The Import and Export Control Department has issued fresh operating instructions to all commercial banks on advance payment in foreign currency, and the clearing of imported goods to the country.
The new instructions issued on Wednesday are valid till 13 February.
As such. Commercial Banks can effect advance payment where the amount exceeds $ 50,000 or its equivalent, if it is in compliance with other regulations, and if the importer can confirm the importation is made within the time period stipulated in regulation 8 (1) and 8 (2) of the Extraordinary Gazette no. 1739/3 dated 02.01.2012, after taking the relevant details/documents of the importer.
This will be considered as general approval issued for importers in terms of regulation 6 (I) (b) (ii) of the same gazette.
For private companies, the required documents are business registration or company registration; VAT and TIN certificates; Agreement between exporter and importer; Form 1 and/or Form 20 of Department of Company Registration; Article of Association; and confirmation by the importer of the importation date.
For Government agencies, the required documents are VAT and TIN certificates (if available); Agreement between exporter and importer; confirmation by the importer on the importation date; and the recommendation of the Secretary to the line ministry.
Commercial Banks can release the documents for clearance purposes from Sri Lanka Customs where importation is not made within the time period stipulated in the regulation 8 (I), 8 (2) and 8 (3) of the Extraordinary Gazette no 1739/3 dated 02.0 1.2012. This will be considered as general approval issued for importers in terms of regulation 19 of the same gazette.
Commercial Banks can effect $ 50,000 or its equivalent of the maximum amount as payment for an importer per two weeks on unpaid import bills relating to the goods imported under the Document of Acceptance (DA), after the period stipulated in regulation 9 (I) of the extraordinary gazette no. 1739/3 dated 02.01.20 12. This shall be considered as general approval issued for importers in terms of regulation 19 of the same gazette.
For implementing this instruction, Commercial Banks must take a declaration from the importer about the payment made under the DA after the maturity date via the other banks.
Commercial Banks can effect $ 50,000, or its equivalent of the maximum amount, as payment for an importer per two weeks on the payment on unpaid import bills relating to goods imported under the Open Account (OA) after the period stipulated in regulation 11 (1) (a) of the extraordinary gazette no. 1739/3 dated 02.01.2012. This shall be considered as general approval issued for importers in terms of regulation 19 of the same gazette.
For implementing this instruction, Commercial Banks shall take declaration from an importer about the payment made under OA after maturity date via other banks.
Sri Lanka Customs can release goods which are not listed in the Temporarily Suspended list (TS), Credit List, Import Control License item list, Banned item list, and imported under No Foreign Exchange Basis, without approval needing to be issued for each and every consignment of importers by the Import and Export Control Department, if the exporter can confirm there is No Foreign Exchange Basis and if it is not imported for the purpose of re-export.
For implementing this instruction, Sri Lanka Customs will need the importer to submit confirmation of the exporter. This will be considered as general approval issued for importers in terms of regulation 19 of the same gazette.
Sri Lanka Customs will act in accordance with regulation 14 (c) of the extraordinary gazette no. 1739/3 dated 02.01.2012, where importation is made under “No Foreign Exchange Basis” for the purpose of re-export.
The Import and Export Control Department has said it will not issue approvals relevant to cases mentioned above during the validity period of these instructions, and that these instructions are even applied for cases referred to this department for approval.
The Department said new instructions are aimed at better facilitation and minimising the movement of people considering the prevailing situation in the country due to the COVID-19 pandemic, in terms of regulation 20 of the extraordinary gazette no. 1739/3 dated 02.01.2012.
Amidst frantic efforts to save foreign exchange, the continuing restrictions have increased frustrations among importers, many of whom have either gone out of business or are struggling in their businesses.
(FT)