Financial Times

EDI project to be launched after lengthy delay?
By Suren Gnanaraj
The much-awaited Electronic Data Interchange (EDI), which was scheduled to commence operations at the start of this year, is now expected to start automated cargo clearance only on May 1, 2004 with import cargo, followed by export cargo from August 1, 2004.

This was announced at a news briefing by Minister of Commerce and Consumer affairs, Ravi Karunanayake last week. eServices Lanka Limited will conduct a system load test commencing January 1, 2004, entering around 1,500 Cusdecs (Customs declarations) simulations a day in order to iron out any glitches which may prevent the EDI system from functioning smoothly.

On average Sri Lanka Customs handles 600,000 Cusdecs per annum, nearly 2,000 Cusdecs a day. When asked whether the project would finally get off the ground next year despite repeated assurances made in the past, Karunanayake said that there was no such previous announcement made, and that this was in fact the first time the launch of this project was announced.

"What we did previously was only launch the company eServices Lanka Limited and make the players involved in the cargo clearing process embrace this new IT concept," he said.

In an interview with the Sunday Times FT in December 2002, the chairman of the advisory committee, P. D. K. Fernando, and its secretary, Upul Jinadasa, announced that the project was to commence in three stages, with the electronic clearing of import cargo to start in January 2003, followed by the transhipment cargo and exports.

Both members were present at the news briefing, but no explanation was given as to the delay in implementation. Speaking on the benefits of this new automated cargo clearance system, Karunanayake said that the present system of document-based manual processing of cargo transactions had resulted in delays, high costs and corrupt practices such as bribes being offered to expedite the process.

"Since EDI will be cutting down on the involvement of middlemen in the cargo clearing process, each transaction made via EDI will only cost Rs.450 (US $4.50) as opposed to an average sum of Rs.1,000 being paid at present."

However, Dr.Neville Goonewardena, Director of Customs, Automated Data Processing division and member of the advisory council, said that only pre-discharge operations relating to cargo, such as the submission and clearance of Cusdecs, would be handled through EDI.

Approvals required by statutory authorities such as Sri Lanka Standards Institute would have to be obtained manually by the clearing agents, after submitting specific information relating to the cargo. This would indicate that the role of the middleman would still continue. Such statutory authorities would then inform other institutions such as the Customs and SLPA via EDI.

Sarath Jayatilleke, Director General of Customs, said that the Customs was in the process of moving towards a single administrative document, namely the Cusdec, in order to simplify the process of cargo clearance, eliminating long queues and lengthy documents.

Secretary to the advisory council, Upul Jinadasa, said that the minister is expected to submit a bill in parliament next month in order to legitimise electronic cargo clearing transactions, which would guarantee the security relating to the transaction.
He said that once the law was in place, the entire automated cargo clearing system would move in to a paperless environment, even as early May 1, 2004.

However, Jinandasa said that the internal processes of some institutions connected to EDI, which were not specified, were either not computerised or needed upgrading, indicating that a paperless situation was highly unlikely in the near future. He also added that electronic payment via EDI would not be introduced immediately.

The objective of EDI is to create a comprehensive paperless, electronic cargo clearing system, linking all relevant sectors such as the Customs, SLPA and BOI, in order to share common information, which would help expedite the clearing process. eServices Lanka, a joint venture between the Government and the private sector, is the service provider and has invested Rs.300 million on the project with absolutely no cost to the government.

Trade expert said that Cusdec information is insufficient to have a paperless
situation even in the future. What is misunderstood is that EDI is a structured document, unlike an email, and structured in a way that such information could be processed by the receiver automatically online.

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