Uganda has tightened controls on rice entering the country from Tanzania after authorities raised concerns that imported rice from Asia is being re-bagged and presented as an East African product to avoid import taxes.
Hon. Sanjay Tanna, Uganda’s Minister of Trade, Industry and Cooperatives said the government had discussed the matter with the Uganda Revenue Authority (URA), which confirmed concerns over rice entering through Tanzania under questionable declarations.
“We held a meeting with URA and URA said, yes, there is a problem that is coming from Tanzania,” Tanna said. “These people are smuggling foreign rice, re-bagging it in Tanzania and bringing it into Uganda to evade taxes.”
According to the minister, the alleged scheme involves a small group of individuals with connections in influential circles. He said the government intends to confront the practice as part of President Yoweri Museveni’s push against corruption and practices that undermine domestic production and public revenue.
“Remember, the president has mandated us no bribery, no corruption and no sleep. We are here to develop our country,” Tanna said.
The minister confirmed that trucks carrying rice had recently accumulated at the border but said the situation had since been addressed after he authorised a two-week moratorium.
The temporary window was intended to allow traders who had already purchased rice to move their consignments while authorities established stronger verification measures.
Uganda will now subject suspicious consignments to tests aimed at establishing the geographical origin of the rice.
Tanna said facilities at Namulonge and the National Agricultural Research Organisation (NARO) have technology capable of helping authorities determine whether rice originated in Tanzania or was imported from countries such as Pakistan and India.
“We are not going to allow the foreign rice to come and evade taxes when they are branding it as an East African product,” he said.
The crackdown could have wider implications for regional rice trade because products genuinely originating within the East African Community can benefit from preferential tariff treatment.
Rice imported from outside the region, however, is subject to different customs requirements.
Ugandan authorities are therefore seeking to distinguish legitimate Tanzanian-grown rice from foreign imports allegedly routed through Tanzania to take advantage of regional trade arrangements.
Tanna said the measures are not intended to stop legitimate regional commerce, but to close a suspected tax-evasion route and protect traders and producers operating within the rules.
