordinator. The classes start at 5:30 pm Malaba had a total of 149 students and Busia EXCOM sought for competent publishing and end at 7:30 pm. a total of 60 students. Graduation for the 209 companies and outsourced the service to border students will take place in May 2014. CHARM MEDIA LTD. Summary of all intakes The maiden issue was published and In 2013 the program saw a total admission Additional training programs: circulated to advertisers, key partners and of 763 students from the 5th, 6th, 7th intakes UFFA also coordinated other trainings that target clients to UFFA membership. and border classes. A total of 434 students included ASYCUDA World training organized sat for exams and 191 students from the 5th, by URA at the URA training school, Customs ii. Online Newsletter: 6th, 7th passed. In the same intakes only valuation and HS Code Classification training Charm Media was tasked to design a 34 students failed. The border students are which were organized by JICA in partnership publishing template for UFFA newsletter. awaiting their exam results in March 2014 with URA. The trainings were held at the This was to maintain uniformity consistence Each applicant paid a total of 593,000/= as Africana Hotel from 24th -28th June, 2013. and quality in the external publications. tuition fees. Newsletter began circulation in June, 2013. LOBBYING AND ADVOCACY The 8th and 9th intake are yet to sit for The main advocacy issues in 2013 included the iii. Website exams in 2014. following: The relevancy of the UFFA website is affected Certificate of Competence: The Single Customs Territory: UFFA Executive by the frequency of updates. A specialized As a transition measure before the EACFFPC has actively participated as a private sector firm should be hired to develop a database certificate can become mandatory, FEAFFA support organization in the planning stages driven website that will accommodate all is issuing an equivalent Certificate of of its implementation. It is the duty of the the programs .Also staff should be trained Competence to those who have been Secretariat to update members on any new in updating and content management skills. practicing in the industry for over 15 years. developments that will arise in the area. This will enhance its usefulness, update web UFFA coordinated the application and based mails and enable online interactivity. selection process on behalf of FEAFFA in Finalizing the NTBs impact assessment report: Uganda. Application forms were obtained The main report accountability and third

Freight Forwarder www.freightforwardermagazine.com 11 Issue 2, 2013 UFFA SECRETARIAT PROGRESS

ASSOCIATION MANAGEMENT: UFFA is in the process of establishing points of certificates of good conduct and civil of presence at Entebbe and Malaba. This aviation airport passes. Relocation of Secretariat;- has been realized through the structure for UFFA secretariat relocated in September implementation of EACFFPC project. The Develop and implement management 2012 to Kamwokya, Kanjokya Street, mobiliser Malaba is realized through the policies and systems: Kanjokya House, 2nd Floor, Suite 11. The structure for implementation of EACFFPC With technical support from Trade Mark East office rent payment was extended by TMEA project. The mobiliser Malaba is being Africa (TMEA), UFFA acquired the following; from December, 2013 to June, 2014. UFFA prepared to become UFFA representative • Finance Policy and procedures manual is expected to innovatively expand the sitting in Unifreight office. Unifreight • Human resource policy and procedures income base so as to facilitate future rent also offered space to UFFA at Entebbe manual disbursements of USD 560 per month. airport. Initial coordination activities will • Procurement policy and procedures be coordinated by Unifreight staff, Alice manual Staff Recruitment and Secretariat equipment: Adong. UFFA will financially facilitate both Secretariat recruited one staff to replace the Entebbe and Malaba office activities. UFFA UFFA adoption of the policies and outgoing Administrator. shall also purchase furniture for the Malaba procedures is on a one by one basis representative (Table, Chairs and filing depending on need and adoption capacity. UFFA also outsourced a media company cabinet). The two offices will also need The planning and finance may consider (Charm Media) to manage and produce the stationery and a computer for Malaba. review of the policy documents and Biannual Freight Forwarder magazine. Secretariat proposes scheduled visits to recommend those for short/medium and Setting up offices at the border stations and Entebbe to support the representative during long-term uptake and operationalization. operation areas: peak periods of application and acquisition

PROPOSED 2014 SCHEDULE OF UFFA MEETINGS TO BE DISCUSSED BY EXCOM

Schedule of meeting 2014

Month January February March April May June July August September October November December Jan Feb March

EXCOM

Sub Com.

Fellowships

AGM

PROPOSED MEETING DATE EXCOM meetings Subcommittees meetings LUNCHEONS/ Fellowships AGM 19th February 2014 17th – 21st March 2014 24th April 2014 27th March 2014 13th March 2014 16th – 20th June 2014 24th July 2014 19th June 2014 2nd – 5th September 2014 12th September 2014 25th September 2014 20th November 2014 27th November 2014

Be a real professional, BECOME AN UFFA MEMBER TODAY!

UGANDA FREIGHT FORWARDERS ASSOCIATION Plot 65/75 Yusuf Lule Rd • Postel Building 1st Floor P.O.Box 28904, Kampala, Uganda • Tel: +256 (0) 414 234 958 Email: [email protected] • www.ugandafreightforwarders.net a member of FIATA.

Freight Forwarder www.freightforwardermagazine.com 12 Issue 2, 2013 MEMBERS

LIST OF UFFA MEMBERS 2013

1 Across Africa C&F Co.Ltd 51 Kenfreight Uganda Limited 2 Afro Freight Clearing and Forwarding Ltd 52 Kenlloyd Logistics (U) Ltd 3 AKA Clearing & Forwarding (U) Ltd. 53 Kuehne + Nagel Limited 4 Agility Logistics Ltd 54 Lamfarm Logistics (U) Ltd 5 Alaska Entity Ltd 55 Lincoln Logistics Limited 6 Alaska Investments Ltd 56 Livercot Impex Ltd 7 Allport Freight Limited 57 Mairye Estates Limited 8 Arafat Logistics Ltd 58 Margory (U) Ltd 9 Aramex Uganda Limited 59 Medecins.Sans Frontieres-Switzerland 10 Bahari Forwarders Uganda Limited 60 Midland Freight Services Ltd. 11 B.Answer Freight Ltd 61 Mukwano Industries (U) Ltd 12 Bamil Global Logistics (U) Ltd 62 Multi -Bulk Forwarders Ltd 13 Bemuga Forwarders Ltd 63 Multilines International Limited 14 Berteen Business Systems ltd. 64 Multiple ICD 15 BGR Evo Trans (U) Ltd 65 Multiple Freight Solutions Ltd 16 Blink Logistics (U) Ltd 67 Novamarine Limited 17 Bolax Enterprises Ltd 68 Online Cargo Handlers Limited 18 Bollore Africa Logistics (U) Ltd 69 Pan African Carriers Uganda Limited 35 19 BTS Clearing and Forwarding Ltd 70 Parth International Ltd 20 Branded Fine Foods Uganda Limited 71 Pioneer International Forwarders (U) Ltd 21 Circle Freight int. U Ltd 72 Ramzan Motors Ltd 22 Continental Shipping and Logistics Ltd. 73 Rapid Shipping and Freight (U) Ltd 23 Coronet Group Ltd 74 Quantum Express Logistics 24 Damco Logistics (U) Ltd 75 Rift Valley Railways 25 D’ALESSANDRO Logistics Ltd 76 Road Freighters Limited 26 D.H.L International Uganda Limited 77 Rolax International U Ltd 27 DHL Global Forwarding (U) Ltd 78 Seafast Holdings (U) Ltd 28 Diamond Shipping Services Ltd 79 Seawing Cargo Uganda Limited 29 Dynamic Logistics Ltd 80 Seko Logistics Uganda Limited. 30 Equator Clearing & Forwarding (U) Ltd 81 Southern Enterprises Ltd 31 Equator Shipping Line Uganda Limited 82 Spedag Interfreight Uganda Limited. 32 Flit Links International. Ltd 83 Swift Freight International Ltd 33 Fox Woods Uganda Ltd 84 Tabaki Freight Services International Ltd 34 Fora Clearing and Forwarding co.Ltd 85 Transeast Uganda Ltd 35 General Machinery (U) Ltd 86 Transoceanic Projects Development (U) Ltd 36 Glance Uganda + Logistica 87 TLN Uganda Limited 37 Gulf Badr Group Uganda Limited 88 Threeways Shipping Group Limited 38 Graben 4pl Limited 89 TMK Logistics Ltd 39 Harbourspeed (U) Ltd 90 Uni- Movers & Logistics Ltd 40 Inchcape Shipping Services Limited 91 Unifreight Cargo Handling Ltd 41 Intraline Shipping & Logistics 92 Union Logistics Uganda Limited 42 Intraf (U) Ltd 93 Unique Cargo Management Solutions Ltd 43 Intraspeed East Africa Ltd 94 United World Wide Forwarders Ltd 44 Inward Africa Forwarders Limited 95 Universal Freight Limited 45 Ivy & Jowel Forwarders Ltd 96 Urgent Cargo Logistics Ltd 46 JM Freight Services Limited 97 Visma Freight (U) Ltd 47 Jope Forwarders (U) Ltd 15 98 Weclines (U) Ltd 48 J.Y Providers Ltd 99 Western Merchants Ltd 49 Kargo International Ltd 100 Access Freight Services Ltd 50 Kasese Cobalt Company Limited Freight Forwarder www.freightforwardermagazine.com 13 Issue 2, 2013 SPECIAL FEATURE STORY RAILWAYs

Museveni opens new cargo

Emmanuel Ochai transport path Contributing Writer Freight Forwarder

President Museveni commended Rift Valley Railways for rebuilding and reopening the railway that was last in use 20 years ago. The track that had fallen into disrepair, with large sections washed away, destroyed or over- grown with vegetation, was rebuilt at the cost of $2 million over a 10-month period. Speaking at the ceremony, RVR chairman Ngugi Kiuna, said, “reopening this railway is not only a fulfillment of a promise under our concession agreement; it heralds a new beginning for northern Uganda, one that is teeming with possibilities for the people and economies of Uganda and East Africa”.

Freight forwarders have a reason to results,” says Mark Rumanyika, RVR’s General among the people on the corridors of this smile with new developments at Rift Manager Western. route. The sound of the train had gone Valley Railways (RVR) as the railway silent in Northern Uganda for close to two concessioner aims to overhaul railway In Uganda, RVR has rehabilitated nine major decades! transport from the Kenyan port of culverts between the Eastern towns of As a result, RVR now has 28 locomotives in Mombasa to Uganda. Busembatia and Jinja, which now means the active service and has rehabilitated over firm can operate much heavier trains from 1,000 wagons both in Kenya and Uganda, With transit time already slashed by six hours Mombasa to Jinja. this upping freight capacity. after the replacement of 74 kilometers of Furthermore, RVR has resurrected almost worn out railway line between Nairobi and 500 km of railway track between Tororo and So when will overhaul be Mombasa, RVR hopes to deliver more cargo Pakwach in West Nile, sending excitement concluded? volumes with further rehabilitation works on Rumanyika says: “Track maintenance and the railway infrastructure and the revamping RVR now has 28 locomotives in active service improvement in the railway business is a of rolling stock. and has rehabilitated over 1,000 wagons never-ending process and we are investing both in Kenya and Uganda, this upping in modern, mechanized track maintenance “Our initial rehabilitation work focused on freight capacity. equipment and recruiting skilled staff to rebuilding the most badly damaged parts ensure the railway track is of a consistently of the railway track between Mombasa and high standard.” Nairobi that were responsible for over 60% of incidents and this has yielded positive

Freight Forwarder www.freightforwardermagazine.com 14 Issue 2, 2013 SPECIAL FEATURE STORY RAILWAYs

Why it has taken long for action milestone A combination of factors led to the delay in the efforts to rebuild the railway line. RVR has resurrected almost 500 km of railway track Already, there was a lack of investment on the railway over the decades. RVR’s between Tororo and Pakwach in West Nile, sending initial concession, which was penned excitement among the people on the corridors of down in 2006, was renegotiated because of this route. The sound of the train had gone silent in administrative flaws in the company then. Northern Uganda for close to two decades!

RVR then sought more funding to be better “The introduction of satellite navigation equipped to take on the mantle of the engines and the track back to the control technology to our operations means we will refurbishment exercise with an additional centre. eliminate a lot of waiting time at stations by quarter of a million dollars, bringing the full giving priority track access to trains carrying financing package to $287 million. Challenges cargo and also allow us to handle larger “Arranging this considerably larger funding RVR’s journey towards revamping the railway fleets,” says Rumanyika. envelope, seven times the amount in the between the countries is not an entirely agreement, took a full year—August 2010, smooth ride. The automated train warrant (ATW) software to September 2011.Actual disbursement of allows online visualization from an operations these funds did not begin until January last Vandalism, encroachment on the railway control centre in Nairobi of the precise year, which means new RVR’s investment reserve, the long production lead times for location of trains along the railway. programme is only a year-and-a-half old,” rolling stock, bureaucracy and the poor state said Rumanyika. of long-neglected rail infrastructure are the The new system will replace manual major bottlenecks standing in RVR’s way. GPS Technology to monitor cargo management of crossovers at railway “It takes on average 20 days to move a stations with satellite-enabled self-switching container of goods from Mombasa to Recently, the firm installed GPRS technology movement of trains, communication Kampala; of this only eight days are actual that enables clients to monitor in real with the trains will be through on-board transit time on an RVR train. The rest is time the movement of their cargo along computers installed in all locomotives, which spent in loading/offloading, delays at border the railway track. The system will be fully have remote speed-control features and a crossings (2 or 3 days) customs and port operational through a dedicated portal. mechanism to feed data on the condition of

VIP guests await the arrival of the train at the Tororo-Gulu-Packwach railway line commissioning.

Freight Forwarder www.freightforwardermagazine.com 15 Issue 2, 2013 SPECIAL FEATURE STORY RAILWAY

documentation and clearances by other key H.E President Yoweri Museveni tours the players such as Uganda Revenue Authority, Photo exhibition led by The Chairman Kenya Revenue Authority (KRA) and Kenya RVR, Ngugi Kiuna. Ports Authority,” Rumanyika laments.

He calls for joint efforts from the above authorities to facilitate more efficient movement of goods across Eastern Africa thereby facilitating trade and growth. RVR also thinks the concession fee slapped on them is on the high end. milestone Recently, the firm installed GPRS technology that enables clients to monitor in real time the movement of their cargo along the railway track. The system President Yoweri Museveni in a group with major stakeholders including Gulu District will be fully operational leaders, Minister of Works and Transport and RVR Board members. through a dedicated portal.

“An operational challenge we have faced from the start include the high concession fees we pay to regulators in both countries (11 per cent of gross revenue) and the fuel levy we pay ($12 million paid to date) that goes, as per government policy, towards improving roads, while the stated intent is to get more trucks off the roads,” explains Rumanyika. He adds: “Duty exemptions on parts and equipment to overhaul and rehabilitate rolling stock were cancelled, costing the company an additional $4 million. Policy reforms to address these anomalies could Cosma Gatere, Director External Affairs channel significant funding into improving and Strategic Communications addresses the media during an exhibition tour. rail infrastructure which would have a dramatic multiplier effect across the region in terms of broad economic benefits.” With the revival of the railway being central to the socio-economic prospects of the region, Rumanyika says the support of all stakeholders will be important in the initiative.

RVR is the franchise holder of the Uganda - Kenya Railway. The company signed a 25 year contract with the Governments of Kenya and Uganda to manage the railway. RVR’s main line of business is the movement of freight by rail from the port of Mombasa into Kenya and the landlocked countries of East Africa.

Freight Forwarder www.freightforwardermagazine.com 16 Issue 2, 2013 SPECINALEWS FE ATUARTREICL SETORY SRHAIPPIILWAYNG

Emmanuel Ochai Contributing Writer Freight Forwarder

Cabinet Secretary for Transport and Infrastructure Eng. Mihcael Kamau cust the tape to mark the official opening of the Kenya Ports Authority Liaison Office in Kigali, Rwanda. His is flanked by (from left) Investment Secretary Ms. Esther Koimet, KPA Chairman Mr. Shukri Baramadi, Kenyan High Commissioner to Rwanda Mr. John Mwangemi and the KPA Country Rep. in Kigali Ms. Cynthia Kamau(extreme right). KPA opens a liaison office in Kigali “We want to tell you loudly that we in Kenya and in particular at the port, care for our customers big or small wherever they are” said Hon. Eng. Kamau. He reiterated his Ministry’s commitment to ensure the port of Mombasa remains a hub port in the region.

The Kenya Ports Authority has set The port last week recorded the highest to the Democratic Republic of Congo. It foot in Rwanda, opening a liaison delivery rate of 1,700TEUs on a single day will be able to create awareness of port Office in Kigali to serve the growing compared to the usual delivery average of procedures to avoid unnecessary delays or 1,300 TEUs per day. losses caused by lack of information by the market. “We are here to do business and we mean shippers. The Office will soon be connected business”, said the Cabinet Secretary for electronically to Mombasa head office to The Rwanda cargo through the port is Transport and Infrastructure Hon. Eng. enable acceptance of payment for port growing at an average growth rate of 9 Michael Kamau when he officially opened charges in Kigali saving customers the agony percent per year registering 260,000 tons in and launched the new Office located at the of travelling to Mombasa. 2012 up from 226,000 tons in 2011. Following central business District of the city of Kigali the implementation of measures to enhance on the 6th floor of the prestigious Grand Eng. Kamau noted that the opening of the trade facilitation at the port and along the Pension Plaza. office was a manifestation that the Kenya northern corridor, port performance has Government was committed to enhancing increased tremendously. The office now brings port services closer economic integration in the East African to the port users in Rwanda, and further Community region. The opening of office

Freight Forwarder www.freightforwardermagazine.com 17 Issue 2, 2013 NEWS ARTICLE SHIPPING

comes after the trilateral Trade agreement between the Presidents of Kenya, Rwanda and Uganda which emphasized the need to improve World Class port services and infrastructure to facilitate trade in the region. “We want to tell you loudly that we in Kenya and in particular at the port, care for our customers big or small wherever they are” said Hon. Seaports of Eng. Kamau. He reiterated his Ministry’s commitment to ensure the port of Mombasa remains a hub port in the region.

Choice. He noted that in order to improve the smooth flow of cargo from

“We are here to do business and we mean business”, said the Cabinet Secretary for Transport and Infrastructure Hon. Eng. Michael Kamau when he officially opened and launched the new Office located at the central business District of the city of Kigali on the 6th floor of the prestigious Grand Pension Plaza.

the port and along the Northern Corridor, the Government recently initiated a number of measures including the coordination of government agents in the port of Mombasa under Kenya Ports Authority Managing Director and all Customs decisions being made and finalized at the Port without further reference to Nairobi, which has caused delays in the past.

Eng. Kamau pointed out that the KRA Simba System is currently being upgraded in order to link with the National Single Window System by December so as to speed up clearance of cargo. The Government has put aside some funds for the construction of a dual carriage way from Changamwe to Jomvu to construct a new railway line from Mombasa – Nairobi – Kisumu that will be extended to Kampala & Kigali. All weighbridges are being modernized while all transit goods weighed at Mariakani and sealed are not weighed or inspected all the way to Malaba. All roadblocks have been replaced by mobile police surveillance for security purposes.

The government has also raised the Axle load limit from 48 tonnes to 52 tonnes in line with the East African legislation. This measure has enhanced compliance and will enable the transporters to move more cargo, as they are allowed to distribute the load to all the axles. The Minister for Infrastructure for the Republic of Rwanda Hon. Prof. Silas Rwakabamba, who graced the occasion, welcomed the initiative terming it as a true manifestation of regional integration aimed at enhancing trade between the two countries. He noted that Kenya and Rwanda were business partners. “This office will boost our cordial Kampala Liaison office: relations as partners in business as well as enhancing integration, Crested Towers creating awareness among Rwanda port users for better service and Short Tower, 5th Floor cost reduction”, he added. P.O.Box 22845 Kampala, Uganda Tel: +256 414 346 221/2 Kenyan High Commissioner to Rwanda Mr. John Mwangemi Fax: +256 414 346 054 underscored the cordial relations between Kenya and Rwanda .He Email: [email protected] commended the keen interest of the Rwanda Government on the www.kpa.co.ke ongoing developments of the port of Mombasa. He pointed out that Kenya was not only a business partner of Rwanda bust also a key

Freight Forwarder www.freightforwardermagazine.com 18 Issue 2, 2013 NEWS ARTICLE SHIPPING investor in Rwanda. Also present at the function were the KPA chairman Mr. Shukri Baramadi, Managing Director Mr. Gichiri Ndua, senior KPA officials and various stakeholders.

The Rwanda cargo through the port is growing at an average growth rate of 9 percent per year registering 260,000 tons in 2012 up from 226,000 tons in 2011. Following the implementation of measures to enhance trade facilitation at the port and along the northern corridor, port performance has increased tremendously.

The port last week recorded the highest delivery rate of 1,700TEUs on a single day compared to the usual delivery average of 1,300 TEUs per day. “We are here to do business and we mean business”, said the Cabinet Secretary for Transport and Infrastructure Hon. Eng. Michael Kamau when he officially opened and launched the new Office located at the central business District of the city of Kigali on the 6th floor of the prestigious Grand Pension Plaza.

The office now brings port services closer to the port users in Rwanda, and further to the Democratic Republic of Congo. It will be able to create awareness of port procedures to avoid unnecessary delays or losses caused by lack of information by the shippers. The Office will soon be connected electronically to Mombasa head office to enable acceptance of payment for port charges in Kigali saving customers the KPA Chairman Mr. Shukri Baramadi presents a KPA memento to the Kenyan High Commissioner agony of travelling to Mombasa. to Rwanda Mr. John Mwangemi during a courtesy call at the High Commission in Kigali.

Eng. Kamau noted that the opening of the office was a manifestation that the Kenya along the Northern Corridor, the Government will be extended to Kampala & Kigali. All Government was committed to enhancing recently initiated a number of measures weighbridges are being modernized while economic integration in the East African including the coordination of government all transit goods weighed at Mariakani and Community region. The opening of office agents in the port of Mombasa under Kenya sealed are not weighed or inspected all the comes after the trilateral Trade agreement Ports Authority Managing Director and all way to Malaba. All roadblocks have been between the Presidents of Kenya, Rwanda Customs decisions being made and finalized replaced by mobile police surveillance for and Uganda which emphasized the need to at the Port without further reference to security purposes. improve port services and infrastructure to Nairobi, which has caused delays in the past. facilitate trade in the region. The Rwanda cargo through the port is “We want to tell you loudly that we in Kenya Eng. Kamau pointed out that the KRA Simba growing at an average growth rate of 9 and in particular at the port, care for our System is currently being upgraded in order percent per year registering 260,000 tons customers big or small wherever they are” to link with the National Single Window in 2012 up from 226,000 tons in 2011. said Hon. Eng. Kamau. He reiterated his System by December so as to speed up Following the implementation of measures Ministry’s commitment to ensure the port of clearance of cargo. The Government has to enhance trade facilitation at the port Mombasa remains a hub port in the region. put aside some funds for the construction and along the northern corridor, port of a dual carriage way from Changamwe performance has increased tremendously. He noted that in order to improve the to Jomvu to construct a new railway line smooth flow of cargo from the port and from Mombasa – Nairobi – Kisumu that

Freight Forwarder www.freightforwardermagazine.com 19 Issue 2, 2013 SPECIALB FEANKATUINREG STORY PREFERREDRAILWAY BANK

Bank of africa. Developing UganDa throUgh traDe sUpport one customer at a time. Interview with Ms. Edigold Monday, Managing Director.

Edigold Monday made history in Uganda and the banking industry when in December 2010 she was appointed the first Ugandan female Managing Director and Chief Executive Officer at Bank Of Africa Uganda. Ms. Edigold is also the first Ugandan woman to serve as the Chief Executive Officer of a commercial bank in the country’s history. The freight forwarder magazine sat down with her to talk banking. Check out the excerpts on the following pages.

Bank of africa House Plot 45 Jinja road, P.o. Box 2750 - kampala - uganda Phone: (256) 0414 302001, fax: (256) 0414 230669 e-mail: [email protected] www.boa-uganda.com

Freight Forwarder www.freightforwardermagazine.com 20 Issue 2, 2013 banking preferred bank

Bank of africa. Developing UganDa throUgh traDe sUpport one customer at a time. Interview with Ms. Edigold Monday, Managing Director.

Bank of africa House Plot 45 Jinja road, P.o. Box 2750 - kampala - uganda Phone: (256) 0414 302001, fax: (256) 0414 230669 e-mail: [email protected] www.boa-uganda.com

Freight Forwarder www.freightforwardermagazine.com 21 Issue 2, 2013 banking preferred bank

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While BANK OF AFRICA - UGANDA Ltd. to Kampala Serena Hotel. accounts shared among the 26 commercial limited to: your goods in a timely period with flexible AFRICA – UGANDA Ltd exploits every raise funds for a Hemoglobin banks out of a total adult population of and attractive interest rates. You no longer opportunity to promote and encourage the Electrophoresis during the Bank over 20 million, the sector still has a vast Structured Finance: We have a broad need to risk the safety your goods and use of trade finance solutions to consumers, of Africa Car Boot Sale. potential for growth. The challenge for the range of market leading products including facing unnecessary delays by using this there is still more that can accomplished. Banking sector is to become more creative Contract Financing, Export Finance, Stock amazing facility. and innovative to attract more Ugandans Finance and Import Loans. In addition, business transactions in to use banking services. 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It Any final remarks for your Customers? banking to ensure that access to finance by SMEs is is commonly used for large transactions or Foreign Drafts: These are excellent payment division does effortless, straightforward and convenient. special products that are made on order. instruments for importers, the travel industry, We appreciate the loyalty, response and Our SME banking division does not only production companies with temporary support we are getting from our customers, not only extend extend to financing solutions, but further Documentary collections: Documentary projects abroad, as well as numerous and we do not take this for granted. Our empowers SME’s with the relevant business collections facilitate processing of shipping other situations that one encounters when purpose is to build long lasting relationships to financing and financial skills. documents for importers and exporters. conducting business abroad. Drafts are with our customers; and we commit our Collections are a universally recognized more acceptable than personal cheques unwavering dedication to meet their solutions, That not withstanding, we are an ‘all method for settling overseas trade debt and can be sent anywhere in the world in financial needs ALL THE TIME, EVERY TIME Public” Bank and we serve all segments through the international banking system, a variety of currencies. but further adequately and are able to attend to offering some security of payment to a the needs of Corporate institutions and degree. 1. Customers in a Question and empowers individuals appropriately. Answer session at a brunch at Guarantees: Guarantees give the recipient Kampala Serena. sme’s with Trading is a very important component the security that if the operation indicated of the Ugandan economy and we in the agreement is not performed for 2. The multitudes that joined the relevant BANK OF AFRICA - have very many SMEs and companies any reason, the recipient shall be entitled UGANDA Ltd. to raise funds business and involved in this activity. What Trade to monetary compensation. The most for a Hemoglobin Finance solutions do you have for this commonly used guarantees include Bid Electrophoresis during the financial skills. market? Bonds and Performance guarantees. Bank of Africa Car Boot Sale. Freight Forwarder www.freightforwardermagazine.com 22 Issue 2, 2013 banking preferred bank

PROCEDURE 1. Fill in a utility bills deposit slip (in triplicate) at any BANK OF AFRICA- UGANDA Branch.

2. Present the deposit slip to any cashier in the branch along with your cash or cheque.

3. The cashier will instantly credit the utility company with your deposit amount and issue you a stamped customer copy as confirmation of your payment.

4. The payment will be reflected on your next Utility Bill.

BENEFITS • No charges for using the Utility Bills Payment Service.

• Flexibility of payment by cash, cheque or draft.

• If you are a BOA customer, you also have the option of using our direct debit payment mode or standing order.

• Immediate reconciliation with Utility Bills Company

DIRECT DEBIT You can authorize your Utility Bills Company to collect money from your BANK OF AFRICA account to settle your bill invoices

• Contact your Utility Bill Company to prepare your utility account for the direct debit facility.

• The Utility Bill Company will then send instructions to BANK OF AFRICA- UGANDA to effect the transaction.

• When BANK OF AFRICA- UGANDA executes the instruction, the Utility Bill Company will print the receipt of the transaction and deliver it with your next bill.

Our writers think visually Our work solves business problems Our art directors think in headlines Our work considers the media Our strategists think creatively Our work demonstrates variety IS GROWING Our creatives think strategically For more information 0752 896 185

Freight Forwarder www.freightforwardermagazine.com 24 Issue 2, 2013 SPECIAL FEATURE STORY PUBRLAICIL WNOTAYICE

NEW GUIDELINES FOR WEIGHING GOODS IN TRANSIT AT UNRA WEIGHBRIDGES

Following a Directive by the Heads of State of Kenya, Uganda and Rwanda to the effect that transit Cargo will be weighed once at the point of entry into each country, the following measures have therefore been put in place to implement the directive with effect from 1 January 2014:

1.Transit cargo originating from Kenya weighbridge and cargo heading east will only of construction. When completed these through Malaba and Busia heading be weighed at Lira mobile weighbridge. weighbridges will be the weighing points for west will only be weighed at Busitema transit cargo. weighbridge. 6. Transit cargo originating from within Uganda will only be weighed at the first Transporters are particularly informed and Our writers think visually Our work solves business problems 2. Transit cargo originating from Kenya weighbridge encountered after customs UNRA Weighbridge Managers are hereby Our art directors think in headlines Our work considers the media through Malaba and Busia heading north clearance. Our strategists think creatively Our work demonstrates variety directed to implement the new guidelines. IS GROWING Our creatives think strategically For more information 0752 896 185 will only be weighed at Mbale weighbridge. Transit trucks conveying cargo bearing UNRA CUSTOMER CARE CENTRE In our effort to help serve our customers 3. Transit cargo originating from Tanzania a customs seal and already weighed as heading north will only be weighed at outlined above will show the weighbridge better and obtain feedback from all our Lukaya weighbridge and cargo heading ticket at subsequent weighbridges in order stakeholders, we have installed a Customer west will only be weighed at Mbarara to be exempted from weighing. This is care hotline and email to be able to listen to weighbridge aimed at ensuring that internal traffic does you better. not avoid weighing and checking that transit 4. Transit cargo originating from Rwanda cargo has been weighed. Talk to us! and DRC heading east will only be weighed UNRA will keep updating the business 031-2233111 or 041-4318111 at either Mbarara or Mubende weighbridges community on progress of implementation Email: [email protected] depending on the route taken. of the above guidelines. New weighbridges Website: http://www.unra.go.ug are being constructed nearer to the One Stop 5. Transit cargo originating from South border posts of Malaba, Busia, Mutukula Sudan and North Eastern DRC heading Freight Forwarder and Elegu which are at different stages www.freightforwardermagazine.comsouth only be will weighed at Luwero 25 Issue 2, 2013 SPECIALC FEUSATUTOMSRE STORY POLRICAIYL WMAYAKER

Single Customs Territory will be

Billy Rwothungeyo Contributing Editor a success The Freight Forwarder - Minister Bageine

Freight Forwarder www.freightforwardermagazine.com 26 Issue 2, 2013 Freight Forwarder www.freightforwardermagazine.com 27 Issue 2, 2013 CUSTOMS POLICY MAKER

representing the destination countries will verify cargo headed to bonded “The goods will arrive at the point warehouses at the port of origin or entry. of entry (port), and at that point, the assessment and collection of • Unfair regulations and restrictions are taxes will be determined there and booted as henceforth; the East African region will be operating as a One then. The taxes that are due to the Customs Territory. destination states, will then be • Goods will circulate freely with no or remitted to them,” minimal border controls.

As New Year (2014) ushered in, East Africans witnessed yet another milestone in the integration process with the start of the Single Customs Territory (SCT) implementation. The State Minister for East African Community (EAC) Affairs, Shem Bageine has reiterated his belief that the customs territory will be a success. Bageine said that the SCT would then be fully operational in July 2014. He explained that the clearance of imported goods would be the key feature in the Single Customs Territory. “The goods will arrive at the point of entry (port), and at that point, the assessment and collection of taxes will be determined there and then. The taxes that are due to the destination states, will then be remitted to them,” he said. This kind of arrangement was used in the first East African Community that collapsed in the 1970’s. Bageine further explained that the single Hon. Shem Bageine customs territory would minimize and Ugandan Minister for • These measures will check delays on eliminate taxes on intra-regional trade. East African Affairs cargo clearance and consequently The minister however says that for the minimize operational costs. single customs territory to achieve its Agreement, which imposes 0% import desired purpose successfully, a legal taxes on raw materials, 25% import taxes • Lays a strong foundation for the framework has to be put in place to fit with on finished products, and advolerum taxes introduction of a Customs Authority this arrangement. ranging between 35-100% import taxes on that will boost regional trade. “Some laws have to be passed (by the East specified goods such as sugar African Legislative Assembly) in order to He said that the SCT would benefit the Harsh treatment of traders help in the implementation of the SCT. We private sector since the movement of The Minister also added his voice of the have also to harmonize our tax regimes to goods will be made easier, as they will not mistreatment of traders by certain revenue rhyme with the others,” he said. be checked until they reach their point of authority officials. He said that officials take He added: “We already have the East destination. advantage of people’s lack of information African Customs Management Act. It is now on the SCT to met out corruption. a question of amending this Act to bring in Advantages of the single customs “One of the areas that our officials are the Single Customs Territory.” taking advantage of is the lack of awareness “In the meantime, we can actually start territory to EAC Under this arrangement, the partner among the business people. When I was at collecting taxes at the point of entry and • states will give the nod to mutual the Katuna-Gatuna border, I was informed remitting the money while the process of customs bonds masterminded by their that people who are trading locally still legislation is taking place.” respective insurance companies. This use “panya” routes when moving goods, Under this arrangement, Member States is because liaison customs officials because they believe that if they use open will reinforce the Common External Tariff Freight Forwarder www.freightforwardermagazine.com 28 Issue 2, 2013 CUSTOMS POLICY MAKER

routes, they will be charged highly, which is the process of implementation for which fiscal deficit, public borrowing and reserves not the case. a roadmap for 10 years has been set by for imports among others,” he said. He however said that the partner states are which time a Single Currency should be The minister explained on: “Once we working together to stamp out this vice— introduced. Bageine said certain issues get over the three years, if three or more with sensitization playing a crucial role in have to be sorted out before the Monetary member states have complied with the this process. Union eventually rolls out. criteria, we shall embark on the process of a “You will always have some setbacks but on “Issues to do with finance tend to be single currency.” balance, progress is being made. The more intricate, and they are at the centre of Bageine also said that before the Monetary we get our people into understanding the success or failure of economies. We agreed Union comes into force, institutions like the benefits of the SCT in the community, the that because we are operating at different EAC Central Bank, a Statistics Commission, better. macro-economic levels, we must set in Surveillance, Compliance and Enforcement place certain criteria that member states Commission and the East African Financial Political will must persistently conform to for the first Institute will have to be set up to manage Bageine also hailed the fresh political three years—covering things like inflation, will in the integration process, and says the Monetary Union. that progress has started to be realized on projects such as the Northern Corridor railway line. “Works on the Kenyan side (of the railway works) has already commenced. Studies are advanced in Uganda. There are companies that have expressed interest in building the railway line on the Ugandan side,” he said.

There have been reports rife in the media of cracks in the integration process emerging in the EAC blocs with Tanzania and Burundi being left out of a few heads of State Summits. However, Bageine said the reports on the so-called ‘coalition of the willing’ have been orchestrated to hoodwink the public. He said the meetings of Kenya, Uganda, and Rwanda are provided for in

Works on the Kenyan side (of the railway works) has already commenced. Studies are advanced in Uganda.

the Treaty—and that the three countries can only be faulted if they don’t inform the Secretariat about these meetings. He says this impasse has now been solved amicably. “A project can be undertaken by two or three countries, provided there is inter- connectivity between (these countries).

Monetary Union In November 2013 Presidents Yoweri Museveni of Uganda, Kenya’s Uhuru THIS ARTICLE IS SUPPORTED BY Kenyatta, Tanzania’s Jakaya Kikwete, Rwanda’s Paul Kagame and Burundi’s Pierre 2nd & 9th Floor Postel Building Nkurunziza signed the Monetary Union Plot 67/75 Yiusuf Lule Road, Kampala Protocol in Kampala. P.O. Box 7343, Kampala – Uganda Tel: 0414-340100 This will be followed by the ratification of THE REPUBLIC OF UGANDA Fax: 0414-348171 the Protocol by the Partner States to start

Freight Forwarder www.freightforwardermagazine.com 29 Issue 2, 2013 SPECIDEVELOPMENAL FEATURETS STORY Authorized Economic OperRAatoILWrAY

AEO makes bright start as Spedag Interfreight enjoys fruits.

In 2009, the World Customs Organisation-East African Community Economic Development Program commenced with the objective of introducing a regional Authorized Economic Operator (AEO) framework to stay abreast with global standards.

In the same light, the Uganda SpedagInterfreight is one of the three JoramNyanzi, the managing director of Revenue Authority (URA) recently firms that were chosen to pilot the SpedagInterfreight in Uganda says URA’s started the implementation of maiden AEO status scheme. nod of selecting the freight forwarding the accreditation system for AEO status is determined by URA’s firm on the pilot project was due to the complaint tax payers as the tax evaluation of a firm’s compliance history company’s exceptional compliance to collecting body tries to bolster tax and its involvement in international customs procedures. compliance. trade. “This whole program is about Upon certification and elevation to compliance. It is in place to reward those The Customs Authorized Economic AEO status, a firm is able to conduct who are compliant,” he said. Operator (AEO) program marks out business across borders faster and Apart from SpedagInterfreight; the other organizations that are compliant with more conveniently with less scrutiny firms that were selected to feature on this custom regulations and procedures for and red tape from custom officials in year’s pilot project included Nice House priority treatment at URA and other tax participating countries. of Plastics, Unifreight Cargo Handlers, bodies in the region.

Freight Forwarder www.freightforwardermagazine.com 30 Issue 2, 2013 DEVELOPMENTS Authorized Economic Operator

Joram Nyanzi Managing Director SpedagInterfreight

DHL, Roofings Ltd, Bollore Africa Uganda program being a superb marketing tool spread out; if more staff are not trained Ltd and Threeways Shipping Ltd. when dealing with multinational partners; (on the program). What will happen if one Benefits it also greatly reduces on the corruption officer on the program goes on leave and tendencies in the industry, thereby the replacement does not quite know the The framework has major benefits for reducing the costs of doing business. program well?” said Nyanzi. those who participate in it, such as faster “When you are compliant, it is easy for Under AEO’s arrangement, East African facilitation of trade, which comes in me to pick up my phone and call the Community member states recognize handy as time is almost everything for assistant commissioner and we resolve the programs of each other; therefore, freight forwarding companies. the issues in a transparent manner other companies in the five countries all reap than waiting for someone to influence,” the fruits of the scheme. Nyanzi says with lesser bureaucracies he said. for the firms that are on the framework, “Our bond in Mombasa takes a few days SpedagInterfreight has significantly to be executed,” says the managing slashed on the time of conducting director. business. The Forwarding Company nominated by URA and conﬁrmed to be an Authorized Economic Operator. Pilot Project in the “Where they (URA) should have sent a With the rolling out of the framework to East African Community customs officer to supervise us, they say more firms, Nyanzi says tax compliance we can do it for ourselves, they (URA) will can only be bettered as more people are come and audit us,” he said. realizing the benefits of paying tax dues in “With the AEO, a container that used to real time to avoid future inconveniences. take 14 days (from Mombasa to Kampala) “We have reached a point where now takes seven days. Right from the everybody now realizes why it is border, everybody (customs officials) important to work with customs officials wants to deal with a truck that is under other than trying to avoid them,” he said. this program,” he said. In the long run, being customs compliant Challenges is cheaper, reasons Nyanzi. Though it is proceeding smoothly, the “You can predict how things will work out participating companies are facing a few at any given time. If I know I have keys to hitches, especially with customs staff that my bonded house, I can come and open are not so familiar with the program. at 8am, and load a truck without waiting “Along the way, there are junior staffs for a customs official who may come at that are yet to really understand the Spedag Interfreight Uganda Ltd 10am,” he said. project fully. There will even be a bigger Plot 284, Nakawa Industrial Area, Kampala - Uganda Phone: +256 414 562 000 Fax: +256 414 562 111 Email: [email protected] Nyanzi also says that besides the AEO challenge when the program is eventually www.spedaginterfreight.com

Freight Forwarder www.freightforwardermagazine.com 31 Issue 2, 2013 SPECIAL FEATURE STORY CUSTORMSAIL W& AYTARIFFS

Joseph Olanyo Contributing Editor EALA wants immediate action on Non tariff barriers

Particular concerns have been raised on the Mombasa Port sea route, where over 70% of the hinterland cargo pass through. Land locked countries like Uganda access the sea through the Northern Corridor route of Mombasa port and the Southern Corridor route of Dar es Salaam port.

KAMPALA: Tired of persistent complaints of requirements that make importation or locked countries like Uganda access the sea cargo movement on the Northern Corridor exportation of products difficult and costly through the Northern Corridor route of Mom- Route, East African Legislative Assembly remain a challenge. basa port and the Southern Corridor route of (EALA) members now want the East African Under article 13 of the Customs Union Proto- Dar es Salaam port. Community (EAC) member states to take col, member states agreed to remove NTBs While meeting importers, exporters and stern action against Non Tariff Barriers affecting trade within the region and not to various Ministry of Trade officials from land (NTBs). re-introduce new ones. locked countries on the status of NTBs re- EALA contends that despite the strategic However, since the signing of the protocol, cently, EALA committee on Trade and Invest- links the region enjoys, its trade is adversely member states have continued to impose ment noted that there were still numerous affected by NTBs that are not only slowing NTBs on trade, most especially affecting road blocks and weighbridges along the transportation of cargo through partner the three landlocked countries of Uganda, corridors. states, but also contributing to the high cost Rwanda and Burundi. EALA committee on Trade and Investment of doing business in the region. Particular concerns have been raised on the Chairperson, Ms Kizigha Angela Charles, NTBs are restrictions that result from Mombasa Port sea route, where over 70% lamented at the alarming concerns of cargo prohibitions, conditions, or specific market of the hinterland cargo pass through. Land movement in the corridors saying there was

Freight Forwarder www.freightforwardermagazine.com 32 Issue 2, 2013 urgent need to visit Kenya Ports Authority corruption at KPA and the high cost of trans- charges at the port like handling fees, which (KPA) to ascertain its operations. portation from Mombasa port to Uganda is is not the case with other ports like the Tan- In their findings, EALA MPS warned against fleecing business people. zanian port of Dar-es-salaam. a likely disaster at border points due to lack “The mother of NTBs in the EAC is Mombasa They also complain of shrewd clearing of security and preparedness in the case of port. Transporting a 40-feet container from agents at the port who extort huge sums of inflammable goods like fuel. money from importers “Once you report “There are no principles of one-stop border a car theft to the Kenyan police, the police posts. People still shuffle from one place to make you the first suspect,” says Fred another to get clearance. This encourages Kalungi, an importer. middlemen and corruption ,” said Patricia The Chairman Uganda Shippers Council, Hajabakiga, EALA member from Rwanda. “We need a political will Charles Kareeba, says KPA should harmo- The committee members also raised concern for KPA and KRA to work nise their operations with Kenya Revenue over infrastructure at the border posts. together because it Authority (KRA) in order to address the issue “Uganda should overhaul all her state of will be difficult for KPA of NTBs. infrastructure, which is in appalling state in “We need a political will for KPA and KRA to various border entry points,” Dora Byamu- to tell KRA that let us work together because it will be difficult for kama EALA member Uganda said. together,” Kareeba said. KPA to tell KRA that let us together,” Kareeba “We are seeing a high risk fire prone area at said. the borders. The congestion and mix up of Statistics from KPA show that the port of fuel tankers and other trucks will soon lead Mombasa to Uganda costs $4,500. Clearing Mombasa has recorded impressive perfor- to a big disaster,” said Frederic Ngenze- lines are no longer relevant, they collude mance since 2010 against odds of global buhoro (Burundi). with KPA officials,” Omar said economic recession. Uganda’s State Minister for trade, David Uganda is the biggest user of the Northern However, recent statistics show that vol- Wakikona, said the ministry will champion corridor. It constitutes nearly 80% of the umes of Kenya’s ports amounted to 7 million action on the recommendations of the find- cargo entering Uganda. The 20% is shared by tonnes in the first quarter of 2013, down ings. Rwanda and Burundi. from 7.4 million tonnes a year earlier. Kenya Wakikona said despite the strategic link But despite all, numerous complains of Ports Authority’s managing director Gichiri Uganda enjoys, her trade is adversely af- vehicle robberies on transit, theft of motor Ndua, was quoted by the Kenya media fected by NTBs when goods move through vehicle parts and long queues of cargo scan- saying the fall was due to the low demand other partner states. ning at the port of Mombasa.. around the country’s election in March. “Uganda is always grappling with the Ugandan importers using the Kenyan port of Ndua said cargo handling volumes are ex- treatment of its tea meant for auctioning Mombasa contend that despite the several pected to improve in the future as business at Mombasa by the Kenyan government,” meetings organised by KPA to address their is normalising. Wakikona said. various concerns, the situation has not Kassim Omar, the Chairperson Uganda changed. Clearing and Forwarding Association, says The traders say they are paying unnecessary

Freight Forwarder www.freightforwardermagazine.com 33 Issue 2, 2013 ISO 9001:2008 Certified World wide logistics solutions by Road, Sea, Air

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Postel Building, Plot 65/70 Clement Hill Road, 1st Floor, Suite 8 P.O. BOX 12160 Kampala, Uganda Telephone: (+256) 414 233696/ 414 250 902 Mobile: (+256) 772 671 743 / 753 671 743 Fax: (+256) 414 231 966 E-mail: [email protected] SPECINALEWS FE ATUARTREICL SETORY SRHAIPPIILWAYNG

Joseph Olanyo Contributing Editor

It’s not business as usual at Malaba In an effort to curb congestion and fast clearance of goods and services, which have increased tremendously, Uganda and Kenya with funding from Trade Mark East Africa (TMEA), agreed to establish a one stop border post to speed up the clearance and forwarding of cargo. Construction work is progressing on the Kenyan side.

Despite the regional efforts to boost border post. landlocked Uganda alone, are registered at cross border investments by easing While there is no clear figure, available the border daily. congestion in the Northern Corridor reports indicate that at least some 700 trucks The confusion at the busy border post has route, it is not business as usual at the cross the Malaba border daily compared to thrown clearing agents and revenue authority Kenya Uganda border of Malaba. 300 that go through Busia border. The fairly officials into disarray, with each party good infrastructure on Malaba route gives blaming the other. Business at the Kenya-Uganda border post it a comparative advantage to Busia’s poor “For us we do our part, but if you want to of Malaba is at a standstill, sometimes roads, which are mostly avoided by the long know about the delays and congestion, you grinding to a halt as heavy commercial distance truck drivers. go and ask revenue authority officials. They traffic waiting for clearance continues to An insurance broker on the Kenyan side know better,” Santos Imara, a clearing agent flood the customs entry point. identified only as Hassan, said about 40 at Amagoro, Malaba on the Kenyan side said. The process has been worsened by the heavy trucks, 130 normal vehicles and Heavy commercial truck drivers on their part delayed establishment of the planned one- 53 unregistered vehicles destined to the have taken advantage of the congestion to

Freight Forwarder www.freightforwardermagazine.com 35 Issue 2, 2013 SPECIAL FEATURE STORY CUSTOMS & TARIFFS park their vehicles on the road shoulders leaving a small portion of the rugged and dusty once tarmac road at the mercy of other traffic and pedestrians. “Malaba has become useless. How can you spend a whole day just to reach the clearance point and get things done?” Ismail Pogo, a regular driver on the route said. “Something has to be done” Uganda Revenue Authority’s (URA’s) commitment to remove Tariff and Non-Tariff trade barriers, simplifying and automating customs procedures, has not prevailed much as pillage of heavy commercial transit cargo trucks remain the biggest barriers to the implementation of the procedures. Congestion at the border town has come with its disadvantages and advantages. Insecurity with cases of robberies is prevalent in the area. When contacted for comment, a policeman at the entry point who refused to talk, later said: “We are trying to control the insecurity situation here, but it is not easy” he said as he requested not to be asked any more questions”. On the other hand, congestion means business to the hotel owners, bars and restaurants who are doing brisk business.

In an effort to curb congestion and fast clearance of goods and services, which have increased tremendously, Uganda and Kenya destinations. with funding from Trade Mark East Africa (TMEA), agreed to establish Apparently, there is no clear time frame when sanity will be restored a one stop border post to speed up the clearance and forwarding of in one of the busiest entry points. cargo. Construction work is progressing on the Kenyan side. Uganda Revenue Authority (URA) Customs Manager Eastern Region, However, the delayed appointment of a contractor to speed up Geoffrey Balamaga, says, congestion at Malaba has increased due to the works on the Ugandan side has dented the whole process. The poor infrastructure such as narrow roads and lack of bridges. presence of only one bridge along river Malaba means that vehicles “Construction of Kenya and Uganda one stop board point should have to wait for hours and hours before they get sense of their go simultaneously. If Kenya government completes its project faster than Uganda, traffic jam will likely increase more on Ugandan side,” Balamaga said. “It’s therefore mandatory for the ministry of works and transport to speed up the process of appointing the contractor”. We are here to handle Reports from Federation of East African Freight Forwarders Associations (FEAFFA) and other East Africa Revenue Authorities Your Cargo also indicate that lack of trained staff has also played a role in cargo in time clearance delays.

FEAFFA Executive Director, John Mathenge says, constant training of clearing and forwarding agents are some of the initiatives aimed at are aimed at moving the region forward. ROAD FREIGHT TradeMark East Africa’s Deputy Chief Executive Officer, Scott Allen, said TradeMark is committed to realize regional economic integration in the EAC by strengthening human resource and institutional capacity. CUSTOM CLEARANCE “TradeMark East Africa undertakes a holistic approach towards AND WAREHOUSING the facilitation of trade by identifying choke points and creating solutions to address them” Scott said. Some solutions identified by TMEA include programs such as seven one stop border posts in Mirama Hills, Ilego, Katuna and Mutukula to

SEA FREIGHT reduce transit costs incurred in cross-border movement. With the freight logistics industry in East Africa largely characterised by poor business practices due to an inadequate skills pool and limited use of modern technologies, FEAFFA and the Revenue

AIR FREIGHT Authorities through financial support from TMEA, are expanding the delivery capacity of the training facilities within the five EAC member states to hasten the attainment of the desired critical mass of 4500 UCA Building, Ofﬁce No. 108 Plot 47/49 Nkrumah Road trained agents. P.O.Box 33809 MULTI-BULK Whether this and many other initiatives will bail out the impasse at Kampala - Uganda FORWARDERS LTD Tel: +256 414 250 444 / 312 370 374 Clearing & Forwarding Agents the border post remains a question. Email: [email protected]

Freight Forwarder www.freightforwardermagazine.com 36 Issue 2, 2013 LEADERS IN TRANSPORTATION, FREIGHT AND PROJECT LOGISTICS COORDINATION WITHIN THE GREAT LAKES REGION OF AFRICA

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Terminal Port Bell, Luzira, KAMPALA, Uganda, P.O. Box 23201 KAMPALA, Uganda, Phone +256 (0)41 4 562 000, Fax +256 (0)41 4 562 111, Email: [email protected]

Freight Forwarder www.freightforwardermagazine.com 37 Issue 2, 2013 SPECIcALus toFEATUms RE STORY UGANDA REVENUE AUTHORAILRIWTYAY

Implementation of Asycuda World at URA

The advantages so far noted in the use of Asycuda World include the reduced usage of paper by customs stations and the clearing agents. In addition, the convenience of submitting declarations online without having to print/photocopy documents and deliver them to customs is another benefit which culminates into time savings and reduced costs of doing business for our stakeholders.

The implementation of ASYCUDA World at the various customs stations started (OGAs) which play a key role in international at Uganda Revenue Authority Customs with the system pilot at Jinja Customs trade facilitation. It is notable that so far, Department is one of the initiatives stations in November, 2012. The pilot at the Uganda National Bureau of Standards being implemented by the Customs Jinja was supported by 4 border stations is currently playing its border control role Business Systems Enhancement Project (Malaba, Busia, Katuna and Mutukula)which using ASYCUDA World. (CBSEP). CBSEP, one of the projects originate and receive transits to and from under the Managing Compliance Jinja customs. After a successful pilot, the The advantages so far noted in the use of Programme (MCP) is the component national rollout started in April, 2013 with Asycuda World include the reduced usage of charged with the implementation of Entebbe Airport customs station. paper by customs stations and the clearing customs reforms. agents. In addition, the convenience of The other stations where Asycuda World has submitting declarations online without In addition to the implementation of been rolled out are Malaba border station having to print/photocopy documents and ASYCUDA World, CBSEP’s other components and Mbale inland station in Eastern Uganda deliver them to customs is another benefit include the implementation of the and, Katuna and Mutukula border stations which culminates into time savings and Authorised Economic Operator (AEO) in the south western part of the country. reduced costs of doing business for our scheme, the implementation of the stakeholders. The electronic movement of Electronic Cargo Tracking System (ECTS), As of to date, all clearances at Jinja, Malaba, document between the various declaration Capacity Building in Customs and the Busia, Mutukula and Katuna Customs processing stages will result in quick implementation of the Central Customs stations are handled using ASYCUDA World. declaration processing times and as the Declaration Processing Center. In addition to rolling out ASYCUDA World to saying goes, “Time is money”, any time the various stations, the system is also being saved is money saved. The implementation of ASYCUDA World interfaced with Other Government Agencies

Freight Forwarder www.freightforwardermagazine.com 38 Issue 2, 2013 customs UGANDA REVENUE AUTHORITY

An AEO is an individual, a business entity or IV. Promote voluntary compliance to customs RADDEX government department that is involved in laws and procedures among our clients. RADDEx is an acronym standing for Revenue international trade and is duly authorized Who are the prospective clients for AEO Authority Digital Data Exchange. It enables by the Commissioner of Customs to transact program? the sharing of electronic cargo information business with Customs under special within the East African Community. arrangements. The AEO program targets the RADDEx started as an initiative between The “SAFE” stands for Security and following clients; EAC Partner states in collaboration with Facilitation in a global Environment. It is a USAID East and Central Africa Trade Hub. World Customs Organization (WCO) standard • Manufacturers (who are involved in It’s development started with version 1.0 frame work that was developed by WCO import and export) that was designed to facilitate bilateral member countries represented by their • Customs clearing agents sharing of data electronically between the heads of Customs Administrations at its • Bonded warehouse keepers EAC Partner States in 2006. Raddex 2.0, headquarters in Brussels in 2005. • Importers an enhanced version of Raddex 1.0 was The major objectives of the SAFE frame • Exporters designed in 2012 to exchange data through work are; enhancing trade facilitation and • Transporters a central databank at the EAC also referred promoting security of the International • Freight forwarders. to as the EAC Central Server. trade supply chain. It has two pillars comprising of sets of standards which are; The requirements that one has to RADDEx 2.0 Centralized Architecture Customs to Customs network standards and fulfill to be eligible for AEO program Advantages of RADDEx 2.0. Customs to Business partnership standards. Customs has developed a list of criteria that 1) Reliability e.g. These two set of standards are all geared a prospective client should have/ put in place •Timely advance information on expected towards enhancing trade facilitation and to be granted the AEO status. These include; goods. promoting security of the supply chain.The I. The individual /business for which •Faster clearance of goods through Customs Authorised Economic Operator program AEO status is sought must be involved in (AEO) is derived from the second set of international trade standardsunder the Customs to Business Be able to install and use the Customs partnership. II. automated system (ASYCUDA, e-tax) The WCO SAFE framework requires Must have a good compliance history with Customs to identify compliant and reliable III. Uganda Revenue Authority and other cross businesses, form partnerships with border regulatory bodiesof at least three them and in return offer benefits. These years. businesses would be called the Authorized Economic Operators (AEOs). Must have sufficient financial resources. •Enhanced security of data IV. The AEO Uganda program started in 2009 V. Must have implemented the AEO 2)Simplification of procedure and has taken a phased approach to Compliance program. •Pre-lodgement of customs declarations, implementation where Customs clients have •Utilization of common data thus avoiding been grouped into three programs; duplication and errors in capturing data •the importers and clearing agents program Benefits of the AEO program The program has both immediate and long 3)Enhanced Customs Control e.g. (this is the one being rolled out currently), term benefits to the AEO. •Improved bond management •the bonded ware house keepers and Immediate benefits to the business include; •Enhanced Customs user audit trails Exporters program (this will follow soon) a) Pre-arrival clearance of cargo. Here 4)Cheaper technology Used open and the an importer or exporter can process the source tools. •Freight forwarders and Transporters documents for their cargo with customs prior program (this will be the last to be 5)Faster and Scalable to the arrival of cargo at the customs area/ implemented and rolled out by end of 2014. •Faster Transmission to all related partner port satellites. b) Priority treatment at all times while •Faster development because the same The implementation of the AEO program in dealing with Customs. Customs will fast track code is reused across PSs. Uganda is being supported by Trade Mark East Africa (TMEA). the process of cargo clearance for the AEO clients, giving them priority over others. THE CUSTOMS AUTHRISED The objectives of Uganda Customs c) Choice of place of physical examination ECONOMIC OPERATOR (AEO) Authorized Economic Operator in case there is need to perform physical PROGRAM examination on cargo. The AEO client Offering a unique opportunity for success (AEO) program: The Uganda Customs AEO Program aims to; will have the opportunity to select any through Compliance, Reliability and I. Enhance trade facilitation convenient place for the examination of Partnership II. Promote customs to business partnership their cargo should their cargo be selected for The Authorized Economic Operator (AEO) is III. Promote security of international trade examination a trade facilitation initiative derived from supply chain d) Extended License period. If for example the World Customs Organization (WCO) customs licenses are issued and renewable framework of standards known as the SAFE. Freight Forwarder www.freightforwardermagazine.com 39 Issue 2, 2013 every twelve months, then the AEOs will be • Increased business turnover. The the AEO program is a WCO initiative given an extended validity period of three simplified Customs procedures lead and therefore being implemented years. to reduced clearance time which will by many countries and trade blocks. e) Self-management of bonded ware houses in turn lead shorter turnaround time. The SAFE provides for the different for bonded ware house operators This means the AEO can do more countries or trade blocks that have f) Withholding Tax exemption status. business and hence a bigger turnover. implemented AEO programs to study each other’s program and put in place g) Local Clearance. For certain agreed type of • Improved quality of service. By putting Mutual Recognition Arrangements cargo, the AEO will notify Customs of arrival in place the requirements for joining (MRAs), under which operators from one and make delivery straight to his/her premises, the AEO program, the AEO embraces country or trade block are recognized then processes customs formalities later at a best practices which will improve and accorded similar benefits in another more convenient time. the quality of service it delivers to its clients. country or trade block. For example, h) Guarantee waiver. The AEO will have the if Uganda signs a Mutual Recognition • Trustworthy and compliant business. chance to bond cargo on transit at less than Agreement with say the EU, then The AEO status means the company is 100% of the assessed bond amount. companies that export or import from low risk and can be trusted. the EU will be recognized and treated as Long term benefits to the business; • Improved Internal Control Systems. AEOs within the EU, while at the same • Reduction in the Cost of doing business. The criteria for joining the AEO time EU companies doing business in The AEO status grants access to simplified program places emphasis on good Uganda will also be recognized as AEOs Customs procedures, which would lead internal controls. The company that in Uganda. to reduced clearance time and costs joins the AEO program therefore has associated with Customs clearance to enhance its internal controls to an Status of Implementation procedures. acceptable level in order to qualify. This in turn improves the company’s • Enhanced reputation and image. Being Pilot recognized as compliant and reliable internal controls. The pilot was conducted from May 2010 enhances the business reputation of the Mutual Recognition. As stated above, • to July 2012. Seven companies including; AEO.

Freight Forwarder www.freightforwardermagazine.com 40 Issue 2, 2013 customs UGANDA REVENUE AUTHORITY

SpedagInterfreight, Nice house of plastics, Unifreight cargo handlers, DHL, Roofings Ltd, Transami (Bollore Africa Logistics), and Three ways shipping Ltd participated.

Post pilot • The instruments required to guide the operations of the program have been put in place and are available to prospective clients. These include; the Customs AEO framework, the Customs Compliance program handbook, AEO brochures and the Customs AEO process manual. • External and Internal sensitizations have been conducted to bring the stakeholders on board. Among the key stakeholders were top management of Cross border Regulatory Agencies (CBRAs) eg Uganda National Bureau of Standards (UNBS), National Drugs Authority (NDA). controls that meet the requirement for Benefits of EAC AEO program • All the staff of Customs have been joining the AEO program. The EAC AEO program is offering a number of trained and are ready for the program. Regional Authorized Economic Operator benefits including; An announcement was put out in the • program. I. Pre-clearance. media in September 2012, calling for At East African Community level the 5 II. Inward Processing Relief (IPR). expression of interest from companies Customs Administrations adopted a policy III. Self-management. who wish to join the program and by framework to implement the AEO program IV. Local clearance. the 13th August 2013, 40 companies in the region. The program is being V. Guarantee waiver. had expressed interest in joining implemented with the support of the Swedish the program. Seven companies government in collaboration with the World The unique opportunity in AEO have already been approved for Customs Organisation. The implementation Customs has implemented many authorization and will be handed AEO of the program started in 2008 and currently mordenisation programs before but the certificate on the 5th September 2013. it is at pilot stage. Two border stations of AEO is unique in that it is voluntary, offers Malaba & Katuna were selected as part of opportunity for continuous improvement Criteria for joining the Customs AEO the seven pilot sites for the regional AEO and above all it is based on a partnership program. For a company to be eligible, it program. approach which offers Customs and trade an must fulfill the following; opportunity to sit at a round table to discuss Thirteen companies selected from the five improvements to the program whenever Be a participant along the supply • EAC countries are participating in the pilot. necessary. The AEO program through the chain. i.e its business should in one of Three Ugandan companies that were selected Mutual recognition arrangement also offers the areas regulated by Customs to take part in the pilot are Nice house of cross border pacts which are a big benefit to plastics, Spedag Interfreight and Unifreight operators. • Have a history of compliance with cargo handling Ltd. Customs laws and regulations of at Just like any other opportunity, many will least three years The pilot was launched on the 17th April 2013 shun it, others will stand on the wall waiting, in Dar es Salaam attended by delegates from but the wise ones will take advantage and Have sufficient financial resources; i.e • the five EAC member states. use it as a spring board to the next level of must be financially sound and must not Once the regional program is rolled out success. In which category do you belong? have filed for bankruptcy in the recent the companies granted AEO status will be past. recognized in all the 5 EAC member countries and will be granted similar benefits within Have the capacity to connect to and • all the EAC countries thus enhancing trade THIS ARTICLE IS SUPPORTED BY use the Customs electronic systems e.g facilitation across the region. The regional Asycuda World, e-tax. AEO hosts a web site at www.wcoeacaeo-tpf.net • Implement the Customs AEO Compliance program. This contains measures that a company need to implement in order to have internal Freight Forwarder www.freightforwardermagazine.com 41 Issue 2, 2013 SPECISPECIMIALALLMIES FELFEESTONATUATUTONEREREE SSTOTORRYY BOLLORE LOGISTICS BolloréRR AfricAAIILLWWaAYAY Logistics

Patrick KATAYI Zone Managing director The strength of a team

In the first quarter of 2013, SDV Transami decision to re-brand from SDV Transami Being a strong operator along the northern re-branded to Bolloré Africa Logistics. to Bolloré Africa Logistics was to adopt a corridor, Bolloré Africa Logistics handles common name accross the continent. various types of cargo from the ports of The Bolloré Group, founded in 1822, has “ We had to settle for a name that is Mombasa and Dar-es-salaam to Kampala chosen to strategically diversify over the last easily identifiable. Our clients have easily and other destination countries like Rwanda, twenty-five years in order to achieve a better embraced it with the knowledge that they Burundi, Southern Sudan and Eastern risk distribution. It is now one of the 500 are dealing with one Global Company”. Democratic Republic of Congo. largest companies in the world. Listed on the Paris Stock Exchange, the majority interest Given Uganda’s strategic location in the Bollore Africa Logistics has more than of the Group’s stock is still controlled by the great lakes region, Bolloré Africa Logistics 30,000m2 of warehousing in Kampala to store Bolloré family. This stable majority control is in advanced stages to create a hub at goods in transit and also operates a fleet of its capital allows the Group to develop a Entebbe. “ We do intend to become the first of trucks to move cargo to any place in the long-term investment policy. operator in Africa with an airfreight service region. center at Entebbe international airport. We Patrick Katayi, Bolloré Africa Logistics’ shall be able to deliver cargo into Eastern Bolloré Africa Logistics’ good work and Zone Managing director for Uganda, Congo and receive export cargo from this service has not gone unnoticed - chosen as Rwanda, Burundi, South Sudan and Eastern zone on top of incoming cargo from Dubai one of six companies by Uganda Revenue Democratic Republic of Congo says the and other parts of the world. We shall then Authority to pilot the Athorized Economic consolidate it at Entebbe and distribute it to Operator system for which Freightthey received Forwarder a www.freightforwardermagazine.com the various destination42 countries”. certificate. Issue 2, 2013 MILESTONE Bolloré Africa Logistics

Phillipe De La KETHULE Eric LAMARE He emphasizes that by it’s nature, Commercial Director Air Freight Development Manager airfreight rates are the most expensive “ The customer is the center of our interest and we Bolloré Africa Logistics handles over means of transport given surcharges like make sure we meet our customers’ needs in terms 2,400 tonnes of cargo per year through fuel, security and handling which are of quality and specifity of service and at the best Entebbe. 90% of this volume is for import inevitable additional costs. However, rates possible”. To reach these targets the Bollore and transit only. “ We have seen a growth they are counting on their partnership Group has developed four values that guide them in volumes on both imports and exports with airlines to increase volumes growth on a daily basis; entrepreneurship, seeking the in 2013, mainly in the first half of the year through consolidations that will ensure highest performance, loyalty and integrity and with volumes stabilizing towards the last lower prices for the client. humility. quarter of the year”, says Lamare. Phillipe oversees the day to day operations of Bolloré Africa Logistics in Uganda.

The strength of a team

Peili ZHENG Sade CHILAKA Chinese Sales Representative Director of Logistics Solutions Statistics show increase in growth of Folasade’s main stay is ensuring that Bolloré Africa Logistics delivers on it’s promise to China-Africa transaction which is faster than the the client with emphasis on client satisfaction. “ We ensure that the client remains at the 6.5 % Africa economic growth hence the need core of our business”. to transact more with Chinese businesses. Peili Zheng is not only responsible for Chinese trade Bollore has been able to maintain market leadership in Uganda through extensive but also in charge of Uganda, Southern Sudan networking, unrivaled knowledge of Africa, having good financial stability and always and Burundi business interests. “ It is key for us striving to improve on the service offer. to partner with Chinese clients to ensure their logistics needs are taken care of while operating in the African continent”. Freight Forwarder www.freightforwardermagazine.com 43 Issue 2, 2013 SPECISPECIMICOVERSAALALLES FEFETONATUATUTEREREION SSTOTORRYY BOLLORE LOGISTICS COVERRRAAIILL WWSTAYAYORY

‘We’re committed to reduce cost of doing business’

Freight Forwarder www.freightforwardermagazine.com 44 Issue 2, 2013 THE FREIGHT FORWARDER caught up with HON. AMELIA KYAMBADDE, the Minister of Trade, Industry and Cooperatives to discuss a range of issues. Freight Forwarder www.freightforwardermagazine.com 45 Issue 2, 2013 It is correct that around 2009 or there about the Ministry started receiving complaints from Ugandan traders in South Sudan alleging harassment and in some case loss of lives, impounding of motor vehicles and non payment for goods and services supplied to South Sudan. This turn of events prompted the Government of Uganda through Ministry of Trade to enter into an MOU with the Government of South Sudan on Promotion of Trade relations between the two countries. The MOU among other things, provided for the setting up of a Joint Trade Dispute Arbitration Committee to consider the disputes emanating from both countries. On the part of Uganda, we constituted our side of the committee which carried out an evaluation exercise of the Uganda claims and prepared a or the last couple of months, South Sudan report which was shared with South Sudan. The has been embroiled in a bitter internal Government of South Sudan was also expected conflict. How has this impasse affected to do the same on their side, after which officials FUganda’s trade and the economy as a from the two countries were to meet and verify whole? the claims so that the bona fide traders would be compensated accordingly. However, we are still South Sudan was the main destination of our waiting for communication from the Government goods before the conflict. We were exporting of South Sudan regarding their side of the goods worth $870m per annum. And that is committee, which has made the joint verification only for the formal business. There was also the exercise not possible. informal trade, which we cannot even compute. I made a proposal to Cabinet that the We were having almost 1000 trucks going to We finished our part and we went to Government of Uganda finds a way to pay those and from South Sudan weekly, this number has South Sudan to meet their minister traders who were positively verified by the since reduced to between 150-200, and even of trade. We were told that they had Ugandan committee so that they can continue those operate under very high risk, because not compiled their list then, and that with their businesses. you cannot guarantee that you will get out of they would get back to us when they there safely. For example, there is one transport finish their part and we go through Meanwhile, we will keep pursuing the Company called Abamwe Transporters, which the two lists together. We have engagement with Government of South Sudan had a turnover of sh110m per week from ten never heard from them since. And and I appeal to all affected traders to remain trucks taking goods to South Sudan; but now now the country that is supposed to calm as we work towards a solution. it is only making sh7.5m from one truck that compensate our people is in conflict. can make the trip per week. These events have impacted negatively on our economy. The Pre-Export Verification of Conformity And we also had many services there. My advice to Standards (PVoC) programme was not to Ugandans is that we should start thinking fully embraced when it was introduced, about DRC, now that they are chairing COMESA prompting its suspension at one time. and they have some relative peace. DRC requires Last year, when it was re-introduced, all the commodities that we were taking to South city traders, under their umbrella body Sudan. of Kampala City Traders’ Association (KACITA) resisted it vehemently. How has The trade relations between Uganda the programme performed since? and South Sudan have been somewhat volatile because of the alleged The programme started on June 1st 2013 after harassment meted onto having been suspended the previous year to Uganda traders doing allow for more sensitization of the business business in South Sudan. community. It has since picked up. Some of our Many have lost goods traders have found it very convenient because while others have lost when they have their goods verified from the their lives. Some traders point of origin, they say it is easier to clear were supposed to be once you reach our border with a certificate of compensated for their conformity. It is much easier here, as they do not losses. How far has this pay any surcharge, let alone your goods being development gone? held up in a bond until UNBS gets time to inspect

Freight Forwarder www.freightforwardermagazine.com 46 Issue 2, 2013 COVERSATION COVER STORY

Hon. Amelia Kyambade Minister for Trade & Cooperatives

Freight Forwarder www.freightforwardermagazine.com 47 Issue 2, 2013 COVERSATION COVER STORY

Then, the traffic Police was also a nightmare. them. However, the informal traders are still my ministry documented Now, the EAC members have agreed that finding it difficult to embrace the programme, weighbridges be reduced. Now a truck that we have agreed that small-scale traders should all non-citizens trading used to take 20 days to travel from Mombasa put their goods in one container, and have them in Kampala during 2013 to Kampala takes only four days. Traffic officers checked at customs at the border, but this still no longer harass trucks, especially those that causes them delays in having the containers and the figures indicated in transit. opened for checking. that 55.8% of non- citizens were engaged Also key is that URA has now started There is uproar among the public on computerizing their systems. substandard products especially from in wholesale and retail Then the other big NTB is with us humans, China flooding our market. Even with, services. Unfortunately, we are still very corrupt! With more punitive PVoC, these products still made their action, I see the corruption cases reducing. way into the market. How is the ministry some Ugandans were positioning itself to fight this? covering up for these There is a massive trade imbalance in the foreigners. country. We seem to have more focus on A lot of substandard goods had already imports than exports. How can we bridge entered the country by the time we started this gap? implementing PVoC. They were in warehouses up for these foreigners. They would come and and bonds. Our borders too, are still very register a business, let us say, Kyambadde and We will never have a trade balance if we do not porous, so instead of people coming through Sons, but behind the scenes, the shops belong add value to our products. Whenever I talk to gazetted customs points, they enter through to some foreigners! Many of these foreigners our traders, I advise them on this, I tell them to villages. This is especially rampant in places come as tourists, others as investors. There was start producing, but then, they ask me; “What where we have lakes. one who was selling earrings, yet his papers showed that he had come here as an investor to should we produce?” Look at all those fruits rotting on the streets, they can be turned into UNBS has to maintain the pressure on some open an electronics assembly plant. various juices. Think about the commodities of these warehouses where people hide that we export; the coffee, cotton, hides and substandard goods. They also have to scale up The Uganda Investment Code Act is very clear skins. We export all these half processed. their sensitization efforts among the masses. on the priority areas of investment in Uganda Of course, some traders complain about the Government also has to empower UNBS so that for foreigners which include some of the issue of capital. This is where government they have personnel throughout the country, following; Steel industry, Chemical Industries, should come in with a cooperative bank with not just in the capital and at the designated Mining industry, Textile and leather industry, low interest rates so that people can afford to entry points. I must admit though, that this Construction and building industry etc. import some of this low cost machinery that we issue of substandard goods is still a big We realized that there is a gap in immigration. could use to add value to our products. challenge. We are now working with immigration to ensure that all who come here are followed up to find Your last remarks Honourable Minister? Honourable Minister, Ugandan traders out exactly what they are doing. And this is are facing an onslaught from petty bearing fruits. I would like to thank the people in the Freight foreign businessmen, which is illegal. We also are working with the Uganda and logistics business for doing a good job. This has greatly disadvantaged local Investment Authority, Ministry of Internal I would urge the shipping lines to also reduce traders thereby driving them out of Affairs, local and urban authorities to work on their costs. But I would love to encourage business. How is government trying to together during trade licensing to build us to start thinking about using rail. I know this ensure that these petty traders do not synergies, encourage and improve information may be unpopular with truck owners. push the local traders out of business? flow, so as to have a coordinated outcome. If you want to reduce the cost of doing business, we need to work on the railway. This is one of the biggest trade challenges we It has been said on several forums that are facing in trade in this country. When I was Non-Tariff Barriers (NTBs) are affecting Luckily, the EAC has come up with the Northern informed about it, I personally went down trade in the region. Is government corridor forum, where we are working on town to prove it myself. I did not know the making progress in eliminating some of infrastructure, with emphasis on the railway. extent of this issue until I realized that most these barriers? Kenya has started on it, Uganda as well, with of the shops were full of foreigners while our the northern stretch. local people only operated from verandas. The Non Tariff Barriers (NTBs) have reduced. We also want to start processing our This was because our traders could not afford Before I arrived at this ministry, clearing goods minerals even though we have a challenge the rent in the shops, which had been hiked from Mombasa would take two to three weeks. of concessioners that have been around for because the foreigners could afford it. We then Transiting from Mombasa to Kampala would more than ten years without doing any serious decided to register these businesses here (at the take at least 20 days. Why? There were all those activity. ministry). By using the trade licensing act, my weighbridges. These were terrible because if ministry documented all non-citizens trading in your truck was overweight, you would be taken Thank you. Kampala during 2013 and the figures indicated to court, and then you would have to wait that 55.8% of non-citizens were engaged in another week or so for court issues to be sorted wholesale and retail services. out. Unfortunately, some Ugandans were covering Freight Forwarder www.freightforwardermagazine.com 48 Issue 2, 2013 Engine Oils Brake Fluids Gear Oils Greases Coolants Hydraulic

High Quality Lubricants for commercial vehicles.

Nabunya Road - Ndeeba, P.O.Box 22077, Kampala Tel: (+256) 392 858 931 Cell: (+256) 752 896 185 E-mail: [email protected] Freight Forwarder www.freightforwardermagazine.com 49 Issue 2, 2013 www.charmoils.com SPECISPECIALAL FE FEATUATURERE STORY NON-TARRIFFAI LBAWRRIERSAY

Tackling Non-tariff barriers key to success of logistics industry An interview with the Chairman, National Response Strategy on Elimination of Non-Tariff Barriers (NRSE-NTBs) Programme

“If somebody tells you that they do not like weighbridges, they do not love this country,”

The East African Community Partner barriers.” Since then Partner States have to impede trade . States under the Customs Union protocol been negotiating to develop a wide range Kassim Omar, the chairman of the National which entered into effect on January of protocols for implementing the Customs Response Strategy on Elimination of Non- 1, 2005 – committed to “remove, with Union. Studies have been undertaken by Tariff Barriers (NRSE-NTBs) Programme has immediate effect, all the existing Partner States, private sector and other civil weighed into the debate—saying that the non-tariff barriers to the Trade and society organizations, all aimed at identifying elimination of NTBs will spur the logistics thereafter, not to impose any new non- and classifying non-tariff barriers and industry. tariff barriers. ensuring an effective monitoring mechanism. And in this context, Non-Tariff Barriers are Weigh bridges The Partner States also committed to defined as laws, regulations, administrative Weigh bridges along the Northern and “formulate a mechanism for identifying and technical requirements other than tariffs central corridors, as well as the conduct of and monitoring the removal of non-tariff imposed by a Partner State, whose effect is officials at these bridges, is one of the most

Freight Forwarder www.freightforwardermagazine.com 50 Issue 2, 2013 Bollore Africa Logistics Uganda Ltd. Plot M-611, Ntinda Road. | P.O. Box 5501, Kampala. | Tel: +256 414 336000, +256 312 211000. Fax: +256 414 286345 /289 191 | Email: [email protected]

www.bollore-africa-logistics.com BolloreAfricaLogisticsUganda SPECIAL FEATURE NON-TARIFF BARRIERS

contentious NTBs. Some people have even advocated for the complete abolition of weigh bridges.

Authorities say weighbridges are important to have a quality network of roads across the country, and Omar agrees. “If somebody tells you that they do not like weighbridges, they do not love this country,” he says. However, Omar is not impressed by the corruption at the weigh bridges in Uganda. He argues that due to this corruption, the state of major highways in Uganda keep on deteriorating despite the presence of weighbridges. “The level of corruption at weigh bridges is extremely high. We complain that we need good roads, but people want quick returns, so they over load their trucks, and bribe weighbridge fellows. It is live and let die,” he says.

“What are policemen, internal security people doing at weighbridges? They had said that they would put cameras, and monitoring Kassim Omar gadgets (to weed out corruption), but have Chairman, National Response they been installed?” asks Omar Strategy on Elimination of As a result of this rampant corruption at Non-Tariff Barriers (NRSE-NTBs) the weighbridges, Omar says ad hoc courts, Programme which were operating beyond 6pm and on weekends were rampant to reap off offenders. “In Kenya, there is the Kenya Maritime more with the private sector. Omar also said that the calibration of the Authority….they are now coming down “It is useless to say you want to reduce weighbridges do not give accurate readings. to address the issue of tariffs, especially the cost of doing business by saying it will “There are too many weigh bridges that when it comes down to shipping lines and take three days to transport cargo from are functional but also dysfunctional. ports. Tanzania has the Surface and Marine Mombasa to Kampala. How many kilometers Dysfunctional because they are not well Association. These two agencies also are those (from Mombasa to Kampala)? calibrated, so they are not giving out proper participate in international negotiations (on 1240 kilometers. How far is it from Jinja to readings. marine issues),” says Omar. Kampala? 80 kilometers. How long does it He adds: “How about the other three East take a truck to travel from Jinja to Kampala? We do not have a problem with weigh African Community countries (Uganda, Three hours! How many hours in a day does bridges, for as long as they are managed in Rwanda, and Burundi)? Who represents a driver have? Divide that by 1,240 and then the right manner,” he argues. them if not for the World Trade Organization you will see that we have a problem!” he Administrative challenges which provides a blanket framework for all its reasons. members?” Other than the NTBs, freight forwarders and He also says that ICT needs to be sorted the private sector in general are grappling Besides Uganda having many authorities, it is out quickly for trade to be improved in the with administrative challenges such as also often argued by critics that Uganda does region and that there should be more mutual arbitrary procedures and charges imposed by not need a maritime authority as it is land- recognition between revenue authorities of Ports Authorities and international shipping locked. Omar thinks otherwise. the EAC bloc. lines—all these increase the cost of doing “The argument of Uganda being landlocked business for the private sector in Uganda. is worthless. Other land locked countries Omar also thinks the integration of the And Omar, also the national chairman of the elsewhere have these authorities. And EAC bloc should not be rushed, and that Uganda Clearing Industry and Forwarding besides, we have a lot of rivers and lakes, we sensitization efforts should be doubled, Association, thinks that the country is not have a big chunk of the world’s biggest fresh especially with issues such as the ‘destination well placed to negotiate trade challenges; water lake (Victoria),” he reasons. model of clearance’. There is a misconception for example the arbitrary charges levied by in the public that taxes should be paid at the shipping lines. To address these challenges better, Omar port under this model, which is not entirely advises that government needs to interact true.

Freight Forwarder www.freightforwardermagazine.com 52 Issue 2, 2013 SPECIAL FEATURE NON-TARIFF BARRIERS

Status on Elimination of NTBs in Uganda

16% VAT on services (Port Charges) for all goods cleared for transit into Uganda has been removed since there was no mechanism for claiming the VAT by Uganda registered Clearing Companies

1.0 Introduction 2.0 Regional initiatives to 3.0 Key intervention areas Uganda’s major export markets are COMESA remove NTBS The project is addressing 4 key strategic at 51.6% and EAC at 24.6% respectively. In 2008 EAC the Sectoral Council of interventions areas, from which detailed Although tariffs have been removed from Ministers on Trade, Industry, Finance and action plans were developed. the East African Community (EAC) in 2005 at Investment (SCTIFI) directed the Secretariat the launch of the Customs Union, intra-EAC to develop a Time Bound Programme • Establishment of an Information trade remains low at $4.5bn accounting for for Elimination of NTBs in line with CUP. Exchange Facility only 12-13 per cent of trade in East Africa. Subsequently, the Secretariat developed • Re-alignment of National Laws and a reporting form for use by traders, and Regulations 1.1 Legal obligation to eliminate Non transporters within the EAC. National • Development & Implementation of an -Tariff Barriers (NTBs) Monitoring Committees (NMCs) were NTB Elimination Communication and The signing of the Customs Union Protocol formed in Each Partner State comprising Advocacy strategy (CUP) in 2005 formed the principle basis all institutions involved in trade facilitation • Institutional coordination on for EAC Partner States to eliminate NBTs. activities coordinated by Ministries of Trade. Elimination of NTBs In article 13 of the CUP, the EAC Partner An online Reporting Mechanism Developed States agreed to Eliminate NTBs and not to for Tripartite to support reporting by use 3.1 Establishment of an information introduce new ones. The same agreement is of forms was developed for the tripartite exchange facility (IEF) in articles 4, 49 and 50 of the COMESA treaty. region. A web based IEF. This will enable NTBs to be In 2010 the Common Market Protocol reported and captured in real time. The web (CMP) was signed. Protocol bestows rights 2.1 National initiatives to eliminate NTBS based system will enable transmission of and freedoms to EAC citizens (Rights In 2011, the Ministry through TradeMark NTB reports through mobile text message, of Establishment and Residence, Free East Africa (TMEA) hired a consultant to emails or other online method thereby movement of Capital, Free Movement of conduct a study aimed at developing a enhancing information capture beyond the Labour, Free Movement of Persons) to National Response Strategy for Eliminating physical form. The project is designed to Partner States. NTBs. In March 2012, the Ministry and TMEA establish inter-agency links to the system. signed an MOU to implement the Project. Ministry of Trade Industry and Cooperatives The project is to be implemented over a (MTIC), Ministry of Internal Affairs (MoIA), period of 3 years. Ministry of East African Community Affairs

Freight Forwarder www.freightforwardermagazine.com 53 Issue 2, 2013 SPECIAL FEATURE NON-TARIFF BARRIERS

(MEACA), Ministry of Agriculture Animal electrical product and sugar by the Republic been stopped. Industry and Fisheries (MAAIF), Uganda of Kenya was removed. National Bureau of Standards (UNBS), 5.1 Other achievements Uganda Revenue Authority (URA), Police, • All Police Road Blocks along the • Uganda and Rwanda signed a bilateral Uganda National of Roads Authority (UNRA) Northern and Central Corridor routes Agreement on Removal of NTBs and National Drug Authority (NDA), will be linked within Uganda have been removed by constituted a committee as part of to the Information Exchange Facility. Uganda Police. Only occasional and the National Monitoring Committee Reports received by the secretariat at MTIC authorized police patrols are used to of NTBs for monitoring the removal of will then be filtered to these National Focal keep security and maintain traffic flow. NTBs between Rwanda and Uganda. Points in these institutions so as to timely Terms of Reference, Work Plan and coordinate NTB elimination process. • On Weighbridges, Uganda and Rules of Procedure for the joint Kenya harmonized Axle Load control Committee were developed. The 3.2 Re- alignment of national laws and measures by implementing Gross committee identifies and reports NTBs regulations Vehicle Mass (GVM) up to 52 tones on the routes from Kampala to Kigali The project will examine NTB related depending on vehicle configuration. and holds bi-annual meeting in which regulations in order to identify areas of Kenya Weighs Transit trucks twice. identified NTBs are resolved. inconsistency with the EAC Common Market Uganda also Weights transit trucks Protocol which can be amended through twice at border points. An Inter • Subcommittees were also established statutory instruments and do not require Institutional Committee composed at Mirama Hills/Kagitumba and new laws for example decriminalizing the of UNRA, URA, UNBS, and Regional Katuna/Gatuna to monitor and report Non Compliance to Axle Load Control Truck Drivers Association in place to NTBs at these Borders. Activities of Measures. constantly monitor and propose and these subcommittees feed into the An inventory of all National Laws that are not address areas of concern regarding National Monitoring Committee of consistent with EAC Protocols will also be Management of weighbridges was NTBs. These subcommittees, both on undertaken for re-alignment constituted by the Hons. MTIC and the Ugandan and Rwandan side report Ministry of Water and Environment identified NTBs on a day to day basis to 3.3 NTB elimination advocacy strategy (MoWT). The Secretariat is at MTIC. the National Monitoring Committees. In order to influence Policy, Regulation and general implementation of the NTB • Kenyan Government removed • Established Trade Information Desks Elimination Strategy implementation, the requirements for physical inspection, at two border Posts of Mirama project will conduct high level stakeholder transit permits, payment of transit fees, Hills and Katuna to support and advocacy and general public awareness and possession of import permits from facilitate regulatory compliance and campaigns especially targeting business countries of destination by Ugandan documentation for small scale cross associations; exporters of Hides and Skins. This was border traders between the Republic • Transporters affecting about 8 Ugandan companies of Rwanda and Republic of Uganda. • Clearing Agents exporting Hides and Skins to Europe These are not only providing trade • Border Associations through Kenya Port. information to Small Cross Border • Cross Border Traders traders but also provide simplified • Insurers, etc • 16% VAT on services (Port Charges) for certificates of origin for ease of import This will raise awareness about the need for all goods cleared for transit into Uganda and export trade for Small Scale elimination of NTBs and the existence of the has been removed since there was no Traders. Coordination Mechanism and Information mechanism for claiming the VAT by Exchange Facility. Uganda registered Clearing Companies • Consultations on the Legally A National NTB communication and Binding Enforcement Mechanism on advocacy strategy will be developed and • Districts along the transit trade corridor Elimination of NTBs were completed implemented on a multi-sectoral and inter- mainly Malaba and Busia removed road and the drafted Bill approved by the agency approach blocks that had been put in place for SCTIFI and submitted to the Sectoral collection of parking fees. These were Council on Legal and Judicial Affairs of 4.0 Institutional disrupting flow of traffic and causing un the EAC for legal input. When enacted coordination necessary jam on the borders. into law, the Bill will stop Partner States The Secretariat established at MTIC will from introducing NTBs. receive, capture, filter and transmit NTB • United Republic of Tanzania dropped related complaints, to respective institutions its unilateral decision to import rice 6.0 Other areas of through IEF. MOUs will be signed with from Pakistan. The rice would then be intervention respective institutions to provide a smuggled into Uganda. In response, framework for cooperation among the focal Uganda applied full CET for all rice from • The construction of One Stop Border point officers. United Republic of Tanzania. During Posts (OSBP) programme. This activity the regional engagement, Republic of is being coordinated by the Ministry 5.0 NTBs Eliminated so far Uganda challenged United Republic of of Works and Uganda Revenue From the time the National Strategy was Tanzania which dropped the unilateral Authority. The Ministry is a member implemented in July 2012, the following decision thus stabilizing rice business of the Steering Committee and its NTBs have been removed. between the two countries. main interest is on reducing the time · Cash bonds on Uganda destined goods of clearance of cargo to quicken mainly on high value products like cars, • The practice of removing number plates clearance of cargo along Borders. from transit trucks by Uganda Police has

Freight Forwarder www.freightforwardermagazine.com 54 Issue 2, 2013 SPECIAL FEATURE NON-TARIFF BARRIERS

On the Malaba and Busia Borders Uganda side, Construction works are about 30% complete. On Kenya side, it’s about 90% complete. On Mutukula Border, the construction works are about 5% complete where as it is about 98% complete on Tanzania side. In Elegu border Uganda side, procurement for design works has been completed. The delay on the Ugandan side was mainly due to lengthy procurement and compensation procedures

• Electronic Cargo Tracking System was delivered and installed this is piloted by URA. Full implementation expected by April 2014. The system is aimed at eliminating delays and costs of escorting transit cargo to the borders and avoiding short landing of cargo. (iii) Make explicit reference to BSE in the • ASYCUDA World (Customs Clearance entering the Kenyan market. They regulations and Meat Control Act and Food, System) has been interfaced with 10 have demanded that any exporter of Drugs and Chemical Control Act. Authorized Economic Operator (AEO). sugar into Kenya possesses an entry Kenya has not yet responded All imported fuel will be cleared in permit for sugar issued by the Kenya

Mombasa and Eldorate and Kisumu Sugar Board at a cost of 1,000,000 Shipping Lines and the Port of starting February 2014 expected to Kenya Shillings for Industry Sugar and • Mombasa have continuously reduce transit days to an average of 20 2,000,000 for other sugar. Whereas introduced hidden costs that affect days. the measure was put in Place in the competitiveness of Ugandan trade. November 2013, Kenya Sugar Board has not issued any certificates till These include: 7.0 Outstanding issues for to date. This practice has therefore urgent attention. rendered Ugandan sugar failing to (i) Terminal handling Charge destination The One Stop Border Post (OSBP) • enter the Kenyan market. This is an USD 99 Border at Katuna/Gatuna. The swamp anti-competitive practice. (ii)Empty Drop Off USD 30 on the Rwandan side has frustrated the • United Republic of Tanzania demands (iii) Cleaning, disinfection, fumigation progress of constructing the OSBP as $200 business visa fee from all charges USD 20 the Rwandan government has refused business people entering Tanzania. (iv) Delivery Order fee USD 70.00 to clear part of the swamp in the Reports have also emerged that (v) Container inspection fees and survey interest of constructing the OSBP. Tanzania demands students visa fees fees USD 25 Over 1000 Ugandan overstayed cars • $50. Whereas on many occasions (vi) Remarshaling Charges (In case are stuck at the Port of Mombasa the United Republic of Tanzania has containers are not transferred on time due pending destruction. Whereas Kenya declared to have removed this NTB, in to late submission of Bill of Lading, KPA will Government granted a waiver to the practice it is still happening. charge re-marshalling and storage charges) Ugandans to remove the overstayed • Denial of a full license to a Ugandan USD 150 cars in a period of one month, Uganda Container Freight Station. The CFS was (vii) Wharfage: (cargo handling at port done Revenue Authority has demanded only granted a partial CFS to only clear by KPA, previously was outsourced) charge that the owners first pay taxes here Uganda cars and not Kenya bound USD 100 in Uganda before they are allowed to cargo. This is an anti-competitive bring the cars into Uganda. The car practice. 8.0 Conclusion and way owners have rejected this demand • The ban of beef and beef products forward noting that they can’t pay the taxes as from Kenya is still a challenge that NTBs mutate in a number of ways especially per the URA tax guideline for cars since needs to be resolved. A team from within the Republic of Kenya. Therefore the cars have been greatly damaged Uganda Comprising of Minister a holistic approach in form of a bilateral and have lost value. from Uganda travelled to Kenya and meeting with the Republic of Kenya needs Owners are of the view that they be allowed together with the Kenyan government to be held. Previously, an invitation was to bring the cars, be valued for tax purposes agreed that Kenya formerly extended to Kenya 2012 but Kenya while in Uganda and pay the taxes based on (i) Review the Legal Notice No.69 of did not respond. This needs to be followed such a value. URA has rejected the request December 1996 of the Animal Diseases up as a priority. and advised owners to first pay taxes and Act to reflect that all countries affected by then be allowed to bring into the Country Bovine Sponiform Encephalopathy (BSE) are A meeting needs to be organized with the these cars. targeted; major shipping lines to address the issue of (ii) Enhance capacity of the veterinary hidden costs imposed from time to time. Kenya has re-introduced measures • services for testing and detection of Meat that prohibit Ugandan Sugar from and Bone Meal (MBM); and Freight Forwarder www.freightforwardermagazine.com 55 Issue 2, 2013 IN-LAND PORT

Bukasa In-Land Port Alfred Obong, in progress project coordinator

Sustainable development is about positive growth – making economic, environmental and social progress for this and future generations. In future bukasa shall provide an alternative route to mombasa PORT.

The proposed Bukasa Inland port project Why Inland port? is on going. On completion, the port will Some critics have even argued that instead of Mr. Alfred Obong, the area project be fully equipped and well connected embarking on a new and expensive project, coordinator says that the development of to the hinterland. Some of the activities government should expand already existing the inland port is of strategic importance to that have been completed so far include; in-land ports like Port Bell and Jinja. Uganda. opening the National Forestry Authority’s “Infrastructural projects are planned to land boundary, Survey of the boundary has help achieve sustainable development. also been done and controls and beacons The objectives of the inland part are to further Sustainable means better lives for current built, a draft map has been produced though integration by unlocking the under-developed and future generations and development the final map is yet to be produced & printed. potential in Uganda and Tanzania; reduce means growth’” he says. The Contractors for ESIA and RAP have all transport costs and delays caused by road “So sustainable development is about been procured---but the contracts are yet to haulage, with the northern Tanzania port of positive growth – making economic, be signed. Tanga and Musoma on lake Victoria dealing environmental and social progress for this with cargo traffic destined for Uganda and and future generations. In future Bukasa The project being handled by both the South Sudan. shall provide an alternative route to Ugandan and Tanzanian governments will Mombasa which is currently overwhelmed in include construction of a railway line from The Port is also aimed at re-orienting the handling cargo” Tanga to Arusha then to a dock in Musoma southern corridor trade and investment on the Tanzanian side. Freight will then be through the promotion of human settlement The congestion at Mombasa, coupled with ferried the 350km distance from Musoma to and the promotion of smooth interstate other vices like arbitrary levies have been the new port in Bukasa, across lake Victoria. It trade and investment in order to create job a dagger in the hearts of importers and will then be moved by rail to Kampala. opportunities and enhance the people’s exporters in Uganda. standard of living. Freight Forwarder www.freightforwardermagazine.com 56 Issue 2, 2013 IGoods In TransitIITracking Your CargoI ICustoms BrokerageIIConsultancy in Logistics & TransportI ICustoms Transit BondsIIBonded and Free ware HousingI IProject Planning and ClearingI

Service with a maximum concern

BTS Clearing & Forwarding Ltd Clement Hill Road Postel Building First Floor, Suite 6. P.O.Box 28904 Kampala Tel: +256-414-254191 Fax:Freight +256414-254188 Forwarder www.freightforwardermagazine.com 57 Email: [email protected] Issue 2, 2013 www.btsuganda.net IN-LAND PORT BUKASA PROGRESS

In 2007, Uganda faced the brunt of the post- Other than the Bukasa port; government is undertaking other measures to election violence in Kenya as trucks were improve on the movement of cargo in Uganda as shown in the chart below. held up in East Africa’s biggest economy. Further, he says that in order to fulfill its Division Projects Current status purpose of helping achieve sustainable AIR INFRASTRUCTURES Development of Proposed Airport development, infrastructure planning must Upgrading of Kasese Airport to International Design completed not simply be about scrutiny. Planning must standard be a creative exercise in finding ways to Upgrading of Gulu Airport to International standard Design completed enhance and improve the places in which we live our lives, in this case the East Africa Roads Infrastructures Development of One Stop Border Post at Procurement processes on Region. Malaba , Katuna, Busia and Mutukula going “It is for the above stated reasons that Rail infrastructures Upgrading of KampalaMalabarailway line ( In design stage the Ministry of Works and Transport 250 km) to standard gauge under the Directorate of Transport put Upgrading of Kampala- Kasese with branch Procurement for the design in to Kigali railway line (800km) to standard progress priority in planning for relevant major gauge with branch to Miramba Hills infrastructure projects that trigger growth Upgrading of Tororo- Packwach, Gulu- Procurement is on-going and development not only for the country Nimule railway line to standard gauge Uganda but for the East African region as Construction of Inland Container Deport Sourcing for funding on going well,” explains Mr. Obong. (ICD) at TORORO, PAKWACH & MUKONO The government is open to partner with Design of Bus Rapid Transit in Kampala City Draft final Design to be the private sector in developing transport produced infrastructures of which Bukasa Port is amongst. Water Transport Development of NEW Kampala port in ESIA,RAP AND SURVEY on “The country is preparing to adopt PPP in Bukasa going the implementation of some of the major infrastructure projects; however, other Design of port infrastructure and ship at Port Interim report for final design Bell to be completed in May 2014 options like EPC AND PARTNEERING shall be explored in the event that PPP failed,” he says. Next financial year’s actions of controversies either. Recently, the media development. Mr. Obong says that activities, in regards to carried reports that the residents in Bukasa the compensation of the affected persons, were against the project. Some critics have even argued that instead of have been planned for implementation in embarking on a new and expensive project, next financial year (2014/2015). Mr. Obong says that the tensions have since government should expand already existing been diffused. in-land ports like Port Bell and Jinja. However, The resettlement action plan will see “The project development principles have Mr. Obong thinks such a move is not feasible. the finalisation of the RAP and the due been explicitly explained to the people who “Due to lack of land for the extension of the compensation of the persons affected by the will be affected and as of now there is no modern port at Port Bell coupled with the project more tension since most of the land may increased traffic on the lake there is need for a The Environmental and Social Impact fall on the area under the jurisdiction of the completely new Kampala port,” he said. Assessment that will include conducting the National Forestry Authority (NFA),” he says. Mr. Obong also says that there is need for environmental impact assessment, securing “Compensation plan has been accepted operationalizing the coordination office in the land area under control of the NFA by the people who will be affected by the Arusha so that there is constant engagement (National Forest Authority) will also been project; this is the reason for conducting on the regional connectivity project trucking done in the 2014/2015 financial year. ESIA and RAP as first option, before detailed and benchmarking. Furthermore, the survey work that will design takes shape.” include the preliminary survey of the road and rail hinterland connections, Kampala As a result of some people’s opposition industrial park at Namave, the route Survey to being relocated to create way for the of the road and railway corridor (Bukasa- development of the port, some sections of Industrial Park), mapping and demarcation the media also reported that government is of the project affected area, discussion and considering reclaiming some of the forest consultation with PAPs (Project Affected reserve to construct the in-land port. Persons) and the property Verification and Mr. Obong explains that based on the referencing will also be done in the next position of the forest reserve that extends financial year. to the lakeshore there is an amicable negotiation going on between the NFA and Controversy the MOWT to determine the section of the The project has not been spared its fair share forestland that may be affected by the port

Freight Forwarder www.freightforwardermagazine.com 58 Issue 2, 2013 ADVOCACY SHIPPER’S COUNCIL

10° 10°

Shippers’ Council roots for smarter ways of doing business

With Uganda facing one of the highest import Pakistan, who is supplying a given Company, port to the final destination, for example costs in the world, the Uganda shippers’ (A&B Company ltd) in Uganda 10 tones of Kampala Uganda. council is rallying cargo owners to be smarter rice, is going to give you an invoice that as they import goods with ways that would go involves the cost of the goods (Rice) and the Under the CIF arrangement, unlike the above some distance in reducing their costs of doing transportation from the factory to a port, for two, the component of insurance is factored business. A change of strategy would also example, Port Qasim. As soon as he loads this in. Essentially, this means that on top of the boost the fortunes of local insurance players container on board the ship, the rest does not cost of goods and freight, a supplier will too. concern him,” he explains. incorporate insurance costs in the invoice that “The buyer in Uganda (ABC) then takes he sends to an importer in Uganda. Background responsibility of the sea freight charges from Essentially, there are many incoterms in Port Qasim to Mombasa,” explains Kankunda. This, Mr. Kankunda says, is where many trading BUT three international commercial Under the CFR arrangement, a supplier let shippers (importers and exporters) and the terms of trade are common to people in the us say in Pakistan will be paid for the cost of country at large get a raw deal. Because the import and export business; the Free on Board goods and freight from the factory to the port shippers want as little bother as possible, they (FOB), the Cost and Freight (CFR), Cost of and aboard a ship to an East African port that are often very quick to accept when a suppliers Insurance and Freight (CIF). is defined i.e. Mombasa. Upon the arrival of offer to insure their goods on the high seas. Amos Kankunda, the secretary general of the the goods at Mombasa or Dar es Salaam, the Even after paying over the odds for the cost Uganda Shippers council explains how FOB shipper or importer then takes care of the and freight, the cost of insurance is often works: “ It means that the supplier, say in transportation of goods from the respective Freight Forwarder www.freightforwardermagazine.com 59 Issue 2, 2013 ADVOCACY SHIPPER’S COUNCIL inflated by these suppliers abroad. you with a insurance certificate are adverse. shipping lines have offices in Uganda. “Our concern is that our shippers do not “When your goods arrive in Mombasa without “The best intervention would be for us to see that a company (XYZ) in Pakistan, an insurance certificate, Uganda Revenue talk to our shipping lines in Uganda so that when it gives you an invoice for the cost of Authority will charge you 1.5% of the cost of our shippers just negotiate for freight rates goods and freight, you are giving liberty/ an goods and freight as insurance. This is too here! And say I have my containers at place opportunity to make more. When he goes to expensive as the local insurance Companies X and i want you (shipping line) to pick them negotiate with the shipping line, he adds in can only charge you around and about for me, I will ask for the quotation of which his percentage. So if he charges you $1000 0.5 % of the cost of goods and freight as I am able to even bargain. So I give them for insurance, he will take advantage of this premium. This would help the shippers save addresses of where the goods are and they situation and add other unnecessary costs a lot thereby reducing their costs of doing will be able to get the cargo to the nearest since he has been given the opportunity to business”. port—but the key thing is to deal with have the goods delivered from his factory up Scores of traders have mysteriously lost shipping lines locally,” he says. PLACE YOUR AD. to the destination port,” goods on the high seas, and their efforts at The benefit of this kind of arrangement “Even if its $100 (top up), it is still a lot of recovering them at the cost of the insurance is the walk in business, face-to-face IN OUR MAGAZINE. money,” have turned out to be a wild goose chase. business interaction the trickle-down The Freight Forwarder is the region’s only Is that insurance really paid? Interventions effect of increased business with local logistics-focused glossy magazine published A MAGAZINE FOR THE UGANDA FREIGHT FORWARDERS ASSOCIATION ISSUE N0. 2 Then there is the question of whether the As a result, the Uganda Shippers’ Council companies that employs East Africans. supplier/company abroad who receives the is urging the shippers to deal with the local This arrangement will not only increase by Charm Media Africa for stake holders, money from a shipper in Kampala actually offices of the various shipping lines when on the businesses that our local insurance executives, entrepreneurs, governments insures their goods. importing their goods and also insuring their companies will get but also save the and professionals. Its execellent writing and “He can say CIF even when he has not goods with the local insurance Companies. shippers of unnecessary charges they incur insured the goods! After he has put the This would be a win-win situation for both the from the suppliers like container cleaning compelling design take readers inside the stories goods on the ship, he gets on his knees and shippers and insurance companies here—as in services, destination charges and vessel of the industry and individuals in the region. prays that the goods arrive safe! Even when case of the disappearance of goods, it would delay surcharge. Engaging proﬁles, provocative coverage of issues Hon. Amelia they arrive, some times you are lucky to be easier for one to follow up with a local and stylish executive lifestyle features make Kyambadde receive all of them because they some times insurance firm, as opposed to dealing with an Talks Trade, Non-Tariﬀ Barriers and government commitment also disappear! However he charges you for elusive individual or company abroad. each issue an inspiring read. to reduce the cost of doing business. insurance yet in reality he has not insured The insurance sector also benefits from this The Secretariat Single Customs your goods. That is why in most cases the kind of arrangement as they will get more Find us: 2nd floor, DAKS suppliers will not give you an insurance premiums, and in the long run the whole Building, Plot 64, Kira Rd FREQUENCY Territory will certificate,” Kankunda argues. economy benefits. Tel No: +256 794 393 202 be a success Implication The Shippers Council is also urging shippers to Mobile No: +256 754 393 202 2 Issues/ Bi-annual Implementing The implication of ensuring that your goods deal with shipping lines locally; through their Email: [email protected] Asycuda World are insured by a supplier or a third party representatives. Many of the World’s biggest SPECIAL FEATURE: CIRCULATION Why Entebbe is the at URA most expensive airport abroad and they subsequently fail to avail One of the initiatives being in Africa implemented by the Customs 10,000 Business Systems Enhancement Project AND SO MUCH MORE INSIDE READERSHIP 50,000 We provide you a wide range of services to assist you accomplish success in the shipping industry. WHY MAGAZINE BRANDS WORK* Our services vary from a strong network with other shipping stakeholders to a platform for lobbying and advocacy, they include:

Networking with other shipping stakeholders ACTION ENGAGEMENT TRUST INFLUENCE A solid membership base that links you with other stakeholders such as: cargo owners, authorities and service providers) More than 60% of print Magazine readers Magazines and Magazine readers rank Information on cargo, shipping and logistical issues We seek to o er you with a wide variety of essential cargo, readers take action spend an impressive newspapers are the #1 and #2 as most shipping and logistical information, which includes: on magazine ads and 41 minutes with each most trusted media, influential consumers Necessary information on cargo, shipping and logistics The latest news and developments in shipping 43% of readers make issue and 73% of ranking higher than across multiple The latest events a ecting shipping Monitoring and updates on key policies and issues a ecting the shipping industry online purchases vs. readers read or tap on TV, radio or internet. product categories. A monthly newsletter 21% of non-readers. ads in digital editions. Magazines top the list Representation & Lobbying Our involvement with many shipping companies, port and revenue of media influencing authorities, industry stakeholders as well as East African governments. This puts us in an ideal position to represent you acting in your best * Source: Association of Magazine Media, 2012/2013 factbook consumers for interests, and presenting you with a platform to voice your opinions to the inuential decision makers and policy makers at the East African apparel and clothing. Community Level. Newspapers rank 3rd. Capacity building Training to building your capacity and ensure the Secretariat’s www.ugandashippers.com development and sustainability. DAKS Building, Plot 64, Kira Road Kamwokya Tel: (+ 256) 794 / 754 393 202 PLACE YOUR AD. IN OUR MAGAZINE. The Freight Forwarder is the region’s only logistics-focused glossy magazine published A MAGAZINE FOR THE UGANDA FREIGHT FORWARDERS ASSOCIATION ISSUE N0. 2 by Charm Media Africa for stake holders, executives, entrepreneurs, governments and professionals. Its execellent writing and compelling design take readers inside the stories of the industry and individuals in the region. Engaging proﬁles, provocative coverage of issues Hon. Amelia Kyambadde and stylish executive lifestyle features make Talks Trade, Non-Tariﬀ Barriers and government commitment each issue an inspiring read. to reduce the cost of doing business. Single Customs FREQUENCY Territory will be a success 2 Issues/ Bi-annual Implementing Asycuda World SPECIAL FEATURE: CIRCULATION Why Entebbe is the at URA most expensive airport One of the initiatives being in Africa implemented by the Customs 10,000 Business Systems Enhancement Project AND SO MUCH MORE INSIDE READERSHIP 50,000

WHY MAGAZINE BRANDS WORK*

ACTION ENGAGEMENT TRUST INFLUENCE More than 60% of print Magazine readers Magazines and Magazine readers rank readers take action spend an impressive newspapers are the #1 and #2 as most on magazine ads and 41 minutes with each most trusted media, influential consumers 43% of readers make issue and 73% of ranking higher than across multiple online purchases vs. readers read or tap on TV, radio or internet. product categories. 21% of non-readers. ads in digital editions. Magazines top the list of media influencing * Source: Association of Magazine Media, 2012/2013 factbook consumers for apparel and clothing. Newspapers rank 3rd.

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