Business Corruption

The Ugandan government has made some progress towards liberalising trade, but customs implementation remains inefficient and non-transparent. According to World Economic Forum Global Enabling Trade Report 2010, business executives identify the transparency of border administration in relation to irregular payments in exports and imports as constituting a competitive disadvantage. This is also supported in the US Commercial Guide 2010, in which some businessmen report that custom duties can sometimes be avoided, in particular in situations where a bribe is offered to Uganda Revenue Authority officers on site. Furthermore, companies should note that customs and excise laws are not always enforced uniformly and without discrimination, as reported in Global Integrity 2009. 

According to the US Department of State 2010, bootlegging of electronic devices is common and US manufacturers of consumer goods have been victimised by counterfeit products smuggled into the Ugandan market from abroad. Foreign investors seeking law enforcement should expect to engage proactively with Ugandan officials to enforce the law, as enforcement remains haphazard. Criminal proceedings against the recipients of some shipments of illegal goods have been initiated.

Political Corruption

According to Global Integrity 2007 timber and other resources are smuggled into Uganda from the Democratic Republic of Congo by armed officers and re-exported with the tacit consent of the Ugandan government.

Frequency

The World Bank & IFC: Doing Business 2011:
- A standard export shipment of goods requires 6 documents and takes an average of 37 days at a cost of USD 2,780 per container.

- A standard import shipment of goods requires 8 documents and takes an average of 34 days at a cost of USD 2,940 per container.

World Economic Forum: The Global Enabling Trade Report 2010:
- Business executives give the efficiency of customs administration (burden of customs procedures) in Uganda a score of 3.4 on a 7-point scale (1 'extremely inefficient' and 7 'extremely efficient').

- Business executives give the transparency of border administration (irregular payments in exports and imports) a score of 2.6 on a 7-point scale (1 'not transparent' and 7 'transparent').

Transparency International: Global Corruption Barometer 2010:
- Nearly 43% of households who had contact with the customs administration throughout 2009 report to have paid a bribe.