Digitised maritime trade adoption Logistics sector concerned about delaying tactics

By Nishel Fernando 

The logistics sector has raised concerns over delaying tactics, as that could hinder the full adoption of the ASYCUDA World and ASYHU8S System. These systems aim to transition from cumbersome, paper-based processes to streamlined digitised maritime trade practices.

Industry stakeholders told Sri Lanka Customs at a meeting held recently that they are facing several challenges in reporting manifest details 24 hours before a feeder vessel departure. Some ISC ports such as Bangladesh and Maldives allow container reception until just four hours before feeder vessel departure, especially for short-haul ports. Additionally, foreign agents face practical difficulties in coordinating and preparing the large volume of transshipment containers well in advance to meet the new cut-off times.

Industry stakeholders warned that if these regulations are enforced, Sri Lanka might lose a significant portion of its transshipment business to Indian ports. They emphasised the potential impact on transshipment volume through Sri Lanka, which currently accounts for over 80 percent of the total volume, and how it could hinder long-term growth as a hub port.

Industry players opined that this could be yet another delaying tactic of some SLC officials to move into complete digitilsation. 

Customs clearance has been a common cause for delays. The customs processes in some countries are complex and often paper-based. Customs declarations can often only be submitted after the goods have physically arrived in the country, which leaves little time for processing declarations and often results in delays and disruptions to the supply chain.

Sri Lanka Shippers’ Council Chairman Sean Van Dort this week urged the government to fully digitalise the services offered by the border agencies, including Sri Lanka Customs, to ensure paperless trade, which will facilitate exports and bring down the cost of living.

He believes that SLC can transform into a much more efficient and product agency with the current workforce.
In special note to stakeholders issued on 20th of March, Sri Lanka Customs announced the full implementation of ASYHUB, a cutting-edge digital platform aimed at streamlining and enhancing the efficiency of Customs clearance. While this was to come into effect from 1 May, the authorities later moved to extend the testing period up to 20th of this month.

Parallel submission of Cargo Declarations and Bills of Lading to ASYCUDA World and ASYHU8S System commenced on the April 1 this year.

The initiative is being rolled out under “Digitising Global Maritime Trade” (DGMT) project which was launched on 15th of June 2020 after being approved by the develoPPP programme of the German Federal Ministry of Economic Cooperation and Development (BMZ). Sri Lanka and Cambodia were the first two designated pilot countries under the programme.

The industry raised concerns on the requirement to submit bill of laden 4 hours prior to vessel departure from last foreign port.