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Customs geared for trade facilitation

The Department of Customs has major initiatives and partnered measures that would result in trade facilitation benefit, Customs Sources said.

Major reforms of Sri Lanka Customs towards trade facilitation include: Sri Lanka Automated Cargo Clearance System (SLACCS), implementation of the WTO / GATT Valuation Agreement and Pre clearance of Documents.

Sri Lanka Automated Cargo Clearance System (SLACCS): The Ministry of Commerce and Consumer Affairs has initiated an implementation program to set up an Automated Cargo Clearance System through Electronic Data Interchange (EDI) to start in July 2003. Customs is in the process of making the necessary computer stimulation to incorporate the automatic selectivity to subject shipment for screening on a risk analysis management method. This will allow bona fide entities with a good track record and low risk cargo profiles to take delivery of cargo with no examination under Green Channel.

This would also allow importers to Track and trace their status of the shipment.

Implementation of the WTO Valuation Agreement

WTO Valuation Agreement (Article VII of GATT 1994) was implemented by Sri Lanka Customs from January this year. A Customs (Amendment) Act No.02 of 2003 was passed by parliament in this respect.

A simplified procedure at the Customs Import declaration processing centre at Colombo sea port (Long Room) was introduced along with this implementation. This procedure, coupled with WTO valuation methods, would identify and facilitate the genuine importer while frauds are handled by the risk management.

Thus it became the major trade facilitation exercise undertook by Customs in recent years. As a result, Customs valuation is done based on documentation only. Physical examination for the valuation purpose has been discontinued. This permitted faster cargo clearance especially in the area of FCL consignments.

Today declared Transaction value, is accepted in 90% of the customs import declarations submitted and processed. Based on a risk analysis program at least 10% of the entries are referred for detail analysis on valuation prior to the clearance. This is to combat the suspected valuation frauds. However clearance of 90% of the entries, subject to post audit verification, has been a major success for this program and importers are immensely benefited. A Post Clearance Audit Branch (PCAB) has been established to scrutinize the declarations after clearance and for periodical auditing at consignee's premises.

Zero Time Clearance

Customs now accept declarations early to ships arrival on Import Inward shipments allowing Importers to lodge their declarations and to take delivery on day of ships arrival. This requires the ship agent report their manifest and the issue their delivery order two days prior to the arrival of the vessel.

Monthly meetings of the DG Customs and senior staff of Customs with representatives of trade chambers, customs brokers and Shipping Agents are at present held to identify various issues. Quick solutions are found through discussions. A time frame is worked out in sorting certain issues that need further studies. This process ensures dialogue and build close relationship between the stakeholders and Customs leading to Customs transparency.

The Customs Chief has plans to expand and widen the scope and set up a forum for discussion to include other public and private sector representation who are involved in the External Trade and its support Service supporters to result in efficiency in the entire Cargo Clearance process on an "end to end" basis.

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