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Customs Exports Procedure

Thilak Arumapperuma Arachchi

Superintendent of Customs

Department of Sri Lanka Customs

N0. 40 Main Street

Colombo 11

Sri Lanka

Objectives

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Facilitate export operations

Facilitate transshipment operations

Enforcement of customs and other related laws

Collection of due Customs duty and other levies

Safeguard socio- economic, cultural and ecological

interest of the country

Maintain good relationship with stake holders

Provide trade statistics

What is an Export?

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Supply of any goods to a destination outside Sri Lanka

Involves: Commodity

Shipper

Consignee

Transaction

Transport

Customs

Ports

Licensing/Permitting Authorities

Export Standard Regulatory Authorities

Export: Steps

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Preparing goods for export

Booking freight

Making Customs Declaration

Making payment

Passing Customs Declaration

Stuffing goods to the container

Preparing Cargo Dispatch Note/Shipping Note

Transporting to the Seaport/Airport

Passing Boat Note/Shipping Note

Effecting Shipment

Updating Export Release

Preparing goods for export

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Adaptation

Packaging

Labeling

Pay attention to:

Description and Classification

Rates of Duty & Levies

Export Restrictions

Booking freight

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Contact freight forwarder

Book freight

Obtain Agent’s Seal

Obtain shipping container from the yard

Deliver shipping container to the exporter

Making Customs Declaration

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Section 57 of the Customs Ordinance

Goods Declaration Form 53 (CusDec I & CusDec II)

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

Export Invoice

Packing List

Other documents (if applicable):

Any permits/licenses

Tea blend sheets

Material utilization sheets …

Direct Trader Input (DTI)

Making payment

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Cash

Pay-order

e-Payments

Mainly at Bank of Ceylon/Peoples Bank

At any bank through Peoples Bank

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

Stuffing goods to the container

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Stuff the goods into the container

Examination (if selected)

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

Preparing Cargo Dispatch

Note/Shipping Note

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Cargo Dispatch Note (CDN) for each and every

shipping container

One Shipping Note (SN) for the entire shipment

Future

Electronic submission of the CDN/SN

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 Gate

CDNN is verified & endorsed with the date &

time

One copy is retained and the other is returned

Deliver the container(s) to the Port

Future

eCDN/eSN is updated in the computer

Passing Boat Note/Shipping Note

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Submit Gate-endorsed CDN/SN to the Customs

Boat Note office

Submit Security Copy of the Export CusDec

Effecting Shipment

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Customs delivers the “Shipment Allowed” Shipping

Note to the Port Operator

Port Operator effects the shipment

Future

“Shipment Allowed” notice will be issued electronically

Updating Export Release

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Customs Updates “Export Release” in the

Computer 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)

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

Cargo Examination: Present

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Selection for examination at warranting

Appointment of panel of officers

Making payments

Provide transport to officers

Examination and endorsements/reports at

Exporter’s premises

Container freight stations

Air Cargo premises (Perishable goods and Currier Packages)

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

Deliver cargo for export

Cargo Examination: Future

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Examination fees at payment for CusDec

En-route selectivity on way to port

Container not selected -> directed to port

Container selected -> directed to yard

Examination

Release for export

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

Customs Export Duties & Levies

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Customs Export Duty

Royalty

CESS (Commodity Export Subsidy Scheme)

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

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

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..

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

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

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

RDD CESS (Rubber Development Department CESS)

4002: Rs. 4/- per Kg

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Making the Export Declaration

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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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

Types of Declarations

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Customs Export Offices

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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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)

Customs Procedure Code (CPC) (Cage 37)

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CPC: Examples

1000 - 000 Outright exports

1100 - 000 Exports under TIEP scheme

1200 - 000 Exports under rebate scheme

2040 - 058 Temporary exports (FRIC)

3040 - 000 Re- exports

1300 - 000 BOI exports

1378 – 95N BOI Re-exports

3057 - 000 Re-exports of TIEP goods

3051 - 000 Re-exports of INFAC goods

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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)

Licenses/Permits …

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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

Licenses / Permits …

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License / Permits

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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Container Freight Stations (CFS)

MCC operations

Exportation prior to declaration

Free Re-Importation Certificate (FRIC)

Drawback on Re-Exportation

Other related matters

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Container Freight Stations (CFS)

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)

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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Exportation prior to Declaration


On application made to the Director General of

Customs

On condition as directed by the DGC

Misdescription/under-valuation liable for action

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Customs Duty Exemption (11) of schedule A

Value Added Tax Exemption (iii)

Articles readily and unmistakably identifiable

Proof of payment of duty

No drawback of duty was paid at the time of Export

No change of ownership

Within 2 years from the date of exportation

Unchanged in form and condition except for minor repairs

Re-Importation Under FRIC

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Draw Back on Re-Exportation

S22 of the Customs Ordinance

One tenth of the duty payable

Nine tenth of duty refundable

Articles readily and unmistakably identifiable

No change of ownership

Re export must be made within one year from the date of

importation

The claim for drawback must be made at the time of re export

and payment must be demanded with in six months from the

date of entry for shipment

Not applying to goods which have been used after importation

Thank you !

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