NEW URA LICENSING RULES SPARK PANIC! Insiders warn billions threshold could lock out hundreds of agents

KAMPALA: A storm is brewing inside the Uganda Revenue Authority (URA) after a controversial proposal to overhaul licensing requirements for clearing and forwarding agents sparked fears of a massive industry shake-up that could push smaller players out of business.

According to an internal communication circulating among industry stakeholders, URA is reviewing new licensing conditions for 2027 that would dramatically increase the minimum customs value agents must clear in order to qualify for licenses.

The letter, signed by Assistant Commissioner Trade Henry B. Kwaligonza, asks industry associations to submit views on the proposed thresholds before March 16.

But insiders within the clearing and forwarding sector say the move could effectively lock out many small and medium-sized agents from the lucrative customs business.

BILLIONS OR YOU’RE OUT

Under the proposed framework, agents applying for a General Agency License would be required to prove they cleared imports worth at least UGX 10 billion in the previous year.

They must also demonstrate they handled transit cargo worth UGX 10 billion and exports valued at not less than UGX 1 billion.

Industry insiders say such thresholds are far beyond what many small clearing firms handle annually, raising fears that the rules are designed to squeeze them out.

“This is a death sentence for small agents,” one clearing agent fumed.

“Most firms don’t clear goods worth Shs10 billion a year. It means they will automatically be disqualified.”

INDUSTRY GROUPS ALERTED

URA addressed the request for input to several clearing industry bodies including the Uganda Clearing Industry & Forwarding Association, the Customs Agents Single Umbrella Organisation, the Federation of Uganda Customs Agents and Freight Forwarders, and the Uganda Freight Forwarders Associations Ltd.

But agents say the consultation may simply be a formality before the controversial rules are pushed through.

License update 2026

“BIG FIRMS WILL DOMINATE”

Critics warn that the new system could concentrate the customs clearing business in the hands of a few large firms, leaving hundreds of smaller agents stranded.

“If this passes, only a handful of big companies will remain in the market,” another insider warned.

“This will kill competition and destroy livelihoods.”

FEARS OF A HIDDEN AGENDA

Some players in the sector believe the changes could benefit well-connected clearing firms that already dominate large cargo volumes.

“There is suspicion this could be designed to favor certain big players,” said another agent.

“If you set the bar that high, you know exactly who qualifies.”

THOUSANDS OF JOBS AT STAKE

Uganda’s clearing and forwarding sector employs thousands of agents, transporters and logistics workers, many of whom depend on small firms operating at border points and inland clearance depots.

Industry observers warn that forcing smaller agents out of the market could trigger job losses and disrupt trade logistics.

PRESSURE ON URA

With the consultation deadline approaching, pressure is mounting on URA to reconsider the proposed thresholds.

Some industry players are now urging the tax body to introduce more flexible licensing tiers that allow both large and small agents to operate.

But behind the scenes, insiders say anxiety is spreading across the industry as agents fear the reforms could quietly redraw the entire customs clearing landscape.

For now, one thing is clear: if the proposals pass in their current form, the customs clearing business in Uganda may never look the same again.

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