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URA Crackdown! Bonded Warehouse Licenses Hang in The Balance

by Walakira John
3 weeks ago
in NEWS
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URA Crackdown! Bonded Warehouse Licenses Hang in The Balance
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By Mulengera Reporters 

Tension is rising in Uganda’s trade sector after the Uganda Revenue Authority (URA) unleashed a tough new crackdown on Customs Bonded Warehouse operators, warning that failure to comply with strict standards could lead to automatic cancellation of operating licenses.

 

The development, reported in today’s (23rd Feb 2026) Daily Monitor, signals a dramatic shift in oversight of bonded facilities —key pillars in Uganda’s international trade system where imported goods are stored under Customs control before taxes are paid or before they are re-exported.

 

Because taxes on these goods are suspended while in storage, bonded warehouses represent a major revenue exposure to government. Any loophole, any missing item, any weak control can translate into massive losses.

 

And URA says it will no longer tolerate gaps.

 

In a firm directive signed by Commissioner General John Rujoki Musinguzi, all licensed warehouse operators have been ordered to immediately strengthen internal controls, tighten access management systems, and ensure full accountability for every single item under customs supervision.

 

The warning is blunt. All goods in bonded warehouses remain under Customs control at all times. Any loss, substitution, or unaccounted-for goods is not just poor management, it is an offence under the East African Community Customs Management Act.

URA says the new measures are aimed at sealing compliance gaps that have in the past led to revenue leakages, diversion of goods, and weak traceability systems.

 

Under the sweeping changes, bonded warehouses must now install controlled access systems capable of recording the identity and purpose of every person entering or leaving the premises. Staff and visitors must wear reflector jackets while inside warehouse facilities to enhance monitoring and visibility.

 

Loaders and casual workers must be issued distinct uniforms and unique identification numbers. Operators are required to maintain updated staff records complete with photographs and National Identification Numbers. The aim is to eliminate anonymity and close every possible door to illegal diversion of goods.

 

URA is also demanding functional examination areas for inspections, reliable record-keeping systems, and secure storage infrastructure that prevents tampering or unauthorized access.

 

The authority has made it clear that performance will be closely monitored through inspections and key performance indicators. These assessments will directly influence the renewal of bonded warehouse licenses for 2027 and beyond.

 

Operators who fail to meet the prescribed standards face penalties, payment of duties on unaccounted-for goods, and possible automatic cancellation of their licenses.

 

“We will not hesitate to take enforcement action, including license revocation, where operators fail to meet the required standards,” Musinguzi warned, emphasizing that the measures are meant to protect Uganda’s revenue and ensure fair trade practices.

 

With trade volumes increasing and supply chains becoming more complex, URA’s message is loud and unmistakable: compliance is no longer a suggestion — it is the law.

 

For bonded warehouse operators, the countdown has begun. (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).

 

 

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