How to start Agricultural Export Business in Uganda [2022]

How to start Agricultural Export Business in Uganda. There’s a large marketplace for fruits and different agricultural in exterior nations. Beginning a fruit exportation enterprise is so smart and so worthwhile if carried out in the proper approach.

Read: Agricultural Business Ideas in Uganda

The demand for agricultural merchandise from Uganda to exterior nations is excessive and the supply is low. There’s a rising demand for avocados, blueberries, mangoes and candy potatoes. 

How to start Agricultural Export Business in Uganda
Export Port

The agricultural export business in itself is a really broad idea and a lot of preparations is required by an exporter earlier than beginning an export enterprise.  To start the agricultural export business in Uganda, you need to follow these steps:      

1) Register Your Business

Business registration is a requirement for any business entity operating in Uganda. The process starts with the reservation of a business name. The additional documents required will depend on the nature of registration required – business name registration, registration of the local or foreign company.

Read: How to Start a Business in Uganda

These documents include the company registration form and Memorandum and Articles of Association. Visit Uganda Registration Services Bureau or log onto www.ursb.go.ug for details. After registration you will be issued with a Certificate of Registration of Business Name (business name), Certificate of Incorporation (local company) or Certificate of Registration (foreign company).

Read: How To Register Your Business in Uganda and Get A TIN Number

Applicable fees, payable after assessment, include business name reservation fees, business registration fees and stamp duty.

2) Carry Out Research

You need to carry out market research to find out which countries you are going to export to. What products are you going to export and also when are you going to be exporting?

3) Get a Tax Identification Number (TIN)

Tax Identification Number (TIN No.) Tax registration is a STATUTORY requirement for all business entities operating in Uganda. Exports are tax exempt. But, tax registration is required to facilitate customs administration processes such as customs declaration and issuance of preferential certificates of origin issuance. Registration is done by Uganda Revenue Authority (URA), free-of-charge, through the URA portal (https://www.ura.go.ug) and thereafter a physical verification of the registering entity’s or person’s identification and/or registration documentation

4) Get The Required Export Licences and Permits

After getting your TIN and registering your business, you need permits i9n order to export products from Uganda. These permits can be got from within. Permits offered to include the following;

Fish Export Permit

This Permit is a mandatory requirement for the export of fish and fish products. Issued and renewed annually by the Directorate of Fisheries Resources – MAAIF. Application and renewal fees are UGX. 20,000 per annum. Please also note that the export of large fish species products (whether fresh, smoked or dried) attracts an export levy of US$ 0.5 per kg. payable at the time of export

Mineral Export Permit

This Permit is a mandatory requirement for the export of minerals, ores and precious stones. Mineral products are regulated majorly for security and conservation reason. The permit is issued on a consignment basis, by the Directorate of Geological Survey and
Mines, Ministry of Energy and Mineral Development (MEMD), upon verification of origin and authenticity of the mineral plus payment of applicable levies (as indicated below).

The exporter may be required to present a copy of the Exploration License, Mineral Dealers License or any other such license relating to the acquisition of the product. Products will be tested before the issuance of an assessment form for payment of due levies.
Product Applicable Export Levy Precious Stones 10% of FOB Value Industrial / Construction Materials UGX. 10,000 per ton for Granite, UGX. 30,000 per for all other materials Base Metals & Ores 5% of FOB Value
Timber Export Permit

This Permit is a mandatory requirement for the export of timber and timber products (in semi-processed form) harvested from planted forests. Export of timber harvested from natural forests is prohibited.

The permit is issued by the Forestry Sector Support Department (FSSD) of the Ministry of Water and Environment. Fees payable depend on the type of permit applied for.

Hides and Skins Exporters License

This licence is a mandatory requirement for the export of hides and skins. It is issued and renewed by the Animal Production Department of the Directorate of Animal Resources at a fee of UGX. 60,000 per annum.

Please also note that the export of raw hides and skins attracts a levy of US$ 0.8 per kilo, payable at the time of export

Coffee Export License

It is a requirement for the export of coffee. Coffee is regulated for quality control reasons. The license is issued and renewed annually (upon request) by the Quality and Regulatory Services Directorate, Uganda Coffee Development Authority (UCDA).

The applicant will be required to fill out an application form and provide copies of applicable identification and/or registration documents, such as Certification of Incorporation, Memorandum and Articles of Association and evidence of a certified processing factory.

Export license issuance and renewal fees are UGX. 1,500,000 per annum. A non-cash performance bond of US$25,000 will also be required.

Wildlife User Rights License

This is a mandatory requirement for the capture, breeding and export of wildlife and wildlife products. It is issued in classes, depending on the nature of wildlife and activities the applicant is interested in engaging in. Issued by the Uganda Wildlife Authority (UWA). Fees payable depend on the type of license required.

5)Get health, safety and quality-related Certification

The next step on how to start an agricultural export business in Uganda is getting Certifications. These are issued either concerning the processing facility and/or product. Accordingly, they are acquired periodically before export on a consignment basis.

Health Certificate

MANDATORY requirement, issued for facilities (factories) processing fish or animal products. It confirms that the processing systems and facility are in conformity and compliance with internationally acceptable sanitary and hygienic conditions, and hence products are safe for consumption.

Where the exporter is not the processor, a copy of the health certificate of the processor must accompany the consignment. Health Certificates are issued and renewed annually by the Directorate of Animal Resources (MAAIF) and Directorate of Fisheries Resources (MAAIF) for animal and fish products processing facilities, respectively.

Fees depend on the nature of the certification process to be undertaken.

Quality Assurance Certificate

Manufactured/processed products for export MUST conform to applicable national and international standards. The manufacturer/processor is therefore required to obtain the distinct quality mark (“Q” mark) or a quality assurance certification.

This is a process certification that must be undertaken before export. In absence of the above, the exporter can apply for product (batch) testing for issuance of a laboratory report to accompany the consignment.

Fees depend on the processes involved to obtain the certification, as prescribed by the applicable standard(s). Certification is done by the Uganda National Bureau of Standards (UNBS) and laboratories accredited by UNBS.

Halaal Certificate

This is an OPTIONAL requirement, issued upon request. It is acquired by entities that wish to engage in the Halaal food trade especially in predominantly Muslim countries. It demonstrates conformity to applicable hygiene, food safety and wholesomeness requirements by Islamic dietary guidelines.

Issued by Uganda Halaal Bureau (UHB) on behalf of UNBS. Fees vary depending on the products to be certified.

Phytosanitary Certificate

MANDATORY international requirement for trade in plant and plant products such as coffee, tea, fruits, vegetables, spices and grains. It certifies that the product does not contain anything injurious to plants, animals and human health – as per the import requirements for the destination market.

It is issued by the Crop Inspection and Certification Department, Directorate of Crop Resource, Ministry of Agriculture, Animal Industry & Fisheries (MAAIF). Fees are UGX. 5,000 per consignment

Fumigation Certificate

An OPTIONAL requirement but necessary for products of plant origin to confirm that fumigation processes have been undertaken to free the product of pests.

6) Get The Shipping Documents

INVOICE / PACKING LIST

An exporter is required to prepare an invoice and/or packing list, as the primary source document of information that will be captured and used throughout the customs clearance processes. It reflects amongst other details the export product, quantities and indicative value.

CERTIFICATE OF ORIGIN

A Certificate of Origin is a mandatory international requirement, issued on a consignment basis, to confirm the origin of the products being exported. It is required by the importing countries, particularly for import tax assessment purposes.

There are two types of Certificates of Origin.

General Certificate of Origin – Issued for shipments to countries that have NO preferential (special) trade arrangement with Uganda and hence generic international trade rules are applicable.

For example UAE, South Africa and Malaysia. It is issued by the Uganda National Chamber of Commerce and Industry (UNCCI). Fees are UGX. 20,000 per consignment.

Preferential Certificate of Origin – Uganda is a signatory or beneficiary to up to eight (8) bilateral – with China, Republic of Korea, India & Morocco – regional – EAC & COMESA – and multilateral – Everything-but-Arms (EBA) – preferential trade agreements.

Therefore, goods of Ugandan origin enjoy preferential (duty-free and quota-free) market access in up to 52 preferential markets (countries) under the different trade regimes. But, to enjoy preferential treatment, a consignment must be accompanied by the applicable preferential certificate of origin.

In Uganda, these are issued, free of charge, by the International Affairs Desk – Customs Department, Uganda Revenue Authority (URA) through the Uganda Electronic Single Window. A simplified EAC Certificate of Origin is available at the border for consignment of the value of less than US$ 2,000.

For the EU however, the Registered Exporter (REX) system is used for certification of origin of goods, instead of the GSP Certificate of Origin. The exporter is therefore required to pre-register on the system to enable verification in the EU at the time of export. Registration is done online at https:// conformance.customs.ec.europa.eu/rex-pa-ui/

INTERNATIONAL HEALTH MOVEMENT PERMITS

International Health Movement Certificate (IHMC) MANDATORY requirement for the movement of livestock (live animals) across borders. Issued by the Animal Health Department of the Directorate of Animal Resources, MAAIF at a fee of UGX. 40,000 per consignment. Additional supporting documents may be required, such as relating to animal health and the internal movement of the animals.

Conclusion

That is all that is required to start an agricultural export business in Uganda. For More Information on starting an export business in Uganda, see this.

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