Export procedure of Sri Lanka
EXPORT TRADE SAMPLES
Beforehand taking place any export transaction , Trade Samplesare required to be sent to the buyer . Almost all the products except for some products which are not permitted to be sample export, such as Gems , Jewelry etc. are usually exported via air mail to avoid undue delay.
Trade samples up to 10,000/= are exempted from taxes and only requirement is a customs declaration form to be approved them to be sent. The Director General of Custom determines the quantity of trade samples which are intended to be exported.
PACKAGING
Adequate Packaging of export goods is a must, in order to avoid damages which leads the whole cost spent in producing, shipping a great distance and all the other additional costs in vain of the
product.
Proper packaging offers communication opportunities by mentioning prduct information, warnings and to display marketing messages which helps to promote the product.
CHECKLIST OF PACKAGING
• Information and labelling
• Identification mark and number, eg buyer's name and order number
• Sequential number of each package and the total packages in the consignment, e.g. "Package 7 of 20"
• Destination details - the port or the place of destination
• Weight
• Special handling instructions - A set of internationally recognizedsymbols are used to indicate how cargo handlers should handle packages
OTHER IMPORTANT FACTS TO BE CONSIDERED IN EXPORT PACKAGING
• Rules in the export market – Implies whether packaging materials are allowed or not and etc.
• Restrictions on wood packaging
• Packaging waste - packaging should follow the 3R's hierarchy namely Reduced, Reusable and Recyclable. In many export markets, there are stricter rules on packaging waste and collection
• Hazardous goods – confining Exportation of dangerous good and controlling their packaging
• Insurance - your transport insurance cover may be adversely affected if it can be shown that your goods were damaged due to poor packaging.
• Contracts – Packaging specifications in case of damaging products
SEA CARGO
Sea transport has been considered the cost effective way to move goods and raw materials specially in terms of quantityand majority of the world trade. Shipments can be considered under two categories in sense of the space which is being taken up :FCL- Full Container load shipments – The most cost effective way among two.
LCL-Less than Container Load shipments – This way is used as shipper doesn’t have their container fully loaded and Share with one or more shippers and said to be less cost effective as well.
Airfreight is more costly than shipping mostly because of the rates quoted by the airline aka retail rates are high- costed.There may have some strategies in order to decrease the cost likewise vendor management, controlling supply change and working closely and keep in touch with with airlines and freight forwarders can make a beneficial change in costs through consolidation of consignments. The air cargo exporters should submit “Shippers Instruction for dispatch” to obtain the Airway Bill at the end of the procedure.
Cut-Off times for some cargo:
CERTIFICATES REQUIRED FOR EXPORTS
• Certificate of Origin (GSP Certificate)
• Certificate of Origin
• Quality Certificate
• Health Certificate
• Phytosanitary Certificate
• Fumigation Certificate
Customs export Procedure
1. Good Declaration or Customs Goods Declaration(CUSDEC)
In international trade, either in importing or in exporting declaration of commodities is highly required at the border points. That declaration is named as Good Declaration and in Sri Lanka that is known as CUSDEC which is include details containing revenue and statistical implication.
Therefore, the CUSDEC has to be filled in with utmost vigilance.
- Commercial Invoice is prepared by the exporter stating all the particulars in relation to the shipment such as selling price, Freight costs, insurances and packing details which are required at foreign customs. This document should be filled along with the Good Declaration at the Export office.
-Packing List
A document specifies the contents of each individual package in the shipment.
Other Documents (if applicable)
• Any permits/license
• Tea Blend sheets
• Material utilization sheets
Export Duties and Levies
Customs Export Duty
Tariffs and taxes are to be payable on certain export items.
Royalty
Compensation for the use of property, patented inventions or natural resources .
Export CESS payment
raw material , traditional products without value addition (tea, rubber, coconuts etc.) this should be paid
port Procedure
Export Facilitation Center (EFC) is the place which is built by customs to streamline the operational aspects of physical cargo movements.
Purpose of EFC is to facilitate the export cargo clearance through custom by
Export cargo identified as high risk, based on risk assessment will be subjected for examination.
SUBMITTING THE DOCUMENTS TO THE BANK
Final stage of shipping is to submit documents to the bank.
They are:
• Commercial invoice
• Original Bill of Lading /A.W.B. No.
• Insurance Policy (if on CIF)
• Bill of Exchange (if on D/P or D/A terms)
• Letter of Credit
• Certificate of origin /GSP Certificate
• Packaging List
The following documents should also be submitted on the request of the buyer.
• Quality Certificate
• Health Certificate
• Phytosanitory Certificate
• Fumigation Certificate
• HACCPO Certificate (for food items)
• Any other certificates/Test reports such as Global GAP/GMP
Standard Payment methods
1.Exporting on L/C terms(letter of Credits)
2.Exporting on D/P Terms (Documents Against Payment)
3. Exporting on D/A Terms (documents against acceptance)
Penned By: Adithya Rathnayake
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