Entrepôt Trade

The Scheme for ENTREPÔT TRADE provides for the import of goods and re-export to a third party without having to pay Customs Duty and levies in Sri Lanka.

Goods imported for entrepôt trade could be directly re-exported or could be deposited in a bonded warehouse for subsequent re-export with or without processing.

• Import of goods without import control license,
• Trade on NFE basis (Budget Proposal 2017),
• Meeting of buyer’s requirements by simple processing such as re-packing or re-labeling etc.,
• Switching of Bills of Lading changing the status to transshipment to divert the cargo to a consignee in a third country on a request made by the original consignee in Sri Lanka to the shipping agent/airline.
  

• Narcotics,
• Arms and Ammunition,
• Goods which are prohibited in international trade by International Conventions.

• Re-export of Cloves to countries under PTA,
• Re-export of textile and clothing to countries who are allocating annual quotas.

• Public Bonded Warehouses of SLPA (CFS3/CFS5)
• Private Bonded Warehouse (Section 69)
• Transfer from inward to outward ship/aircraft is also allowed under Customs supervision without warehousing

• Port of Colombo Bonded Warehousing,
• Goods other than dangerous & perishable goods,
• Cool Room facility,
• 24Hrs Security service provided,
• Entrepot operations can be carried out in front of B1 Bonded Warehouse,
• Small processing  such as repacking and re-labeling allowed at B.

• Movement of goods within the Port
  • No security is required
  • No Customs supervision
• Movement of goods from Port to Bond
  • Bank/Corporate Guarantee to cover liabilities
  • Under Customs Supervision
• Movement of goods from Port to Port
  • No security is required
  • No warehousing of goods
  • Under Customs Supervision

• Import
  • Exchange control regulations are applicable,
  • Actual country of origin shall be declared.
• Re-Export
  • Exchange control regulations are applicable,
  • Re-Export under DA not permitted,
  • Re-Export FOB > Import CIF,
  • Country of Origin Shall not be changed.

• Within one month from re-export, on the production to Customs:
  • Export bill of lading,
  • Export invoice with confirmation on inward remittance by the Bank.

An application with necessary information as given below shall be made at the Monitoring and Entrepôt Branch (SC/DDC) for approval upon assessment of the same prior to making the Customs declaration for the same.

• Application to Customs (I&S) on each import giving the following particulars:
  • Import and Export vessel Names, voyage numbers, dates,
  • Import bill of lading number,
  • Description and quantity of goods,
  • Import commercial invoice number and the date,
  • Import value of the goods (CIF),
  • Destination of re-export,
  • Re-export value of the goods (FOB) and the gain,
  • Undertaking to re-export within the granted period or to pay Customs Duty and Levies and remove the goods for home use,
  • Confirmation of the warehousing space allocation from the bondsman (e.g. SLPA),
• If the application is succesful, presently the warehouse code 7301142/7301127 for CFS3/CFS5 is linked to the TIN of the applicant for a period of one month.

In the engagement of Entrepôt Trade, following procedure has to be adopted by each and every operator in the case of import, export and discharging of liabilities thereform.

• CusDec
  • At Industries and Services Directorate – Office code – CBBD1
  • Customs Procedure Code – 7300-100
  • Warehouse Code – 7301142/7301127
• At Warehouse Keeping Unit (WHK)
  • Updates the bonding register
  • Endorsements on the CusDec
• Channel Selection (Selectivity),
• Appointment of officers for examination.

• Process CusDec at Industries and Services Directorate
  • Office code – CBBD1
  • Customs Procedure Code – 3273-100
  • Warehouse Code – 7301127
• At Warehouse Keeping Unit (WHK)
  • Updates the bonding register
• Channel Selection (Selectivity).

• Within one month from re-export,
• Export bill of lading,
• Export invoice with confirmation on inward remittance by the Bank,
• Warehouse Keeping Unit (WHK),
• Writing-off of liabilities in THINETH,
• Endorsement on CusDec “Cancellation Allowed”