In light of the recent discovery of garbage containers imported to Sri Lanka from the UK, industry experts raised concerns over the loopholes in the existing cargo clearance system which, over the years, have been used, abused, and exploited by those involved in smuggling. They claimed the loopholes in the system should be corrected to prevent this exploitation by the very people the system is supposed to stop and apprehend. On a usual day, over 2,000 containers pass through the Sri Lanka Ports Authority (SLPA) and are sent to Sri Lanka Customs-authorised examination centres situated in Orugodawatta and Grandpass for custom clearances where manual inspections are conducted by customs officials. As learnt by The Sunday Morning, the officers do not inspect each and every container that passes through the SLPA, and only inspect the ones selected by the Risk Management Unit (RMU) as it is not practical for Customs to inspect each and every container. Speaking to The Sunday Morning, Sri Lanka Customs Deputy Director Aqthar Hassen said certain facilities had been extended to some importers/exporters based on the level of trust built with Customs. “Customs identify creditworthiness or how much they trust customers based on past dealings they have had with Customs. According to that level of trust, certain facilities have been extended,” he said. As explained by Customs, certain commodities categorised as “no threat or high risk” are allowed to be cleared under the normal fast-track clearance scheme. Referring to the detection of cocaine being smuggled into the country concealed in sugar containers, Hassen stressed that after Customs found the threat of such items entering the country, it was categorised as a “high risk” item and the port of loading or destination was also identified as a “high risk” port. However, as explained by the Deputy Director, the customs officers don’t usually suspect consignments from countries such as Europe or Australia which maintain 100% integrity. But if the same items come from Pakistan or India, Customs inspection is mandatory due to the level of integrity established by drawing from past records and these countries’ risk profiles. “Based on the risk profiles, we select a targeted consignment or the consignment that originated from the targeted port. That is an internal risk management system. We go on that basis,” he added. Based on the explanations made by Customs on their selective inspection process, questions arise as to whether there is room for terrorists or smugglers to exploit these facilities and smuggle harmful items such as weapons or drugs into the country as a result. Not feasible to check all When The Sunday Morning queried whether it was possible to inspect all the containers that enter the country, Hassen stressed that it was not necessary to inspect all the containers and that it was not practical. “If the consignee is a reputed company in Sri Lanka, has no black mark or flawed record, its directors’ profiles are very good, and it maintains high standards of integrity, we know that company will not resort to engaging in certain illegal activities,” Hassen explained. Highlighting the fact that the World Trade Organisation (WTO) and World Customs Organisation (WCO) also encourage customs authorities around the world to facilitate customers based on trust and their previous track records to ensure a hassle-free experience, the Deputy Director noted that investors would come to Sri Lanka only if the country’s ports and Customs were efficient and facilitated their businesses. “We extend our services for genuine and bona fide importers and exporters,” he said. When asked whether he could assure that there was no room for exploitation of these facilities by smugglers or terrorists, Hassen responded: “I can’t say there’s no possibility. If they want it really badly, sometimes, they may come as genuine operators and build up trust with customs officers for five years or more and thereafter engage in these activities, which may go undetected. They may be able to take advantage if they plan it for over 10 years. “We have to be very vigilant. But still, we can’t say that there is no room. There are possibilities and the parties can take advantage of that,” he added. In the meantime, All Ceylon Customs Services Union (ACCSU) Chief Secretary J.A. Gunatilake also explained the variations of customs inspections. Referring to the containers imported by the Board of Investment (BOI), he said: “Out of around 2,000 containers, there is a certain number of containers directly imported by the BOI, and usually, those containers were not inspected by the officials. “Also, the inspection method varies depending on the country from which the containers are imported. For example, when a container is imported from Dubai, it will definitely be inspected by the officials. However, when containers come from some other countries, the officials will refrain from inspecting the respective containers physically,” Gunatilake added. When asked about the technology used by Customs for inspection, Gunatilake stressed that the existing machines were installed over 10 years ago. However, the Department was currently taking measures to install new technology. However, he added that even though there were machines to detect illegal substances, some types of substances could only be found through manual inspection. “The machines which Customs has at present can only identify density,” he added. Customs introduced a system for some regular, loyal importers where they are able to get their containers released without any physical inspection, but are required to be subjected to a post audit by Customs. Apart from cargo clearance systems, there are little additional documentation processes compulsory for each importer. Compulsory documentation process Speaking further to The Sunday Morning, Hassen said: “Each importer should get registered with the relevant institution – that is, the IRD – and will have to submit those documents to Customs. “First, the importers should register with Customs as an importer or clearing agent, and once registered, they will be given a number which will give them access to the Customs system. If they want to import anything, they will have to follow the normal procedure,” he added. Elaborating, Hassen said: “After taking all the required documents and certificates and obtaining the necessary approvals, they are allowed to import goods as specified in these documents and they are required to submit customs declarations online or over the counter. “Then, the SLC will process the consignment with the customs declaration form – they will go into detail and examine the correctness of these documents. After examination, if anything needs to be clarified, they will call the importer or clearing agent. If the customer is satisfied with the process, the documents will be transferred to the delivery point where they can get the consignment cleared out of the port premise for examination. “The examination will be conducted by our own staff. They examine the customs declaration and shipping documents and contents of the container, and if the consignment is in order, it will be released. If the consignment isn’t in order, it will be subjected to a customs investigation if it is found that the consignment was not imported in accordance with the rules and regulations of the process,” he added. As the ACCSU explained that the inspection centres are situated a few kilometres away from the Colombo Port, The Sunday Morning inquired as to whether this proved to be inconvenient for the officials engaging in inspections. “For the past few years, we have been demanding the authorities to provide a space for examinations inside the Port, but so far, they haven’t addressed the issue. It is more convenient if the examination centres were situated inside the Port. At present, we are sending containers to three centres for inspections,” Hassen added. Colombo Port to examination centres Accordingly, over 1,500 containers had been inspected per day outside the Colombo Port by a private company, resulting in obstructions to vehicular movement in and around the areas. Heavy traffic can be seen in Kotahena, Ingurukade Junction, Peliyagoda, and several other areas leading to the Port on a working day. Last year, strike action was also launched by the Colombo Port container drivers and assistants asking the SLPA to take over the inspection of containers, which was outsourced to a private company in 2003 due to security reasons during the war. In the meantime, as there were several cases reported pertaining to corrupt custom officials, The Sunday Morning questioned the ACCSU Chief Secretary about the process and involvement of the customs officials over the inspection of containers. “Usually, there is no single task allocated to a customs officer as they should be able to handle the work of all departments. When it comes to inspections, the officers engaging in inspections work on a roster. One officer will work in one department only for six months,” Gunatilake added. The strength of the workforce of Sri Lanka Customs at present is around 3,000; they are responsible for handling customs duties at all ports around the country, according to ACCSU. Latest technology being installed Speaking to The Sunday Morning, Sri Lanka Customs Media Spokesman and Director Sunil Jayarathna said: “There is a project for this type of cargo examination and hopefully, it will be over in another one-and-a-half months. In addition to that are also some other initiatives in the pipeline, scheduled to be completed very soon, incorporating the latest technology.” Highlighting the current scanners at Sri Lanka Customs, he said: “The current scanners are totally outdated and that was the reason for installing four new, ultra-modern scanners. Four scanners are being installed – two for exports and two for imports. Accordingly, we will be able to identify many illegal items without having to check the consignments physically; we can examine 99% of the cargo. After installing the new machines, Customs is hopeful of releasing cargo to legitimate importers with minimum customs intervention.” – Maheesha Mudugamuwa