The Government Information Center

                                        Ministry of Finance
                             Sri Lanka Customs Department

Entrepot Trade

Facility to import of goods and re-export of the same to a third party without payment of duties and taxes.

Benefits

Ability to

• Import of goods without requirement of Import Control Licence
• Re-export of goods as imported with a value addition
  
• Meet buyers requirements by way of simple professing such as re-paci8ng or re-labeling
  
• Trade from one country to another without the goods physically arriving into Sri Lanka
  
• Exploit the country’s potential in global market providing more opportunities to enhance National Revenue.
  
• Change the status as transshipment to divert cargo to a consignee in a third country by switching of Bill of Laing on a request made by the original consignee in Sri Lanka to the shipping agent / airline.
  

Following goods are prohibited /restricted under Entrepot Trade Prohibited

1. Narcotics
2. Arms and ammunition
   
3. Goods which are prohibited to import and export under International Conventions for which Sri Lanka has become c contracting party.
   

Restricted

1. Cloves – re-export to countries under preferential trading arrangements.
2. Textile and clothing – re-export to USA, Canada, India, Austria, Italy, Belgium, Denmark, Finland, France, Germany, Greece, Ireland. Spain, Luxembourg, Sweden, Netherlands, Portugal and UK.
   

Warehousing of the goods

• Public Bonded Warehouse (BI) owned by S..L.P.A. could be used to store goods subject to availability of space.
  
• If the Trader owns a Customs Bonded Warehouse, goods are allowed to be transferred to the said warehouse under Customs supervisions pending re-export.
  
• Transfer of goods from one ship/air craft to another within the port without cargo being landed into a bonded warehouse is also allowed.
  

Security for the liabilities (Duties and Taxes)

• No Security is required for Entreport Trade for the movement of goods within the Ports.
• Removal of good out of Ports is allowed on Bank/Corporate Guarantee to cover liabilities.  Guarantee is released only after the proof of export is established.
  

Terms of Payments

• The FOB value of re-export should be more than the CIF value of import.
• Re-export is not permitted under DA terms.
  
• Normal Exchange Control regulations are applicable in respect of imports.
  
• For any variation of above requirements approval of the Exchange Controller should be obtained.
  

Customs Supervision

• There is no requirement of transferring goods under Customs Supervision within the Ports.
• Transfer/Transportation of goods outside the Ports will be under Customs Supervision or in a bonded carrier.
  

Processing Customs Documents

• Processing of Import and Export CusDec is done at the Bonds Division of Customs Department.
• The approval for Entrepot Trade is granted at the Bonds Division.  The trader will make the application giving details imports and exports vessel name, BL No., value of goods, terms f payments, descriptions of goods etc.
  
• Once the export is effected the proof of export (remittance, B/L etc) has to be submitted to the Bond Division within one month from the date of export for the cancellation of liabilities (duties and Taxes)
  

Country of Origin

• The Entrepot Trader should declare actual Country or Origin in Customs documents
• He should not declare Sri Lanka as the Country of Origin.
  

Customs Department provides assistance to promote Entrepot Trade in the country with speedy and streamlined clearance procedure.  Prospective traders who identify new trends in world trade could use this facility to achieve the goals in their business while making a valuable contribution to the growth of national economy.