Tax authority orders suppliers to clear long-stay petroleum stocks

The Rwanda Revenue Authority (RRA) has issued a directive requiring oil importers and marketers to immediately clear petroleum products that have remained in customs bonded depots for more than six months, warning that failure to comply within 30 days will result in enforced disposal by customs authorities. In a public notice released on June 2, the Authority said the measure targets importers whose fuel stocks have exceeded the legally permitted storage period in bonded facilities. The directive affects petroleum products held across depots nationwide and was communicated to stakeholders within a supply chain comprising about 730 companies. ALSO READ: Why Rwanda's fuel demand surged by nearly 40 percent in April RRA based its decision on Section 57 of the East African Community Customs Management Act (EAC-CMA), 2004, which allows customs authorities in member states to dispose of uncollected or non-compliant goods after due notice and the expiry of statutory timelines. According to the Chairperson of the Rwanda Association of Petroleum Importers (ASSIMPER), Eric Herbez Mutaganda, many of the companies mentioned in the RRA directive list are no longer operational, while others handle very small quantities that may not warrant individual declarations. ALSO READ: Why gas retailers are charging different prices across Rwanda “The quantities involved are very small, with many not exceeding 5,000 litres, which may not be declared independently. In practice, companies often consolidate declarations or clear stocks in batches, depending on their operations,” he said. Mutaganda noted that fuel storage in bonded facilities typically follows much shorter cycles, with most products cleared within a month to a month and a half, and in some cases within 30 days, depending on logistics and market demand. “In normal practice, once products arrive, they are moved out of storage within a short period. Whether one month or a month and a half, that is the usual cycle. Fuel being kept for up to six months in the industry is not standard practice,” he said. He added that bonded depots already impose commercial penalties for overstaying stock beyond agreed timelines. “Once you go beyond 30 days, additional storage charges start applying. Depots themselves enforce those costs, so there is already a system of control in place,” he said.

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Tax authority orders suppliers to clear long-stay petroleum stocks