Uganda’s tax body, Uganda Revenue Authority (URA) has granted Uganda Breweries Limited (UBL) Authorized Economic Operator (AEO) license, during an event held at Speke Resort Munyonyo on November 11th 2022.
An Authorized Economic Operator (AEO), according to the World Customs Organisation (WCO) is a party involved in the international movement of goods, that has been approved by, or on behalf of, a national customs administration as complying with WCO’s or equivalent supply chain security standards. AEO status is an internationally recognised quality mark that shows the holder has customs control procedures that are internationally accepted. Because they are recognised as low-risk companies, they are usually accorded faster clearance procedures with customs.
According to URA, “an AEO is a company highly trusted by the revenue body-that even with less surveillance, such a company is expected to assess itself and willfully pay taxes. The companies are also able to self-regulate, self-assess and also work seamlessly with URA in regards to their operations with URA.”
AEO is a regional trade facilitation programme recommended by the World Customs Organization(WCO) to ease trade and customs clearance for tax-compliant importers and exporters.AEO facilitates trade and promotes the security of the international trade supply chain.
“Under this status, businesses which comply with customs laws and regulations will benefit from customs preferential treatments such as fast clearance of their goods through simplified procedures, reduced inspection authorized company in Uganda is therefore eligible to apply and join the EAC AEO regional program and thus when authorized, can now enjoy the regional benefits which apply equally in all the five EAC countries.”
Uganda Breweries Limited will be in a position to perform electronic declarations without attaching supporting documents, ability to make pre-clearance or pre-arrival declarations and automatic renewal of withholding tax exemption.
Commenting on the AEO status, Jackie Tahakanizibwa, the UBL Corporate Relations, Public Policy, and Regulatory Affairs Manager said: “The long wait is over; we have been granted AEO status. I thank the team at URA for this development and all we can promise our clients and regulators is increased efficiency and improvement in production“.
Other benefits include priority treatment when Customs select the goods for examination and improved cargo handling efficiency at the seaport that results in quick container and truck turn-around time to minimize demurrage and truck detention costs.
The primary targets for AEO are manufacturers, customs clearing agents, bonded warehouse keepers, importers, exporters, transporters, and freight forwarders. “Under the AEO program also, there is an arrangement called Mutual Recognition Arrangement (MRA); where other customs administrations recognize the AEO program of their counterparts. This can be at a bilateral, sub-regional or regional level.”
Uganda Breweries Limited was awarded the AEO status along with 23 other companies, increasing the number of AEOs to 118.
Speaking at the function, John Musinguzi Rujoki, the URA Commissioner General said that during the just-ended FY2021/22, AEOs contributed UGX3.594 trillion which was approximately 42% of the total customs revenue of UGX8.444 trillion.