Frontier Logistics performance in Sri Lanka-The role play of the Customs

Lalith Edirisinghe1, Sarath.Jayathilake2

1 CINEC Maritime Campus, City Branch, N0.15, Kinross Avenue, Colombo, 04 Sri Lanka

2 N0.117/30, Ananda Rajakaruna Mawatha, Colombo 10, Sri Lanka

1 <Lalith.edirisinghe@gmail.com>, 2< sarathjayatilake251@gmail.com> (1 correspondence author)

Abstract- Sri Lanka (SL) is expected its economic growth achievement through five hubs concept –namely, Maritime, Aviation, Commercial, Knowledge and Energy Hubs. SL even now serves as an effective hub for maritime goods transport and air-passenger transport in the southern sub-continental region, drawing on its geographical and economic advantages primarily due to the location advantage. However the county’s logistics performance plays a major role in above hub concept especially with respect to Maritime, Aviation and Commercial hubs. Therefore improving logistics performance has a significant importance in the current context. This could never be achieved without highly efficient, modernized Customs administration in the country, which performs the agency and regulatory functions of the state, at the frontiers.

The study draws the literature to ascertain the role played by Customs with respect to a country’s economic growth, Logistics in particular. World Bank’s Logistics Performance Indicators (LPI) analyses six components when determining a country’s LPI rank. i.e. The efficiency of customs and border management clearance; The quality of trade and transport infrastructure; The ease of arranging competitively priced shipments; The competence and quality of logistics services; The ability to track and trace consignments; the frequency with which shipments reach consignees within scheduled or expected delivery times. While the customs role as a border management organization is explicit the study also draws its attention to the knowledge about Customs functionality by the respective “stakeholders” Further the study analyses the Revised Kyoto Convention (RKC) ,the data of The Global Competitiveness Reports of World Economic Forum, United Nations, World Customs Organization, Doing Business Reports of The World Bank And The International Finance Corporation. Depth interviews have been conducted with 3 industry/commerce personnel and 2 senior officers of Customs and Board of Investment of Sri Lanka.

The intensifying global interconnectedness make it vital for the respective countries to cross their borders, thus customs administrations will be increasingly important for managing the impact of the changes at the border. A solid and modern legal framework is the foundation of effective customs operations. This legal framework bench marking should be based on internationally accepted standards and best practices as set out in the RKC which provides important guidelines for the design and operation of a modern and efficient customs organization. In order to perform the important role of customs authorities, the officials should process high level of skills and knowledge. They represent the government, to facilitate and regulate international trade, and to achieve national policy objectives through the Strategic Risk Management, Compliance Management and Change Management which considered being relatively weak in many countries. Therefore customs reform, modernization or re-engineering considered a priority in many countries and implementation of change management is needed especially in Sri Lanka due to rapid development

expected in the means of Hub status. On the other hand to enable the users to achieve the full benefits, private sector counterparts need to be included in the process and incorporate their inputs. Key words: Customs, Logistics, Revised Kyoto Convention

BIOGRAPHY OF AUTHORS

2Author is a lecturer in International Trade, logistics and shipping of the CINEC Maritime Campus, Sri Lanka. His research interests are International Trade, Transport, Shipping and Logistics. He is presently reading for his PhD in Transport Planning and Logistics Management. He counts more than 25 years working experience in the shipping management. Author is a Chartered Member of Chartered Institute of Logistics and Transport and a Chartered Marketer 9@010/12). He is presently serving as the Head of School at the City Branch of CINEC Campus.

2Author was the Director General of the Sri Lanka Customs from 2002-2010. He was a member of the Presidential Commission on Taxation 2009-2010. Served as Ex officio Director in the Boards of Directors of the Sri Lanka ports Authority, National Gem and Jewellery Authority, National Dangerous Drugs Control Board etc. Presently the regional representative for the Centre for Customs Studies of the University of Canberra and also as a resource person of the CCES for training conducted for the officials of Customs Administration in East Timor.