Integrated approach for import/export certificate processing for efficient cargo clearance

Abstract

This work envisages minimizing many shortcomings including associated delays in the cargo clearance process when the import and export certificate which is legally known as license/permit become applicable. Preliminary survey conducted revealed that there is undue delay. The work then systematically identifies the factors that hamper efficient and effective enforcement of such regulations in the import and export of goods in the Sri Lankan context. A questionnaire was circulated among a sample of 100 importers and exporters or their representatives in order to gather information on ground level practical problems faced by them. Existing laws and regulations as well as regulatory processes at several agencies were examined to identify the correct legal position and any existing automated solutions. Various authorities were interviewed in order to identify their requirements as well as the problems they face. It was found that in almost all the instances manual procedures are in use in the issuance of certificates (licenses/permits) and in subsequent debit/write-off steps introducing delays, duplications and poor control effects. The study shows that certain commodities require certificates from more than one regulatory agency for identical purpose. It is recommended that Automated Certificate Processing System be put into use integrated with the existing Customs Automated System. It is also recommended that the simplification and standardizing of procedures at regulatory agencies as well as at Customs need to be carried out before introducing an automated system. Proposed e-Certificate system will not only expedite the clearance process but also will prevent the certificates being misused. Much superior controls could be implemented as online information will be available for all regulatory agencies. Main goal of the proposal is to eliminate paper requirement and pave the way for paperless trade in Sri Lanka.