Kargo Search

26 May 2008

Lino's Report

COMESA REGIONAL CUSTOMS TRANSIT GUARANTEE SCHEME WORKSHOP HELD AT HOTEL EQUATORIAL ON 23RD AUGUST 2007

1. THE COMESA RCTG SCHEME

The Regional Customs Transit Guarantee(RCTG) Scheme is a system designed to facilitate efficient movement of goods in transit in the COMESA region under a system of secure seals and motor vehicles accompanied by standardized declaration documents (COMESA Customs Declaration and COMESA Carnet) and reliable regional guarantee mechanism that will protect the interests of all stake holders. The RCTG provides a uniform basis for transit movement through the region where only one guarantee is used for transit of goods through all transiting member states.

2. ORGANISATION:

The workshop was organised under the auspices of the Ministry of Tourism Trade and Industry, coordinated by Uganda Clearing Industry and Forwarding Agents Association and sponsored by UPTOP.

Mr. Icila Lino Criel and Mr. Tabule Jad Johnsons who are members of the national RCTG Management Committee together with Mr. Omar Kassim, the National Chairman UCIFA, coordinated the organisation of the workshop.

3. ATTENDANCE:

The workshop was attended by both members of Uganda Clearing Industry and Forwarding Agents Association (UCIFA) and Uganda Freight Forwarders Association. (UFFA).

 UCIFA was represented by thirty nine companies
 UFFA was represented by six companies.

4. AIM:

• To sensitize the clearing and forwarding fraternity about the basic requirements for the operation of the scheme.

• To obtain reactions to and appreciation of the operation of the scheme

• To draw up recommendations to the operation of the scheme.

5. OUTCOME:

 The clearing and forwarding agents were identified as major key players in the operations of the RCTG Scheme.

 The agents after presentations from the various resource persons internalized, discussed and raised particular issue relevant to the operation of the scheme to be forwarded to the National RCTG Management Committee for due consideration.

 The secretariat of UPTOP to compile these issues and recommendations and forward the report to the management committee that would look into it prior to forwarding it to the COMESA RCTG scheme National Management Committee for the necessary action.

 UCIFA will coordinate other workshops under the sponsor ship of UPTOP to be held at Malaba, Busia, Entebbe and Katuma.



ICILA LINO CRIEL
CO-ORDINATOR COMESA RCTG SCHEME (UCIFA)

Minutes of UCIFA Board Meeting With KACITA on the 23rd July 2007



(UCIFA MEMBERS PRESENT)

Kassim Omar Chairman -UCIFA
Ayebare Lawrence Vice chairman
Jad Tabule Johnsons General Secretary
Jaffer Fajallah Treasure
Nabitalo Zam Deputy General Secretary
Kisumbi Madinah Deputy Treasure
Sekito Isa Chairman- KACITA
Ahmed Ismail Sebbi Selusa KACITA
Shadadi Kintu Member
Lino Icila Criel Member


AGENDA

1. Prayer
2. communication from the chairman- UCIFA
3. Communication from Chairman of KACITA
4. Harmonised Tariffs.(Agency fee)
5. Reactions
6. A.O.B

MIN 01/07/07

The prayer was led by Shadadi Kintu.

MIN 02/07/07 COMMUNICATION FROM UCIFA CHAIRMAN

The chair welcomed the chairman of KACITA. He said that important developments have transpired over the last two years regarding welfare of the clearing industry which is in line with Customs modernization.

There has been a perception that the clearing Agents i.e. dump goods, misappropriate funds and tender in false invoices and customs divorces itself from such actions or that responsibility. This is due to the existence of ‘‘brief case’’clearing agents who try to lobby for business from fellow Clearing Agents.
These are middle men who operate without clearing companies or addresses, want to earn quick money and cannot be traced hence a need to eliminate them.
There are no standard rates for clearing which reflect double standards unfortunately Rwanda, Tanzania and Burundi have standard rates. Most clearing agents can not sustain modern services in the clearing industry because their earnings are below the benchmarks.

Furthermore Customs will audit a company depending on the number of branches a clearing firm has because they want to use them to generate income. That’s why UCIFA presented to them nominal values or figures to use for taxation because they are user friendly not only to clearing agents but also to the importer.
The reasons the chairman of KACITA had been presented with the values is that they want their opinion and look for a way forward.

KICITA and UCIFA should strengthen their co-operation such that when there are problems to be solved, can be solved and can have a better say because the interests of their clients are being affected.

UCIFA and KACITA should sign a memorandum of understanding in order to address some issues jointly which have been exclusively handled. The board which was elected on the 16th of December 2007 is willing to foster and enhance common interests to polish the industry and opinions form KACITA because it takes two to tangle.

MIN 03/07/07 Communication from KACITA chairman

He apologized for being unable to attend meetings between UCIFA and KACITA.
He said that he has compensated millions of money due to unscrupulous clearing Agents, i.e. Alaska Entity which defrauded one of the importers. He further said that he has a company for consultants which assists the importers to locate credible clearing agents. He recommends people for clearing but on several occasions he has been disappointed by those clearing agents. KACITA therefore has a negative feeling towards clearing agents. They are “fishermen’’. The Association was almost putting an article in the newspapers discrediting clearing agents. Clearing agents are professionals and not traders who charge any amount because their business is not based on mutual understanding.
KACITA needs to be convinced that there are good clearing agents because it’s the importers who suffer at the end of the day. They tamper with papers without consulting the importers. Most of them have identity cards and pick papers from the importers through false pretence. The clearing agents charge less than the minimum tariffs but at the end of the day, the importers pay more when everything is messed up.

MIN 04/07/07 REACTIONS

In reply the chair said that it is during such meetings that such views are communicated. He further said that a MOU will be an expression of our own issues as Board because it is time to fight evil.

On the issue of Alaska, there is a need for cooperation to penalize the culprits. The Association has a constitution, code of conduct, strategic plan and different committees that address different issues or areas that affect the welfare of the industry.
The director of Alaska died and there was a battle between the family and the directors. They paid their annual subscription for one year and later on stopped paying. In order for KACITA to recommend any clearing agent it should consult associations to which the clearing agents subscribe.

The Customs department has people who share patronage with the brief case clearing Agents. There should be a common understanding between Associations and URA to eliminate all unscrupulous actors/players in the system since URA also seeks for assistance from UCIFA for example if URA had accepted the idea of centralized identity cards the issue of brief case agents would be history.

In response the chairman of KACITA wanted to know how UCIFA had arrived at the minimum tariffs and whether they had received any response from URA.

In reply the chair said that URA had responded but in a tricky way because they wanted a list of all those companies which had approved the said tariffs.
This implied that those which are not subscribing to the tariffs and are not members of UCIFA would not be taxed according to this.
However the rates are close to what has always been charged except for motor vehicles. There are people charging less than 100,000/= however there are other costs involved which include preparing an entry at not less than 50,000/=, cost of running up and down i.e. 450,000/= which will have been paid before

The KACITA chairman asked how the minimum tariffs would be permanently enforced because traders feel actions and not rates.

UCIFA has the mandate to call UFFA and harmonize the rates. UFFA has high profiles because they gain from shippers. They are not accountable for risks of clearing agents. When you want to gain more, you take risks.

General Secretary said that UFFA members are mainly ICDS and Shipping lines. They charge invisible costs

KACITA chairman said UCIFA should look forward to closer cooperation with KACITA including drafting a Memorandum of understanding and should also have a collective meeting with KACITA members to remove the any worries and suspicion.

The Vice chairman UCIFA asked how the imposters would be wiped out.
In reply the chair responded that association has to continue disciplining members, consolidate the relationship between UCIFA and KACITA, Know who is who, open up offices to our members, allow Individual membership and allow members to attend meetings.

Shadadi said that the problem is with the importers who prefer using “brief case clearing agents.” He went ahead to inquire whether the employee of Alaska should be taken to court.

In response, the chair said that taking a person to court is standard.

Meeting adjourned…

Urgent Meeting Held on 20th September 2007

(MEMBERS PRESENT)
KASSIM OMAR CHAIRMAN
AYEBARE LAWRENCE VICE CHAIRMAN
NABITALO ZAM DEPUTY GENERAL SECRETARY
TABULE JAD JOHNSONS GENERAL SECRETARY
FESTO OKECHA MENBER
ICILA LINO CRIEL MEMBER
HANNINGTON KATARIKAWE MEMBER


AGENDA

1. SUSPENSION
2. CORRECTIONS OF THE MINUTES OF THE MEETING HELD BETWEEN
COMMISSIONER, UFFA & UCIFA.



MIN OI/ 09/07 SUSPENSION OF COMPANIES BECAUSE OF OUTSTANDINGS

Causes

Customs always over looks clearing firms.

Solution

1. Use of courts of law to justify / solve such problems.
2. Be strict about monitoring the movement of goods on our bonds right from Malaba.
3. There is need to call all companies with this problem of outstanding and scrutinize the causes of the problems after which we get a solution and advice our members.


Things noted

a) Suspensions without warning.

b) There has been negligence with both customs and clearing agents.





MIN 02/09/07 CORRECTIONS

According to the minutes submitted to our head office, there were some discrepancies that we would like to correct.

I. The name of one of our members is not Icula Lino Criel but Icila Lino Criel.
II. Mr. Charles Kareba is not a member of UCIFA but UFFA.
III. There was no concurrence by the Associations on the ban of licensing new companies however it was agreed that the matter be left to the commissioner to handle case by case as applications come in.
IV. It was also agreed that a follow up be made to this affect and an appropriate response be communicated.
V. It was also agreed that the issue of outstanding should not be condition for licensing.
VI. It was agreed further that there was no need to submit Audited financial statements since the licensing committee can always liaise internally with the Domestic tax department.
VII. Finally it was agreed that a tenancy agreement or evidence of ownership for office accommodation is not necessary as long as the company did not change location.

Minimum Tariff Charges (AMENDED) + VAT (Compiled by Dorcas)

1. BORDER INTERVENTION FEES
a) Containerized Cargo 93,000 Ush
b) Motor Vehicles (units) 50,000Ush


2. IMPORTS:
a) Motor Vehicles (units)
i. Used motor vehicle 150,000 Ush
ii. New Motor Vehicle 350,000Ush or 1.5% CIF
NB. Entries with continuations exceeding 3pages 5000 Ush per additional
Continuation.
b) Containerized/ Open Trucks/ Tankers
1× 20 300,000Ush or 1.5% CIF
1× 40 400,000Ush or 1.5% CIF


c) Loose Cargo at entry points like Entebbe 100,000Ush or 1.5% CIF
d) Motorcycles
i. Imported singularly 100,000Ush
ii. Registration per unit 25,000Ush
3. EXPORT:
a) Nil entries 200,000Ush or 1.8% BIF
b) Guaranteed (Bonded) 300,000Ush or 1.8% BIF
c) Re-exports both units and other car 200,000Ush or 1.8 %BIF
(Whichever is higher)


4. TRANSIT:
a) High Risk cargo like cigarettes, fuel,
sugar and others 500,000Ush or1.8% of BIF
(Whichever is higher)

b) Ordinary Risk Cargo 300,000Ush or 1.8% of BIF
(Whichever is higher)



5. WARE HOUSING
Bonded warehousing (IM7) 200,000Ush or 1.8 % of BIF
(Whichever is higher)

Warehousing (normal IM4) 200,000Ush
Supplementary entries for Ex-warehousin 50,000Ush per entry



NOTE: ENFORCEMENT MECHANISM TO THE HARMONISED AGENTS TARRIFF.


All member companies shall adhere to the code of conduct of the Association and the set tariffs.

1. A company shall not charge below the set tariffs.
2. A company believed or reasonably suspected of undercharging shall be referred to the disciplinary committee of the Association for investigations.
3. The Association shall suspend membership of the company found charging below the set tariffs.
4. The Association shall make recommendations for:
(a) a special audit by Customs of a company reasonably suspected of charging contrary to the set tariffs.
(b) suspension of its license by URA
(c) total expulsion from the industry through commissioner customs any company which fails to conform to the prescribed tariffs.
5. The cooperate tax and VAT shall be collected in accordance to the minimum tariffs agreed upon by the General Assembly.
6. The company shall be expected to ensure that these tariffs are applied at all their operation stations.

UCIFA Working Committees

TECHINICAL COMMITTEE:

1. AYEBARE LAWERENCE
2. MZEE DOKORIA NICHOLAS
3. FRANK MURAMURA
4. LINO CRIEL
5. OKECHA FESTO

DISCIPLINARY AND INVESTIGATIONS
1. SHADADI KINTU
2. OKECHA FESTO
3. JAFFER FARJALLAH

FINANCE COMMITTEE
1. JAFFER FARJALLAH
2. OKECHA FESTO
3. FRANK MURAMURA
4. MADINAH KISUMBI

WELFARE COMMITTEE
1. HANNINGTON KATARIKAKAWE
2. OKECHA FESTO
3. FRANK MURAMURA
4. MADINAH KISUMBI

LOBBY AND ADVOCACY COMMITTEE
1. KASSIM OMAR
2. JAD TABULE JOHNSONS
3. FRANK MURAMURA

UCIFA Board meeting on 23rd June 2007

Members Present

Ayebare Lawrence Vice chairman
Jad Tabule Johnsons General Secretary
Jaffer Fajallah Treasure
Kisumbi Madinah Deputy Treasure
Icila Lino Criel Member
Okecha Festo Member
Shadadi Kintu Member
Katarikawe Hannington Member
Muramura Frank. Member


Members absent with Apology

1. Omar Kassim
2. Nabitalo Zam.

Agenda.

1. Prayer
2. Communication from the chairman
3. Reorganization of the Board
4. A.O.B

MIN 01/06/07.

The opening prayer was led by Okecha Festo.

MIN 02/06/07

The chair welcomed all the members for the meeting. He said that a number of issues had taken place which included UCIFA day organized by the Entebbe branch. UCIFA won URA in football match. However, the Entebbe branch was not happy with the main branch’s attendance. He said that next time the board members should fully participate.

He said that the board should equally feel concerned about the issue of suspensions. There is a need to call an emergency meeting with the commissioner customs to sort out that issue.

He noted that the main issue of convening this meeting was to discuss performance of board members in respect of expectations of the Board.

MIN 03/06/07

The General Secretary requested the board to ignore the issue of suspensions which should be handled by the technical committee He proposed that each member be given two minutes to give an over view of what UCIFA is said to be and what it should be.

Hannington said that the main issue of discussion was reorganization of the board and that it should take a step to see if it can go an extra mile.
However he was put to task by the chair (Ayebare) to present a document which would act as guild line for the overview of UCIFA.

Hannington’s Overview

Hannington noted that UCIFA has offices and committees but do not function properly. Members are not aware of what UCIFA is doing. He noted that the chairman should delegate some of his duties because he is very busy to execute them.

The vice chairman is not empowered to carry out those duties in the absence of the chairman thus rendering the administration backward. Other members should also be co-opted to perform those duties were need arises most especially in terms of emergencies. He further said that the Members should forget their personal issues because they break up the Association.

The General Secretary’s office is the fulcrum of the Association thus information basket to both the board members and members. However the board receives the information late. It should at least be conveyed a week in advance e.g. two weeks ago he received a call from the chairman about the T.O.T meeting just hours to the meeting.
He recommended that the General Secretary’s office should be efficient and coordinate all the activities in time. However the Deputy General Secretary has been inactive.

He further noticed that the Branch offices are more active than the main branch. There was a need to link up with the chairmen of branch committees immediately after assuming their posts failure of which has caused them to assume false autonomy e.g. issuing of identity cards by the Malaba branch without the involvement of the main branch. There is a need to show them direction because problems which affect them affect the main board too.

He said that the finance department is the blood line of the Association. He was meant to understand that books of accounts had been audited which the board was supposed to look at and approve. This was not done. The finance committee should have drawn a budget which should haven been followed to know the Association’s inflows and out flows. He suggested that all balances of annual subscription be collected and encourage members to pay annual subscription fee of 2007.



REACTION TO THE ABOVE.


The board unanimously agreed that there should be door to door collection of annual subscription fee plus balances of the previous year starting with the board members. The board members had to pay by the 30th of June and the finance department was to come up with a budget for the board to know its expenditures.

The Vice chairman asked Hannington whether it should be the entire board to collect annual subscription.
In reply, Hannington said that when the vice chairman was a treasurer, he personally came to his office. So the finance department should perform its duties.

Lino said that committees are not operating. His committee had had a meeting once ever since it was appointed. Measures should be put in place to reactivate the committees by co-opting some of the members to the committees. The chairmen to these committees should always call meetings.

In reply to the above, the General Secretary said that members should be co-opted but a board member should always be the chairman of the committee.
Hannington agreed that they should reorganize the committees, a
board member should chair the committee and co-opt members on the committee.

In reaction to the above, Frank said that the timing is not appropriate though it’s a good idea. There is a need to first sort ourselves out financially because these members would need allowances for meetings attended. It would not be good to wash our dirty linen in public.

Okecha said that there is lack of coordination. Members are not updated on the Association’s activities. If we do not meet the members they will not know how we spend their subscriptions.

He further said that the general secretary should always issue instructions to his staff.

On the issue of identity cards, it should be only the main branch to issue them and when the Malaba branch committee is issuing to its members, they should charge them 3000/= as registration fee.

In reply, the General Secretary said that members were skeptical about the Malaba branch committee. They wanted to succeed and become autonomous. In the previous meeting it was agreed that the Malaba committee should not issue identity cards. He further noted that it would be very hard to control the issue of those identity cards if the Malaba branch is allowed to issue Identity cards.

In addition to Okecha’s idea, the vice chairman said that the board might create a lot of friction because this was a resolution passed by all their members that Shs 18,000/=should be paid for identity cards. The printing point should also be centralized.

Lino said that the board should write to all boarder stations requiring them not to issue identity cards.

In response to the above, the treasurer said that those people have already collected money. We should go ahead and find out whether they have printed the identity cards. He suggested that the board reorganizes itself, find some money and call a quarterly general meeting to update the members about what has been achieved and that the Malaba branch should charge at least 3000/=as registration fee.

It was agreed that Malaba branch committee should be stopped from issuing identity cards and the money which had been collected be retained as welfare.


Lino said that communication between the chairman and his vice should be improved. . The administrative area should be handled by the vice chairman. He further said that the board should leave by principles. Chairman should not always change what the board has resolved. He should respect the board members. He also acts emotionally most especially when he has been out of the country. Actions are taken in good faith and when he comes back he rubbishes them.

The Board resolved that since the chairman is very busy, the vice chairman should be empowered to carry out certain duties whether in the presence of chairman or not. However he should always inform him about what is about to be done and what has been done.


At what point should the chairman be briefed? Send him a message or email but should always report his coming back to the General Secretary.

The General Secretary apologized for mistakes made, that he is over burdened. Some times the situation cannot allow him to expend his duties diligently.

He defended himself by saying that on several occasions the secretariat has not been receiving information directly because the headed paper has private phone numbers, Box number and email address which mislead the public.

It was agreed that the next print of any stationary should be purely UCIFA. No private phone numbers and email address reason being that if someone resigned or died, there would be no access to private information and the Association wouldn’t be able to move on with its activities.
There should also be means of accessing the email every week.

He asked the board to give him another deputy who is vibrant.
Okecha said that the deputy secretary should be given a chance to defend herself.

The treasurer felt that she should be given notice of the Board’s intended action.

Hannington said that she should be given an opportunity to be heard. It should be the chairman’s office to write to her. If she does not take up the challenge then the board should find another person.

It was agreed that the chairman’s office writes a letter to Zam.

On the issue of the Books of accounts, the treasurer said that he was given re audited accounts of 15million shillings but at a time of his appointment it was 25 million shillings. He asked for receipts of expenditure and they were not availed to him because there was no specific office. He paid his own Auditor to audit the accounts because he could not find the Association Auditor.

Franck asked why refunding the people who contributed towards the running of the secretariat was secretly done.

The treasurer who had asked the same question some time back was told that he was not qualified to ask that question.

MIN 04/06/07

On the issue of Jupitor Forwarders, Panok International, the board said that it was a private arrangement between Panok International and Crested Crane Tours and Travel. However, as a matter of disciplinary action, the two parties should be called for mediation by the finance committee.

That Dorcas Kitonsa is still recognized as the Public Relations Officer and has to be given appointment letter with terms of reference.


Meeting adjourned

06 May 2008

Rendezvous with …Omar Kassim



Q: How would you introduce Omar Kassim to a stranger?
A: An open minded, open natured person with a charisma more humane than expected. But above all, a man with an iron will and strong determination in whatever he pursues, brilliant and compassionate but volatile to extreme proportions.

Q: What is the role of UCIFA?
A: It is a national body that brings together clearing and forwarding agents in this country and sets guideline for its members in terms of operational matters and other relevant aspects such as tariffs and customer relations. UCIFA also in principle is a lobby organization that manages the affairs of its members with respect to government policies and other stakeholders, especially URA.

Q: Evaluate the relationship between UCIFA and URA, KACITA plus other bodies?
A: UCIFA and URA have a strong partnership and share common objectives hence a wider platform for dialogue. KACITA and other shareholders have representative interests which are normally channeled in partnership with UCIFA’s core interests.

Q: What is the future of the association and what benefits do the members have?
A: The future of the association is very bright and the fact that the regional integration is impacting on the welfare of the business community in East Africa; the scope of the association will certainly be seen in light of that process. Members’ interests drawn across the board will be fronted by the association accordingly.

Q: There is a drive to form an East African Federation but can that be possible since another body UFFA (Uganda Freight Forwarders Association) was formed out of UCIFA?
A: The federation is a welcome move aimed at ironing out differences that might have given root to the splitter association UFFA. After all, the federation will be the umbrella body whose leadership composition may be all encompassing. I believe that is the first step towards a re-unification.

Q: What caused the break away and what differences do both associations have?
A: Both associations exist by their own terms of references and separate constitutions. I have not had the chance to read their constitution. The freedom to associate is a cardinal point behind the splitter but I wouldn’t know the specific reasons.

Q: Is there a way forward to have one association?
A: I know that where there is a will, there is always a way. Personally, I believe that both associations have common objectives and that would be the best way forward. But the idea of a federation would not be a bad idea either.
Q: What was the history of UCIFA before you took over?
A: UCIFA was the Most Vibrant Association in the history of the East African Region. When Gideon Karioko, the former Chairman died, the association went into a limbo until I was elected into office. Today, two years down the line, the association is almost back to its former glory.

Q: Have you organized special plans for the organization?
A: Indeed yes! The A.G.M. was held in December 2006 [at Blue Mango in Bukoto] and a lot of programmes and projects are set to be presented to the members for ratification.

Q: Looking at East Africa’s cargo forwarding industry, which transportation companies would you consider to be the Most Serious plus Efficient and how would you rank them?
A: Most transport companies in East Africa have a track record of experiences, mostly from Mombasa and Dar es Salaam to be under subcontracts with shipping lines and therefore do not have same ratings like P.N.Mashru, Multiple Hauliers, and M.A.Bayusuf.

Q: If I want to register a new company, how do I go about it?
A: The association has all the information and the data necessary for you to set up a new company and recommends you for licensing. However, licensing is done only once a year and is given by URA (at the end of the year).



Omar Kassim is also the Chairman of the Kawempe Division of Uganda National Chamber of Commerce and Industry. The UCIFA Secretariat is now located at the MTAC Building, Top Floor (Room B1 only, B2 was relinquished), Nakawa Industrial Area near URA’s Customs Business Centre, Kampala, Uganda (East Africa) since January 2007. Omar still sits in the Dewinton Road Office though opposite the Chogm Cultural Village and National Theatre’s Crafts Village…This interview was carried out in 2006