Comparative analysis of performance of authorised economic operator firms and non-authorised economic operator firms: a case of Uganda

Abstract

This study examined the comparative analysis of Authorized Economic Operator firms and non- Authorized Economic Operator firms taking Uganda as a case study. The study assessed the comparison on the firm’s clearance time of goods at customs, trade volume and the customs revenue paid to the government. The study used import and export data extracted from Uganda revenue authority (URA) and the analysis involved univariate, bivariate and multiple logistic regression. The results show the firms in Uganda that voluntarily sought and achieved AEO accreditation from URA experienced much reduced clearance time compared to peer firms that are not AEO accredited. The results further indicated that AEO accredited firms in Uganda were experiencing exponential growth in trade compared to the peer firms that are not AEO accredited. Finally, the results show the quantum of tax paid to government by AEO accredited firms was significantly higher than that paid by the non-AEO accredited firms. Based on the results, we conclude that the AEO program in Uganda has led to significant reduction in clearance time and increased trade of the accredited firms and government tax revenue. This study recommends that the government of Uganda through URA should continue promoting and encouraging the international trade community in Uganda to take up AEO accreditation.