Private sector welcomes new Customs Law, proposes acceptance of e-signatures

Welcoming the proposed new Customs Act which is set to replace the existing Customs Ordinance - one of the oldest in the world - key industry figures last week highlighted a wish list of changes they would like to see, including a much needed paperless process that would speed up transactions.

At a seminar organised by the Import Section of the Ceylon Chamber of Commerce, President of the Sri Lanka Shippers Council Sean Van Dort, while acknowledging the good work carried out by Customs officials, emphasised the need for electronic documentation to speed up transactions.

The present Customs Ordinance does not permit electronic signatures, he said, adding that the Shippers Council was now working with the legal draftsman to see how this could be facilitated.

“We want it to be generated from the system. We’re pushing Sri Lanka Customs to give us this speed of transaction. We’ve had excellent progress but because of this 200-year-old ordinance, there are bottlenecks,” said Van Dort.

The industry is pressuring the Government to change these rules, not to prune customs officials’ powers but to ensure a smooth trading and forwarding process, he said.

“We are working with Singapore, Dubai, they’re our competitors. If we look at the Indian trading and forwarding process, they do pre-clearance one month before the vessel’s arrival. Their documents are submitted to the Customs one month before. We don’t have that facility here,” said Van Dort.

Addressing Customs officials in the audience, Van Dort said that he appreciated the great work Customs had been doing to keep the country safe.

“It’s a tremendous step [taken] by the Government to see how to change these laws. Of course, not forgetting the work the Customs does. We always see the bad side. The good side is that they keep us safe, looking at past seizures of drugs, arms and ammunition,” he said. 

“We don’t want to belittle your role. We want speed. We want system generated customs procedures so we can get working,” he said.

Others speaking at the event endorsed the Government’s initiative to introduce a new Act which they said was carried out in consultation with the private sector, stating that it was of paramount importance in order for Sri Lanka to remain competitive in international markets. Speakers also emphasised the need for e-documents to be accepted with electronic signatures.

Among the highlights of the proposals in the draft Customs Law is a filing of goods deceleration where an importer is permitted to file a goods deceleration 72 hours before the arrival of a vessel electronically, saving costs of clearance caused by delays that are presently experienced.

Freight-forwarders, non-vessel operating common carriers shall also present the manifest of the cargo consigned to them no later than 72 hours before the arrival of the vessel.

Anyone dissatisfied with a decision made by Customs regarding classification, the applicable rate of duty, the origin of goods, valuation or determination of other levies may pay the duty and other fiscal levies under protest, following which he or she may lodge an appeal to the ADGC (Dispute Resolution and Public Grievances) for a resolution within 30 days. If the ADGS’s decision is unsatisfactory, he or she may appeal to the Appellate Tribunal set up in Customs.