SLFFA calls for balanced view on controversial containers

• Calls on authorities to investigate and take action, but continue liberalisation 
• Urges to refrain from arbitrarily clamping down on logistics service providers  

The Sri Lanka Logistics and Freight Forwarders Association (SLFFA) yesterday said it was concerned about the negative publicity surrounding a controversial shipment that had been categorised as waste, and cautioned it could seriously impact the regulation of Sri Lanka’s logistics industry. 

Referring to a shipment of cargo that was imported for recycling and re-shipping, which was highlighted as a shipment of garbage, the organisation said, “We are of the view that the information which has been published was released without any detailed and clear investigation, which could create a serious impact on the reputation of Sri Lanka and its logistics industry.” 

Business such as entrepôt trade, multi-country consolidation and transshipment have been taking place in Sri Lanka for decades and within the Port of Colombo. In 2013, the logistics hub concept was created, similar to Dubai and Singapore, to create offshore operations where international and local investors can invest and provide logistics services to global clients and supply chains, bringing in much-needed foreign exchange and employment for Sri Lanka.

This consignment was imported under the Finance Act – Commercial Hub Regulations No. 1, gazetted in 2013, a part of which had already been re-exported by Hayleys Free Zone, whilst the remainder had been lying in premises in Katunayake, exposed to the elements. Under the commercial hub regulations, greater authority lies with the Board of Investment (BOI) in granting approvals, whereas certain exemptions are permitted from the Customs Ordinance. However, Customs has the authority under the Hub Act to examine any suspicious items, or a container under this law, by informing the BOI. Customs has also issued Departmental Order DOPL 934 of 7 July 2014, outlining the process to be followed.

The Sri Lanka Logistics and Freight Forwarders Association (SLFFA) observed that certain sections with vested interests have called for the withdrawal of the hub regulations, whilst allegations and counter-allegations are being levelled. Any attempts made to discredit the logistics industry, its members, and the progressive hub law, by a few interested parties and institutions, should be fully condemned.

SLFFA reiterated that a balanced view needs to be taken on this matter, bearing in mind that activities such as entrepôt trading activity, multi-country consolidation and transshipment activities by sea and air are all essential activities, vital for maintaining/enhancing Sri Lanka Ports/Airports as a transshipment hub.

Hence SLFFA called on the concerned authorities to:

Thoroughly investigate the transaction in a transparent manner, and deal with any errant parties who have violated the provisions of the Hub Act, Customs Ordinance, and environmental laws in carrying out this transaction appropriately according to the provisions of the law.

Continue the drive to further enhance the liberalisation/facilitation of the logistics process, in particular the Customs process, in areas such as entrepôt trading activity, multi-country consolidation and transshipment activities by sea and air, and refrain from arbitrarily clamping down on various sections of logistics service providers purely on account of this incident.