Customs Ordinance of Sri Lanka Consolidated and Annotated with

Decided Cases

Sanjaya Wilson Jayasekera, LL.B, LL.M, Attorney-at -Law.

sanjayawilson@gmail.com

Campaign for Public Legal Education (CPLE)

CUSTOMS ORDINANCEAN ORDINANCE FOR THE GENERAL REGULATION OF CUSTOMS IN SRI LANKA.

Sections1. Short title.2. Appointment of officers.3. Persons employed by customs deemed officers for such service.4. Officer taking any fee or reward on account of anything done by him relating to his office shall be dismissed. Penalty for offering fee [2,83 of 1988]5. Officers of customs not liable to serve in other local offices.6. Minister to determine hours of attendance. [3,83 of 1988]6A. Payment for special service or attendance.[4,83 of 1988]6B. Persons to provide accommodation and shelter for officers of customs.[4,83 of 1988]7. Collector authorized to administer oaths8. Collector, & c. may examine witnesses on oath. False oath deemed false evidence. [4,83 of 1988]8A. How Judge to deal with witness who makes a contradictory statement. [6,83 of 1988]9. Power of Collector to call for documents or samples of articles. [7,83 of 1988]9A. Service of notice. [8,83 of 1988]9B. Presumption as to documents in certain cases.[8,83 of 1988]9C. Translation in the official language, national language, or English language to be produced. [8,83 of 1988]10. Duties to be levied and power of Parliament to modify duties. [4, 10 of 1983]10A. Surcharge to be levied on imported goods, where expedient.[9,83 of 1988]11. Provision for imposition of export duty at varying rates. [ 3,35 of 1974]12. Prohibitions and restrictions and power of Parliament to add thereto.13. Goods in warehouse to be liable to the duties imposed by this Ordinance.14. Goods in warehouse to be liable to increased or new duties.15. Power to charge warehouse rent16. Definition of time of an importation and of an exportation, and of an arrival; and of a departure.17. Duties to be paid in Sri Lanka currency according to unit of measurements for Sri Lanka Produce of customs duties to be paid in to the Treasury & c.[4, 10 of 1983][10, 83 of 1988][2, 24 of 1991]18. Duties, dues and charges paid in excess to be refunded. [ 4,35 of 1974]18A. Proceedings for recovery of duties, dues or other charges short levied & c. before a Magistrate. [12,83 of 1988]19. Power of Minister to exempt Diplomatic personnel & c. from payment of customs duties subject to certain conditions. [13,83 of 1988]19A. Exemption of goods imported by certain persons from import duties. [ 6,35 of 1974]20. Imports by President of the Republic exempt from import duties of customs. [14,83 of 1988]21. Certificate from naval or military or air force officer required for exemption or payment of rebate.22. Drawbacks on re-exportation. [15,83 of 1988]

22A. Importation without payment of duty. [16,83 of 1988]23. Port dues.24. Power of Collector to summarily enforce payment of dues, rates, buoy rent, charges, and penalties.

25. Composition for duties. [8,35 of 1974]26. Tonnage of ship how ascertained.27. [ 9,35 of 1974] [17,83 of 1988]28. Ship and cargo to be reported within twenty-four hours of arrival of ship. Particulars of report. [ 2,35 of 1974] [18,83 of 1988]29. Master to deliver manifest, and, if required, bill of lading, or copy. Penalty on failure. [ 2,35 of 1974] [19,83 of 1988]30. officers to board ships. May seal or secure goods and open locks. Goods concealed forfeited. If seal, &c, broken, master to forfeit one hundred thousand rupees . [ 2,35 of 1974] [20,83 of 1988]31. Officers may be stationed in ships within the limits of any port. [ 2,35 of 1974] [21,83 of 1988]32. Penalty on master not having clearance and if cargo do not correspond with ship's papers, or if goods sent out of vessels be not landed at the appointed places. [22,83 of 1988]33. Goods unshipped from the importing vessel, or landed contrary to the regulations of the Collector, forfeited. Penalty on persons concerned. [ 2,35 of 1974] [23,83 of 1988]34. Provision with respect to unlading goods, depositing and removing of the same from the warehouse of the Republic, and penalties for failure to remove within prescribed time. [11,35 of 1974]35. No goods to be unladen except during the legal hours and days of business. [ 2,35 of 1974] Forfeiture.36. Cargo in ships of 150 tons to be landed within ten days, and exceeding 150 tons within twenty-five days after arrival of such ship. In default Collector may land and convey goods to warehouse of the Republic. Duties, &c, to be paid within one month, or goods to be sold.37. Goods in transit and goods transhipped allowed without payment of duty. [24,83 of 1988]38. Boat-notes to accompany goods unladen from any ship & c.[25,83 of 1988]39. Ship's stores.40. Goods to be landed and examined at the expense of importer.41. Goods in warehouse must be properly stowed and re-piled.42. Penalty for neglect or refusal.43. Prohibitions and restrictions. [ 2,35 of 1974]44. Goods exported contrary to the prohibitions and restrictions in Schedule B to be forfeited.45. [26,83 of 1988]46. Abatement of duty on damaged goods.47. Importer to deliver bill of entry together with other documents.[27,83 of 1988]48. Delivery of goods prior to entry.49. Entry by bill of sight. Perfect entry to be made within three days. In default goods to be sold after one month.50. Entry to agree with manifest & c. Goods not duly entered forfeited.50A. Action applicable to goods exempted from customs duties and other dues conditionally. [28,83 of 1988]51. Value of goods for the purpose of ad valorem duties. [29,83 of 1988][2,2 of 2003]51A. When office in doubt he may call for further information[3,2 of 2003]51B. Importer to keep records for three years. [3,2 of 2003]51C. Confidentially to be strictly maintained. [3,2 of 2003]52. Forfeiture for non-compliance or false declaration. Forfeiture of value where goods not recoverable. [30,83 of 1988] [4,24 of 1991] [4,2 of 2003]52A. Penally failing to keep destroying or altering records & c. [5,2 of 2003]53. [2,2 of 2003]54. Bill of store may be issued by the proper officer. Agent to declare name of employer. Consignee to declare who is proprietor. Proprietor to declare to identity and proprietor unchanged. The entry by bill of store to be granted. Appointment of warehouses in specified ports. [31,83 of 1988]

55. Goods may be removed by land, or from one sea port to another in Sri Lanka.56. Ship to be entered and goods cleared before shipment. [32,83 of 1988]57. Exporter to deliver bill of entry. [33,83 of 1988]58. Exportation prior to the presentation of the bill of entry59. Boat-notes to accompany goods laden for export. [34,83 of 1988]59A. Goods to be examined at expenses of exporter.[ 13,35 of 1974]60. Stiffening order61. Stores.62. Collector may grant general sufferance for the shipping of goods.[ 14,35 of 1974] [35,83 of 1988]63. Master to deliver content answer questions, and produce bills of lading Certificate of clearance. [ 2,35 of 1974] [36,83 of 1988]64. Officers may board vessels after clearance [ 15,35 of 1974] [37,83 of 1988]65. No goods to be imported or exported in vessel of less than 15 tons66. Coastwise trade.67. What goods shall be carried coastwise. [ 2,35 of 1974]68. Regulation of movements, &c, of ships under 250 tons tonnage.69. Power to appoint warehouses for warehousing of goods. [40,83 of 1988]70. Warehouse Keeper to give security as required by the Collector. [41,83 of 1988]71. Importer under certain restrictions may warehouse goods,72. Entry for the warehouse. Particulars. Warrant for warehousing. Bond upon entry of goods for the warehouse.73. Power of lessee of customs premises in certain cases to cause warehousing entry to be passed for goods.74. Goods warehoused to be marked and numbered & c. Storage of goods warehoused. Penalty. Locking and opening warehouses. Carrying goods to and from warehouses.[42,83 of 1988]75. Goods not duly warehoused or fraudulently concealed or removed, forfeited.76. Warehouse keeper neglecting to produce goods deposited, when required, to forfeit one hundred rupees. [ 2,35 of 1974] [43,83 of 1988]77. Importer or proprietor clandestinely gaining access to warehoused goods to forfeit one hundred thousand rupees.[ 2,35 of 1974] [44,83 of 1988]78. Duty on goods taken out of warehouse with out entry to be paid by warehouse keeper. Persons taking out of or destroying goods in warehouse to be deemed guilty of an offence. Importer or consignee defrauded by officers to be indemnified. [ 2,35 of 1974] [44,83 of 1988]79. Collector may remit duties on warehoused, goods lost or destroyed.80. Landing account to be taken of goods for the warehouse. Contents to be marked on packages and in landing book.81. Goods to be entered and duties paid according to landing account.82. Goods to be cleared within two years. [ 16,35 of 1974]Duties to be paid upon deficiencies, & c.83. Goods not cleared or re-warehoused or duties paid on deficiencies after two years to be sold. Proceeds of sale how to be applied. Goods not worth the duty same may be exported or destroyed.84. Goods in warehouse may be repacked. Damaged parts may be destroyed.84A. Processing including manufacture or assembly of goods in warehouses. [46,83 of 1988]84B. Manufacturer permitted to subcontract under certain conditions. [46,83 of 1988]85. Entry for exportation re-warehousing or home use [47,83 of 1988]

86. Bill of entry for warehoused goods delivered for home use. Duties to be paid according to landing account, except in certain cases when duties are to be charged on ascertained quantity on delivery, unless deficiency has been caused by improper means.87. Value of goods for allowance on deficiencies to be estimated by officers of customs. [ 17,35 of 1974]88. Deficiencies on goods exported not to be charged with duly unless fraudulent.89. On entry outward, bond for due shipment and landing to be given when required. [48,83 of 1988]90. General bond for warehoused goods exported.91. Minister may close bonded warehouse.92. Collector may issue warrants.93. Goods transferable by endorsement and deliverable to the holders of warrants.94. Warrants by private warehouse keepers.95. No goods warehoused in Government or bonded warehouses to be delivered save on surrender of the warrant, and no warrant once surrendered to be reissued.96. Penalty on infringement of section 95.[ 2,35 of 1974] [49,83 of 1988]97. Stamp duty on warehouse warrants fixed at fifty cents.98. State when liable to make compensation for loss in any warehouse of the Republic.99. Goods otherwise liable to Customs laws and regulations,100. Penalties. [ 2,35 of 1974] [50,83 of 1988]100A. Warehousing of duty paid goods and goods of local origin. [51,83 of 1988]101. Regulations. [52,83 of 1988]102. Goods of dangerous quality.103. Special regulations for ships.103A. Container freight stations or Inland clearing depots for customs clearance of cargo.[52,83 of 1988]103B. Regulation of the movement of containers, containerized cargo, cargo intended for containerization and security to be furnished. [52,83 of 1988]104. Transport of goods overland under band. [54,83 of 1988]105. Goods lodged in warehouse of the Republic liable to claims for freight, & c.

106. Bonds to be taken by Collector.107. Goods being moved out of any ship or to any ship or out of any warehouse if not duly entered to be forfeited.[55,83 of 1988]107A. Regulation of passengers baggage inwards and outwards. [56,83 of 1988]108. Goods in any warehouse to be at risk of the owner.109. Power to sell goods not cleared within thirty days. [5,24 of 1991]110. Collector to order removal of goods from one warehouse or customs premises to another warehouse or place. [57,83 of 1988]111. Government may appoint ports and quays and alter or annul the same. Existing ports to continue.112. Collector to appoint wharves113. Officers may refuse any person to do any act as master of ship, unless his name is endorsed on registry.114. When ship s agent may act for master.115. Collector to grant licences to customs house agents. [58,83 of 1988]115A. Importers and exporters to be registered with customs. [59,83 of 1988]116. No vessel to be hauled on shore without permission. Boat to be removed from wharf when directed. Penalty. [ 2,35 of 1974]117. No timber, &c, to be left on wharf for more than one day.[ 2,35 of 1974]

118. Officers may board ships hovering within territorial waters and bring them into port. [18,35 of 1974][60,83 of 1988]119. Making false declaration. Signing false documents and untruly answering questions. Counterfeiting and using false documents.[61,83 of 1988]120. Bond entered into with the Collector for the due performance of anything relating to the customs, to be valid in law.121. Export, &c, of naval, military, and air stores maybe prohibited.122. Unauthorized persons not permitted to make entries. [2,35 of 1974] [62,83 of 1988]123. Samples.123A. Drawing of samples on goods cleared out of customs control. [63,83 of 1988]124. Collector may refuse clearance.125. Smuggling, seizures, and prosecutions generally. Forfeiture of ship to include tackle, & c.125A. Inclusion of prohibited goods in Schedule B of Customs Ordinance. [207,36 of 2003]125B. [207,36 of 2003]126. Stoppage, inspection, and search of vehicles suspected to be transporting smuggled goods, & c.127. Arrest of persons reasonably suspected of an offence under the Ordinance,127A. Persons arrested to be produced before a Magistrate under certain circumstances.[65,83 of 1988]127B. Access to persons in custody for purpose of investigations. [65,83 of 1988]127C. Power to release on bail to be vested in High Court.[6,24 of 1991]128. Arrest of persons reasonably suspected of an offence under the Ordinance.128A. Power to enter for the purpose of audit or examination or records [7,2 of 2003]129. Persons concerned in importing prohibited or restricted goods, whether unshipped or not, and persons unshipping, harbouring or having custody of such goods, to forfeit treble the value, or one hundred thousand rupees. [ 19,35 of 1974] [67,83 of 1988]

130. Persons concerned in exporting prohibited or restricted goods. [ 20,35 of 1974] [68,83 of 1988]131. Forfeited ships.132. If goods removed prior to examination, penalty upon parties concerned in the removal. [21,35 of 1974][70,83 of 1988]133. Persons assisting in unshipping or harbouring such goods liable to treble the value or one hundred thousand rupees.[ 22,35 of 1974] [71,83 of 1988]134. How value to be ascertained.135. Goods, vessels, &c, liable to forfeiture may be seized by officers, & c. Persons resisting officers or rescuing or destroying goods to prevent seizure, to forfeit one hundred thousand rupees.[ 2,35 of 1974][72,83 of 1988]136. Goods stopped or taken by police officer. [ 23,35 of 1974] [73,83 of 1988]137. Officers making collusive seizures, or taking bribes, and persons giving bribes, subjected to penalties.[2,35 of 1974] [74,83 of 1988]138. Officers may search persons on. board or on shore in certain cases. [75,83 of 1988]139. Prohibition against the throwing overboard of goods, & c. [ 2,35 of 1974] [76,83 of 1988]140. Before such search the person may require to be taken before a Magistrate or a superior officer of the customs.141. Penalty on officers for misconduct with respect to search. [ 24,35 of 1974]142. Penalty on persons on board falsely denying having foreign goods about them.143. Power to fire at vessels failing to bring to when required. [ 25,35 of 1974]144. Goods not to be passed if incurred penalty is not paid.

145. Recovery of penalties. [7,24 of 1991]146. Persons liable to forfeiture or penalty under any section of the Ordinance to be guilty of an offence. [77,83 of 1988]147A. Magistrates to have jurisdiction to impose any punishment prescribed for offences under this Ordinance.[ 27,35 of 1974]148. Averment of offence.149. Several persons concerned in the same offence jointly and severally liable to the penalty, and may be sued either by one or by separate informations.150. Goods not specified in boat-note when found concealed in any boat to be presumed to have been stolen or unlawfully received by tindal and boatmen of such boat.151. Goods not mentioned in boat-note when found in possession of any tindal or boatmen when on board of boat or on wharves to be presumed to have been stolen.152. Onus probandi to be on the party, & c.[ 28, 35 of 1974]153. Disbursement of forfeitures and penalties recovered under this Ordinance. [78,83 of 1988]153A. Purposes the which of the Fund may be applied. [79,83 of 1988]154. Seized goods, if unclaimed for a month, to be condemned and dealt with accordingly. [ 29,35 of 1974]155. Claim to thing seized to be entered in the name of the owner.156. Notice to be given to officers.157. Actions to be brought within two months of the cause of them.158. Officer may tender amends.159. Judge may certify probable cause of seizure

160. Repealed by Act [9,24 of 1991]161. Persons employed for the protection of the revenue to be deemed to be duly employed.162. Vessels and goods seized and condemned may be disposed of as the Collector, &c, shall direct.163. Collector in certain cases may mitigate forfeiture or penalty.164. Restoration of seized goods, ships, & c.165. The Minister may restore seizures, and mitigate or remit punishments and penalties.166. Possession of articles suspected to have been stolen.166A. Where the offence is concerned with goods, the value of which exceeds five hundred thousand rupees such offence to be deemed a non-bailable offence. [80,83 of 1988]166B. Guidelines for imposing penalty or ordering forfeiture.[80,83 of 1988]167. Interpretation.[81,83 of 1988] [8,2 of 2003]

Ordinance Nos,17 of18691 of187121 of18731 of187522 of18773 of188312 of18844 of188618 of189620 of189813 of19007 of19012 of19039 of19043 of190640 of1908

CHAPTER 344

CUSTOMSAN ORDINANCE FOR THE GENERALREGULATION OF CUSTOMS IN SRI LANKA.

5 of190929 of19095 of19109 of19105 of191414 of191421 of191610 of191717 of19223 of192717 of192823 of19296 of19383 of193932 of194154 of19418 of194417 of194643 of1946

Law Nos,

35 of1974

Act Nos,6 of19489 of194910 of195027 of195129 of195225 of195829 of196634 of196623 of196810 of198383 of198824 of19912 of200336 of20039 of2013

[1st January , 1870 ]Short title. 1. This Ordinance may be cited as the Customs

Ordinance.

[2,83 of 1988]

PART IMANAGEMENT

Appointment ofofficers. 2. There may be appointed a Principal Collector of

Customs and other officers and servants for themanagement and collection of the customs, and theperformance of all duties connected therewith; on suchsalaries and allowances as may be provided in thatsecurities. behalf, and there may be required of everyperson now employed or who shall hereafter beemployed in the service of the customs, such securitiesfor his good conduct as the Minister may deemnecessary, and the Principal Collector of Customs shall,Principal throughout Sri Lanka, have the generalCollector. superintendence of all matters relating to thecustoms.

Persons employedby customs deemedofficers for suchservice.

3. Every person employed on any duty or servicerelating to the customs within Sri Lanka, by the orders orwith the concurrence of the Minister or the Collector,whether previously or subsequently expressed, shall bedeemed to be the officer for that duty or service, andevery act, matter, or thing required by any law at anytime in force to be done or performed by, to, or with anyparticular officer nominated in such law for suchpurpose, being done or performed by, to, or with anyperson appointed by the Minister or the Collector to actfor or in the behalf of such particular officer, shall bedeemed to be done or performed by, to, or with suchparticular officer; and every act, matter, or thing requiredby any law at any time in force to be done or performedat any particular place within any port, being done orperformed at any place within such port appointed bythe Minister for such purpose, shall be deemed to bedone or performed at the particular place so required.

Officer taking anyfee or reward onaccount of anythingdone by him relatingto his office shall bedismissed. Penaltyfor offering fee

4. If any officer or other person acting in any office oremployment in or belonging to the customs shall take orreceive any fee, perquisite, gratuity, or reward, whetherpecuniary or of any other sort or description whatsoever,directly or indirectly from any person (not being a personduly appointed to some office in the customs) on

[3,83 of 1988]

account of anything done, to be done, or omitted to bedone by him in any way relating to his said office oremployment, except such as he shall receive under anyorder or permission of the Minister or Collector, suchofficer or other person so offending shall, on proofthereof, be dismissed from his office, and he shall bedeemed guilty of an offence, and shall be liable onconviction to a fine not exceeding ten thousand rupees;and if any person, not being a person duly appointed tosome office in the customs, shall give, offer, or promiseto give any such fee, perquisite, gratuity, or reward, suchperson shall for every such offence forfeit a sum notexceeding ten thousand rupees.

Officers of customsnot liable to serve inother local offices.

5. No officer of customs, nor person employed in thecollection or management of or accounting for therevenue of customs, or any part thereof, nor any otherperson acting under him, shall, during the time of hisacting as such officer, or of his being so employed asaforesaid, be compelled to serve in any other publicoffice or employment or to serve on any jury or inquest,any law, usage, or custom to the contrarynotwithstanding.

Minister todetermine hours ofattendance.

6.(1) It shall be lawful for the Minister todetermine in consultation with the Minister incharge of the subject of Public Administrationthe hours of general attendance and hours ofspecial attendance of officers of customs andother persons employed in the service ofcustoms at their proper offices and places ofemployment.

(2) The Principal Collector shall determine theproper offices and places of employment ofofficers of customs and such other personsreferred to in subsection (1) :

[4,83 of 1988]

[4,83 of 1988]

Provided however that within a specified Port,as defined in the Sri Lanka Ports Authority Act,No. 51 of 1979, or an airport, proper officesand places of employment of officers ofcustoms and such other persons referred to insubsection (1) shall be determined by thePrincipal Collector in consultation with theauthority in charge of such port or airport.

Payment for specialservice orattendance.

6A. Where any person requires­(a) any service which is determined by theMinister as a special service ; or

(b) the attendance of any officer of customs atany office or place other than his proper officeor place of employment,

payment shall be made for such service or attendance,as the case may be, to the Principal Collector by suchperson at such rates as may be specified by thePrincipal Collector.

Persons to provideaccommodation andshelter for officers ofcustoms.

6B. Notwithstanding anything in any other law, it shall bethe duty of every authority of any Port or of every personin charge of any place or warehouse which requires theattendance or services of officers of customs or anyperson employed in the service of custom's, to providesuitable shelter and accommodation in such Port,warehouse or place, as the case may be, for the use ofthe customs. ".

Collector authorizedto administer oaths 7. In all cases wherein proof on oath shall be required by

any law, or shall be necessary in any matter relating tothe customs, the same may be made before theCollector or other principal officer of customs, or beforethe persons acting for them respectively, who are

[4,83 of 1988]

[5,83 of1988]

hereby authorized and empowered to administer thesame.

Collector, & c. mayexamine witnesseson oath. False oathdeemed falseevidence.

8.(1) Upon examinations and inquiries made bythe Collector, or other principal officer of thecustoms, or other persons appointed to makesuch examinations and inquiries, forascertaining the truth of statements maderelative to the customs, or the conduct ofofficers or persons employed therein, anyperson examined before him or them as awitness shall deliver his testimony on oath, tobe administered by such Collector or otherprincipal officer, or such other persons as shallexamine any such witness, who are herebyauthorized to administer such oath; and if suchperson shall be convicted of giving falseevidence on his examination on oath beforesuch Collector or other principal officer ofcustoms, or such other person in conformity tothe directions of this Ordinance, every suchperson so convicted as aforesaid shall bedeemed guilty of the offence of giving falseevidence in a judicial proceeding, and shall beliable to the fines and penalties to whichpersons are liable for intentionally giving falseevidence in a judicial proceeding.

(2) A person making an inquiry undersubsection (!) may summon as a witness anyother person whose evidence is necessary forthe purposes of the inquiry; and a person whois summoned under this subsection shall, if hedoes not comply with the summons or refusesto be sworn or affirmed or to give evidence, beguilty of an offence of and liable to a fine notexceeding twenty five thousand rupees .

[6,83 of 1988]

How Judge to dealwith witness whomakes acontradictorystatement.

8A.(1) If in the course of a trial for an offenceunder this Ordinance any witness shall on anymaterial point contradict either expressly or bynecessary implication a statement previouslymade and signed by him, before any officer ofcustoms or person referred to in section 8, inthe course of any . investigation into suchoffence under this Ordinance, it shall be lawfulfor the presiding Judge if he considers it safeand just in all the circumstances

(a) to act upon the statement given bythe witness in the course of theinvestigation, if such statement iscorroborated in material particulars byevidence from an independent source ;and

(b) to have such witness at theconclusion of such trial arraigned andtried on an indictment which shall beprepared and signed by the Registrar ofsuch court, for intentionally, giving falseevidence in a stage of a judicialproceeding.

(2) At any trial under paragraph (b) ofsubsection (1) it shall be sufficient to prove thatthe accused made the contradictorystatements alleged in the indictment and itshall not be necessary to prove which of suchstatements is false.

(3) The presiding Judge may, if he considers itexpedient, adjourn the trial of any witnessunder paragraph (b) of subsection (1) for suchperiod as he may think fit and in any such casethe accused shall be remanded until theconclusion of such trial. ",

[7,83 of 1988]

Power of Collectorto call fordocuments orsamples of articles.

9.(1) The Collector or any officer of customsauthorized in that behalf by him may for thepurpose of ascertaining or verifying any matterrelative to the customs or with regard to anymatter into which it is his duty to inquire underthis Ordinance, by written order require anyperson to give information or produce forexamination such books and documents orsamples of any article with regard to anymatter relative to the customs or the subject ofinquiry which are in such person's power togive or produce at such place and within suchperiod as may be specified in such order andallow such officer to examine, take extracts andcopies of such books, documents and samplesof articles, as the case may be.

(2) Any person who is required, for purposes ofthis section, to answer any question put to himby any officer of customs, or to give anyinformation which may be required of him bysuch officer and which it is in his power to giveand who

(a) refuses to answer such question ;

(b) wilfully makes a thereto ;falseanswer

(c) refuses to give such information;

(d) furnishes any information which heknows or has reason to believe to befalse; or

(e) without reasonable cause fails tocomply with any order issued under

[8,83 of 1988]

[8,83 of 1988]

subsection (1),

shall be guilty of an offence and shall be liableon conviction to a fine not exceeding twentyfive thousand rupees or to imprisonment for aterm not exceeding six months or to both suchfine and imprisonment.

Service of notice. 9A. Any notice, order or other document required to beserved on any person under this Ordinance or anyregulations made thereunder may be served by postunder registered cover, and if so served, shall be(deemed) to have been served at the time when theletter containing the same would be delivered in theordinary course of post, and in proving such service, itshall be sufficient to prove that the notice, order or otherdocument was properly addressed and put into the post.

Presumption as todocuments incertain cases.

9B. When a document which appears to have beenmade in the ordinary course of business having regardto the nature of such business and is not otherwiseopen to suspicion by reason of alterations or othercircumstances

(i) is produced by any person or has beenseized from the custody or control of anyperson, under this Ordinance, or

(ii) has been received from any place outsideSri Lanka in the course of investigation of anyoffence alleged to have been committed by anyperson under this Ordinance,

and such document is tendered in evidence, the courtshall, unless the contrary is proved

[8,83 of 1988]

(a) presume, that the signature and every otherpart of such document which purports to be inthe hand writing of any particular person orwhich the court may reasonably assume tohave been signed by, or to be in the handwriting of any particular person, is in the hand­writing of that person and in the case of adocument executed or attested, that it wasexecuted or attested, by the person by whom itpurports to have been executed or attested ;and

(b) as regards a document referred to inparagraph (i), presume the truth of the contentsof such documents.

Translation in theofficial language,national language, orEnglish language tobe produced.

9C.(1) Where any document required for thepurpose of this Ordinance is written in alanguage other than the official language,national language or the English language, theperson producing or using such document maybe required to produce therewith a correcttranslation thereof in the official language,national language or the English language.

To producedocuments asrequired.

(2) Where any person is required to produceany document for the purposes of thisOrdinance, the customs officer may requiresuch person to produce as many copiesthereof as the customs officer may deemnecessary for the purposes of this Ordinance.

(3) Where a customs officer requires anyinvoice and/or any other document to beproduced for any goods which have beenimported, exported, entered for export orentered in transit, he may require such invoiceand/or document to be submitted in original

[4, 10 of 1983][2, 9 of 2013]

and may require him to submit as many copiesthereof as may be necessary for the purposesof this Ordinance and he may retain suchcopies.".

PART IILEVYING OF CUSTOMS DUTIES

Duties to be leviedand power ofParliament to modifyduties.

10.(1). The several duties of customs, as thesame are respectively inserted, described, andset forth in figures in the table of duties(Schedule A)* shall be levied and paid upon allgoods, wares, and merchandise imported intoor exported from Sri Lanka: Provided that­

(a) Parliament may from time to time,by means of a resolution duly passed atany public session, increase, reduce,abolish, or otherwise alter the customsduty leviable on any goods importedinto or exported from Sri Lanka or intoor from any specified port therein, orsubject to such terms or conditions, ifany, as may be expressed in the saidresolution, may impose customs dutyupon any goods so imported orexported whereon customs duty at thetime when such resolution is passed isnot leviable; or may add other goods tothe goods enumerated in the saidSchedule as exempt from customs duty; or may add to, rescind, or vary any ofthe conditions, exceptions, orprovisions of the said Schedule withregard to the payment of customs duty;or may amend or alter the provisions ofthe said Schedule by the deletion ofreferences to goods stated therein tobe exempt from import duty, or byspecifying that goods of any class or

[2, 9 of2013]

description shall, subject to such termsand conditions as may be expressed inthe resolution, be exempt from exportduty, or by adding to, deleting from or inany manner varying the classification ordescription of goods specified in thesaid Schedule or any provisioncontained therein relating to any suchgoods, whether or not the duty on suchgoods is varied, imposed or abolishedby the resolution ;

(b) no such resolution shall take effectunless it shall have been notified in theGazette;

(c) express reference in the saidSchedule to any customs duty leviableon any goods imported into or exportedfrom Sri Lanka shall not affect or bedeemed to affect any royalty, cess orduty, by whatsoever name called, whichis leviable or payable on the importationor exportation of such goods under anywritten law other than this Ordinance.

(1A)Where there is a dispute relating to theimposition or exemption of customs duty onany goods, any condition or exception to thepayment of customs duty on any goods orclarification or description of the goods,imported into or exported from Sri Lanka, theimporter or exporter of such goods as the casemay be may make an application forthwith tothe Director­General for determination.

(1B) The Director­General shall, within ninetydays from the date of receipt of such

[9,83 of 1988]

application determine any application made tohim under subsection (1A).

(1C)(a) Where the Director­General fails tointimate the determination within thetime period specified in subsection (1B)to the importer or exporter as the casemay be; or

(b) Any person who is aggrieved bysuch determination,

may, within thirty days from the expiration ofthe time period specified in subsection (1B) orfrom the date of receipt of such determinationas the case may be, appeal to the Tax AppealsCommission established under the provisionsof the Tax Appeals Commission Act, No. 23 of2011.

(2) every duty altered or imposed on the basisof any measurement unit under the proviso tosubsection (1), shall be according to theInternational system of Units as defined insection 5 of the Weights and MeasuresOrdinance.

(*Schedule omitted­See List of Enactments omitted fromthe Revised Edition.)

Surcharge to belevied on importedgoods, whereexpedient.

10A.(1) In addition to any duties leviable under thisOrdinance, the Minister may, with the approvalof the Cabinet of Ministers, by Order publishedin the Gazette, levy a surcharge on the

[ 3,35 of 1974]

customs duty payable on such imported goodsas are specified in such Order, at such ratesand for such periods as are specified in suchOrder, if he deems it expedient in the interestof the national economy to do so.

(2) Every Order made by the Minister undersubsection (1) shall come into force on thedate of such Order. Every such Order shall bepublished in the Gazette and shall, as soon asmay be after its publication in the Gazette betabled in Parliament, Parliament may byresolution revoke any Order made by theMinister under this section within sixty days ofthe publication of such Order in the Gazette.,and in the computation of such period of sixtydays no account shall be taken of any periodduring which Parliament stands prorogued ordissolved. Where any such Order is revokedany sum paid in pursuance of such order shallbe refunded.

Provision forimposition of exportduty at varyingrates.

11 .(1) Any resolution under section 10 imposingexport duty­

(a) may impose upon any goods duty atrates varying in accordance withfluctuations in the world market price ofthe goods; and

(b) may provide for the estimation fromtime to time by the Collector of theamount which shall be deemed,

for the purposes of the application of theresolution, to be the world market price of thegoods to which it applies.

[ 3,35 of1974]

(2) Where in terms of subsection (1) of thissection export duty on any goods is imposedby any resolution at rates differing inaccordance with fluctuations in the worldmarket price of the goods, the followingprovisions shall have effect in relation tocontracts for the exportation of such goodsentered into by a seller in Sri Lanka(hereinafter referred to as " the exporter") anda buyer overseas:­

(a) the exporter may make applicationto the Collector for the registration ofthe contract, specifying in theapplication­

(i) the total quantity of the goodscovered by the contract;

(ii) the period within which thegoods are required by the termsof the contract to be exported(hereinafter referred to as the "proposed period of exportation ");and

(iii) such other particulars as theCollector may require;

(b) any such contract may be registeredby the Collector subject, however, tothe provisions of subsections (3) and(4);

(c) where any such contract isregistered, then, notwithstandinganything in the resolution imposingexport duty upon such goods,

export duty shall be charged, levied and paid,on all goods proved to the satisfaction of theCollector to be exported during the proposedperiod of exportation in fulfillment of thecontract, at the rate which would have beenapplicable if the goods had been exported onthe date of the application for the registration ofthe contract.

(3) No contract shall be registered as providedin subsection (2), if the proposed period ofexportation of the goods to which the contractrelates is a period ending later than six monthsafter the date of the application for registrationof the contract:

Provided that the aforesaid term of six monthsmay, by regulation made under subsection(12), be increased or reduced whether inrelation to contracts generally or to contracts ofany specified description.

(4) No contract shall be registered as providedin subsection (2) unless the exporter under thatcontract, either­

(a) deposits with the Collector a sum ofmoney equal to one­fourth of theamount which would be payable asexport duty upon the total quantity ofgoods covered by the contract if suchtotal quantity were being exported onthe date of the application for theregistration of the contract; or

(b) the exporter has furnished to theCollector a bond in such form, andexecuted by any such bank, as may beapproved by the Collector, whereby thebank undertakes to pay to the Collector

[ 3,35 of1974]

on demand any sum which may bedeclared by order of the Collector undersubsection (5) to be payable by thebank in relation to that contract, sohowever that the maximum sum soundertaken to be paid shall be one­fourth of the amount which would bepayable as export duty upon the totalquantity of goods covered by thecontract, if such total quantity werebeing exported on the date of theapplication for the registration of thecontract.

(5) In any case where a contract has beenregistered as provided in subsection (2) and itis found on the date of the expiration of theproposed period of exportation that thecontract remains wholly or partly unfulfilled,then, if the lowest rate of duty which prevailedduring the proposed period of exportationunder the resolution passed in terms ofsubsection (1) (hereinafter referred to as the "new rate") is lower than the rate whichprevailed thereunder on the date of theapplication for the registration of the contract(hereinafter referred to as the " old rate ")­

(a) the Collector shall make anassessment of the amount which wouldhave been payable as export duty atthe old rate on the quantity of the goodsin respect of which the contract remainsunfulfilled and an assessment of theamount which would be payable asexport duty at the new rate on the saidquantity; and

(b) the Collector shall make orderdeclaring that a sum representing thedifference between the two amounts so

assessed shall be made good out ofthe deposit made by the exporter undersubsection (4) in respect of thecontract, or, as the case may be, bepaid by the bank by which the bondwas executed in terms of thatsubsection in respect of the contract.

If the sum ordered to be paid under thepreceding provisions of this subsection inrespect of any contract shall exceed the totalsum deposited under subsection (4) in respectof that contract or, as the case may be, thetotal sum specified in the bond executed interms of that subsection in respect of thatcontract, the Collector shall make further orderdeclaring that the sum representing thedifference between the amount so ordered tobe paid, and the amount furnished as depositor for the payment of which the exporter hasfurnished to the Collector a bond executed interms of the same subsection shall be paid bythe exporter within the period stipulated in thatorder; and it shall be lawful for the officers ofcustoms to refuse to pass any goods belongingto the exporter until the said sum is paid.

Upon an order being made by the Collectorunder this subsection declaring that any sumshall be paid by a bank, the bank shall bebound forthwith on demand made by theCollector to pay such sum to the Collector.

(6) In any case where the Collector is satisfiedthat any contract registered under this sectionremains wholly or partly unfulfilled owing tocauses beyond the control of the exporter, thennotwithstanding anything in the preceding

provisions of this section the Collector may inhis discretion­

(a) extend the proposed period ofexportation and direct that suchextended period shall be deemed forthe purposes of paragraph (c) ofsubsection (2) and of subsections (5)and (10) to be the proposed period ofexportation; or

(b) make order directing that theprovisions of subsection (5) shall notapply in relation to the contract; or

(c) make order directing that for thepurposes of subsection (5) the contractshall be deemed to remain unfulfilledonly in relation to such part of the totalquantity of goods covered by thecontract as may be specified in theorder.

(7) All sums ordered under subsection (5) to bemade good out of any deposit and all sumspaid by any bank in compliance with an orderunder subsection (5) shall be paid into theConsolidated Fund.

(8) In any case where a contract has beenregistered under the preceding provisions ofthis section, it shall be the duty of the exporter,whenever any goods are being exported infulfillment of the contract, to make a declarationto that effect in the bill of entry relating to thegoods and in the specification furnished inrespect of the shipment of such goods ; and­

(a) where no goods have been sodeclared by the exporter to be goodsexported in fulfillment of the contract,

the Collector shall, for the purposes ofsubsection (5) be entitled to presume,unless the contrary is proved to hissatisfaction, that the contract remainswholly unfulfilled; or

(b) where the quantity of goods sodeclared by the exporter to be goodsexported in fulfillment of the contract isless than the total quantity covered bythe contract, the Collector shall, for thepurposes of subsection (5), be entitledto presume, unless the contrary isproved to his satisfaction, that thecontract remains unfulfilled in respect ofthe outstanding part of such totalquantity.

(9) The Minister may by order provide for thepayment of interest on deposits made underthis section, at such rate, and in suchcircumstances, and subject to such conditions,as may be specified in the order.

(10) The amount of any deposit made undersubsection (4) by any exporter in respect ofany contract shall, subject to the operation ofany order made under subsection (5), bereturned to the exporter as soon as convenientafter the exportation in fulfillment of thecontract of the total quantity of goods coveredthereby or the expiration of the proposedperiod of exportation, whichever time is theearlier:

Provided, however, that the Collector may inhis discretion make order directing the return ofany part of any such deposit at any time afterthe contract has been substantially fulfilled.

(11) No sum constituting or forming part of anydeposit made under subsection (4) by anyexporter shall be liable at any time to be seizedor sequestered in execution of any decree ororder of any court, if the Collector certifies thatthe exporter is not at that time entitled to thereturn of that sum under subsection (10) of thissection.

(12) The Minister may make such regulationsas he may consider necessary for carrying intoeffect the preceding provisions of this section.

(13) In each of the preceding subsections­

" the date of the application for registration ofthe contract " means the date on which theapplication for registration is received by theCollector.

Prohibitions andrestrictions andpower of Parliamentto add thereto.

12.(1) The goods enumerated in the table ofprohibitions and restrictions in Schedule B*shall not be imported or brought into orexported or taken out of Sri Lanka save inaccordance with the conditions expressed inthe said Schedule.

(2) Parliament may from time to time, bymeans of a resolution duly passed at anypublic session, amend Schedule B* by theaddition thereto of any goods other than thoseenumerated therein or by the omissiontherefrom of any goods enumerated therein orotherwise, and regulate the conditions subjectto which the importation or bringing into or theexportation or taking out of Sri Lanka of any

goods enumerated in the said Schedule* isprohibited or restricted.

(*Schedule omitted­See List of Enactments omitted fromthe Revised Edition. This section shall not apply withinany " specified port"­See section 86 (2) of the Sri LankaPorts Authority Act. )

Goods inwarehouse to beliable to the dutiesimposed by thisOrdinance.

13. All goods whatsoever which shall have beenwarehoused without payment of duty upon the firstimportation thereof, and which shall be in thewarehouse when this Ordinance comes into force, shallbecome liable to the duties imposed by this Ordinance,in lieu of all former duties.

Goods inwarehouse to beliable to increased ornew duties.

14. When any variation is made in any of the provisionsof Schedule A*, whether by the amendment of thisOrdinance or by the exercise of any power given by thisOrdinance or any other enactment, any goods that shallhave been warehoused without payment of duty uponthe first importation thereof, and which shall be in thewarehouse at the time when the said variation comesinto force, shall be subject to duty or exempt from duty,as the case may be, in accordance with the saidvariation.

Power to chargewarehouse rent 15. On all goods lodged in any warehouse of the

Republic, warehouse, or place of deposit provided byGovernment, it shall be lawful for the Collector tocharge, demand, and receive warehouse rent for allsuch time as the same shall remain in such warehouse,at such rates and under such regulations as may fromtime to time be fixed by the Minister, as warehouse rentpayable on goods so lodged, and no goods upon whichwarehouse rent may be due shall be removed until thesame be paid.

Definition of time ofan importation andof an exportation,

[4, 10 of 1983][10, 83 of1988][2, 24 of 1991]

and of an arrival;and of a departure. 16. If upon the first levying or repealing of any duty, or

upon the first permitting or prohibiting of any importationor whether inwards, outwards, or exportation; coastwisein Sri Lanka, it shall become necessary to determine theprecise time at which an importation or exportation ofany goods made and completed shall be deemed tohave had effect, such time, in respect of importation,shall be deemed to be the time at which the shipimporting such goods had actually come within the limitsof the port at which such ship shall in due course bereported and such goods be discharged ; and such time,in respect of exportation, shall be deemed to be the timeat which the goods had been shipped on board the shipin which they had been exported; and if such questionshall arise upon the arrival or departure of any ship, inrespect of any charge or allowance upon such ship,exclusive of any cargo, the time of such arrival shall bedeemed to be the time at which the report of such shipshall have been or ought to have been made; and thetime of such departure shall be deemed to be the timeof the last clearance of such ship with the Collector forthe voyage upon which she had departed.

Duties to be paid inSri Lanka currencyaccording to unit ofmeasurements forSri Lanka Produceof customs duties tobe paid in to theTreasury & c.

17.(1) All duties of customs, as well as allpenalties and forfeitures incurred under thisOrdinance, shall be paid and received in thecurrency of the Republic of Sri Lanka andaccording to the units of measurement of theRepublic.

Conversion offoreign currencyof the Republic.

(2) For the purpose of subsection (1)conversion of foreign currency values to thecurrency values of the Republic of Sri Lankashall be made in accordance with such rates ofexchange determined by the Director­Generaland published in the Gazette, as wereprevailing on the date of presentation of the billof entry relating to the goods on which the dutyis payable. ".

[ 4,35 of 1974]

[11,83 of1988]

Produce ofcustoms dutiesto be paid intotheConsolidatedFund.

(3) The produce of all duties of customs shallbe paid by the Collector into the ConsolidatedFund of the Republic of Sri Lanka ".

Duties, dues andcharges paid inexcess to berefunded.

18.(1) If it is proved to the satisfaction of theCollector by any claim duly made in writing thatany person has paid on goods imported orexported by him, any duties, dues or chargesin excess of the amount with which he wasproperly chargeable thereon, such person shallbe entitled to have refunded the amount sopaid in excess, if such claim is made withintwenty­four months from the date of suchpayment.

(2) When any duties, dues or charges on anygoods, imported or exported, have been shortlevied or where any such duties, dues orcharges after having been levied, have beenerroneously refunded, the persons chargeablewith the duties, dues or charges so short leviedor to whom such refund has erroneously beenmade shall pay the deficiency or repay theamount so erroneously refunded, if thepayment of the amount short levied orerroneously refunded shall be demandedwithin twenty­ four months from the date ofsuch short levy or refund.

(3) If the amount so demanded to be paid interms of subsection (2) is not paid by theperson from whom the payment is demandedby the Collector, it shall be lawful for theofficers of customs to refuse to pass any goodswhich that person imports or brings into or isseeking to export or take out of Sri Lanka untilthat amount is paid:

[12,83 of1988]

Proceedings forrecovery of duties,dues or othercharges short levied& c. before aMagistrate.

18A.(1) Where the Principal Collector is of opinionin any case that recovery under section 18, ofany duties, dues or other charges omitted to belevied, short levied, erroneously refunded orrebated or paid on a fraudulent claim, isimpracticable or index pediment, he may issuea certificate containing particulars of suchduties, dues or other charges as contained inthe demand under subsection (2) of section 18,and the name and last known place ofbusiness or residence of the defaulter to aMagistrate having jurisdiction in the division inwhich such place is situate. The Magistrateshall thereupon summon such defaulter beforehim to show cause why further proceedings forthe recovery of the duties, dues or othercharges should not be taken against him, andin default of sufficient cause being shown, suchduties, dues or other charges shall be deemedto be a fine imposed by a sentence of theMagistrate on such defaulter for an offencepunishable with fine only or not punishable withimprisonment, and the provisions of subsection(1) of section 291 (except paragraphs (a), (d)and (i) thereof) of the Code of CriminalProcedure Act, No. 15 of 1979, relating todefault of payment of a fine imposed for suchan offence shall thereupon apply and theMagistrate may make any direction which, bythe provisions of that subsection, he couldhave made at the time of imposing suchsentence.

(2) The correctness of any statement in acertificate issued by the Principal Collector forthe purposes of subsection (1) shall not becalled in question or examined by theMagistrate in any proceeding under this sectionand accordingly, nothing in that sub section

shall be read and construed as authorizing aMagistrate to consider, or decide, thecorrectness of any statement in suchcertificate.

(3) Nothing in subsections (2) to (5) of section291 of the Code of Criminal Procedure Act, No.15 of 1979, shall apply in any case referred toin subsection (1) of this section.

(4) In any case referred to in subsection (1) inwhich the defaulter is sentenced toimprisonment in default of payment of the finedeemed by that subsection to have beenimposed on him, the Magistrate may allow timefor the payment of the amount of that fine ordirect payment of that amount to be made ininstalments.

(5) The Court may require bail to be given as acondition precedent to allowing time undersubsection (1) for showing cause as thereinprovided or under subsection (4) for thepayment of the fine ; and the provisions ofChapter XXXIV of the Code of CriminalProcedure Act, No. 15 of 1979, shall applywhere the defaulter is so required to give bail.

(6) Where a Magistrate directs undersubsection (4), that a payment he made ininstalments and default is made in the paymentof any one instalment, proceedings may betaken as if default had been made in paymentof all the instalments then remaining unpaid.

(7) In any proceedings under subsection (1),the Principal Collector's certificate shall besufficient evidence that the duties, dues orother charges are in default, and any plea that

[13,83 of1988]

such duties, dues or other charges areincorrect shall not be entertained.

Power of Minister toexempt Diplomaticpersonnel & c. frompayment of customsduties subject tocertain conditions.

19.(1) The Minister may from time to time, byOrder published in the Gazette, exempt goodsconsigned to, or imported or cleared out ofbond by or for the use of the representative inSri Lanka (by whatsoever name, title ordesignation called) of the Government of anyforeign State, the Trade Commissioner in SriLanka of any such Government, and personson the staff of any such representative orCommissioner named in such Order and therepresentatives of the United Nations or itsaffiliates and such other internationalorganizations, institutions or bodies frompayment of customs duty.

(2) The Minister may, in his discretion, by suchOrder

(a) prescribe the conditions, if any,subject to which the exemption isallowed ;

(b) extend such exemption to goodsconsigned to, or imported by or for theuse of the families and suites of suchofficers ;

(c) limit the exemption to a grade orclass of persons referred to insubsection (1) of any specified countryor organization and to articles of anyspecified description.

[ 6,35 of 1974]

(3) Any Order under the preceding provisionsof this section shall, if so express ed bedeemed to have had effect from such date priorto the making of the order as may be specifiedtherein,

(4) The Minister may at his discretion, by Orderpublished in the Gazette, withdraw or modifyany exemption granted under this section, orvary the conditions subject to which theexemption is allowed.

(5) No Order made under this section shallhave effect unless it has been approved byParliament, by resolution.

(6) Notwithstanding anything in any Orderunder the preceding provisions of this section,no goods to which such Order applies may besold or otherwise disposed of, without the priorpermission of the Principal Collector andunless the duties payable on such goods asdetermined in accordance with the value ofsuch goods and rates of duty applicable at thetime of such sale or disposal, are paid to thePrincipal Collector Any goods sold or disposedof in contravention of the preceding provisionsof this subsection shall be liable to be forfeited.

Exemption of goodsimported by certainpersons from importduties.

19A.(1) The Minister may, if he deems it expedientin the public interest so to do, by Order exemptany goods imported by, or consigned to, anyperson specified in the Order from the whole orany part of the duties of customs leviablethereon, subject to such conditions (to befulfilled before or after clearance) as may bespecified in the Order.

[14,83 of

(2) Every Order made by the Minister undersubsection (1) shall come into force on thedate of such Order. Every such Order shall bepublished in the Gazette and shall, as soon asmay be after its publication in the Gazette, betabled in Parliament. Parliament may byresolution revoke any Order made by theMinister under this section within sixty days ofthe publication of such Order in the Gazette,and in the computation of such period of sixtydays no account shall be taken of any periodduring which Parliament stands prorogued ordissolved. Where any such Order is sorevoked, the duties of customs payable on theexempted goods shall be paid by the importerof such goods or the person to whom suchgoods were consigned, to the PrincipalCollector of Customs, and such duties may berecovered under the provisions of section 145.

(3) Where any goods specified in an Ordermade under subsection (1) are subsequentlysold or disposed of contrary to the conditions ofsuch Order, such goods shall be liable to thesame duty of customs as may by law be leviedon like goods which are subject to duties ofcustoms and the importer or person by whomor on whose behalf the goods are sold ordisposed of shall prior to such sale or disposalobtain the permission of the Principal Collectorof Customs and pay the duties payable onsuch goods at the time of such sale or disposalto the Principal Collector. Any goods sold ordisposed of in contravention of such sectionshall be liable to be forfeited.

Imports byPresident of theRepublic exemptfrom import duties ofcustoms.

20. 20. Articles of every description imported or beardedfrom bond for the official use of the President of the

1988] Republic of Sri Lanka shall not be liable to the paymentof import duties.

Certificate fromnaval or military orair force officerrequired forexemption orpayment of rebate.

21.(1) Upon the production of a certificate fromsuch naval, military, or air force officer, or suchother person as the Minister may from time totime authorize by notification in the Gazette toissue the same, the Collector of Customs shallpass free from duty the articles hereinbeforeexempted, or, in the event of the duty havingbeen paid, he shall, subject to the provisions ofsubsection (2), allow a rebate of such duty:

Provided that if such articles are not to requiredfor the use for which they were imported orpurchased or exported as aforesaid, no sucharticles may be sold or otherwise disposed ofwithout the prior permission of the PrincipalCollector and unless the duties payable onsuch articles at the time of such sale ordisposal are paid to the Principal Collector; andany articles sold or disposed of incontravention of the preceding provisions ofthis proviso shall be liable to be forfeited.

(2) The Collector of Customs shall allow arebate of the duty paid on any articlehereinbefore exempted, upon the production ofa certificate relating to that article inaccordance with the provisions of subsection(1) and upon proof to his satisfaction of the factthat such article was actually imported,exported, purchased or procured, as the casemay be, and of such particulars as he mayrequire in regard to the amount of duty paidand the time and place of payment of suchduty:

[15,83 of1988]

Provided that no such rebate shall be allowedin the case of any article unless the certificaterelating to that article is produced within twelvemonths next after the date on which that articlewas imported, exported, purchased orprocured, as the case may be;

Provided further that the Collector of Customsmay refuse to allow a rebate of the duty paidon any article if he is satisfied, after suchinquiry as he may deem necessary, that arebate of the duty paid on that article haspreviously been allowed in accordance with theprovisions of this section.

(3) The rebate shall be paid to the personissuing the certificate required by this sectionout of the duties received by the Collector ofCustoms, anything in section 18 to the contrarynotwithstanding.

(4) The certificate required by this section shallbe in such form as the Principal Collector ofCustoms shall from time to time prescribe.

Drawbacks on re­exportation. 22.

(1) Where any goods capable of being easilyidentified which have been imported from anyforeign port, and upon which customs dutieshave been paid, are re­exported to any foreignport, a sum not exceeding nine tenths of suchduties may, be repaid as drawback :

Provided that in every such case(a) the goods are identified to thesatisfaction of the Principal Collector, orsuch other officer authorized in thatbehalf;

[3,83 of1988][[3, 241991]

(b) there has been no change ofownership of the goods ;

(c) the re­export must be made withinone year from the date of importationas shown by the records of the customsoffice, unless such period is speciallyextended by the Principal Collector, ifhe considers that the re­export wasprevented due to circumstancesbeyond the control of the importer ;

(d) no drawback will be allowed ongoods (other than goods importedthrough the post by any person for hispersonal use) on which the import dutypaid does not exceed one hundredrupees;

(e) the claim for drawback must beestablished at the time of re­export, andpayment must be demanded within sixmonths from the date of entry forshipment ;

(f) when a drawback is allowed on there­export of goods imported the amountso allowed as drawback shall notexceed nine tenths of the duty paid orpayable at the time of importationthereof, notwithstanding the variationin. the rates of duty or the rates ofexchange.

(2) Save as hereinafter provided, this sectionshall not apply to goods which have been usedafter importation.

[3,83 of1988]

[16,83 of1988]

(3) Where however, the customs duties havenot been paid, the Principal Collector may, if heis satisfied that the conditions specified inparagraphs (a), (b) and (c) of subsection (1)have been complied with, permit the re­exportof such goods on payment of one tenth of theduty that would have been payable at the timeof import.

Importation withoutpayment of duty. 22A.

(1) The Principal Collector or such other officerauthorized in that behalf shall and subject tosuch terms and conditions as may beprescribed by the Minister from time to timeallow importation of articles which are intendedto be re­exported without payment of importduty.

(2) Where goods manufactured or processed inSri Lanka containing as a part or in gradientthereof any material imported and upon whichimport duty has been paid or secured areexported, refund or rebate of the whole or partof the import duty actually paid or secured inrespect of such quantity of the raw material orarticles as may appear to the satisfaction of thePrincipal Collector to have been used in themanufacture or processing of the goods shallbe allowed upon such terms, and subject tosuch conditions, as may be prescribed by theMinister.

(3) The provisions of subsection (2) shall applyonly to such goods as may from time to time beprescribed by the Minister by Notification to bepublished in the Gazette having regard to theeconomic development of the country.

(4) Drawback or rebate of the duty paid orsecured in the case of plant, machinery andequipment imported for use in projects andventures approved by the Minister, havingregard to the economic development of thecountry and subject to such terms andconditions shall be allowed, on re­export, bythe Minister at such rates as he may prescribe,having regard to the duration of use,depreciation in value and such othercircumstances relating to such plant,machinery or equipment.

Drawback ofexport duties. (5) Where any class or description of goods

manufactured or produced in Sri Lanka areexported to any place outside Sri Lanka andare thereafter re­imported, a drawback of theexport duties of customs paid at the time ofexport under this Ordinance shall be allowed infull or part in respect of such goods upon suchterms and conditions as may be prescribed bythe Minister having regard to the period withinwhich such goods are re­imported.

Penalty farfraudulentclaims.

(6) Every person concerned in making anyfraudulent claim for drawback or rebate of dutyshall at the election of the Collector be liable toa penalty not exceeding one hundred thousandrupees or three times the value of such goodson which such claim is made.

PART IIIPORT DUES

Port dues. 23.Provided that­

(a) when a vessel has paid port duesinwards or outwards she shall not beliable for additional port dues for goods

carried coastwise during the samevoyage;

(b) a vessel leaving port for a period notexceeding twelve hours for the purposeof trying her machinery or of throwingoverboard any damaged cargo shall,for the purposes of this section, bedeemed to be in port, and shall beliable on re­entry to pay only the fullpilotage dues chargeable in respect ofsuch vessel as if for a first entry intoport;

(c) the period during which such vesselhas been out of port shall, for thepurpose of reckoning buoy rent, beconsidered as part of her stay in port;

(d) where a sailing vessel or a vesselnot exceeding three hundred tonsburthen is compelled by stress ofweather to re­enter port within twelvehours of her departure therefrom, nofurther port dues shall be charged, ifthe Master Attendant certifies that thevessel could not have proceeded onher voyage without unnecessary risk.

(2) Parliament may from time to time, bymeans of resolution duly passed at any publicsession, increase, reduce, abolish, orotherwise alter the port dues leviable andpayable under Schedule C* on ships arriving ator departing from any port of Sri Lanka, andupon cargo imported to or exported fromColombo, or may impose port dues upon suchships in cases where port dues, at the timewhen such resolution is passed, are not

chargeable under the said Schedule: or mayadd to, rescind, or vary any of the conditions,exceptions, or provisions of the said Schedulewith regard to the charge or payment of portdues. Such resolution shall not take effect untilit shall have been notified in the Gazette.

(*Application modified within a " specified port " bysections 86 (2) and 86 (3) of the Sri Lanka PortsAuthority Act. Schedule omitted­See List of Enactmentsomitted from the Revised Edition. )

Power of Collectorto summarilyenforce payment ofdues, rates, buoyrent, charges, andpenalties.

24. If the master, owner, or agent of any vessel inrespect of which any dues, rates, buoy rent, charges, orpenalties have heretofore become payable, or havebeen incurred, or shall hereafter become payable or beincurred, whether under this Ordinance, or under anyregulations or orders made in pursuance thereof, orunder any other enactment or regulations, refuses orneglects to pay them or any part of them on demand,the Collector of Customs of the port may of his ownauthority distrain or arrest such vessel and the tackle,apparel, and furniture belonging thereto or any partthereof, and detain the same until the amount so due ispaid to him. And, in case any part of the said dues,rates, buoy rent, charges, or penalties, or of the costs ofthe distress or arrestment, or of the keeping of the sameremains unpaid for the space of five days next after anysuch distress or arrestment has been so made, theCollector of Customs may cause the vessel or otherthing so distrained or arrested to be sold, and theamount due to the State shall be deemed to be a firstcharge on the proceeds of such sale. The balance, ifany, of the proceeds of the sale, after satisfying theamount due to the State together with all costs, shall berendered by the Collector of Customs to the master,owner, or agent of such vessel on demand.

Composition forduties.

[8,35 of 1974]

[ 9,35 of 1974][17,83 of1988]

25. Any coastwise ship shall be allowed to compound forport dues for twelve months at such rate per ton of theregistered tonnage as may be fixed by the Minister byNotification published in the Gazette, and on paymentthereof the Collector or other principal officer shall granta certificate which shall exempt such vessel while soemployed from any further demand for port dues duringthe period stated in such certificate.

Tonnage of ship howascertained. 26. The tonnage or burthen of every British ship, within

the meaning of this Ordinance, shall be the tonnage setforth in the certificate of registry of such ship, and thetonnage or burthen of every other ship shall for thepurposes of this Ordinance be ascertained in the samemanner as the tonnage of British ship is ascertained 4

PART IVREGULATIONS INWARDS

27. And whereas it is expedient that the officers ofcustoms should have full cognizance of ail ships cominginto any port or place in Sri Lanka, or approaching thecoast thereof, and of all goods on board or which mayhave been on board such ships, and also of all goodsunladen from any ships in any port or place in Sri Lanka:

No goods to belanded nor bulkbroken beforereport. Times andplaces of landingand care of officers.Goods not reportedor entered, forfeited.Penalty.

It is enacted that no goods shall be unladen from anyship arriving from parts beyond the seas at any port orplace in Sri Lanka, nor shall bulk be broken after thearrival of such ship within the territorial waters of SriLanka, before due report of such ship and sufferancegranted, in manner hereinafter directed; and that nogoods shall be so unladen except at such times andplaces and in such manner and by such persons andunder the care of such officers as hereinafter directed;and that all goods not duly reported, or which shall beunladen contrary hereto, shall be forfeited ; and if bulkbe broken contrary hereto the master of such ship shallforfeit a sum not exceeding one hundred thousandrupees ; and if after the arrival of any ship within the

[ 2,35 of 1974][18,83 of1988]

territorial waters of Sri Lanka any alteration be made inthe stowage of the cargo of such ship so as to facilitatethe unlading of any part of such cargo, or if any part bestaved, destroyed, or thrown overboard, or any packagebe opened, such ship shall be deemed to have brokenbulk;

Except coin, bullion,cattle, passengers. Provided always that coin, bullion, cattle, and other

livestock, and passengers with their baggage, may belanded previous to report, entry or sufferance.

Ship and cargo to bereported withintwenty­four hours ofarrival of ship.Particulars of report.

28. The master of every ship arriving at any port or placein Sri Lanka, whether laden or in ballast, shall comewithin twenty­four hours after such arrival, and beforebulk be broken, to the custom­house, and there make areport in writing, and such report shall be in duplicate,and shall make and subscribe a declaration to the truthof the same before the Collector or other officer ofcustoms of the arrival and voyage of such ship, statingthe name, country, and tonnage, and if British, the portof registry, the name and country of master, the countryof the owners, the number of the crew, and how manyare of the country of such ship, the number ofpassengers, if any, and whether such ship be laden or inballast, and if laden, the marks, numbers, and contentsof every package or parcel of goods on board, and theparticulars of such goods as are stored loose, andwhere any such goods were laden, and where and towhom consigned, and where and what goods, if any,had been unladen during the voyage, and what part ofthe cargo, if any, is intended for exportation in such shipto parts beyond the seas, and what stores or stockremain on board such ship, as far as any of suchparticulars can be known to him; and further, the mastershall answer all such questions concerning the ship andthe cargo, and the crew and the voyage, as shall bedemanded of him by such officer; and if any goods shallbe unladen from any ship before such report be made,or if the master shall fail to make such report, or if aftersuch report any package shall have been opened, or ifhe shall make an untrue report, or shall not truly answer

[ 2,35 of 1974][19,83 of1988]

[ 2,35 of 1974][20,83 of1988]

the questions demanded of him, he shall be liable to apenalty not exceeding one hundred thousand rupees .

Master to delivermanifest, and, ifrequired, bill oflading, or copy.Penalty on failure.

29. The master of every ship shall, at the time of makingsuch report, deliver to the Collector the manifest of thecargo of such ship, when a manifest is required, and, ifrequired by the Collector, shall produce to him any bill orbills of lading, or a true copy thereof, for any and everypart of the cargo laden on board ; and in case of failureor refusal to produce such manifest or to produce suchbill of lading or copy, or if such manifest or bill of ladingor copy shall be false, or if any bill of lading be utteredor produced by any master, and the goods expressedtherein shall not have been bona fide shipped on boardsuch ship, or if any bill of lading uttered or produced byany master shall not have been signed by him or otherduly authorized person, or any such copy shall not havebeen received or made by him previously to his leavingthe place where the goods expressed in such bill oflading or copy were shipped, then in every such casesuch master shall be liable to forfeit a sum notexceeding one hundred thousand rupees .

officers to boardships. May seal orsecure goods andopen locks. Goodsconcealed forfeited.If seal, &c, broken,master to forfeit onehundred thousandrupees .

30. Officers of the customs may board any ship arrivingat any port in Sri Lanka, and freely stay on board until allthe goods laden therein shall have been duly deliveredfrom the same, and such officers shall have free accessto every part of the ship, with To have free power tofasten down hatchways, and to access to all mark anygoods before landing, and to lock ,up, seal, mark, orotherwise secure any goods on board such ship ; and ifany place or any box or chest be locked and the keys bewithheld, such officers, if they be of a degree superior totidewaiters or boatmen, may open any such place, box,or chest in the best manner in their power, and if they betidewaiters, or boatmen, or only of that degree, theyshall send for their superior officer who may open orcause to be opened any such place, box, or chest in thebest manner in his power; and if any goods be foundconcealed on board any such ship they shall beforfeited; and if the officers shall place any lock, mark, or

[ 2,35 of 1974][21,83 of1988]

[22,83 of1988]

seal upon any goods on board, and such lock, mark, orseal be wilfully opened, altered, or broken before thedelivery of such goods, or if any of such goods besecretly conveyed away, or if the hatchways after beingfastened down by the officer be opened, the master ofsuch ship shall be liable to forfeit a sum not exceedingone hundred thousand rupees .

Officers may bestationed in shipswithin the limits ofany port.

31. Officers of the customs may be stationed on boardany ship while within the limits of any port or place in SriLanka, and the master of every ship on board of whichany officer is so stationed shall provide every suchofficer with suitable shelter and accommodation while onboard, and in case of neglect or refusal so to do shall beliable to forfeit a sum not exceeding ten thousandrupees.

Penalty on masternot havingclearance and ifcargo do notcorrespond withship's papers, or ifgoods sent out ofvessels be notlanded at theappointed places.

32. If any ship shall arrive at any port in Sri Lankawithout, clearance or other paper which it is usual togrant at the place or places from which such ship shallhave come, the master shall be liable to a penalty notexceeding twenty­five thousand rupees or if any goodsentered on any clearance, or other paper granted at theplace from which any ship shall have come, shall not befound on board such ship, or if the quantity found beshort, and the deficiency be not duly accounted for, or ifgoods sent out of the ship be not landed at theappointed places, the master shall, in respect of anygoods which are missing or deficient and not accountedfor, be liable, if such goods are chargeable with duty,and if such duty can be ascertained, to a penalty oftwenty five thousand rupees or a sum not exceeding theamount of the duty chargeable thereon, whichever is thegreater amount, or if such duty cannot be ascertained orif such goods are not chargeable with duty, to a penaltynot exceeding ten thousand rupees for each missing ordeficient package, and the Collector is authorized torequire the payment of such penalty, and to decline thegranting of clearance outwards to the master of anyvessel so liable, and refusing the pay such penalty :

[ 2,35 of 1974][23,83 of1988]

[11,35 of1974]

Provided always that nothing herein contained shall beconstrued to prevent the Collector from accepting anexplanation in the absence of clearance, or permitting athis discretion the master of any ship to amend obviouserrors or to supply omissions from accidents orinadvertence, by furnishing an amended report, oraccepting at his discretion an estimated single duty inrespect of any class of goods.

Goods unshippedfrom the importingvessel, or landedcontrary to theregulations of theCollector, forfeited.Penalty on personsconcerned.

33. No goods shall be unshipped or carried from theimporting ship to any wharf or other place, except undersuch rules, regulations, and restrictions as the Collectormay from time to time direct and appoint; and all goodsunshipped or carried contrary to such rules, regulations,and restrictions, or any of them, shall be forfeited,together with the boat or other means used for theconveyance of such goods ; and every personknowingly concerned in the unshipping or carrying ofsuch goods, or into whose hands and possession suchgoods shall knowingly come, contrary to such rules,regulations, and restrictions, shall forfeit and pay a sumnot exceeding one hundred thousand rupees, or treblethe value of such goods, at the election of the saidCollector.

Provision withrespect to unladinggoods, depositingand removing of thesame from thewarehouse of theRepublic, andpenalties for failureto remove withinprescribed time.

34.(1) No goods shall be unladen from any shipuntil a sufferance shall have been granted bythe Collector for the landing of the same, andno goods shall be landed except at the placeappointed and expressed in such sufferance;and all goods so landed shall be taken anddeposited in the warehouse of the Republic,and within three clear days from the date oflanding the importer shall make a full andcomplete entry thereof as hereinafter provided,and shall either pay down all duties which shallbe due and payable on such goods, or shallduly warehouse the said goods, or, if the goodsbe free of duty, shall so enter the same; and indefault of such entry being made and the said

[ 2,35 of 1974]

goods being removed within three clear daysas aforesaid, such goods shall during suchtime as they may remain in the warehouse beliable to additional rent at such rate as may befixed by the Minister by regulation undersection 15; and all goods unladen, landed, orremoved without such sufferance, or contraryto the directions in such sufferance, shall beforfeited.

(2) In computing the said period of three cleardays, public holidays shall not be taken intoaccount; but, in ascertaining the period forwhich any goods are liable to double rent,account shall be taken of public holidays, and afractional part of a period of twenty­four hoursshall count as a full period of twenty­four hours.

(*Application modified by section 86 (2) of the Sri LankaPorts Authority Act.)

No goods to beunladen exceptduring the legalhours and days ofbusiness.

35. The master of any ship from which goods or cargoshall be unladen outside such hours as the PrincipalCollector with the sanction of the Minister may from timeto time prescribe, or on any day when the custom­houseis closed for business, without permission from theCollector, shall be liable to a fine not exceeding onethousand rupees, and the boat and other means usedfor the conveyance of such goods shall be liable to beforfeited.

Cargo in ships of150 tons to belanded within tendays, andexceeding 150 tonswithin twenty­fivedays after arrival ofsuch ship. In defaultCollector may landand convey goodsto warehouse of theRepublic. Duties,&c, to be paid withinone month, or goodsto be sold.

36. Except in special cases sanctioned by the Collectorof Customs, ten days, exclusive of public holidays, shallbe allowed for the discharge of the import cargoes ofvessels not exceeding 150 tons burthen; and twenty­fivedays for vessels exceeding that burthen ; and the saidperiod shall be calculated from the date on which thevessel was admitted to entry and sufferance granted ;and if any goods remain on board after the periods

[24,83 of1988]

above fixed the Collector may order such goods to be atonce landed, and in case of neglect of such directions orof unnecessary delay or other unwarranted cause theCollector may authorize the landing of the cargo and itsconveyance to the warehouse of the Republic; and if theduties, warehouse rent, and charges of landing andfreight due upon any goods so landed shall not be paidwithin one month after such landing, the same shall besold and the produce thereof applied, first to thepayment of freight and landing charges, next of dutiesand warehouse rent, and the overplus, if any, shall bepaid to the owner of the goods, if claimed within twelvemonths from the date of such sale, otherwise suchsurplus shall be brought to account as revenue :

Provided that it shall be lawful for the Collector to haveany small package or parcel of goods landed andconveyed to the warehouse of the Republic out of anyship whatever, although the periods above specifiedshall not have expired.

Goods in transit andgoods transhippedallowed withoutpayment of duty.

37.(1) Any goods in a vessel being goodsmentioned in the import manifest as goodsintended for transit in the same vessel to anyport outside Sri Lanka may be allowed to be sotransmitted without payment of duty.

(2) No transhipment of any goods shall bemade without payment of duty except by thespecial order of the Collector or other properofficer, and after due entry of the goods andsubject to such conditions as may beprescribed by the Minister. If any goods aretranshipped, or attempted to be removed fromone vessel to another contrary to theprovisions of this section, such goods, togetherwith the boat and other means used forconveying the same, may be seized and shallbe liable to forfeiture.

[25,83 of1988]

Boat­notes toaccompany goodsunladen from anyship & c.

38. With all goods unladen from any ship there shall besent with each boat load a boat­note, specifying thenumber or packages and the marks and numbers orother description thereof, and such boat­note shall befurnished and signed by an officer of the ship, and ifthere be a customhouse officer on board the boat­notesshall be signed by such officer also ; and the tindal andowner of the boat into which the goods have been ladenshall be held responsible for the due landing anddelivery at the custom­house of all the goods so ladenand specified in the boat­note, and shall be liable totreble the duties due on any deficiency; and if any goodsbe found in a boat without a boat­note, as aboveprovided for, or in excess of the quantity specified in theboat­note, or if the boat be found deviating from theproper course to the proper place of landing, the boatcontaining such goods may be detained by any officer ofthe customs, and unless the cause of deviation orexcess be explained to the satisfaction of the Collector,such boat and such goods shall be liable to forfeiture.

The owner of each such boat shall provide the Collectorwithin such period as may be specified in that behalf bythe Collector a statement setting out the quantity anddescription of the goods so laden, the person to whomand the place at which he has delivered those goods,and such other particulars as the Collector may, bywritten order issued to him not less than seven daysbefore the expiration of the aforesaid period, require himto furnish. Any such owner who fails to provide suchstatement within such period shall be liable to a penaltyof ten thousand rupees.

Ship's stores. 39. The stores of every ship shall be subject to the sameduties and the same prohibitions, restrictions,regulations, fines, and penalties, as goods andmerchandise on importation, and may in like manner beentered for payment of proper duties or to bewarehoused.

Goods to be landedand examined at theexpense of importer.

40. The unshipping, carrying, and landing of all goods,and the bringing of the same to the proper place forexamination or for weighing, and the putting of the sameinto and out of the scales, and the measuring, counting,unpacking, and repacking, and the opening and closingof the same, and removing to and placing them in theproper place of deposit shall be performed by and at theexpense and risk of the importer, consignee, or agent.

Goods inwarehouse must beproperly stowed andre­piled.

41. All goods placed in the warehouse of the Republic orother warehouses by any person shall be stowed bysuch person so as to afford easy access thereto, and insuch parts or divisions of the warehouse and in suchmanner as the Collector shall direct; and if the stowagebe broken the goods shall be re­piled by the personbreaking such stowage, in such manner as the Collectormay require.(*Application modified by section 86 (2) ofthe Sri Lanka Ports Authority Act. Schedule omitted­SeeList of Enactments omitted from the Revised Edition.)

Penalty for neglector refusal. 42. If any person placing such goods or breaking the

stowage shall neglect or refuse to stow or re­pile themas hereinbefore directed, he shall for such neglect orrefusal be guilty of an offence, and be liable to a fine notexceeding one hundred rupees :

Expenses to be Provided that it shall be lawful for theperson so offending to avoid prosecution for the offenceby tendering double the sum incurred in properlystowing or re­piling the goods; and if such sum be dulytendered before the institution of the prosecution, nofurther proceedings shall be had against such person forthe offence aforesaid.

In case of prosecution, the Magistrate shall paid todirect so much to the fine as shall be Collector sufficientto cover the expense of properly stowing and re­pilingthe goods to be paid to the Collector. (* Applicationmodified by section 86 (2) of the Sri Lanka Ports

[ 2,35 of 1974]

[26,83 of1988]

Authority Act. Schedule omitted­See List of Enactmentsomitted from the Revised Edition.)

Prohibitions andrestrictions. 43. If any goods enumerated in the table of prohibitions

and restrictions in Schedule Bf shall be imported orbrought into Sri Lanka contrary to the prohibitions andrestrictions contained in such table in respect thereof,such goods shall be forfeited, and shall be destroyed ordisposed of as the Principal Collector of Customs maydirect:

Provided that if any dangerous substance be importedor brought into Sri Lanka without the licence of theMinister, or contrary to any of the regulations which maybe made from time to time by the Minister, for the safelanding and deposit of such substance, the personimporting or bringing the same to Sri Lanka, and anyperson concerned in such importation or bringing of thesame, shall, in addition to the forfeiture above provided,be guilty of an offence and be liable to a fine notexceeding two thousand rupees.

Goods exportedcontrary to theprohibitions andrestrictions inSchedule B to beforfeited.

44. If any person exports or attempts to export or takeout of Sri Lanka any goods enumerated in the table ofprohibitions and restrictions in Schedule B, incontravention of the prohibitions and restrictionscontained in such table in respect thereof, such goodsshall be forfeited, and shall be destroyed or disposed ofas the Principal Collector of Customs may direct.

45. Repealed By Act [§26,83 of 1988]

Abatement of dutyon damaged goods. 46.

(1) Where any goods imported into Sri Lankahave sustained damage, the Principal Collectorof Customs may, upon claim made in thatbehalf and upon proof to his satisfaction thatsuch damage was sustained after the goodshad been shipped in the importing ship andbefore the goods had been landed in Sri

Lanka, make an abatement of the whole or anypart of the duty chargeable thereon, as he mayin his discretion determine.

(2) Every claim under subsection (1) for theabatement of duty shall be made by theimporter or consignee of the goods in suchform and in such manner as the PrincipalCollector may prescribe.

(3) If the importer or consignee of the goods isnot satisfied with the abatement made by thePrincipal Collector, the Principal Collector maycall upon two impartial merchants orrepresentatives of insurance companies toexamine the goods and report to what extent intheir judgment the goods are lessened in valueby the damage they have sustained, and may,in his discretion, having regard to such report,vary the original abatement.

(4) Where an abatement of the whole dutyoriginally chargeable on any goods is madeunder subsection (1), or where any damagedgoods are abandoned by the importer orconsignee thereof, the Principal Collector mayin his discretion take those goods for the use ofthe State, or order that those goods bedestroyed or removed from the customspremises under the supervision of an officer ofcustoms and at the expense of the importer orconsignee of the goods.

(5) Where the importer or consignee of anygoods fails to pay any sum incurred undersubsection (4) in the destruction or removal ofsuch goods, it shall be lawful for the officers ofcustoms to refuse to pass any other goodsbelonging to such importer or consignee untilsuch sum is paid ;

[27,83 of1988]

Provided that nothing in the precedingprovisions of this subsection shall be deemedto prohibit the recovery of such sum from suchimporter or consignee as a debt due to theState.

Importer to deliverbill of entry togetherwith otherdocuments.

47. The person entering any goods inwards, whether forpayment of duty or to be warehoused, or for payment ofduty upon the taking out of the warehouse, or whethersuch goods be free of duty, shall deliver to the Collectora bill of entry of such goods, on a form of such size andcolour as may be specified in that behalf by theCollector by Notification published in the Gazette, andbe fairly written in words at length, expressing the nameof the ship, and of the master of the ship in which thegoods were imported, and of the place from which theywere brought, and the description and situation of thewarehouse, if they are to be warehoused, and the nameof the person in whose name the goods are to beentered, and the quantity, value and description of thegoods, and the number , dimensions, and denominationor description of the respective packages containing thegoods, and such other particulars as the Collector bythat or a subsequent Notification may require him tofurnish, and in the margin of such bill shall delineate therespective marks and numbers of such packages. Theparticulars furnished in the bill of entry shall besupported by such documents containing suchparticulars as the Collector may, by Notificationpublished in the Gazette, require If such person fails todeliver a bill of entry prepared, and supported by suchdocuments, as aforesaid, he shall be liable to a penaltynot exceeding one thousand rupees. Such person shallpay any duties and dues which may be payable uponthe goods mentioned in such entry ; and such personshall also deliver at the same time two or moreduplicates of such bill, in which bill all sums andnumbers shall be expressed in figures, and theparticulars to be contained in such bill shall be legibly

written and arranged in such form and manner, and thenumber of such duplicates shall be such, as theCollector shall require, and such bill of entry whensigned by the Collector, or person authorized by him,and transmitted to the proper officer, shall be thewarrant to him for the examination and delivery of suchgoods ; but if such goods shall not agree with theparticulars in the bill of entry the same shall be forfeited,and such forfeiture shall include all other goods whichshall be entered or packed with them as well as thepackages in which they are contained.

Delivery of goodsprior to entry. 48. Notwithstanding anything contained in section 47, it

shall be lawful for the Collector, on application madeand subject to such regulations as the PrincipalCollector of Customs may from time to time issue, toallow the delivery of goods with or without examination,prior to the presentation of the bill of entry ; Providedthat­

(a) any misdescription or under­valuationappearing in the application shall render theimporter liable to the penalties imposed by thisOrdinance for misdescription or undervaluationin the bill of entry ;

(b) such delivery shall not in any way beconstrued as a waiver of the Collector's right toorder forfeiture of the goods for any breach ofthis Ordinance committed in respect to suchgoods by the importer thereof, or relieve suchimporter from any penalty or liability to whichhe would have been subject had delivery beenclaimed on the presentation of the bill of entry;

(c) if any sum of money imposed as a penaltybe not duly paid, it shall be lawful for theofficers of customs to refuse to pass any othergoods imported by that importer until the saidsum of money is paid.

[28,83 of

Entry by bill of sight.Perfect entry to bemade within threedays. In defaultgoods to be soldafter one month.

49. The importer of any goods, or his agent, if unable,for want of full information, to make perfect entry of suchgoods, may on making and subscribing a declaration tothat effect before the Collector, or other proper officer ofcustoms, make an entry by bill of sight for the packagesor parcels of such goods, in order that the same may beseen and examined by the proper officer, and withinthree days after the goods shall have been so examinedthe importer shall make a perfect entry thereof, either forpayment of duty or for warehousing, as the case maybe; but if the importer shall neglect to pass such perfectentry within one month after the date of the examination,such goods shall be sold for the payment of duties,warehouse rent, and other charges due thereon, andthe overplus, if any, shall be paid to the proprietor of thegoods.

Entry to agree withmanifest & c. Goodsnot duly enteredforfeited.

50. No entry nor any warrant for the delivery of anygoods, or for the taking of any goods out of anywarehouse, shall be valid unless the particulars of thegoods and packages in such entry shall correspond withthe particulars of the goods and packages purporting tobe the same in the report of the ship, and in themanifest, where a manifest is required, and in thecertificate or document, where any is required, by whichthe importation or entry of such goods is authorized, norunless the goods shall have been properly described insuch entry by the denominations, and with thecharacters and circumstances according to which suchgoods are charged with duty, or may be imported, eitherto be used in Sri Lanka, or to be warehoused forexportation only; and any goods taken or delivered outof any ship, or out of any warehouse, or for the deliveryof which, or for any order for the delivery of which, fromany warehouse, demand shall have been made, nothaving been duly entered, shall be forfeited.

Action applicable togoods exemptedfrom customs dutiesand other duesconditionally.

50A.(1) Where any goods imported Sri Lanka havebeen

1988]

[29,83 of1988][2,2 of 2003]

(a) exempted from the payment ofcustoms duties or other dueschargeable on their importation orcharged with customs duty at reducedrate, subject to any conditionsstipulated In that behalf; or

(b) allowed into Sri Lanka, under anyother law subject to any conditions tobe fulfilled after their importation,

and where such conditions are not compliedwith, then such goods shall be forfeited.

(2) If such goods are not at the time offorfeiture in the possession of the person inwhose name such goods were imported, thensuch person shall forfeit a sum not exceedingthree times the value of such goods as at thetime of their importation.

(3) The provisions of this section shall applywhether or not any undertaking or security hasbeen given under any other provisions of thisOrdinance for compliance with the conditionsstipulated or for the payment of the dutypayable and the forfeiture of any goods underthis section shall not affect any liability of anyperson who has given any such undertaking orsecurity.

Value of goods forthe purpose of advalorem duties.

51. In all cases when the duties imposed upon theimportation of articles are charged according to thevalue thereof, the respective value of each such articleshall be stated in the entry together with the descriptionand quantity of the same, and duly affirmed by adeclaration made by the importer or his agent on a form

[3,2 of 2003]

of such size and colour as may be specified by theDirector­General by notification published in theGazette, and such value shall be determined inaccordance with the provisions of Schedule E, andduties shall be paid on a value so determined .

When office in doubthe may call forfurther information

51A.(1)

(a) whenever an officer of customs hasreason to doubt the truth or accuracy ofany particulars contained in a bill ofentry or a declaration made undersection 51 or the documents presentedto him in support of a bill of entry undersection 47, the officer of customs mayrequire the importer or his agent or anyother party connected with theimportation of goods, to furnish suchother information. includingdocumentary or other evidence in proofof the fact that the declared customsvalue represents the total amountactually paid or is payable for theimported goods as adjusted inaccordance with Article 8 of ScheduleE.

(b) After the receipt of furtherinformation or in the absence of anyresponse, if the officer of customs stillhas reasonable doubt as to the truth oraccuracy of the declared customsvalue, it shall be deemed that thecustoms value of the imported goods inquestion cannot be determined underthe provisions of Article 1 of ScheduleE and the importer, if so requests, shallbe informed by the officer m writing ofthe grounds for such doubt and beafforded an opportunity to he heard.

(c) The officer of customs maythereafter proceed to determine thecustoms value in accordance with theother provisions of Schedule E andamend the value as appropriate.

(2) If an officer of customs is satisfied as aresult of an examination or investigation, or anaudit carried out under section 128A, at anytime prior to or after the clearance of the goodsthat the value declared by the importer or hisagent under an Article of Schedule E underwhich the value was initial accepted, is notappropriate the officer of customs may amendthe value in accordance with the appropriateArticle of Schedule E.

(3) For the purpose of this Ordinance, thecustoms value shall be the amended valueunder subsection (1) or (2).

(4) Upon a written request, an explanation shallbe given in writing to the importer, on how thecustoms value of the importers goods wasdetermined under subsection (2).

(5) Subsection (2) shall apply to goods whetheror not such goods have been released from thecontrol of the customs or any duty assessed onthem has been paid.

(6) An importer who is dissatisfied with adecision of the officer, under this section may.within ten working days after the date on whichnotice of the decision is given, appeal to theDirector­General against that decision. Theright of appeal shall he available to an importerwhether or not the imported goods have been

[3,2 of 2003]

[3,2 of 2003]

released to him and whether or not any part ofthe custom duty has been paid. The decision ofthe Director­General on the appeal and thereasons for such a decision shall be in writing.

(7) Where the importer desires to clear thegoods pending the determination of his appealthe Director­General may. except in casewhere fraud is suspected, allow the clearanceof the goods upon furnishing security for thepayment of the customs duties and other leviesfor which the goods may be liable.

Importer to keeprecords for threeyears.

51B.(1) Every Importer, agent or others concernedin the importation, movement and yearsstorage of imported goods shall keep or causeto be kept in Sri Lanka such records for aperiod of three years from the date ofimportation as may be prescribed.

(2) Every such person shall whenever requiredby an officer of customs "­

(a) make the records available to suchofficer;

(b) provide copies of the records asrequired ; and

(c) answer any questions relating tomailers arising under the Ordinance.

Confidentially to bestrictly maintained. 51C. All information which are confidential in nature or

are provided in confidence for the purpose of customsvaluation shall be so treated by the officer of customs

[30,83 of1988][4,24 of 1991][4,2 of 2003]

[5,2 of 2003]

and shall not be disclosed without the written permissionof the persons or government providing suchinformation, except to the extent that it may lie requiredto be disclosed in the course of judicial proceedings.

Forfeiture for non­compliance or falsedeclaration.Forfeiture of valuewhere goods notrecoverable.

52. Where it shall appear to the officers of the customsthat the value declared in respect of any goodsaccording to section 51 is a false declaration, the goodsin respect of which such declaration has been madeshall be forfeited together with the package in whichthey are contained. Where such goods are notrecoverable, the person making such false declarationshall forfeit either treble the value of such goods or beliable to a penalty of one hundred thousand rupees, atthe election of the Collector of Customs.

Penally failing tokeep destroying oraltering records & c.

52A. Every person who in contravention of theprovisions of the Ordinance, fails to keep . recordswhich are required to be kept under section 51 is ordestroys, alters or conceals am book register, record orother document required to be kept under thisOrdinance or sends or attempts to send out of Sri Lankaany such book register, record or document commits anoffence and shall be liable to a penalty not exceedingfive hundred thousand rupees.

PART VENTRY OF GOODS REIMPORTED

Entry of reimported,goods by bill ofstores.

53. All goods, the produce or manufacture of Sri Lanka,shall reimported be deemed and taken to be, and beentered as foreign produce or manufacture, and shall beliable to the same duties, rules, regulations, andrestrictions as such goods of foreign produce andmanufacture would be liable to on importation thereof,unless the same shall be reimported within two yearsafter the exportation thereof, and unless it be proved tothe satisfaction of the proper officers that the property insuch goods has continued and still remains in theperson by whom or on whose account the same have

[31,83 of1988]

been exported, in which case the same may be enteredas goods, the produce or manufacture of Sri Lanka, bybill of store containing such particulars, and in such formand manner as the Collector may direct.

Bill of store may beissued by the properofficer. Agent todeclare name ofemployer.Consignee todeclare who isproprietor.Proprietor to declareto identity andproprietorunchanged. Theentry by bill of storeto be granted.Appointment ofwarehouses inspecified ports.

54. The person in whose name any goods re­importedwere entered for exportation shall deliver to the properofficer of customs an exact account signed by him of theparticulars of such goods referring to the entry andclearance outwards, and to the return inwards of thesame, with the marks and numbers of the packages,both inwards and outwards ; and thereupon the officerfinding that such goods had been legally exported shallgrant a bill of store for the same and if the person inwhose name such goods were entered for exportationwas not the proprietor thereof, but his agent, he shalldeclare in such bill of store the name of the person bywhom he was employed as such agent, and if theperson to whom such returned goods are consignedshall not be such proprietor and exporter, he shall makeand subscribe a declaration in such bill of store of thename of the person for whose use such goods havebeen consigned to him, and the real proprietorascertained to be such shall make and subscribe adeclaration upon such bill of store to the identity of thegoods so exported and so returned, and that he was atthe time of exportation and of re­importation theproprietor of such goods, and that the same had notduring such time been sold or disposed of to any otherperson, and such declaration shall be made before theCollector and thereupon the Collector, shall admit suchgoods to entry by bill of store, and grant his warrantaccordingly :

Provided that in any case where at the time ofexportation of the goods, drawback or rebate of anycustoms duty levied was allowed or where the goodswere exported from bond without payment of thecustoms duty upon first entry, the customs duty equal tothe amount of such drawback or rebate and the duty ifany that would have been payable on such goods or

[32,83 of1988]

such part of the goods as may have been used in themanufacture of the article imported shall have to bepaid. ".

PART VIREMOVAL OF GOODS BY SEA OR INLAND CARRIAGE

Goods may beremoved by land, orfrom one sea port toanother in Sri Lanka.

55. Goods may be removed or carried from one port ofSri Lanka to any other port there in by sea or inlandcarriage previous to payment of duties, on the owner orhis agent duly entering the same, and giving bond to thesatisfaction of the Collector for the due delivery thereofat the custom­house of the port to which such goods areto be removed ; and if the seals of office attached tosuch packages be broken, or if the contents shall not befound to agree with the particulars of entry and advicefrom the port of removal, such packages, with theircontents, shall be forfeited, and the bond given for thesafe and due delivery of the goods enforced. TheMinister may from time to time direct and appoint rules,regulations, and restrictions in respect of the saidremoval of goods, and all goods carried or removedcontrary thereto shall be forfeited.

PART VIIREGULATIONS OUTWARDS

Ship to be enteredand goods clearedbefore shipment.

56. And whereas it is expedient that the officers ofcustoms should have full cognizance of all shipsdeparting from any port or place in Sri Lanka and of allgoods taken out of Sri Lanka; it is enacted that themaster of every ship shall, before any goods be ladentherein, deliver to the Collector a certificate from theproper officer of the due landing of the inward cargo ofsuch ship, of her last voyage, and also an entryoutwards under his hand, stating her name, country, andtonnage, the port of registry, the name of the master andof the owners, and the number of the crew andpassengers, and the destination of such ship. If anygoods be laden on board any ship before such entry be

[33,83 of1988]

made, the master of such ship shall forfeit a sum notexceeding ten thousand rupees.

Exporter to deliverbill of entry. 57. The person exporting any goods whether liable to

the payment of duty or free of duty shall deliver to theCollector a bill of entry of such goods, on a form of suchsize and colour as may be specified in that behalf by theCollector by notification published in the Gazette, andfairly written in words at length expressing the name ofthe ship in which the goods are to be exported and ofthe port to which they are to be taken, and containing anaccurate specification of the quantity, quality, and valueof such goods, and the number, denomination,dimensions, and description of the respective packagescontaining the goods and such other particulars as theCollector by that or a subsequent notification mayrequire him to furnish, and in the margin of such bill ofentry shall delineate the respective marks and numbersof such packages.

If such person fails to deliver a bill of entry prepared asaforesaid, he shall be liable to a penalty of onethousand rupees. Such person shall pay any duties anddues which may be payable on the goods mentioned insuch entry, and such person shall also deliver at thesame time two or more duplicates of such bill in whichall sums and numbers shall be expressed in figures, andthe particulars to be contained in such bill shall belegibly written and arranged in such form and mannerand the number of such duplicates shall be such as theCollector shall require, and such bill of entry whensigned by the Collector or person authorized by him andtransmitted to the proper officer shall be the warrant tohim for the examination of and delivery for shipment ofsuch goods, and if such goods shall not agree with theparticulars in the bill of entry, or if such goods areremoved from the warehouse or other place appointedfor shipment before such entry is passed and all dutiesand dues paid, and in the absence of any explanation tothe satisfaction of the Collector the same shall beforfeited, and such forfeiture shall include all other

[34,83 of1988]

goods which shall be entered or packed with them aswell as the packages in which they are contained.

Exportation prior tothe presentation ofthe bill of entry

58. Notwithstanding anything contained in section 57, itshall be lawful for the Collector, on application made inthat behalf by an exporter of goods and subject to suchconditions as may be imposed by the Principal Collectorand notified in the Gazette, to permit the exportation ofsuch goods prior to the presentation of the bill of entryfor such goods:

Provided that­(a) any misdescription or under­valuationappearing in the application shall render theexporter liable to the penalties imposed by thisOrdinance for misdescription or undervaluationin the bill of entry;

(b) such permission to export shall not in anyway be construed as a waiver of the Collector'sright to order forfeiture of the goods, if thegoods have not already been shipped out of SriLanka, for any breach of this Ordinancecommitted in respect of the goods by theexporter, or shall not relieve the exporter fromany penalty or liability to which he would havebeen subject had the goods been exportedafter the presentation of the bill of entry; and

(c) if any sum of money imposed as a penaltybe not duty paid, it shall be lawful for theofficers of customs to refuse to pass any othergoods brought for exportation by the exporteruntil the said sum of money is paid.

Boat­notes toaccompany goodsladen for export.

59. No goods shall be laden, put off, or waterborne to beshipped for exportation or coastwise, or shipped onboard any ship, boat, or lighter, outside such hours as

the Principal Collector with the sanction of the Ministermay, from time to time, prescribe, or on any day whenthe custom­house is closed for business, withoutpermission from the Collector, nor from any placeexcept some legal quay or other place duly appointedby the Collector, nor without the presence or authority ofthe proper officer of customs, nor before due entryoutwards of the vessel on which the goods are to beshipped, nor before such goods shall have been dulyentered and duly cleared for shipment by such officer,who may open all packages and fully examine all goodsbrought and intended for shipment; and all goods laden,put off, or water­borne, in any ship, boat, or lighter shallbe accompanied by a boat­note signed by the locker orother officer of customs and specifying the number ofpackages and the marks and numbers and otherdescriptions of the goods, and all goods shut out for anyreason shall be immediately reconveyed to the place oflading; and the Collector shall have power, with theapproval of the Minister, to make regulations from timeto time relating to the shipping of goods and to the re­landing of shut­out cargo, and all goods which areladen, put off, water­borne, or shipped contrary to theprovisions of this section or of any regulations madehereunder, or which are found in a boat without a boat­note, or in excess of the quantity specified in the boat­note, or in excess of the quantity shut out, or which areshipped on board any vessel not duly entered outwardsmay be re­landed by the proper officer of customs, and,in the absence of any explanation to the satisfaction ofthe Collector, shall be forfeited together with the meansof conveyance.

Every person knowingly concerned in the lading, puttingoff or carrying of such goods, or into whose hands andpossession such goods shall knowingly come, contraryto the provisions of this section or of any suchregulation, shall forfeit and pay a sum not exceedingone hundred thousand rupees, or treble the value ofsuch goods, at the election of the Collector.

[ 13,35 of1974]

[ 14,35 of1974][35,83 of1988]

Goods to beexamined atexpenses ofexporter.

59A. All such steps as are deemed necessary by theCollector or proper officer of customs for the purpose ofthe examination of any goods brought and intended forshipment shall be performed by and at the expense andrisk of the exporter or his agent.

Stiffening order 60. When it shall become necessary to lade heavygoods on board any ship before the whole of the inwardcargo is discharged, the Collector may, previous to theentry outwards of the ship, issue a stiffening order,sanctioning the shipment of the goods. (* Applicationmodified by section 86 (2) of the Sri Lanka PortsAuthority Act.)

Stores. 61. On due requisition by the master the Collector mayallow for the use of such ship such stores as mayappear necessary according to the voyage upon whichshe is about to depart, but no articles taken on boardany ship shall be deemed to be stores unless dulyshipped as such by entry or by permit of the Collector orother proper officer.

Collector may grantgeneral sufferancefor the shipping ofgoods.

62. On the entry outwards of any ship the Collector shallgrant a general sufferance for the shipment and ladingof any sort of goods, the produce or manufacture of SriLanka, except such as shall be expressly exceptedtherein: Provided always that before the clearingoutwards of such ship, the exporter of any goods onboard the same shall deliver to the Collector an entry,containing an accurate specification of the quantity,quality, and value of such goods ; and if suchdeclaration be false, or if he fails to make such entrybefore the content of the ship is delivered in by themaster, he shall forfeit a sum not exceeding fivethousand rupees; and the Collector may refuse to certifysuch shipment on the clearance of such ship. (*Application modified by section 86 (2) of the Sri LankaPorts Authority Act.)

Master to delivercontent answerquestions, and

[ 2,35 of 1974][36,83 of1988]

[ 15,35 of1974][37,83 of1988]

produce bills oflading Certificate ofclearance.

63. Before any ship, whether laden or in ballast, shall becleared outwards at any port in Sri Lanka, the mastershall deliver a content of such ship, setting forth thename and tonnage of such ship and the place or placesof her destination, and the name of the master, thenumber of passengers, also, if laden, an account of thegoods shipped on board, and of the packagescontaining such goods, and of the marks and numbersupon such packages, and a like account of the goods onboard, if any, which had been reported inwards forexportation in such ship, so far as any of suchparticulars can be known by him, and the master of theship shall furnish such content in duplicate, and shallmake and sign a declaration before the Collector to thetruth of such content, and shall also answer suchquestions concerning the ship, the cargo and theintended voyage, as the Collector shall demand of him,and, if required by the Collector, shall produce to himany bill or bills of lading, or a true copy thereof, for anyand every part of the cargo laden on board, andthereupon the Collector or other proper officer shallmake out and give to the master a certificate of theclearance of such ship for her intended voyage,containing an account of the total quantities of theseveral sorts of goods laden therein, or a certificate ofher clearance in ballast, as the case may be; and if theship shall depart without such clearance, or if the mastershall deliver a false content, he shall forfeit a sum notexceeding one hundred thousand rupees.

Officers may boardvessels afterclearance

64. It shall be lawful for the officers of the customs to goon board any ship before and after clearance outwardswithin the limits of any port in Sri Lanka, or within of1974] the territorial waters of Sri Lanka, and to demandthe certificate of clearance and the victualling bill, and ifthere be any goods on board subject to duty and notduly entered outwards, such goods shall be re­landedand forfeited ; and if any goods contained in suchclearance or victualling bill be not on board, the mastershall forfeit a sum not exceeding five thousand rupeesfor every package or parcel of goods contained in suchclearance or victualling bill and not on board.

[ 2,35 of 1974]

PART VIIITRADE BY VESSELS OF LESS THAN 15 TONS BURTHEN

No goods to beimported orexported in vesselof less than 15 tons

65. No goods shall be imported into exported from SriLanka from or to parts beyond the seas in any ship ofless burthen than fifteen tons, and any goods SOimported or exported shall be forfeited :

unless allowed byOrder of theMinisters.

Provided that it shall be lawful for the Minister, by anyOrder to be by him issued and published in the Gazette,to allow ships or boats under fifteen tons burthen toimport or export any goods from or to parts beyond theseas, at such ports or places, and during such periodsor times and in such manner as may be deemedexpedient, upon any pearl fishery or other occasionappearing to require the same.

PART IXREGULATIONS COASTWISE

Coastwise trade. 66. All ships conveying goods coastwise, and all goodsimported or exported coastwise, shall be liable to thelike cognizance of the customs, and be subject to thesame prohibitions, restrictions, regulations, fines,forfeitures, and penalties as goods imported from orexported to parts beyond the seas, and it shall be lawfulfor the Minister to make and appoint such otherregulations, by any Order to be by him issued andpublished in the Gazette, for the carrying coastwise ofany goods, as to him shall appear expedient, and suchOrder shall have the same effect in law as if it hadformed part of this Ordinance,

What goods shall becarried coastwise. 67. No goods shall be carried in any coasting ship

except such as shall be laden to be so carried at someport or place in Sri Lanka, and if any goods shall betaken into or put out of any coasting ship at sea, or overthe sea, or if any coasting ship shall touch at any placeover the sea, or deviate from her voyage, unless forced

by unavoidable circumstances, or if the master of anycoasting ship which shall have touched at any placeover the seas shall not declare the same in writingunder his hand to the Collector at the port in Sri Lankawhere such ship shall afterwards first arrive, the masterof such ship shall be liable to forfeit a sum notexceeding one hundred thousand rupees.

PART XREGULATION OF MOVEMENTS, & C., OF SHIPS UNDER 250

TONS TONNAGERegulation ofmovements, &c, ofships under 250tons tonnage.

68.(1) The Minister in charge of the subject ofFinance may make any such regulations asmay appear to him expedient for the purposeof enabling the officers of customs to have fullcognizance of the movements, to or from anyport or place in Sri Lanka, of ships notexceeding 250 tons tonnage, and generally forthe purpose of the prevention of the smugglingof goods into or from Sri Lanka or of theimportation or exportation of goods contrary toany such prohibitions or restrictions as may beapplicable by virtue of any other written law.

(2) Without prejudice to the generality of thepowers conferred by subsection (1),regulations made under that subsection mayprovide for all or any of the following matters:­

(a) the registration by the Collector ofCustoms of ships ordinarily based orstationed at any port or place in SriLanka, and the prohibition of the use ofships or of the making of voyages orthe conveyance of goods by shipswhich are not duly registered;

(b) the limits within which ships may beused or make voyage, the places at

which they may be stationed oranchored, the mode of navigationthereof, the purposes for which and themanner in which they may beemployed, and the marking of shipswith their names or with numbersassigned to them by the Collector;

(c) the prohibition of the employment orengagement on ships, whether asmaster or member of the crew, of anyperson who has at any time beenconvicted of any offence mentioned insection 129 or section 130 or any otherspecified section of this Ordinance;

(d) the issue of licenses by theCollector of Customs exempting shipsfrom the operation of any regulationmade in respect of any matter referredto in the preceding paragraph (b), andthe circumstances in which, and theconditions and restrictions subject towhich, such licenses may be issued.

(3) Any regulation made under the precedingprovisions of this section may be limited in itsapplication to ships of any specified tonnage,build or description or to ships ordinarily basedat or departing from or arriving at, any port orplace in any specified area in Sri Lanka; andany such regulation may provide differentrequirements in respect of ships of differenttonnage, build or description or ordinarilybased or stationed at ports or places indifferent areas.

(4) Every regulation made by the Ministerunder the preceding provisions of this section

[2 ,35 of1974][39, 83 of1988]

[40,83 of1988]

shall be brought before Parliament forapproval, and if so approved shall come intoforce on the date of its publication in theGazette or on such later date as may bespecified in such regulation.

(5) Every ship which is used or employed ormakes voyage in any manner contrary to anyregulation made under the precedingprovisions of this section which may beapplicable to such ship, and any goods whichare unlawfully carried therein or any goodswhich having been unlawfully carried thereinare jettisoned therefrom, shall be liable toforfeiture.

(6) Any person who knowingly or willfullycontravenes or fails to comply with anyprovision of any regulation made under thepreceding provisions of this section shall of beliable to a penalty not exceeding ten thousandrupees.

PART XIWAREHOUSING OF GOODS

Power to appointwarehouses forwarehousing ofgoods.

69. The Principal Collector may, from time to time bynotice in writing under his hand, appoint warehouses orplaces of security for the purposes of this Ordinanceand direct in what different parts or divisions of suchwarehouse or places, and in what manner, and underwhat regulations, any and what short of goods may bewarehoused, kept, and secured without payment of dutyupon the first entry thereof, and may having regard tothe nature and the value of the goods to be warehousedalso direct in what cases, and with what sureties, and towhat amount, security by bond or such other securityshall be required in respect of any warehouse soappointed as aforesaid, or in respect of any goods

[41,83 of1988]

deposited therein, or for the security of the duties duethereon ; and the Principal Collector, may having regardto the safety and the security of the goods to bewarehoused therein, by a like notice revoke or alter anysuch appointments or declarations; but every suchnotice of the appointment of warehouses, or of therevocation thereof, shall be subject to the Minister'sapproval and shall be published in such manner as hemay direct:

Appointment ofwarehouses inspecified ports.

Provided however that the appointment of anywarehouse or place of security within a specified port asdefined in the Sri Lanka Ports Authority Act, No. 51 of1979, or within an airport shall be With the concurrenceof the Sri Lanka Ports Authority established by the SriLanka Ports Authority Act or of the authority in charge ofsuch airport, as the case may be. ".

Warehouse Keeperto give security asrequired by theCollector.

70. The proprietor or occupier of every warehouseapproved of and appointed as aforesaid, or someone onhis behalf, shall give or procure to be given security bybond with or without sureties, or such other security asthe Collector may approve, for the payment of the fullduties of importation on or for the due entry forexportation or for exportation after any process ofmanufacture or assembly as provided for in section 84of all such goods as shall at any time be warehousedtherein and no goods shall be warehoused in any suchwarehouse until such security shall have been given.

Importer undercertain restrictionsmay warehousegoods,

71. The importer of any goods into any warehousing portmay warehouse the same in warehouses appointed asaforesaid, or in any public warehouse, without paymentof any duty on the first entry thereof, subject to theregulations, restrictions, and conditions hereinaftermentioned and from time to time directed by theCollector; but nothing herein contained shall beconstrued to render it incumbent on Government toprovide accommodation for the warehousing of goods,or for the deposit of salt, which shall be warehousedonly in private warehouses.

Entry for thewarehouse.Particulars. Warrantfor warehousing.Bond upon entry ofgoods for thewarehouse.

72. The importer of any goods intended to bewarehoused without payment of duty on the first entrythereof, or his agent, shall deliver to the Collector a billof entry of such goods in the same manner and formand containing the same particulars as are hereinbeforerequired on the entry of goods to be delivered for homeuse, as far as the same shall be applicable, and thename and description of the warehouse in which suchgoods are intended to be warehoused, and the name ofthe person in whose name they are to be sowarehoused, and such bill of entry when signed by theCollector or other authorized officer shall be transmittedto the proper officer of customs and be the warrant forthe examination and due warehousing of such goods,and all goods not duly entered shall be liable toforfeiture ; but the Collector may, if he see fit in any caseso to do, require bond to be given by the importer orconsignee in treble the amount of duties due thereon forthe safe deposit and due clearance of such goods.

Power of lessee ofcustoms premisesin certain cases tocause warehousingentry to be passedfor goods.

73. If at any time a portion of the customs premises hasbeen or shall be leased for the purpose of landing,shipping, and warehousing goods to any companyconstituted for these purposes, it shall be lawful for suchcompany, if the owners of any goods landed within suchpremises shall fail to make entry thereof and remove thesame within ten clear days, to cause a warehousingentry to be passed for such goods under the generaldescription of merchandise without the particularsrequired by section 72 and to remove the same to theirwarehouse, and the reasonable expenses of such entry,removal, and warehousing shall be reimbursed to suchcompany by the owner or consignee of the goods soentered as aforesaid, and shall be recoverable by thesaid company: Provided that no goods entered by suchcompany as aforesaid shall be liable to seizure byreason of any inaccuracy in the passing of any suchentry, if it shall appear to the Principal Collector ofCustoms that such inaccuracy was not intentional oroccasioned by willful or culpable negligence ; Provided,

[42,83 of1988]

further, that in the case of any goods removed underthis section no warehouse warrant shall issue, and that,if after the expiry of three months, such goods shall nothave been cleared, they shall be sold in accordancewith the provisions of section 109 of this Ordinance.

Goods warehousedto be marked andnumbered & c.Storage of goodswarehoused.Penalty. Lockingand openingwarehouses.Carrying goods toand fromwarehouses.

74. All goods so entered to be warehoused shall beforedeposit in any warehouse be properly marked andnumbered by the importer in legible characters with theinitials of the owner, importer or consignee or otherdistinguishing marks, and the goods shall be stowed soas to afford easy access thereto, and to every packageor parcel in such parts or division of the warehouse, andin such manner as the Collector or the proper officershall direct, and if the stowage be broken the goodsshall be re­piled by the person breaking such stowage insuch manner as the Collector may require, and theneglect or refusal to stow or re­pile them ashereinbefore directed shall subject the occupier of thewarehouse, or the person so contravening, to a penaltynot exceeding ten thousand rupees. The warehouseshall be locked and secured in such manner, and shallbe opened on such days and during such hours as theCollector may from time to time prescribe, and visitedonly at such times and in the presence of such officers,and under such regulations as the Collector shall directand all such goods shall, after being landed uponimportation, be carried to the warehouse, or shall afterbeing taken out of the warehouse for exportation or forstores, be carried to be shipped, under such regulationsas the Collector shall direct.

Goods not dulywarehoused orfraudulentlyconcealed orremoved, forfeited.

75. If any goods entered to be warehoused shall not beduly warehoused in pursuance of such entry, or beingduly warehoused shall be fraudulently concealed in orremoved from the warehouse, or abstracted from anypackage, or transferred from one package to another, orotherwise, for the purpose of illegal removal orconcealment, they shall be forfeited, together with thegoods with which they shall have been so packed, andthe packages in which they shall have been concealed.

[ 2,35 of 1974][43,83 of1988]

[ 2,35 of 1974][44,83 of1988]

[ 2,35 of 1974][44,83 of1988]

Warehouse keeperneglecting toproduce goodsdeposited, whenrequired, to forfeitone hundredrupees.

76. If the warehouse keeper of any warehouse shall notproduce to any authorized officer of customs on hisrequest any goods deposited in such warehouse whichshall not have been duly cleared and deliveredtherefrom, such warehouse keeper shall for every suchneglect forfeit the sum of five thousand rupees inrespect of every package or parcel not so produced.

Importer orproprietorclandestinely gainingaccess towarehoused goodsto forfeit onehundred thousandrupees.

77. If the warehouse keeper of any warehouse, or theimporter or proprietor of any goods warehoused therein,or any person in his employ, shall clandestinely open thewarehouse or gain access to the goods except in thepresence of the proper officer of customs acting in theexecution of his duty, such warehouse keeper, importer,or proprietor shall for every such offence forfeit a sumnot exceeding one hundred thousand rupees.

Duty on goodstaken out ofwarehouse with outentry to be paid bywarehouse keeper.Persons taking outof or destroyinggoods in warehouseto be deemed guiltyof an offence.Importer orconsigneedefrauded byofficers to beindemnified.

78. If any goods shall be taken out of any warehousewithout due entry of the same with the proper officer ofcustoms, the warehouse keeper of such warehouseshall forthwith pay the duties due upon such goods, andevery person so taking out any goods without paymentof duty, or who shall aid, assist, or be concerned therein,and every person who shall willfully destroy or commitcriminal breach of trust of any goods duly warehoused,shall be guilty of an offence and shall be liable to a finenot exceeding one hundred thousand rupees or toimprisonment of either description for a term notexceeding two years, or to both such fine andimprisonment; but if such person shall be an officer ofcustoms not acting in the due execution of his duty, andshall be prosecuted to conviction by the importer,consignee, or proprietor of such goods, no duty shall bepayable for or in respect of such goods, and thedamage occasioned by such waste, spoil or criminalbreach of trust shall, with the sanction of the Minister, berepaid or made good to such importer, consignee, orproprietor by the Collector of Customs.

Collector may remitduties on

[ 16,35 of1974]

warehoused, goodslost or destroyed. 79. If any goods entered to be warehoused,

warehoused, or entered to be delivered from thewarehouse, shall be lost, damaged, or destroyed byunavoidable accident, either in receiving into thewarehouse or in the warehouse, the Collector may remitthe duties due thereon.

Landing account tobe taken of goodsfor the warehouse.Contents to bemarked onpackages and inlanding book.

80. Upon the entry and landing of any goods to bewarehoused, the proper officer of customs shall take aparticular account of such goods at the quay, wharf, orwarehouse at which they shall be so landed, and shallenter in a book prepared for that purpose the name ofthe importing ship, and of the person in whose namethey are entered, the marks, numbers, and contents ofevery such package, the description of the goods, andthe warehouse in which the same shall be deposited,and when the same shall have been so deposited withthe authority of such officer, he shall certify that the entryand warehousing of such goods is complete, and suchgoods shall from that time be considered goodswarehoused ; and if any such goods shall be delivered,withheld, or removed from the proper place ofexamination before the same shall have been dulyexamined and certified by such officer, such goods shallbe deemed to be goods not duly entered orwarehoused, and shall be liable to be forfeited.

Goods to be enteredand duties paidaccording to landingaccount.

81. The account of goods so taken as aforesaid shall bethe account upon which the duties payable upon suchgoods shall be ascertained, when the same shallultimately come to be delivered upon due entry for thatpurpose, and the same shall be entered and the fullduties due thereon be paid, according to the quantitytaken in such account, without any abatement for anydeficiency except as hereinafter provided.

Goods to be clearedwithin two years. 82. All warehoused goods shall be cleared either for

home use or exportation within two years from the dateon which the same were warehoused, or within suchfurther period as the Collector shall allow, in which casethe goods shall be examined by the proper officers, and

the duties due upon any deficiency or differencebetween the quantity ascertained on landing, and thequantity found to exist on such examination, togetherwith the warehouse rent and necessary expensesattendant thereon shall, subject to such allowances asare by law permitted in respect thereof, be paid down,and the quantity so found shall be re­warehoused in thename of the then owner or proprietor thereof, in thesame manner as on first importation: Provided that theCollector may require any goods to be cleared at anytime within the period of two years, if he considers thatthe goods are likely to deteriorate, or for any otherreason.

Goods not clearedor re­warehoused orduties paid ondeficiencies aftertwo years to besold. Proceeds ofsale how to beapplied. Goods notworth the duty samemay be exported ordestroyed.

83. If any warehoused goods shall not be duly cleared,exported, or re­warehoused, and the duties ascertainedto be due on the deficiencies as aforesaid shall not bepaid at the expiration of two years from the previousentry and warehousing thereof, or within such furtherperiod as shall be permitted by the Collector, the same,if worth the duty due thereon, shall after one month'snotice to the warehouse keeper, importer or consignee,be sold either for home use or exportation with orwithout the consent of the warehouse keeper, importer,or consignee ; and the proceeds thereof shall be appliedto the payment of the duties, warehouse rent, andcharges, and the surplus, if any, shall be paid to theowner or proprietor of such goods, if known; but if suchowner or proprietor cannot be found, such surplus shallbe carried to the account of Government to abide theclaim of such owner or proprietor on his appearing andmaking good his claim thereto within one year from thedate of sale; and if such goods shall not be worth theduty, then the after such one month's notice asaforesaid may be exported or may be destroyed, with orwithout the concurrence of the owner thereof, or thewarehouse keeper of the warehouse in which the samewere so warehoused, as the Collector shall see fit; andthe duties due upon any deficiency thereof, not allowedby law, shall, if required by the Collector, be forthwithpaid by the warehouse keeper.

[46,83 of1988]

Goods inwarehouse may berepacked. Damagedparts may bedestroyed.

84. With the sanction of the Collector, and after suchnotice given by the respective importers or proprietorsand at such times and under such regulations andrestrictions as the Collector shall from time to timerequire and direct, it shall be lawful in the warehouse tosort, separate, pack, and repack any goods, and tomake such alterations therein as may be necessary forthe preservation, sale, shipment, or disposal thereof;provided that such goods be repacked in the packagesin which they were imported, or in such other packagesas the Collector shall permit; and also to draw off anywine or any spirits into reputed quart or pint bottles forexportation only; and also to fill up any cask of wine,beer, or spirits from any other casks of the same,respectively secured in the same warehouse, and alsoto take such moderate samples of goods as may beallowed by the Collector with or without entry, and withor without payment of duty, except as the same mayeventually become payable as on a deficiency of theoriginal quantity; and the duty on the surplus, if any, ofsuch goods as may be delivered for home use shall beimmediately paid, and such surplus shall thereupon bedelivered for home use accordingly; and after suchgoods have been so separated and repacked in properor approved packages, the Collector may, at the requestof the importer or proprietor of such goods, cause orpermit any refuse, damage, or surplus goodsoccasioned by such separation or repacking, or at thelike request, any goods which may not be worth theduty, to be destroyed, and may remit the duty payablethereon.

Processing includingmanufacture orassembly of goodsin warehouses.

84A.(1) It shall be lawful for the Principal Collectorin the interest of economic development of thecountry to permit the processing includingmanufacture or assembly of goods in anywarehouse appointed under section 69 of thisOrdinance.

(2) No goods which have undergone anyprocessing including manufacture or assemblyin such warehouse may be released for homeuse or for export without the prior approval ofthe Collector.

(3) Where such goods are released from suchwarehouse for home use the duties there onshall be calculated and paid on that as if suchgoods had been imported at the time of suchrelease.

Treatment ofwaste, refuse ofgoodsconsumed inmanufacture.

(4) Where goods liable to duties have beenwasted or have become refuse or have beenconsumed in the course of processingpermitted under subsection (1), the PrincipalCollector may remit duties in respect of suchpart of the goods as represent ' such waste,refuse or goods consumed as the case may be:

Provided that if such waste or refuse isdestroyed subject to such conditions as thePrincipal Collector may impose, no duty shallbe charged or duty is paid on such waste orrefuse, as if it had been imported in that form iftaken for home use. Provided that if suchwaste or refuse is destroyed subject to suchconditions as the Principal Collector mayimpose, no duty shall be charged or duty ispaid on such waste or refuse, as if it had beenimported in that form if taken for home use.

Conditions, feesand charges. (5) The Minister may make regulations with

regard to the conditions under which a permitto a manufacturer or a sub­contractor referredto in section 84B is to be granted and the feesand charges leviable for such permit.

[46,83 of1988]

Manufacturerpermitted tosubcontract undercertain conditions.

84B.(1) Any manufacturer permitted to processincluding manufacture or assembly of goods inany warehouse appointed under section 69 ofthis Ordinance may sub­contract with anotherperson to process including manufacture orassembly in any work shop or premises whichis not appointed a warehouse under thisOrdinance if the Principal Collector is satisfied

(i) that the said workshop or premisesis registered with him for the purpose ofsuch work;

(ii) that the workshop or premises hasthe capacity to undertake the requiredsub­contracting work;

(iii) that there is a written agreementbetween the manufacturer and theperson with whom the sub­contractinghas been made, and that theagreement has been approved by him.

(2) Where any manufacturer is permitted toprocess by means of sub­contracting asprovided for in subsection (1), the provisions ofsection 84A shall, mutatis mutandis, apply toany goods so processed.

(3) Notwithstanding that the manufacturer sub­contracts as aforesaid, the manufacturer shallbe liable, in addition to any other liabilitiesunder this Ordinance including forfeitures andpenalties, for any duties or other charges whichmay occur due to loss or damage of thematerial or finished products outside thewarehouse of the manufacturer during suchsub­contracting operations.".

[47,83 of1988]

[ 17,35 of1974]

Entry for exportationre­warehousing orhome use

85. No warehouse goods shall be taken or deliveredfrom the warehouse, except upon due entry, forexportation, or to be shipped as stores, or to beremoved from one warehouse to another, or on paymentof the full duties thereon for home use subject to suchconditions as the Collector may prescribe.

Bill of entry forwarehoused goodsdelivered for homeuse. Duties to bepaid according tolanding account,except in certaincases when dutiesare to be chargedon ascertainedquantity on delivery,unless deficiencyhas been caused byimproper means.

86. Upon the entry of any goods to be cleared from thewarehouse for home use, the person entering suchgoods shall deliver a bill of entry, and duplicates thereofin like manner and form and containing the sameparticulars as hereinbefore required on the entry ofgoods to be delivered for home use on the landingthereof, as far as the same may be applicable, and shallat the same time pay down to the proper officer ofcustoms the full duties payable thereon, not being lessin amount than according to the account of the quantitytaken by the landing waiter or other proper officer on thefirst entry and landing thereof, except as to the followinggoods, namely :­rice, wine, beer, spirits, and sugar, theduties whereon when cleared from the warehouse forhome use shall be charged upon the quantity of suchgoods ascertained by weight, measure, or gauge at thetime of actual delivery thereof, unless there isreasonable ground to suppose that any portion of thedeficiency or difference between the weight, measure,or gauge ascertained on landing and first examination ofany such last­mentioned goods and that ascertained atthe time of actual delivery has been caused by illegal orimproper means, in which case the proper officer ofcustoms shall make such allowance only for loss as hemay consider fairly to have arisen from naturalevaporation or other legitimate cause.

Value of goods forallowance ondeficiencies to beestimated byofficers of customs.

87. When any deficiency occurs in goods chargeable topay duty according to the value thereof, the valuethereof shall be the value of the like sort of goods,estimated by the officers of customs.

[48,83 of1988]

Deficiencies ongoods exported notto be charged withduly unlessfraudulent.

88. No duty shall be charged in respect of any deficiencyin goods entered and cleared from the warehouse forexportation, unless the officers of customs havereasonable ground to suppose that such deficiency, orany part thereof, has arisen from illegal abstraction.

On entry outward,bond for dueshipment andlanding to be givenwhen required.

89. Before any warehoused goods subject to duties ofcustoms shall be permitted to be exported, the exporteror his agent shall where required by the Collector havingregard to the demand for, and the value of, goods to beexported, give security by bond in such sum as may bedetermined by him subject to such conditions as may beprescribed by such Collector having regard to the natureand the value of the goods to be shipped and exportedthat such goods shall be duly shipped and exported,and shall be landed at the place for which they areentered outwards or otherwise accounted for, to thesatisfaction of the Collector, and shall, if required,produce a certificate under the hands of the properofficers at the port of landing, of the due landing of thegoods at such port as aforesaid.

General bond forwarehoused goodsexported.

90. The Collector may, in such instances as he shalldeem advisable, accept, in lieu of separate bonds asaforesaid, from the known resident exporters andshippers of goods, general bonds with one or twosufficient securities or such other security as theCollector may approve of, to such an amount as shall benecessary for the due shipment, exportation, andlanding at the place for which they are entered outwardsof all warehoused goods exported by such persons, butsuch general bonds shall only be in force for two yearsand may be revoked and cancelled whenever theCollector shall see fit.

Minister may closebonded warehouse. 91. It shall be lawful for the Minister, after notice

published in the Gazette, to direct that after theexpiration of twelve months from the date of such noticeno goods or merchandise shall be warehoused in anypublic warehouse or premises, and to convert all or anyof such warehouses or premises in use as bonding

warehouses at the time of such notice to other purposesof customs accommodation, and any goods not clearedfrom such public warehouse by removal to otherapproved bonding warehouse, or by entry for homeconsumption or exportation, at the expiration of suchnotice aforesaid, shall be sold by the Collector in likemanner as is provided for the sale of unclaimed goods.

Collector may issuewarrants. 92. The Collector of Customs may, upon an application

in writing by the owner, importer, or consignee of anygoods duly warehoused in any warehouse of theRepublic, or other place of deposit provided byGovernment, issue to such owner, importer, orconsignee, warrants, under his hand substantially in theform in Schedule D*.(*Schedule omitted­See List ofEnactments omitted from the Revised Edition.)

Goods transferableby endorsement anddeliverable to theholders of warrants.

93. Such warrants shall be transferable once or oftenerby the endorsement of the owner, importer, orconsignee of the goods or of the holders of the saidwarrants, and the right and title to the goodsenumerated in such warrants shall vest in thepossessors thereof without any endorsement save thatof the original grantee. The Collector shall, uponproduction and surrender of such warrants, but nototherwise, deliver the goods to the holders of thewarrants, on due entry of the goods for homeconsumption or exportation, and upon payment of allduties and charges due on the said goods.

Warrants by privatewarehouse keepers.94. It shall be lawful for the keeper of any bonded

warehouse to issue to the owner, importer, or consigneeof any goods duly warehoused in his bondedwarehouse, warrants substantially in the form inSchedule D*. Such warrants shall be transferable, onceor oftener, by the endorsement of the owner, importer, orconsignee of the goods, or of the holders of the saidwarrants; and the right and title to the goodsenumerated in such warrants shall vest in thepossessors thereof without any endorsement save thatof the original grantee. The keeper of such warehouse

[ 2,35 of 1974][49,83 of1988]

shall, upon production and surrender of such warrantsbut not otherwise, deliver the goods to the holders of thewarrants on due entry of the goods for homeconsumption or exportation, and upon payment of allduties and charges due on the said goods: Providedthat it shall not be lawful for the keeper of any bondedwarehouse to issue warrants for goods in which he hasany share or interest as owner, importer, or consignee.

No goodswarehoused inGovernment orbonded warehousesto be delivered saveon surrender of thewarrant, and nowarrant oncesurrendered to bereissued.

95. No goods warehoused in any warehouse of theRepublic or other place of deposit provided byGovernment, or in any bonded warehouse, shall bedelivered out of such warehouse of the Republic orother place of deposit provided by Government, orbonded warehouse, except upon surrender of thewarrant in which such goods are enumerated, to theCollector of Customs or to the keeper of such bondedwarehouse, as the case may be; every such warrantafter being so surrendered, shall be defaced, and nosuch warrant after being so surrendered, shall bereissued :

But where partialdelivery taken, anew warrant may beissued in respect ofthe goods remainingundelivered.

Provided that whenever the holder or holders of anywarrant issued under section 92 or section 94 or underthis section, shall be desirous of obtaining delivery of apart only of the goods enumerated in such warrant, itshall be lawful for the Collector of Customs or keeper ofthe bonded warehouse, as the case may be, upon thesurrender of such warrant, to issue to the holder orholders by whom the same was surrendered a newwarrant in respect of the goods remaining undelivered.

Penalty oninfringement ofsection 95.

96. Any person who shall deliver any goods warehousedas mentioned in section 95, out of the place in which thesame shall have been so warehoused, except upon thesurrender, as therein mentioned, of the warrant in whichsuch goods are enumerated, and any person who shallreissue any warrant surrendered as aforesaid, shall bedeemed guilty of an offence, and liable on conviction toa .fine not exceeding one hundred thousand rupees.

[ 2,35 of 1974][50,83 of1988]

Stamp duty onwarehouse warrantsfixed at fifty cents.

97. Every warrant, whether issued by a Collector ofCustoms or by the keeper of a bonded warehouse, shallbear a stamp duty of fifty cents, and such duty shall bedenoted by adhesive stamps. Such warrants shall beliable, in all matters relating to stamp duty, to theprovisions of the enactments relating to stamp duties, sofar as the same shall be applicable thereto.

State when liable tomake compensationfor loss in anywarehouse of theRepublic.

98. Provided that the holder of any warrant issued by theCollector of Customs shall have no claim on the State tocompensation for loss of any goods by fire, theft,damage, or other cause, except such loss be caused bythe willful waste, spoil, destruction or criminal breach oftrust, on the part of any officer of customs, and suchofficer shall have been prosecuted to conviction withinone year from the date of such willful waste, spoil,destruction or criminal breach of trust. The holder of aState not liable warrant issued by a bonded warehousefor loss in any keeper shall have no claim on the Stateto warehouse compensation on any ground or pretextwhatsoever.

Goods otherwiseliable to Customslaws andregulations,

99. Provided, further, that the Collector of Customs shallbe in no way answerable for the correctness of theparticulars of the contents or value of the goodsspecified in any warrant issued as aforesaid, and thatthe said goods shall be in every respect liable to theprovisions of the laws and regulations relating to thecustoms in force at the time such goods shall be indeposit at the warehouse of the Republic or other placeof deposit provided by Government.

Penalties. 100. Any keeper of a bonded warehouse who shallfraudulently issue a warrant for goods not in hiswarehouse, or who shall fraudulently issue two or morewarrants for the same goods, or who shall fraudulentlyissue warrants for goods in which he has any share orinterest as owner, importer, or consignee, or who shallaid and assist any other person to do so, and anykeeper of such warehouse or other person who shall in

[51,83 of1988]

[52,83 of1988] [6,2 of

2003][206,36 of

any way use any warrant granted under the provisionsof this Ordinance for the purposes of defrauding orinjuring any person, company, or corporation, shall beguilty of an offence, and be liable to imprisonment withor without hard labour not exceeding three years, and inaddition thereto, at the discretion of the Judge, to a finenot exceeding one hundred thousand rupees

Warehousing of dutypaid goods andgoods of local origin.

100A.(1) Notwithstanding the provisions of Part II ofthis Ordinance, it shall be lawful for theCollector to permit in any warehousesappointed under section 69 and in whichprocessing has been permitted under section84A of this Ordinance warehousing of goodsimported and upon which duty had beenpreviously paid or goods of local origin, for use,along with goods ware housed withoutpayment of duty on first entry, for the purposeof processing including manufacture, assemblyor packing of goods under such regulations asmay be prescribed by the Principal Collector.

(2) Any goods found in any such ware housewhich are not duly accounted for by the ownerof such goods to the satisfaction of theCollector shall be forfeited.

(3) The provisions of sections 69 to 100 of thisOrdinance shall, mutatis mutandis, apply to allgoods referred to in subsection (1).

PART XIIGENERAL REGULATIONS

Regulations. 101.(1) The Minister may make regulations inrespect of any matter required by thisOrdinance to be prescribed or in respect of

2003]

[206,36of 2003]

which regulations are required to be madeunder this Ordinance and in particular for anyof the following purposes:

(a) for preventing accidents by fire, andas to the lighting or using of candles,fires, and lamps, and as to the smokingof tobacco or herbs within the customspremises;

(b) for governing and regulating porters,labourers, carmen, and others carryinggoods, or using or driving any animal orvehicle within the customs premises;

(c) for preventing damage being doneto any goods or property within thecustoms premises;

(d) for prohibiting or regulating theadmission of persons to the customspremises, and for excluding personstherefrom ;

(e) for regulating the conduct ofpersons within the customs premises ;

(ee) for prohibiting of importation andexportation of counterfeit trade markgoods or pirated copyright goods or anyother goods in contravention of theprovisions of the Intellectual PropertyAct, No. 36 of 2003.

(f) for prescribing documents thatshould be furnished for the computationof customs duties for any goods and forregulating the examination of suchgoods for the levy of customs duties ;

[6,2 of2003]

[6,2 of2003]

(g) for prescribing new forms for thewarrants issued under sections 92 to100, both inclusive, and the manner inwhich such warrants are to be defaced;and

(h) for assessment of value for thecustoms purposes under section 51.

and such regulations shall be published in theGazette. Any person who shall disobey thesame shall be guilty of an offence and shall onconviction after summary trial by a Magistratebe liable to a fine, not exceeding twenty fivethousand rupees or to imprisonment of eitherdescription for a term not exceeding threemonths or to both such fine and imprisonment.The Collector may, having regard to thecircumstances in which the offence wascommitted, compound an offence under thissection on payment of an amount equal to onefifth of the fine imposable for such offence. Thecompounding of an offence under this sectionshall have the effect of an acquittal.

(2) In this section and in any regulation madethereunder, " customs premises " means thecustoms premises as defined from time to timeby the Principal Collector by Notification in theGazette.

Goods of dangerousquality. 102. If the owner, consignee, or person having charge of

any tar, pitch, spirituous liquor, turpentine, oil, aquafortis, lucifer matches, or any other article­ of acombustible or dangerous nature whatsoever, shallsuffer the same to remain in the customs premisesbeyond the space of five hours after he shall have been

required by any officer of customs to remove the sametherefrom, then and in every such case every person sooffending shall for every such offence be liable to a finenot exceeding fifty rupees and not less than ten rupeesfor every hour that any of the said articles or goods shallbe or remain in the place aforesaid after the expirationof the said five hours.(* Application modified by section86 (2) of the Sri Lanka Ports Authority Act. " PortCommissioner " shall be deemed to be a reference tothe Ports Authority in the application of this provision toany " specified port "­See section 86 (3) of the Sri LankaPorts Authority Act. )

Special regulationsfor ships. 103.

(1) Whereas it is desirable to facilitate thedespatch of ships, it shall be lawful for theMinister to make special regulations from timeto time relating to the entry inwards andoutwards of such ships, and the landing,shipping, and transhipping of goods by them,and such regulations when duly published,shall have the same effect in law as if theyformed part of this Ordinance.

(2) The regulations made under the foregoingsubsection may, amongst other matters­

(a) prescribe the fees and chargespayable by persons requiring theservices of any officer of customsoutside such hours as the PrincipalCollector with the sanction of theMinister may from time to timeprescribe, or on any day when thecustom­house is closed for business ;

(b) provide for the collection orsummary recovery of such fees andcharges and the disposal thereof uponcollection or recovery; and

[52,83 of1988]

[52,83 of1988]

(c) require the furnishing of security inmoney for the payment of any duties,dues, fees or charges payable inrespect of goods imported or exportedbefore the presentation of the bills ofentry for such goods.

Container freightstations or Inlandclearing depots forcustoms clearanceof cargo.

103A.(1) The Collector may, with the approval of theMinister, by order made from time to time, forsuch periods and subject to such terms andconditions as may be prescribed, establishContainer freight stations, and Inland clearancedepots for the purposes of this Ordinance.

(2) The Collector may prescribe having regardto the nature and value of the goods to bestored therein the amount of security to befurnished by the owner of a Container freightstation or Inland clearance depot establishedunder this section.

(3) The Collector may, with similar approvaland subject to the terms and conditionsreferred to in subsection (1), at any time forreasonable cause revoke any order madeunder subsection (1) or vary the terms andconditions of any such order.

Regulation of themovement ofcontainers,containerized cargo,cargo intended forcontainerization andsecurity to befurnished.

103B.(1) The Minister may make regulations relatingto (a) documentation, storage, movement,examination, sealing, security and all othermatters pertaining to containers, containerizedcargo and cargo intended for containerization ;(b) the amount of security to be furnished by

[54,83 of1988]

persons engaged in the transport of containers,containerized cargo, and cargo intended forcontainerization.

Penalties forviolation ofconditions.

(2) If any person contravenes or fails to complywith any regulations made under subsection(1) or any requirement imposed by or undersuch regulations, that person and the personfor the time being in charge of the goods shallin each case forfeit either treble the value ofthe goods or be liable to a penalty notexceeding twenty­five thousand rupees at theelection of the Collector.

All otherprovisions of theCustoms toapply.

(3) All other provisions of this Ordinance andthe rules and regulations made there under inregard to the landing and clearance inwards orshipment and clearance outwards of cargo,shall, mutatis mutandis, apply to containers,containerized cargo and cargo in tended forcontainerization.

Transport of goodsoverland underband.

104.(1) No goods imported or to be exported fromany container freight station, bondedwarehouse or customs premises after thegoods have been sealed by customs, whichare liable to duties and other charges underthis Ordinance and on which such duties andother charges have not been paid to thecustoms, shall be transported over land fromone point to another, other than by atransporter registered with the PrincipalCollector and who has furnished security bybond for the payment of such duties and othercharges.

(2) Any person who transports goods incontravention of the provisions of this section

shall be guilty of an offence and be liable to apenalty not exceeding one hundred thousandrupees.".

Goods lodged inwarehouse of theRepublic liable toclaims for freight, &c.

105.(1) All goods or merchandise which shall belodged in any warehouse of the Republic underthe provisions of this Ordinance, not beinggoods seized as forfeited, shall, when landed,continue and be subject and liable to such andthe same claim for freight and general averagein favour of the master, owner, or agent of therespective ship, or of any other personinterested in the freight or general averagefrom which such goods or merchandise shallhave been so landed, as such goods ormerchandise respectively were subject andliable to before the landing thereof.

Collectorrequired todetain goodsfreight c

(2) The Collector is hereby authorized andrequired, upon due notice in writing given tohim by such master, owner, agent, or otherperson as aforesaid, specifying the particularsof the goods and requiring the goods or anyportion thereof to remain subject to a lien forfreight, primage, general average, or othercharges, to detain and keep in the warehouseof the Republic the whole or such portion ofsuch goods, not being seized as forfeited, untilhe receives notice in writing that the saidcharges are paid.

Collector notbound to see tovalidity of anylien.

(3) The Collector shall not be bound to see tothe validity of any lien claimed by any . master,owner, agent, or other person as aforesaid.

Power to sellgoods notcleared in thirtydays.

(4) If any goods or merchandise deposited asaforesaid be left in any customhouse orwarehouse of the Republic for a longer period

than thirty days from the date of landing, suchgoods shall, after public advertisement, be soldby public auction either for home use orexportation, and the proceeds thereof appliedfirst to the payment of the duties due thereon,the warehouse rent, and expenses of sale,then to the payment of the freight, primage,general average, and charges claimed asaforesaid, and the overplus, if any, shall bepaid to the proprietor of the goods; but if therebe no such proprietor, such overplus shall bepaid into the Treasury, and if not claimed withinone year from the date of the sale of suchgoods, such overplus shall be brought toaccount as revenue:

Perishablegoods may besold at once.

Provided that goods of a perishable nature orin a damaged condition may, after publicadvertisement, be sold forthwith, and if notsaleable may be destroyed, and neither theproprietor nor the claimant of the freight,primage, general average, and charges asaforesaid, due on any goods sold or destroyedas aforesaid, shall have any claim on theCollector for or on account thereof.

(5) The Collector shall not be required toLivestock. detain for freight, primage, generalaverage, or charges as aforesaid horses,cattle, or other livestock, unless properprovision be made by the person detaining thesame for the feeding, care, and housing ofsuch livestock.

Bonds to be takenby Collector. 106. All bonds relating to the customs, required to be

given in respect of goods or ships shall be taken by theCollector for the use of the State, and after theexpiration of three years from the date thereof, or fromthe time, if any, limited therein for the performance of the

[55,83 of1988]

[56,83 of1988]

condition thereof, every such bond upon which noprosecution or suit shall have been commenced shall bevoid, and may be cancelled and destroyed.

Goods being movedout of any ship or toany ship or out ofany warehouse ifnot duly entered tobe forfeited.

107. If any goods, packages, or parcels shall be landed,taken or passed out of any ship, or out of anywarehouse, or be laden, taken on board or passed on toany ship, not having been duly entered, the same shallbe forfeited : Provided always that no entry shall berequired in respect of the baggage of passengers asdenned by the regulations made under section 107A.

Regulation ofpassengersbaggage inwardsand outwards.

107A.(1) Any passenger arriving in Sri Lanka may besearched and his baggage landed, examinedand delivered by such officers and inaccordance with such regulations as theMinister may prescribe by Notificationpublished in the Gazette; and if any prohibited,restricted or uncustomed goods are foundconcealed in the baggage of any passengerarriving in Sri Lanka or upon his person or inany place in which they have been put by hisdirection or with his connivance either before orafter landing, the same shall be forfeited,together with the contents of the packages andthe packages containing the same.

(2) Any passenger leaving Sri Lanka may besearched and his baggage examined by suchofficers and in accordance with suchregulations as the Minister may prescribe byNotification published in the Gazette, and if anyprohibited, restricted or uncustomed goods arefound concealed in the baggage of anypassenger leaving Sri Lanka or upon hisperson or in any place in which they have beenput by his direction or with his connivanceeither before or after embarkation, the sameshall be forfeited, together with the contents of

[5,24 of 1991]

the packages and the packages containing thesame.

(3) No female passenger shall be searched byany person other than a female duly authorizedin that behalf by the Collector.

(4) Every regulation made by the Ministerunder this section shall as soon as convenientafter its publication in the Gazette be broughtbefore Parliament for, approval. Any regulationwhich is not so approved shall be deemed tobe rescinded as from the date of disapproval,but without prejudice to any thing previouslydone thereunder.

(5) Notification of the date on which anyregulation made by the Minister is so deemedto be rescinded shall be published in theGazette.

Goods in anywarehouse to be atrisk of the owner.

108. All goods lodged or deposited in any warehouse ofthe Republic or other place of deposit provided byGovernment shall be so deposited at the risk of theowner, importer, or consignee, who shall have no claimon the State to compensation for loss by fire, theft,damage, or other cause, except such loss be proved bythe prosecution to conviction (within one year from thedate at which such willful waste, spoil, destruction, orcriminal breach of trust is alleged to have taken place)of the offending party to have been caused by the willfulwaste, spoil, destruction, or criminal breach of trust ofany officer of customs, and in which case no duty shallbe leviable on such goods.

Power to sell goodsnot cleared withinthirty days.

109. All goods left in any warehouse of the Republic oron the customs premises for a longer period than thirtydays, unless permitted to remain by the special

[57,83 of1988]

permission of the Collector, shall, after publicadvertisement, be sold either by auction or tender toanswer the duties, warehouse rent, or other chargesdue thereon, and any overplus shall be paid, if claimedwithin twelve months from the date of sale, to the ownerof such goods, who shall have no further claim touchingthe same, but if there be no claimant such overplus shallbe brought to account as revenue;

Provided that any goods of a perishable nature whichshall be left in the warehouse or customs premises, or inany bonded warehouse, uncleared, may be soldforthwith, or if not saleable may be destroyed, and theproprietor of any goods sold or destroyed as aforesaidshall have no further claim for or on account thereof.

Collector to orderremoval of goodsfrom one warehouseor customspremises to anotherwarehouse or place.

110.(1) If the Collector considers it expedient to doso for any of the purposes of this Ordinance hemay by written order require any importer ofgoods to have them removed from thewarehouse or other place in the customspremises where they have been deposited tosuch other warehouse or place within thecustoms premises as may be specified in theorder, within the period specified therein, andto be present on the date and time, if any,specified in the order for the due examinationof the goods.

(2) Any person who, without reasonable cause,fails to commonly with an order issued to himunder subsection (1) shall be liable to a penaltynot exceeding ten thousand rupees.

Government mayappoint ports andquays and alter orannul the same.Existing ports tocontinue.

111. The Minister may by Order appoint any place to bea haven, creek, port, or warehousing port in Sri Lankaand declare the limits thereof, and appoint proper placeswithin the same to be legal quays for the lading and

[58,83 of1988]

unlading of goods, and declare the bounds and extent ofany such quays, or annul the limits of any port, haven,creek, or legal quay already appointed, or to behereafter appointed, and declare the same to be nolonger a port, warehousing port, haven, creek, or legalquay; and all ports, warehousing ports, havens, andcreeks, and the respective limits thereof, and all legalquays appointed, set out, and existing as such at thetime of the passing of this Ordinance shall continue tobe such ports, havens, creeks, and quays until annulledor altered as aforesaid.

Collector to appointwharves 112. The Collector may from time to time, by any order

under his hand, and under such restrictions andregulations as he shall see fit, appoint proper places forthe lading and unlading of goods.

Officers may refuseany person to doany act as master ofship, unless hisname is endorsedon registry.

113. The officers of customs may refuse to allow anyperson to do any act as master of any British ship,unless his name is inserted in or endorsed upon thecertificate of registry of such ship as being the masterthereof.

When ship's agentmay act for master. 114. Anything which a master is required or empowered

to do under this Ordinance may, with the express orimplied consent of such master and with the approval ofthe Collector of Customs, be done by a ship's agent.

Collector to grantlicences to customshouse agents.

115.(1) The Collector may and he is herebyauthorized to grant on payment of theprescribed fee, licences in such form andmanner and subject to such terms andconditions as are specified in Schedule G tothis Ordinance to such person's who satisfy therequirements set out in that Schedule, to act asCustoms House agents for transactingbusiness which shall relate to the entry orclearance of any. ship, or of any goods, or ofany baggage, in any of the port's or places in

[59,83 of1988]

Sri Lanka and only persons so licensed shallact as agents as aforesaid, and the Collectormay cancel or revoke for fraud or misconductor for breach of any terms and conditions ofany licence so granted to any such person.

(2) Every licence granted under this sectionshall be valid for a period of one year and maybe renewed by the Collector, at the end of theperiod on payment of the prescribed fee.

Employeesdeemed to beAgents.

(3) Any employee of an importer or exportershall be deemed to be a Customs House agentfor the purposes of this section, and shall notbe permitted to transact business as aforesaid,unless he holds a licence under subsection(1).".

Importers andexporters to beregistered withcustoms.

115A.(1) It shall be lawful for the Collector for thepurpose of facilitating the discharge of hisfunctions under this Ordinance to require everyimporter and exporter of goods to register withthe customs, giving such particulars as may berequired by him.

(2) No goods shall be imported into or exportedout of Sri Lanka except by a registeredimporter or exporter.

(3) In this section, importer shall mean aperson who imports goods either for himself oron behalf of another for a commercial purposeand exporter shall mean a person who exportsgoods either in his name or on behalf ofanother for a commercial purpose.".

[ 2,35 of 1974]

[ 2,35 of 1974]

[18,35 of1974][60,83 of1988]

No vessel to behauled on shorewithout permission.Boat to be removedfrom wharf whendirected. Penalty.

116. No ship or boat shall be hauled on shore at anypublic wharf, quay, beach, or landing place in Sri Lanka,for the purpose of repairs or otherwise, withoutpermission from the Collector, and no boat shall remainalongside of any wharf or landing place after the owneror person in charge shall be directed to remove thesame by the proper officer of customs; and any personhauling any ship or boat on shore without suchpermission as aforesaid, and the owner or person incharge of any boat refusing or neglecting to remove thesame when ordered as aforesaid shall be liable to a finenot exceeding one hundred rupees, and such ship orboat may be detained by the Collector until payment ofthe fine imposed. (*Application modified by section 86(2) of the Sri Lanka Ports Authority Act)

No timber, &c, to beleft on wharf formore than one day.

117. If any timber or other heavy or bulky articles be lefton any public quay, jetty, wharf, beach, or landing placein Sri Lanka for more than one day, so as to interrupt orhinder the free use thereof, it shall be lawful for theCollector, after twelve hours* notice in writing given tothe owner thereof or to his agent, to remove the same ;and such owner shall be liable to a penalty notexceeding one hundred rupees and such goods shallnot be delivered up to the owner thereof until afterpayment of the said penalty, together with the chargesattending the removal of the same ; and if such goodsshall not be removed within six days after notice givenas aforesaid, it shall be lawful for the Collector to sell thesame by public auction, and to deduct from theproceeds the amount of such penalty and all chargeswhich may have been incurred on account of suchgoods, and the surplus, if any, shall be paid to theowner.

Officers may boardships hoveringwithin territorialwaters and bringthem into port.

118. It shall be lawful for the officers of customs to go onboard any ship in any port or place in Sri Lanka orhovering within the territorial waters of Sri Lanka and torummage and search all parts of such ship for prohibitedand uncustomed goods, and freely to stay on boardsuch ship so long as such ship remains in such port or

[61,83 of1988]

place or within such territorial waters; and if any suchship is bound elsewhere, and continues so hovering forthe space of twenty­four hours after the master hasbeen required to depart, it shall be lawful for the officersof customs to bring such ship into port and to searchand examine her cargo, and to examine the mastertouching the cargo and voyage; and if there are anygoods on board prohibited to be imported into Sri Lanka,and if the master does not truly answer the questionswhich are demanded of him on such examination, heshall forfeit a sum not exceeding one hundred thousandrupees.

Making falsedeclaration. Signingfalse documentsand untrulyansweringquestions.Counterfeiting andusing falsedocuments.

119. If any person shall make and subscribe anydeclaration, certificate, or other instrument required bythis Ordinance to be verified by signature only, the namebeing false in any particular ; or if any person shall makeor sign any declaration made for the consideration of theCollector or the proper officer of customs on anyapplication presented to him the same being untrue inany particular ; or if any person required by thisOrdinance or any other enactment relating to thecustoms to answer questions put to him by the officersof customs shall not truly answer such questions ; or ifany person shall counterfeit, falsify, or wilfully use whencounterfeited or falsified, any document required by thisOrdinance or any enactment relating to the customs, orby or under the directions of the Collector or anyinstrument used in the transaction of any business ormatter relating to the customs, or shall fraudulently alterany document or instrument, or counterfeit the stamp,seal, signature, initials, or other mark of, or used by theofficers of the customs for the verification of any suchdocument or instrument, or for the security of goods, orany other purpose, in the conduct of business relating tothe customs, every person so contravening shall beliable to forfeit a sum not exceeding one hundredthousand rupees, and any goods; including currency inany form, in relation to which the document or statementwas made shall be liable to forfeiture :

[2,35 of 1974][62,83 of1988]

Bond entered intowith the Collector forthe dueperformance ofanything relating tothe customs, to bevalid in law.

120. And whereas it frequently occurs that certainindulgences are granted to merchants and others by theCollector of Customs on bond being given for thesecurity of the revenue, and as doubts may arisewhether such bonds would in law be valid:

It is therefore enacted and declared that in all caseswhere bonds shall be entered into with the Collector ofCustoms for the due performance of any order, matter,or thing relative to the customs, such bonds shall bevalid in law, and upon breach of any of the conditionsthereof may be sued and proceeded upon in likemanner as any other bond entered into by virtue of thisOrdinance.

Export, &c, of naval,military, and airstores maybeprohibited.

121. The Minister may by Order published in the Gazetteprohibit either absolutely or subject to such restrictionsand conditions as he may in his discretion determine,the exportation or the carriage coastwise of all or any ofthe following goods, namely :­

arms, ammunition and gunpowder, naval, military, andair stores and any articles which the Minister shall judgecapable of being converted into or made useful inincreasing the quantity of naval, military or air stores,provisions, or any sort of victual which may be used asfood by man; and if such goods shall be exported fromSri Lanka or carried coastwise in contravention of suchprohibition or otherwise than in accordance with suchrestrictions and conditions, or be water­borne to be soexported or carried, such goods may be seized andshall be forfeited.

Unauthorizedpersons notpermitted to makeentries.

122. Every person who shall make or cause to be madean entry inwards or entry outwards of any goods, notbeing duly authorized thereto by the proprietor orconsignee or exporter of such goods, shall for everysuch offence forfeit a sum not exceeding one hundredthousand rupees.

[63,83 of1988]

Samples. 123. It shall be lawful for the Collector to authorize theofficers of customs to take samples of goods for thepurpose of ascertaining the duties payable on suchgoods or for any other purpose relative to the customs,and such samples shall be accounted for in suchmanner as the Collector may direct.

Drawing of sampleson goods clearedout of customscontrol.

123A. Where goods imported have been cleared out ofCustoms, and the Collector deems it necessary for anycustoms purpose to examine samples of the said goodsand authorizes the drawing of samples thereof, theimporter or the person for the time being in charge ofthe place or premises where the goods are kept orstored shall hand over to the Collector or other customsofficer authorized in writing by the Collector in thatbehalf a sample or samples proved to the satisfaction ofthe Collector as being authentic and representative ofthe said goods, provided the sample or samples aredemanded within thirty days from the date such goodshave been cleared from the customs. If the samples arenot handed over within three working days of thedemand therefor, the Collector or other customs officerauthorized in writing by the Collector in that behalf shallhave the power to enter, and draw samples from, thepremises where the goods may be stored.

Collector mayrefuse clearance. 124. The Collector may refuse to grant clearance to any

ship until the owner, agent, or master of that ship, orsome other person, shall have paid all port dues, fees,fines, penalties, or charges to which such ship or theowner or master of such ship in respect thereof shall beliable under this Ordinance or any other enactment:

Provided such port dues, fees, fines, penalties, orcharges shall have been incurred during her presentvoyage inwards or outwards.

PART XIIISMUGGLING, SEIZURES, AND PROSECUTIONS GENERALLY

[207,36 of2003]

Smuggling,seizures, andprosecutionsgenerally. Forfeitureof ship to includetackle, & c.

125. All goods and all ships and boats which by thisOrdinance are declared to be forfeited shall and may beseized by any officer of the customs; and such forfeitureof any ship or boat shall include the guns, tackle,apparel, and furniture of the same, and such forfeiture ofany goods shall include all other goods which shall bepacked with them, as well as the packages in whichthey are contained ; and all carriages or other means ofconveyance, together with all horses and all otheranimals, and all other things made use of in any way inthe concealment or removal of any goods liable toforfeiture under this Ordinance, shall be forfeited.

Inclusion ofprohibited goods inSchedule B ofCustomsOrdinance.

125A.(1) The importation of counterfeit trade markgoods or pirated copyright goods or any othergoods in contravention of the provisions of theIntellectual Property Act, No. 36 of 2003(hereinafter referred to as the "Act") shall beprohibited and such goods shall be includedamong the goods the importation of which, areprohibited under section 43 of the Ordinanceand included in Schedule B of the Ordinanceas prohibited goods.

(2) The exportation of the goods referred to insubsection (1) of this section shall beprohibited and such goods shall be includedamong the goods the exportation of which, areprohibited as if they were referred to in section44 of the Ordinance and included in ScheduleB of the Ordinance as prohibited goods.

(3) Notwithstanding anything to the contrary inany other law, prohibited goods referred to insubsections (1) and (2) of this section, shall bedisposed of outside the channels of commerceor if such disposal damages the interests of theowner of any right protected under the Act, bedestroyed.

[207,36 of2003]

(4) "Counterfeit trade mark goods" mean anygoods including packaging, bearing withoutauthorization a trade mark which is identical toa trade mark validly registered in respect ofsuch goods or which cannot be distinguished inits essential aspects from such a trade mark,and which thereby infringes the rights of theowner of the trade mark recognised by the Act.

(5) "Pirated copyright goods"' mean any goodswhich are made without the consent of thecopyright holder or person duly authorised bythe copyright holder in the country ofproduction and which are made directly orindirectly from an article where the making ofthat copy would have constituted aninfringement of a copyright or a related right bythe Act. Suspension of certain goods byCustoms Authorities.

125B.(1) A right holder, who has valid grounds tobelieve that the importation of counterfeit trademark or pirated copyright goods or of any othergoods in contravention of the right holder'srights under the Act is taking place, may makean application in writing to the Director­General, of customs requiring him to suspendof the release of such goods into freecirculation.

(2) A right holder who makes an applicationunder subsection (1) shall provide adequateevidence to satisfy the Director­General ofCustoms that there is a, prima facie, case ofinfringement of the right holder's rights underthe Act and supply a sufficiently detaileddescription of the goods to make them readilyrecognisable by any officer of the Customs.

3(a) The Director­General of customsshall have the power to require anapplicant to provide a security orequivalent assurance sufficient toprotect the defendant and to preventany abuse ;

(b) Where pursuant to an applicationmade under subsection (1), theDirector­General of customs suspendsthe release of any goods into freecirculation, he shall forthwith cause theimporter and the applicant to bepromptly notified the suspension.

(4) If the Director­General of customs fails toreceive any notice regarding the institution ofproceedings in respect of the of release of anygoods suspended under subsection (3), withina period not exceeding ten working days afterthe applicant has been informed of thesuspension as provided for in subsection (3),he shall cause the goods to be released,provided all other conditions for importation orexportation have been complied with.

(5) Where pursuant to an application madeunder subsection (1), the Director­General ofcustoms has suspended the release of anygoods into free circulation and the periodreferred to in subsection (4) has expiredwithout the granting of any provisional relief bya Court, and provided that all other conditionsfor importation have been complied with, theowner, importer or consignee of such goodsshall be entitled to have such goods released.

(6) Notwithstanding anything contained in thepreceding provisions of this section, where thesuspension of the release of any goods iscarried out or continued in accordance with anorder of court, the provisions of subsection 4 ofsection 170 of Intellectual Property Act, No. 36of 2003, shall apply.

(7) The court shall have the power to order theapplicant to pay the importer, the consigneeand the owner of the goods, appropriatecompensation for any harm caused to themthrough the wrongful detention of goods orthrough the detention of goods releasedpursuant to the preceding provisions of thissection.

(8) Without prejudice to the protection ofconfidential information, the Court shall havepower to give the right holder sufficientopportunity to have any goods detained by thecustoms authorities inspected in order tosubstantiate the right holder's claims. TheCourt shall in addition have power to give theimporter an equivalent opportunity to have anysuch goods inspected.

(9) Without prejudice to other rights of actionopen to the right holder and the defendant, theCourt shall have the power to order thedestruction or disposal of any infringing goodsin accordance with the principals set out insection 170 of Intellectual Property Act, No. 36of 2003. In regard to counterfeit trade markgoods, the Court shall not other than inexceptional circumstances allow the reexportation of the infringing goods in anunrelated state or subject them to a differentcustoms procedure.

(10) The provisions of sections 125A and 125Bshall not apply to small quantities of goods of anon­commercial nature contained in atraveller's personal luggage or forwarded insmall consignments.

(11) In this section, the expressions "counterfeittrade mark goods" and "pirated copyrightgoods" shall have the same meanings as areassigned to them in section 125A."

Stoppage,inspection, andsearch of vehiclessuspected to betransportingsmuggled goods, &c.

126.(1) Where any officer of customs, or any peaceofficer or excise officer acting in aid orassistance of any officer of customs, hasreason to suspect that smuggled goods arebeing transported or removed in any vehicle ofany description whatsoever, it shall be lawfulfor such officer­

(a) to give such orders, directions orsignals, or to use such devices, or totake such other measures, as may benecessary to stop the vehicle or tocause it to be halted ; and

(b) to inspect and search the vehicle.

(2) Where the Collector of Customs has reasonto suspect that any road is being used byvehicles which transport or remove smuggledgoods, he may erect or cause to be erectedacross the road or any part thereof a barrier orbarriers of such nature and description as tohim may seem necessary for the purpose ofstopping vehicles using that road or causingsuch vehicles to be halted.

[ 2,35 of1974][64,83 of1988]

(3) Where any barrier has been erected undersubsection (2) across any road or any partthereof, it shall be lawful for any officer ofcustoms or for any peace officer or exciseofficer acting in his aid or assistance­

(a) to give such orders, directions orsignals as may be necessary to causeany vehicle of any descriptionwhatsoever using such road to stop orto be halted at such barrier; and

(b) to inspect and search every vehiclestopped or halted at such barrier, forthe purpose of ascertaining whetherany smuggled goods are beingtransported or removed in such vehicle.

(4) Where any order, direction or signal is givenunder any of the preceding provisions of thissection for the purpose of stopping any vehicle,the driver or other person for the time being incharge of such vehicle shall forthwith stop thevehicle or cause it to be halted in accordancewith such order, direction or signal; and anydriver or other person who fails or refuses tocomply with such order, direction or signal shallbe guilty of an offence and liable on convictionthereof to a fine not exceeding one hundredthousand rupees.

(5) Neither the Collector of Customs, nor anyother officer of customs, nor any peace officeror excise officer acting in aid or assistance ofany officer of customs, shall be liable to anyaction or prosecution, whether civil or criminal,by reason of the erection of any barrier, or thestoppage, inspection or search of any vehicle,or of any other act or thing done in pursuanceof the powers conferred by the preceding

[65,83 of1988]

[65,83 of

provisions of this section, notwithstanding thatsmuggled goods may not in fact be found inany vehicle which is stopped, inspected orsearched as hereinbefore provided.

(6) In this section­(a) " peace officer " has the samemeaning as in the Code of CriminalProcedure Act;

(b) " excise officer" has the samemeaning as in the Excise Ordinance.

Arrest of personsreasonablysuspected of anoffence under theOrdinance,

127. Every offence under this Ordinance shall bedeemed to be cognizable within the meaning of theCode of Criminal Procedure Act, and any personagainst whom a reasonable suspicion exists that he hasbeen guilty of any such offence may be arrested in anyplace either upon land or water by any officer ofcustoms or other person duly employed for theprevention of smuggling. Every person so arrested shallwith all convenient despatch, be taken before thenearest Collector of Customs to be dealt with accordingto law.

Persons arrested tobe produced beforea Magistrate undercertaincircumstances.

127A. Where a Collector is of opinion that a personarrested and produced before him in terms of section127 for an offence under this Ordinance is a personcapable of interfering with the investigation or that thenature of the offence is such that it is desirable to keepthat person in custody for the proper investigation of theoffence for more than twenty four hours, he shallproduce such person before a Magistrate.

Access to personsin custody forpurpose ofinvestigations.

127B. Notwithstanding anything in any other law, acustoms officer conducting an investigation under thisOrdinance in respect of any person arrested under

1988]

[6,24 of 1991]

section 127 and kept in custody under section 127A,shall have the right to access to such person and theright to take such person during reasonable hours, toany place for the purpose of investigation.

Power to release onbail to be vested inHigh Court.

127C. No person suspected or accused of an offenceunder this Ordinance in respect of any goods the valueof which exceeds one million rupees, shall be releasedon bail except by the High Court, in exceptionalcircumstances. The power conferred on the High Courtby this section shall be exercised by the Judge of theHigh Court holden in the Zone within which the accusedresides or the Judge of the High Court holden in theZone within which the offence is alleged to have beencommitted.

Arrest of personsreasonablysuspected of anoffence under theOrdinance.

128.(1) The Collector or any officer of customsauthorized in that behalf in writing by theCollector may­

(a) at all reasonable hours by day ornight enter and search any building orplace in which he suspects there are­

(i) any uncustomed goods,

(ii) any goods enumerated in thetable of prohibitions andrestrictions in Schedule B* andimported or brought into theIsland contrary to the prohibitionsand restrictions referred to in thatSchedule, or

(iii) any books of accounts orother documents containing anyevidence relating to an offenceunder this Ordinance which, orwhich he suspects, has been oris being committed ;

[66,83 of1988]

(b) break open any door, vault, chest,trunk, package or other place ofstorage which he may considerreasonably necessary to break for thepurpose of exercising his powers underthe preceding provisions of thissubsection; and

(c) where he discovers any such goods,books or documents, seize and storethem in a place of security selected bythe Collector.

(2) The Collector or any officer of customsreferred to in subsection (1) may request anyperson in charge or occupation of any buildingor place specified in paragraph (a) of thatsubsection to assist the Collector or suchofficer to enter and search that building orplace in the exercise of the powers of theCollector or such officer under that subsection,and if such person when so requested fails toassist the Collector or such officer, he shall beguilty of an offence.

(3) If any person obstructs the Collector or anofficer of customs referred to in subsection (1)in exercising any power under that subsection,he shall be guilty of an offence.

(4) A person who is guilty of an offence undersubsection (2) or subsection (3) shall be liableon conviction to a fine not exceeding onehundred thousand rupees.

[7,2 of 2003]

Power to enter forthe purpose of auditor examination orrecords

128 A.(1)The Director­General or any officer ofcustoms authorized in that behalf in writing bythe Director­General may­

" (a) at all reasonable, hours of the dayor night enter any building or palacewhere records are kept in accordancewith section 51B in audit of examinesuch records on any matter pertainingto customs either in relation to specific,transactions or to the adequacy andintegrity of the manual or electronicsystems by which such it records arecreated and stored

(b) open and examine any receptaclewhere any book of account register,record or any other document may befound for the purposes of thepreceeding provisions of thisOrdinance:

(c) examine and take copies of. ormake extracts from or take possessionof any book of account register, otherdocument found in such place orbuilding.

(d) operate any computer found in anybuilding and make copies or takeprintouts of the whole or part of anyentries recorded or stored therein.

(2) Where an officer authorized by the Director­General under subsection (1) of this sectiontakes into his possession any book of account,register, record or oilier documents from anyperson, such officer shall issue to that person amemorandum specifying the book, register,

[ 19,35 of

record or document he has taken into hispossession.

(3) Any book of account, register, record orother document taken into his possessionunder subsection (1) by any officer may beretained in the possession of such officer forthe examination of such book, register, recordor document or for the institution of legalproceedings against the person to whom suchbook, register, record or other documentbelongs.

(4) The Director­General or any authorizedofficer of customs may request any person incharge or occupation of any building or placeto assist the Director­General or such officer toenter and search that building or place and ifsuch person when so requested fails to assistthe Director­General or such officer he shall beguilty of an office.

(5) Any person who obstructs the Director­General or an officer of customs in exercisingany of his powers under this section shall beguilty of an offence.

(6) A person who is guilty of an offence undersubsection (4) or (5) shall be liable to a penallynot exceeding one hundred thousand rupees.

Persons concernedin importingprohibited orrestricted goods,whether unshippedor not, and personsunshipping,harbouring or havingcustody of suchgoods, to forfeittreble the value, orone hundredthousand rupees.

129. Every person who shall be concerned in importingor bringing into Sri Lanka any prohibited goods, or anygoods the importation of which is restricted, contrary tosuch prohibition or restriction, and whether the same beunshipped or not, and every person who shall unship orassist, or be otherwise concerned in the unshipping ofany goods which are prohibited, or of any goods which

1974][67,83 of1988]

[ 20,35 of1974][68,83 of1988]

are restricted and imported contrary to such restriction,or of any goods liable to duty the duties for which havenot been paid or secured, or who shall knowinglyharbour, keep, or conceal, or shall knowingly permit, orsuffer, or cause, or procure to be harboured, kept, orconcealed, any such goods, or any goods which havebeen illegally removed without payment of duty from anywarehouse or place of security in which they may havebeen deposited, or into whose hands and possessionany such goods shall knowingly come, or who shallassist or be concerned in the illegal removal of anygoods from any warehouse or place of security in whichthey shall have been deposited as aforesaid, or whoshall be in any way knowingly concerned in conveying,removing, depositing, concealing, or in any mannerdealing with any goods liable to duties of customs withintent to defraud the revenue of such duties or any partthereof, or who shall be in any way knowinglyconcerned in any fraudulent evasion or attempt atevasion of such duties or any part thereof, shall in eachand every of the foregoing cases forfeit either treble thevalue of the goods, or be liable to a penalty of onehundred thousand rupees, at the election of theCollector of Customs.

Persons concernedin exportingprohibited orrestricted goods.

130. Every person who shall be concerned in exportingor taking out of Sri Lanka or attempting to export or takeout of Sri Lanka any prohibited goods or any goods theexportation of which is restricted contrary to suchprohibition or restriction, whether the same be laden forshipment or not and every person who shall export orattempt to export any goods liable to duty the duties forwhich have not been paid or secured, or in any mannerdeal with any goods liable to duties of customs withintent to defraud the revenue of such duties or any partthereof, or who shall be knowingly concerned in anyfraudulent evasion or attempt at evasion of such dutiesor any part thereof, shall in each and every of theforegoing cases forfeit either treble the value of thegoods, or be liable to a penalty of one hundredthousand rupees at the election of the Collector ofCustoms.

[69,83 of1988]

[21,35 of1974][70,83 of1988]

Forfeited ships. 131.(1) Any ship not exceeding 250 tons tonnage,knowingly used in the importation orexportation of any goods prohibited of import orexport, or in the importation, exportation orconveyance, or in the attempted importation,exportation or conveyance, of any goods withintent to defraud the revenue, shall be forfeited.

(2) The owner or master of any ship exceeding250 tons tonnage, which would be liable toforfeiture under this section if the ship were ofless than 250 tons tonnage, shall forfeit a sumnot exceeding one hundred thousand rupees,and the ship may be detained on the orders ofthe Collector until such sum is paid or untilsecurity for its payment is given to thesatisfaction of the Collector.

If goods removedprior to examination,penalty upon partiesconcerned in theremoval.

132. Every person who shall remove any goods importedinto Sri Lanka from any ship, quay, wharf, or other placeprevious to the examination thereof by the proper officerof customs, unless under the care or authority of suchofficer, or who shall remove or withdraw from any quay,wharf, or other place any goods entered to bewarehoused after the landing thereof, so that nosufficient account is taken thereof by the proper officer,or so that the same are not duly warehoused, and everyperson who shall assist or be otherwise concerned insuch removal or withdrawal, or shall knowingly harbour,keep or conceal or shall knowingly permit or suffer, orcause or procure to be harboured, kept, or concealed,any such goods, or into whose possession any suchgoods shall knowingly come, every such person shallforfeit either treble the value thereof, or be liable to apenalty of one hundred thousand rupees, at the electionof the Collector of Customs.

[ 22,35 of1974][71,83 of1988]

[ 2,35 of 1974][72,83 of1988]

Persons assisting inunshipping orharbouring suchgoods liable to treblethe value or onehundred thousandrupees.

133. Every person who shall assist or be otherwiseconcerned in the unshipping, landing, or removal, or inthe harbouring of such goods, or into whose hands orpossession the same shall knowingly come, shall forfeittreble the value thereof, or the penalty of one hundredthousand rupees, at the election of the Collector ofCustoms; and the averment in any information to beexhibited for the recovery of such penalty that theCollector of Customs has elected to sue for the summentioned in the information shall be deemed sufficientproof of such election, without any other or furtherevidence of such fact.

How value to beascertained. 134 In all cases where any penalty, the amount of which

is at any time to be determined by the value of anygoods, is directed to be sued for under this Ordinance,such value shall be deemed and taken to be accordingto the rate and price which goods of the like sort ordenomination, and of the best quality, bear at such timeat the place of importation, and upon which the dutiesdue upon importation have been paid.

Goods, vessels, &c,liable to forfeituremay be seized byofficers, & c.Persons resistingofficers or rescuingor destroying goodsto prevent seizure,to forfeit onehundred thousandrupees.

135. All goods, and all ships and boats, and all carriagesand all cattle, liable to forfeiture under this Ordinance,shall and may be seized in any place, either by land orwater, by any officer of the customs or police, or by anygrama seva niladhari, or by any person employed forthat purpose, by or with the concurrence of the Minister,and every person who shall in any way hinder, oppose,molest, or obstruct any officer of the customs or police,or any grama seva niladhari, or any person so employedas aforesaid in the exercise of his office, or any personacting in his aid or assistance, or shall rescue, or causeto be rescued, any goods which have been seized, orshall attempt or endeavour to do so, or shall before or ator after any seizure stave, break, or otherwise destroyany goods to prevent the seizure thereof, or shall rescuethe same, then and in any such case the party sooffending shall be guilty of an offence, and shall forevery such offence forfeit a sum not exceeding onehundred thousand rupees.

[ 23,35 of1974][73,83 of1988]

[2,35 of 1974][74,83 of1988]

[75,83 of1988]

Goods stopped ortaken by policeofficer.

136. If any goods liable to forfeiture under this Ordinanceshall be stopped taken by any police officer or gramaseva niladhari, such goods shall be conveyed to thecustom­house nearest to the place where the goodswere stopped or taken, and there delivered to the properofficer appointed to receive the same, within areasonable time after the said goods were stopped andtaken; and in case any police officer or grama sevaniladhari stopping such goods shall neglect to have thesame conveyed to such custom­house within areasonable time, such police officer or grama sevaniladhari shall forfeit a sum not exceeding two hundredthousand rupees.

Officers makingcollusive seizures,or taking bribes, andpersons givingbribes, subjected topenalties.

137. If any officer of the customs, or any personemployed for the protection of the revenue, shall makeany collusive seizure, or deliver up, or make anyagreement to deliver up, or not to seize any ship, boat,or goods liable to forfeiture under this Ordinance, orshall take any bribe, gratuity, recompense, or reward forthe neglect or non­performance of his duty, every suchofficer or other person shall forfeit for every such offencea sum not exceeding one thousand rupees, and berendered incapable of serving the Government of SriLanka in any office whatever; and every person whoshall give or offer, or promise to give or procure to begiven any bribe, recompense, or reward to, or shallmake any collusive agreement with, any such officer orperson as aforesaid, to induce him in any way to neglecthis duty, or to do, conceal, or connive at anythingwhereby the provisions of this Ordinance may beevaded, shall forfeit a sum not exceeding one hundredthousand rupees.

Officers may searchpersons on. boardor on shore incertain cases.

138. It shall be lawful for any officer of customs to go onboard any ship which shall be within the limits of anyport or air port in Sri Lanka, and search any person onboard, and his baggage or other belongings and it shallbe lawful for him to search any person who shall havelanded from any ship or any person passing or having

[ 2,35 of 1974][76,83 of1988]

passed through the custom house and the baggage orother belongings of such person, provided such officershall have good reason to suppose that such personshall have any uncustomed, restricted or prohibitedgoods secreted about his person or in his baggage orother belongings ; and if any person shall obstruct anysuch officer in the performance of any such duty, everysuch person shall be guilty of an offence, and shall beliable on conviction thereof to a fine not exceeding onehundred thousand rupees or to imprisonment of eitherdescription for a term not exceeding five years or to bothsuch fine and imprisonment.

Prohibition againstthe throwingoverboard of goods,& c.

139. If any person throws overboard any goods from aship for the purpose of guilty of an offence and liable toa fine not exceeding one hundred thousand rupees; andif, in a prosecution for any such offence, it is proved tothe satisfaction of the court that goods were thrownoverboard while any officer of customs was on board inexercise of the powers conferred by section 64 orsection 118 or section 138 of this Ordinance or in thecourse of an attempt by an officer of customs to seizethe goods, it shall be presumed unless the contrary isproved that they were so thrown overboard for thepurpose of preventing seizure.

Before such searchthe person mayrequire to be takenbefore a Magistrateor a superior officerof the customs.

140. Before any person shall be searched by any suchofficer as aforesaid it shall be lawful for such person torequire such officer to take him before a Magistrate, orbefore the Collector or other superior officer of customs,who shall determine whether there is reasonable groundto suppose that such person has any uncustomed orprohibited goods about his person; and if it shall appearto such Magistrate, Collector, or other superior officer ofcustoms that there is reasonable ground to suppose thatsuch person has any uncustomed or prohibited goodsabout his person, then such Magistrate, Collector, orother superior officer of customs shall direct suchperson to be searched in such manner as he shall thinkfit; but if it shall appear to such Magistrate, Collector, orother superior officer of customs that there is not

[ 24,35 of1974]

[ 25,35 of1974]

reasonable ground to suppose that such person has anyuncustomed or prohibited goods about his person, thensuch Magistrate, Collector, or other superior officer ofcustoms shall forthwith discharge such person, whoshall not in such case be liable to be searched ; andevery such officer as aforesaid is hereby authorized andrequired to take such person, upon demand, before anysuch Magistrate, Collector, or other superior officer ofcustoms, detaining him in the meantime :

Provided that no person being a female shall besearched by any other person than a female dulyauthorized for that purpose by the Collector of Customs.

Penalty on officersfor misconduct withrespect to search.

141. If any such officer shall not take such person withreasonable despatch before such Magistrate, Collector,or other superior officer of customs when so required, orshall require any person to submit to be searched byhim, not having reasonable ground to suppose that suchperson has any uncustomed or prohibited goods abouthis person, such officer shall forfeit and pay a sum notexceeding two hundred rupees.

Penalty on personson board falselydenying havingforeign goods aboutthem.

142. If any passenger or other person on board any shipor boat, or after landing therefrom, shall upon beingquestioned by any officer of the customs whether he hasany foreign goods upon his person or in his possession,deny the same, and any such goods shall, after suchdenial, be discovered upon his person or in hispossession, such goods shall be forfeited, and suchperson shall forfeit treble the value of such goods.

Power to fire atvessels failing tobring to whenrequired.

143.(1) If any ship or boat which is liable to seizureor examination under this Ordinance, or whichofficers of customs are empowered by thisOrdinance to board, shall not bring to whenrequired so to do­

(a) the master of such ship or boat shallforfeit the sum of five hundred rupees;

and

(b) it shall be lawful for the officer ofcustoms having the charge orcommand of any vessel flying the SriLanka Customs flag, having firstcaused a gun to be fired as a signal, tofire at or into such ship or boat;

and such officer of customs or any otherperson acting in his aid or assistance or by hisdirection shall be and is hereby indemnifiedand discharged from any action or prosecution,whether civil or criminal, in respect of any actdone in pursuance of the powers conferred bythis section :

Provided, however, that the powers conferredon any officer of customs by the precedingprovisions of this section shall not be exercisedexcept in relation to a ship or boat which is forthe time being within the territorial waters of SriLanka.

(2) Where any vessel, other than a vessel dulyauthorized by the Collector in that behalf, fliesthe Sri Lanka Customs flag, the master orperson in charge of the vessel shall be guilty ofan offence and liable to a fine not exceedingtwo hundred rupees.

(3) In this section, " Sri Lanka Customs flag"means a flag of such design or description asmay be specified by the Principal Collector bynotice published in the Gazette to be the SriLanka Customs Hag.

[7,24 of 1991]

Goods not to bepassed if incurredpenalty is not paid.

144. If any person fails to pay any sum of money whichhe, under this Ordinance, has forfeited, or becomesliable to forfeit or to pay as a penalty, the officers ofcustoms may refuse to pass any goods which thatperson imports or brings into or is seeking to export ortake out of Sri Lanka until that sum is paid:

Provided that nothing in the preceding provisions of thissection shall be deemed to prohibit the recovery of suchsum by the Collector under any other provision of law.

Recovery ofpenalties. 145.

(1) Every penalty and forfeiture in a sum ofmoney incurred under this Ordinance shallcarry such rate of interest as may beprescribed by regulations made under this Actfrom the date on which such penalty orforfeiture is incurred to the date of payment.

(2) All penalties and forfeitures incurred underthis Ordinance and any interest thereon maybe sued for and recovered by an actioninstituted in the name of the Attorney­Generalin the District Court within the local limits ofwhose jurisdiction the party liable to suchpenalty or forfeit true resides. Sections 3, 4, 5,6, 7, 8, 12, 13. 14, 15 and 23 of the DebtRecovery (Special Provisions) Act, No. 2 of1990 shall, mutatis mutandis, apply to theinstitution and hearing' of every such action.

(3) Where an action is instituted in a DistrictCourt under subsection (2) the Court shall givepriority to hearing and disposal of such, action,except where circumstances render itnecessary for such other business to bedisposed of earlier.".

[77,83 of1988]

Persons liable toforfeiture or penaltyunder any section ofthe Ordinance to beguilty of an offence.

146. If any person by reason of any act or commissionbecomes liable, under the provisions of any section ofthis Ordinance to forfeit any goods or any sum ofmoney, or to any penalty other than a fine, such personshall, in addition, be guilty of an offence and shall, onconviction after summary trial before a Magistrate

(a) if the act or omission by reason of which hebecomes liable to the forfeiture or penalty,relates to the importation or exportation of anygoods set out in Column I of Schedule IF tothis Ordinance and in excess of the amount setout in the corresponding entry in Column II ofthat Schedule, be liable to the penalty set outin the corresponding entry in Column III of thatSchedule ;

(b) if the act or omission by means of which hebecomes liable to forfeiture or penalty relatesto the importation or exportation of any goodswhich are not set out in Schedule F and thevalue of such goods exceeds two hundred andfifty thousand rupees, be liable to imprisonmentof either description for a term not less thanthree months and not more than two years orto a fine not exceeding twenty five thousandrupees or to both* such imprisonment and fine;and

(c) if the act or omission does not relate tosuch importation or exportation, be liable toimprisonment of either description for a termnot exceeding two years or to a fine notexceeding ten thousand rupees or to both suchimprisonment and fine:

Provided, however, that no prosecution shallbe instituted against any person under thissection, unless the Principal Collector is ofopinion that the forfeiture or penalty, as thecase may be, whether imposed or not cannot

[ 27,35 of1974]

or is not likely to be recovered from suchperson.".

Magistrates to havejurisdiction toimpose anypunishmentprescribed foroffences under thisOrdinance.

147A. Notwithstanding the provisions of any written lawto the contrary, a Magistrate shall have jurisdiction toimpose on any person guilty of any offence under thisOrdinance, any punishment prescribed for such offence.

Averment ofoffence. 148. In any information or other proceeding for any

offence against this Ordinance the averment that suchoffence was committed within the limits of any port or ofthe territorial waters of Sri Lanka shall be sufficient,without proof of such limits, unless the contrary beproved.

Several personsconcerned in thesame offence jointlyand severally liableto the penalty, andmay be sued eitherby one or byseparateinformations.

149. When any penalty is imposed upon any personcommitting or concerned in the act by which suchpenalty is incurred, and such offence shall have beencommitted by several persons jointly, or several personsshall have been concerned in the same, such severalpersons shall jointly and severally incur every suchpenalty; and it shall be lawful to proceed against suchpersons to recover such penalty jointly by oneinformation or severally by separate informations, as theAttorney­General may deem expedient.

Goods not specifiedin boat­note whenfound concealed inany boat to bepresumed to havebeen stolen orunlawfully receivedby tindal andboatmen of suchboat.

150. Whenever goods not specified in the boat­notementioned in section 38 have been concealed in anyboat during the loading, transit, or unloading of suchboat in any harbour or port of Sri Lanka, the discovery ofsuch goods on board such boat shall be received in allcourts of Sri Lanka as prima facie evidence that thegoods have been either stolen by the tindal andboatmen employed in such boat or that the same havebeen unlawfully received on board by the tindal andboatmen employed on such boat with knowledge thatthe same have been stolen; and shall be conclusivethereof unless and until such tindal and boatmen or any

[ 28, 35 of1974]

of them shall satisfactorily account for the presence ofsuch goods on board such boat.

Goods notmentioned in boat­note when found inpossession of anytindal or boatmenwhen on board ofboat or on wharvesto be presumed tohave been stolen.

151. Whenever goods not specified in the boat­notementioned in section 38 shall be found in thepossession of any tindal or boatman when on board theboat in which he is employed, or when on the quays orwharves of any port or harbour of Sri Lanka, such tindalor boatman, in whose possession such goods arefound, shall be presumed to have stolen the goods or tohave unlawfully received the same knowing them tohave been stolen; unless and until such tindal orboatman shall satisfactorily account for his possessionthereof.

Onus probandi to beon the party, & c. 152.

(1) If any goods are seized for non­ payment ofduties or any other cause of forfeiture, and anyquestion shall arise in any proceedingswhether civil, criminal or otherwise, whetherthe duties have been paid for the same, orwhether the same have been lawfully imported,or lawfully laden or exported, the proof thereofshall lie on the owner or claimer of such goodsor on the person against whom anycontravention of this Ordinance is alleged andnot on the Attorney­General or the officer whoseized or stopped such goods or on theprosecution.

(2) Where in any proceedings referred to insubsection (1), the question arises whetherthere has been an attempt to export or take outof Sri Lanka any goods, then, if such goods arefound in any place on or near the sea­shore orthe bank of any river in such quantities orpacked in such manner as to suggest that suchgoods are intended to be exported or taken outof Sri Lanka, such goods shall be presumed tobe goods in respect of which an attempt toexport or take out of Sri Lanka has been made.

[78,83 of1988]

(3) In any proceedings referred to in subsection(1), a certificate purporting to be under thehand of the Principal Collector of Customs or aDeputy Collector of Customs that the goodsreferred to in that certificate are in his opinionimported goods, shall be prima facie proof ofsuch fact and shall be admitted in evidencewithout any further proof that it is so signed ;

and it shall not be competent for any court torequire the Principal Collector of Customs orthe Deputy Collector of Customs to disclosethe reasons upon which such opinion isexpressed.

Disbursement offorfeitures andpenalties recoveredunder thisOrdinance.

153. The amount(1) of all forfeitures and penalties recoveredunder this Ordinance or under this Ordinanceread with the provisions of any other writtenlaw; and

(2) of the proceeds of all such goods as maybe disposed of by the Principal Collector undersection 162 of this Ordinance, or under thisOrdinance read with the provisions of any otherwritten law,

shall be paid into the hands of such Collectorand shall (after deducting any expensesincurred) be paid and applied as follows :

(a) one half to the Deputy Secretary tothe Treasury, out of which sixty percentum shall be credited to theConsolidated Fund and the balanceforty per centum to the CustomsOfficers Management andCompensation Fund (hereinafter in this

[79,83 of1988]

Ordinance referred to as "the Fund" ;and

(b) the other half into a reward fundunder the control of the PrincipalCollector for distribution, in accordancewith a scheme to be approved by theMinister, among customs officersconcerned and the informers.'.

Purposes the whichof the Fund may beapplied.

153A.(1) The sum of money in the Fund shall beutilized for the following purposes :

(a) providing such facilities as appear tothe Principal Collector to enhance theeffectiveness of the management ofCustoms; and

(b) granting compensation to anycustoms officer who is permanently,totally or partially disabled ortemporarily incapacitated, or in theevent of death of any customs officer,to the legal heirs, in any case wheresuch disablement, incapacitation. ordeath, as the case may be, is due to aninjury

(i) received by such officer whileon duty, or

(ii) received by such officer whileon a journey

(a) from his place ofresidence to his place ofwork to report for duty, or

(b)from his place of work tohis place of residence afterduty, or

(iii) received by such officer,while not on duty in theperformance of some act whichis within the scope of his ordinaryduties, or

(iv) received by such officer incon sequence of any actperformed in the execution of hisduties, : or

(v) received by such officer as aresult of any act of reprisaloccasioned by, or arising out of,any action taken by him in theexecution of his duties.

(2) The Principal Collector may with theapproval of the Minister by regulation providefor the principles and conditions subject towhich such compensation will be granted andfor all other .matters necessary or expedient forthe establishment and operation of such aFund.

(3) Any compensation granted in accordancewith regulations made under the preceedingprovisions of this section in respect of thedisablement, incapacitation or death of acustoms officer shall be in addition to anypension, gratuity, compensation, allowance, or

[ 29,35 of1974]

other benefit granted in aspect of suchdisablement, incapacitation or death under theMinutes on Pensions, or any other written law.

Seized goods, ifunclaimed for amonth, to becondemned anddealt withaccordingly.

154.(1) All ships, boats, goods, and other thingswhich shall have been or shall hereafter beseized as forfeited under this Ordinance, shallbe deemed and taken to be condemned, andmay be dealt with in the manner directed bylaw in respect to ships, boats, goods, and otherthings seized and condemned for breach ofsuch Ordinance, unless the person from whomsuch ships, boats, goods and other things shallhave been seized, or the owner of them, orsome person authorized by him, shall, withinone month from the date of seizure of thesame, give notice in writing to the Collector orother chief officer of customs at the nearestport that he intends to enter a claim to the ship,boat, goods, or other things seized asaforesaid, and shall further give cash securityto prosecute such claim before the courthaving jurisdiction to entertain the same andotherwise to satisfy the judgment of the courtand to pay costs in such sum as the Collectoror proper officer of customs at the port whereor nearest to which the seizure was made shallconsider sufficient.

If proceedings for the recovery of the ship,boat, goods or other things so claimed be notinstituted in the proper court within thirty daysfrom the date of notice and security asaforesaid, the ship, boat, goods, or other thingsseized shall be deemed to be forfeited, andshall be dealt with accordingly by the Collectoror other proper officer of customs.

[8,24 of1991]

(2) If after the institution of proceedings in theproper court, the claimant shall give cashsecurity to restore the things seized or theirvalue in such sum as the Collector or properofficer of customs at the port where or nearestto which the seizure made shall considersufficient, the ship, boat, goods or other thingsseized may, if required, be delivered up to theclaimant at the discretion of the PrincipalCollector of Customs or a Deputy Collector ofCustoms.

(3) After institution of proceedings in the propercourt in respect of any ships, boats, goods orother things the court, may, on the applicationof the Director­General of Customs and if theclaimants do not object thereto, authorise suchDirector­General to dispose of such ships,boats, goods or other things and deposit theproceeds of sale in court. Where the claimantsobject to the disposal of such ships, boats,goods or other things the court may require theclaimants to deposit cash security, equal to themarket value (as assessed by such Director­General) of such ships, boats, goods or otherthings, in court.

Claim to thing seizedto be entered in thename of the owner.

155. No claim to anything seized under this Ordinanceshall be admitted by such court, unless such claim beentered in the name of the owner, with his residenceand occupation, nor unless oath to the property in suchthing be made by the owner, or by his attorney or agent,by whom such claim shall be entered, to the best of hisknowledge and belief, nor unless the claimant shall atthe time of filing his libel or plaint to establish his claimsatisfy the court that he has given notice and security asin section 154 enacted.

Notice to be given toofficers.

156. No summons shall be sued out against, nor a copyof any process served upon, any officer of the customsor other person as aforesaid, for anything done in theexercise of his office, until one month after notice inwriting shall have been delivered to him, or left at hisusual place of abode, by the party who intends to sueout such summons or process, his attorney or agent, inwhich notice shall be clearly and explicitly stated thecause of the action, the name and place of the abode ofthe person who is to bring such action, and the nameand place of abode of the attorney or agent; and noevidence of the cause of such action shall be producedexcept of such as shall be stated in such notice ; and nojudgment shall be given for the plaintiff unless he shallprove on the trial that such notice was given ; and indefault of such proof the defendant shall receive in suchaction a judgment and costs.

Actions to bebrought within twomonths of the causeof them.

157. Every such action as in section 156 referred to shallbe brought within two months after the cause thereof,and shall be laid and tried in the district where the factswere committed ; and if the plaintiff shall become non­suited, or shall discontinue the action, or if judgmentshall be given against the plaintiff, the defendant shallreceive the costs of suit.

Officer may tenderamends. 158. It shall be lawful for such officer or other person as

aforesaid, within one month after such notice, to tenderamends to the party complaining, or to his agent, and toplead such tender in bar to any action, together withother pleas; and if the court shall find the amendssufficient, it shall give judgment for the defendant; and insuch case, or in case the plaintiff shall become non­suited, or shall discontinue his action, or judgment shallbe given for the defendant, such defendant shall beentitled to costs as in section 157 mentioned :

Provided always that it shall be lawful for suchdefendant, by leave of the court where such action shallbe brought at any time before issue joined, to paymoney into court as in other actions.

[9,24 of 1991]

Judge may certifyprobable cause ofseizure

159. In case any information shall be brought to trial onaccount of any seizure made under this Ordinance, anda Judgment shall be given for the claimant thereof, andthe court before which the cause shall have been triedshall certify on the record that there was probable causeof seizure, the claimant shall not be entitled to any costsof suit, nor shall the person who made such seizure beliable to any action or prosecution on account of suchseizure ; and if any action shall be brought to trialagainst any person on account of such seizure, whereina judgment shall be given against the defendant, if thecourt before which such information shall have beentried shall have certified on the said record that therewas a probable cause for such seizure, the plaintiff shallonly be entitled to a judgment for the things seized, orthe value thereof, and not to any damages, nor to anycosts of suit.

Repealed by Act Repealed by Act [§9,24 of 1991]

Persons employedfor the protection ofthe revenue to bedeemed to be dulyemployed.

161. All persons employed for the protection of therevenue under the direction of the Minister or of theCollector shall be deemed and taken to be dulyemployed for the protection of the revenue ; and theaverment in any information that such person was soduly employed shall be sufficient proof thereof, unlessthe defendant in such information shall prove to thecontrary.

Vessels and goodsseized andcondemned may bedisposed of as theCollector, &c, shalldirect.

162. All ships and boats, and all goods whatsoever,which shall have been seized and condemned for abreach of this Ordinance, shall be disposed of as soonas conveniently may be after the condemnation thereof,in such manner as the Collector or other proper officerof customs shall direct; Provided that all horses, cattle,or goods of a perishable nature may be sold forthwith.

Collector in certaincases may mitigateforfeiture or penalty.

163. In all cases in which under this Ordinance anyships, boats, conveyances, goods, or other things have

[10,24 of1991]

become liable to forfeiture, or shall have been forfeited,and in all cases in which any person shall have incurredor become liable to any penalty, it shall be lawful for theCollector, should he deem such forfeiture or penaltyunduly severe, to mitigate the same ; but all cases sodetermined by the Collector shall nevertheless be liableto revision by the Minister­(* Application modified bysection 86 (2) of the Sri Lanka Ports Authority Act.)

Restoration ofseized goods, ships,& c.

164. In case any goods, ships, or boats shall be seizedas forfeited, or detained as undervalued, by virtue of thisOrdinance, it shall be lawful for the Minister to order thesame to be restored in such manner and on such termsand conditions as he shall think fit to direct; and if theproprietor of the same shall accept the terms andconditions prescribed by the Minister, he shall not haveor maintain any action for recompense or damage onaccount of such seizure or detention and the personmaking such seizure shall not proceed in any mannerfor the purpose of obtaining the condemnation thereof.

The Minister mayrestore seizures,and mitigate or remitpunishments andpenalties.

165. The Minister may, by any order made for thatpurpose, direct any ship, boat, goods, or othercommodities whatever, seized under this Ordinance, tobe delivered to the proprietor thereof, whethercondemnation shall have taken place or not, and mayalso mitigate or remit any penalty or fine or any part ofany penalty or fine incurred under this Ordinance, ormay release from confinement any person committedunder this Ordinance, on such terms and conditions asto him shall appear to be proper:

Provided always that no person shall be entitled to thebenefit of any order for such delivery, mitigation,remission, or release, unless such terms and conditionsare fully and effectually complied with.

Possession ofarticles suspectedto have been stolen.

166.(1) Any person who, within the limits of anyport, is found, or is proved to have been, in

[80,83 of1988]

[80,83 of1988]

possession or in charge of any article which issuspected to have been stolen from any ship,boat, quay, warehouse, or wharf of any port ofSri Lanka, may be charged with being, orhaving been, in possession of property which isreasonably suspected to have been stolen ;and if such person does not give an account tothe satisfaction of the Magistrate as to how hecame by such article, and the Magistrate issatisfied that, having regard to all thecircumstances of the case, there arereasonable grounds for suspecting such articleto have been stolen, such person shall beguilty of an offence, and shall be liable onconviction before a Magistrate to a fine notexceeding ten thousand rupees, or toimprisonment of either description for a periodnot exceeding six months.

(2) Where any officer of customs or any policeofficer finds any person in possession orcharge of any article which he suspects tohave been stolen, he may seize such articleand bring or cause to be brought such personbefore a Magistrate and charged as aforesaid.

Where the offence isconcerned withgoods, the value ofwhich exceeds fivehundred thousandrupees such offenceto be deemed a non­bailable offence.

166A. Where a person is suspected to be concernedwith an offence under section 129 or section 130 of thisOrdinance and the value of the goods in respect ofwhich the offence is alleged to have been committedexceeds five hundred thousand rupees, thennotwithstanding anything in this Ordinance or in anyother written law such offence shall be deemed to be anon­bailable offence.

Guidelines forimposing penalty orordering forfeiture.

166B. In imposing a penalty or ordering a forfeitureunder sections 27, 28, 29, 30, 31, 32, 38, 47, 52, 56, 57,59, 62, 63, 64, 67, 68, 74, 76, 77, 110,119, 129, 130,

[81,83 of1988][8,2 of 2003]

[81,83 of1988]

131, 132, 133, 135, 136 and 137, the Principal Collectorshall have regard to the following :

(a) the gravity of the contravention giving riseto the penalty or forfeiture;

(b) the amount of revenue lost as a result ofsuch contravention;

(c) the availability or shortage, as the case maybe, of the goods with respect to which suchcontravention has been committed.".

PART XIVINTERPRETATION OF TERMS USED IN THIS ORDINANCE

Interpretation. 167. Whenever the several terms or expressionsfollowing shall occur in this Ordinance, or in any otherenactment relating to the customs, the same shall beconstrued respectively in the manner hereinafterdirected, unless there is anything in the contextrepugnant to such construction, that is to say:­

" bonded warehouse" shall mean any place approved ofby the Minister in which goods entered to bewarehoused may be lodged, kept, and secured withoutpayment of duty, although prohibited to be used in SriLanka;

" coastwise " shall mean the trade by sea from any onepart of Sri Lanka to any other part thereof;

" Collector" shall mean the Principal Collector, Collector,deputy, assistant, sub­collector, or other principal actingofficer of customs of any port or place;

" Container freight station " or " Inland clearance depot"shall mean a place designated by the Collector

[81,83 of1988]

[8,2 of 2003]

(a) for the storage and clearance of goodsunder customs control after they have been de­stuffed from containers or when they are to bestuffed into containers;

(b) for the storage of containers which havegoods therein; and

(c) for the storage of empty containers ;

'" customs house" shall mean any place for thetransaction of customs business ;

"document" includes any information contained in anelectronic record ,printed on a paper stored recorded ofcopied on optical or magnetic media and produced bywhatever means;

" flashing point" shall mean " flashing point" as definedin the Petroleum Ordinance, or in any enactment thatmay hereafter be substituted therefor;

" foreign " shall mean the trade by sea to or from anypart or place beyond the limits of Sri Lanka;

" kerosene oil" shall include the liquids commonly knownby the names of rock oil, Rangoon oil, Burma oil,kerosene, petroleum, paraffin oil, mineral oil, petroline,gasoline, benzol, benzoline, benzine, and any liquid thatis made from petroleum, coal, schist, peat, or any otherbituminous substance, or from any products ofpetroleum with a flashing point of less than 150° F., andany inflammable hydrocarbon (including any mixture ofhydrocarbon, and any liquid containing hydrocarbon)which is capable of being used for providing reasonablyefficient motive power for a motor car; " warehouse ofthe Republic

[81,83 of1988]

[81,83 of1988]

[81,83 of1988]

[81,83 of1988]

" shall mean any place provided by the Government forlodging goods therein for the security of the customs;

" mail steamers" shall mean steamers running undercontract with the United Kingdom, Indian, or Burmese,or any colonial or foreign Government;

" master" of any ship shall mean the person having ortaking the charge or command of such ship ;

" officer of customs" shall mean any person acting assuch for the time being;

" owner" shall alike mean one owner if there be onlyone, and any or all the owners if there be more thanone;

" port or harbour " shall include a customs aerodrome ;

" seamen " shall include mate, mariner, sailor, orlandsman, being one of the crew of the ship ;

" ship or vessel" shall mean ship or vessel of everydescription and shall include an aircraft;

" shipment" with its grammatical variations and cognateexpressions shall include loading into an aircraft ;

" value ", in relation to imported goods, whether suchgoods were imported lawfully, or otherwise means theprice of such goods as determined in accordance withSchedule E.

" warehouse" shall mean any place provided for thedeposit of goods on the landing or for the shipmentthereof for the security of the customs.

See Schedules ,10 of 198383 of 19882 of 2003

Chapter 344