CUSTOMS PROCEDURE CODES

A Customs Procedure is generally the practices used by customs administrations to clear goods for import or export, and levy tariffs.

It includes clearance procedures such as documentation and inspection, methods of determining a good’s classification, and methods of ascertaining its value as the base for tariff.

Therefore, when a Customs Goods Declaration (CusDec) is made for the clearance of goods either inward or outward, it is necessary to make the same under the appropriate Customs procedure, in order to receive the kind and type of treatment envisaged.

In Sri Lanka, a Customs Procedure Code consists of seven alphanumeric characters and it has a logical arrangement and thereby a meaning/purpose attached.

First 2 digits - Requested procedure code

Second 2 digits - Previous procedure code

Last 3 alphanumeric - Extended procedure code

When making a goods declaration, it is strictly required to use the correct procedure code at import or export because it not only determines the amount of tariff payable but also relates to the conditions applicable on the goods after release from Customs.

For ease of understanding some of the Customs Procedure Codes are given below under respective areas of application.

Imports

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Import- for home use

4000 000 Import for home use - normal procedure

4000 059 Import for home use - on Bill of store

4000 799 Import for home use - Manual taxation

Import- for Export Processing

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7700 TRD - Import of raw material - VAT deferred under TIEP-I

7700 TRU - Import of raw material - VAT paid upfront under TIEP-I

7700 TMD - Import of machinery - VAT deferred under TIEP-IV

7700 TMU - Import of machinery - VAT paid upfront under TIEP-IV

7700 IBD - Import of goods - VAT deferred under IBG

7700 IBU - Import of goods - VAT deferred under IBG

7700 IRD - Import of raw material - VAT deferred under INFAC

7700 IRU - Import of raw material - VAT deferred under INFAC

Import- under ENTREPÔT

7300 100 Direct import for re-export under Entrept trade

7371 100 Transfer to Entrepot Trade from State bond

Import- under BONDING SCHEME

7100 100 Direct import to enter into State Bond

7200 100 Direct import to enter into Private Bond

Exports of Local goods

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1000 000 - Export of goods of local origin

1100 000 - Export of goods mainly of local origin together with inputs from TIEP

Export- After Processing

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3277 T1E - Export/Re-Exports of produce using inputs under the TIEP-1 Scheme

3277 T4E - Re-Exports of machinery imported under the TIEP-IV Scheme

3277 TBE - Re-Exports of goods imported under the IBG Scheme

3277 INF - Re-Exports of produce using inputs under the INFAC Scheme

3271 100 - Re-Exports of goods imported into a State Bond

3272 100 - Re-Exports of goods imported into a Private Bond

3273 100 - Re-Exports of goods imported under the Entrepot Scheme

Transfers

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7777 TRU - Transfer raw material to TIEP from other - VAT paid upfront

7777 TRD - Transfer raw material to TIEP from other - VAT deferred

7777 TRG - Transfer goods to TIEP from other

VAT Settlements

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7700 TRS - Settlement of VAT under TIEP-I scheme

7700 TMS - Settlement of VAT under TIEP-V scheme

7700 IRS - Settlement of VAT under INFAC scheme

7700 IBS - Settlement of VAT under IBG scheme

Local Disposals

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Disposal- for home use

4177 000 - Normal procedure - all duties & levies payable

4177 799 - Manual tax calculation

4177 BVP - VAT already paid - all other duties payable

4177 800 - Partial waiver & with amendments

4177 T4U - TIEP-IV Machinery - VAT is already paid

4177 T4V - TIEP-IV Machinery - VAT payable

4177 150 - Consolidated Tax for local sale BOI garments

4177 026 - Any machinery, equipment for CEB and subsidiaries ..,

4177 223 - No levies involved - by special order (import goods)

Disposal- by destruction

4177 DHC - Destruction under Customs supervision at Holcim Lanka Ltd.,

4177 DOC - Destruction under Customs supervision at the factory premises

Our viewers are advised that the information given below are not official.

Although we have taken reasonable efforts, as the time permits, to vet the same prior to publish, it is advisable to verify the same with respective Division/ICT Division of the Customs prior to use the same.

We also wish that the viewers would appreciate the fact that his is a continuous process as the exercise is exhaustive due to the limited resources we have. Consequently it is unavoidable that this post will be frequently updated also due to the reason that new procedures are being created as an when required to meet new Customs Procedures are adopted by Sri Lanka Customs.