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(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…
