Local importers given 3 months to adopt marine cargo insurance policy

Uganda Revenue Authority (URA) and the Insurance Regulatory Authority (IRA) have given traders a grace period of three months to get marine cargo insurance policies from locally licensed insurance companies.

Latimer Mukasa at Local Marine Cargo press conference

The new local marine cargo insurance policy took effect on July 1, 2022 and will also cover loss, damage and theft of cargo in transit by air, rail and road.

The Assistant Commissioner Public and Corporate Affairs at URA, Ibrahim Bbossa, urged traders to co-operate with authorities to obtain the insurance policies before applying for custom clearance, while importers with insurance from off-shore companies will be handled separately.

The implementation of this directive will be done in a phased manner with a three-month grace period during which there will be no penalties. Importers with marine insurance coverage from off-shore companies will be facilitated while those with no form of insurance are compelled to purchase the local insurance during this transitory period,” he said.

This implementation follows the order URA received from the Minister of Finance in July 31, 2019, requiring the organisation to provide the local marine cargo/goods in transit insurance certificate through the Uganda Electronic Single Window.

According to Bbossa, this insurance will not only benefit traders but also boost the local insurance industry.

The Uganda Insurers Association (UIA) has developed a portal to help all traders acquire the marine cargo insurance.

It is important to note that this platform is aimed at meeting the needs of importers that have been having challenges with acquiring insurance by now, using technology to get closer to them,” said Latimer Mukasa, Chairman of UIA.

Under the Kampala City Traders Association (KACITA), traders have applauded the move.

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