QUESTIONS FROM THE UNITED STATES TO SRI LANKA

The following communication, dated 17 November 2025, is being circulated at the request of the delegation of the United States.

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The United States seeks clarity from Sri Lanka on its rewards for customs officers involved in the assessment or collection of penalties for violations of the Sri Lanka Customs Ordinance, as provided under Section 153(b) of the Ordinance. The United States has heard from U.S. companies that the system of rewarding customs officers established under Section 153(b) acts as an incentive for the assessment and collection of penalties on imports.

Article 6.3.4 of the Agreement on Trade Facilitation provides that each Member shall ensure that it maintains measures to avoid conflicts of interest in assessment or collection of penalties, and Article 6.3.3 states that any penalty imposed shall depend on the facts and circumstances of the case and shall be commensurate with the degree and severity of the breach.

The United States requests written responses to the following questions related to this issue:

1._    Please explain, in detail, the system of rewarding customs officers established by Sri Lanka under Section 153(b)?

2._    Please explain how the system of rewarding customs officers under Section 153(b) is consistent with Articles 6.3.3 and 6.3.4?

3._    Has the Government of Sri Lanka undertaken any assessment of the impact of the system of rewarding customs officers under Section 153(b) of the Customs Ordinance on enforcement?

4._    The United States encourages Sri Lanka to end incentive payments for customs officers that reward such officials for assessing or collecting customs penalties. Can we expect changes or amendments to Section 153(b) or any other provision of law impacting Sri Lanka's rewards system for customs officials? 

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