TIEP-IV Scheme for Import and Export Processing
Learn about the TIEP-IV scheme for temporary import, export processing, and duties suspension in Sri Lanka. Discover who can benefit, the application process, permitted imports, required documents, and more.
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Presentation Transcript
TEMPORARY TEMPORARY IMPORT EXPORT PROCESSING EXPORT PROCESSING- -IV SCHEME SCHEME IMPORT FOR FOR IV Thilak Arumapperuma Arachchi Superintendent of Customs Export Facilitation Unit Industries and Services Directorate Sri Lanka Customs
TIEP TIEP- -IV FOR WHOM? IV FOR WHOM? Direct Exporters Who manufactures and exports Indirect Exporters Who manufactures and supply for others to further process and export Customs approved manufacture-in-bond TIEP operator BOI enterprise under Section 17 of BOI Act INFAC operator
TIEP TIEP- -IV PROCEDURE IV PROCEDURE The import Duty suspended NBT and PAL payable VAT is differed if registered 100% exemption on export over 50% 50% exemption on export over 25%
TIEP TIEP- -IV PERMITTED IMPORTS IV PERMITTED IMPORTS Capital goods directly involved in production process Machinery Equipment Accessories etc. Intermediate goods essential to the manufacturing process Appliances Devices Supporting equipment such as Air conditioners, computers generators etc. Spare parts of project plants Transport and handling equipment Breeding stocks for agricultural projects
TIEP TIEP- -IV APPLICATION FOR IV APPLICATION FOR REGISTRATION REGISTRATION An application shall be made to the Director General of Customs Applicant is required to justify the need for registration under the TIEP-IV scheme giving particulars about the applicant, nature of manufacturing process and kinds of inputs intended of import for manufacture of the export product(s), with documents in support of the same
TIEP TIEP- -IV DOCUMENTS IV DOCUMENTSREQUIRED REQUIRED Duly completed prescribed form (TIEP-IV) in triplicate Project report Certificate of VAT Registration Business Registration Form Memorandum of Article Data required for evaluating annual production and export volume Other necessary approvals (Tea Board, Coconut Development Board etc.)
TIEP TIEP- -IV APPLICATION FOR IV APPLICATION FOR IMPORT IMPORT The operator shall apply in the Application form for TIEP-IV Purpose of the importing the item and its relation to production. Description and specification of import item including quantity and value. Description of export product. Estimated production in the next 12 months and expected volume of export. Percentage of export volume in relation to total production.
TIEP TIEP- -I NEW APPROVAL I NEW APPROVAL Verification by Customs Premises where the processing will be carried out Accounting procedures used Obligations which must be fulfilled by anyone availing of IP The applicant shall Provide facilities for representatives of Director General o f Customs who may visit the factory or any other place of work or storage to ascertain the technical operations and/or obtain any information required by the Director General of Customs/Line Authority
TIEP TIEP- -IV GRANTING IV GRANTINGAPPROVAL APPROVAL If the application is acceptable to the Director General of Customs, a determination will be made as to the type of security required for the inputs to be imported (BG/CG/PG) The application is then registered, with a Customs Reference number (Warehouse Number) Approval is valid for one year
TIEP TIEP- -IV SECURITY IV SECURITY Once an Approval is granted operator shall furnish Guarantee equal to the value of Customs Duty applicable. The validity of any Guarantee or Bond is not less than twelve months or for such period as determined by the DGC
TIEP-IV RENEWAL OF AN APPROVAL Approval is for one year No renewal is required
TIEP TIEP- -IV ENTRY OF GOODS IV ENTRY OF GOODS Import Declaration (CUSDEC) Authenticated by Director/ Partner/ Proprietor/ any other persons duly authorized for the purpose and whose name and specimen signature are furnished
TIEP TIEP- -IV IMPORT PROHIBITIONS AND RESTRICTIONS IV IMPORT PROHIBITIONS AND RESTRICTIONS Imports subject to the prohibitions and restrictions Operators must ensure that necessary import licenses, approvals and permits are obtained prior to arrival of the goods (inputs) Examples: Import Control Regulations Ministry of Defense Approvals
TIEP TIEP- -IV DISCHARGE IV DISCHARGE OF GUARANTEES OF GUARANTEES At the end of one year from the commencement of production Statement of production and exports Duly certified by a recognized auditor Written undertaking by the exporter Will not be sold, hired, leased or disposed or used for any other purpose Without prior approval from DGC
TIEP TIEP- -IV RELEASE FOR HOME IV RELEASE FOR HOME USE USE Only on the approval of the DGC Customs Duty and levies are payable Waste is permitted on payment of Customs Duty and levies
