Two hundred pieces of smuggled fabrics of Kitenge worth Rwf18 million were intercepted in Rusizi District on Sunday, September 28, following intelligence shared by security institutions, according to the Rwanda Revenue Authority (RRA).

The fabrics were presented to the media on Tuesday at Kigali Special Economic Zone.

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"The fabrics were hidden under cement bags in a truck. The owners declared they had imported only cement, but our checks uncovered the hidden consignment,” Jean-Paulin Uwitonze, the Assistant Commissioner in charge of Taxpayer Services and Communications at RRA, said.

Some suspects were arrested while security organs are still pursuing others. Authorities did not disclose the number of those arrested.

He explained that the tax value of the fabrics is yet to be determined because different stages of taxation are required. He also warned that smuggling activities usually rise during the festive season when demand for clothes, drinks and food is higher.

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"We urge traders to use legal channels, use official border checkpoints, and pay the required taxes. Tricks such as creating compartments in vehicles, concealing goods under other cargo, or crossing illegally are already known to us. Even the so-called new methods are not new,” Uwitonze said.

He stressed that smuggling creates unfair competition for local manufacturers who comply with tax obligations and use electronic billing machines (EBMs).

"Illegally imported goods are sold in the same markets where compliant traders operate, yet smugglers do not issue EBM receipts or pay taxes. This is unfair to legitimate businesses,” he added.

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What’s next?

Uwitonze outlined the procedure for handling seized goods. Consumable products are auctioned, usually after three months, while non-consumables are destroyed.

Vehicles used in smuggling are also liable to confiscation, and their owners are fined up to US$5,000 in line with East African Community (EAC) customs offences.

He pointed out that smuggling is not limited to imports. Even locally manufactured goods are sometimes sold without EBMs.

"Some traders tell customers to buy elsewhere if they want receipts, or they cancel EBM transactions after sales. Others reduce the amount indicated on receipts in order to lower the tax payable,” he explained.

He urged buyers of goods such as beers to check out the tax stamps to ensure standards by using the Tax Stamp Scanner app.

Other goods intercepted

According to RRA, previous operations in this year have uncovered a variety of smuggled goods, including second-hand clothes, expensive beers, and electronic devices such as mobile phones and computers. Authorities also intercepted locally made products that were being sold without EBMs.

Since the beginning of this year, more than 1,500 packs of fabrics have been seized over smuggling, Uwitonze disclosed.