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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