Dear @SpireJim, thank you for relaying your concern to URA. At Entebbe Customs the issue of taxation of gifts or items for personal use like iPhones & other gadgets mainly from the Middle East is a daily challenge.
Now to answer this inquiry we'll paint you a full picture.🧵
Now to answer this inquiry we'll paint you a full picture.🧵
IPhone 14 promax comes in different versions i.e. 128 GB, 256 GB and 516 GB. The cost for each is different. The minimum value of an IPhone 14 promax is averagely over USD 1000$./1
#Customs101
Courtesy📸
#Customs101
Courtesy📸
Under section 114 of the East Africa Community Customs Management Act, 5th schedule item 5 sub item 9, the law stipulates that any traveller who has been out of Uganda for more than 24hrs is entitled to return to the country with any new goods whose value doesn't exceed USD500./2
The additional condition is that such goods must not be for commercial use or for disposal to other persons who did not travel. Now if the phone is for giving out as a gift and not for personal use of the traveller it automatically becomes taxable./3
#Customs101
#Customs101
Like earlier stated the cheapest iphone 14 promax is not less than USD1000, this you can verify with the market value. It implies that the threshold of USD500$ has already been exceeded and so the phone becomes taxable even if it is for personal use. /4
#Customs101
Courtesy 📸
#Customs101
Courtesy 📸
The reason for this is simple. Qatar is most often a transit point which implies that such electronics as phones don't pay taxes in such jurisdictions. So the items will surely appear cheap and appealing. /5
#Customs101
Courtesy 📸
#Customs101
Courtesy 📸
Taxes however are supposed to be paid in the country where the item will be consumed finally based on the tax laws of the destination country. /6
#Customs101
#Customs101
So we impose taxes on such goods to protect the tax payers who have paid taxes for such goods in the country. Daily, Entebbe Airport receives about 2000 travellers and data shows that 70% of travellers from the Middle East will return with expensive phones./7
#Customs101
#Customs101
If Customs doesn't tax these items the traders will convert to shipping merchandise in the name of personal use or gifts at the expense of the legitimate traders. /8
Response from the Ag. Manager URA Entebbe Customs.
👇For more details: ura.go.ug
Response from the Ag. Manager URA Entebbe Customs.
👇For more details: ura.go.ug
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