CUSTOMS OMBUDSMAN SCHEME

sandman · Posted: Fri Oct 03, 2008 5:10 pm Post subject: CUSTOMS OMBUDSMAN SCHEME

ARTICLE FROM THE ISLAND BY DEVAN DANIEL :

Customs Ombudsman scheme goes abegging amidst lure of ‘rewards’by Devan Daniel

A concept paper on re-structuring and reorganizing Sri Lanka Customs highlighted the need for an Ombudsman scheme but its recommendations went unheeded.

Making a case for an Ombudsman scheme, it says that internal appeal procedures are non-existent partly due to corruption at the higher levels of the department and largely due to the reward system which gives officials a share of the penalties.

"Officers resent their decisions being overturned by superiors as it would deprive them of rewards," the paper says.

"Rationality, justice and fair-play are irrelevant (in such instances)."

"The Director General of Customs is more restrained than an outsider when dealing with his officers, particularly in light of the reward system. Customs officers have even taken the Director General to courts when their decisions have been overturned, depriving them of their rewards," the concept paper says.

The concept paper was prepared about four years ago and included several recommendations that included revising and rationalizing the Customs Law, creating a new tariff, new trade and investment laws, adopting trade facilitation mechanisms, automation of cargo clearance operations, establishing a customs training academy and a committee to give effect to these recommendations.

"Nothing has come out of this concept paper," its author, a retired Customs Director and former member of the World Customs Organisation Technical Committee, Elmo De Silva, told the Island Financial Review.

"An Ombudsman scheme is necessary not only to settle disputes but to get down to the root (the causes) of the disputes," he said.

The inflexible nature of the Customs Law is causing delays, imposition of penalties and forfeitures because the law was interpreted wrongly, either out of ignorance of the parties concerned or for corrupt reasons.

While exporters and importers are deprived of recourse to speedy redress within Customs, they are either forced or willingly pay bribes to have the goods cleared expeditiously.

The concept paper highlighted several reasons why an Ombudsman scheme is necessary.

Three rent-free days are permitted by the ports, so export and import consignments need to be cleared through customs in as shorter time as possible to avoid the accrual of penal rent.

"(It) results in customs officers making quick and often arbitrary decisions regardless of the facts of the case," the concept paper says.

Since Customs officers receive a share of the penalties as a reward, the paper says that there is a tendency for laws and regulation to be interpreted in favour of Customs. This situation can be avoided if an Ombudsman scheme was in operation.

"Regulations are vaguely cited (often non-existent regulations), in order to harass importers and exporters; the motives being questionable," the paper says.

The lack of simplified, updated and documented procedures covering imports and exports and related functions further aggravates the problems.

The concept paper says an Ombudsman scheme was necessary because corrupt practices prevalent in the customs department bordered on extortion and that the absence of stipulated procedures in conducting raids and seizing documents and goods gave officers arbitrary powers.

"There is an absence of a strong, incorruptible, hierarchical line of authority to control the actions of errant customs officers," it said.

The appeal procedure in place allows exporters and importers to seek the intervention of the minister or courts, both which cause grave financial loss due to deterioration of goods and litigation costs.

The concept paper suggests that a secretariat be appointed to assist the Ombudsman.

The Association of Clearing and Forwarding Agents (ACFA) told the Island Financial Review that it would lobby for an Ombudsman scheme while senior legal officers in its ranks called for more authority to be given to the Director General so he could control his officers.

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