Bonded Operations


Q
How to register a Bond?
A
  • Private Bonds - Warehouses owned by Private Companies to store goods without payment of duties and taxes under Customs purview
  • Public Bonds - Warehouses woned by Sri Lanka Ports Authority to store goods without payment of duties and taxes under Custosm purview.
  • TIEP I - Facilitates the import of goods for manufacturing, processing or assembling for export on conditional relief from payment of import Duties and Taxes
  • TIEP IV - Facilitates the import of Capital and Intermediate Goods used for the manufacture of products and services for export, on whole or partial exemption of Customs Duties and Levies
  • IG - Facilitates the import of goods for export purposes which does not qualify under TIEP - I, or TIEP -IV
  • Entrepot - Facility to import manufactured or unmanufactured goods from one party of other country on free of Customs duty and other levies for Re-export to a third party of any country as imported or after simple processing (re-packing, re-labeling etc) with a value addition
  • INFAC - Facility provided by the Ministry of Commerce for Non - BOI Apperal Industries to import raw materials and accessories under duty free basis and manufacture and export.
Q
What requirement should I meet to have a Bonding facility?
A
  • Requirement for a Bonded warehouse -
    • Proposed Project Report
    • Duly filled application form
    • BRC & Memorandum of Articles (Form 48)
    • VAT Registration
    • Deed/ Lease Agreement (minimum validity period should be two years)
    • Director's Profile
    • Company Profile
    • Audited Financial Statement for the last five years
    • CCTV Surveillance System
    • Building & Site Plan (by L-Authority)
    • Insurance Policy (for building & Goods)
    • Electrical Installation Certificate (by E/Engineer)
    • Line Ministry/ Dept. Approval (if necessary)
    • Boundary Wall, Wire mesh, ceilling with one door
    • 24 hour security
    • Easy Accessability for heavy vehicles
  • Requirement for TIEP-I/ TIEP -IV/ IG Schemes -
    • Reqeust letter
    • Duly filled application forms in triplicate
    • Project Report
    • Ministry of Commerce approval for conversion ratios and wastage
    • Certificate of TIN/VAT Registration
    • EDB registration certificate
    • Performa Invoice (TIEP-IV/IG)
    • Business Registration
    • Memorandum of Article
    • NIC/ Passport copies of Directors
    • Deed or Lease Agreement for warehouse
    • Other necessary approvals e.g. Tea Board, Coconut Development Authority etc.
  • Requirement for INFAC Scheme -
    • Request Letter
    • Dully filled Application forms in triplicate
    • Power of attorney signed by a Lawyer
    • Corporate or Bank Guarantee
    • Ministry Approval (INFAC only)
    • TIEP approval (TIEP 1,4 and IBG)
    • Project Report
    • TIN/ VAT registration certificate
    • EDB registration certificate
    • NIC/ Passport copies of Directors
Q
What are the available Bonded schemes? (TIEP I/ TIEP IV/ Entreport etc)
A
  • Private Bonds - Warehouses owned by Private Companies to store goods without payment of duties and taxes under Customs purview
  • Public Bonds - Warehouses woned by Sri Lanka Ports Authority to store goods without payment of duties and taxes under Custosm purview.
  • TIEP I - Facilitates the import of goods for manufacturing, processing or assembling for export on conditional relief from payment of import Duties and Taxes
  • TIEP IV - Facilitates the import of Capital and Intermediate Goods used for the manufacture of products and services for export, on whole or partial exemption of Customs Duties and Levies
  • IG - Facilitates the import of goods for export purposes which does not qualify under TIEP - I, or TIEP -IV
  • Entrepot - Facility to import manufactured or unmanufactured goods from one party of other country on free of Customs duty and other levies for Re-export to a third party of any country as imported or after simple processing (re-packing, re-labeling etc) with a value addition
  • INFAC - Facility provided by the Ministry of Commerce for Non - BOI Apperal Industries to import raw materials and accessories under duty free basis and manufacture and export.
Q
What guarantee should I keep?
A
  • A Guarantee / sureties nominated by Director General of Customs in terms of section 69 of Customs Ordinance either a Bank Guarantee/ Corporate Guarantee/ Personnel Guarantee or combination of guarantees.
Q
What are the Customs charges ?
A
  • Application fee
  • Application Processing Charges
  • Inspection Charges
  • Verfication Charges
Q
How do I pay ? (Payment Instructions, E-Payment facility)
A
  • Direct payment to Customs Shroff branch
Q
How to obtain access to ASYCUDA World? (Forms, Guidelines etc.)
A

All Asycuda registration information will find at ICT Directorate > Importers Registration

Q
What declarations should I made to Customs (To Bond/ Ex Bond/ Re Bond/ etc) ?
A
  • To Bond - CusDec for Import Quantity
  • Ex Bond - CusDec for release of goods after payment of duties and other levies for home use or other purpose
  • Re Bond - CusDec for Goods to be transferred from one Bond to another Bond
Q
What are my legal obligations as a Bondsman? (Sec 72-100)
A
  • Maintain the Bonded facility and warehouses - Section 69
  • Maintain the Bank Guarantee position - Section 70
  • Submission of CusDecs - Section 50A (Conditional Imports), Section 47 (Import CusDec to be submitted with other supporting documents), Section 57 (Exportation)
  • Submission of "To Bond" CusDec - Section 72
  • Proper documentation and other procedures to be followed by the bondsman to warehouse the goods - Section 74
  • Keeping the documents for at least 2 years
  • Maintaining the Import/ Export Register
  • To provide facility to examine by the Customs Officials at the importation (if needed) and at the exportation - Section 59A
  • To provide facility to Customs to carry out any sudden examinations of the Warehouse - Section 76
Q
Are there any restrictions/ prohibitions ?
A
  • Goods not permitted for bonding
    • Duty paid goods
    • Pershable goods
    • Damaged goods
    • Inflammable/ dangerous goods
    • Prohibited goods
    • Restricted goods without necessary license or permit
  • Permitted period for bonded cargo
    • Two months for confectionary
    • Three months for cigarette and tin foods
    • Six months for wine, beer in bottles
    • Two years for all other goods
    • Under the regulation initial period will be six months and approval to be obtained for the extension of the period.
Q
What would happen if I breach the law?
A
  • Bonding facility will be terminated or prosecute under Customs Ordinance.
  • Goods not duly warehoused or fraudulently concealed or removed will liable to forfeiture
  • Liable to penalty
  • Liable to imprisonment
Q
Whom should I contact in case of any doubt?
A

Deputy Director of Customs (Projects) Industries and Services Directorate


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