Introduction
Dealing in Gold at any level in Uganda is open to Ugandans and foreign nationals albeit with detailed regulatory requirements. Section 140 of the Mining and Minerals Act 2022 prohibits any individual or company from engaging in the activity of buying and selling of minerals without a valid licence. Very precisely, to legally export gold from Uganda, one must first obtain a mineral dealers Licence issued by the Directorate of geological survey and Mines (DGSM) under the Ministry for Energy and Minerals development.
The exporter will also be required to obtain an export permit also from the same Directorate of geological survey and Mines, a Tax clearance from Uganda Revenue Authority (URA) upon submission of an essay report from a certified Refinery. This will be followed by working with a clearing agent to process the consignment through customs ensuring that all taxes and applicable duties have been paid.
Some exporters who decide to have their consignments accompanied by the sellers will at this stage handover to the accompanying agent until the consignment reaches the destination Country for final assay and other clearances.
This article guides a first-time gold exporter by providing a step-by-step export process for acquisition and exportation of Gold and other precious metals from Uganda.
The Gold acquisition and export processes in Uganda
Acquisition of a mineral dealers Licence (MDL)
Whether your intention is to execute a single purchase or recurring minerals orders, you are required to have a mineral dealer’s licence to purchase and export gold from Uganda. This does not mean however that a dealer who is interested in a single purchase will require to process a mineral dealers Licence in their corporate or individual name. What is recommended is for buyers interested in single purchases to find holders of a valid Mineral dealer’s licence to handle their purchase and export protocols. We always recommend that should a gold buyer decide to hire an exporter then a written contract spelling out the obligations of each party should be executed at commencement.
The obligations of the contracted exporter should among others include handling of the consignment, processing of the gold through the certified refinery till a valid assay report is obtained, assessing the consignment through the tax process and customs requirements until the consignment reaches the final export destination preferably CIF basis. (See our detailed article titled “step by step legal guide for acquiring a mineral dealer’s licence in Uganda”.)
Register with the mining Cadastre portal
Currently the Ministry of energy and mineral development has semi-automated the issuance of licences and permits. For that reason, any exporter will be required to register with the portal for purposes of obtaining all nature of required permits during the export process.
Registration on the Cadastre portal currently requires preparation and delivery of the following physical documents to the Directorate of geology and minerals. The documents include: –
- Completed cadastre portal Registration form
- Certified certificate of incorporation
- Certified memorandum and articles of association
- Board resolution (For persons acting on behalf of companies)
- Power of attorney
- URSB Postal address notice
- Beneficial owner form from URSB
- Identifications documents for all persons involved
The portal managers will then share access credentials within about 2-3 days of reviewing the documents.
Obtain export permit
A buyer of gold will be required to obtain an export permit before taking the consignment out of Uganda. This permit will be required irrespective of the volume and purity of gold being exported.
Before the Directorate of geological survey and mines issues the export permit, it will seek to confirm that an assay report has been obtained, confirmation of proof of royalty payments to Uganda Revenue Authority (URA), Proof of tax clearance and certificate of origin from Uganda National Chamber of Commerce and industry.
Obtain an Assay report
An assay report, issued by a government-approved laboratory, certifies the gold’s purity and weight for purposes of tax assessments before export. In Uganda, gold must be tested at authorized and certified facilities which have been inspected and approved by the Directorate of geological survey and mines and issued with a relevant license. This report is critical for determining the gold’s value and meeting international standards.
For a first-time buyer, it is important to confirm that the refinery you have contracted to deal with is licensed and authorized to do what you have contracted them to do.
Complete Customs documentation
Credible customs clearance is a key factor in responsible and sustainable gold exportation. The buyer at this stage is required to prepare a customs declaration form, certificate of origin, and invoice for URA clearance. It is prudent if a URA official is involved at point of assaying such that information is obtained at once.
Payment of taxes and applicable fees
Upon obtaining the URA tax assessment, the buyer should work with the contracted exporter and ensure payment of fees and assessment taxes. All payment of such fees is made through the cooperating banks upon presentation of the URA Payment Registration Number (PRN).
Process secure transportation
Where as some buyers choose to arrange with the seller to accompany the gold or other minerals to the destination country, some may opt to Partner with reputable logistics companies for insured shipping to agreed destination. It is important that the packaging and sealing of the consignment before exportation complies with international standards.
Comply with destination Country regulations
Ensure the importing country’s requirements, such as import licenses or customs duties, are met. For example, importing gold to Dubai requires an import permit from the Dubai Multi-Commodities Centre (DMCC) unless legally waived.
Before shipping, it is important for the clearing agent to conduct a comprehensive check with the customs declaration and clearance process at the destination country to enhance smooth and timely process at destination.
Concluding remarks
Exporting gold from Uganda offers significant opportunities for profit and investment, driven by the country’s vast gold reserves and a rapidly growing export market. However, the process demands strict compliance with licensing, Regulatory protocols, documentation and logistical requirements that require navigation while leveraging on expert support.
With careful observation of all licensing and regulatory requirements, the buyer will avoid delays in the purchasing and exportation process thereby minimizing risks and maximizing value.
