South Sudan and Uganda have signed a memorandum of understanding aimed at strengthening customs cooperation, easing cross-border trade and tackling tax evasion along their shared border.

The agreement was signed on Tuesday by the South Sudan Revenue Authority (SSRA) and the Uganda Revenue Authority (URA).

It is the third such deal between the two institutions and introduces measures covering digital interoperability, joint facilitation of transit trade, information sharing and capacity building.

URA Commissioner General John Musinguzi Rujoki said the MoU would reinforce the enforcement of an electronic permit system and help prevent the diversion or rerouting of goods destined for South Sudan.

“One of the new areas is the enforcement of the use of e-permits, which has greatly improved revenue collection in South Sudan, but also improved controls on goods that go to South Sudan and come back to Uganda without paying the right taxes,” Rujoki stated.

He added that the measures would protect South Sudan’s tax base while allowing Uganda to curb the dumping of goods on its domestic market.

Both authorities said the agreement would also encourage greater compliance among businesses and create a more predictable environment for cross-border traders and transport operators.

SSRA Commissioner General Ambassador Moun Deng Ajuet noted that the two sides had put in place mechanisms to resolve operational challenges that may arise during implementation.

He said the expanded cooperation includes joint enforcement of the electronic permit system to track transit goods and prevent illegal rerouting.

Some measures, including an updated procedure for changing cargo destinations, will take effect immediately, while the overall impact of the agreement will depend on how effectively it is applied at border points.