What is an Export?

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Supply of any goods to a destination outside Sri Lanka, with or without involving a sale, amounts to an export for Customs purposes.

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An export generally involves:

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• Commodity (goods) intended for export

• Seller/Shipper, the person who ships goods for export

• Consignee, the recipient of the goods in the destination country

• Transaction, between the seller/shipper for the supply of goods

• Transport, from origin to destination

• Customs, for clearance of goods for shipment

• Ports, to facilitate deposit and loading on board the outgoing vessels

• Licensing/Permitting Authorities, for restricted goods

• Export Standard Regulatory Authorities, if the export product needs such certifications

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Export: Steps

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• Preparing goods for export

• Booking freight

• Lodging Customs Declaration to Custom ACCESS computer system

• Making payment

• Passing Customs Declaration

• Stuffing goods to the container

• Preparing Cargo Dispatch Note/Shipping Note

• Transporting to the Seaport/Airport

• Examination by Customs if selected by Customs

• Passing Boat Note/Shipping Note

• Effecting Shipment

• Updating Export Release in ACCESS

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Preparing goods for export

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• Adaptation of the export product to the needs of the destination market

• Packaging to fulfill the needs of the destination market

• Labeling with product description, origin, production/expiry etc.

• Pay attention to:

  • Description of the goods

  • Classification of the commodity in the Harmonize Coding System

  • Rates of Duty & Levies applicable for export

  • Export Restrictions, such as licence and export permits

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Booking Freight

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• Contact freight forwarder

• Book freight

• Obtain Agent’s Seal for sealing the container once loaded

• Obtain shipping container from the yard

• Deliver shipping container to the exporter

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Making Customs Declaration

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• Section 57 of the Customs Ordinance, requires every exporter to make a Goods Declaration to the Director General of Customs, for clearance of any goods for export

• Goods Declaration is made in the Form 53 (CusDec I & CusDec II)

  • Warrant copy / Security Copy / Party’s Copy / Other …

• Export Invoice describing the goods, value, payment terms, consignee etc.,

• Packing List

• Other documents (if applicable):

  • Any permits/licenses

  • Tea blend sheets

  • Material utilization sheets …

• Exporter or Customs Agent login to ACCESS and lodges the CusDec

• Take print-out of the CusDec with required number of duplicates

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Making Payment

Payments of Customs duty and any processing fees could be made in any of the following modes. However e-payments is the most preferred  by now.

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• Cash

• Pay-order

• e-Payments at any commercial bank

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Passing Customs Declaration

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• Present:

  • Submission of physical documents at relevant Export Office

  • Warranting documents for export

  • Selection for Examination

• Future:

  • Warranting electronically submitted documents

  • Submission of physical documents only if required

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Stuffing goods to the container

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• Stuff the goods into the container

• Examination (if permitted for examination by Customs during loading)

  • Get the panel of officers appointed

  • Provide transport

  • Examine the goods

  • Make necessary endorsements on back of the CusDec

• Seal the Shipping Container with the Agent’s seal

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Preparing Cargo Dispatch Note/ Shipping Note

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• Every load of goods delivered to the port for export requires a Cargo Dispatch Note/Shipping Note to accompany for passing by Customs (Section 59 of the Customs Ordinance)

• Exporter or the agent enters one Cargo Dispatch Note (CDN) each for every shipping container into ACCESS and obtain prints of 3 duplicates

• Enters one Shipping Note (SN) for the entire shipment and obtain prints of 3 duplicates

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Transporting to the Port

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• CDN shall accompany each container

• SN shall accompany the last container

• Present CDNN to the Customs at the Export Facilitation Center

• CDNN is verified & endorsed with the date & time

• One copy is retained and the other is returned

• CDN record is updated "ACKNOWLEDGED" in ACCESS 

• Deliver the container(s) to the Port

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Passing Boat Note/Shipping Note

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• Submit endorsed CDN/SN to the Customs Boat Note office

• Submit Security Copy of the Export CusDec

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Effecting Shipment

 

• Customs delivers the “Shipment Allowed” Shipping Note to the Port Operator

• Port Operator effects the shipment

• Future

  • “Shipment Allowed” notice will be issued electronically

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Updating Export Release

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• Customs Updates “Export Release” in the ACCESS after passing SN

• Export Release Required for:

  • Obtaining VAT refunds

  • Accurate statistics to Central Bank

  • Determination of VAT deferment facility by the BOI

  • Assessment of outstanding exports

  • Duty rebate claims

  • Setting off the liabilities under TIEP scheme

  • Export Development Reword Scheme (EDRS)

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Cargo Examinations

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• Principles

  • Trade facilitation Vs Control

  • Risk management / Selectivity

  • Selection by Random

  • Selection by Risk

  • Intensity of Examination by Risk

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Cargo Examination: Present

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• Selection for examination at warranting

• Appointment of panel of officers

• Making payments to the Export Facilitation Center

• Examination and endorsements/reports at

• Exporter’s premises

  • Export Facilitation Center 

  • Air Cargo premises (Perishable goods and Currier Packages)

  • Sri Lankan Cargo, Colombo 4 (Non commercial goods <100kg)

• Deliver cargo for export

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Cargo Examination Methods

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• Cursory Examination

• Complete Examination

• Scan Examination

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Mobile Scanner

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Scanning Image

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Customs Export Duties & Levies

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• Section 10 of the Customs Ordinance

• Customs Export Duty

• Royalty

• CESS (Commodity Export Subsidy Scheme)

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Customs Duty

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• Tariffs or taxes payable on merchandise imported or exported from one country to another

• Examples:

  • 0801.31.10   Cashew nuts (in shell, fresh) Rs. 200/- per Kg

  • 2506.10.10  Raw Vein Quarts 20% upto USD139/- FOB

  • 7207.12.00  Semi-finished products of iron or non-alloy steel… Rs.   125/- per m

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Royalty

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• Compensation for the use of property, usually copyrighted works, patented inventions, or natural resources, expressed as a percentage of receipts from using the property or as a payment for each unit produced

• Example:

  • Royalties collected by Geological Survey and Mines Bureau

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CESS (Commodity Export Subsidy Scheme)

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• Financing the respective industry

• Discourage exports in raw form

• Encourage exports of value added products

• Make available local raw material for local industries.

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CESS Examples:

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• EDB CESS (Export Development Board CESS)

  • 0902.40.91  Tea in bulk                                         2.5% AAP or Rs. 10/- per Kg

  • 2504.90.10  Natural graphite… Waste                Rs. 200/- per MT

  • 2504.90.90  Other                                                  Rs. 10,000/- per MT

  • 4001.10.10 Natural rubber latex                         2% or Rs. 15/- per Kg

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• SLTB CESS (Sri Lanka Tea Board CESS) on tea in packets < 10Kg

  • 0902.30.12   TC1: Tea Board CESS                 Rs.4.00 per Kg

  • 0902.30.12  TC2: Tea Medical CESS               Rs. 0.35 per 100Kg

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• CDB CESS (Coconut Development Board CESS)

  • 0801.11.10  Edible ‘Copra’               Rs. 0.50 per Kg

  • 0801.99.90  Other                             Rs. 1.00 per Kg

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• RDD CESS (Rubber Development Department CESS)

  • 4002:                                                  Rs. 4/- per Kg

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Making the Export Declaration

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• Log in to ASYCUDA World

• Complete the CusDec (form 53)

• Assess

• Make payment

  • At a Bank

  • Electronically over the internet

  • Current Account

• Warranting for Export

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Types of Declarations

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• EX1 – Outright export

• EX2 – Temporary exports

• EX3 – Re-exports

• IM4 – Entry for Home use

• IM5 – Temporary Importation

• IM6 – Re-importation

• IM7 – Import under Bonding Scheme

• LI7 – Local Imports

• LT7 – Local Transfer of Liability

• PS4 – Passenger Services

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Customs Export Offices

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• Main Export Office – CBEX1

• Katunayaka Export Office – KTEX1

• Colombo Bonding Office – CBBD1

• Colombo Investors Facilitation Division – CBIF 1

• Sri Lankan Airline Office – Colombo 03 – KTCC2

• Biyagama BOI Export Office – BIBE3

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Customs Procedure Code (CPC) (Cage 37)

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• To identify the  customs regimes to which goods are been entered and from which they have been removed

• Seven digits

• First two digits – current procedure

• Second two digits – previous procedure

• Last three digits – national procedure code (NPC)

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CPC: Examples

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Licenses/ Permits...

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• Sri Lanka Tea Board

  • Certification of Average Auction Price (AAP) on bulk tea

  • Approval for export

• Department of Fisheries & Aquatic Resources

  • Export License on Sea Cucumber, Lobsters, Chanks

• Geological Survey & Mines Bureau

  • Export license on minerals in raw and semi-finished forms

• Imports and Exports control Department

  • Export license on Manganese Steel Scraps 

• Forest Conservation Department

  • Export permit for forest produce (seeds, timber, furniture)

• Animal Production and Health Department

  • Quarantine certificate on Animals and animal products

• Agriculture Department

  • Quarantine certificate on Plants, seeds, and products 

• Coconut Development Authority

  • Annual Export Permit for Coconuts and products

  • Individual Export Permit for Coconut rafters, plants, coconuts with husks …

• Department of Ayurveda

  • Export Approval  for Raw or dried ayurvedic substances in commercial quantities

• Department of Motor Traffic

  • Permits for vehicles registered prior to 1945

• National Archives Department

  • For reference of certain documents on export i.e. deeds, stamps, over 50 yrs

• National Archeological Department 

  • For reference of certain artifacts on export

• Department of Excise

  • Items under the Excise Ordinance

• Ministry of Defense

  • Firearms and ammunition

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Other related matters

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• Container Freight Stations (CFS)

• MCC operations

• Exportation prior to declaration

• Free Re-Importation Certificate (FRIC)

• Drawback on Re-Exportation

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Container Freight Stations (CFS)

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• Section 103 A (1) of Customs Ordinance

• Need for space for examinations

• Need for space for cargo consolidations

• Need to facilitate MCC operations

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Multi Country Cargo Consolidation(MCC)

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• Extended facility to CFS operators

• TS Cargo transferred under supervision to the bond

• TS Cargo deposited in the Bond

• Consolidate with other cargo

• Deliver to port with CDN/SN for re-shipment

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