16. Granting exemption to certain enterprises from application of the provisions of Chapter 235

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

(1)

Subject to the provisions of subsections (2) and (3), there shall be exempted from the application of the provisions of the Customs Ordinance (Chapter 235), any enterprise engaged in any one or more of the following businesses within the meaning of an agreement entered into with the Board of Investment of Sri Lanka, established under the Board of Investment of Sri Lanka Law, No. 4 of 1978: -

(a)

entrepot trade in involving import, minor processing and re-export;

(b)

off-shore business where goods can be procured from one country or manufactured in one country and shipped to another country without bringing the same into Sri Lanka;

(c)

providing front end services to clients abroad;

(d)

head quarters operations of leading buyers for management of finance supply chain and billing operations;

(e)

logistic services such as bonded warehouse or multi-country consolidation in Sri Lanka.

(2)

Any enterprise referred to in subsection (1) which is engaged in the physical importation of goods, wares or merchandise for re-export–

(a)

shall carry out such activities either in a Free Port operated under the supervision of the Sri Lanka

Ports Authority established under the Sri Lanka Ports

Authority Law, No. 51 of 1979 or a Bonded Area declared under the Board of Investment of Sri Lanka

Law, No. 4 of 1978 or the Customs Ordinance

(Chapter 235) ;

(b)

the movement of goods to and from such Free Port or the Bonded Area to and from the Sri Lankan territory shall, notwithstanding the provisions of subsection (1) be subject to the provisions of the

Customs Ordinance, as if such goods had been imported into Sri Lanka or exported from Sri Lanka as the case may be.

(3)

Any enterprise referred to in subsection (1) which is not engaged in the physical movement of goods, wares or merchandise, may carry out such operations outside a Free

Port or a Bonded Area as referred to above.

Read on from s 17