ICCSL hosts webinar on Temporary Import for Export Processing

Tuesday, 26 November 2024 02:31 - - {{hitsCtrl.values.hits}}

Temporary Import for Export Processing (TIEP) allows Sri Lankan exporters to temporarily import goods without paying customs duties, as long as the goods are re-exported after processing or manufacturing.

This system lowers production costs, facilitates better cash flow, and enhances the global competitiveness of Sri Lankan products.

The recent webinar organised by the International Chamber of Commerce Sri Lanka (ICCSL) provided valuable insights into the TIEP system, a crucial provision aimed at enhancing Sri Lanka’s export competitiveness.

Led by Customs Additional Director General – Enforcement Cluster Wijeratne Bandara and Customs Director – Industries and Services R.H.R.W. Kamalsiri, the session helped exporters understand how they can benefit from the TIEP system to reduce costs and boost efficiency. ICCSL Chairman Shanil Fernando hosted the webinar as the keynote speaker while ICCSL Research, Knowledge Mobilisation and Taxation Committee Chair Dr. Nadee Dissanayake joined as the moderator. The event was covered by DailyFT.

Key takeaways:

Eligibility and procedures: Exporters must ensure that imported goods are used for the production of export goods and will be re-exported. The process requires submitting a Temporary Import Declaration (TID) to Sri Lanka Customs, outlining the goods, their intended use, and the re-export timeline.
Customs and compliance: Both resource persons stressed the importance of compliance with TIEP regulations. Exporters must maintain accurate records and adhere to the timeline to avoid penalties. Sri Lanka Customs is working to simplify the procedure through digitisation.

n Benefits of TIEP:

Duty exemptions: No customs duties on temporary imports.

Improved cash flow: Businesses can save capital for reinvestment.

Enhanced competitiveness: Reduced production costs allow businesses to offer competitive pricing in international markets.

Challenges:

Exporters raised concerns about the complexity of documentation and the time required for customs clearance. The panel reassured participants that the system is continually evolving for easier access.

During the interactive Q&A session, key questions included:

Duration of temporary imports: Typically, goods can stay for 6-12 months, depending on processing needs, with possible extensions.
Penalties for non-compliance: Exporters must adhere to timelines; failing to re-export goods can result in penalties and duty charges.

Also, the survey results showed that:

95% of participants found the content useful and applicable.
90% were satisfied with the clarity of the presentations and explanations.

The webinar provided essential guidance on leveraging the TIEP system to reduce costs and enhance export potential. With simplified processes and clear compliance guidelines, exporters can take full advantage of the system to stay competitive in the global market. The ICCSL is planning further webinars on related topics, helping businesses gain deeper insights into Customs procedures and export facilitation.