When you import goods into Uganda, are they meant for local shelves or simply passing through on their way to another country? That simple question now carries big financial implications for traders. The Uganda Revenue Authority (URA) has tightened the rules on what counts as “home use” and introduced new levies that will directly affect the cost of bringing goods into the country. With the External Trade Amendment Act taking effect on 1st July 2025, importers will now pay more to clear their goods, while government hopes to raise revenue and protect local industries.
The term home use refers to goods that are imported into Uganda’s customs territory for free circulation, that is, goods that will remain and be consumed, used, or sold within the country. Importantly, home use does not include goods intended for re-export or goods that are merely in transit through Uganda. This distinction matters because URA applies different tax and duty rules to goods depending on their final destination.
The amendment introduces two fresh charges on imports declared for home use: Import Declaration Fee (IDF): Importers will now pay 1% of the customs value of goods at entry. Infrastructure Levy: A further 1.5% levy will be charged on the same customs value. Together, these amount to 2.5% of the total customs value, payable upfront by the importer. For instance, goods worth USD 100,000 will now attract USD 2,500 in additional fees before clearance.
The Uganda Revenue Authority (URA) has justified the amendment to the External Trade (Amendment) Act on three key grounds: first, to provide clarity by eliminating ambiguity regarding what qualifies as home use and ensuring consistent treatment of goods at customs; second, to promote local industry by making imports relatively more expensive, thereby encouraging Ugandans to purchase and utilize domestically produced goods; and third, to enhance revenue mobilization, as the revised import declaration fee and infrastructure levy are intended to increase tax collection and support national development objectives.
For importers, this amendment means higher upfront costs when clearing goods through customs. Businesses relying heavily on imports, whether raw materials, finished products, or consumables, will need to factor in these new charges when pricing their goods.
On the other hand, local industries may find themselves more competitive if consumers shift toward homegrown alternatives due to rising import costs. For URA and government, this represents an important tool for balancing trade, supporting industrialization, and raising revenue without introducing entirely new taxes.
The External Trade Amendment on home use represents more than just an additional compliance cost; it signals a policy shift in Uganda’s trade and revenue strategy. By clearly distinguishing goods for domestic circulation from those in transit or for re-export, URA has aligned its framework with global customs standards under the WTO and WCO guidelines.
The introduction of the Import Declaration Fee and Infrastructure Levy, though modest in percentage terms creates a predictable and broad-based mechanism for revenue mobilization while simultaneously incentivizing import substitution and industrial growth.
For businesses, the adjustment underscores the need for robust import planning, accurate customs valuation, and proactive supply chain cost management to remain competitive. Going forward, how well the government balances these levies with measures that support efficiency in clearance, logistics, and infrastructure will determine whether the policy achieves its intended dual objectives of domestic industry protection and sustainable fiscal expansion.
The writer is a Chartered Accountant, Analyst and Tax Advisor
