Customs’ AEO traders clear cargo 22 hours faster: Study

Friday, 26 June 2026 05:13 -     - {{hitsCtrl.values.hits}}

  • Customs report shows AEO-certified traders record median cargo release time of 30 hours vs. 53 hours for non-AEO traders
  • Finance Ministry says risk-based controls support faster cargo release, effective border controls
  • Digital queue management system seen improving container movement, examination yard efficiency
  • Considerable time elapses between Customs release and cargo exiting port 
  • Closer coordination among border agencies needed to further improve cargo release times

Businesses certified under Sri Lanka Customs’ Authorised Economic Operator (AEO) Program are clearing cargo around 22 hours faster than non-certified traders, according to the country’s first fully digital Time Release Study (TRS), with the Finance Ministry saying the findings underscore the benefits of risk-based trade facilitation while highlighting further opportunities to streamline cargo clearance.

The Finance, Planning and Economic Development Ministry said the 2025 study was conducted in accordance with the World Customs Organisation’s methodology, with technical assistance from the Asian Development Bank (ADB) under its Policy-Based Lending program for Sri Lanka.

It described the exercise as the first TRS in Sri Lanka to be carried out entirely using electronic data extracted from the Automated System for Customs Data (ASYCUDA) system, reflecting progress in digitalisation and data-driven performance management at Sri Lanka Customs.

The study analysed more than 9,000 import Customs Declarations (CusDecs), including over 6,700 sea cargo declarations and more than 2,300 air cargo declarations. 

According to the Ministry, the findings provide insights into the time taken for cargo release while identifying opportunities to further improve trade facilitation without compromising effective border controls. 

It said Sri Lanka Customs has made significant progress in implementing risk-based controls and trade facilitation measures to support the speedy clearance of legitimate trade.

A key finding relates to the performance of the AEO Program, under which businesses that meet Customs’ compliance requirements receive trade facilitation benefits. 

The Ministry said AEO-certified traders recorded a median cargo release time of approximately 30 hours, compared with approximately 53 hours for non-AEO traders, translating into an average facilitation gain of about 22 hours per consignment. 

It said the findings demonstrate the value of the AEO Program and support ongoing efforts to expand it to a wider segment of the trading community.

The study also found that consignments exempted from physical examination generally achieved faster release times than those selected for inspection, illustrating the effectiveness of Customs’ risk management framework. 

At the same time, it identified scope for closer coordination among border regulatory agencies to further streamline risk-based selectivity and improve cargo release times.

According to the Ministry, a substantial share of overall clearance time occurs outside direct Customs processing. 

It identified opportunities to improve the timeliness of CusDec submission after cargo arrival, the payment of duties and taxes, the movement of containers to examination yards, and the collection of cargo after Customs has issued the release order. 

For sea cargo in particular, the study found considerable time elapses between Customs granting release and cargo exiting the port, highlighting the need for better coordination among logistics stakeholders.

In response to the findings, Sri Lanka Customs has introduced CargoFlow, an in-house digital queue management system developed by its ICT Directorate following the 2025 TRS.

The Ministry said the platform manages container movements to examination yards based on available capacity, provides priority arrangements for refrigerated and perishable cargo, and creates a digital record of container movements. 

It added that preparations are already underway for the 2026 TRS, which will broaden stakeholder engagement and deepen performance measurement across the cargo clearance process.

 

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