Business

Understanding Standard Customs Inquiry Procedures

Published

4 weeks ago

2025/11/9

Aligning with global best practices requires Sri Lanka to embrace independent and impartial reviews where necessary

Sri Lanka Customs plays a vital role in safeguarding the national economy, both through its regulatory responsibilities and revenue collection functions. As the country’s border control authority, the Department is tasked with facilitating legitimate trade while preventing illegal activities such as smuggling and other forms of illicit cross-border movement.

As a regulatory body, Customs must also remain accountable for the actions it takes. In fulfilling its mandate, Sri Lanka Customs—similar to Customs administrations worldwide—may be required to initiate investigations that lead to formal inquiries. These investigations are conducted in line with globally accepted standards and procedures, reflecting the Department’s role in international law enforcement and its responsibility to uphold transparent, fair, and consistent practices.

Customs investigations are typically initiated upon detecting irregularities such as misdeclaration, undervaluation, or violations related to imports and exports. At present, the full inquiry process is carried out internally within the institution, without the requirement to seek an independent review. This internal structure means that matters involving external parties are handled without impartial or third-party oversight.

Although the goods or interests under inquiry often belong to private entities, decisions are made exclusively by the officials, which can give rise to concerns regarding transparency and potential conflicts of interest. A comparable investigative approach is also followed by other regulatory bodies in Sri Lanka.

Global norms

Internationally, administrative bodies engaged in decision-making are expected to uphold principles of fairness and impartiality. Accordingly, processes must adhere to key standards such as impartial decision-making, the right to be heard, transparency, access to review mechanisms, and overall procedural fairness.

In line with these norms, the World Customs Organization—through Chapter 10 of the General Annex to the Revised Kyoto Convention (RKC), the global framework for simplifying and harmonizing customs procedures—emphasises that decisions affecting traders or individuals must be subject to review. Likewise, the Trade Facilitation Agreement of the World Trade Organization (WTO), in Article 4, requires member states to ensure that importers and exporters have access to mechanisms for review or appeal of customs decisions.

The United Nations Conference on Trade and Development (UNCTAD) also highlights that fair administrative procedures are essential to preserving public trust and ensuring compliance within customs operations. Similarly, the OECD Recommendation on Regulatory Policy and Governance (2012) underscores the need for administrative bodies to maintain accountability, transparency, and procedural fairness in enforcement and adjudication processes.

Global best practices

International practice has moved toward transparent, multi-stage dispute-resolution frameworks, ensuring that decisions can be reviewed independently. This shift has created an opportunity for Customs administrations worldwide to incorporate impartial review mechanisms outside their internal structures.

In the United Kingdom, functions are distinctly separated: tax collection and border control are handled by different institutions, and appeals are adjudicated by an independent lower-level tribunal. Decisions of this tribunal may then be appealed to the Upper Tribunal and subsequently through the regular court hierarchy.

In India, review and appeal functions are assigned to the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), a statutory quasi-judicial body established under the Customs Act to adjudicate complex customs and tax disputes.

Similarly, Thailand has adopted a structured, tiered review system. Disputes undergo initial internal review by subject-matter experts, after which appeals may be taken to the national judiciary. Higher-level appeals are handled by the Customs Board of Appeals, which includes external experts, ensuring an additional layer of independent oversight.

To strengthen fairness and accountability

The international examples above demonstrate the value of clearly separating investigative, decision-making, and review functions. Such structures reinforce impartiality, enhance accountability, and strengthen public confidence in the inquiry process. These models reflect globally recognised best practices that promote transparency and fairness in customs administration.

Sri Lanka’s current framework primarily operates through an internal review process. In addition to the above, introducing an external, independent review mechanism—aligned with international standards—would further strengthen trust, impartiality, and institutional accountability. As a border control authority and a key regulator of import and export activity engaged in global trade systems, adopting internationally practised adjudication approaches would enhance the credibility and reliability of Sri Lanka Customs at every level of operation.

By Nadeeka Dissanayake

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Business

Sri Lanka betting its tourism future on cold, hard numbers

Published

1 hour ago

2025/12/8

Thilina Walpola

“From Data to Decisions” initiative jointly backed by Australia’s Market Development Facility holds its panel discussion

National Airport Exit Survey tells quite a story

Australia’s role here is strategic, not charitable

In a quiet but significant shift, Sri Lanka’s tourism sector is moving beyond traditional destination marketing and instinct-based planning. The recent launch of the “From Data to Decisions” initiative jointly backed by Australia’s Market Development Facility and the Sri Lanka Tourism Development Authority, sent an unambiguous message: sentiment is out, statistics are in.

The initiative is anchored by a 12-month National Airport Exit Survey, a trove of data covering 16,000 travellers. The findings sketch a new traveller profile: nearly half are young (20–35), independent, and book online. Galle, Ella, and Sigiriya are the hotspots; women travellers outnumber men; and a promising 45% plan to return. This isn’t just trivia. It’s a strategic blueprint. If Sri Lanka Tourism listens, it can tailor everything from infrastructure to marketing, moving from guesswork to precision.

Tourists have a real sense of achievement after hiking the trail to Ella Rock

The keynote speaker, Deputy Minister Prof. Ruwan Ranasinghe called data “a vital pillar of tourism transformation.” Yet the unspoken truth is that Sri Lanka has long relied on generic appeals -beaches, heritage, smiles. In today’s crowded market, that’s no longer enough. As SLTDA Chairman Buddhika Hewawasam noted, this partnership is about “elevating how we collect, analyse, and use data.”

Australia’s role here is strategic, not charitable. By funding research and advocating for a Tourism Satellite Account, it is helping Sri Lanka build a tourism sector that is both sustainable and measurable. Australian High Commissioner Matthew Duckworth linked this support to “global standards of environmental protection” – a clear nod to the growing demand for green travel. This isn’t just aid; it’s influence through insight.

“The real test lies ahead,” a tourism expert told The Island. “Data is only as good as the decisions it drives. Will these insights overcome bureaucratic inertia? Will marketing budgets actually follow the evidence toward younger, independent, female travellers?,” he asked.

“The comprehensive report promised for early 2026 must move swiftly from recommendation to action. In an era where destinations are discovered on Instagram and planned with algorithms, intuition alone is a high-stakes gamble. This forum made one thing clear: Sri Lanka is finally building its future on what visitors actually do – not just what we hope they’ll do. The numbers are in. Now, the industry must dare to follow them,” he said.

By Sanath Nanayakkare

Business

New ATA Chair champions Asia’s small tea farmers, unveils ambitious agenda

Published

1 hour ago

2025/12/8

Thilina Walpola

New Chairman of the Asia Tea Alliance (ATA), Nimal Udugampola

In his inaugural address as the new Chairman of the Asia Tea Alliance (ATA), Nimal Udugampola placed the region’s millions of smallholders at the core of the global tea industry’s future, asserting they are the “indispensable engine” of a sector that produces over 90% of the world’s tea.

Udugampola, who is also Chairman of Sri Lanka’s Tea Smallholdings Development Authority, used his speech at the 6th ATA Summit held in Colombo on Nov. 27 to declare that the prosperity of Asian tea is “entirely contingent” on the resilience of its small-scale farmers, who have historically been overlooked by premium global markets.

“In Sri Lanka, smallholders account for over 75% of our national production. Across Asia, millions of families maintain the quality and character of our regional teas,” he stated, accepting the chairmanship for the 2025-2027 term.

To empower this vital community, Udugampola unveiled a vision focused on Sustainability, Equity, and Digital Transformation. The strategic agenda includes:

Climate Resilience: Promoting climate-smart agriculture and regenerative farming to protect smallholdings from environmental disruption.

Digital Equity: Leveraging technology like blockchain to create farm-to-cup traceability, connecting smallholders directly with premium consumers and ensuring fair value.

Market Expansion: Driving innovation in tea products and marketing to attract younger consumers and enter non-traditional markets.

Standard Harmonization: Establishing common regional quality and sustainability standards to protect the “Asian Tea” brand and push for stable, fair pricing.

Linking the alliance’s goals to national ambition, Udugampola highlighted Sri Lanka’s target of producing 400 million kilograms of tea by 2030. He presented the country’s “Pivithuru Tea Initiative” as a model for other ATA nations, designed to achieve this through smallholder empowerment, digitalization, and aligned policy objectives.

By Sanath Nanayakkare

Business

Brandix recognised as Green Brand of Year at SLIM Awards 2025

Published

1 hour ago

2025/12/8

Thilina Walpola

Brandix has championed best practices in the sphere of sustainable manufacturing over the years

Brandix Apparel Solutions was recognised as the Green Brand of the Year at the Sri Lanka Institute of Marketing (SLIM) Brand Excellence Awards 2025, taking home Silver, the highest award presented in the category this year.

The ‘Green Brand of the Year’ recognises the brand that drives measurable environmental impact through sustainable practices, climate-aligned goals and long-term commitment to protecting natural resources.

A pioneer in responsible apparel manufacturing for over two decades, Brandix has championed best practices in the sphere of sustainable manufacturing covering environmental, social, and governance aspects. The company built the world’s first Net Zero Carbon-certified apparel manufacturing facility (across Scope 1 and Scope 2) and meets over 60% of its energy requirement in Sri Lanka via renewable sources.

Head of ESG at Brandix, Nirmal Perera, said: “Being recognised as Green Brand of the Year is an encouraging milestone for our teams working across sustainability.”