How to Import Goods from China to Sri Lanka?
As Sri Lankan businesses seek to broaden their market reach and diversify their product lines, China has become an increasingly attractive source of imports.
To ensure a smooth import process from China to Sri Lanka, it’s essential to understand the relevant import and export requirements and regulations in both countries. This guide will outline the key steps and considerations for importing goods from China to Sri Lanka, ensuring a seamless shipping process from start to finish.
Table of Contents
Customs Regulations for Importing Goods from China to Sri Lanka
1. Timely and Accurate Payment of Duties and Taxes
China’s export duties, taxes, and fees can vary based on the type of goods and their destination. Some goods might be subject to value-added tax (VAT) or consumption tax, while others may incur specific export duties. Although Sri Lanka and China do not currently have a bilateral free trade agreement (FTA), both countries are part of the Asia-Pacific Trade Agreement (APTA), which could offer reduced or eliminated duties for certain goods. Stay updated on these categories to optimize import costs and trade benefits.
2. Accurate Submission of Export Documentation
Proper documentation is critical for a successful import process. Key documents required include:
- Commercial Invoice: Details about the goods, their value, and sale terms.
- Packing List: An itemized list of package contents, including weights and dimensions.
- Customs Declaration: A comprehensive statement of the goods being exported, including classification and value.
- Bill of Lading (B/L): A legal document from the carrier acknowledging receipt of goods for shipment.
Accurate documentation is crucial to avoid customs delays and additional costs, and to prevent potential disruptions to your supply chain.
3. No De Minimis Threshold for Imports
Sri Lanka does not offer de minimis exemptions for imports, meaning all categories of imports from China are subject to customs duties, taxes, and VAT. Stay informed about any regulatory changes that might affect your imports.
4. Adherence to Restricted and Prohibited Items Regulations
Both China and Sri Lanka have lists of restricted and prohibited items. Importers must ensure they are not shipping restricted or banned items to avoid severe consequences such as delays, fines, or legal action. For instance:
- China: Restrictions include gold, silver, cultural artifacts, items made from endangered species, and certain technologies.
- Sri Lanka: As of October 2023, import restrictions have been lifted on all items except vehicles.
Always verify the most current lists of restricted items to ensure compliance.
5. Proper Packaging and Labelling
Ensure your goods are packaged and labelled according to both Chinese and Sri Lankan regulations:
- Product-Specific Packaging: Tailor packaging to protect products during transit. Fragile items may need additional cushioning, while bulk products might require palletisation.
- Durability: Use high-quality materials to withstand handling and environmental conditions.
- Customs Compliance: Follow packaging and labelling standards, including information like country of origin and contents.
- Sustainability: Consider eco-friendly packaging options to align with environmental trends and enhance your brand’s reputation.
- Language Compliance: While English is widely understood, including translations in Sinhala or Tamil can facilitate smoother processing in Sri Lanka.
- Industry-Specific Compliance: Ensure labels meet specific regulatory requirements, such as nutritional information for food products.
How to Import from China to Sri Lanka?
Importing goods from China to Sri Lanka involves a series of steps, from identifying suppliers and negotiating prices to arranging shipping and customs clearance.
Here’s a general overview of the process:
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Check the Certificates.
For example, the European Union requires electronic products to obtain CE and RoHs certification, battery products require MSDS, and the Indian government requires products such as chargers to obtain BIS certification.
What is the role of HS codes?
Understanding the role of HS Codes is a crucial part of becoming an importer or an exporter. HS (Harmonized System) codes are unique, internationally recognized 8-digit codes maintained by the World Customs Organization (WCO). You will come across HS codes often, especially during international trade processes, such as making declarations, paying customs duties and tariffs, and following import and export license requirements.
The main use of HS Codes is to provide a standardized way for customs agencies to quickly identify various products being imported and exported.
To find the HS code for the types of goods you want to import or export, you can use the Sri Lanka HS Code Finder created by Sri Lanka Customs.
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Find a Supplier.
Conduct thorough research to find reliable and reputable suppliers in China who specialize in the products you want to import. Check their credentials, reviews, and track record to ensure they can meet your quality and delivery requirements.
What are the goods you can import from China to Sri Lanka?
Once you register as an importer with Sri Lanka Customs, you’ll be able to import many items without any additional requirements. However, there are certain goods for which you will require an import license or will only be able to import temporarily.
To check if the items you want to import requires an import license or are importable only under temporary conditions, enter the item’s HS code into the Commodity Search page on the Sri Lanka trade information website.
- Negotiate Prices and Terms:
Once you’ve identified potential suppliers, start negotiating prices and terms of the agreement. This includes factors like unit prices, minimum order quantities (MOQs), payment terms, shipping costs, and delivery timelines.
Inconsistent pricing: The pricing of goods from China can be volatile and unpredictable, due to factors such as currency fluctuations, production costs, and supplier competition. Importers should carefully negotiate prices with suppliers and factor in potential price fluctuations when budgeting for their imports.
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Obtain Import License (Sri Lanka):
If required by Sri Lanka’s import regulations, obtain the necessary import license. The specific requirements and procedures may vary depending on the type of goods you’re importing.
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Secure INCOTERMS:
Agree on the INCOTERMS (International Commercial Terms), which define the responsibilities of the buyer and seller in terms of shipping, insurance, and delivery. Common INCOTERMS for import from China include FOB (Free on Board) and CIF (Cost, Insurance, and Freight).
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Prepare Shipping Documents:
Gather all necessary shipping documents, such as the commercial invoice, packing list, Bill of Lading (BL), and any other required certifications or permits. Ensure the documents are accurate and in compliance with Sri Lankan customs regulations.
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Arrange Shipping:
Choose a reliable freight forwarder to handle the shipping process from China to Sri Lanka. They will manage customs clearance, port and terminal handling, trucking, and other logistics.
Logistics challenges: Shipping goods from China to Sri Lanka can be complex and involve multiple modes of transportation, such as sea freight, air freight, and trucking. Importers need to carefully plan the logistics of their shipments, considering factors such as lead times, transit costs, and potential delays.
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Clear Customs in Sri Lanka:
Once your shipment arrives in Sri Lanka, it will undergo customs clearance procedures. The importer or their representative will need to present the required documents and pay any applicable duties and taxes.
Customs clearance delays: Customs clearance can be a lengthy and complex process, especially for goods that require specific permits or certifications. Importers may experience delays due to incomplete or inaccurate documentation, insufficient information about the goods, or backlogs at customs.
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Inspect and Receive Goods:
Upon clearance, inspect the goods to ensure they meet the agreed-upon specifications and quality standards. If any discrepancies are found, address them with the supplier.
Quality control issues: Importers should carefully inspect imported goods upon arrival to ensure they meet the agreed-upon quality standards. However, it is not uncommon to encounter discrepancies between the samples provided by the supplier and the actual goods received. This can lead to disputes, return shipments, and financial losses.
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Organize Distribution and Sales:
Once the goods are in your possession, arrange for distribution or sales to your target market in Sri Lanka. This may involve establishing your own distribution network or partnering with local retailers or distributors.
Selecting the Right Logistics and Shipping Methods
Choosing the appropriate logistics and shipping methods is vital for ensuring your goods arrive safely and on time. Consider the following:
- Shipping Methods: Depending on the type, quantity, and urgency of the goods, choose between sea freight, air freight, or land transport. Sea freight is ideal for bulk shipments, while air freight is suitable for urgent items.
- Logistics Partners: Select experienced and reputable logistics service providers who are familiar with the import/export regulations of both countries.
- Insurance: Purchase adequate insurance coverage for your goods to protect against potential losses during transit.
Understanding Exchange Rates and Payment Methods
International trade involves dealing with different currencies, so understanding exchange rates and choosing the right payment methods is essential:
- Exchange Rate Fluctuations: Monitor the exchange rate between the Chinese Yuan and the Sri Lankan Rupee to make transactions at the most favorable times.
- Payment Methods: Use secure and reliable payment methods such as Letters of Credit (L/C), Telegraphic Transfers (T/T), etc., to ensure the safety of your funds and smooth transactions.
Import from China to Sri Lanka with Import Agent.
If you do not have an import license and are not familiar with the import goods from China to Sri Lanka process, then we can help you import from China to Sri Lanka in our name (mainly through Shanghai/Ningbo Port), clear the goods on our behalf, and let you pick up the goods after the container arrives at our yard.
Everything is done in our name. You don’t have to worry about anything. As a sourcing company, we already have a handful of other customers who are not in the import business and import through us.
Useful Resources and Links
- Sri Lanka Customs
- Department of Commerce Sri Lanka
- Sri Lanka Export Development Board
- Central Bank of Sri Lanka
- Asia-Pacific Trade Agreement (APTA)
Is that mean you will collect payment from the purchaser in Sri Lanka and then pay it to the seller in China in USD/RMB? The only thing i concern is the payment.
yes, most of our customers let us do this. you can tell us more details here: https://www.supplyia.com/our-services/start-product-sourcing/
Hello.. I want to import some items to Sri Lanka
Hi, you can tell us your specific requirements support@supplyia.com