BOI Cargo Consolidation

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Important note: This article is a part of the project, Products of Sri Lanka Customs.

Board of Investors was established under the BOI law No.4 of 1978. It is an organization approved to promote investment in Sri Lanka.



Basic Procedure

Import

  1. Import the cargo.
  2. Prepare the CusDecs and other relevant documents.
  3. Get the PASS FOR DELIVERY from the Customs.
  4. Go to SLPA and pay the charges and collect the receipt.
  5. Go to Customs and get the gate passes.
  6. Arrange the transportation.
  7. Customs officer verifies the cargo and vehicle numbers at the gate of the port.
  8. Record the import in the In/Out book by the customs at the zone entrance. If the company is in the outside of the zone, this step is ignored. Usually, the companies at the outside of the zones have fewer restrictions for importation.

See Importation

Export

  1. Prepare the CusDecs and other necessary documents.
  2. Get the CusDecs passed. If the factory is inside of a zone this can be done the BOI office inside of the zone. If it is outside then this can be done from the BOI office in Colombo.
  3. Cargo has to be verified at the verification center. Each factory is assigned a verification center.
  4. Export the cargo.

See Exportation

Exportation via Container Freight Station (CFS)

  1. Shipper sends the cargo to the CFS with
    1. CDN (per PO) in 5 copies.
    2. Packing list
    3. CusDec
    4. Receipts of SLPA bill payments.
    5. BL
    6. Shipping note.
    7. Vendor declaration.
  2. Security at CFS entrance records the in-time and gets a copy of each CDN.
  3. CFS employees record the cargo information in the registers and each CDN is assigned a serial number.
  4. Customs officer at CFS stamps the security copy of the CusDec and the makes the endorsement of CARGO RECEIVED.
  5. CFS officers verify the received cargo with the list of bookings made with APL. (APL sends the booking details in advance to CFS) – For the customer Nike, this step is ignored.
  6. Unload the cargo. CFS officers scan the barcodes of the cargo and assign one PASR barcode for each pallet while unloading.
  7. Officer at CFS signs on a copy of CDN and handovers to the driver. (as a receipt of receiving the cargo with the right quantity and quality)
  8. A copy of a CDN is sticked to the relevant pallet.
  9. Scanned files are sent to the APL.
  10. CFS prepares the Daily Receive warehouse receipt (Excel sheet) and sends to APL.
  11. APL prepares the Container Load Plan (CLP) and arranges the release orders and emails them to CFS.
  12. CFS picks the empty containers.
  13. CFS loads the containers according to the CLP and prepares CDNs (8 copies). The loading cargo is again scanned PASR wise and the scanned files are sent to APL.
  14. CFS informs the Customs officer when the loading is complete.
  15. Customs officer at CFS chops the other side of the Security copy of CusDec and enters the container numbers, seal numbers and quantities and signs the document.
  16. CFS handovers the containers to the driver.
  17. CFS enters the loading details in the Laden book. (date, shipper, container numbers, drivers) Driver or clearer signs in the laden book.
  18. The containers are sent to the port.

Selling the Imported Raw Materials

This can be done by passing an entry in IM4 procedure by declaring the company as the exporter and the party who is getting the materials as the consignee. Usually, what the companies are doing is, declaring an agent of the company as the consignee and getting the raw materials out of the bond by paying the Customs duties. Then the company can sell the raw materials to another party at any price. No Customs declarations are required for the Fabric shorter than than 6 inches.

Process of Passing an Entry at BOI

  1. BOI entry processing charge should be paid to the bank in advance and the receipt should be attached to the entry.
  2. A valid CHA holder of the declarant company should direct the CusDecs to the receiving counter for processing.
  3. Receiving counter directs the Entry to a key-in officer in a random order.
  4. Key-in officer keys-in the information declared in the CusDec and numbers the entry.
  5. Appraiser scrutinizes the documents and ensures that all documents are submitted, in order and the goods are properly declared. For imports both assist.Appraiser and Appraiser should satisfy the entry.
  6. An officer records the information of the shipment in a book.

Approvals

Obtaining Approval for a BOI Project

Approval is given under section 17 of the BOI Law No 4 of 1978. The enterprise has to enter into an agreement in the BOI which enables the enterprise enjoys certain privileges and concessions granted by the organization.

Documentation

Documents Required for Approval for a BOI Project

  1. Duly filled application form from the Investment Promotion Department of the BOI. Details required in the application form are,
    • Details of the investment.
    • Details of the product, the enterprises hope to manufacture.
    • If the item manufactured, is for export or for local consumption.
    • If it is any other kind of project, the details of the project.
    • Number of employees, the enterprise hopes to employ.
    • Expected foreign exchange earnings.
  2. Project report to the investment appraisal of the BOI.

Documents Required To Process an Import Entry

  1. CusDec
    • BOI copy ( will be retained by BOI)
    • Delivery copy
    • Security copy
    • Statistical copy
    • If necessary party’s copy
  2. Commercial Invoice
  3. BL / AWB
  4. Delivery Order or Notice of Arrival
  5. Delivery copy (attach original commercial invoice, packing list)

Documents Required To Process an Export Entry

  1. CusDec
    • BOI copy
    • Security copy
    • Statistical copy
    • Party’s copy (if necessary)
  2. Commercial Invoice

Terms

Privileges and Concessions Granted Under Section 17 of the BOI Law

  1. Exemption from payment of Inland Revenue tax (only the company). Expatriate employees’ income is subjected to income tax at the rate of 15%.
  2. Exception from the section 10th of the Customs ordinance.
  3. Exemption from exchange control restrictions.
  4. Exemption from import control restrictions.
  5. The manufacturer can release up to 10% of the manufactured products to the local market by paying the Customs duties for the finished goods.

Project approved under section 17th needs to sign an agreement with the BOI. Agreement specifies the terms and conditions on which the project is approved and privileges and concessions granted.

Approvals Given Under 16 of the BOI Law No 4 of 1978

This permits projects to operate only under normal laws of the country that is for such enterprises the provisions of the Inland Revenue. Customs and Exchange Control Laws will apply.

Privileges and Concessions Granted Under Section 16 of the BOI Law

No special privileges or concessions are granted except the issue of a letter of recommendation to obtain a residence Visas for the expatriate personnel employed depending on the investment made. At least US$ 50,000 should be invested to employ one expatriate personnel.

Methods of Declaration for Imports

IM5 
Direct imports by export oriented projects located outside zones and removals from zones and bonded warehouses to export oriented projects outside zones.
IM6
Re-importation by all BOI projects.
IM7
Direct imports by all projects located in zones and removals from bonds to projects in zones.
IM9
Direct imports by non-export oriented projects located outside zones and removals from zones and bonds to non-export oriented projects outside zones.

Methods of Declaration for Exports

EX1
Exports manufactured out of local raw materials
EX2
Temporary exports
EX3
Re-Export of products manufactured out of imported raw materials.

Applicable Charges

For each processing entry, BOI will charge Rs.397.00. This payment should be made to the bank and the receipt should be attached with the entry before submitting it to the receiving counter.




--Gishan Chaturanga 20:03, 10 July 2012 (IST)