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CUSTOMS EXPORTS PROCEDURE

SKILLS DEVELOPMENT TRAINING INSTITUTEEXCEL WORLD, T.B. JAYAH MAWATHA, COLOMBO 10

21 MARCH 2017

T H I L A K A R U M A P P E R U M A A R A C H C C H I

S U P E R I N T E N D E N T O F C U S T O M S

OBJECTIVESFacilitation of export operationsFacilitation of transshipment operationsEnforcement of customs and other related lawsCollection of due Customs duty and other

leviesSafeguarding socio- economic, cultural and

ecological interest of the countryMaintenance of good relationship with stake

holdersProvision of trade statistics

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WHAT IS AN EXPORT?

Supply of goods to a destination outside Sri Lanka

Involves:Commodity to be exportedShipper to ship goodsConsignee to receive goodsTransaction between Shipper & ConsigneeTransport Operators(Carriers/Ship's Agents/Forwarders)Customs AuthoritiesPorts OperatorsLicensing/Permitting AuthoritiesExport Standard Regulatory Authorities

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Adaptation for Different MarketsPackaging for Market/TransportLabeling for MarketDecide the volume of export

FCL: Full Container LoadLCL: Less than Container Load

Have the goods ready for inspection by CustomsPay attention to:

Description and ClassificationRates of Duty & LeviesExport Restrictions

PREPARATION OF GOODS

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Contact Shipping Agent/Freight ForwarderBook freightFCL

Obtain Agent’s SealObtain shipping container from the container

yardTransport shipping container to the

exporter's warehouse

BOOKING FREIGHT

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Section 57 of the Customs OrdinanceGoods Declaration Form 53 (CusDec I & CusDec II)

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

Export InvoicePacking ListOther documents (if applicable):

Any permits/licensesTea blend sheetsMaterial utilization sheets …

Direct Trader Input (DTI)

MAKING CUSTOMS DECLARATION

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By cashBy pay-order in favour of DGCBy e-Payments

Mainly at Bank of Ceylon/Peoples BankAt any bank through Peoples Bank

MAKING PAYMENTS

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Submit documents at Exports DirectorateWith supporting documentsDo amendments if necessaryWarranting for exportExamination Channel Selection

PASSING CUSDEC

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Stuff the goods into the containerExamination (if selected)

Get the panel of officers appointedProvide transportExamine the goodsMake necessary endorsements on back of the

CusDecSeal the Shipping Container with the Agent’s

seal

CARGO STUFFING

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Section 59 of the Customs OrdinanceCargo Dispatch Note (CDN) for each and

every shipping containerOne Shipping Note (SN) for the entire

shipmentElectronic submission of the CDN/SN

CARGO DISPATCH/SHIPPING NOTE

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Present the container at Customs Export Facilitation Center (CEFU)

Present CDN/SN at the CEFUCDNN is acknowledged & endorsed with the

date & timeSystem is updated for CDN acknowledgementOne copy is retained and the other is returnedDeliver the container(s) to the Port

TRANSPOR TO THE PORT

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Submit acknowledged CDN/SN to the Customs Boat Note office

Submit Security Copy of the Export CusDec

PASSING BOAT/SHIPPING NOTE

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Customs Updates “Export Release” in the Computer after passing SN

Required for:Obtaining VAT refundsAccurate statistics to Central BankDetermination of VAT deferment facility by the BOIAssessment of outstanding exportsSetting off the liabilities under TIEP schemeExport Development Reword Scheme (EDRS)

EXPORT RELEASE

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

Port Operator effects the shipmentFuture

“Shipment Allowed” notice will be issued electronically

EFFECTING SHIPMENT

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PrinciplesTrade facilitation Vs ControlRisk management / SelectivitySelection by RandomSelection by RiskIntensity of Examination by Risk

CARGO EXAMINATION

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Colombo Export Facilitation CenterKatunayake Air Cargo Terminal Container Freight StationsSri Lankan Cargo, Colombo (Non commercial goods <100Kg)Exporters own yard/warehouse

EXAMINATION PLACES

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Examination fees at payment for CusDecEn-route selectivity on way to portContainer not selected -> directed to port Container selected -> directed to yardExaminationRelease for export

FCL CARGO EXAMINATION

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Cursory ExaminationComplete ExaminationScan Examination

EXAMINATION METHODS

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MOBILE SCANNER

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SCANNED IMMAGE

Section 10 of the Customs OrdinanceCustoms Export DutyRoyaltyCESS (Commodity Export Subsidy Scheme)

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EXPORT DUTIES/LEVIES

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 mt

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CUSTOMS DUTY

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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ROYALTY

Financing the respective industryDiscourage exports in raw formEncourage exports of value added productsMake available local raw material for local industries..

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CESS (Commodity Export Subsidy Scheme)

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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CESS EXAMPLES

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Log in to ASYCUDA WorldComplete the CusDec (form 53)AssessMake payment

At a BankElectronically over the InternetCurrent Account

Warranting for Export

MAKING EXPORT CUSDEC

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EX1 – Outright exportEX2 – Temporary exportsEX3 – Re-exports IM4 – Entry for Home use IM5 – Temporary Importation IM6 – Re-importation IM7 – Import under Bonding SchemeLI7 – Local ImportsLT7 – Local Transfer of LiabilityPS4 – Passenger Services

TYPE OF CUSDEC

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Main Export Office – CBEX1Katunayaka Export Office – KTEX1Colombo Bonding Office – CBBD1Colombo Investors Facilitation Division – CBIF 1Sri Lankan Airline Office – Colombo 03 – KTCC2Biyagama BOI Export Office – BIBE3

CUSTOMS EXPORT OFFICES

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

Seven digitsFirst two digits – current procedureSecond two digits – previous procedureLast three digits – national procedure code (NPC)

CUSTOMS PROCEDURE CODES

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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 BOARDCertification of Average Auction Price (AAP) on bulk teaApproval for export

DEPARTMENT OF FISHERIES & AQUATIC RESOURCESExport 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 DEPARTMENTQuarantine certificate on Animals and animal products

AGRICULTURE DEPARTMENTQuarantine certificate on Plants, seeds, and products

COCONUT DEVELOPMENT AUTHORITYAnnual Export Permit for Coconuts and productsIndividual Export Permit for Coconut rafters, plants, coconuts with husks …

DEPARTMENT OF AYURVEDAExport Approval for Raw or dried ayurvedic substances in commercial quantities

LICENSES & PERMITS

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DEPARTMENT OF MOTOR TRAFFICPermits for vehicles registered prior to 1945

NATIONAL ARCHIVES DEPARTMENTFor reference of certain documents on export i.e. deeds, stamps, over 50 yrs

NATIONAL ARCHAEOLOGICAL DEPARTMENT

For reference of certain artifacts on export

DEPARTMENT OF EXCISE

Items under the Excise Ordinance

MINISTRY OF DEFENSEFirearms and ammunition

LICENSES & PERMITS

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Container Freight Stations (CFS)MCC operationsExportation prior to declarationFree Re-Importation Certificate (FRIC)Drawback on Re-Exportation

OTHER RELATED MATTERS

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Section 103 A (1) of Customs OrdinanceNeed for space for examinationsNeed for space for cargo consolidationsNeed to facilitate MCC operations

CFS (Container Freight Stations)

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Extended facility to CFS operatorsTS Cargo transferred under supervision to the bondTS Cargo deposited in the BondConsolidate with other cargoDeliver to port with CDN/SN for re-shipment

MCC(Multi Country Consolidation)

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Section 58 of the Customs OrdinanceOn application made to the DGCOn conditions as directed by the DGCFalse declaration is liable for action

EXPORT W/O DECLARATION

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Section 53 of the Customs OrdinanceCustoms Duty Exemption (11) of schedule AValue Added Tax Exemption (iii)Articles readily and unmistakably identifiableProof of payment of dutyNo drawback of duty was paid at the time of ExportNo change of ownershipWithin 2 years from the date of exportationUnchanged in form and condition except for minor repairs

FRIC

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Section 22 of the Customs Ordinance1/10 duty payable9/10 duty refundableArticles readily and unmistakably identifiableNo change of ownershipRe export must be made within one year from the date of

importationThe 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

DRAW BACK ON RE-EXPORT

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THANK YOU!