Importing goods from China to Sri Lanka can be a lucrative business venture for registered importers with a tax number. The process involves contacting a shipping company and clearing customs through a clearing agent once the goods arrive at Colombo Customs. However, there are several import procedures that need to be followed, including tax identification and direct trade import.
To become an importer or exporter in Sri Lanka, one must register with the relevant authorities and obtain the necessary licenses. This article will provide a brief overview of the procedures required to import goods from China to Sri Lanka and the steps involved in registering as an importer or exporter.
Key Takeaways
- Registering as an importer or exporter is necessary to import goods from China to Sri Lanka.
- Tax identification and direct trade import are important procedures to follow.
- Contacting a shipping company and clearing customs through a clearing agent are necessary steps in the import process.
Tax Identification
To import goods into Sri Lanka, a Tax Identification Number (TIN) or Value Added Tax (VAT) number must be obtained. Registering as a registered importer with Sri Lanka Customs requires a TIN or VAT number. Sri Lanka Customs, which falls under the Ministry of Finance and Mass Media, is responsible for promoting legitimate trade, facilitating international trade, collecting revenue, and collecting import and export data. The customs declaration of goods in Sri Lanka is called CUSDEC, which is used to declare the imported goods.
Direct Trade Import (DTI)
Direct Trade Import (DTI) is a process that importers must follow to declare their imported goods. The implementation of processing automation through “Asycuda World” has made it easier for importers to process their Customs Declaration (CUSDEC) without any delay. However, any delay in filing or lack of documentation can cause a delay in the customs clearance process, resulting in demurrage charges on imported goods.
The efficiency of the customs clearance process depends on the availability of valid documents, the accuracy of the information provided in the documents, and the timeliness of submitting the documents and necessary customs clearance applications. In general, imports from all countries go through three stages, including one-time registration, handling import license, import documents, and import customs clearance procedures.
This website provides independent specifications for these three import stages, giving importers a clear understanding of the requirements for each stage. By following the DTI process and ensuring that all necessary documents are submitted on time, importers can avoid any delays in customs clearance and the associated demurrage charges.
How to Register as an Sri Lanka Importer or Exporter?
Step 1: Obtain the Application
To register as an importer or exporter in Sri Lanka, the first step is to obtain the application form. This can be done by visiting the nearest Sri Lanka Customs office or by downloading the form from their website.
Step 2: Get Enrolled in the ASYCUDA System
After obtaining the application form, the next step is to get enrolled in the Automated System for Customs Data (ASYCUDA) system. This can be done by submitting the completed application form along with the required documents to the nearest ASYCUDA office.
Step 3: Collect All Required Documents
To complete the registration process, it is important to collect all the required documents. These documents include a copy of the business registration certificate, a copy of the tax registration certificate, a copy of the National Identity Card, and a copy of the bank account details.
Step 4: Take a Few Copies
Before submitting the application, it is important to take a few copies of the completed application form and the required documents. This will ensure that there are enough copies for future reference.
Step 5: Submit Your Application
The final step is to submit the completed application form along with the required documents to the nearest Sri Lanka Customs office. Once the application is approved, the importer or exporter will receive a registration certificate.
How to Import from China to Sri Lanka?
Importing goods from China to Sri Lanka can be a profitable venture for businesses looking to expand their product range. However, it can be a complex process that requires careful planning and attention to detail. Here are some steps to follow when importing from China to Sri Lanka:
Check the Certificates
Before importing any goods from China to Sri Lanka, it is essential to check the necessary certificates required by the Sri Lankan government. For instance, electronic products require CE and RoHs certification, battery products require MSDS, and chargers require BIS certification. Therefore, it is crucial to ensure that the products meet the necessary standards.
Find a Supplier
Finding a reliable supplier is crucial when importing products from China to Sri Lanka. Once you have identified the products you want to import, the next step is to find a Chinese wholesaler and obtain a sample. Samples should be shipped by air through reliable courier services such as DHL, FedEx, TNT, or post.
Determine the HS Code
Understanding the role of HS Codes is a crucial part of becoming an importer or an exporter. HS (Harmonized System) codes are unique, internationally recognized 8-digit codes maintained by the World Customs Organization (WCO). The main use of HS Codes is to provide a standardized way for customs agencies to quickly identify various products being imported and exported. To find the HS code for the types of goods you want to import or export, you can use the Sri Lanka HS Code Finder created by Sri Lanka Customs.
Check Import Requirements
Once you register as an importer with Sri Lanka Customs, you’ll be able to import many items without any additional requirements. However, there are certain goods for which you will require an import license or will only be able to import temporarily. To check if the items you want to import require an import license or are importable only under temporary conditions, enter the item’s HS code into the Commodity Search page on the Sri Lanka trade information website.
Quote the Production Price and Delivery Time
It is essential to discuss the production price and delivery time with the supplier before placing an order. If you don’t have a purchasing plan, your suppliers may only quote ex-works prices, not CIF prices. Therefore, it is crucial to have a clear understanding of the production price and delivery time before making any purchase.
Discuss the Payment
Chinese sellers will accept wire transfers, PayPal, and other methods. It is essential to have a business account for the transfer and discuss the payment terms with the supplier before placing an order.
Find an Import Agent
Importing goods from China to Sri Lanka can be a complex process that requires a lot of documentation. Therefore, it is advisable to find an import agent who can deal with all the documents required for shipping to Sri Lanka and customs services. An experienced import agent can help you navigate the complex import regulations and ensure that your goods are delivered safely and on time.
Import from China to Sri Lanka Hosted
For those who lack an import license or are unfamiliar with the process of importing goods from China to Sri Lanka, there is a solution available. A sourcing company can import goods from China to Sri Lanka in their name, mainly through Shanghai/Ningbo Port. They will clear the goods on their behalf and let the customer pick up the goods after the container arrives at their yard. This service is already provided to a number of customers who are not in the import business and import through the sourcing company. With this service, customers can be assured that everything is done in the sourcing company’s name, eliminating any worries or concerns.