Sri Lanka pushes apparel exports, successfully links to global e-system

•  Sri Lanka’s SME apparels finally on ASYCUDA
• At a low investment of around US$ 15,000
• “Much-needed facility could enhance exports”: Rishad

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.

Minister of Industry and Commerce Rishad Bathiudeen revealed said: “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 US$ 2.8 billion apparel volume.”

The SME apparel exporters requested Bathiudeen’s Ministry to take the initiative in this regard, which would benefit more than 220 registered SME apparel manufacturers from ASYCUDA’s. The apparel export module organised by the Industry and Commerce Ministry will be held by May 2013.

In 2012, Sri Lanka’s apparel exports recorded US$ 2.83 billion earnings of which US$ 1.53 billion was from the US and US$ 1.86 billion from the EU, despite the challenging situation in these segments.

World’s third largest retail giant TESCO is currently purchasing annually from Sri Lanka directly, to the tune of US$ 100 million. In 2012, 71 SME garment exporters shipped US$ 46.7 million apparel from Sri Lanka, showing their strong and unrealised growth potential. Among such leading exporters were Crest Fashion, Queens Work Wear and FNTZ Garments.

ASYCUDA developed in Geneva by UNCTAD, is a computerised 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 US$ 15,000.

“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 2013,” an official of the Industry Ministry who detailed the process said.

“The BoI apparel exporters have already been integrated to ASYCUDA. We are taking the other segment of apparel exporters to this global system, not only cost savings in terms of time and money, but speedier clearance and paperless process are among the accruing advantages,” he said.

Once they are linked, the SME apparel exporters will not be required to submit their export shipment documentations PSD format, in multiple copies to various agencies such as Industry Ministry as well as Customs.

Instead, by a single click under ASYCUDA, one could submit all the agencies at once, immediately and receive export shipment clearance thereat.