Question 1 Ms. Kimpamuidha left Uganda in 1979 and settled in Finland. She retired early this year. Ministry of Foreign Affairs in conjunction with Uganda Revenue Authority (URA) held a series of sensitisation seminars for Ugandans living in Finland about taxation and other developments in the region. Unfortunately, she (Ms. Kimpamuidha) was pre- occupied with her job and missed all the seminars. However, she was informed by her long-time friend, Kitone, that a returnee's property is exempted from taxation. Kitone, further informed her that the partner states in East Africa had integrated and formed a customs union. Currently, the region is considered as a single customs territory (SCT) making it possible for goods to be declared at Mombasa, the port of entry. With the assistance of her brother,Ms. Kimpamuidha constructed a retirement house in Uganda. Ms. Kimpamuidha is excited about joiningher relatives. She bought a number of gifts for them. She contracted a shipping company to ship her goods from Port of Helsinki to Mombasa port. The shipping company prepared a packing list of all her property which included the following: (a) Used clothes weighing 800 kilogrammes. (b) 6 new ladies suits. (c) Used shoes weighing 200 kilogrammes. (d) 8 pairs of new ladies sports shoes. (e) A saloon car purchased in 2013 and registered in her names (f) Fuso truck with gross weight of 3 tonnes purchased brand new in 2017 whichshe intends to use in transport business to generate income. (g) 7 seater used sofa set. (h) 8 seater used dining table. (i) 52 pieces of used computers. (j) 2 used refrigerators. (k) 2 used flat screen LED TV sets. (l) 6 New 55 inch flat screen LED TV sets. (m) 89 packages of assorted used kitchen ware. (n) 55 packages of assorted used household items. (o) 1 used motorised lawn mower. (p) 1 used fitness bicycle. (q) 6 used beds. (r) 6 used mattresses. (s) 3 used children bicycles.

After a formal hand over of the goods to the shipping company which promised delivery within a period of 2 months at Mombasa, Ms. Kimpamuidhareturned to Uganda in September2018. Shereceived a notification from the shipping company that her containershad arrived in Mombasa. She was requested to arrange to receive and evacuate them from the port. She visited a customs office, where she was advised to hire a competent clearing firm to assist her in handling and clearing of her goods. Through a friend, Ms Kimpamuidha, identified Bobo Clearing and Forwarding Company. A meeting was arranged with Bosco, the operations manager, of the clearing firm. During the meeting, she passed over her documents to him and explained that she was a returnee who had spent a long period outside the country. She was returning to settle in Uganda. Since most of her personal property for use were in the container,she requested the agent to expedite the clearance process. Bosco appreciated her for the business and informed her that she would be required to enter the goods for warehousing in a bond in Uganda before they can lodge a final entry, clearly indicating the goods qualifying for exemption. He also informed her that the exemption would only be applicable on qualifying goods and not all of them. She would be required to pay for some of the goods. In addition, it was noted that she carried contrabands for which she would be penalised and needed to be destroyed before clearing the other goods. On learning this, Ms Kimpamuidha was furious wondering if it was a single customs territory why couldn't she clear her goods direct from Mombasa? What does Bosco mean by qualifying goods? If this is the case what is the use of integration and customs union to her? After all this, she made up her mind to consult a third party before taking a decision. You have been recommended to Ms. Kimpamuidha and have had an interference. Required: Advise Ms Kimpamuidhaon: (i) the meaning of regional integration, customs union and single customs territory. (3 marks) (ii) the benefits of single customs territory to people involved in international trade. (iii) the requirements for a returnee to be exempted, pointing out where she qualifies and where she does not. (5 marks) (iv) the items on the packing list that qualify for exemption and those to be paid for with reasons. (7 marks) (v) why goods exempted from paying taxes cannot be cleared on a direct IM4 at Mombasa and briefly outline the procedure for clearing such goods from the port of Mombasa. (5marks) (vi) the goods on the packing list which are categorised ascontraband,giving clear reasons. (3 marks) (vii) on an offence she committed and the penalty as per the provisions of the East African Customs Management Act 2004 as revised. (3 marks) (viii) the total tax payable after customs attaching the values using method 2 of GATT Valuation method. Assuming the Fuso truck and all the new items were to be taxed at 25%, 18%, 6% and 1.5%. The CIF of the Fuso truck $5,000, new lady suits $35 each, a pair of ladies' sports shoes $15 each and 55' inches TV $650 each. Take exchange rate to be Shs 3,670 per dollar.

SECTION B Question 2 ABC is an organisation through which donors channel the funds to implement a number of projects aimed at improving infrastructure in the East African Community (EAC) as well as stimulate and facilitate trade. ABC has funded construction of a number of one stop border points (OSBPs) on most border posts of the partner states within the region.

Required: (a) Explain the meaning of the term OSBP. (b) Describe the operation of an OSBP. (c) Explain the benefits of OSBP

(d) Outline the agencies that are involved in the OSBP and their mandate. (7 marks) (Total 25 marks) Question 3 Customs authorities all over the world have adopted the Security and Facilitation in a Global Environment model (SAFE) of partnering with clients in handling of international trade. Through this, different countries have profiled different companies in a number of sectors like importers, manufactures, transporters and clearing firms,popularly known as Authorised Economic Operators (AEOs). Required: (a) Explain the meaning of: (i) AEO. (3 marks) (ii) SAFE. (2 marks) (b) Explain the conditions customs officials consider before a company or firm is licensed to be AEO. (5 marks) (c) With illustrations, explain the benefits of AEO programme. (10 marks) (d) Describe the checks and controls that are put in place to make sure that AEOs remainfocussed. (5 marks) (Total 25 marks)

Question 4 The concept of rule of origin in international trade is becoming increasingly important. The implementation of regional integration and application of trade measures such as import bans and prohibition, discriminatory restrictions, tariff quotas, preferential rates etc. Uganda as a country is a member to a number of trading blocs like EAC, COMESA and PTA. One common practise in these blocs is to trade amongst member countries and this is achieved through taxing goods originating from members countries at a preferential rate.

Required:

(a) Explain the meaning of the term 'preferential rule'. (3 marks) (b) Describe the mandatory documents that should accompany goods from preferential trade area and the characteristics of suchdocuments. (9marks) (c) Explain the term 'rules of origin'. (3 marks) (d) Most of the trading blocs that Uganda is a member have a set of rules of origin. Discuss the EACrules of origin.