Cost-effective clearance of goods across borders to determine worth of Customs Paperless Declaration

The new Customs Paperless Declaration system, set to launch on October 1, presents a potential opportunity for Sri Lanka to modernize its trade processes, according to Mohamed Niyas, president of the Customs House Agents & Traders Association. However, Niyas cautioned that merely digitizing the existing Customs declarations may not necessarily lead to faster cargo clearance or lower costs for businesses.

The real bottleneck, he argued, extends beyond the absence of paper to a broader clearance ecosystem characterized by limitations of the ASYCUDA World system, excessive regulatory interventions, multiple approvals, physical examinations, manual interventions, and fragmented processes. He warned that unless these underlying constraints are addressed, there is a risk that the paperless initiative could merely digitize existing bureaucracy, leading to an inefficient process being transferred onto a digital screen.

For importers, exporters, and businesses reliant on imported goods, clearance efficiency directly impacts the wider supply chain. Delays at the border can create uncertainty for manufacturers, distributors, and retailers, while exporters face difficulties meeting delivery schedules when faced with held-up import inputs or export consignments.

Niyas argued that the success of the October 1 initiative should be measured by its impact on trade flows rather than the number of declarations processed electronically. He advocated for a shift towards a "process-less Customs" system, characterized by the elimination of unnecessary procedures and simplification of Customs declarations and approval workflows.

This includes improving the functionality of ASYCUDA World, greater use of risk-based inspections, better integration of Other Government Agency approvals, and the elimination of repetitive document submissions and physical endorsements.