Following the public outcry at the recently introduced controversial policy on luggage handling at Kigali International Airport, authorities have revised the policy.

Now, instead of all the arriving checked-in luggage being transited through Rwanda Revenue Authority (RRA)’s nearby bonded warehouse (Magerwa), only taxable products will be affected.

The new decision was reached during a crisis meeting convened by the Civil Aviation Authority (CAA) at the airport earlier this week. It was attended by among others representatives from RRA, Police, courier companies, Rwandair, Kenya Airways and Ethiopian Airlines.

However, all the arriving luggage, whether checked-in or hand luggage, will remain subject to a physical screening exercise, to identify taxable products.

The meeting agreed that all goods with monetary value not exceeding Frw100, 000 and not for multiple entries will not go through the cargo terminal and will thus not be charged for handling services.

That means that any product valued at over Frw100,000 will be regarded as a taxable good and therefore be channeled to the cargo terminal (Magerwa warehouse), where the passenger will also have to incur handling costs.

"We had to convene as stakeholders and come up with an arrangement favourable to RRA, passengers as well as airline companies," CAA Director General Joshua Mbaraga, who chaired the Monday meeting, said.

The measure is a brainchild of RRA in its effort to curb tax evasion resulting from what the agency viewed as loose control measures at the airport.

According to RRA Commissioner General, Mary Baine, the decision followed a survey around Kigali City during which it was established that some of the goods that found their way on shelves without taxation had entered into the country by air.

She said such goods especially jewelries were brought in through courier services.

"We are trying to address the problem; we realized passengers order taxable products through courier companies like DHL and FEDEX to avoid taxes," Baine explained.

In addition, the head of RRA’s Customs department, Eugene Torero, said the move to transfer certain items to the cargo terminal will help clean up the passenger terminal previously clogged by unclaimed commodities.

"It is not a strange practice only that it was not well understood," he said in reference to the now revised policy.

Besides taxes which will certainly vary depending on the type and value of the product in question, a passenger will also have to part with Frw5,900 for each luggage (regardless of its weight) recovered from Magerwa warehouse.

Apart from inconveniences, owners of the non-taxable products will not be required to pay handling costs. Magerwa boss Louis Benimana had insisted that nobody would pick their luggage from the bonded warehouse without paying for handling services whether their products were taxable or not.

That position had attracted widespread criticism and anger from passengers and courier companies, which had already threatened to withdraw their services to the airline industry.

The manager of Rwandair Cargo and Airport Operations, George Rudakubana, said of the revised policy: "I am impressed that the directive has been reviewed."

CAA’s Mbaraga had previously denied knowledge of the new guidelines describing them as "news to me" although he is the one who chaired the meeting that came up with a revised policy.

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