Gezetted charges for licensing warehouses - Uganda Commodity

By Jean Coleman,2014-06-27 10:28
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Gezetted charges for licensing warehouses - Uganda Commodity ...

Draft Fees gazette



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

    Shillings 600,000.

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))


GFA Philip 1 61553999.doc

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, 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.

GFA Philip 2 61553999.doc

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