1. INWARD PROCESSING IN SRI LANKA
31 May 2016
For
National Chamber of Commerce of Sri Lanka
Thilak Arumapperuma Arachchi
Superintendent of Customs
Export Facilitation Unit
Industries and Services Directorate
Sri Lanka Customs

2. INWARD PROCESSING (IP)
Embraces number of Customs Relief Procedures with Economic Impact provided for in legislation of Sri Lanka
It permits the imports of materials as inputs in to Sri Lanka for processing and export of finished/semi finished goods without payment of fiscal levies
The processing may include from simple repacking, sorting to complicated manufacturing by small scale to medium scale exporters

3. IP ADVANTAGES Reduced cost of production of the export products
Re-export with value addition
Increased competitiveness in the international market
Exploit the country’s potential in international maritime network
Enhanced trade flow between countries

4. IP - SCHEMES OFFERED BY CUSTOMS
TIEP-I (Temporary Import for Export Processing-I)
The Government Extraordinary Gazette No. 1053/11 of 11/11/1998
Raw materials, parts, consumables, packaging materils
TIEP-IV (Temporary Import for Export Processing-IV)
Section 22A of the Customs Ordinance
Plant, machinery, equipment and parts etc to be used in the export processing
To encourage expansion of production capacities and exports
INFAC
Apparel Industry
Fabric, accessories, ancillaries, Machinery
Entrepôt
Import of goods for re-export to a third party

5. IP - FOR WHOM? Direct Exporters Indirect Exporters
Who manufactures and exports
Indirect Exporters
Who manufactures and supply for others to further process and export
Customs Manufacture-in-Bond operator
TIEP operator
BOI enterprise under Section 17 of BOI Act
INFAC operator
A Manufacturer in the Scheme is not entitled to operate under Customs Duty Rebate, Manufacture- in-Bond or any other such scheme in respect of an identical product

6. EXPORTER AUTHORISED UNDER IP
IP - FACILITIES
ENTERPRISES
Permitted for duty exemption
Finished Goods
DEEMED EXPORT
EXPORTER AUTHORISED UNDER IP
Processing
Assembly
Manufacture
Raw materials/Consumables
/Packing materials
Plant/Machinery/Parts
DIRECT EXPORT
Finished Goods
Semi Finished Goods
Packing materials
INDIRECT EXPORT
FINAL EXPORT
EXPORTER AUTHORISED UNDER IP
EXPORT ORIENTED BOI VENTURE

7. CUSTOMS PROCEDURES WITH ECONOMIC IMPACT
Offered in GOOD FAITH
Implemented in TRUST
Relaxed for PRODUCTIVITY
Aimed at PROGRESS

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