CIF - C17 Gold Transactions in East Africa Community (EAC) Countries
Uganda & Kenya
Updated 01-Sep-2025
If Gold originates in an East African Community (EAC) Country and is under T1 and/or designated for a CIF transaction, the buyer can be paid in full at the point of shipping origin after smelting and testing IF EITHER of the following are TRUE:
1. The purchase funds originate from outside of the country the gold is being shipped from. Seller can be paid IN FULL after the gold is smelted and tested using funds from accounts originating from outside of the country where the testing and smelting take place.
OR
2. The buyer issues to the seller a certified copy of Form C17, which certifies that the gold is exported.
*Description of a CIF - C17 Transaction in East African Community (EAC) Countries*
If a seller removes in transit gold from customs, the seller must sign a security bond. The seller must return the gold within a certain time period, OR it is assumed the seller sold the gold locally and the seller will owe local taxes.
Assume the seller takes the gold out and sells it. If the seller sells the gold to a buyer that immediately exports the gold, the buyer can issue to the seller a certified copy of form C17. The seller can present the C17 form to customs, and the seller's security bond is discharged. *This is the same as if the seller returned the gold to customs.* The seller will owe NO LOCAL TAXES. As far as customs is concerned, this is EXACTLY THE SAME as selling the gold CIF and being paid later.
This CIF-C17 transaction is clearly a better offer than typical CIF sale, the seller is paid immediately with no waiting, AND the seller gets his full CIF price owing NO LOCAL TAXES. The offer can be verified by the seller's attorney.
My buyer is exporting the gold immediately. If it is determined that the gold DOES carry an "IN TRANSIT" designation, a certified copy of Form C17 confirming that exportation of the goods has taken place shall be given to the seller for the purposes of security bond cancellation, after the buyer exports the gold. Completion of the sale serves as a full transfer of ownership and a full transfer of the responsibility to export to the new owner, the buyer. SELLER WILL OWE NO LOCAL TAXES. For more information on this, see East African Community export requirements at https://www.eac.int/customs/customs-procedures/export-processing-zones