This Scheme permits exemption of the
Fiscal Levies on imported Capital and Intermediate Goods
used for the manufacture of products and services for
Capital and Intermediate Goods eligible for exemption.
Capital goods directly Involved in production process :
- Accessories etc.
Intermediate Goods which are considered essential to the
manufacturing process [excluding raw material] :
- Supporting equipment such as Air conditioners,
computers, electricity generators etc.
Other essential equipments.
- Spare parts of project plants.
- Transport equipment and handling equipment which are
used in the production process exclusively in the
factory premises or place of production.
- Breeding stocks for agricultural projects.
WHO IS ELIGIBLE
- Direct Exporters - Manufacturers who produce
goods intended for export under inward processing scheme
and ship the same to another country for export.
- Indirect Exporters - Manufacturers who produce
goods intended for export but only supply them to
another eligible party for further processing and
Duty and tax exemption granted
under the scheme are:
100% exemption of Customs Duty in the case of exporters
who export 50% or more or their output and indirect
exporters who supply 50% or more of their output to direct
* Supplies of products to BOI enterprises who are entitled
for duty free import of such goods are considered as
- Direct exporters or indirect exporters should apply to
the Director General of Customs, in prescribed
form [TIEP IV] for approval.
- Forms could be obtained from Export Facilitation Unit
of the Industries and Services Directorate of the
- Request letter
- Duly completed prescribed form [TIEP- IV] in
- 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
- Articles of Association (First Schedule - The
Companies Act No. 7 of 2007)
- If registered under Business Names Statutes respective
- Certificate of Registration of an Individual
- Certificate of Registration of a Firm
- Other necessary approvals [ Tea Board, Coconut
Development Board etc….] wherever applicable.
- EDB Registration
- I.D copies of two director
TYPES OF APPROVAL
- General approval for a period of one year from date of
- Specific approval will be given when applications are
made for single importation. [each and every time]
- The security/bank guarantee equal to the full value of
the Customs Duty and VAT
- TIEP holder should furnish a Personal/Corporate
Guarantee to the Customs as determined by the DGC after
one year of operation.
- New TIEP holders who import for the first time should
furnish a 100% Bank Guarantee.
- TIEP holder who has a good track record of less than
03 years may furnish a 25% Bank Guarantee and a 75%
- TIEP holder who has good track record of more than 05
years may apply 100% personal guarantee or corporate
* All guarantees are valid
for a period of one year.
DISCHARGE OF GUARANTEES
At the end
of one year from the date of commencement of the
production, TIEP holder should submit to the Director
General of Customs a statement on production and exports
and or supplies or such product to exporters respectively,
duly certified by a recognized auditor in Form TIEP -V [In
After discharge of the guarantee, the TIEP holder should
give a written undertaking to the Director General of
Customs that the items imported under this scheme will not
be sold, hired, leased, disposed of or used for any other
purpose other than for which the items were allowed
importation, without the prior approval of the Director
General of the Customs.