WORLD TRADE  
ORGANIZATION  G/VAL/N/1/UGA/1 
7 October 2005 
 
 (05-4513) 
Committee on Customs Valuation Original:   English 
  
 
NOTIFICATIONS UNDER ARTICLE 22 OF THE AGREEMENT ON  
IMPLEMENTATION OF ARTICLE VII OF THE GENERAL 
AGREEMENT ON TARIFFS AND TRADE 1994 
 
UGANDA 
 
 
 The following communication, dated 21 September 2005, is being circulated at the request of the delegation of Uganda. 
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 The law introducing the WTO Customs Valuation Agreement in Uganda is contained in the 
Finance Act, 2001 and is hereon attached.
1 
                                                      
1 In English only. G/VAL/N/1/UGA/1 
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 ACT 1 Finance Act 2001 
 
FIRST SCHEDULE 
AMENDMENT OF FOURTH SCHEDULE TO THE EAST AFRICAN CUSTOMS AND TRANSFER TAX 
MANAGEMENT ACT , 1970  Cap.  27 E.A. 
 
"FOURTH SCHEDULE " 
VALUE  OF IMPORTED  GOODS 
 
Value for duty purposes 
1. (1) For the purpose of assessing the amount of any ad valorem duty payable on any 
imported goods, and for the purpose of any declaration or oath which may be required by this Act, or 
any other enactment in relation to any question of va lue or duty in connection with the importation of 
goods or goods which are likely to be imported, the value of those goods shall, subject to the 
provisions of this Act, be the transaction value of  the goods established or determined according to 
this Schedule. 
 (2) Where the Customs value cannot be dete rmined under the transaction value of goods, 
as hereinafter defined, it is to be determined by proceeding sequentially through the alternative 
methods of valuation, hereinafter set out. 
Transaction value:  Primary method of valuation 
2. (1) Subject to the provisions of this Act, the value for duty purposes of any imported 
goods shall be the transaction value of the goods, that is to say, the price actually paid or payable for the goods when sold for export to Uganda, adjusted in  accordance with the provisions of item 9 of this 
Schedule and provided that – 
(a) There are no restrictions as to the disposal  or use of the goods by the buyer, other 
than restrictions which – 
(i) Are imposed or required by law;  or 
(ii) limit the geographical are in which the goods may be resold;  or 
(iii) do not substantially affect the value of the goods. 
(b) the sale or price of the goods is not subject to any condition or consideration for 
which a value cannot be determined;  and 
(c) no part of the proceeds of any subsequent r esale, disposal or use of the goods by the 
buyer will accrue directly or indirectly to the seller, unless an appropriate adjustment can be made in terms of item 9;  and 
(d) subject to the provisions of paragraph (2) of this item the buyer and the seller are not 
related.  G/VAL/N/1/UGA/1 
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  (2) The fact that a buyer and a seller are re lated shall not in itself be grounds for not 
accepting the transaction value where – 
(a) In the opinion of the Commissioner General,  such relationship did not influence the 
price actually paid or payable for the goods concerned;  or 
(b) the importer proves to the satisfaction of the Commissioner General that the 
transaction value closely approximates to one of the following value bases – 
(i) The transaction value of identical or si milar goods sold at or about the same 
time as the goods to be valued at comparable commercial and quantity levels to buyers in Uganda who are not related;  or 
(ii) the value, determined in terms of it em 5, of identical or similar goods 
imported into Uganda at or about the same time as the goods to be valued. 
Transaction value of identical goods:  First alternative method 
3. (1) Subject to the provisions of item 4 and of  this item, if the value for duty purposes of 
any imported goods cannot be established in terms of  transaction value, their value for duty purposes 
shall be the transaction value of identical goods which are – 
(a) Sold for export to Uganda at the same co mmercial level and in substantially the same 
quantity as the goods to be valued;  and 
(b) exported to Uganda at or about the same time as the goods to be valued. 
 (2) Where no sale such as is referred to in paragraph (1)(a) of th is item is found, the 
transaction value of identical goods sold at a differe nt commercial level and/or in different quantities, 
adjusted to take account of differences attributable to commercial level and/or to quantity, shall be 
used, provided that such adjustments can be ma de on the basis of demonstrated evidence which 
clearly establishes the reasonableness and accuracy of the adjustment, whether th e adjustment leads to 
an increase or a decrease in the value. 
 (3) In establishing the value for duty purpo ses of any imported goods in terms of this 
item, an adjustment shall be made to take account  of significant differences in the goods arising from 
differences in distances and modes of transport. 
 (4) If, in the application of this section, mo re that one transaction value is determined, the 
lowest such value shall be taken as the valu e for duty purposes of the goods to be valued. 
 (5) An importer who wishes any imported goods to  be valued in terms of this item may, 
on request, provide to the proper officer either – 
(a) A copy of a bill of entry on the basis of which customs accepted the value of 
imported goods which were identical to the goods to be valued and which were 
entered within three months of the da te of the goods to be valued;  or 
(b) sufficient information to enable the proper o fficer to trace a bill of entry referred to in 
subparagraph (a). G/VAL/N/1/UGA/1 
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 Transaction value of similar goods:  Second alternative method 
4. (1) If the value for duty purposes of any importe d goods cannot be established in terms of 
item 2 or 3 their value for duty purposes shall be the transaction value of similar goods that are 
exported to Uganda at or about the same time as the goods to be valued. 
 (2) The provisions of paragraphs (2) to (5 ) of item 3 shall apply, with the necessary 
changes, to the valuation of goods in terms of this  item as if the references in those paragraphs to 
identical goods were references to similar goods. 
Deductive value:  Third alternative method 
5. (1) If the value for duty purposes of any importe d goods cannot be established in terms of 
items 2, 3 or 4, their value for duty purposes shall be established in terms of this item. 
 (2) Subject to the provisions of this item, if the goods to be valued, or identical or similar 
goods, are sold in Uganda at or about the same time  of importation of the goods to be valued and in 
the same conditions as that in which they were imported, the value for duty purposes of the goods to 
be valued shall be based on the unit price at whic h the imported goods or the identical or similar 
imported goods, as the case may be, are so sold in  Uganda in the greatest aggregate quantity to 
persons who are not related to the importer. 
 (3) If the goods to be valued, or identical or similar imported goods, are not sold in 
Uganda at or about the same time of importation of the goods to be valued, but are otherwise sold in 
Uganda as provided in paragraph (2 ), the value for duty purposes of th e goods to be valued shall be 
based, subject to the provisions relating to identi cal or similar goods, as the case may be, on the unit 
price at which the imported goods are sold in the greatest aggregate quantity in such a sale transacted 
at the earliest date after the importation of the goods to be valued, but not later that ninety (90) days 
after such importation. 
 (4) If the goods to be valued, or identical or similar imported goods, are not sold in 
Uganda in the same condition as that in which they  were imported, then, whether or not the importer 
so requests, the value for duty purposes of the goods to be valued shall be based, subject to the 
provisions of this item, on the unit price at which th e goods to be valued or identical or similar goods, 
as the case may be, are sold after further processing in the greatest aggregate quantity to persons in 
Uganda who are not related to the importer. 
 (5) In valuing goods in terms of this item,  deductions shall be ma de, where appropriate, 
for – 
(a) Commissions usually paid or agreed to be paid, or additions usually made for profit 
and general expenses, in connection with sal es in Uganda of goods of the same class 
of a kind as the goods to be valued, irrespective of the country of exportation; 
(b) any costs of transportation and the cost of loading, unloading, handling and insurance 
and associated costs incidental to the trans portation of the goods within Uganda from 
their place of importation; 
(c) any duty or tax payable in Uganda by reason of the importation or sale of the goods;  
and 
(d) in the case of goods to which the provisions  of paragraph (4) apply, any increase in 
the value attributable to the further pr ocessing referred to in that paragraph.  G/VAL/N/1/UGA/1 
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  (6) For the purpose of establishing the unit price of any goods in terms of this item, an 
officer may accept a sales invoice or price list substantiated by a sales invoice relating to the goods concerned at the relevant time. 
6. (1) If the value for duty purposes of any importe d goods cannot be established in terms of 
items 2, 3, 4 or 5 their value for duty purposes shall be established in terms of this item. 
(2) The Customs value of imported goods under the provisions of this item shall be based 
on a computed value.  Computed value shall consist of the sum of – 
(a) The cost or value of materials and fabrication or other processing employed in 
producing the imported goods; 
(b) an amount for profit and general expenses equa l to that usually reflected in sales of 
goods of the same class or kind as the goods being valued which are made by 
producers in the country of exportation for export to Uganda;  and 
(c) the cost or value of all other expenses necessary to reflect the costs set out in 
paragraph (2) of item 9. 
 (3) Any person not resident in Uganda may not be required or compelled to produce for 
examination or to allow access to any account or an y other record for the purposes of determining a 
computed value.  However, information supplied for the purposes of determining the customs value 
under the provisions of this item may be verified in another country with the agreement of the 
producer, provided sufficient advance notice is given to the government of the country in question and 
that the government does not object to the investigation. 
Fall-back method of valuation:  Final alternative method 
7. (1) If the customs value for duty purposes of any imported goods, other than 
non-merchandise goods as defined in item 8, cannot be established or determined in terms of items 2 
to 6, it shall be determined us ing reasonable means consistent with the principles and general 
provisions of valuation set out in items 1 to  6 above and may be based on, for example – 
(a) Application of any of the previous methods of valuation with such modifications or 
adaptations as may be necessary; 
(b) a previously determined value;  or 
(c) use of any other reasonable means consistent with this Act. 
 (2) The determination shall be based on information readily available in Uganda. 
 (3) The following may not be used in de termining the customs valuation under the 
fall-back method – 
(a) The selling price of goods produced in Uganda; 
(b) a system which provides for the acceptance fo r customs purposes of the higher of two 
alternative values; 
(c) the price of goods on the domestic market of the country of exportation; G/VAL/N/1/UGA/1 
Page 6  
 
 (d) the cost of production other than computed  values which have been determined for 
identical or similar goods in accordance with item 6; 
(e) the price of the goods for export to a country other than Uganda; 
(f) minimum customs values;  or 
(g) arbitrary or fictitious values. 
 (4) Whenever the value of imported goods is  to be determined using this method of 
valuation, the importer shall produce to the prope r officer such documentary  evidence as is necessary 
for such a determination. 
 (5) The importer, if he or she so requests,  shall be informed in writing of the customs 
value determined under the terms of this item a nd the method used to determine that value. 
Valuation of goods imported privately 
8. Where the price actually paid or payable for non-merchandise goods cannot be verified on the 
basis of objective and quantifiable data, it may be de termined on the basis of a previous determination 
or, it there is no such determination, by applying item 7. 
Adjustments to be made in calculating value for duty purposes of imported goods 
9. (1) In determining the value for duty purposes of any imported goods in terms of item 2, 
there shall be added to the price actually paid or payable for the goods – 
(a) The following, to the extent th at they are incurred by the bu yer but are not included in 
the price actually paid or payable – 
(i) Commissions and brokerage excerpt buying commission incurred in the 
purchase of the goods; 
(ii) the cost of containers which are tr eated as being one for customs purposes 
with the goods in question;  and 
(iii) the cost of packing whether for labour or materials. 
(b) the value, apportioned as appropriate, of an y of the following goods and services, if 
supplied directly or indirectly by the buyer fr ee of charge or at reduced cost for use in 
connection with the production and sale for export of the imported goods, to the 
extent that such value has not been include d in the price actually paid or payable – 
(i) Materials, components, parts and simila r items incorporated in the imported 
goods to be valued; 
(ii) tools, dies, moulds and similar articl es used in the production of the imported 
goods to be valued; 
(iii) materials consumed in the production of the imported goods to be valued;  
and  G/VAL/N/1/UGA/1 
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 (iv) engineering, development, artwork, design work, and plans and sketches 
undertaken elsewhere than Uganda and necessary for the production of the imported goods to be valued. 
(c) payments made by the buyer for the right to distribute or resell the imported goods 
shall not be added to the price actually paid  or payable for the imported goods if those 
payments are not a condition of the sale fo r export to Uganda of the imported goods; 
(d) the value of any part of the proceeds of any subsequent resale, disposal or use of the 
imported goods to be valued that accrues directly or indirectly to the seller. 
 (2) In determining the value for duty pu rposes of any imported goods in terms of 
items 2 to 8, there shall be added to the price actually paid or payable for the goods – 
(a) The cost of transport and insurance from the place of manufacture to the place of 
export and all other handling charges and e xpenses incidental to placing the goods on 
board the means of transport by which the goods are removed from the country of exportation, if such cost is not included in the price actually paid or payable for the goods to be valued; 
(b) if the goods in question have been expor ted to Uganda through another country, 
freight, insurance and other handling charges in the country of supply to the country 
where the goods are placed on board the mean s of transport for direct transportation 
to Uganda, if such cost is not included in the price actually paid or payable for the 
goods to be valued;  and 
(c) in the case of goods imported by post, all charges for postage, handling and insurance 
which are reflected on or in any document accompanying the goods. 
 (3) In determining the value for duty purposes of any imported goods in terms of items 
2 to 8 there shall not be included in the price actually  paid or payable for the goods, to the extent that 
they are separately distinguished, amounts equal to – 
(a) The cost of transportation, loading, unlo ading, handling, insurance and associated 
costs incidental to the transportation of th e goods within Uganda from their place of 
importation;  and 
(b) the cost of air transport from outside Uganda to an airport in Uganda. 
 (4) Additions to the price actually paid or payable shall be made under this article only 
on the basis of objective and quantifiable data. 
 (5) No additions shall be made to the price actually paid or payable in determining the 
Customs value except as provided for this article. 
Alternative methods under items 5 and 6 
10. If the customs value of the imported goods ca nnot be determined under the provisions of 
items 2, 3, and 4, the customs value shall be de termined under the provisions of item 5 or, when the 
customs value cannot be determined under this item, under the provisions of item 6, except that, at the 
request of the importer, the order of the app lication of items 5 and 6 shall be reversed. G/VAL/N/1/UGA/1 
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 Definitions 
11. (1) For the purpose of this Schedule the following definitions shall apply – 
"buying commission" in relation to imported goods, means an amount paid or 
payable, directly or indirectly, by or on be half of an importer, to a person who, as an 
agent of the importer, represented him ab road in the purchase and payment of the 
goods being valued. 
But the amount paid by the importer shall not be taken to be a buying commission unless the 
Commissioner General is satisfied that the pe rson acting as the agent did not, or does not – 
(i) Produce in whole or in part, or control the production in whole or in part, of 
the imported goods or any other goods whose value would be taken into 
account in determining the value of the imported goods;  or 
(ii) render or control the rendering of any services whose value would be taken 
into account in determining or attempting to determine the price of the imported goods or other services of the same class; 
(iii) transport the imported goods, or any ot her goods referred to in subparagraph 
(i) within any foreign country or betw een a foreign country and Uganda or 
with Uganda, for any purposes associated with the manufacture or importation of the imported goods;  pur chase, exchange, sell or otherwise 
trade in any of the goods referred to in  subparagraph (i) or render any of the 
services referred to in subparagraph (ii), otherwise than in the capacity of an 
agent of the importer; 
(iv) in relation to any of the goods referred to in subparagraph (i) or any of the 
services referred to in subparagraph (ii), act as an agent for, or in any other 
way represent the producer, supplier or seller of the goods or the person who 
rendered the services, as the case may be, or otherwise be associated with any such person except as the agent of the importer;  or 
(v) claim or receive, directly or indirectly , the benefit of any commission, fee or 
other payment on any goods or services from any person as a consequence of the importation of the goods concerned other than a commission received from the importer for the services rendered by that person in the first transaction; 
"country of importation" means Uganda; 
"customs value of imported goods" means th e value of goods for purposes of levying 
ad valorem duties of customs on imported goods; 
"identical goods" means goods which are the sa me in all respects, including physical 
characteristics, quality and reputation.  Mi nor differences in appearance shall not 
preclude goods otherwise conforming to th e definition from being regarded as 
identical; 
"place of importation", in relation to – (1) Goods, other than goods imported by post, means –  G/VAL/N/1/UGA/1 
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 (i) Where the goods are imported by ship, th e ship's first port of call in Uganda; 
(ii) where the goods are imported by aircraft, the place where the aircraft makes 
its first landing in Uganda; 
(iii) where goods are imported by road or rail transport, the place where the goods 
first cross the borders of Uganda;  or 
(iv) where the goods are imported by pipeline, the place where the goods pass 
through the first metered point on the pipeline within Uganda. 
(2) Goods imported by post means when the goods arrive at a post office in Uganda 
where any duty payable on the goods is assessed. 
"produced" includes grown, manufactured and mined; 
"price actually paid or payable", in relation to imported goods means the total 
payment made or to be made by the buyer to, or for the benefit of, the seller of the imported goods; 
"similar goods" means goods which, although not alike in all respects, have like 
characteristics and like component materials which enable them to perform the same 
functions and to be commercially intercha ngeable.  The quality of the goods, their 
reputation and the existence of a trademark ar e among the factors to be considered in 
determining whether goods are similar; 
"non-merchandise goods" means goods imported by an individual for his own use in 
Uganda but not for trade purposes; 
"goods of the same class or kind" means goods  which fall within a group or range of 
goods produced by a particular industry or industry sector, and includes identical or 
similar goods; 
(2) (a) The terms "identical goods" and "sim ilar goods" do not include, as the case may be, 
goods which incorporate or reflect engineeri ng, development, artwork, design work, 
and plans and sketches for which no adjustment has been made under 
paragraph (1)(b)(iv) of item 9, of this Schedule because such elements were 
undertaken in Uganda. 
(b) Goods shall not be regarded as "identical  goods" or " similar goods" unless they were 
produced in the same country as the goods being valued. 
(c) Goods produced by a different person shall be taken into account only when there are 
no "identical goods" or "similar goods", as the case may be, produced by the same 
person as the goods being valued. 
 (3) (a) Persons shall be deem ed to be related only if – 
(i) They are officers or directors of one another's businesses; 
(ii) they are legally recognized partners in business; 
(iii) they are employer and employee; G/VAL/N/1/UGA/1 
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 (iv) any person directly or indirectly owns, c ontrols or holds five per cent (5%) or 
more of the outstanding voting stock or shares of both of them; 
(v) one of them directly or indirectly controls the other; 
(vi) both of them are directly or indirectly controlled by a third person; 
(vii) together they directly or indirectly control a third person;  or 
(viii) they are members of the same family. 
(b) Persons who are associated in business with one another in that one is the sole agent, 
sole distributor or sole concessionaire, however described, of the other shall be deemed to be related for the purposes of th is Schedule only if they fall within the 
criteria of subparagraph (a). 
 
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