Industries & Services Directorate Project UnitExport Facilitation UnitBank Guarantee Unit Warehouse Keeping UnitCustoms BOI Coordinating UnitBonding Investigations Unit Investor Facilitation Center Parcel Post Structure

PROJECT UNIT (PU) Approval of New Bonds and New Bonded carriers Approval of Personal/Corporate Guarantees for Bonds and Inward Processing Schemes Renewal of Bonds, Bonded Carriers and Personal /Corporate Guarantees Coordination of related matters between the Ministry of Finance and Bonds Supervising Local Sales under BOI

Bonded Warehouse? A major scheme to facilitate traders, importers, industrialists, exporters, investors where these facilitators are permitted to store goods in a warehouse or place of security without payment of duties and taxes under Customs purview Types of Bonded Warehouses State/Public – Owned by Sri Lanka Ports Authority Private – Owned by Private Companies

Bonded warehouse Facility Holders Duty Free Shops Bonds for clearance of Express Cargo Ship Stores Sugar and Rice Bonds Bond for clearance of Unaccompanied Personal Baggage (UPB) 125 No. of Bonds Currently in Operation

New Bond - Required Documents Duly perfected application with project proposal Business Registration TIN & VAT certificates List of items to be Bonded Lease Agreement or Title deeds The Electrical installation certificate An approval from the relevant Local Authority An approval from the Environmental Authority (if necessary) Fire preventive measures Insurance policy covering the Bond and the cargo

New Bond - Approval Panel of officers from Bonding division will inspect the intended Bonding premises and make necessary recommendations to DC (I & S) regarding the suitability of the warehouse for the Bond purpose. If all requirements are fulfill to the satisfactory of DGC, he will recommend the proposed warehouse as Bond and will forward the documents to the Ministry of Finance for the approval by the Minister of Finance. The Bondsman should furnish the necessary security by Bank Guarantee/Corporate Guarantee.

Bonds - Renewal Approval of a Bond is restricted to a period of one year and it should be renewed on annual basis. Necessary documents to be submitted for renewal to Project Unit.

Supervision of BOI Local Sales Companies must obtain prior approval of BOI Registration of BOI local sale CusDecs and processing

EXPORT FACILITATION UNIT (EFU) For Whom Direct Exporters Manufacturers who manufacture goods and export Indirect Exporters Manufacturers who produce goods as inputs for other manufacturers for exports. Deemed Exporters Available Schemes TIEP-I (Monitored both by Customs and Ministry of Industry and Commerce) TIEP-IV IG (Individual Guarantee)

TIEP-1 Scheme Facilitates the import of goods for manufacturing, processing or assembling for export on conditional relief from payment of import Duties and Taxes. Raw materials, components, parts Consumables Packaging materials Export catalogs and brochures Registered Operators by December 2015 is Active operators by December 2015 is 700

TIEP-IV Scheme 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. Machinery, Equipment, Accessories Appliances, Devices, Supporting equipment Spare parts Transport Equipment and handling equipment etc. Registered operators by December 2015 is 506.

TIEP-I/TIEP-IV – Requirements for Registration Letter applying for registration Duly completed TIEP-I/TIEP-IV form in triplicate Project Report Certificate of VAT Registration Business Registration Memorandum of Article Other necessary approvals e.g. Tea Board, Coconut Development Authority etc.

TIEP-I/TIEP-IV – Security Required Bank Guarantee equal to the full value of Duty and other levies 100% BG New operators Based on performance this may relaxed over the time on combination of Corporate Bonds and BG

TIEP - Approval of new applications Ensure all the necessary approval are obtained from line authorities: Ministry of Industry and Commerce Tea Board Coconut Development Authority Ministry of Agriculture etc. Factory visits if required Agreement for Compliance Registration and allocation of Reference Number Granting of Approval on TIEP-I or TIEP-IV

TIEP-I Renewal of new applications Every year Performance verification Factory visit Granting of approval on TIEP-I

TIEP-IV Release of Bank Guarantees Performance Certified by auditors Receiving TIEP-V application Factory visit if necessary Approving TIEP-V applications

IG Scheme Facilitates the import of goods for export purposes which does not qualify under TIEP-I or TIEP-IV Customs Duty and Levies are secured against 100% Bank Guarantee Registered applications by December 2015 is 251

IG – Registration Letter applying for registration Duly completed IG form in triplicate Project Report Certificate of VAT Registration Business Registration Memorandum of Article

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 another country after simple processing (re-packing, re-labeling etc). With a value addition Section 22A(1) of the Customs Ordinance provide facility for cargo to be imported on duty free basis for Re- exports. No Entrepot trade is allowed outside the port premises

BANK GUARANTEE UNIT Accept Bank Guarantees under TIEP and Bonding scheme When an Import is made under TIEP Scheme, a Bank Guarantee should be deposited to cover all duties and taxes After the Imported goods had been exported, Bank Guarantee can be released. Bank Guarantees are only accepted with the following expiry dates, February 15. May 15, August 15, and November 15. Bank Guarantees are demanded 4 days before expiry. Maintaining TIEP books.

WAREHOUSE KEEPING UNIT Registering data in the To-Bond/ Ex- Bond/ Re-Bond CusDecs in the Bonding Registers with the liability. Allowing transfer of goods under Customs supervision Registering the Transfer Notes/ Ship Stores. Maintaining the Entrepot Register Receiving monthly sales reports from duty free shops. Allowing cancellation of liabilities after checking relevant documents.

THINETH Computer System A system for monitoring import and export liabilities of conditional goods. The liabilities for the conditional goods are calculated by the THINETH system and liability is secured by the system from Corporate Guarantee or Bank Guarantee which are already captured into the system and Debit Notice is issued

CUSTOMS BOI COORDINATION UNIT Registering Bank Guarantees from BOI registered companies Securing and Releasing BOI Bank Guarantees. Recovering Customs duties and other levies for the companies which go for the termination of BOI agreements. Coordination of related matters with BOI

Total Number of BOI firms in commercial operations Inside BOI Zones -226 Outside BOI Zones-1475 Total Number of CusDec processing points of BOI enterprises - 05 Bank Guarantees are secured at the request of the BOI and same is released, when the BOI agreement fulfilled or when the applicable duty and levies are paid. Colombo Head Office Katunayake Zone Biyagama Zone Koggala Zone Kandy Industrial Park

BONDING INVESTIGATION UNIT Investigations and carrying out company audits in relation to companies registered under Bonds, TIEP, INFAC and BOI

INVESTOR FACILITATION CENTER (INFAC) INFAC is a facility provided by the Ministry of Industry and Commerce for Non-BOI Apparel Industries to import raw materials and accessories under duty free basis for manufacture and export. Approval for such company is given by the ministry itself and monitoring and record keeping are carried under INFAC center at customs. Further INFAC Center is also responsible for providing VAT deferment facility for TIEP I, IV, and IG schemes Registered under INFAC by December 2015 is 243

INFAC Responsibilities Accepting new INFAC registrations. Site Inspections (if required) Renewing INFAC registration annually. Registering VAT deferment companies under TIEP 1,4 and IG schemes. Renewing VAT deferred companies annually. Monitoring VAT outstanding payments. Accepting, releasing and extending Bank Guarantees under VAT and INFAC schemes.

Documents Required to obtain VAT deferment facility for INFAC/TIEP Letter applying for registration Dully filled Applications Power of attorney signed by a Lawyer Corporate or Bank Guarantee Ministry Approval (INFAC only) TIEP approval (TIEP-I,IV and IBG) Project Report TIN/VAT registration certificates EDB registration certificate NIC/Passport copies of Directors Registered exporters for VAT Deferment by December 2015 is 552

Responsible for clearance of Air Packets/Parcels Sea Parcels / Bulk Parcels /Line Parcels Working points Colombo General Post Office Galle Kandy Trincomalee Jaffna Katunayake Free Trade Zone