The Commissioner General of Uganda Revenue Authority, John Rujoki Musinguzi, has decried what he described as fraud in groupage cargo clearance.
The fraud is allegedly perpetrated by a group of individuals who are commonly known as “Container leaders.”
The group behind Container-led cargo clearance is accused of often withholding goods imported by small traders who have lodged a complaint to the Uganda Revenue Authority.
This comes amid complaints from importers whose goods remain stuck in bonded warehouses despite having passed inspections and tax clearance processes.
Responding to the concern of some of the traders, Musinguzi assured the victims that action would be taken against those exploiting innocent traders.
“You have suffered enough at the hands of people who used our name to deceive you,” he said.
“The individuals and companies exploiting hardworking Ugandan traders by holding their goods and falsely blaming the Authority for delays will be held to account.” Said Musinguzi.
Many small-scale traders have embraced groupage cargo clearance. They would ship their cargo into one container and have it cleared by one person or container leader who would clear it under his or her business name and tax identification number (TIN).
A row, however, emerged after some of the traders claimed that the “Container Leaders” were holding their cargo for up to six months.
The Container leaders who acted as intermediaries reportedly misrepresented shipping and clearance costs, claiming additional charges had been incurred, and withheld goods to pressure traders into paying more.
Following the complaints, URA said that while it allowed cargo consolidation by different traders, it was not allowing the “Container Leader” system because of the flaws associated with it.
URA said the container leaders were wrongly assessing the small importers and therefore enriching themselves at the expense of the small individual importers. This practice has reportedly caused serious disruptions to businesses, leading to financial losses, mounting debts, and loss of working capital due to prolonged inactivity.
Rujoki Musinguzi expressed sympathy for the affected traders and pledged action against individuals and companies involved in the alleged extortion. URA has so far identified 34 companies and individuals involved in “container leaders” operations.
He invited victims to present their cases at his office in Nakawa, accompanied by national identification, payment receipts, packing lists, bills of lading, or relevant logistics correspondence, to facilitate action against the fraud.
However, the Kampala City Traders Association (KACITA) has opposed any attempt to restrict or eliminate container leader operations, arguing that they play an important role in easing business for small-scale importers.
“URA’s restrictions on consolidated clearance disrupt cash flow and could push small businesses out entirely because of the bureaucracy involved in shipping, handling, and tax clearance,” KACITA said.
The association argues that the system emerged to bridge gaps between traders and tax authorities, noting that existing formal systems tend to favour larger businesses. Most small traders reportedly lack the capital to fill entire containers and are unable to directly handle clearance procedures or meet requirements such as having a Taxpayer Identification Number (TIN).
As a result, groupage shipping has become a practical solution for them. KACITA has therefore proposed the development of a formalised system tailored to the needs of micro and small traders.
Uganda Revenue Authority insists that it has not banned groupage importation or cargo consolidation in one container for shipping purposes.
It says once the goods have arrived at the customs, they should be transferred into each importer’s name / TIN so that they are individually assessed for tax as per the imported goods.
The Uganda National Bureau of Standards (UNBS) has also raised concerns about clearing agents, noting instances where required procedures, such as obtaining the Import Clearance Certificate (ICC), are bypassed, affecting the release of cargo.
Ronald Ahimbisibwe, Acting Manager for Import Inspections at UNBS, said some traders are unaware of the ICC requirement, a gap sometimes exploited by agents. URA’s Musinguzi reassured affected traders that decisive action would be taken against those exploiting them.
“You have suffered enough at the hands of people who used our name to deceive you,” he said.
“The individuals and companies exploiting hardworking Ugandan traders by holding their goods and falsely blaming the Authority for delays will be held to account.” URA has so far identified 34 companies and individuals allegedly involved in “container leader” operations.
Thadeus Musoke Nagenda, Chairperson of the National Entrepreneurs and Traders Association, said any suspension or restriction of groupage clearance would negatively affect small traders who depend on shared containers due to limited capital.
He called for dialogue rather than a blanket ban, warning of potential cash flow challenges and threats to livelihoods for thousands of traders.
He proposed the establishment of a joint task force or agreed framework to regulate taxation and clearance of shared containers, noting that container leaders also provide credit-based services to traders.
Similar sentiments were expressed at a recent traders’ meeting with URA by Issa Ssekitto, spokesperson for KACITA Uganda, who urged the Authority to target fraudulent individuals rather than dismantle the entire system-URN. Give us feedback on this story through our email: kamwokyatimes@gmail.com
