URA Foils Cooking Oil Smuggling Operation: Insights into Tax Evasion Tactics and RECTS’s Role in Transit Goods Monitoring

The Uganda Revenue Authority (URA) intercepted over 1,000 jerrycans of cooking oil initially declared for the Democratic Republic of Congo but diverted to Nalukolngo, Rubaga Division in Kampala. The jerrycans were discovered on a truck with registration number UBE591X/UAR571C, which purportedly stopped at Nalukolongo under the guise of parking, as per URA’s investigation. This incident shed light on various smuggling tactics used to evade taxes, including under-declaration, round-tripping, misclassification, and dumping.

Dumping, particularly, involves swiftly selling goods within the country of transit without waiting to reach the intended destination, as was allegedly the case in Nalukolngo. The URA’s Central Monitoring Center (CMC) tracking team was alerted about tampered seals, prompting the rapid response unit to locate the truck. Upon inspection, both electronic and metallic seals were found broken, with some goods offloaded.

The driver and accomplices fled, leaving behind the truck and empty jerrycans. The truck was towed to URA headquarters in Nakawa for thorough verification, revealing four empty jerrycans, nine half-emptied ones, and over 1,000 with broken seals awaiting further inspection.

The Regional Electronic Cargo Tracking System (RECTS) facilitates tracking of transit goods across Kenya, Uganda, Rwanda, the Democratic Republic of Congo, and South Sudan, with Burundi soon to join. RECTS seals, equipped on goods released from ports, enable real-time visibility at CMC, allowing for prompt response to security alerts. Cooperative efforts among partner states ensure effective management of transit goods, enhancing accountability and reducing cargo transit time.