Tax Advisory & Disputes — Customs Classification
K&K Advocates successfully represented Uganda Breweries Limited in a customs classification and valuation dispute involving capital machinery imports, securing an amicable resolution of a UGX 23 billion Uganda Revenue Authority assessment.
Forum: Tax Appeals Tribunal, Uganda
Matter Value: UGX 23,438,507,202
Status: Resolved
Following a post-clearance customs audit, the Uganda Revenue Authority assessed Uganda Breweries Limited UGX 23,438,507,202, alleging misclassification of imports under incorrect Customs Procedure Codes. At the centre of the dispute was the classification and valuation of capital machinery, including a Water Recovery Plant and associated equipment imported for UBL's manufacturing operations. A misclassification finding of this magnitude carried implications not only for the immediate tax liability but for the economics of future capital equipment imports and the broader cost of investing in industrial infrastructure in Uganda.
K&K Advocates advised UBL on all legal and procedural aspects of its appeal before the Tax Appeals Tribunal. Our work involved a detailed analysis of the applicable Customs Procedure Codes, the correct customs valuation methodology for capital machinery under the East African Community Customs Management Act and the WTO Valuation Agreement, and the specific classification rules governing industrial equipment of the kind imported by UBL. The matter was resolved amicably, avoiding a contested determination before the Tribunal.
Lead Advocates: Edwin Karugire
Advocates: Richard Bibangambah
K&K Advocates acted as Ugandan counsel to Uganda Railways Corporation alongside the Attorney General's Chambers and international co-counsel Curtis, Mallet-Prevost, Colt & Mosle LLP. The London tribunal dismissed all claims and awarded Uganda costs in excess of USD 3.6 million and GBP 200,000.
K&K Advocates acted as counsel for Diamond Trust Bank Uganda and Diamond Trust Bank Kenya throughout all three levels of court, securing dismissal of a claim seeking UGX 34 billion and USD 23 Million, and the unconditional release of all security.
K&K Advocates successfully represented Absa Bank Uganda Limited before the Constitutional Court, defending the validity of Regulation 13 of the Mortgage Regulations in a challenge brought by a defaulting borrower seeking to frustrate security enforcement.
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