Transcript Trade Facilitation Issues in WTO and Sri Lanka’s Perspectives

Trade Facilitation Issues in
WTO - Sri Lanka’s Perspective
Presented by
V. S. Sidath Kumar
Deputy Director of Commerce
Department of Commerce
Colombo
Sri Lanka
02nd May 2006
SRI LANKA’S PERSPECTIVE
ON TRADE FACILITATION
CONTENTS





General Background
National Focal Point for Trade Facilitation
Customs Procedure
Fees and Formalities on Importation and
Exportation
Release and clearance of Goods

Matters Related to Goods Transit
Publication and Availability of Information

Conclusion

Sri Lanka’s Perspective on TF
General Background





Sri Lanka is an island in the Indian Ocean
with an area of 65,610 Sq. Km. and a
total population of 19.6 million
GDP grew by 6% in 2005
GDP Per capita income was US $ 1,197 in
2005
Agriculture,
Industry
and
Services
account for 17.2%, 27.0% and 55.8% of
the GDP in 2005 respectively
Exports and Imports stood at US $ 6,347
million and US $ 8,863 million in 2005
respectively
General Background (Con’d)
Main exports: tea, rubber, coconut, spices,
textiles and garments, ceramic products,
footwear, gem and jewel
lery, petroleum products
Main
imports:
Petroleum,
fertilizer,
chemicals, textiles and clothing, machinery
and equipment, building materials, transport
equipment, rice, sugar, wheat
General Background (Con’d)
Sri Lanka follows a liberalized
market oriented trade policy since
1977
Sri Lanka is a founding member of
the GATT/WTO
National Focal Point for TF




Sri Lanka, together with WTO member countries’
governments and other international organizations has
recognized the high significance of TF in improving
competitiveness
Department of Commerce (DOC) is the National Focal Point
in Sri Lanka for TF related activities under the WTO
Negotiating Group on TF
DOC is currently working towards TF measures as defined
by WTO (July Package) according to GATT 1994 Articles V,
VIII and X (freedom of transit, fees and formalities, and
publication and administration of trade regulations
respectively)
A Pilot workshop on TF was held in Sri Lanka in June 2005
in association with the Sri Lanka Customs and in
sponsorship of WCO and WB
National Focal Point for TF(Con’d)

The Pilot Workshop Aimed at:
a) Creating a real time analysis and reporting
link between Geneva based negotiators and
capital based specialists and stakeholders
b) Establishing
an appropriate coordination
mechanism within the capital
c) Creating awareness among the government
and semi-government agencies, private sector
and members of the civil society about the
importance and benefits of TF
National Focal Point for TF(Con’d)



After the Workshop, the DOC established a CoCoordinating
Group
(Core
Group)
with
representatives from key stakeholders such as
Department of Customs, Department of Agriculture,
Department of Animal Production and Health, Board
of Investment, Sri Lanka Ports Authority, Sri Lanka
Standards Institute and leading Chambers of
Commerce in Sri Lanka
Purpose: to look into every possible avenue in the
implementation of TF related works.
The Core Group has met several times at the DOC
to formulate Sri Lanka’s position at the WTO
negotiations
National Focal Point for TF(Con’d)




In the context of OECD Global Forum on Trade Series –
A global Forum on TF was held in Sri Lanka in Oct. 2005
The Forum was attended by 43 countries and senior
officials from OECD, WB, ESCAP, WTO, WCO and
UNCTAD
Aim: to bring together the representatives from the
government, business, research institutions, civil society
and international organizations to discuss implications of
ongoing negotiations on TF for DCs
Forum focused on benefits of TF at country level costs of
introducing and implementing TF measures, how to
design appropriate technical assistance and capacity
building programs, how to ensure a proper match
between commitments and capacities
Customs Procedure
Automation of Processing of Customs Goods
Declaration
- Sri Lanka Customs established an Automated Data
Processing Unit in 1993
- Since 1994 entry lodgment and assessment is done by
ASYCUDA (Automated System for Customs Data) - A
computerized customs management system which covers
most foreign trade procedures.
- The system handles manifests and customs declarations,
accounting procedures, transit and suspense procedures.
Customs Procedure(Con’d)
-
Migrated to ASYCUDA ++ in 1999. This
has enabled the entire accounting and
statistics of customs recoveries done
through the computerization process
- The Customs ADP (Automated Data
Processing) Division has upgraded their
hardware and software to handle the
future situation
Customs Procedure(Con’d)
 More
staff are trained locally and
internationally to handle Oracle Data
Base Management, Unixware
Operating system and also data
communication and networking
 Sri
Lankan Customs is looking forward
to implement the more upgraded
version of Asycuda called Asycuda
World in the near future
Functions of the ADP
(Automated Data Processing )






Maintain and upgrade of ASYCUDA system,
Cargo Control System, Motor Control System
Development of the software related to Customs
functions
Expansion of the system to non computerized
areas of the Department
Addressing day to day problems of the system
Provide training to the customs staff and other
stakeholders
Registration of importers and exporters into the
system
Functions of the ADP (Con’d)









Provide technical assistance to the other divisions of the
Department
Recommend future developments to the other
administration
Provide and share information with other Departments
Provide information regarding traders to other
organizations for the purpose of investigations
Provide training to Customs and BOI officials on
ASYCUDA system
Coordination with EDI service provider and other IT
divisions of the other Departments
Provide statistical reports to Ministries, traders and the
Central Bank
Maintain of Customs web site
Screening of the data base and detect revenue frauds
Fees and Formalities on
Importation and Exportation












General disciplines on fees and charges on importation &
exportation are partially implemented
Non discrimination prevails on fees and formalities
Periodic reviews and reduction of formalities are in practice
Customs Declaration (CUSDEC) is in uniformity with UN lay out key
Processing of customs goods declaration is automated
Single window is partially operated
Customs brokers are not mandatory for baggage clearance
Border agencies cooperation is in practice
Objective criteria for tariff classification is in operation
Pre-shipment inspection does not prevail
Consular transaction does not prevail
Licensing required only for certain items
Release and clearance of
Goods





Pre-arrival clearance scheme is in operation for
courier cargo
Separate express declaration processing is done
for perishable/urgent cargo
Post clearance audit scheme has been
introduced but needs development
Risk assessment based selectivity scheme is in
operation but needs development
Simplified goods declaration is used for postal
cargo clearance
Release and clearance of Goods ( con’d)



Online payment system is available in a
limited scale
Advance ruling on classification of goods
are issued on individual requests and also
publish in customs web
Importers/exporters have the right to
appeal
Matters Related to Goods Transit
1. Non- Discrimination prevails
2. Discipline on Fees and Charges
 Partially done by some agencies
 Exchange of information is in practice on requirements
3. Disciplines on Transit Formalities and
Documentation Requirements
Simplified clearance procedure is in operation
4. Improved Coordination and Cooperation
In practice
5. Operationalization and Clarification of Terms
Guarantees are accepted in the clearance process
Publication and Availability of Information
1.
2.
3.
4.
5.
Publication of Trade Regulations
Some of stakeholders are in the process of web
publication. All the stake holders are willing to publish
trade regulations in their respective webs.
Publication of Penalty Provision
Stake holding agencies currently publish penalty provisions
in the government gazette & some instances publish in
institutional web sites
Internet Publication
Most organizations provide limited information & they are
in the process of publishing them in the web.
Notification of Trade Regulations
In general not in practice except in few instances.
Establishment of Enquiry Points
Stake holders currently maintain their own information
centers
CONCLUSION
In order to formulate and implement areas
covered under the TF,
need:

1.Technical assistance and capacity building
2. Funds for infrastructure development
3. Public – private sector collaboration
4. Regional trade facilitation and customs
cooperation
5. Longer time period to institute the TF measures
as a means to make S & D treatment effective
and operational