Sri Lanka. D.M.Rupasinghe Senior Economist Central Bank of Sri Lanka.
DIRECTORATE OF INDUSTRIES SERVICES - Customs Procedures with Economic Impact in Sri Lanka · 2016....
Transcript of DIRECTORATE OF INDUSTRIES SERVICES - Customs Procedures with Economic Impact in Sri Lanka · 2016....
DIRECTORATE OF DIRECTORATE OF INDUSTRIES SERVICESINDUSTRIES SERVICES
DIRECTORATE OF DIRECTORATE OF INDUSTRIES SERVICESINDUSTRIES SERVICES
FUNCTIONS & PROCEDURES
THILAK ARUMAPPERUMA ARACHCHITHILAK ARUMAPPERUMA ARACHCHI
SUPERINTENDENT OF CUSTOMSINDUSTRIES & SERVICES DIRECTORATE
EXPORT FACILITATION UNIT
Friday, 30 December 2016 @ Auditorium, Sri Lanka Customs
OBJECTIVES
CUSTOMS PROCEDURES WITH ECONOMIC IMPACT
ECONOMIC DEVELOPMENT TRADE FACILITATION
STRUCTURE
Ind
ust
ries
& S
erv
ices
Dir
ect
ora
te
Project Unit
Export Facilitation Unit
Bank Guarantee Unit
Warehouse Keeping Unit
INFAC & CBCU Unit
Bonding Investigations Unit
Monitoring Unit
Parcel Post Office
Reven
ue &
Serv
ices
Clu
ster
CORE TOOLS
INW
AR
D P
RO
CE
SS
ING
BO
ND
ED
WA
RE
HO
US
ING
BONDED WAREHOUSING
(S69-S100)
INWARDPROCESSING
(S22A)
CONTAINERFREIGHTSTATIONS
(S103)
CORE TOOLSBONDED WAREHOUSEAny place provided by the Minister in which goods entered to be warehoused may be lodged, kept, and secured without payment of duty, although prohibited to be used in Sri Lanka. (S167)
CONTAINER FREIGHT STATIONSPlace designated by DGC for storage and clearance of goos under Customs control after they have been destuffed from containers or when they are to be stuffed into containers; for the storage of containers with or without goods. (S167)
INWARD PROCESSINGInward Processing (IP) provides for the imports of materials as inputs for processing and export without payment of import duties. The processing may include from simple repacking, sorting to complicated manufacturing by small to medium scale authorized operators.
Postal Clearance
BondedWarehousing
Industries &
Services
Inward Processing
Entrepôt Trade
Manufacturein
Bond
Apparel&
Textiles
FRONTEND FUNCTIONS
BACKEND FUCNTIONS
Industries & Services
Directorate
INWARD PROCESSING (IP)
INWARD PROCESSING
(IP)
TIEP-ISCHEME
TIEP-IV SCHEME
INFACSCHEME
IGSCHEME
IP – TIEP(I&IV)/INFAC/IG
DIRECTEXPORT
Raw materials/Consumables/Packing materials
Plant/Machinery/Parts
Finished GoodsSemi Finished Goods
Packing materials
EXPORTER UNDER IP/BOI
EXPORTER UNDER IPProcessingAssembly
Manufacture(S22A)
ENTITIES ENTITLED FOR EXEMPTIONS
INDIRECTEXPORT
DEEMEDEXPORT
FIN
AL
EX
PO
RT
Finished Goods
SALE FORHOME USE
(Duties Payable)
LOCAL TRADERS / CONSUMERS
BONDED WAREHOUSING
BONDEDWAREHOUSING
BONDED WAREHOUSE
WarehouseShall mean any place provided for the deposit of goods on the landing or for shipment thereof for the security of the Customs. (S167)
Bonded WarehouseShall mean any place provided by the Minister in which goods entered to be warehoused may be lodged, kept, and secured without payment of duty, although prohibited to be used in Sri Lanka. (S167)
BONDED WAREHOUSES
PUBLIC BONDS(SLPA)
PRIVATE BONDS
Entered by an importer of any goods on Availability of space and acceptance by Customs
Duty free sales
Home use
Re-export/MCC
Indirect export
Ship store supplies
Clearance of passenger baggage
PRIVATE BOND
Duty FreeService Bond
(Only to serve duty free
feeder bonds – Outside
ports)(S69-S100)
DUTY FREE TRADE
PRIVATE BOND
Duty FreeFeeder Bond
(Only to serve duty free
shops – Inside ports)
(S69-S100)
PRIVATE PRIVATE BONDBOND
Duty Free Duty Free ShopsShops
(Only to (Only to serve serve
passengers – passengers – Inside ports)Inside ports)(S69-S100)(S69-S100)
Entered by bondsman approved goods
RE
-BO
ND
TR
AN
SF
ER
AP
PLI
CA
TIO
N
PASSENGER
SHIP CREW
PRIVATE BOND
Duty FreeGeneral
Bond
(S69-S100)
DUTY FREE TRADE
Entered by bondsman approved goods
EX-BOND
FOREIGN MISSIONS
QUALIFIED PROJECTS
PUBLIC BOND(SLPA)
JCT Oil Bank
(S69-S100)
SHIP STORES – BUNKER TRADE
Entered by license holder
RE-BOND
OIL BARGESBUNKERS TOFOREIGN GOING VESSELS
EX-BOND
BONDED WAREHOUSE
(S69-100 of CO)
SPECIFIC COMMODITY BONDS
Entered by bondsman approved goods. (TO BOND)
Enter for Home useDuties Payable (EX-BOND)
➔ Sugar➔ Rice
De-consolidationConsolidation
(S69-S100, S103A)
MULTI COUNTRY CONSOLIDATION
Bonded warehouse &Container Freight Stations
Export /Re-export
Import – Origin A
Import – Origin B
Import – Origin N
Local Cargo A Local Cargo N
ENTREPÔT TRADE
Value AdditionLabelingRe-packing
Bonded warehouse
Re-stuffing
Re-ShipmentT/S Cargo
Relaxed Exchange Control Relaxed Import Control Simple Value Addition No security required for Customs duties No change of Commodity Restrictions on commodities with negative economic impact Transfer under Customs Supervision
ENTREPÔT TRADE
ProhibitedNarcoticsArms and ammunitionGoods prohibited under international conventions
RestrictedCloves re-export to countries under preferential trading agreementsTextile and clothing – re-export to USA, Canada, India, Austria, Italy, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Spain, Luxembourg, Sweden, Netherlands, Portugal, and UK.
MANUFACTURE IN BOND (MIB)
ManufactureIn
Bond(S69-S100)
MIB
DIRECTEXPORT
Raw materials/Consumables/Packing materials
Plant/Machinery/Parts
Finished GoodsSemi Finished Goods
Packing materials
EXPORTER UNDER IP/BOI
MIB(S69 – S100)
ENTITIES ENTITLED FOR EXEMPTIONS
INDIRECTEXPORT
DEEMEDEXPORT
FIN
AL
EX
PO
RT
Finished Goods
SALE FORHOME USE
(Duties Payable)
LOCAL TRADERS / CONSUMERS
MONITORING & UPDATES
INDUSTRIES UNDER IP
BONDED WAREHOUSES
Imports of InputsDirect ExportIndirect ExportDuty Free SalesHome Use
SYSTEM AUDIT✔ ASYCUDA✔ THINETH✔ BONDING REGISTERS
CUSTOMS BOI COORDINATION
● Termination of BOI venturesTermination of BOI ventures– Recovery of liabilities if anyRecovery of liabilities if any
● Local SalesLocal Sales– Inspection and assessment goodsInspection and assessment goods
BONDING INVESTIGATION UNIT
● Investigate into suspected frauds/violations Investigate into suspected frauds/violations within the scope of Industries and Services within the scope of Industries and Services Directorate, and BOIDirectorate, and BOI
● Report on findingsReport on findings● Assist at inquiries under Customs Assist at inquiries under Customs
OrdinanceOrdinance● Ensure actions are taken to deter Ensure actions are taken to deter
recurrencerecurrence
Approval and registration
PROCEDURES
Securing of liabilities
Entering import of inputs & machinery
Entering exports of finished products
Entering for home use
Writing-off of liabilities
Annual verification & renewal
APPROVAL & REGISTRATION
● BONDED WAREHOUSE– Approval by the Minister on the recommendation of the DGC
– Appointment by DGC (S69)
● INWARD PROCESSING– Approval on conversion+wastage by MIC & Customs (S22A)
● CONTAINER FREIGHT STATION– Approval by the Minister
– Establish by DGC (103A)
● Allocation of Customs Reference Number (Warehouse Code)
SECURING LIABILITIES
● Covering Customs duties and other levies● Bank Guarantees● Corporate Guarantees● Valid for one year● Renewable
ENTERING BY CUSDEC
● Customs DeclarationCustoms Declaration● Customs Office Code (CBBD1)Customs Office Code (CBBD1)● Customs Procedure CodeCustoms Procedure Code
– Examples:Examples:● 7700-TRD7700-TRD● 7700-TRU7700-TRU● 7700-TIE7700-TIE● 7700-TRS7700-TRS
● Commodity Description & HS Commodity Description & HS CodeCode
● QuantityQuantity● ValueValue
WRITING-OFF LIABILITIES
● Liabilities on import – Record is created in THINETH
– Secured against BG/CG/PG
– Debit note is issued
● Re-Export/Ex-Bond/Re-Bond/GRN– MUD (Material Utilization Declaration)
– THINETH is updated within one month to write off import liabilities
– Credit granted enhancing Guarantee value
RENEWAL
● Annual● Verification● Renewal & Verification Charges● Renewal
POSTAL CLEARANCE
➔ Responsible for clearance of ➔ Air / Sea parcels➔ Letters and Customs Detained
packets➔ Express Mail Service (EMS)➔ Bulk posts (books)➔ Export parcels
➔ Working points➔ Colombo Central Mail Exchange➔ Galle➔ Kandy➔ Trincomalee➔ Jaffna➔ Katunayake Free Trade Zone
POSTAL CLEARANCE PROCEDURE
● Postal Department notifies consignee with Foreign Parcel Notice (POD-3) along with Postal Department notifies consignee with Foreign Parcel Notice (POD-3) along with POD31 in triplicate. (POD: Post Office Declaration)POD31 in triplicate. (POD: Post Office Declaration)
● Consignee submits FPN + POD31 to countersConsignee submits FPN + POD31 to counters● Postal service produce mail for inspection by CustomsPostal service produce mail for inspection by Customs● Customs appraiser determines tariff applicableCustoms appraiser determines tariff applicable● Taxer calculates applicable duties and enters on POD and issue a Duty Receipt to Post Taxer calculates applicable duties and enters on POD and issue a Duty Receipt to Post
MasterMaster● Post master collects Customs duties and release the parcel/mailPost master collects Customs duties and release the parcel/mail● In respect of BOI/IP/BONDED Clearance, a CusDec shall be produced in addition to In respect of BOI/IP/BONDED Clearance, a CusDec shall be produced in addition to
PODPOD● Taxer prepares Cash-Sheet and tallies with that of the Post Master at the end of the day.Taxer prepares Cash-Sheet and tallies with that of the Post Master at the end of the day.● Customs shroff collects the collection on the next working dayCustoms shroff collects the collection on the next working day
CUSTOMS PROCEDURES WITHECONOMIC IMPACT
Offered in GOOD FAITHImplemented in TRUSTRelaxed for PRODUCTIVITYAimed at PROGRESS
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