1. CUSTOMS INVESTOR FACILITATION CENTER
INFAC SCHEME
THE SCHEME OFFERRED BY
CUSTOMS INVESTOR FACILITATION CENTER
Thilak Arumapperuma Arachchi
Superintendent of Customs
Export Facilitation Unit
Industries and Services Directorate
Sri Lanka Customs

2. OBJECTIVE
Implementation of import duty concessions announced in the Budget speech for 1998 (Gazette Extraordinary No. 1000/11 of 05/11/1997) by the Ministry of Industrial Development
For the facilitation of textile and garment industry
By providing import duty concessions for
Project related machinery, equipment, parts
Inputs including raw materials and accessories
Packaging materials
Subject to conditions laid down by the Secretary to the Treasury

3. FOR WHOM? Registered Manufacturers cum Exporters
Registered exporters who uses imports to manufactures for export by a registered manufacturer
Registered textile fabric/yarn/thread manufacturers/processors
Providers of services such as washing plants, embroidery services, screen printing
A Manufacturer in the Scheme is not entitled to operate under Customs Duty Rebate, Manufacture-in- Bond or any other such scheme in respect of an identical product

4. INFAC PROCEDURE
The import duties payable are suspended at importation on Bank/Personal guarantee being furnished
VAT is differed at import and the same is settled against exports on VAT Credit Vouchers issued by the Department of Inland Revenue.

5. APPLICATION FOR REGISTRATION
An application shall be made to the Director General of Customs
Applicant is required to justify the need for registration under the scheme giving particulars:
About the applicant
Nature of business
Kinds of inputs intended of import for manufacture of the export product(s)
With documents in support of the same

6. DOCUMENTS REQUIRED Project Report Business Registration Certificate
TIN & VAT Certificates from the IRD
EDB Registration Certificate
NIC & Passports of Signatory holders of CDP-1
Project approval from the SME & Apparel Export Division of the Ministry of Industry and Commerce, with warehouse code
Application for registration under Customs Deferred Payment (CDP-1) – in triplicate {VAT Act No. 14 of 2002}
Power of Attorney (CDP-2) – in duplicate
Company Guarantee (CDP-3) – (value > VAT for 6 month imports)

7. CONDITIONS OF APPROVAL (MIC)
Confinement to the approved product
Subject to approval from CEA
Machinery to be new and modern
Agreed annual production capacity
Effective steps to use local materials
All records on import/export to be maintained
Summary of Export Declarations to MIC every month
Subcontracting allowed with other INFAC/BOI operators
Transfers on GRN
Local disposal of rejects on approval of MIC and duty payable
Progress report to MIC whenever required

8. NEW APPROVAL Verification by Customs The applicant shall
Premises where the processing will be carried out
Accounting procedures used
Obligations which must be fulfilled by the applicant
The applicant shall
Provide facilities for representatives of Director General o f Customs and/or Ministry of Industrial Development and/or Line Authority who may visit the factory or any other place of work or storage to ascertain the technical operations and/or obtain any information required by the Director General of Customs/Line Authority

9. GRANTING APPROVAL
If the application is acceptable to the Director General of Customs, a determination will be made as to the value of security required for the inputs to be imported (BG/PG)
The application is then registered, with a Customs Registration number
Approval is valid for one year

10. RENEWAL OF AN APPROVAL Renewal at the end of the year
Process and stock verifications
Performance verifications

11. ENTRY OF RAW MATERIALS Import Declaration (CUSDEC)
Authenticated by Director/ Partner/ Proprietor/ any other persons duly authorized for the purpose and whose name and specimen signature are furnished

12. PROHIBITIONS AND RESTRICTIONS
Imports subject to the prohibitions and restrictions
Operators must ensure that necessary import licenses, approvals and permits are obtained prior to arrival of the goods (inputs)

13. ENTRY ON IMPORT CUSDEC Relevant Customs Office Code
CBIF1 – Customs INFAC Office
Relevant Customs Procedure Code
7700 IMD: Direct import of raw materials VAT differed
7700 IMU: Direct import of raw materials VAT paid upfront …
Relevant Warehouse Reference Code
XXXXXXXXX – E.g. For exporter ABC
Authenticated by Director/ Partner/ Proprietor/ any other persons duly authorized for the purpose and whose name and specimen signature are furnished

14. DISCHARGE OF GOODS Export Declaration (CUSDEC)
Goods Transfer Note (GRN)
Authenticated by Director/ Partner/ Proprietor/ any other persons duly authorized for the purpose and whose name and specimen signature are furnished

15. DISCHARGE ON EXPORT CUSDEC
Relevant Customs Office Code
CBIF1 – Customs INFAC office
Relevant Customs Procedure Code
3277 INF: Re-Export under INFAC scheme
Relevant Warehouse Reference Code
XXXXXXXXX – E.g. For exporter ABC
Authenticated by Director/ Partner/ Proprietor/ any other persons duly authorized for the purpose and whose name and specimen signature are furnished

16. TRANSFER BETWEEN OPERATORS
Transfer of semi-processed, processed or finished goods between authorized operators under Inward Processing Schemes
Liability transfers from issuer to receiver
An Indirect Export for the issuer
An Import for the receiver
Goods Received Note (GRN) prescribed form
Receiver to certify the receipt on the form
Payment in LKR (NON BOI) or in USD (BOI)

17. RELEASE FOR HOME USE Only on prior approval from the MIC
Customs Duty and levies are payable

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