UGANDA AND CHINA SIGN AGREEMENT TO EASE TRADE AMONG THEMSELVES

In an effort to enhance trade relationship between China and Uganda, the two countries have signed and launched an Authorized Economic Operator (AEO) Mutual Recognition Arrangement which will see Uganda importers access producing factories in China in order to overcome challenges brought by middle men and the exporters to China will also access that market without much restriction.

 This was revealed in a press conference held at URA headquarters in Nakawa, Kampala were the commissioner in charge of customs Abel Kagumire informed the reporters that Uganda traders will now be free to access other parts of China and even purchase direct from factories

Kagumire said that the agreement will also help URA in area of tax assessment because it will be able to track the prices for the commodities imported from China. He said tax assessment has be threatened by a challenge of difficult in knowing the factory price hence limiting tax collection.

“The Authorized Economic Operator (AEO) program will not only ease trading between the two nations, but it will also help URA assess and collect taxes well and this will improve the tax revenue collection because the exchange of information will be easy.” Kagurire said.

He adds: “The AEO program is only for trusted importers and exporters who have been vetted, audited, inspected and are cleared by all URA departments as well as other line government agencies.”

According to commissioner Kagurire, the AEO agreement was signed in 2021 but because of Covid-19 pandemic it was not possible to implement it until now.

The Ugandan traders who qualifies for AEO program are now recognized as reliable and trusted trade partners and will benefit from faster clearance in China, reduction in cost of business for both countries.

The two countries reach at such Mutual Recognition Arrangement during the AEO Global conference held in Dubai some time back were since its inception,  Uganda is the best performing country in EAC with 118 companies so far cleared as trusted importers and exporters and is followed by Rwanda 58 while Kenya has 23 and Tanzania only 3.

The Chinese ambassador to Uganda Ozhanga Lizhong who addressed journalist in the same press briefing, said that the AEO said that Uganda is now free to export more products to the Chinese Market as long as they are of high quality.

“China now well comes more high quality products from Uganda to its market because this will help to improve the well-being of both countries.” Ozhanga said.

He further said that when the trade between the two countries is enhanced, even the overall relationship grows stronger and their citizens will benefit more.

Bukenya George

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