ephyto Country Report for Sri Lanka

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1 ephyto Country Report for Sri Lanka First Draft compiled by Dr Chin Karunaratne September 2016

2 Table of Contents EXECUTIVE SUMMARY: Assessment Context/Approach Organisational Structure of Ministry of Agriculture in Sri Lanka Status of Exports in Sri Lanka Exports: Export clearance at the Colombo sea port: Export clearance at the Colombo air port: Export clearance at other locations (Gannoruwa; Mattala air port and sea port): Status of Imports in Sri Lanka Imports: Import clearance of plant and plant products at air port and sea port in Sri Lanka Potential for ephyto Sustainability Country Requirements for Proposed ephyto Development Assessment of physical infrastructure needs Assessment of resource development Assessment of capacity building needs Assessment of legislative framework Stakeholder consultations Policy framework ephyto funding capacity of Sri Lanka Training of officers for GeNS in Sri Lanka Operational Process Assessment of activities undertaken at the sea port and air port for exports after introduction of GeNS Assessment of activities undertaken for imports after introduction of GeNS ephyto Change Assessment Appendices ephyto Background Status of Action Items and their Outcomes Workshop Agenda Details of Participants... 59

3 Table of Figures FIGURE 1: VARIOUS TASKS UNDERTAKEN AT THE COLOMBO SEA PORT... 9 FIGURE 2: EXPORT BOOK WITH DETAILS OF REGISTRATION NUMBER... 9 FIGURE 3: EXPORT BOOK FOR TEA PRODUCTS FIGURE 4: MISCELLANEOUS PRODUCTS LISTED IN ONE EXPORT BOOK FIGURE 5: APPLICATION FOR PHYTOSANITARY CERTIFICATE FIGURES 6 & 7: BILL OF LADING AND CUSTOMS CLEARANCE FIGURES 8 & 9: CARGO DEPATCH NOTICE AND PHYTOSANITARY CERTIFICATE FROM SRI LANKA 12 FIGURES 10: NOTICE OF ARRIVAL AGRICULTURAL COMMODITIES EXPORTED TO SRI LANKA FIGURE 11: AGRICULTURAL COMMODITIES EXPORTED TO EU COUNTRIES WITH THEIR SAMPLE SIZES FIGURE 12: TESTING PROCEDURE FOR PHYTOSANITARY MEASURES BY THE NPQS SRI LANKA FIGURE 13: EXPORT CLEARANCE OF PLANTS AND PLANT PRODUCTS IN SRI LANKA (SEA PORT) FIGURE 14: EXPORT CLEARANCE OF PLANTS AND PLANT PRODUCTS IN SRI LANKA (AIR PORT) FIGURE 15: IMPORT CLEARANCE OF PLANT AND PLANT PRODUCTS IN SRI LANKA (AIR PORT & SEA PORT) FIGURE 16: PROCESS OF EXPORT PHYTOSANITARY CLEARANCE FROM THE COLOMBO SEA PORT (EXPORTS WITHOUT EPHYTO) FIGURE 17: PROCESS OF EXPORT PHYTOSANITARY CLEARANCE FROM THE COLOMBO SEA PORT (EXPORTS WITH EPHYTO).. 24 FIGURE 18: PROCESS OF EXPORT PHYTOSANITARY CLEARANCE FROM THE COLOMBO AIR PORT & NPQS KATUNAYAKE (EXPORTS WITHOUT EPHYTO) FIGURE 19: PROCESS OF EXPORT PHYTOSANITARY CLEARANCE FROM THE COLOMBO AIR PORT & NPQS KATUNAYAKE (EXPORTS WITH EPHYTO) FIGURE 20: PROCESS OF IMPORT PHYTOSANITARY CLEARANCE FROM THE COLOMBO SEA PORT, AIR PORT, & NPQS KATUNAYAKE (IMPORTS WITHOUT EPHYTO) FIGURE 21: PROCESS OF IMPORT PHYTOSANITARY CLEARANCE FROM THE COLOMBO SEA PORT, AIR PORT, & NPQS KATUNAYAKE (IMPORTS WITH EPHYTO) FIGURE 22: EPHYTO RELATED CPM PROCESS... 33

4 EXECUTIVE SUMMARY: Country report - Sri Lanka This report captures the outcomes of the ephyto Project Planning (EPP) workshop and field visit with officers from the Department of Agriculture in Sri Lanka on 6 to10 June This workshop is the first ephyto related workshop conducted by the Department of Agriculture and Water Resources (the department), Australia with guidance from the ephyto Steering Group (ESG) and the International Plant Protection Convention (IPPC). The objectives of the workshop was to discuss the ephyto project for setting up a Generic ephyto National System (GeNS) in Sri Lanka as part of the IPPC global ephyto Solution. This report will detail the import and export process maps of Sri Lanka before and after ephyto implementation, key observations, and action items encapsulated from the workshop. This report does not provide export and import process maps for Gannoruwa and Mattala quarantine stations as they had not been inspected when finalising this report. It may be reasonably assumed that their activities may not be different to existing process maps for Colombo sea port and air port considering the low volume of phytosanitary certificates released from these two locations. Recommendations: The National Plant Quarantine Service in Sri Lanka should consider the following recommendations for successful GeNS implementation and smooth functioning of its operations. a). The work of Project Management Team should be carefully supervised and supported by Executive so that it is undertaken in a team environment where capabilities of relevant officers in areas of their expertise are identified, utilised and absorbed into GeNS implementation and management. b). The process maps provided in this report should be used as they will provide guidance to regulate business processes of exports/imports in air ports and sea ports. c). Sri Lanka should review their current phytosanitary certificate charges to enable extra revenue gained by this exercise to supplement future funding for ephyto GeNS and certificate exchange charges. d). Sri Lanka should arrange to allocate sufficient space for setting up GeNS terminals at the Colombo sea port and air port. e). Since the release of internal or external funds for implementation of GeNS will be progress driven, the National Plant Quarantine Service (NPQS) in Sri Lanka should advise the provider on the progress of the work undertaken/milestones achieved for various tasks as soon as practical. f). After implementation of GeNS in Sri Lanka, business processes connected with phytosanitary certification should be further regulated/changed by the relevant business areas in Sri Lanka to suit business needs/requirements to maximise process driven efficiencies.

5 1. Assessment Country report - Sri Lanka Sri Lanka has huge potential for ephyto implementation due to its strategic location, knowledge of processes and enthusiasm of exporters and importers. Due to resource limitations, Sri Lanka could not appoint a full time Project Manager to progress the ephyto work. The IPPC country co-ordinator who in his capacity as the additional Director of NPQS, Katunayake is supervising this project as the Project Manager. NPQS Sri Lanka appointed a Project Management Team to compile its country work plan to undertake ephyto work with senior officers at the sea port and air port. The process map compiled by Sri Lanka for the workshop required further revision as it did not detail the training requirements and change assessments on export/import processes. The department of Agriculture and Water Resources, Australia had a teleconference on the 2 nd September 2016 with the Director General of Agriculture (Sri Lanka) to progress and finalising future action items associated with ephyto implementation. The communication between officers involved in the ephyto project requires stengthening. The co-ordination of activities over the development of ephyto country work plan by the Project Management Team needs to be undertaken regularly, as this will assist in the smooth implementation and continuation of GeNS. The Project Manager needs to undertake an active role in further revising and finalising the draft country work plan provided on 31 August The team work between various individuals is extremely important to achieve common goals. Many senior officers of the department expressed their support for ephyto implementation stating that this was a long overdue task but did not have sufficient time to drive the project activities. The Project Manager informed that Sri Lanka is currently considering another software system to manage various phytosanitary activities as requested by the Ministry of Agriculture. The overall impact of this system conflicting with GeNS in Sri Lanka after implementation has not been assessed at this stage. In conclusion, close supervision and coordination of GeNS implementation with the Project Management team is required to implement and continue this work with NPQS, Sri Lanka. Project Manager has to play an active role to fulfil these requirements.

6 2. Context/Approach Country report - Sri Lanka Based on the global survey conducted by the IPPC, eight countries (Australia; Chile; China; Kenya; The Republic of Korea; The Netherlands; New Zealand; USA) have confirmed their willingness to participate in piloting the hub with their existing national systems. Furthermore, 6 countries (Ecuador; Egypt; Ghana; Guatemala; Samoa; Sri Lanka) have confirmed their willingness to participate in the pilot using GeNS after implementation. The IPPC Secretariat is working with other international organisations, such as CODEX Alimentarius, the World Organisation of Animal Health (OIE), the United Nations Centre for Trade and Developments (UNCTAD), the World Customs Organisation (WTO), along with international industry associations and technical experts in electronic phytosanitary certification from the Food and Agriculture Organisation s (FAO) regions to develop the ephyto Solution. The ephyto development has commenced in July 2016 with the development of the hub and GeNS by UNICC. It is expected that development will require seven to eight months to complete followed by piloting the system with 8 to10 countries. Piloting will continue for three to four months to determine the efficiency of the system, the operating costs and to establish implementation tools that will assist countries in adopting the Solution. Following this work, the pilot countries selected for ephyto implementation in the first round may begin exchange. Australia has drafted a detailed work plan for ephyto development in APPPC pilot countries. This work plan, approved by the APPPC ephyto Working Group, was tabled at the 29 th session of the APPPC meeting in September 2015 in Indonesia for endorsement. It has since been expanded to develop a standard work plan that will be used for implementing the IPPC Global ephyto Solution (National and GeNS) in various countries. 3. Organisational Structure of Ministry of Agriculture in Sri Lanka The Ministry of Agriculture in Sri Lanka is the governing the body for providing guidance and coordination of various activities for sustainable management and development of agriculture sector in the country. Of the departments and institutes that directly come under its administration organisations working on implementation of GeNS in Sri Lanka are marked in Red : Department of Agriculture Department of Agrarian Development Agricultural & Agrarian Insurance Board Hector Kobbekaduwa Agrarian Research and Training Institute (HARTI) Sri Lanka Council for Agricultural Policy (CARP) Institute of Post-Harvest Technology (IPHT) National Food Promotion Board Colombo Commercial Fertilizer Co. Ltd Ceylon Fertilizer Co. Ltd Of the above institutes, the Department of Agriculture is responsible for the management of phytosanitary exchanges for imports and exports. The work associated with the ephyto implementation is undertaken by this department. The head of the department is the Director General of Agriculture with Deputy Director Generals, Directors, Additional Directors, Deputy Directors, and Assistant Directors in charge of various institutes listed below.

7 The Country Plant Quarantine report - Service Sri Lanka (PQS), Sri Lanka has requested setting up sixteen ephyto Document terminals 13 for GeNS implementation at various locations in Sri Lanka. ephyto terminals proposed by the Department of Agriculture, Sri Lanka Plant Quarantine Service: (sixteen ephyto units in total) National Plant Quarantine Service (NPQS), Katunayake (two ephyto units) Plant Quarantine Station Bandaranayake Int. Air Port, Katunayake (six ephyto units) Plant Quarantine Station Rajapaksha Int. Air Port, Katunayake (one ephyto unit) Plant Quarantine Station Sea Port, Colombo (six ephyto units) Plant Quarantine Unit Gannoruwa (one ephyto unit) Information Technnology Information and Communication Center (ICC), Peradeniya (proposed ephyto management centre) 4. Status of Exports in Sri Lanka 4.1 Exports: Exports in Sri Lanka averaged US$ million from 2003 until 2016, reaching an all-time high of US$ million in March of 2014 and a record low of US$ million in April of Exports in Sri Lanka are reported by the Central Bank of Sri Lanka. Sri Lanka exports mostly textiles and garments (52% of total exports) and tea (17%). Others include spices, gems, coconut products, rubber, and fish. Main export partners are United States, United Kingdom, Germany, Belgium, and Italy. Major exports to Australia are tea & mate (AU $34 million), textile clothing (AU $26 million), fixed vegetable oils and fats (AU $15 million) and textile clothing accessories (AU $15 million). The number of export phytosanitary certificates issued annually by Sri Lanka is 108,000 which included 800 re-export phytosanitary certificates (ephyto Survey, 2015). The top five countries for Sri Lankan exports are India, UAE, Russia, USA, and Germany. 4.2 Export clearance at the Colombo sea port: The Plant Quarantine Station at the sea port has two floors where various export related tasks are undertaken. The export registration and sample checking is done in the ground floor and other activities are confined to the upper floor (Figure 1). It was noticed that space was very limited in the ground floor for setting up six units (terminals) at the sea port. This issue may be further resolved by having the upper floor better utilised by relocating the current storage area(s) to a different location. The Ministry of Agricultue is planning to build a second floor and the ephyto terminals may be relocated after this work was completed. Although necessary funds are allocated for this work, it is highly unlikely that renovation would be finalised before GeNS is implemented. Colombo sea port uses export registration books to record details of applications submitted to them (Figure 2). Separate record books are maintained for major exports such as tea, vegetable, fruit, grain, spices, areca nut, rubber, coconut, and tuber products (Figure 3). Miscellaneous exports are recorded in a separate book (Figure 4). Recording information in log books (registers) is cumbersome and there is a huge potential for loss of information in the event a register ever gets lost. No contingency plans are currently in place at the sea port to retrieve registration records whenever a register gets misplaced.

8 The next stage in the export clearance process is to apply for phytosanitary certificate after consignment inspection/sample testing/laboratory tests are done to get the prior approval for export. The application for phytosanitary certificate for export (Figure 5) is lodged by exporter with the details of product. As listed in the process mapping (Figures 16 to 21), more documents such as test reports, customs clearance, bill of lading and cargo despatch notice (Figures 6, 7 and 8) are required as part of the preexport mandatory inspection for conformity before phytosanitary certificate (Figure 9) is issued. When the GeNS is implemented in Sri Lanka, the record books will become redundant as the information will be electronically stored. The processes that may get redundant after GeNS is implemented are specified in the export process maps (Figures 15 and 16) for Sri Lanka. 4.3 Export clearance at the Colombo air port: The export clearance is done at the National Plant Quarantine Station (NPQS) at Katunayake and at the Colombo air port premises. The pre-export mandatory inspection for conformity is done at NPQS premises for consignments destined for European Union (EU) countries (Figure 11). These phytosanitary certificates have details of commodities listed in one certificate for mixed consignments. The pre-export mandatory inspection at the air port is mainly done for consignments leaving for the Maldives, Middle East and some Asian countries (e.g. Pakistan) where phytosanitary certificates do not require additional declarations. These consignments normally do not require test reports, treatments records, and other certificates and the clearance is done within a very short time after inspection. The issuance of phytosanitary certificates are completed for these consignments where details of goods are attached in a separate sheet enclosed with the phytosanitary certificate. This matter was mentioned to the inspection facility at the Katunayake air port citing that there may be potential for fraud, as the details of commodities are not listed in the phytosanitary certificate. The officers were also informed that there should not be differences in phytosanitary certificates destined for EU and Asian countries on listing of details of consignments (EU phyto certificates have listings in their certificates and no separate attachments are enclosed). As per advice provided, this matter was promptly rectified by NPQS in Sri Lanka. Sampling of consignments for air transport are done as per the number of boxes/cartons submitted for export (Table 1).

9 Figure 1: Various tasks undertaken at the Colombo Sea port Figure 2: Export book with details of registration number

10 Figure 3: Export Book for Tea Products Figure 4: Miscellaneous Products listed in one Export Book

11 Figure 5: Application for Phytosanitary Certificate Figures 6 & 7: Bill of Lading and Customs Clearance

12 Country report - Sri Lanka Figures 8 & 9: Cargo Despatch Notice and Phytosanitary Certificate from Sri Lanka Table 1 Sample sizes for export inspection Number of Boxes/Cartons Sample Size (03 Boxes) 80 pieces (10 Boxes) 100 pieces (30 Boxes) 300 pieces (50 Boxes) 500 pieces (100 Boxes) 1000 pieces

13 4.4 Export clearance at other locations (Gannoruwa; Mattala air port and sea port): There could be potential differences associated with inspection and issuance of phytosanitary certificates in the afore-stated locations. As a new building for export and import clearance is currently being built at the Mattala air port and sea port, the volume of phytosanitary certificates currently processed from these locations is minimal. The phytosanitary certificates processed from Mattala may increase within next 10 years due to infrastructure projects currently undertaken by the government with Chinese investment. The building of Colombo port city (Sri Lanka), and the Maritime Silk Road by China in the region may also contribute to this increase. Necessary arrangements are currently underway to visit these locations for further observation before GeNS is implemented in Sri Lanka. 5. Status of Imports in Sri Lanka 5.1 Imports: Imports in Sri Lanka averaged US $ million from 2001 until 2016, reaching an all-time high of US $ million in November of 2011 and a record low of US $408 million in February of Imports in Sri Lanka are reported by the Central Bank of Sri Lanka. Sri Lanka imports petroleum, textile fabrics, food, machinery and transportation equipment. Main import partners are India, China, Iran, and Singapore. Major imports from Australia are vegetables (AU $107 million), milk, cream, whey & yoghurt (AU $53 million), wheat (AU $45 million), paper and paperboard (AU $17 million). The number of import phytosanitary certificates received annually by Sri Lanka is 25,000 (ephyto Survey, 2015). The top five countries for Sri Lankan imports are China, India, Malaysia, USA, Germany, and Pakistan. 5.2 Import clearance of plant and plant products at air port and sea port in Sri Lanka The import clearance of the consignment is undertaken in Sri Lanka with customs. Sri Lanka customs will send a Notice of Arrival addressed to the National Plant Quarantine Station (NPQS), sea port/air port Colombo which will have the details of goods and relevant documentation (Figure 10). The consignment is registered by relevant NPQS and document checks are undertaken to verify that the consignment is in order for acceptance. All imports to Sri Lanka should be supported by a valid import permit, phytosanitary certificate issued by the exporting country, air way bill, or bill of lading for shipping.

14 Figure 10: Notice of Arrival Agricultural Commodities exported to Sri Lanka Figure 11: Agricultural Commodities exported to EU countries with their sample sizes

15 The Country consignments report will - have Sri Lanka treatment certificates if mandatory treatments such as fumigation Document are 13 required prior to export. If seeds are exported, they should be certified with a certificate issued by the International Seed Testing Association (ISTA) issued by the official seed certification agency of the country of export. For those countries that do not have ISTA representation seeds analysis report from the official seed certification agency is required. The other certificates that would be looked at for pre-export mandatory inspection for conformity depend on the type of commodity. For instance, it may be non GMO certificate or faecal matter contamination report. If documentations are in order after verification, inspection for pests is carried out. If pests are detected the consignment may be released from quarantine after further treatments are performed by the importer. NPQS (Sri Lanka) may advise the importer for rejection of entry, re-export, or destruction of consignment after inspection if the consignment does not conform with the import conditions. For some consignments laboratory testing and post entry isolation are needed to ensure that they are safe from pests and diseases. These consignments may be rejected, re-exported, destroyed, or further treated depending on the outcome of additional testing. Some consignments will be released soon after inspection if they do not pose a pest risk and conform with quarantine requirements stipulated in the import permit. 6. Potential for ephyto Sustainability Sri Lanka has informed that its key industry bodies would endorse the move for implementation of GeNS as potential benefits will significantly surpass the initial costs. Sri Lanka has stated that it could contribute a fee for ongoing ephyto exchange/maintenance after implementation with the possibility of recovering this fee from ephyto users (exporters and importers). Allocations from the government budget has been identified as possible to ensure the sustainability of GeNS. Sri Lanka also has the capacity to develop contingency plans to regulate its business processes after GeNS is implemented. 7. Country Requirements for Proposed ephyto Development 7.1 Assessment of physical infrastructure needs The quarantine centres that would issue phytosanitary certificates after implementation of GeNS have adequate information technology facilities (infrastructure, equipment and human resources). Both terminals at the Colombo sea port and air port will require further expansion to support operational staff as installation of twelve ephyto units would require more space. The removal of redundant furniture and cabinets may provide more room for installations in the Colombo sea port. The installations at the NPQS centre at Karunanayake will not be challenging as this facility has sufficient space and physical infrastructure. The existing building at the Colombo sea port will undergo further expansion with another floor being built and this would significantly improve its capacity to handle six ephyto units. Some land has been allocated closer to the air port to build a phyotosanitary clearance centre to handle air shipments. After this facility is built some air clearance currently undertaken by NPQS in Katunayake for EU countries will be moved to the new facility and all phytosanitary clearance of air freight will be handled in one place. Further assessments of physical infrastructure at Gannoruwa and Mattala Plant Quarantine Stations will be undertaken in December 2016 during the second country visit. The upgrading of current system needs for GeNS may require more facilities to be developed. More equipment such as computers with up to date software would need to be purchased for new networking and staff will need to be trained to manage GeNS after implementation.

16 Country 7.2 Assessment report - Sri of Lanka resource development Sri Lanka would require more resources (e.g. software) to further expand its computer terminals after ephyto implementation. The staff of NPQS, Sri Lanka have previously attended overseas training programmes and workshops relating to their areas of expertise. Currently the staff have good technical knowledge and expertise to drive the ephyto solution forward. However, after GeNS implementation further training on project management and guidance may need to be arranged to identify efficiencies and regulate business processes. Further funding for resource development is required to install ephyto terminals (sea port and air port) during implementation. More details on support required for resource development should be available in the country work plan of Sri Lanka. 7.3 Assessment of capacity building needs Sri Lanka has estimated that they may need approximately SLR 5 million to develop ephyto capacity development in various locations where phytosanitary certificates will be issued/received (ephyto Survey, 2015). Some of the key areas where capacity building would be required are training for officers, implementation and regulation of its current business processes. More equipment with up to date software has to be purchased, networking has to be established, and officers need to be trained to manage the ephyto system after implementation. 7.4 Assessment of legislative framework The legislation in Sri Lanka allows electronic certificates and authentication for imports and exports. It supports the receipt and issuance of ISPM 12 (Appendix 1) compliant phytosanitary certificates. The legislation does not preclude that phytosanitary certificates must be issued as hard copy for exports and imports. The current charge levied for issuing phytosanitary certificate in Sri Lanka is about AU $1. The increase of this fee to generate supplementary funding for ephyto implementation is a possibility provided industry is briefed in advance. Future increases of phytosanitary certificate charges may require further changes done to the legislative framework in Sri Lanka. This process could take more than 12 months for finalisation as changes need to be ratified by the parliament.

17 Country 7.5 Stakeholder report - Sri consultations Lanka Sri Lanka currently does not maintain a stakeholder register (e.g. industry groups, exporters, importers etc.) to identify users of phytosanitary certificates in the country. This was an action item discussed at the ephyto workshop held in June Sri Lanka is currently compiling a list of stakeholders associated with their phytosanitary certificates. These details have been provided to the Information and Communication Centre (ICC), Peradeniya, Sri Lanka for compiling the national Database. ICC will be responsible for upgrading, updating and designing of the National Stakeholder Database (NSD) and maintaining its commercial confidentiality between various trading partners. Further stakeholder consultations would be underway through an industry awareness session planned with the NPQS, Katunayake in December This workshop will brief stakeholders about the role played by IPPC on implementing GeNS in developing countries and its immediate benefits for the industry after implementation. 7.6 Policy framework Sri Lanka advised that it has internal policy approval to participate in GeNS implementation. It has staff resources (e.g. project management, information technology etc.) with sound knowledge that can be deployed to work on implementation of GeNS. Sri Lanka will also have the capacity to contribute some staff (IT officers), infra-structure and equipment facilities for expansion of GeNS when the project is implemented. Sri Lanka will be required to review its current phytosanitary certificate charge, as this fee has not been amended over a number of years. Sri Lanka will need to get the approval to make these amendments from the Cabinet since its quarantine legislation may need to be changed. 7.7 ephyto funding capacity of Sri Lanka Sri Lanka will need further funding for the purchase and installing sixteen computer terminals plus ephyto benefit analysis that would be undertaken in two stages (pre and post implementation of GeNS). Sri Lanka will be able to provide support in-kind to undertake implementation of GeNS in Sri Lanka. It was mentioned at the workshop that Sri Lanka would have to seek approval for supplementary funding via a Cabinet paper to cover costs associated with the infra-structure purchases after estimations are completed.

18 More details of the support (financial and in-kind) needed by Sri Lanka should be presented in the country work plan (e.g. change assessment) for discussion and finalisation during the country visit in December Training of officers for GeNS in Sri Lanka Sri Lanka should make arrangements to assess their training requirments when undertaking their change assessments. The training register should list the type of required training, location and number of personnel who would participate in the training programme. Sri Lanka has the capacity to train its quarantine officers via officers trained by UNICC trainers. The training of officers may be ongoing when there are system updates to the GeNS after implementation in participating countries. UNICC will inform participating countries about such changes in advance so that countries could organise training of their officers as per the guidance provided by UNICC. The Training Strategy (Appendix D) of the work plan provides a template for staff to complete when analysing their training needs. This document outlines the areas that need to be considered when conducting a Training Neeeds Analysis (TNA) by participating countries.

19 8. Operational Process Country report - Sri Lanka 01-Application (Exporter) Exporter makes a request for phytosanitary application from the NPQS (PQ Operation Division) Submission of completed application to the NPQS (PQ Operation Division) 02-Registration (Plant Quarantine Officer) Plant Quarantine staff (PQ, Operation division) register the application after evaluating the content of the request 03-Field Inspection/ Treatment (Plant Quarantine Officer) Notify the relevant Technical Division for Inspection /Treatment Inspection Treatment 04-Analysis (Plant Quarantine Officer) PQ officer visit the site Sampling Container Yard (Large Qty) DOA Fumigation (Small Qty) Laboratory testing for phytosanitary measures Final Report analysed by chief of the each Technical Division Register treatment provider Supervising & Inspection (if requested) Review inspection outcome by the Chief PQ Officer 05-Approval (Chief Plant Quarantine Officer) Notify the Exporter Submission of report to the exit point for phytosanitary certification Figure 12: Procedure for Phytosanitary Measures by the NPQS Sri Lanka

20 Registration of Exporters Request for Export Registration Consignment Inspection/ Sample Testing/ Laboratory Tests (NPQS/ or other laboratories) Prior-Approval for Export Pre Export Mandatory Verification for conformity Final Approval for Export Test Reports Treatment Certification No Objection Letters from relevant Institutes Other Certificates Bill of Lading Parties copy Department of Customs Issuance of Phytosanitary Certificate Figure 13: Export clearance of plants and plant products in Sri Lanka (Sea port)

21 Registration of Exporters Submission of Export Application with Commodity List Pre Export Mandatory Verification for Conformity Inspection of Consignment Test Reports Treatment Certification No objection letters from relevant parties Other Certificates Final Approval for Export Issuance of Phytosanitary Certificate Figure 14: Export clearance of plants and plant products in Sri Lanka (Air port)

22 Custom Notification on the Consignment Entry Registration of Import Consignment Document Checks Document Valid 13 Import Permit Phytosanitary certificate Airway Bill/Bill of Lading Invoice ISTA/ Analysis Report Treatment Certificate Rejection of Entry, Re-export, Destruction Treatment Inspection Laboratory Testing/ Post Entry Isolation Release Fig. 15: Import clearance of plant and plant products in Sri Lanka (Air port & Sea port)

23 Fig. 16: Process of Export Phytosanitary Clearance from the Colombo Sea port (Exports without ephyto) Request Export Permit Conduct Inspection Certify Consignment Customs Clearence (Sea Export) Inputs: Supporting documentation and processing records Activities: 1. Notice of Intention for Export 2. Assess Notice of Intention 3. Request further information 4. Export Registration via in-house registers 5. Request and schedule inspection Inputs: Inspection appointment Activities: 1. Inspect container or vessel 2. Select and inspect consignment with sample testing or laboratory tests 3. Record/Submit inspection results in registers 4. Pre-Approve/Reject consignment for export 5. Pre-export mandatory verification for conformity as per process map for sea port Inputs: Compliant product Inspection records Supporting documentation Pre-Approval for export Activities: 1. Assess documents 2. Approve/Reject consignment for export 3. Issue invoice 4. Issue phytosanitary certificate manually Key: Activity currently undertaken by exporter Activity currently undertaken by department Changed Activity after ephyto implementation Redundant Activity after ephyto implementation 5. Export consignment Outputs: Outputs: Inspection appointment Notification OK to proceed to the next stage Compliant product Inspection records Supporting documentation Pre-Approval for export Outputs: Compliant consignment Final approval for export

24 Fig. 17: Process of Export Phytosanitary Clearance from the Colombo Sea port (Exports with ephyto) Request Export Permit Conduct Inspection Certify Consignment Customs Clearance (Sea Export) Inputs: Supporting documentation and processing records Activities: 1. Submit Notice of Intention via GeNS 2. Assess Notice of Intention via GeNS 3. Request further information via GeNS 4. Export Registration in GeNS Inputs: Inspection appointment Activities: 1. Inspect container or vessel 2. Select and inspect consignment with sample testing or laboratory tests via GeNS 3. Record/Submit inspection results in GeNS 4. Pre-export mandatory verification for conformity as per process map for sea port Inputs: Compliant product Inspection records Supporting documentation Activities: 1. Approve/Reject consignment for export via GeNS 2. Issue invoice 3. Issue phytosanitary certificate via GeNS for export 4. Export consignment Key: Activity undertaken by exporter Activity undertaken by department Changed Activity after ephyto implementation Redundant Activity after ephyto implementation 5. Request and schedule inspection via GeNS Outputs: Inspection appointment Outputs: Compliant product Inspection records Supporting documentation Outputs: Final approval for export Compliant consignment Notification OK to proceed to the next stage

25 Fig. 18: Process of Export Phytosanitary Clearance from the Colombo Air port & NPQS Katunayake (Exports without ephyto) Request Export Permit Conduct Inspection Certify Consignment Customs Clearance (Air Export) Inputs: Supporting documentation and processing records Activities: 1. Submit Notice of Intention for export 2. Assess Notice of Intention 3. Request further information 4. Export registration via in-house registers 5. Conduct inspection after submission of export application with commodity list Inputs: Inspection appointment Activities: 1. Pre-export mandatory verification for conformity as per export process map for air port 2. Approve/Reject consignment for inspection 3. If approved, inspect consignment with sample testing at the premises 4. Record/Submit inspection results in registers Inputs: Compliant product Inspection records Supporting documentation Activities: 1. Approve/Reject consignment for export 2. Issue phytosanitary certificate manually 3. Export consignment Outputs: Key: Activity undertaken by exporter Activity undertaken by department Changed Activity after ephyto implementation Redundant Activity after ephyto implementation Outputs: Inspection appointment Notification OK to proceed Outputs: Compliant product Inspection records Supporting documentation Final approval for export Compliant consignment

26 Fig. 19: Process of Export Phytosanitary Clearance from the Colombo Air port & NPQS Katunayake (Exports with ephyto) Request Export Permit Conduct Inspection Certify Consignment Customs Clearance (Air Export) Inputs: Supporting documentation and processing records Activities: 1. Submit Notice of Intention for export via GeNS 2. Assess Notice of Intention via GeNS 3. Request further information via GeNS 4. Export registration via GeNS Inputs: Inspection appointment Activities: 1. Pre-export mandatory verification for conformity as per export process map for air port via GeNS 2. Inspect consignment with sample testing at the premises 3. Record/Submit inspection results via GeNS Inputs: Compliant product Inspection records Supporting documentation Activities: 1. Approve/Reject consignment via GeNS for export 2. Issue phytosanitary certificate via GeNS 3. Export consignment Key: Activity undertaken by exporter Activity undertaken by department Changed Activity after ephyto implementation Redundant Activity after ephyto implementation 5. Conduct inspection after submission of export application with commodity list Outputs: Outputs: Compliant product Final approval for export Outputs: Inspection records Compliant consignment Inspection appointment Supporting documentation Notification OK to proceed

27 Fig. 20: Process of Import Phytosanitary Clearance from the Colombo Sea port, Air port, & NPQS Katunayake (Imports without ephyto) Request Import Permit Customs & Quarantine Clearance Conduct Lab Testing/ Post Entry Isolation Customs Release Clearance or Destruction (Air Export) Inputs: Supporting documentation and processing records Activities: 1. Custom notification on the entry of import consignment 2. Assess Notice of Entry 3. Import registration in registers 4. Document checks as per import process map 5. Request and schedule inspection if document checks are satisfactory Outputs: Inspection appointment with customs Notification OK to proceed Inputs: Inspection appointment with customs Activities: 1. Consignment inspection with customs 2. Rejection of Entry, Re-export, Destruction, or Treatment of consignment after inspection 3. Approve/Reject consignment 4. If approved, release consignment, or undertake laboratory testing or Post Entry Quarantine (PEQ) isolation 5. Record/Submit inspection results in registers Outputs: Compliant/Non-compliant consignment Inspection records Inputs: Compliant/Non-compliant consignment Inspection records Supporting documentation Activities: 1. Release/Reject consignment 2. Release/ Reject consignment after laboratory testing 3. Release/Reject consignment after Post Entry Outputs: Compliant consignment for release Non-compliant consignment for destruction Key: Activity undertaken by importer Activity undertaken by department Changed Activity after ephyto implementation Redundant Activity after ephyto implementation Supporting documentation

28 Fig. 21: Process of Import Phytosanitary Clearance from the Colombo Sea port, Air port, & NPQS Katunayake (Imports with ephyto) Request Import Permit Customs & Quarantine Clearance Conduct Lab Testing/ Post Entry Isolation Release or Destruction Inputs: Inputs: Supporting documentation and processing records Activities: 1. Notification on the entry of import consignment via GeNS 2. Assess Notice of Entry 3. Import registration in GeNS 4. Document checks as per import process map via GeNS 5. Request and schedule inspection if document checks are satisfactory Outputs: Inspection appointment with customs Notification OK to proceed Inspection appointment with customs Activities: 1. Consignment inspection with customs 2. Rejection of Entry, Re-export, Destruction, or Treatment of consignment after inspection 3. Approve/Reject consignment via GeNS 4. If approved, release consignment, or undertake laboratory testing or Post Entry Quarantine (PEQ) isolation 5. Record/Submit inspection results in GeNS Outputs: Compliant/Non-compliant consignment Inspection records Supporting documentation Inputs: Compliant/Non-compliant consignment Inspection records Supporting documentation Activities: 1. Release/Reject consignment via GeNS 2. Release/ Reject consignment after laboratory testing via GeNS 3. Release/Reject consignment after Post Entry Quarantine (PEQ) isolation via GeNS Outputs: Compliant consignment for release Non-compliant consignment for destruction Key: Activity undertaken by importer Activity undertaken by department Changed Activity after ephyto implementation Redundant Activity after ephyto implementation

29 9. Assessment of activities undertaken at the sea port and air port for exports after introduction of GeNS Test report and treatment certification will be supplied via GeNS to sea port/air port by exporters. The phytosanitary certificate will be issued for export based on the assessment via GeNS provided there are no objection letters. No prior approval for export is necessary and bill of lading and customs declaration is not required to issue the phytosanitary certificate. The exporter will be responsible for maintaining conformity of the consignment throughout the process as the goods will have to be either re-exported, treated or destroyed should there be a non-conformity with phytosanitary declaration at the importer s premises. The use of registers for recording will become redundant after GeNS is implemented, as the information will be recorded electronically in the system. Colombo, Sea port currently assesses (cross check) shipment records provided by exporter with bill of lading to verify whether shipping details are compliant before issuing phytosanitary certificate. After GeNS is implemented, phytosanitary certificate will be issued for the vessel previously provided by exporter in his/her application and no further verifications will be undertaken (redundant component). Exporter will need to inform officers at the sea port if there is a change in the vessel after phytosanitary certificate has been issued. The previous phytosanitary certificate will be cancelled and a new certificate will be reissued via GeNS when this happens. Such approach will help to maximise the business efficiency at the sea port since there is a very low probability (less than 5%) of a change in vessel from the total volume of exports. NPQS, Sri Lanka should make arrangements to brief stakeholders by holding industry awareness sessions about proposed changes to their phytosanitary exchange processes before implementation of GeNS in Sri Lanka. 10. Assessment of activities undertaken for imports after introduction of GeNS Test report and treatment certificates will be supplied via GeNS to importer (Sri Lanka) by exporter. Phytosanitary certificate is issued by the exporter via GeNS after relevant supporting documentation (e.g. treatment reports, area freedom certification etc.) is checked. These documents are provided by the exporter to importer for further verification. The exporter will be responsible for maintaining conformity of the consignment throughout the process as the goods will have to be either re-exported, treated or destroyed should there be a nonconformity with phytosanitary declaration at the importer s premises. The release or rejection of consignment will be undertaken by NPQS, Karunayake via GeNS soon after inspection, or after laboratory testing or post entry quarantine is undertaken.

30 Country report - Sri Lanka The custom notification on the consignment entry may not be required in future since GeNS will be able to provide NPQS about the entry of consignment with relevant documentation. Accordingly, the use of registers for import recording will become redundant after GeNS is implemented, as the information will be recorded electronically in the system. NPQS, Sri Lanka should make arrangements to inform customs and other organisations (banks, brokers etc.) affiliated with phytosanitary exchange about the changes to their operational processes due to implementation of GeNS. 11. ephyto Change Assessment ephyto Change Assessment and Management is a process integral to the NPPO implementing its initiatives detailed in process maps. It is used to support people, stakeholders, and clients through the transition stages of the implementation of the initiative. A change assessment is required for all change anticipated to impact the NPPO, its people, services, and stakeholders prior to implementing GeNS in Sri Lanka. This is a key part of the work plan which will help IPPC to identify how resources should be allocated to support various activities after GeNS is implemented in Sri Lanka. The change assessment review should be completed for each one of the elements that will become redundant or change after GeNS is implemented. In summary, the change assessment will assist in determining the level of control required to manage the change including project management and governance requirements. For instance, the country report for Sri Lanka has details of process mapping for exports and imports that would be changed or become redundant after GeNS is implemented. The Pre and Post implementation reviews of the change assessment in the work plan based on the process maps will help to identify activities that need to be regulated to facilitate smooth functioning of processes after GeNS is implemented. For this purpose, Pre and Presources are ost implementation reviews of the Change Assessment should be consistent with the process mapping in country report.

31 12. Appendices ephyto Background The International Plant Protection Convention (IPPC) is an international agreement that supports harmonised requirements to prevent the movement of plant pests with traded commodities. Phytosanitary certification is an integral part of the Convention and allows the National Plant Protection Organisation (NPPO) to communicate the phytosanitary status of a commodity in trade between exporting and importing countries. The IPPC has adopted the International Standard for Phytosanitary Measures (ISPM) 7 and ISPM 12 which provide harmonised guidance on phytosanitary certification that has contributed to facilitating safe trade. In 2012, an appendix to ISPM 12 on electronic phytosanitary certification was approved which provided guidance on the exchange of electronic phytosanitary certificates. Electronic certification facilitates trade by increasing the security and efficiency of government certification processes. In recent years, some contracting parties to the IPPC, predominantly in developed countries have made significant advances in developing systems for electronic certification. These systems often require considerable resources to develop due to the multitude of exchange formats, electronic tools and mechanisms required for producing and receiving electronic certificates. Negotiating agreements with trading partners to allow for exchange and establishment may cost significant amounts of money for trading partners. For instance, a study done in 2014 estimated that each agreement to support electronic exchange between countries could cost as much as US $50,000. In order to facilitate exchange, the Commission on Phytosanitary Measures (CPM), as the governing body of the IPPC, composed of contracting parties has advocated the development of a hub system for issuing ephytos with the aim of improving trade between NPPOs and removing the costs associated with individual country agreements for electronic exchange. The ephyto solution is looking to develop a standardised approach to the security and method of exchange, code sets, and message mapping to ensure that all countries are able to easily participate in electronic certification. The ephyto system consists of two main elements, production and receipt of ephytos and an exchange mechanism. Exchange may be done through a hub (as proposed under this project) or directly between NPPOs (point-to-point exchange). The hub model is less costly than the existing paper-based methods and will significantly strengthen global harmonisation and adherence to the IPPC standards for phytosanitary certification. The Commonwealth Phytosanitary Measures (CPM)-8 established an ephyto Steering Group (ESG) and formulated its terms of reference. Furthermore, CPM-9 (2014) approved the Appendix 1 to ISPM 12 which describes the format and the contents of electronic phytosanitary certificates and their exchanges between NPPOs. A member of the CPM Bureau who provides guidance to the CPM on the strategic direction, financial and operational management, along with a member of the IPPC Secretariat are part of the ESG. These members facilitate two way communication to their respective organisations/groups. In October 2014, the Asia and Pacific Plant Protection Commission (APPPC) hosted a workshop on Building Understanding and Preparedness for Electronic Phytosanitary Certification in Thailand. The objectives of the workshop were to discuss the opportunities and risks associated with electronic certification and to provide information on how to prepare for future implementation of electronic certification in the participating countries. The participants established an APPPC ephyto Working Group including Thailand, Philippines, Korea, Indonesia, China, Japan, and Malaysia with Australia as the group leader.

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