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Uganda unveils new manual on prosecuting counterfeits

Saturday February 16 2013
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A Customs official with impounded counterfeit pens. Proponents of the new anti-counterfeit manual say that it will lead to more convictions, thus deter those involved. Photo/FILE

Uganda is banking on a new prosecutor’s manual to fight trade in substandard and counterfeit goods amid growing concerns over the light penalties provided under the current law.

The manual, titled Prosecutors Manual on Illicit Trade in Uganda, is a reference tool for both government and private sector officials involved in fighting the illicit trade, highlighting laws that deal with it in the country and East Africa.

Proponents of the manual, released on January 29, said it will help guide prosecutors on charges to prefer against accused persons.

While they argue that the manual will lead to more convictions, thus sending a strong message to those involved, traders bemoan weak laws, which offenders break and get away with lightly.

“How strong is the law that we want to enforce? Does it have deterrent sentences so that when one is taken to court, he does not walk away with two currency points?” said Gideon Badagawa, the executive director, Private Sector Foundation Uganda.

“We have asked, as the private sector, that those dealing in counterfeits be bankrupted so that they do not repeat the offence,” he said.

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READ: Enact law on fake goods — traders

Even where the law provides for a stiff penalty, courts have rarely passed such sentences. For example, the Penal Code Act provides for forfeiture of goods together with the vehicle used in smuggling, but that sentence is rarely handed down, traders said.

Law enforcers believe the manual will help officers write more appropriate charge sheets.

“We are tackling the problem in-house. We are equipping prosecutors in the area of gathering of evidence and presentation before the courts, but we are aware that the problem is much bigger,” said Richard Buteera, Uganda’s Director of Public Prosecution.

“The manual is about how to implement the existing laws, but where our laws are weak, we need to improve them so that the penalties are adequate. We shall give our proposals to parliament on how to strengthen the laws,” Mr Buteera said.

According to the Uganda Revenue Authority, most goods have been hit by substandard goods or counterfeits but cigarettes are the worst hit because of the expected high returns even when traded in very small quantities.

Often, traders declare that cigarettes are destined for South Sudan or the the Democratic Republic of Congo but divert small consignments into the Ugandan market.

“Since last October, our sales have dropped significantly. We believe people who have been using legal products have turned to cheap illegal products. Since that time, URA has been losing $55,500 in taxes per weeks,” said Jonathan D’Souza, BAT(U) managing director.

In a bid to reduce smuggling, URA’s prosecution department has started invoking the provisions in the EAC Customs Management Act, which provides for punitive measures against illicit trade including forfeiture of goods that have been moved from Customs without due payment of taxes.

“We feel this is deterrent enough because where we have done it recently, the perpetrators’ capacities to smuggle have been curtailed,” said Peter Muliisa, manager prosecution legal services and board affairs department.

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