Uganda Revenue Authority improves the efficiency of customs processing resulting in higher revenue collections and a decrease in average time to clear customs consignments. These results will contribute to a reduction in transport costs and time in East Africa
According to the URA, it costs transporters $200-250 per day when trucks are delayed along the transit routes. Part or all of this cost is passed on to the owner of goods. As a result, the cost of transport tends to increase the further inland the destination of cargo, not only because of distance but also the number of stoppages along the routes The major transit delays in the region include roadblocks by police and customs authorities, weighbridges, physical escorts and border clearance, and they vary from country to country. In Uganda, the major delays arise from physical escorts, which are considered a major non-tariff barrier in the region. URA further indicates that physical escorts in Uganda have the effect of increasing the transit period from 1 day to 3 - 4 days, effectively resulting into an estimated increase in transport costs of about $400 - $500, the additional cost paid as a result of the increase in transit period.
The aim of this project is to implement an electronic cargo tracking system to reduce delays resulting from transit. Key outputs include;
- Electronic Cargo Tracking System(ECTs) procured
- Business and URA staff trained to use the ECT system
- ECT system piloted on the major transit routes in Uganda
- ECTs rolled out to all customs stations
- Physical escort of transit goods eliminated.
TMEA is providing financial and technical support to URA to implement the electronic cargo tracking system