TIEP-I Scheme is one of a number of
Customs Relief Procedures provided for in legislation of
It permits the import, of materials as inputs, relieved
from payment of fiscal levies on the condition that such
materials are used for the processing of products for
The processing may include from simple sorting, assembly,
packaging to complicated manufacturing.
- Lowering the cost of
production of export products
- Improve the productivity of
the small and medium entrepreneurs
- Facilitation of storage of
inputs and manufactured articles in the exporters
own warehouse without placing them in a Customs
- Facilitation of supporting
WHO IS ELIGIBLE
Direct Exporters - Manufacturers
who produce goods intended for export under inward
processing scheme and ship the same to another country
Indirect Exporters -
Manufacturers who produce goods intended for export but
only supply them to another eligible party for further
processing and finally exports.
Manufacturer cum Exporter/Indirect Exporter
utilizing the Scheme to manufacture any products for
export shall not be entitled to operate the Scheme
for Customs Duty Rebate, the Scheme for
Manufacture-in-Bond for Export or any other Scheme
for the Temporary Importation of Inputs for
manufacture and export in respect of an identical
Raw-materials, Components and Parts which will be
incorporated in the exported product; Parts for assembly
of the product to be exported;
Consumables such as Catalysts,
Accelerators, Processing Chemicals, Lab Chemicals,
Research Chemicals, and Retarders of chemical reaction
to be used in the product to be exported;
Packing material including labels,
stickers and tags to be used for packing the export
products, raw materials for the manufacture of such
packaging material and export catalogues and brochures.
STEPS TO OBTAIN THE FACILITY
- Compile a comprehensive report on
- Obtain a copy of the APPLICATION
FORM FOR INWARD PROCESSING (TIEP-I form) and duly
complete the same.
- Obtain necessary approvals from
line authorities [Tea Board, Coconut Development Board
etc….] wherever applicable.
- Obtain approval from the Ministry
of Industry and Commerce on the Consumption Ratio and
Wastage on the TIEP-I application form.
- Submit following documents to
Customs for registration Letter of request for
registration Duly completed prescribed form [TIEP- I]
- Project Report
- Certificate of VAT registration.
- If incorporated under the Companies
Act No. 7 of 2007
- Certificate of Incorporation (Form
2A/Form 41 - The Companies Act No. 7 of 2007)
- Change of Director/Secretary and
Particulars of Director/Secretary (Form 20 - The
Companies Act No. 7 of 2007)
- Articles of Association (First
Schedule - The Companies Act No. 7 of 2007)
- If registered under Business Names
Statutes of respective provinces
- Certificate of Registration of an
- Certificate of Registration of a
- Necessary permits/ approvals
Registration with Export Development Board as an
- Certified Copies of national
identity cards of two directors Enter into agreement
- Collect approved copies of the
TIEP-I form (two copies.
- Furnish securities as required by
SECURITY FOR THE LIABILITIES
(DUTY AND LEVIES)
However, the Director General of Customs
reserves the right to call for a Bank Guarantee up to 100%
as security limit in the case of any
default/unsatisfactory performance etc.
In the case of an exporter with good track record, a
personal/corporate guarantee may be accepted to cover
the full value of duties and taxes leviable on the
imported goods that may be in stock at any given time.
DISCHARGE OF LIABILITIES
Import liabilities are written off as an when exports
are taken place, on the production of proof of export.
Direct Exporters are required to produce
Export Customs Declaration together, shipping documents,
confirmation on inward remittance together with Material
Utilization Declaration (MUD).
Indirect Exporters are required to produce
Goods Received Notes (GRN) duly certified by the
enterprise receiving the goods, together with Invoice,
in the case of supplies to another TIEP holder or BOI
enterprises located within zones.
In the case of supplies to BOI
enterprises located outside zones and INFAC operators, GRN
and a VAT invoice have to be produced.