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Clearance of Credit Items eleD$€, t'r ffoeD{str e}}€reD eqee}hCIe@dqo Spui,6Lo$ u)$glr$ arguuniGs $m:mr*isonLb trIlr{}ItTs ,tND EIP{}RI-S C {}r"l'R{}L t}Ep,\ttT"}IEIt. Qoo 75 - 1r'3, e:g$ &og, So. 75 - ll3, lq5rir ronE, ).r, --i- I i. I liir)t',i' od@:d oo:*ac$$g, Cg4trnatt oiqr-d, 1 ir:tirt. llrriirii:':. .ec.:5bd. ffim, era.sffi, 5S9, e*a:€& 01, €,-r.tr&* 6f$. g.Gu, 5i9.. &qlll$rir.l_cl" f irrk Slrt*" Pt}.fl*s:559.l_qtrylgjl @od eoroo \ OsA cbtocs \ rECDt't/t0Da2lNoL' ffi"";* i ?,Tr*,** i ffi]*.o4.2azl Director General Sri Lanka Customs CEOs of all Comrnercial Banks Dear Sir/ Madam Clearance of Credit Items The fbllowing direction is issued under the power vested in Lnports and Exports (Contr"ol) Act IrIo.l of 1969 and in terrns of Regulations No. 2i of the Gazette Extraordinary No. 2l84l2l dated July 16.2020. You are kindly hereby infbnned that Tariff Determination Committee (TDC) has decided to release items fi'om Sri Lanka Customs, specified in the Schedule II of Imports and Exports (Control) Regulations No. 04 of 2020 published in the Gazette Extraordinary No. 2l\4l2l dated July 16,2A20, as arnended and irnported without adhering to credit terms specified in above regulations while charging appropriate penalty as specified in the Customs Ordinance. This dilection shall be implernented with irnmediate efTect. T V D Dam*yanthi S. Karunarathne Controller Geoeral Enclosed: the Gazette Extrzordinarv No. 218421 dated Julv 16.2020. g6eueo &,neus#:* Telephonr {}.@6d lsaeerqis6ft E-Mail dep*npt(jlltuct.ik co#cargCI ) orero den6:rd ) ocdd ) r :126774 I 23:4386 0r r 2128486 sOA Cn* llteb ffi--,t0r f;ro"H;Hfl5;ltt*lor m****l http:.#w*r-rimexport. gov. I k I fldgi ( ^I& fPoh - YS% ,xld m%cd;dka;s%l iudcjd§ ckrcfha w;s úfYI .eiÜ m;%h - 2020'07'16 1A PART I : SEC. (I) - GAZETTE EXTRAORDINARY OF THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA - 16.07.2020 Y%S ,xld m%cd;dka;%sl iudcjd§ ckrcfha .eiÜ m;%h w;s úfYI The Gazette of the Democratic Socialist Republic of Sri Lanka EXTRAORDINARY wxl 2184$21 - 2020 cQ,s ui 16 jeks n%yiam;skaod - 2020'07'16 No. 2184/21 - THURSDAY, JULY 16, 2020 (Published by Authority) PART I : SECTION (I) — GENERAL Government Notifications IMports AND EXPORTS (CONTROL) ACT, No. 1 OF 1969 REGULATIONS made by the Minister under Section 20 to read with sub-section (3) of Section 4 and Section 14 of the Imports and Exports (Control) Act, No. 01 of 1969 as amended by Act No. 48 of 1985 and Act No. 28 of 1987. MAHINDA RAJAPAKSA, Minister of Finance, Economic and Policy Development. At the Ministry of Finance, Economic and Policy Development, Colombo 01, July 16, 2020. 1A- PG 005074 — 618 (07/2020) This Gazette Extraordinary can be downloaded from www.documents.gov.lk 2A I fldgi ( ^I& fPoh - YS% ,xld m%cd;dka;s%l iudcjd§ ckrcfha w;s úfYI .eiÜ m;%h - 2020'07'16 PART I : SEC. (I) - GAZETTE EXTRAORDINARY OF THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA - 16.07.2020 REGULATIONS 1. These Regulations may be cited as the Imports and Exports (Control) Regulations No. 04 of 2020. 2. Regulation Nos. 7, 11, 12, 13, 14, 15, 16 and 17 of the Imports and Exports (Control) Regulations No. 02 of 2020, published in the Gazette Extraordinary No. 2176/19 dated 22 May 2020 and Regulation Nos. 3, 5, 6, 7 and 8 of the Imports and Exports (Control) Regulations No. 03 of 2020, published in the Gazette Extraordinary No. 2182/10 dated 30 June 2020, and their corresponding Schedules I and II are hereby repealed. Therefore, those Regulations shall be effective for importations of goods which are loaded until 16 July 2020 and the Regulations prescribed in this Gazette shall only be effective for importations of goods which are loaded on or after 17 July 2020. 3. a) An importer, who is registered under the Temporary Import and Export Processing Scheme (TIEP) or recommended by the Director General of Board of Investment of Sri Lanka or Director General of Export Development Board, and imports any goods including items listed out in Schedule I and II for the purpose of processing for direct export or for the purpose of processing and supply to another exporter, shall declare total value of goods exported in a quarter and the foreign remittance received / receivable in respect of such exports as certified by the local bank as follows; i. Remittance receivables as at the beginning of the quarter ii. Value of exports effected within the quarter iii. Remittance received within the quarter iv. Remittance receivables as at the end of the quarter The above data shall be submitted every quarter to the Director General of Customs and Director General of Board of Investment of Sri Lanka or Director General of Export Development Board with a certificate from the concerned bank confirming the receipt of such money. b) Further an importer, who imports goods for the purpose of processing and supply (indirect exporter) such goods to another exporter, shall submit purchase order to the banks to release documents together with a copy of the purchase order for the purpose of releasing such goods from the Sri Lanka Customs. In such instances, banks shall consider; i. The Purchase Order issued by the exporter to the indirect exporter when effecting an Advance Payment or establishing a Letter of Credit or effecting a payment under the Letter of Credit without credit facility (LC at sight) or effecting a payment under the Document against Payment (DP). ii. The Goods Received Notice (GRN) issued by the exporter to the indirect exporter when effecting payments under the payment method of Documents against Acceptance (DA) or an Open Account (OA) or Letter of Credit with credit facility (Usance LC). In case of 3(b)(i) above, the importer, who imports goods for the purpose of processing and supply such goods (indirect exporter) to another exporter, shall submit Goods Received Note within 14 days from the date of Customs clearance of goods to the Sri Lanka Customs. If such importer (indirect exporter) fails to submit such Goods Received Note within the stipulated time period, the Sri Lanka Customs shall notify the same to the Controller General of Imports and Exports and such importer (indirect exporter) shall be disqualified to import goods for process and supplies goods to any exporter thereafter. I fldgi ( ^I& fPoh - YS% ,xld m%cd;dka;s%l iudcjd§ ckrcfha w;s úfYI .eiÜ m;%h - 2020'07'16 3A PART I : SEC. (I) - GAZETTE EXTRAORDINARY OF THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA - 16.07.2020 c) For the purpose of this Regulation, i. The importer must submit its first foreign exchange receivable statement as at the beginning of July 2020 followed by the first quarterly statement in the end of September 2020 and continue thereafter on a quarterly basis and ii. The importation for re-export purpose shall be subject to a minimum of 20% Local value addition iii. The importer referred to in Regulation Nos. 3, 4 and 5, shall under all circumstances bring foreign exchange earnings to a bank in Sri Lanka not more than 120 days reckoned from the date of the export of processed goods using the imported goods referred to in Regulations Nos. 4 and 5. 4. An importer referred to in Regulation No. 3 may import any good including items in the Schedules I & II for the purpose of processing for export under the payment terms 3(1)(a), 3(1)(b) and 3(1)(c) referred to in Imports and Exports (Control) Regulations No. 01 of 2011 published in the Gazette Extraordinary No. 1739/3 dated 2 January 2012. 5. a) Importation of any goods by an importer for export are not subject to the restrictions set out in the above Regulations No. 3 except 3(c)(iii) for the following instances. In addition, the importer shall declare the source of earning of foreign currency to the local bank when executing this regulation. i. Importation on No Foreign Exchange Basis (NFE); ii. The importation made by using funds of foreign buyer, without obtaining funds from local banks; iii. The importation for export done through the deposits made out from the earnings of their exports of the foreign currency bank accounts (FCBU and BFCA) subject to not - exceeding the positive balance. b) When importation is made as per the Regulation No. 5(a)(i) and 5(a)(ii) above, goods can be cleared from Sri Lanka Customs after submission of declaration which confirms importation is made as per the said regulations and approval of other institutions is not required. 6. On the Recommendations of the Tariff Determination Committee, appointed by the President to strengthen and revive the national economy during the COVID-19 Health Quarantine process, the items listed out in the Schedules I and II have been identified, and the imports of those items shall be subjected to the restrictions prescribed by the Regulations below. 7. a) The importation of the item(s) listed out in the Schedule I, which are loaded to a ship/air craft from 17 July 2020, from the country where the goods are shipped targeting the local market under the payment terms 3(1)(a), 3(1)(b) and 3(1)(c) of the Imports and Exports (Control) Regulations No. 01 of 2011 published in the Gazette Extraordinary No. 1739/3 dated 2 January 2012, shall be temporarily suspended until further notice.
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