Draft Fees gazette
THE WAREHOUSE RECEIPTS SYSTEM AUTHORITY
ANNOUNCEMENT OF REGULATORY FEES
Article 69 of the Warehouse Receipts System Act (2006) requires the Board of the Uganda
Commodity Exchange (“the Authority”), in consultation with the Minister of Tourism, Trade and
Industry, to publish fees it will charge for examining, licensing, inspecting and overseeing
warehouses licensed under the Act, the licensing of specialised staff employed in those
warehouses, and other functions conferred on it by the WRS Act and Regulations. The Authority
publishes as follows:
1. Fees payable in respect of examining, licensing, inspecting and overseeing
Two types of fee shall be paid with regard to the warehouses:
1.1 Application and renewal fees
A company seeking to be licensed as a warehouse keeper shall submit an application to the
Authority for each warehouse it seeks to operate. The application shall be submitted with an
initial license fee of Uganda Shillings 1,000,000. Renewal of licenses will be charged at Uganda
1.2 A volume-based levy
The successful applicant shall pay a further „volume-based levy‟ determined by the volume of
commodities stored, the duration of the storage and the value of the commodity being stored. In
setting the levy in this way, the Authority is seeking to make it both fair and affordable, according
to the following principles:
i. Warehouse keepers should pay on the basis of the volume of goods they handle;
ii. Levies should also take some account of the value of the commodity they handle, and;
iii. Levies should represent a very small percentage of the commodity value, less than
0.1% of the value of the commodity stored per month
The levy includes a base charge of Shs 0.35 (thirty five cents of a Shilling) per kg of commodity,
per month of storage – based on the average stock level during the month. The base charge is
applicable to any commodity which the warehouse keeper is storing and where the per kg value of
the commodity is at or is less than Shs 350 per kg. For commodities with a per kilogramme value
normally in excess of Shs 350 per kg, the levy is payable on the following basis:
Levy per kg = Shs 0.35 x (1 + (commodity price/kg - 350))
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Draft Fees gazette
That is, the levy will increase at a rate of 35 cents of a Shilling per Shs 1,000/kg of value above the base value of Shs 350 per kg
Example A: The commodity which has a market value of Shs 650 per kg will be liable to a
levy calculated at Shs 0.35 per kg per month plus Shs 0.35 x (650 – 350) = Shs 0.455 per kg
per month stored, rounded to Shs 0.46 per kg. 1,000
Example B: The commodity has a market value of Shs 2,000 per kg. By the same formula
the levy charged is Shs 0.35 plus 0.35 x (2,000-350) or Shs 0.93 per kg per month stored.
Many commodities, and particularly locally produced agricultural commodities, vary widely in value, so for ease of computation the Authority will publish standard commodity-specific levies on its website, www.uce.co.ug. These will be approximations based on historical and current
values of the commodities concerned. The Authority will review its standard levies at least every two years. Where no standard is set, the levy will be determined by the in-store value of the goods, assessed on the basis of the invoice and any additional costs up to the time it is deposited in the warehouse.
Licensed warehouses are required to pay levies on a quarterly basis. The minimum levy payable is Sh 100,000 per quarter regardless of the volume of goods stored.
The Authority does not plan to license warehouses handling petroleum products or minerals in the near future. When this happens, charges will be set in accordance with circumstances in those industries.
2. Fees payable for licensing of specialist staff employed at warehouses
The application for licensing of individuals to act as samplers, weighers and graders, or other specialist tasks for which the Authority requires a license, shall incur a fee of Shs 100,000 per person.
3. Fees payable to the Authority for carrying out other functions conferred on
it by the WRS Act and Regulations
Where the Authority is required to carry out inspection or site visits in addition to its routine inspections, either at the request of a warehouse keeper or in the event of non-compliance with the Act and Regulations, the Authority will charge for their services at daily rates from USh 150,000 to USh 500,000 depending on experience and seniority. The Authority will also charge for other costs involved, including transport, per diem and consumables.
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