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| Saturday, 24 July 2004 |
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Special incentive schemes for exports Sri Lanka Customs currently implements several Incentive Schemes for the promotion of export industry under the directives of the Ministry of Finance with a view to assist enterprises to take the leap towards the emerging global market. Procedures in this respect have been formulated with due recognition of immense contribution of the industry for overall growth of the economy in Sri Lanka. The existing customs Facilitation Schemes can be identified mainly as Apparel Sector and Non Apparel Sector, said Deputy Director of Customs, W.A. Chandrasena addressing a seminar on Export Development in Colombo. Customs Infac Centre (Bonds Division) has been providing facilities for Industries under Apparel Sector in co-ordination with the Ministry of Industrial Development (Presently Ministry of Industry, Tourism & Investment Promotion) since 1998. Export Facilitation Branch (Bonds Division) functions aiming to open a new path for diversification of the traditional trend of exports under the following three Schemes. TIEP I (Inward Processing Scheme) TIEP IV and Duty Rebate TIEP I Scheme will facilitate a large number of small and medium scale Industries engaged in the export industry. The governing regulations of TIEP I Scheme have been published in Gazette Notification No. 1053/11 of 11th November 1998. Any Enterprise registered under this Scheme operates as a Manufacturer cum Exporter/Indirect Exporter and they are eligible to import all raw materials needed, depending on the nature of the industry, free of fiscal levies. Only the Ports and Air Ports Levy is recovered on imports at concessionary rate (0.5%). Liabilities on Customs Duty and Surcharge are secured on Bank/Exporter Guarantee as determined by Customs on track records of the operators. Deferment facilities can be obtained for VAT by Direct Exporters on Exporter Guarantees. All Direct Exporters under TIEP I Scheme can be registered with Customs for deferment of VAT on imports and the said deferments can be settled by way of Credit Vouchers issued by the Dept. of Inland Revenue on zero rated supplies declared by the Enterprises. TIEP IV Scheme has been designed to facilitate for the imports of Capital and Intermediate goods of the manufacturers who can make the supplies to export market at least 25% or more of their products. This scheme permits whole or partial exemption of fiscal levies on imports of Capital and Intermediate goods needed for the manufacture of products or services for export. VAT is playable on the said imports at the time of importation. Payment of Duty Rebates is a Key Facilitation Scheme adopted to bring about the sustainability in the competitive market to the exporter who is not entitled to import same raw material under any other Facilitation Scheme. The Scheme is implemented under the Policy Guidelines of Ministry of Finance and the payments of Rebates are made in terms of Section 22 A of the Customs Ordinance and the Gazette Notification No. 1053/12 of 11th November, 1998. Exporters who incur fiscal levies on imported inputs and utilize same to manufacture the products and exports are eligible to claim Duty Rebates. Also the Duty Component involved in the locally purchased imported raw materials are paid on claims of Rebates to the exporters. Import Duty and Surcharge levied on raw materials are considered for the payment of Duty Rebates on direct exports and indirect exports as well. Rebate payments are made as a percentage of FOB value based on general and specific rates determined by the Director General of Customs on the cost statement submitted along with relevant import documents. On approval of the Secretary to the Treasury the rates of Duty Rebates are published annually or periodically in Gazette notifications. The exporters under the Scheme should not claim Duty Rebates for an item provided he is already registered under another Facilitation Scheme for the same identical product. |
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