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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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Section 59 of the Customs Ordinance
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
Customs Export Duties & Levies
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Section 10 of the Customs Ordinance
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
Section 58 of the Customs Ordinance
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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Section 53 of the Customs Ordinance
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