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Sri Lanka: Customs proposals in 2019 budget

Sri Lanka: Customs proposals in 2019 budget

The budget proposals for 2019, as presented in Parliament in March 2019, include trade and customs measures.


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As proposed, the Department of Customs is to launch an Authorized Economic Operators (AEO) program to provide expedited clearance from identified "low risk" traders and clearing agents.

Concerning import-export duties and levies, the budget proposes the following changes relating to the "port and airport development levy" with respect to:

  • Imports of machinery used in lapidaries would not be subject to the levy, and the rate of the port and airport development levy would be reduced from 7.5% to 2.5% on uncut gems.
  • Sales of excursion vessels and yachts manufactured by certain companies for charter services would not be subject to the levy.
  • Imports of alfalfa meal and pellets for the livestock industry would not be subject to the levy.
  • Goods imported for project construction or implementation would be exempt when the investment is over U.S. $50 million.
  • The rate of the levy would be reduced from 7.5% to 2.5% for certain high tech plant and machinery and equipment.

Read a March 2019 report [PDF 3 MB] prepared by the KPMG member firm in Sri Lanka

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