SME apparel exporters linked to global e-system

Sri Lanka’s SME apparel exporters are to be linked to the global customs electronic system.

“If our current preparations continue as planned, we can link our SME apparel exporters’ shipments to the ASYCUDA global e-system by May 2013. This could enhance our SME apparel sector exports thereby enhancing our $2.8 billion apparel volume,” said Minister of Industry and Commerce, Rishad Bathiudeen recently. ASYCUDA developed in Geneva by UNCTAD, is a computerised customs management system which covers most foreign trade procedures and handles manifests and customs declarations, accounting procedures, transit and suspense procedures. It operates on micro in a client server environment under UNIX and DOS operating systems and RDBMS Software.

More than 220 registered SME apparel manufacturers would benefit from ASYCUDA’s apparel export module.

In 2012, Sri Lanka’s apparel exports recorded $ 2.83 billion in earnings of which $1.53 billion was from the US and $ 1.86 billion was from the EU despite the challenging situation in those countries.

The world’s third largest retail giant Tesco is purchasing directly from Sri Lanka annually to the tune of $ 100 Mn. In 2012, 71 SME garment exporters shipped $ 46.7 million worth of apparel from Sri Lanka showing the strong unrealised growth potential they have. Among the leading such exporters were Crest Fashion Ltd, Queens Work Wear and FNTZ Garments.

The Ministry’s initial cost in implementing this global system was $ 15,000.

“The current Proposed Shipment Declaration (PSD) format used by SME apparel exporters will change to electronic submission using the power of the Web after May ‘13,” said an official of the Industry Ministry who detailed the process.

“The BOI apparel exporters have already been integrated to ASYCUDA. We are taking the other segment of apparel exporters to this global system which is only cost saving in terms of time and money but speedier clearance and paperless process are among the accruing advantages,” he said.

Once they are linked, the SME apparel exporters will not be required to submit their export shipment documentations called Proposed Shipment Declaration (PSD) format, in multiple copies, to various agencies such as the Industry Ministry and Customs.

Instead, by a single click of a mouse under ASYCUDA, the documents can be submitted to all the agencies immediately to receive export shipment clearance.