Grey imports and red-tape in Uganda

Grey imports are simply used vehicles (or products in general) imported from outside the country. Given the strict vehicle codes and economic incentives for purchasing new cars in nations like Japan, the grey import market has a steady pool of reliable cars to choose from, and at a cost significantly lower than similar vehicles available domestically. Well, at least that's the theory. The Uganda National Bureau of Standards (UNBS ) has imposed a tariff on the importation of used vehicles, requiring a pre-shipment inspection fee on cars from the country of origin before shipping. The law, which took effect last September, has provoked the ire of Uganda's car salesmen since its inception. The Uganda Used Vehicles Importers Association, led by David Tigawalana, told the UNBS on Thursday that the law unduly increases the cost of doing business. Imported used cars are also subjected to a 20% "environmental" tax. Tigawalana proposed that the UNBS "set up centers in Uganda where the inspection of cars can be carried out without the importers incurring extra costs."

-Caleb B. Ray