Gazette to establish bonded warehouses

Monday, 22 October 2018 00:22 - - {{hitsCtrl.values.hits}}

Fin. Min. issues gazette for bonded warehouses by private sector
Regulation applicable from 1 Oct.
Customs to issue licences for Rs. 500,000 per year

The Government has decided to give permission for the private sector to establish bonded warehouses, the Finance Ministry said in a statement yesterday.

Finance Minister Mangala Samaraweera signed the necessary Gazette notification enabling the change from 1 October to allow LCL Cargo to be held, exported and even transhipped under the new regulations. Sri Lanka Customs will release the licences at a cost of Rs. 500,000 per year.

Bonded warehouses can also be maintained by pharmaceutical manufacturers and the dairy and waste management industries, the Ministry said in a statement.

A bonded warehouse is a Customs-controlled warehouse for the retention of imported goods until the duty owed is paid. In May, Finance Minister Mangala Samaraweera presented a Cabinet paper to implement the proposal outlined in Budget 2018.

Under the Budget proposal, it was proposed to give tax relief for capital investment imports made by these industries and to establish bonded warehouses to reduce time lapses in getting Customs release for the necessary materials.