The Rwanda Revenue Authority (RRA) recently introduced comprehensive guidelines to foster better collaboration among customs operation stakeholders, aiming to address persistent challenges like counterfeit documents affecting revenue collection.
The new guidelines emphasize the necessity for transporters handling goods bound for bonded warehouses to acquire a license from the Commissioner for Customs, as stipulated in the Customs Management Act 2004 art.244.
It’s crucial that accompanying documents, such as invoices and arrival notices, provide accurate and detailed descriptions of goods to prevent misunderstandings about their nature, quality, and origin.
RRA Commissioner General Bizimana Ruganintwali Pascal stated, “There were some critical issues that we want to address because they impact revenue collection but also seriously impact fair competition in the domestic market and pricing dynamics.”
These directives emerged from meetings involving Ruganintwali, importers, transporters, bonded warehouse operators, and clearing agents.
They were prompted by RRA inspections uncovering malpractices like forged documents, fraud, and misleading goods descriptions aimed at undervaluing products and evading taxes.
Ruganintwali highlighted the impact of such malpractices on revenue, fair competition, and pricing dynamics.
He added, “On the other hand, those businesses cannot use EBM because the value of goods declared in customs is incorrect or they can’t find them in their EBM stock because they were released with incorrect declarations.”
According to the updated guidelines signed on January 3, 2024, the initial clearing agent at the entry point holds sole responsibility for clearing goods for all consignees until cargo release.
Additionally, transporters under Customs control must obtain a license as per Article 244 of the EAC Customs Management Act.
Moreover, the guidelines specify detailed document requirements, including receipts, arrival notices, and tax declarations, mandating clarity on item details, quantity, value, origin, and HS Codes.
Goods intended for home consumption must be stored separately from those designated for re-export in bonded warehouses.
The Rwanda Transporters Association (ATAR) expressed support for RRA’s licensing efforts, seeking increased collaboration to address industry issues. RRA plans to communicate detailed license requirements to stakeholders.
Industry stakeholders, like Bolloré Transport & Logistics Managing Director Nkubito Roger, praised the guidelines for promoting compliance and visibility in customs operations.
He emphasized optimism that if applied appropriately, customs activities will continue efficiently, ensuring proper tax payments.
The new guidelines aim to rectify operational practices enabling malpractices that negatively impact businesses, fostering optimism among stakeholders for positive changes.
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