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The national single window: Paving the way for paperless trade

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By Mithara Fonseka and Kavishka Indraratna

In 2016, Sri Lanka ratified its Trade Facilitation Agreement (TFA) with the WTO and in 2017 a Secretariat was established for the National Trade Facilitation Committee to drive much needed trade reforms in the country. Currently, the rate of Sri Lanka’s implementation commitments under TFA stands at 34.9% with a timeframe ranging from 2017-2030. Reforms include the Trade Information Portal, streamlining customs processes and revamping the systems for post-clearance audit. However, progress of one of the key reforms, the National Single Window (NSW), has been stalled. Deviating from the initial time frame of completing the Single Window in December 2022, the target date has been delayed to 2030. The NSW, a globally recognised trading portal, acts as a one-stop shop for exporters and importers where customs documents, permits, registrations and other information can be submitted online at once. The definition of a Single Window, as provided by the UN/CEFACT Recommendation No. 33, is as follows: “A Single Window is defined as a facility that allows parties involved in trade and transport to lodge standardized information and documents with a single entry point to fulfil all import, export, and transit-related regulatory requirements. If information is electronic, then individual data elements should only be submitted once”. Putting such a reform on the back-burner will only delay Sri Lanka’s transition to a system of streamlined, paperless trade processes and therefore acts as an impediment to local and foreign investment.

Why should Sri Lanka implement a NSW?

Sri Lanka has been underperforming in global trade rankings, where we sometimes rank in the bottom 50 countries. According to the Ease of Doing Business in 2020, in the trading across borders pillar, Sri Lanka ranks 96 out of 190 economies. While several of Sri Lanka’s indicators perform better than the South Asian average, there is significant room for improvement. When comparing with OECD standards, Sri Lanka takes 72 hours for border compliance regarding imports and 48 hours for export documentary compliance whereas the OECD average stands at 8.5 and 2.3 hours respectively. Lengthy customs procedures and multiple inspections impede efficiency. Meanwhile, we ranked 94 out of 160 countries under World’s Bank 2018 Logistics Performance index and 103 out of 136 for the World Economic Forum’s 2016 Enabling Trade index. Notably, one of the indicators from the Enabling Trade Index, the customs services index, which considers factors such as clearance of shipments via electronic data interchange and the separation of physical release of goods from fiscal control, we rank 116 out of 117 countries. A lack of transparency, inter-agency coordination and lengthy cumbersome processes contribute to Sri Lanka’s poor trade environment. An average trade transaction can involve over 30 different agencies and upto 200 data elements, a lot of which have to be repeated. There is thus an evident need to streamline trade processes through digitisation, creating a business friendly environment that supports small businesses as well as foreign investors.

A Background into the National Single Window

In 1989, the Government of Singapore introduced the world’s first NSW, known as Tradenet. It took two years for the model to become operational and has now become one of the most advanced models in the world. Since then, many countries have adopted similar models and a NSW has become a critical tool in facilitating efficient and paperless trade. The annual survey conducted by The United Nations on trade facilitation identified that almost 74% of countries surveyed in the Asia Pacific region have to some extent engaged in creating a NSW (this includes countries which are only in the pilot stage). While a NSW is universally known for promoting the transition from paper-based to electronic customs processing, each window developed by a country is unique and varies according to the context of the country. For example, in Chile and Malaysia, the NSW enables traders to submit their export and import declarations, manifests and their trade-related documents to customs authorities electronically. In Korea and Hong Kong, private sector participants including banks, customs brokers, insurance companies and freight forwarders are also connected through the portal.

Single entry, single submission, standardized documents and data, sharing of information (information dissemination), centralised risk management, coordination of agencies and stakeholders, analytical capability and electronic payment facilities are some of the key functions included in a Single Window. In Sri Lanka, the World Bank did several studies on the NSW, identifying different operational models, best practices and a final blueprint document was given to the government and Sri Lanka Customs (SLC) in July 2019. However, since then, there has been no news of progress. While many countries including Sri Lanka are keen to emulate Singapore’s pioneering model, a lack of clear targets and timelines deteriorate the chances of implementing such a system.

The Mutual Benefits of a NSW

Businesses in countries without an integrated trade system find it difficult to compete in the international arena given the time and money spent to simply get clearance. Streamlining the entire process from start to finish in a manner that’s comprehensive and transparent, sans bureaucracy has a number of positive effects for traders. It was estimated that Singapore’s TradeNet saved its traders around US$1 billion per year. Korea’s uTradeHub allowed its business community to save approximately US$ 818.9 million. These were savings from the use of e-documents, automated administrative work and information storage and retrieval with the use of ICT. A Single Window automatically simplifies the compliance requirements traders face. In Mozambique traders benefited from faster clearance times, where through the NSW, the time was reduced from 3 days to a few hours. Meanwhile, Thailand’s NSW transformed the customs clearance turnaround time (measured as per declaration) to 95% in 5 minutes. Using a single portal has enabled traders to avoid visiting multiple agencies and simply submit an application at their convenience from any location. NSW has supported businesses through the removal of unnecessary costs, time and red tape, factors which tend to act as key deterrents to small businesses as well as foreign enterprises.

The NSW system has similarly provided noteworthy cost-savings for government entities involved in trade. Singapore Customs, has claimed that for every US$1 earned in customs revenue, it only spends 1 cent, implying a profit margin of 9,900%. In Hong Kong, trade facilitation measures have provided them with HK$1.3 billion in annual savings. The NSW has also reduced revenue leakages which may arise through transit. For example, Mozambique is a transit country to Swaziland, South Africa, Zimbabwe, Zambia and Malawi. By expanding their NSW to include value added services such as GPS tracking of consignments in transit, automatic detection of breaches in consignment and deviation from assigned transit corridors the NSW prevents revenue leakages and the opportunity for corruption, maximising revenue collection. The NSW has further led to productivity and efficiency improvements. A Single Window has enabled authorities to handle a larger volume of applications with much more ease. Mozambique, which used to face infrastructural weaknesses, through the implementation of its single window, is able to handle roughly 1,500 custom declarations per day. Shifting to paperless customs processes would reduce costs for inventory and assist in improved resource allocation as personnel would not be required for trivial and mundane tasks such as preparation and cross checking of numerous documents. In totality, a fully digitised system provides government agencies with the means to do away with inefficiencies that hold back the speed of document processing, approval, communication and inspection stages. Further contributing to efficency, a NSW has also facilitated the dissemination of data through multiple agencies ranging from border control authorities, freight forwarders, customs brokers, shipping agents, banks and so on. As a result, there is improved inter-agency coordination and increased transparency.

Apart from a substantial increase in government revenue, the NSW will contribute to an improved business environment in Sri Lanka. The domino effects include an upward movement in the country’s global rankings, incentives for FDI and local business as well as a global recognition.

Driving forces for implementation

While the NSW on the surface seems like an IT-based innovation, it is rather a platform for inter-agency and private sector collaboration. As the NSW is a system which requires involvement from government, the private sector and the transport community, it is crucial to ensure inter-agency collaboration. Ensuring public-private sector participation, introducing mandates and a steering committee to oversee implementation is crucial in developing such a system. The system as a whole is one that constantly evolves with no end stage. It requires continuous maintenance, support, and enhancement. This should be supplemented by the appropriate legislation, disclosure and publishing, backed by training and airtight data security policies. Thus governance of the NSW needs to be executed appropriately so that new technologies, techniques and new modes of trade can be leveraged. In best performing nations, a Single Window is not considered a single system but rather “a combination of trade-related platforms that serve various trade communities and modalities”. This has enabled leading countries such as Singapore and Hong Kong to facilitate seamless trade by building an environment of interoperable trade systems.

Kavishka Indraratna is a Research Analyst at the Advocata Institute. She can be contacted at kavishka@advocata.org. Mithara Fonseka is a Researcher at the Advocata Institute. She can be contacted at mithara.advocata@gmail.com. The Advocata Institute is an Independent Public Policy Think Tank. Learn more about Advocata’s work at www.advocata.org.



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Opinion

Mrs Hemamali Kanthi Jayasinghe

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Mrs. Hemamali Kanthi Jayasinghe known by all her friends and relations lovingly as ‘Bunchi’, left us on August 20, 2024, leaving an unfillable void for her husband Lal, daughter Chanika and grandchildren Isurika and Pavith. I know from Bunchi’s narratives related to me of their success stories in Australia. her grand- children Isurika and Pavith had a special place in her heart. This is natural, and as should be.

Bunchi was a rare individual who left a void in all groups whom she came across in life- both among her friends and relations. It was especially true for her sister-in-law and family, her aunts, cousins and their spouses. Bunchi and Lal were a couple who never abandoned their cousins in good times or bad. The two of them were all-weather relations. She had an open house for her friends and relations, and a sympathetic heart that inwardly motivated her to be helpful to others.

We live in Kelaniya. Over the last so many years, whenever there was a public warning about floods in Kelaniya, like a prayer, a call would come from Bunchi- ‘Aiya if there is any threat of floods, both of you, please come and stay with us’; usually this invitation is also repeated by Lal. About four months ago, when a flood warning was issued to all major river basins, Bunchi even though sick, gave us a call followed by Lal, and invited us to come over to Kadawatha. Although she was ill and weak, she did not forget to offer help to others.

Lal was the family doctor for all families of Bunchi’s cousins and aunts. When a call came for help, if it was found to be medically necessary to visit, Bunchi always accompanied Lal to their relations’ homes. Lal looked into the medical side, while Bunchi’s concern and ‘recuperative words’ provided psychological help to the sick. So, in most instances it was the doctor accompanied by his wife, who came to the patient instead of the patient going to the doctor. The service was totally free.

I still vividly remember this day in, I guess 1984, I was getting ready to go to USA on official duty. Our elder daughter complained of a severe stomach ache. I phoned Lal who examined her and said that there was some tenderness, but asked me to go as planned and that even if surgery was needed, he would arrange everything including showing our daughter to a surgeon and following up. Bunchi told me ‘we will look after everything – you just go’. This was one instance of help that Bunchi and Lal did for us. It was a great responsibility that they decided to shoulder to help a cousin. And I know that some other cousins or relations of Bunchi can also relate such magnanimous instances of offering help.

Bunchi and Lal were well known among friends and relations for giving dinners at their Kadawatha home. Their home was well- equipped for such occasions. Her mother Irene who was also living at Bunchi’s (Irene ‘nanda’ to us) also helped in bringing out culinary delights.

I am bringing the above entertainment story in order to highlight another deep- seated side to Bunchi and Lal that was perhaps only known to their close relations and cousins. At the ‘Mathaka Vastra pinkama’ this was well articulated by the two Nayaka Theros who conducted the religious ceremony at her funeral. Bunchi and Lal were both religious and Bunchi helped Lal to continue with all the traditional ‘Pinkamas’ that Lal’s parents had been conducting for so many years. Bunchi also started new ‘Pinkamas’. And in these merit acquiring activities they involved their daughter and grandchildren and nephew and niece from their young days to inculcate in them the importance of spiritual reinforcement in addition to practicing their vocations.

It was heartening to note that Chanika and Lal (despite being handicapped without Bunchi’s support) continued to participate in the’ Katina pinkama’ of the Bimbaramaya Temple, Kadawatha, by preparing some items for the ‘dana’ at the ‘Katina Pinkama’. I believe there were about 70 bhikkhus at the alms-giving.

When they were at home, Bunchi and Lal would do the morning and evening ‘Buddha Puja’ and other worship without a break. Lal now continues with the tradition by himself.

However, they were also open to the modern world and its necessities and responsibilities. They were a very cosmopolitan couple; they had close friends belonging to all religious denominations, both in Sri Lanka and abroad. They kept in close contact with them. What they accomplished over a substantial period of time through their diverse relationships and hospitality, was an important sociological need for Sri Lanka- that is to go forward in unity while being diverse. Lal also worked for many years for NHS in UK, and both of them were happy to receive friends and relations from Sri Lanka at their Lincoln home. They decided to return home to be with their aging parents.

Another positive aspect of Lal and Bunchi was the sincere, helpful, and long-standing- relationship they had with their domestic aides. The domestic-aides in turn were strongly loyal to Bunchi and Lal.

Throughout Bunchi’s some-what long illness, Lal and Chanika looked after Bunchi with love and tenderness.

Hemamali Kanthi Jayasinghe was the daughter of the late Dr. Gilbert Gajanayaka and the late Mrs. Irene Munasinghe Gajanyaka. She was the sister of the late Mr. Gamini Gajanayaka.

May Bunchi attain the Supreme Bliss of Nibbana.

Lakshman Wickramasinghe

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Opinion

Significance of Tamil vote in 2024 general election

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Apart from the resounding victory by the NPP, the most significant election outcome is the remarkable change in the voting pattern of the Tamils in the North, the East, and the Central province not to mention Colombo that brought defeat to most of the Tamil political stalwarts like Sithatharan, Sumanthiran, Palani Thigambaram, Mano Ganeshan et al. This is the first time that such a change has happened in a general election where usually the ethnic political parties hold sway over minority votes. It is of vital importance for everybody including Tamil politicians, the present government, international community, hegemonic powers, ultra-nationalists and separatists to understand and correctly interpret this change in the Tamil political fabric.

The decisive factor that was apparent in the pre-election period was the need for a change which manifested in a weaker form at the presidential election that brought in a new president with 42% of the national vote with the majority of Tamils voting against the NPP candidate. In less than two months the whole picture had changed and a majority of Tamils who did not vote for the NPP at the presidential election took the unprecedented step of going against their own ethnic parties and voted for the NPP. Although it appears to be a sudden change of attitude obviously such changes on such a wide scale cannot happen overnight. The need for a system change must have been slowly and steadily growing in the minds of Tamils over a period of time, like it had in the Sinhalese. The latter was obviously weary of suffering under the governments of the two major political parties since independence. The former however had hitherto been loyal to their ethnic parties who pursued divisive communal politics appealing to the ultra-nationalist sentiments of the Tamils. What was the reason for the Tamils to change in this manner?

Presidential election may have shown the Tamils that the Sinhalese had decided to bring about a radical change. This would have been the cue for them to come out into the open and demonstrate the change that has been slowly taking place in their minds. The change that appeared to have taken place in less than two months was probably catalyzed in this manner.

Tamils suffered during the thirty-year war. It is probable that the new generation of Tamils have realised the futility of war and confrontation and decided to chart a different course and deviate from the main sociopolitical stream from the time of independence though there were times of convergence and cooperation albeit of short duration. Independence and universal franchise have driven a wedge between Sinhala and Tamil leaders which was rather unfortunate for they were together in the struggle for Independence. Tamil politicians enjoyed parity of political power and suddenly they realized that their privileged position was in danger due to universal franchise which would make them a minority in the parliament. They could not reconcile with the fact that they were representatives of a minority community. What is most unfortunate is that they could not see the opportunities that were there for them to play a vital role in the development of the whole country. The mistake the Tamil leaders committed at that time was to abandon the opportunity that was available to jointly participate in the central government and contribute to the development of not only the Tamils but also the whole country and instead choose the narrow parochial path of communal politics. This blunder has continued to plague the country and even caused the birth of terrorism and a bloody war.

These historical mistakes must have dawned on the new generation of Tamils who, like the Sinhalese want a change in their lives which could come with economic development rather than ultra-nationalist dogma. Further they may have realized the fact that Tamil ultra-nationalism was flawed, unjust, parochial and does not belong in the modern world. Communal barriers have to be breached to achieve connectivity, interaction and networking which are capable of opening new vistas in the modern electronic era. All communities who have made Sri Lanka their home must unite and develop their country. The absence of this unity may have been one of the reasons for the country to lag behind in economic development and finally end up being bankrupt which would have affected all communities alike. In this regard the Tamils have taken the first step and it is now up to the other communities to suitably respond.

The government must know that the Tamils have significantly contributed to their massive victory. The government must understand what these Tamils who have rejected their own political parties and leaders want. They, too, like the Sinhalese are affected by economic mismanagement and poverty. Their problems are same as those of the Sinhalese majority. All communities are in the same boat. Tamils have realised this truth and would want urgent attention to their immediate needs. Their nutrition, health and education should receive immediate and sufficient attention. Tamils have abandoned their own parties and embraced the governing party expecting urgent redress to their burning problems.

There is a lesson for the international community as well, especially for the imperialist western powers. The latter had made use of the lack of unity among the communities to destabilise the country in pursuance of their geo-political ambitions in the Indian Ocean region. The LTTE was a tool in their hands, and after the demise of its leader, other separatists moved in to fill the vacuum. The western powers must realise the futility of such policies in view of the radical changes taking place within the mind-set of the Tamils. Tamils may no longer see the Sinhalese as their oppressors and the Sinhalese may not harbour the fear that Tamils are demanding a separate country.

It is hoped that the time may come when the Tamils realise that the whole country belongs to all communities and it is their duty to participate in the development of the whole and not just the North and parts of the East. True Tamil national leaders may emerge who would want to share power at the centre rather than at the periphery and contribute to the governing of the whole country. It is hoped that this is the end of divisive communal politics and the beginning of a new era of unity and prosperity.

N. A. de S. Amaratunga

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Opinion

Revolutionary elections

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By Dr Upul Wijayawardhana

No doubt, it is the ‘election like no other’ in the ‘country like no other’ that would top the league of revolutionary elections, of which there were three, just this month. Much has been written about two; the one in Sri Lanka and the second in the US but the third, in the UK, had hardly any mention in Sri Lankan media, perhaps, because it was not a general election but the election of the leader of a major political party, which I would come to later.

The NPP/JVP deserves to be congratulated on its unprecedented, massive victory and it is hoped that the new government will succeed. All ‘communal’ parties, save a few, faced humiliating defeats. The NPP won 21 out of 22 districts, the only exception being Batticaloa. Its win in Jaffna sends a clear message to the communal parties, whose leaders have been taking the people of the North for a ride to further their own interests. Do hope the new government makes good use of this golden opportunity to bring about reconciliation.

It is not only the results in the North that gives hope but also from the South. It was gratifying for me to note that my home district Matara, which is predominantly Sinhala, has elected a Tamil MP as well as a Muslim MP. Not only that, out of the 6 NPP MPs elected, the Tamil MP got the second highest and the Muslim MP got the fourth highest preferential votes. A district once well known to elect on the basis of caste and creed, a concept encouraged if not engineered by the Communist Party, has gone a full circle, thanks to another Marxist party! Perhaps, this demonstrates that voters are no longer misled by man-made differences and are achieving a degree of political maturity, which bodes well for the future. Yet another ray of hope for true reconciliation!

As far as the US election is concerned, even the bitterest critic of Donald Trump has to concede that he achieved the impossible, not once but twice. On both occasions, it was not that Trump was selected by the Republican Party but he got the party to rally round him. In fact, Trump started life as a Democrat and was not a professional politician. He achieved fame as a sharp businessman and a TV personality and decided to be president. One man’s ambition succeeding is unprecedented in US history, as far as I am aware. Though Trump won the 2016 election on the collegiate vote, he was almost 300,000 behind Hilary Clinton in the popular vote. In the 2020 election which he lost to Biden, he polled 74,223,975 whereas Biden polled 81,283,501. In the 2024 election though his popular vote increased to only 76,768,490 votes (according to the last count, as counting in US elections is very prolonged), he had a landslide winning 312 collegiate votes. Kamala Harris polled only 74,194,538, staggering 7 million less than Biden. Do these results give credence to Trump’s accusations of vote rigging in the 2020 election, I do not know. When he was portrayed as a bitter loser, no one ever imagined that Trump would have a comeback. Multitude of court cases he faced made the prospect even dimmer. His dramatic win, perhaps, adds weight to his claim that some of these cases were politically motivated.

The other important aspect of the US presidential election is that all polling organisations got their predictions totally wrong. Up to the last moment, it was too close to call they said, but as the counts proceeded, it was obvious that Trump has achieved the impossible again. However, the most important lesson for the rest of the world is that the US voting system is nothing worth emulating!

Whilst the USA is still waiting for the ‘glass ceiling’ to be broken, the UK has had three female prime ministers and recently elected another lady as the leader of a major political party.  Interestingly, it is the Conservative party that seems to be progressive, the Labour Party still waiting to elect a female leader, in spite of two having acted as leader!

Kemi Badenoch, who was elected as the leader by the members of the Conservative Party early this month, is the Leader of the Opposition and may well be next Prime Minister, if the Labour government continues to mess up, as it is doing now. She may well follow Margaret Thatcher, Theresa May and, of course, the disastrous Liz Truss.

Kemi Badenoch’s election is revolutionary in two more aspects. She is the first Black leader. male or female, of a major UK political party. Further, she is the first immigrant to be a leader of a major political party. Though the US constitution stipulates that only a person born in the US could hold the highest political position there is no such stipulation in the UK. If that was so, Boris Johnson would not have been PM, as he was born to British parents in New York, while his father was studying in Columbia University!

Kemi Badenoch’s family is from Nigeria, her father being a GP and her mother a professor of physiology. Theoretically, though she spent the first sixteen years of her life in Nigeria and USA where her mother lectured, she could be classed non-immigrant as her mother travelled to London from Lagos to have her in a private hospital in Wimbledon, to return shortly after the delivery of the baby. In fact, in her first speech in parliament Badenoch declared that “to all intents and purposes, I am a first-generation immigrant”. Whatever it may be, hats-off to the UK for achieving this degree of political maturity, which is hoped we would be able to emulate ultimately.

What a revolution would it be, if a Black immigrant lady became the Prime Minister of the UK!

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