Second Exporters’ Forum successfully clears pilot’s issues, pushes national export thrust further

The latest Exporters’ Forum to be held, the second in the revived Exporters’ Forum series in Sri Lanka’s new export thrust, concluded successfully on 2 February in Colombo.

The majority of concerns raised by Sri Lanka’s exports community at this forum were cleared on-location, with the few pending issues being immediately forwarded to relevant stakeholders present for further action while Minister of Industry and Commerce Rishad Bathiudeen, under whose guidance the national effort is made, also hinting a possible change in role for Sri Lanka Exports Development Board, country’s premier export development agency under his Ministry.

“Now we are happy to see the end of yet another successful exporters’ forum session with constructive dialogues involving many stakeholders present. During today’s session, we have focused on the progress of several important issues submitted during the first exporters’ forum and also accepted several new submissions for review as part of our efforts to address grievances of our exporters and also for the overall development of our export community so that we will continue to progress towards the aims as outlined by the development vision of President Mahinda Rajapaksa,” announced an upbeat Minister Bathiudeen, closing the wide-ranging and in-depth interactive sessions that began at 10a.m. at the auditorium of Ceylon Chamber of Commerce in Colombo.

Showing flexibility and going beyond its agenda, the Forum also took into consideration, in addition to the tabled submissions, concerns of five additional submissions.

The Exporters’ Forum is the successor to the first/pilot Forum held on 27 September 2011, in Colombo. The February sessions also saw increased attendance from the private sector, exporters, chambers, various advisory committees and top government Ministries and departments including Ministries of Finance, External Affairs and BOI, with their consensus that it was an effective interactive and collaborative mechanism by the Ministry of Industry and Commerce and Export Development Board that can be effectively modelled by many other government institutions as well.

Showing flexibility and going beyond its agenda, the Forum also took into consideration, in addition to the tabled submissions, concerns of five additional submissions.

Among the private sector firms at the second Forum were Haycarb PLC, Finlays Colombo, Coco Lanka, ATG Gloves, Rainbow Foods, Global Sea Foods, Lankohu Industries, Ceylon Tea Plantation Exports Ltd, Ally Weerasinghe, BTC Italia, Alchemy Heavy Metals, Regency Teas, EAM Maliban Textiles, Heritage Teas, KIK Lanka and Samson Rubber Products.

Among the top line ministries and Government departments present were the Ministry of Finance (Department of Trade Tariff and Industrial Policy), Department of Inland Revenue, Ministry of Industry and Commerce, SL Export Development Board, Ceylon Chamber of Commerce, Ministry of External Affairs, Electricity Board, Ministry of Power and Energy, while Tea Exporters’ Association, Sri Lanka Association of Manufacturers and Exporters of Rubber Products (SLAMERP), Sri Lanka Food Processors Association (SLFPA), Floriculture Produce Exporters Association (FPEA), Fruits and Vegetable Exporters Association, Live Tropical Fish Exporters’ Association and Coir Fibre Exporter’s Association (CFEA) were the export (focused) associations that entered dialogue on 2 January.

Among the national industry advisory committees involved were Advisory Committees on Footwear and Leather, on Gems, Diamonds and Jewellery, on Rubber and Plastic, and on Ceramics and Porcelain.

“Under the able leadership of President Rajapaksa and his development vision, we have realised that Sri Lanka’s future prosperity is dependent on a vibrant exports sector, among others. To this end, our export performance has been very promising with 2011 January to November exports recording US$ 9.5 billion, surging from $ 7.8 billion in the corresponding period of 2010 which is 22.2% increase on a year on year basis. What is also very encouraging to note is that our exports increase is driven by industrial sector. On behalf of the government of Sri Lanka and all its involved institutions, I salute both our export and industry communities for this achievement. We must now diversify our exports basket further and find new markets and I have directed the Export Development Board under my Ministry to increase their involvement in policy making rather than tactical and promotional initiatives,” Minister Bathiudeen said.

During the sessions, many export specific issues of private sector were resolved on the spot with some issues that are more cross cutting. The Department of Commerce informed the Forum that it had already cleared pending first and second quarter EDRS payments responding to concern raised in the First Forum by Haycarb Ltd, Global Seafoods Ltd, Finlays, Akbar Brothers, Lankohu Industris and Ceylon Tea Plantation Exports Ltd.

Minister Bathiudeen informed that the vital issue of pending EDRS payments has been now forwarded by him to the Ministry of Finance. “I am awaiting a response in this regard,” he revealed. Representatives from Akbar Brothers informed the Forum that EDRS part payments to be made in Treasury Bonds in lieu of cash are pending, which the Forum took due notice of.

Representative from Sri Lanka Association of Manufacturers and Exporters of Rubber Products (SLAMERP) reported that the issues they raised in September 2011’s First Exporters Forum have now been solved. “We are very satisfied with the solution” he said.

SLAMERP originally wanted to increase cess on raw rubber exports from 2% to 5% of FOB, to increase cess to Rs 24 per kg to encourage more investments in value added rubber production and also to allow import of raw rubber without cess when shortages of rubber productions.

The request by Ceylon Chamber of Commerce from Ministry of External Affairs to expedite service of certifying export documents and to reduce the current processing fee of Rs. 5000 per document in export document certification was positively accepted by the External Affairs Ministry responding: “If representations are made, we are ready for a new policy decision to reduce the Rs. 5000 fee to a more affordable level.”

The forum was informed by SriLankan Airlines of Horticulture Produce Exporters Association’s (FPEA) request to reduce perishable cargo rates to encourage exports has been solved.

The Ceylon Chamber of Commerce’ informed the Forum that their request to expedite implementation of single window from Sri Lanka customs has been solved since their submission in the first in the First Forum. In the previous Forum, Sri Lanka Customs stated that testing of ASYCUDA World (Automated System for Custom Data).

The Treasury has already directed Sri Lanka Customs to implement ASYCUDA World fully linking other stakeholder institutions and monitored by NCED (It was also previously revealed that the ASYCUDA software had already been deployed in full at the Ministry of Finance and would be extended to other relevant ministries).

Minister Bathiudeen informed the Ceylon Chamber of Commerce, Fruits and Vegetable Exporters Association, Live Tropical Fish Exporters’ Association, and Floriculture Produce Exporters Association (FPEA) that their request to him in the September 2011 Forum to request relevant authorities to install a wide width x-ray machine capable of accommodating pelletised cargo at air cargo village and also to provide properly trained officers to handle perishable cargo with care, has is now under discussion at the Ministry of Aviation after he forwarded it to Aviation. “My Ministry will report the progress at the next Exporters Forum,” Minister Bathiudeen said.

The Minister also announced that he is convening an all party discussion session the request by Advisory Committee on Ceramics and Porcelain (ACCP) during the first Forum for permission for industrialists to purchase LP Gas-which is very important for ceramic industry- directly from CPC using the services of existing gas suppliers in the country (The Ministry of Industry and Commerce stated it had forwarded the request to NCED pending response).

The Forum was also informed that the request during the previous Forum by Floriculture Produce Exporters Association (FPEA) from SriLankan Airlines to provide thermo blankets to cover the cargo when transporting perishable cargo from cargo village to airport to which Sri Lankan responded that it was ready assist and requested requirements of the FPEA is also ‘now solved’.

The Forum and all concerned parties also agreed that all involved parties to meet for discussions with regard to request by SR Metals, a firm involved in scrap metal, to remove ban on scrap metal during the last Forum. According the representatives of the SR Metals they are exporting 35% value added copper which they felt was subjected to the ban on export of scrap metal.

The Ministry of Finance informed the Forum that it currently does not have regulations with regard to ad hoc charges imposed by freight forwarders on exporters. “This is a liberalised sector and we have started discussions to formulate the needed regulations. In order to overcome unfair competition, if any, we also need to consider many aspects. We will report the latest progress in the next Forum” Ministry of Finance said. During the First Forum in September, Sri Lanka Association of Manufacturers and Exporters of Rubber Products (SLAMERP) requested implementation of 2011 budget proposal to bring regulations to control and manage unreasonable and ad hoc charges imposed by freight forwarders to which reps from the Ministry of Finance responded that they already commenced discussions specially with the Shipper Council on the implementation of the budget proposal.

Minister Bathiudeen representing the Forum, announced that he will schedule separate meeting and a discussion on the request made by Ally Weerasinghe Ltd & BTC Italia to remove cess on export of granite blocks (HS 2516.11).

To a request made by Alchemy Heavy Metals Ltd to remove cess on export of Ilmanite Sand (HS 2614.00.10), Rutile sand (HS 2614.00.20) and Zircon sand (HS 2615.10) the Ministry of Finance informed the Forum that it will consider an interim revision of the cess imposed but requested the firms to focus on increasing value added exports rather than raw form, for the benefit of the country.

The Forum was also informed by the Department of Inland Revenue that the issues of delays in receiving VAT refunds since April 2011 by Regency Teas Ltd is now solved.

The Department of Commerce and Department of Inland Revenue, with the agreement of by Heritage Teas Ltd & Ceylon Chamber of Commerce, informed the Forum that the issue of delays in receiving VAT refunds since April 2011 for Heritage Teas Ltd, is now solved.

Showing flexibility and going beyond its agenda, the 02 February Forum also took into consideration, in addition to the already tabled/agreed submissions, five additional submissions during the session coming from ATG Gloves, Barbara Sansoni Handlooms, Chamber of SMEs, Anberiya Ltd, and by sa leather industry player.

Many participants at the session said the session was a successful effort. Maliek De Alwis, first Vice President, Sri Lanka Food Processors Association said, “This is an effective session and many export issues that have been submitted have been solved, thankfully. The issues and solutions moved very fast and many government departments throwing their support. I believe that the Forum should introduce an online forum board or email format so before the next Exporters Forum, all the parties involved are updated so that a higher level of interaction takes place.”

Inland Revenue Commissioner General Dhammika W. Gunatilaka who was a member of the Forum’s head table said: “This is an effective mechanism. An important contribution of this series of forum is the formal reporting of issues and their solutions as well as the speed with which we see action taking place.”