Importers Section outgoing Chief recaps success, lists challenges

Monday, 28 July 2014 00:00 - - {{hitsCtrl.values.hits}}

The Ceylon Chamber of Commerce Import Section held its 78th Annual General Meeting recently with Secretary Ministry of Industry and Commerce Anura Siriwardena as the Chief Guest. The outgoing Chairman Kevin Edwards in his speech recapped some of the recent successes as well as listed future challenges. Here are excerpts from his speech. Year of mixed fortunes The year under review was with mixed fortunes. The economy rebounded to a high growth expanding by 7.3% in 2013 compared to the 6.3% growth recorded in 2012. The country achieved this high growth in 2013 amidst a challenging domestic and external economic environment. Meanwhile, the stable macroeconomic conditions that prevailed in the country, with relative low inflation and interest rates together with a stable exchange rate impacted positively on growth.

Ports activities showed a turnaround, despite the challenging global environment. The gradual recovery of foreign trade, attraction of new shipping lines, port efficiency and productivity improvements helped the turnaround of port activities in 2013. Container handling grew by 2.8% to 4.3 million TEUs in 2013 from 4.2 million in 2012. A growth of 3.4% was recorded in transhipment cargo, when compared to the negative growth of 1.5% recorded in 2012. A total of 66.2 million MT of cargo was handled which is an increase of 2.0%. Although the number of vessels arriving in Colombo had declined the gross tonnage of containers ships that called during the year increased by 0.6%, which is evidence of lager ships arriving and the future looks bright. With the opening of the bunkering facility in Hambantota, it is on record that this facility has generated an income of Rs. 750 million supplying 5,500 MT of fuel in its first three weeks of operation. Concerns During the year under review, there were a few issues of concern. All private pharmaceutical importers came in for a shock in December 2013, where it was necessary that all pharmaceutical items be imported in refrigerated containers in order to maintain the required temperature. However this decision has now been temporary withheld until September 2014. It is a very well-known fact that any importer of Pharmaceutical will not be able to import such shipments on LCL basis, in refrigerated containers as no consolidated LCL refrigerated shipments are imported into Sri Lanka at present. However, on the contrary if it does commence due to the demand, then the Port of Colombo will have to have a refrigerated warehouse in place for such goods. The next two option would be to import a small quantity on FCL basis or Air Freight such cargo, but at what cost and who will pay for it at the end. We urge the authorities to do a comprehensive study of the storage and transport requirements for pharmaceutical products prior to regulating same. The much awaited, automation of the Sri Lanka Customs Import and Export documentation process gradually falling into place. With the establishment of the 24x7 Centralised Cargo Processing Facilities for export cargo, we are confident that all export cargo will be fast tracked. We are aware of the pilot project of grading importers in underway and hope that this privilege will be in place soon and such importers will be able to enjoy the benefits that will be offered by the Sri Lanka Customs. With the establishment of the Director General Of Merchant Shipping under the Ministry of Highways, Ports & Shipping, there has been a new paradigm in the shipping industry for which all importers and exporters are every grateful. The Director General Merchant Shipping has taken the bold step by requesting all shipping lines and forwarders to file in their charges with his office. This has eliminated the so called ad-hock charges which all importers were compelled to pay previously. Consulting importers The Free Trade Agreement with China will soon be finalised and we are told that the main focus will be initially on exports. Foreign exchange earnings are expected to grow with products such as garments, fruits, gems and jewellery with the concessions that will be offered to the Chinese importers. However, we are very confident that the authorities will be well focused with the negative list of Sri Lanka, so as to protect local industries. We, as members of the Imports section, take this opportunity to appeal to the authorities facilitating the import trade to have an open consultative mechanism with the trade associations, whereby such inputs could be obtained to improve the effectiveness and efficiency of the operations. Dear members, it was and will be our commitment to you that the Imports Section will be a platform to support our member companies by providing the necessary guidance and advise and ensuring a level playing field or a win-win situation.