FREQUENT QUESTIONS

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Inward Processing

What are the Customs procedures with economic impact available in Sri Lanka?
  • Bonded Warehousing
  • Inward Processing
  • EntrepĂ´t Trade
  • Temporary Admission
Who is eligible to apply for facilities under TIEP-I?
  • Direct exporters
    • Exporters who export products directly by themselves
  • Indirect exporters
    • Suppliers of products to other exporters to export
  • Deemed exporters
    • Suppliers of products to those who are entitled for duty free import of such products (e.g. Projects approved BOI)
Who is eligible to apply for facilities under TIEP-IV?
  • Direct/indirect/deemed exporters who are exporting over 50% of the volume of their annual production
Who is eligible to apply for facilities under Temporary Admissions?
  • Exporters until necessary formalities are fulfilled, as a temporary measure,
  • Goods intended to be inputs to other economic procedures,
  • On 100% bank guarantee.
Can the inputs imported under one procedure be transferred to another?
  • Unless there is a compelling reason, inputs (raw materials) are not permitted to be transferred.

Can the inputs imported under TIEP scheme be disposed for home use?
  • Unless there is a compelling reason, to the satisfaction of the Director General of Customs, no inputs are permitted to be disposed for home use.

What is the customs duty and other levies payable when the inputs (raw materials) imported under TIEP are disposed for home use (sold in the local market?
  • Customs duty and other levies what was payable at the time of first import to the country is payable. Usually this is the amount secured by way of bonds/guarantees on the import customs declaration. The opinion that the fiscal levies are payable at rates and values applicable at the time of disposal is not correct.

What is the customs duty and other levies payable when the finished/processed items/goods made out of inputs (raw materials) imported under TIEP are disposed for home use (sold in the local market?
  • Customs duty and other levies what was payable on the inputs (raw materials) at the time of first import to the country is payable. Usually this is the amount secured by way of bonds/guarantees on the import customs declaration. The opinion that the fiscal levies are payable on the finished/ processed items goods at rates and values applicable at the time of disposal is not correct.

What is the customs duty and other levies payable when the plant, machinery, parts imported under TIEP-IV are disposed for home use (sold in the local market?
  • Customs duty and other levies what is payable at the time of disposal on the Customs appraised value.