Mujibur tables Customs inquiry report on release of high-risk containers

• SJB MP Mujibur Rahman alleges Govt. hiding failures of SL Customs, despite security, revenue and health risks
• Reveals 309 high-risk “red” containers released without mandatory inspection, violating Customs procedures
• Report questions justification despite Customs’ claims of congestion-prompted releases
• Since July 2024, 999 red-classified containers released on 13 occasions without proper screening or follow-up
• Committee notes Customs management exceeds legal authority by bypassing required inspections
• Among flagged containers, 114 show scan uncertainties but are released anyway
• Report recommends internal investigations and accountability for Customs officers involved
• Committee suggests halting current container release system, conducting post-audits, using AI scanning and performing forensic audit
• Rahman warns repeated failures undermine Customs’ fundamental role in protecting Sri Lanka

SJB MP Mujibur Rahman

The main Opposition party, Samagi Jana Balawegaya (SJB) MP Mujibur Rahman yesterday alleged the Government was concealing the findings of a critical Customs inquiry, warning that failures to follow mandatory scanning procedures for high-risk cargo could have jeopardised the country’s security, revenue, and public health.

Speaking in Parliament, he charged that the administration had deliberately withheld the Inquiry Committee’s report from the legislators, prompting him to formally table it on the House floor. 

The said committee was appointed based on the comments made by the Sri Lanka Customs Department to the media on 18 January 2025 regarding the release of 323 high-risk customs containers identified as ‘red’ by the Risk Management System from the Customs premises without physical inspection. Thereafter, a four-member committee, headed by a Deputy Secretary to the Treasury, was appointed by the Secretary to the Treasury dated 30 January 2025 to examine the process of releasing the said containers and submit a report.

The report details serious lapses in the handling of 309 ‘red-labelled’ containers identified as high-risk under the Customs Risk Management System, which, according to Rahman, were released without mandatory inspection.

“Of the 151 red-labelled containers that were required to undergo scanning, 37 were released without any scan whatsoever,” he told Parliament.

He added that another 103 containers subject to scanning requirements were also released without following proper procedures. 

In an apparent irregularity, Rahman noted two containers had already been released on 17 January 2025, a day before the official decision was taken to allow the release of the group of containers, raising questions about procedural transparency.

The Inquiry Committee’s report, which Rahman read into the record, highlights a concerning matter of Customs management. It confirmed that the Customs Department’s top leadership had authorised the release of high-risk containers without mandatory physical inspections, citing efforts to ease congestion inside Customs premises. 

However, the Committee concluded that this decision violated the Department’s own standard operating procedures, laid down under Departmental Order No. 1531, which was designed to apply international risk-based cargo controls without human intervention. 

“According to the conclusions of the report, it highlighted that the release of these containers is contrary to the accepted procedures established by the Departmental Orders,” he read out, noting that they have observed that the Customs Ordinance does not give the Director-General powers to override mandatory physical inspections for high-risk containers. 

Since July 2024, the Inquiry Committee found a total of 999 red-classified containers were released on 13 separate occasions without proper screening. However, no subsequent audits or inspections had been conducted to confirm whether these containers might have contained contraband, harmful goods, or items posing public health risk.

“It is not possible to express a definite opinion on the actual contents of these ‘red’-classified containers and the actual impact on the security, health, or State revenue of the country. Accordingly, the Customs Department has put the basic responsibilities of the Customs Department at risk by not taking the necessary prudent follow-up measures for risk management when necessary,” the conclusions of the report added.

The report also cast doubt on the explanation that the measures were solely intended to resolve congestion. On several dates, the number of containers released was a modest 13 on one occasion, 63 on another, calling into question whether congestion was truly the driving factor.

The Inquiry Committee pointed out that if the policy had been genuinely aimed at clearing backlogs, Customs senior management should have transparently notified all divisions and applied proper safeguards to track the released containers.

Alarmingly, the report noted that among the 151 containers released on 18 January 2025, 114 were scanned and scan results had flagged significant uncertainties about their contents and quantities. 

Even after written instructions were issued to conduct further investigations, Customs officials allegedly went ahead with the releases without addressing these concerns. 

“Despite this, the officers responsible for releasing the relevant containers without paying attention to this matter have abdicated their duty and responsibility, and an internal investigation should be conducted against those officers and necessary further action should be taken,” it recommended.

Rahman demanded the Government hold Custom officials accountable and warned of potential consequences if such lapses continued. 

“This is not just about a few containers, but the fundamental responsibility of Sri Lanka Customs to protect the country,” he said.

Accordingly, in the review of the Customs container release process, the Committee observed that the method of releasing the containers was against the law, that accepted methods and procedures had been violated, that the removal of high-risk containers without physical inspection may have created a situation detrimental to State revenue, national security, and public health, that issues were observed as to whether the release of the containers was actually sufficient to resolve the existing Customs congestion, that the Committee appointed to release the containers had not acted within the scope of their duties with transparency, and that the current Risk Management System does not reflect the true risk.

As per the Executive Summary, the release of 309 containers, including containers classified as ‘red,’ from the Customs premises without physical inspection, in violation of the risk management methodology, which is the accepted procedure of the Customs Department, in accordance with the powers granted to the Director General of Customs by the Customs Ordinance to release containers, with the aim of resolving the recent heavy container congestion at the Sri Lanka Customs premises, is observed to be an act exceeding the powers of general authority vested in the Director General of Customs by the Customs Ordinance.

“The release of containers classified as ‘red’ by the Committee outside the accepted procedure of container release in the Customs Department is a violation of procedures, and the Director-General’s approval to act on the Committee is an excess of the powers granted to him by law. Also, the role of the Customs Department has been compromised by not taking adequate follow-up measures to minimise the risk that could have arisen from the release of containers classified as ‘red’ by a Committee without physical inspection, especially the conclusion that an internal investigation should be conducted regarding the release without physical inspection of the uncertainties identified during the scan inspections,” it reads.

In addition, a Committee has made recommendations such as suspending the further implementation of the container release system, conducting a post-audit to assess the economic loss and irregularities caused by the release of the containers in question, directly sharing information related to container clearance with container importers, using AI technology for container scanning, and conducting a forensic audit of the containers released by the Committee.

The Sri Lanka Customs Department is one of the oldest Government Departments in Sri Lanka, established during the British colonial period in 1806. The main functions of the Department are the levy and collection of Customs duties, regulation of imports and exports, prevention of smuggling, and enforcement of trade laws.