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An in-depth understanding of trading processes is required in order to identify areas that create bottlenecks in trade and to take measures to remove such bottlenecks. Towards this end, this study examines the trading procedures and processes for two export and two import products of Sri Lanka. The study involves mapping the processes involved in the export of tea to Japan and tyres to India, and the processes involved in the import of motor vehicles from Japan and textiles from India, through a business process analysis. This study has attempted to list all the required documents and all procedural requirements from the point of order to shipment, and to also estimate the costs of trade for the selected products.

By Deshal de Mel, Suwendrani Jayaratne and Dharshani Premaratne
An in-depth understanding of trading processes is required in order to identify areas that create bottlenecks in trade and to take measures to remove such bottlenecks. Towards this end, this study examines the trading procedures and processes for two export and two import products of Sri Lanka. The study involves mapping the processes involved in the export of tea to Japan and tyres to India, and the processes involved in the import of motor vehicles from Japan and textiles from India, through a business process analysis. This study has attempted to list all the required documents and all procedural requirements from the point of order to shipment, and to also estimate the costs of trade for the selected products.
The study found that there are 24 documents involved in exporting tea, 19 documents required for the export of rubber tyres, 18 documents required for the import of cars and 19 documents required for the import of textiles, while the number of agencies involved ranges from five to nine. The number of days taken to export tea is 17.06, while 16.9 days are required to export rubber. To import vehicles and textiles takes 6.4 and 6.05 days, respectively. The costs range from USD 79 (to import a vehicle) to USD 677 (to import a container of textiles). Several of these figures differ significantly from the estimates published by the World Bank.
The study found no major differences in terms of the process or time taken by large companies compared with medium-sized traders, but the study found that Board of Investment approved companies have some advantage over other countries in terms of the time taken to trade.
The majority of the companies interviewed for the study have been in business for a long time and employ Customs House Agents or freight forwarders who are well versed in the processes. Thus, the traders are accustomed to the processes and have few complaints. Nevertheless, they identified the need to automate trade procedures as a priority area for attention, and raised a number of other issues.
From the findings of the study, it is recommended that steps be taken to:
Take forward the computerization and automation of trade procedures.
Issue the Certificate of Origin (COO) electronically and ensure acceptance by trading partner countries of the electronic COO.
Open customs clearance during weekends and holidays and remove overtime fees.
Better control the rates charged by shipping lines and freight forwarders.
Develop credit facilities at the ports.
Put all related agencies under one roof.

Contact
Trade, Investment and Innovation Division +66 2 288-1234 [email protected]