East African tax authorities clarify customs valuation and import pricing

Tax authorities in Uganda and Kenya have provided clarifications regarding customs valuation and the pricing of imported goods to address consumer and trader concerns.

In Uganda, the Uganda Revenue Authority (URA) explained that price discrepancies for identical imported products between different retailers are not necessarily due to tax evasion. URA Commissioner General John Musinguzi Rujoki stated that while the authority uses a standardized valuation system aligned with World Trade Organization (WTO) guidelines, final retail prices are influenced by various business costs incurred before goods reach the consumer. The URA utilizes transaction values and a valuation database to ensure fairness and prevent under-declaration.

Similarly, the Kenya Revenue Authority (KRA) clarified customs tax assessments for consolidated cargo, a method frequently used by small-scale traders to pool shipments and reduce logistics costs. The KRA noted that valuation is governed by the East African Community Customs Management Act, with duties assessed based on the transaction value of goods provided they are supported by proper commercial documentation. This consolidation process aims to simplify shipping formalities and provide a more predictable clearance process for small businesses.