Discusses pricing formula and other fees, value-added tax (VAT), etc.
Last Published: 7/21/2019

Ugandan firms importing goods use the International Chamber of Commerce trade terminology otherwise known as “Incoterms.”
Although many U.S. firms prefer to quote prices on Ex Works or Free on Board basis, Ugandan importers generally prefer price quotes on “CIF Mombasa” basis.  Mombasa (Kenya) is the main initial port of entry for goods eventually destined for Kampala although in recent years, some Ugandan traders have imported goods through Dar es Salaam (Tanzania).  Ugandan importers generally prefer Cost, Insurance, and Freight quotes in U.S. dollars as they are familiar with customs charges, including taxes levied at the local ports/airports and brokerage and handling charges.

Uganda operates as a free market with few price controls outside of basic food stuffs. 

Ex Works:  The seller is required to make goods ready for pickup at his or her own place of business.  Transportation costs and risks are assumed by the buyer.  [Least risk to exporter, greatest risk to Ugandan importer]

Free on Board:  The seller agrees to absorb the costs of delivering the goods to the purchaser's transporter of choice.  The term FOB is a frequent feature of contracts for the sale of goods, especially when the goods are to be delivered to a foreign destination.  [Low risk to exporter, high risk to Ugandan importer]

Cost, Insurance, and Freight:  The seller arranges for the carriage of goods by sea to a port of destination, and provides the buyer with the documents necessary to obtain the goods from the carrier.  [Moderate risk to exporter, moderate risk to Ugandan importer]

Import Costs
When calculating import costs, companies should consider the following:

  • Purchase costs, as per bill of landing net sea/airfreight charges depending on incoterm basis.

  • Insurance

  • Logistics

    • shipping agent’s fee

    • port charges

    • clearing charges are $150 - $250 per container

    • forwarding charges

  • Land transport.  Despite the relatively short distance, land transportation costs from the Kenyan port of Mombasa to Kampala are substantial at $3,500 per dry container—often exceeding the price of shipping goods from the exporter port to Mombasa.

  • Custom/Excise taxes

    • Most of the goods exported to Uganda are subject to customs/excise duty taxes.  These taxes vary depending on the products. The range of customs taxes varies from zero to 60 percent

    • Value-Added Tax (VAT) is 18 percent

    • Withholding tax is 6 percent

    • Infrastructure Tax is 1.5 percent

    • Foreign Service Tax  is 15 percent withholding tax and 18% VAT

  • Miscellaneous fees

    • Some agricultural goods including beef and dairy are subject to additional fees.

    • Some high-value consumer goods not meant for resale including digital televisions are also subject to additional taxes.

  • For further information on import fees, please go to the URA’s website:  Uganda Revenue Authority - Services Catalogue

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.


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