URA IN BOND, EFRIS CHAOS! Exporters Count Losses, Stranded for Months as System Glitches Paralyse Trade

John-Musinguzi-Rujoki-URA-Commissioner-General-addressing-the-press-on-the-tax-revenues-2-scaled

Kampala — A major system breakdown at the Uganda Revenue Authority (URA) has thrown the country’s export sector into disarray, with hundreds of exporters stuck for over two months due to transit bonds that “vanish” after trucks are cleared at border points.

The crisis, which traders now call the “URA Conundrum”, stems from a malfunction in the transit bond return system that began in early September. Under normal operations, once an export truck exits the country through an approved border, the corresponding transit bond—essentially a tax guarantee—should automatically return to the exporter’s account within 72 hours.

But that stopped happening.

Exporters say that after trucks cross the border, the system shows them as exited, but the bonds fail to reflect back in their accounts. Without an active bond, exporters cannot generate new T1 transit documents, meaning no fresh exports can be processed.

“This has been going on for more than two months. We report these errors to the system administrators, and all we are told is: ‘We are looking into it.’ Nothing changes,” said one frustrated exporter.

With business cycles halted, exporters allege millions of shillings in losses due to delayed deliveries, cancelled orders, and trucks stuck at borders for weeks awaiting clearance.

In a stopgap move, URA introduced virtual bonds—temporary digital guarantees intended to sustain exports as technicians “worked on the glitch.” These virtual bonds were valid for 2–3 weeks.

But traders say even those have now expired, and the underlying system problems remain unresolved.

“We are back to zero,” another exporter said. “The virtual bonds expired, the system still can’t return bonds, and our trucks can’t move. No one is giving us a clear answer.”

As if the bond chaos weren’t enough, another technical nightmare is unfolding: the introduction of EFRIS invoices for exports.

Exporters report that when they key in EFRIS invoice numbers into the export system, the system automatically generates wrong invoice values, inflating the taxable value of goods. Some exporters say they have accumulated huge, non-existent tax liabilities as a result.

Worse still, when these invoices are sent for assessment, they disappear from the system completely, making it impossible to finalize export entries.

To correct these errors, traders must generate credit notes—but those, too, are failing.

“No credit notes can pass. No new export entries can be completed. It’s a complete paralysis,” a clearing agent explained.

With entries stuck in limbo, trucks continue to accumulate at borders such as Malaba, Mutukula, and Elegu. Exporters are footing skyrocketing demurrage and parking fees as they wait for URA’s system to free their consignments.

“Every day a truck spends at the border is a loss. Some of us have perishable goods. Clients are cancelling orders. This is national damage,” an exporter dealing in fresh produce said.

Traders point fingers squarely at URA’s IT and system administrators, accusing them of failing to resolve errors that have crippled trade for weeks.

URA has not issued a public statement on the crisis, but insiders say engineers are “working around the clock” to stabilize the system—though exporters say they have heard that line for months.

Analysts warn that if the situation is not resolved immediately, Uganda risks being viewed as an unreliable trading partner, particularly in regional markets where supply schedules are strict.

“This is not a small glitch. It is affecting the entire export ecosystem—manufacturers, freight forwarders, clearing agents, and foreign buyers,” a logistics expert noted.

Traders are now calling on URA leadership to provide a clear roadmap on when the bond return system and the EFRIS export module will be fully restored.

“Uganda cannot afford to joke with exports. This is foreign exchange we are losing,” said a representative of an exporters’ association.

For now, the lines at borders grow longer, the invoices disappear into the system’s “black hole,” virtual bonds lapse, and exporters wait—day after day—as the URA’s digital machinery continues to misfire.

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