URA explains passenger luggage taxes

In its response, URA clarified that taxes on passenger baggage are guided by the East African Community Customs Management Act (EACCMA) of 2004, specifically under the fifth schedule, which outlines exemptions and thresholds for passenger luggage. According to the updated guidelines, which came into effect on July 1, 2024, the duty-free threshold for personal luggage has been raised from USD 500 to USD 2,000 for passengers who have been outside the country for more than 24 hours.

The key issue raised by URA is that the exemption applies strictly to personal goods intended for individual use and not for items that could be perceived as being for commercial purposes or resale.

The items must also be accompanied by the passenger and listed under their name. Any goods perceived as exceeding these limits or intended for distribution are subject to taxes, regardless of whether they are within the luggage allowance provided by the airline.

URA's Assistant Commissioner for Public and Corporate Affairs, Robert Kalumba, explained that the goal is to curb abuse of the passenger baggage exemption by those engaging in trade while posing as casual travellers.

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"With 19 scheduled flights to major trade hubs like China, India, Dubai, and Turkey, we have observed increased risk of passengers engaging in commercial activities using trade goods disguised as personal baggage. These updated customs clearance procedures aim to ensure efficiency and compliance," he stated.

URA also highlighted three key steps in the new procedures:

Timely Tax Payment: Travellers with goods that are subject to tax must pay the assessed taxes within two hours of arrival to avoid congestion. Failure to do so will result in the goods being transferred to the cargo terminal for further processing.
Baggage Weight Limit: Passengers carrying goods over 50kg in weight or those with commercial value, including electronics, phones, and spare parts, will have their baggage transferred for non-passenger customs clearance, requiring traders to register tax identification numbers.
Returning Residents Exemption: Ugandan residents returning from at least one year abroad can enjoy a waiver on their household goods if they have stayed outside Uganda for that period. However, electronics like TVs and used computers are excluded from this exemption and will be taxed on arrival.

In response to the frustrations raised by passengers like Namale, Kalumba encouraged travellers to familiarise themselves with the customs regulations to avoid unpleasant surprises. He added that while some may feel inconvenienced, these measures ensure smoother facilitation for all passengers and prevent misuse of the exemptions.

Passengers are advised to consult the URA website or contact the authority for further details on what can and cannot be packed without attracting taxes upon arrival at Entebbe International Airport.