Goods can be imported conditionally relieved from payment of import duties and taxes, on the basis that such goods are intended for manufacturing, processing or assembling and subsequent exportation. There are two main divisions in TIEP scheme, i.e. TIEP 1 and TIEP 4. The importation of inputs such as raw-materials, components, parts and packaging materials comes under TIEP 1 and importation of capital goods, appliances and spare parts comes under TIEP 4.
The scheme for Temporary Importation for exporters is governed by the Gazette Notification no. 1053/11 of 11.11.1998 published under section 22A of the customs ordinance.
22A Customs Ordinance
- The Director-General or such other officer authorized in that behalf shall and subject to such terms and conditions as may be prescribed by the Minister from time to time allow importation of articles which are in-tended to be re-exported without payment of import duty.
- Where goods manufactured or processed in Sri Lanka containing as a part or ingredient thereof any material imported and upon which import duty has been paid or secured are exported, refund or rebate of the whole or part of the import duty actually paid or secured in respect of such quantity of the raw material or articles as may appear to the satisfaction of the Director-General to have been used in the manufacture or processing of the goods shall be allowed upon such terms, and subject to such conditions, as may be prescribed by the Minister.
- The provisions of subsection (2) shall apply only to such goods as may from time to time be prescribed by the Minister by Notification to be published in the Gazette having regard to the economic development of the country.
- Drawback or rebate of the duty paid or secured in the case of plant, machinery and equipment imported for use in projects and ventures approved by the Minister, having regard to the economic development of the country and subject to such terms and conditions shall be allowed, on re-export, by the Minister at such rates as he may prescribe, having regard to the duration of use, depreciation in value and such other circumstances relating to such plant, machinery or equipment.
- Where any class or description of goods manufactured or produced in Sri Lanka are exported to any place out-side Sri Lanka and are thereafter re-imported, a drawback of the export duties of customs paid at the time of export under this Ordinance shall be allowed in full or part in respect of such goods upon such terms and conditions as may be prescribed by the Minister having regard to the period within which such goods are re-imported.
- Every person concerned in making any fraudulent claim for drawback or rebate of duty shall at the election of the Director-General be liable to a penalty not exceeding one hundred thousand rupees or three times the value of such goods on which such claim is made.
TIEP Products Avilable
--Gishan Chaturanga 16:44, 10 July 2012 (IST)