Ex Works: The seller is required to make goods ready for pickup at his or her own place of business. Transportation costs and risks are assumed by the buyer. [Least risk to exporter, greatest risk to Ugandan importer]

Free on Board: The seller agrees to absorb the costs of delivering the goods to the purchaser’s transporter of choice. The term FOB is a frequent feature of contracts for the sale of goods, especially when the goods are to be delivered to a foreign destination. [Low risk to exporter, high risk to Ugandan importer]

Cost, Insurance, and Freight: The seller arranges for the carriage of goods by sea to a port of destination, and provides the buyer with the documents necessary to obtain the goods from the carrier. [Moderate risk to exporter, moderate risk to Ugandan importer]

Import Costs
When calculating import costs, companies should consider the following:

• Purchase costs, as per bill of landing net sea/airfreight charges depending on incoterm basis.
• Insurance
• Logistics
  • shipping agent’s fee
  • port charges
  • clearing charges are $150 – $250 per container
  • forwarding charges
• Land transport. Despite the relatively short distance, land transportation costs from the Kenyan port of Mombasa to Kampala are substantial at $3,500 per dry container—often exceeding the price of shipping goods from the exporter port to Mombasa.
• Custom/Excise taxes
  • Most of the goods exported to Uganda are subject to customs/excise duty taxes. These taxes vary depending on the products. The range of customs taxes varies from zero to 60 percent
  • Value-Added Tax (VAT) is 18 percent
  • Withholding tax is 6 percent
  • Infrastructure Tax is 1.5 percent
  • Foreign Service Tax is 15 percent withholding tax and 18% VAT
• Miscellaneous fees
  • Some agricultural goods including beef and dairy are subject to additional fees.
  • Some high-value consumer goods not meant for resale including digital televisions are also subject to additional taxes.
  • For more information visit our website: www.sca-partners.com