As Uganda sees a growing number of customs agents entering the clearing and forwarding sector, the Uganda Revenue Authority (URA) has issued a strong warning against rising corruption and fraud.
URA Commissioner General John R. Musinguzi cautioned that while the growth in the industry supports trade facilitation, it also threatens revenue mobilization due to unethical practices among agents.
Rapid Growth of Customs Agents Sparks Concern
Speaking to over 650 clearing and forwarding agents at a stakeholder engagement held at Hotel Africana, Musinguzi emphasized that the increasing number of agents must be matched with accountability and integrity.
He warned that URA would not tolerate corrupt practices, regardless of the agent’s rank or influence.
“At URA, we don’t tolerate corruption, and we have lost a number of staff. But we know that there’s no corruption in customs that happens without agents being involved,” said Musinguzi.
Customs Agents Urged to Act as Watchdogs
The Commissioner General called on agents to take ownership of their sector by reporting and dismissing corrupt colleagues. “What have you done on your side, as most informers?” he asked.
Musinguzi called for the prosecution of agents who facilitate export fraud, misdeclaration, concealment, and submission of false documentation.
He reminded agents that they play a dual role: while URA supports trade facilitation, agents must ensure that declarations are truthful and that procedures are followed efficiently.
PRN Fraud a Major Threat to Revenue
Musinguzi revealed that a growing syndicate of agents is now involved in PRN (Payment Reference Number) fraud, where agents collect payments from clients but fail to remit them to URA.
Instead, they collude with insiders to manipulate the system and falsely indicate that payments were made.
He said such practices have severely undermined the mission of raising Uganda’s tax-to-GDP ratio, which has stagnated between 10% and 13% for over 30 years.
“Catch me if you can, if you don’t, I have escaped, that’s the mentality some agents have developed,” he added.
Licenses Revoked as Investigations Continue
According to Acting Commissioner of Customs, Hajji Asadu Kizito Kisitu, over 132 licenses have been issued so far in the current calendar year.
However, some were withheld due to suspected involvement in export fraud, PRN fraud, and unresolved balances, especially for goods from Tanzania.
Kisitu said several licenses were revoked following corruption-related investigations, and more may face the same fate pending ongoing inquiries.
Customs Agents Still Vital to Uganda’s Economy
Despite the crackdown, URA acknowledged the essential role of clearing agents in national development.
“Your work in supporting trade and revenue mobilization cannot be overstated. But that trust must be earned,” said Kisitu.
Musinguzi reiterated the importance of maintaining a clean and compliant sector that supports Uganda’s economic transformation and financial independence.
Agents Call for Licensing Reform
Charles Mwebembezi, President of the Federation of East African Freight Forwarders, called on URA to extend the license validity period from three years to five or even ten years. He argued that the current system wastes time and resources.
“Tanzania has already adopted 10-year licensing, and Rwanda has followed suit. I believe Uganda should do the same,” Mwebembezi stated. He noted that delays in license renewal disrupt operations and strain the agents’ efficiency.
A Call for Ethical Growth
The meeting concluded with a joint commitment from URA, the Ministry of Works and Transport, and the Uganda National Bureau of Standards to strengthen the integrity of the customs sector.
As Uganda’s trade volume continues to grow, so does the demand for customs agents.
However, URA’s message was firm: the industry must grow with honesty and professionalism or risk legal consequences and reputational damage.