Import Regulations in Sri Lanka for Japan Used Cars

Restrictions imposed on the age of vehicles:

• Cars: Max. 2 years old
• Vans and dual-purpose vehicles: Max. 5 years old
• Buses, jeeps, motor cars, ambulances, motorbikes, and all-terrain vehicles: Max. 3 years old
• Cabs(single and double), trucks and lorries, and refrigerated trucks: Max. 4 years old

• 5% to 35% duty will be imposed.
• 25% tax will be levied on motor vehicles.
• 12% VAT will be charged.
• 5% of the CIF value of the vehicle will be charged as Ports and Airport Levy(PAL). In some cases, PAL may be charged at 0-2.5% of the CIF value of the vehicle.
• 1% to 45% of the CIF value will be charged as ad valorem tax,
• 2% of the cumulative of the (CIF value x 110%), cess, customs duty, and PAL will be charged as Nation Building Tax.

CALCULATION OF CUSTOMS DUTIES

For vehicles categorized under HS headings 8702, 8703, 8704,8705, and 8711, the value is calculated on the basis of two cases:

• In the case of a brand new vehicle, the calculation is done on the transacted value.
• In case other used vehicles, the value will be calculated on no less than 85% of the manufacturer’s value of a similar brand new vehicle. The local taxes will be excluded during the calculation.

Values for other vehicles will be calculated as per the Articles of the WTO agreement.

If the vehicle has been imported on concessionary permits:

• The importer must hold a Concessionary permit.
• The value of the vehicle must be in a permitted limit in terms of regulations when the Letter of Credit is granted.
• Other necessary conditions should be fulfilled by the importer.

• Registration certificate (original, translated in English)
• Passport
• Insurance certificate
• Customs Goods Declaration
• Bill of Lading (original)
• Approval from the Transport Ministry
• Import license
• Letter of Credit
• Delivery Order (to be issued by the shipping agent)
• Export Certificate
• Airway bill (if applicable)
• Value Declaration Form
• Certificate of pre-shipment inspection
• Purchase invoice

If the vehicle has to be imported by a Sri Lankan citizen who is employed abroad

The vehicle to be imported must be under the age limit. In the case of the vehicles exceeding the age limit, the importer should get a permit granted by the Controller of Imports and Exports.

The importer should get clearance before the importation of the vehicle from the Controller General of Imports and Exports in case of the No Foreign Exchange Involved.

PROCEDURE FOR CUSTOMS CLEARANCE:

• All the relevant documents must be submitted to the Customs and the clearance formalities with the Customs House Agent must be fulfilled.
• If motor bicycles are being imported as personal belonging, then involvement of the Customs House Agent is not required. Clearance can be done by the passenger.
• The used Japanese vehicle has to be verified by the Customs for its authenticity. For this process, the customer has to request the ICT Directorate with all the necessary details.

Motor bicycles with less than 350 cc engine capacity are allowed for duty-free clearance depending upon the value of the vehicle. The value of the vehicle must be under the threshold of duty-free allowance. Customs duty has to be paid correspondingly if the value of the vehicle is more than the limit of the duty-free allowance.