SME apparel exporters to be linked to Customs electronic system

In a significant development for Sri Lanka's apparel industry, for the first time, Sri Lanka's SME apparel exporters are to be linked to the much awaited global customs electronic system. The dazzling result being the total realm of apparels, Sri Lanka's topmost export earner, will be able to migrate to the global electronic customs regime.

"If our current preparations continue as planned, we can link our SME apparel exporters shipments to the ASYCUDA global e-system by May 2013. This could enhance our SME apparel sector exports thereby enhancing our $2.8 bn apparel volume, said Rishad Bathiudeen, Minister of Industry and Commerce.

The SME apparel exporters themselves requested Minister Bathiudeen's Ministry of Industry and Commerce to take new initiatives in this regard and as a result, more than 220 registered SME apparel manufacturers would benefit from ASYCUDA's apparel export module to be commenced by the Industry and Commerce Ministry in May 13.

In 2012, Sri Lanka's apparel exports recorded $ 2.83 bn earnings of which $1.53 bn was from the US and $ 1.86 bn was from the EU despite the challenging situation in these segments. World's third largest retail giant TESCO is directly purchasing from Sri Lanka annually to the tune of $ 100 mn. In Y2012, 71 SME garment exporters shipped $ 46.7 mn apparel from Sri Lanka, showing strong unrealised growth potential they have. Among the leading such exporters were Crest Fashion Ltd, Queens Work Wear and FNTZ Garments.

ASYCUDA developed in Geneva by UNCTAD, is a computerized customs management system which covers most foreign trade procedures and handles manifests and customs declarations, accounting procedures, transit and suspense procedures. It operates on micro in a client server environment under UNIX and DOS operating systems and RDBMS Software.

Industry Ministry's initial implantation cost in this global system is a low amount of $15000.

"The current Proposed Shipment Declaration (PSD) format used by SME apparel exporters will change to electronic submission using the power of the Web after May 13 said an official of the Industry Ministry who detailed the process," he said.