Chaminda Saman RathnayakeAssist. Superintendent of CustomsICT DivisionSri Lanka Customs

Introduction to Sri Lanka Customs

Main Functions of Sri Lanka Customs includes:

Collection of taxes, duties and other levies as imposed by the government

To ensure proper enforcement of tariff, trade and social protection policies of the state

To ensure flow of passenger, goods and related means of transport

Customs Systems and Procedures

Risk Management A balanced and modern Customs administrationA measure for controls and trade facilitation Allows compliant traders to move their goods more quickly through Customs controls: fewer documentary checks : physical examinationsIdentify illegitimate tradeProvides an opportunity for the Customs administration to undertake more targeted selection : speedier clearance of goods

The Elements of the Regulatory Compliance Management Framework which Helped to Detect the Offence

Desk auditsTransaction-based auditsSystem-based audits

Fig Flowchart for System-Based Audits done by ICT Unit of SLC

Central Cargo Examination Division At present there are three container cargo (FCL) examination yards namely RCT, Grayline 1 and Grayline2The movement of these containers are controlled and monitored by using software called Cargo Control System until the cargo is released after examination at the yards.

Examination levels

Red Channel

(a) 100% Examination at specific yard

(b) Detailed examination at specified yard

Amber Channel

(a) Panel Examination at specific yard

(b) Panel examination at Importer's go-down

Green Channel

No examination

Introduction to Cargo Control System & Existing ProblemsNo System to monitor the movement of the container under Customs supervision until it is delivered to the correct consignee. Customs gates were not updated with the Asycuda payment information. Therefore Cargo Control System was introduced to monitor the container movement under the supervision of Sri Lanka Customs.(Manage around 1000 containers per day)

Objective of The Project Secure and Monitor the Container until it reaches the destination container terminal (Grayline I & II,RCT) in a predefined route within a given time period after it is released from the NCT Gate

Cstoms Gate Pass

Existing MethodologyRelease Note

Proposed System will increase the Efficiency & Effectiveness of these Business ProcessesProcess CusdecPrint Gate passUpdate Seal NumberPrint Release NoteRelease Container from NCT GateYard Check-InYard Check-Out

Proposed MethodologyTracking is done by using GPS unitsAssign a GPS unitTrack ContainerUpdate Geo-databaseYard Check-InOrder to ReleaseYard Check-OutRelease Container from Yard

Increase the Speed of the Customs Clearance and Overall Supply Chain Speed Document VerificationAdvanced Security will avoid False Documents (Encrypted Barcodes)Fully Automated System UpdatesPrevent tampering the Seals or the ContainersMonitor Container Physical MovementGeo-Fencing with Predefined RoutesQuerying on & Post Audits on Collected Data in the and the CCTV Snap ShotsOnline Surveillance Unit for Real-time RaidsUser Reports for Traders/Trade Facilitation

Technical Benefits of Using a GPS Tracking System for Cargo Control System

Phase-I Preparing GIS Framework

GIS Map of Sri Lanka

Geo-Fencing between two Customs Points.

Satellite View of Colombo Port

Colombo Port

Phase-II Installation of GPS Tracking Units

Installation of GPS Tracking Units GPS tracking unit will include a lock. This lock can be secured with a strap seal issued by the Customs department.

Figure 4. Installation of Tracking Devices with a Lock. The lock can be opened with a master key and the master key can be distributed among authorized officers at GraylineI & II, RCT and bonded ware houses.This lock is attached to the door of the container.

Tracking unit is fixed to the door and is locked with the bottle seal issued by the Customs Figure 5. Installation of Tracking Devices

System Architecture for the Proposed GPS enabled Tracking System

System Architecture of the Proposed Barcode Security Tracking SystemRFID Assigning & Installation Point /Barcode Sticker pasting on ContainerGate Pass Issuing PointIntranetCargo Control Client at NCTDatabaseCargo Control SystemRFIDs

System Architecture of the Proposed Tracking SystemGPSsBottle SealsNCT Gate Duty PointIntranetCargo Control Client at NCTDatabaseCargo Security Control SystemRFID ReaderGate PassRelease Note

IntranetDatabaseInternetCSCS ClientGeo-DatabaseCSCSGSM Mobile Service ProviderCSCS ClientCSCS ClientSystem Architecture of the Proposed GPS Tracking SystemGPS SatellitesCargo ContainerRFID Reader at Terminal (RCT,Grayline I & II)GPS Tracking UnitRFID Tracking Unit

Phase-III Trade Facilitation

Trade FacilitationProviding Reports to the Importers/ExportersReal-Time Tracking Information of containersFast Clearance for Legitimate Traders

Conclusions

Keeping a Tight Customs ControlSpeedy Clearance/Trade facilitationIncreasing Transparency/IntegrityReduce the Overall Customs Clearance Cost for Government and TradersROIComply with E-Government Policies and ConceptsIncrease Compliance Level of Traders

ReferencesUS Customs Official WebsiteAustralian Customs Official WebsiteUK Customs Official WebsiteSingapore Customs Official WebsiteWorld Customs Organization Official Website www.wcoomd.orgDHL Official Website ,www.dhl.comEnvironment al Systems Research Institute (ESRI) Official Website ,www.esri.comE-Government policies materials published by ICTA, www.icta.lk Study material CCES,University of Canberra on Compliance Management & Customs Regulatory Environment

Questions & Comments

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