Vinod Vadera of the Kakonde tea estates in Mityana, described the proposal as retrogressive and not beneficial to the tea exporters.
Tea exporters from Uganda have rejected a proposal by Kenya Revenue Authority (KRA) to reintroduce bonded warehouses, intended to replace the existing transit warehouse systems.
Speaking at the first African tea conference at the Whitesands hotel in Mombasa on Friday, VinodVadera of the Kakonde tea estates in Mityana, described the proposal as retrogressive and not beneficial to the tea exporters.
Kenya’s standard newspaper quotes Vadera saying that bonded warehousing is likely to increase the cost for Ugandan exporters, which will make the tea less competitive.
Valdera also pointed out that bonded warehouses would create procedural delay in the release of tea that would further increase the cost for tea exporters.
Valdera also raised an alarm over the delay at the Kenya-Uganda border, which he described as time consuming. He noted that a lot of time is wasted in issuing of receipts, verification and clearing at the Malaba post, eating into the Ugandan exporter’s time at the auctions.
Ugandan tea exporters also called for the removal of re-export charges, on grounds that they were paying for products that have already been sold off to third parties.
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