www.roofingsgroup.com www.roofingsgroup.com

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MAINTAINING AEO CERTIFICATION

Presented By:

Oliver J. Lalani Executive Director

ROOFINGS GROUP

15 March 2018

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INTRODUCTION TO ROOFINGS GROUP

!   1,700 employees!!   +/- 200,000 tons of sales!!   35% market share!!   Largest tax payer in the steel sector!!   Top 20 tax payer in the country!

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1994

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2010 2013

Issued a license by the Uganda Investment Authority (UIA) and commenced operations with capital of USD2m

1997 2008

2012

Commenced exporting to Rwanda, DRC, Burundi and South Sudan Commissioned

Galvanised wire complex

Started planning RRM expansion

2013 - Commissioning of cold rolling & coil coating complex

Namanve Plant Lubowa Plant

Commissioned Roofings polypipes

Pilot Project started for AEO Certification

1997-2008 2016 Achieved AEO status RRM

Achieved AEO status Roofings Limited

2009

A TIMELINE OF KEY EVENTS

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BACKGROUND

!   RoofingsGroupisaproudmemberofAEOforbothRL&RRM!   Ourentryintotheprojectstartedearlyin2011,culminaAngintoonfirmaAon/approvalin2013,&2016respecAvely.!   Thisfollowedourhistorictaxprac0ceofcomplianceandtransparency.!   Amongthefirstfewinthepilotbatch

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BENEFITS

!   Self-BondManagement(inhousereceipts,manifesAng,Entry,DeclaraAon&exit)

!   Pre-arrivalclearancebecamearealityintheAEOprogram

!   ReducedAmeofdeliveryofourimportsfrom20daystojust4daysbyroad.BestdeliveryAmewas5daysforRail.

!   Prioritytreatment/documentaAonprocessinginDPCaRertaxpayment.

!   Reducedpaperwork(about60%)---onlinesystem.

!   PreferenAaltreatment–eachAEOisallocatedaClientManagercreaAngstronglinkwithCustoms/URA.

!   ObtainingTaxClearanceCer0ficates(TCCs)fromDomesAcTaxesDepartmentinamaMerofhoursfrom3days.

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MAINTAINING AEO CERTIFICATION •  ThereisaclearcompliancemanualindicaAngthebasicrequirementsformaintainingcerAficaAon;including,butnotlimitedtothefollowing:

!   Listofimported&exportedgoodsclearlyindicaAngthedescripAon/tariff/shippersnamesandotherrelevantinformaAon

!   DeclaraAonsonthesystem!   AccuracyofcomputaAonintaxes!   PresentaAon/availabilityofsupporAngdocumentstoourdeclaraAons!   ToprovideappropriateinstrucAonstothirdparty!   EnsurethatpreferenAalratesofDuAesareappliedfortheneighboringcountries(export)!   IdenAficaAonoferrorsshouldbedisclosed/sharedwithcustomsASAP!   ClearrecordsavailableforalltransacAonsinourERPsystem!   InternalAuditorfullydesignatedtomonitorandenforcecontrolswithinthecompany!   InformaAonflowwithcustomers/opencommunicaAon

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!   Accuratebondmaintenance!   Stackcardmaintenance!   CleardemarcaAon!   Fullyupdatedelectronicbondregister!   T1checks/movementofcargoEnforcement:! Spotchecksandannualauditsareconductedtoensurethattheaboveareenforced! RightsRemovaliffoundinbreechofcompliancecertainrightsmaybewithheld/re-routede.g.DeclaraAoncanbedonebyAEOlicenseebutassessmentcanonlybedonebycustoms

!  Discussionswithclientmanagerstoensurethatadequateguidanceisgivenincaseofmistakes!  Extrememisconductresultsintotalwithdrawalofthelicense

MAINTAINING AEO CERTIFICATION

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CONCERNS/ CHALLENGES !   Customs/URAtostrivetohavefullSystemsforinfrastructuralDevelopmentinITManagement.! Asycuda-worldSystemsinstabilityduetonetworkfailures.!   IncreaseAEOplayers(e.g.Transporters,Agencies,Warehouseoperators,etc)!   TransmissionofdatabetweensistercustomssystemsincaseofExports intotheRegionwithSingleCustoms

Territory(SCT).ThiscausesdelaysinreleaseofexportsespeciallytoBurundi!   ExportsManagementunderURAcontrol(considerweekenddeploymentsincebordersoperate24/7).

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SUGGESTIONS FOR CONTINUAL IMPROVEMENT !   JointtrainingswithURA/Customsteamstoappreciatechallengestogether-CommonHumanResourceCapacity

building.!   FasterdecisionmakingonthesideofURAStaff.!   ActualizeextensionofbothCustomsBonded&Agencylicensefor3years.CurrentlywesAllhavetorenew

annuallyalthoughtheprocessesarewellimproved.!   Improveregionalcustomsinterface.

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CONCLUSION

IntroducAonofAEOhasrealized:!   simplificaAonofCustomsprocesses,!   reducedtransitAme!   increasedturnaroundAmeforlogisAcsserviceproviders!   improvedregionalcooperaAon.

CommendURAfortheirconAnuousinnovaAonandcommitmenttoenablingamoreconduciveenvironmentinUganda