Import controlled commodities
- Document symbol
- G/LIC/N/3/LKA/2
- Original language
- English
- Published on
- 19/02/2014
Outline of Systems
Q1. Give a brief description of each licensing system as a whole and, with respect to each, reply to the following questions as relevant, placing all of the material with respect to a given system in sequence together, and using cross references as appropriate when elements which have already been described are also present in another system.
Import and Export Licensing System is regulated by the Import and Export (Control) Act No. 1 of 1969 and two subsequent amendments and regulations published under the aforesaid Act as Extra Ordinary Gazette Notifications with the objective of providing safety to economy, environment, public health and public security.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
Import controlled commodities are listed in Schedule I of the Gazette (Extraordinary) No 1813/14 of 5th June 2013 which was amended introducing new HS Codes with effect from 22nd November 2013.
Please refer to the revised list of products published in the Gazette Extraordinary of the Democratic Socialist Republic of Sri Lanka No.1837/41 dated 21 November 2013.
Q3. The system applies to goods originating in and coming from which countries?
The system applies to goods originating and coming from all countries.
Q4. Is the licensing intended to restrict the quantity or value of imports, and if not, what are its purposes? Have alternative methods of accomplishing the purposes been considered and if so which? Why have they not been adopted?
Automatic import licensing is not practiced in Sri Lanka. Non-automatic import licensing is primarily for the purpose of safeguarding environmental, public security and public health interests.
Q5. Cite the law, regulation and/or administrative order under which the licensing is maintained. Is the licensing statutorily required? Does the legislation leave designation of products to be subjected to licensing to administrative discretion? Is it possible for the government (or the executive branch) to abolish the system without legislative approval?
Is the licensing statutorily required?
The licensing is a statutory requirement. Gazette Extraordinary of the Democratic Socialist Republic of Sri Lanka No.1837/41 dated 21 November 2013.
Does the legislation leave designation of products to be subject to licensing to administrative discretion?
The Authority exists to suspend the system, whenever it is determined that such action is appropriate. Notice of such action is published though the Government Gazette notifications.
Procedures
Q6. For products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally):
Q6.I. Is information published, and where, concerning allocation of quotas and formalities of filing applications for licences? If not, how is it brought to the attention of possible importers? Of governments and export promotion bodies of exporting countries and their trade representatives? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
Q6.II. How is the size of the quotas determined: on a yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for fresh licence on a six-monthly or quarterly basis?
Q6.III. Are licences allotted for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are the names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate.)
Q6.IV. From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
Q6.V. What are the minimum and maximum lengths of time for processing applications?
Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
Q6.VII. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Q6.VIII. If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and, if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
Q6.IX. In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
Q6.X. In cases where imports are allowed on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?
Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
Q7. Where there is no quantitative limit on importation of a product or on imports from a particular country:
Q7.a. How far in advance of importation must application for a licence be made? Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence (for example, owing to inadvertency)?
How far in advance of importation must application for a licence be made?
Application for a license must be made at least one week in advance of importation.
Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence
Licences can be obtained within a shorter time limit or for goods arriving at the port without a license.
Q7.b. Can a licence be granted immediately on request?
Licenses are issued in 7 days, provided all conditions have been satisfied and documents are complete.
Q7.c. Are there any limitations as to the period of the year during which application for licence and/or importation may be made? If so, explain.
There are no limitations as to the period of the year during which application for licence and/or importation may be made.
Q7.d. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
In connection with an application, an importer has to approach only one administrative organ, namely, the Import and Export Control Department.
Q8. Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria? Are the reasons for any refusal given to the applicant? Have applicants a right of appeal in the event of refusal to issue a licence and, if so, to what bodies and under what procedures?
Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria?
None.
Are the reasons for any refusal given to applicants?
The reason for any refusal is given to applicant in writing.
Have applicants a right of appeal in the event of refusal to issue a licence?
In the event of refusal to issue a license, the applicant has a right of appeal.
If so, to what bodies and under what procedures?
Ministry concerned
Eligibility of Importers to Apply for Licence
Q9. Are all persons, firms and institutions eligible to apply for licences: (If not, is there a system of registration of persons or firms permitted to engage in importation? What persons or firms are eligible? Is there a registration fee? Is there a published list of authorized importers?) a) under restrictive licensing systems? b) under non-restrictive systems?
Following persons or classes of persons are eligible to import goods under the regulations of Import and Export Control Act (Schedule II of the Gazette (Extra Ordinary) No. 1739/3 on 02.01.2012).
i. An individual, or an individual trading, in his own name or under a business name;
ii. A firm partnership or other entity which shall be registered in Sri Lanka;
iii. Public companies and private companies which are incorporated in Sri Lanka under the Company Act No. 7 of 2007;
iv. Non-nationals who has a valid visa to reside in Sri Lanka.
Documentational and Other Requirements for Application for Licence
Q10. What information is required in applications? Submit a sample form. What documents is the importer required to supply with the application?
Following documents should be submitted with a duly completed application. (Application forms can be downloaded from the "Downloads" of the Department’s website http://www.imexport.gov.lk.
i. Proforma invoice;
ii. Business Registration Certificate or National Identity Card (in first application);
iii. Duly filled indent form (Application).
In addition to the above documents, importers of the following commodities/products will have to produce a letter of recommendation from the respective authority.
| Type of Commodity | Recommendation Authority |
|---|---|
| Western drugs | National Medicines Regulatory Authority |
| Ayurvedic drugs | Commissioner of Ayurveda |
| Homeopathy drugs | Homeopathy Council |
| Pesticides | Registrar of Pesticides |
| Veterinary drugs | Veterinary Drugs Authority |
| Animal products | Director/Animal Production and Health |
| Arms, ammunitions, explosives | Ministry of Defense |
| Radioactive materials | Atomic Energy Authority |
| Petroleum products | Ministry of Petroleum Resources Development |
| Used refrigerators and air conditioners | Ministry of Environment |
| Telecommunication equipment | Telecommunication Regulatory Commission, Ministry of Defense |
| Chemicals under the Montreal Protocol | National Ozone Unit, Ministry of Environment |
| Chemicals under the Basel Convention | Central Environmental Authority |
| Chemicals under the Stockholm Convention | Ministry of Environment |
| Chemicals under the Chemical Weapons Convention | Ministry of Industries and Commerce |
| Tea | Tea Board |
Q11. What documents are required upon actual importation?
Upon actual importation, an importer is required to submit the approved import license or a copy thereof.
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
Based on the product(s) to be imported, a license fee is applicable for processing the applications.
Q13. Is there any deposit or advance payment requirement associated with the issue of licences? If so, state the amount or rate, whether it is refundable, the period of retention and the purpose of the requirement.
There is no deposit or advance payment requirement associated with the issuance of licenses.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
Validity period of licenses vary with the commodities. Blanket licenses are also being issued for some selected commodities such as certain drugs and some petroleum products. The number of extensions will depend on the justification provided by importers. Validity period of the licenses can be extended three times only and is subject to a maximum period of one year.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
There is no penalty for the non-utilization of a license or a portion of it.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
Licenses are not transferable between importers.
Q17. Are any other conditions attached to the issue of a licence? a) for products subject to quantitative restriction? b) for products not subject to quantitative restriction?
The following conditions are attached to the issuance of a license.
- Validity period;
- Certificate of country of origin;
- Free trade sample- should be limited to 10 percent of the trade stock.
- Analysis report from the manufacturer is specially requested for Western drugs. This report should provide information on composition and ingredients, strength of packing, date of manufacturing and expiry, side effects etc.;
- Special conditions may apply depending on the commodity.
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
There are no other administrative procedures apart from import licensing required prior to importation.
Q19. Is foreign exchange automatically provided by the banking authorities for goods to be imported? Is a licence required as a condition to obtaining foreign exchange? Is foreign exchange always available to cover licences issued? What formalities must be fulfilled for obtaining the foreign exchange?
Is foreign exchange automatically provided by the banking authorities for goods to be imported?
Foreign exchange is automatically provided by the banking authorities for goods to be imported.
Is a licence required as a condition to obtaining foreign exchange?
After acceptance of obligations under Article VIII of the IMF Agreement, foreign exchange for payment for importation of goods and services is permitted without any restriction. At present, only a very limited number of items are under the requirement of an import license.
What formalities must be fulfilled for obtaining the foreign exchange?
Foreign exchange for import of goods and services can be obtained from any commercial bank (an
authorized dealer in foreign exchange) subject to payment terms, stipulated in related government
gazettes.