Sarath.JayathilakeLalith Edirisinghe

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CINEC Maritime Campus

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Assess the role played by Customs in the current Logistics context

Explore how RKC help design and operation of a modern and efficient customs organization

Propose how Customs reform, modernization or re-engineering achieved through recommendations of RKC

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1. Connecting to Compete Reports (LPI) of the World Bank

2. Doing Business Reports-The World Bank and the International Finance Corporation

3. The Global Competitiveness Reports of World Economic Forum

Depth interviews have been conducted with 3 industry personnel and 2 senior officers of Customs and Board of Investment of Sri Lanka

Revised Kyoto Convention (RKC) World Customs Organization Reports

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LP is the key in Maritime, Aviation and Commercial hub concept

SL needs more foreign investments

Investors usually refer to Logistics Performance Indicators (LPI) including Customs

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Customs is one of the key components out of six LPI components

It refers to the Efficiency of the Clearance Process Speed, Simplicity Predictability of formalities

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Substantial improvements reflects in the Customs component with respect to Sri Lanka

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Indicator Rank (out of 155 countries)

2012 2010

Customs 71 143

Trading across Borders Documents necessary to I/E (including

Customs clearance documents) Time required to I/E (including Customs

clearance, and inspections) Cost required importing or exporting (including

Customs clearance, and inspections)

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Indicator Rank2013 2012 2011 2010 2009 2008

No of countries considered 185 183 183 183 181 178

Trading across borders 56 53 72 65 66 60

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Rank

Indicators 2008–2009 2010-2011 2011-2012 2012-2013

No of Countries considered 134 139 142 144

Prevalence of trade barriers 97 103 105 101

Trade tariffs 88 113 125 124

Burden of customs procedures 71 66 54 59

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Substantial improvements reflects in the Customs component with respect to Sri Lanka

“The role of Customs in the world continues to evolve” (Harrison, et al., 2009)

Officials of customs represent the government

They facilitate and regulate international trade, and to achieve national policy objectives through Strategic Risk Management (SRM) Compliance Management (COM) Change Management (CHM)

SRM;COM; & CHM are relatively weak in many developing countries

Therefore customs reform, modernization or re-engineering considered a priority

Private sector inputs need to be included in the process to achieve full benefits

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SL expects a rapid increase in Logistic activities

Proportionate increase in resource(Customs) not feasible

In 1998, Customs Port Director (United States of America) Susan Parker faced similar situation

Risk Management Process matrix for SL

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As directed in the RKC

Establish fully functional Customs offices at new locations (Sea Ports, Dry ports, Airports,) with competent staff

Maintain formal consultative relationships with the trade

Accept payment of duties and taxes in forms other than cash

Travellers cheques Money orders Cheques (in specified circumstances) Bonds Credit cards Securities, etc.

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Customs to adapt to modern systems to obtain pre-arrival information on goods

Expedited examination process

Ensure that inspections by all Government agencies are coordinated with the Customs examination

And, if possible, conducted at the same time

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RKC provides (in some circumstances), Customs may even release the goods before the formalities have been completed

With respect to Regional Trade Agreements (RTA), GoSL should define effective customs procedures that are favourable to all participating countries

Thank you……………

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