History and Functions of Sri Lanka Customs

Questions and Answers

What was one of the main functions of Sri Lanka Customs regarding the control of goods?

To ensure the speedy delivery of all shipments

To provide shipping insurance for local businesses

To collect tariffs only on exported goods

To control prohibited and restricted goods carrying in to/out of the country (correct)

Which Act is specifically related to the imposition of VAT by Sri Lanka Customs?

Customs Ordinance Act of 1869

SSCL Act No 25 of 2022

VAT Act No 14 of 2002 (correct)

Fauna & Flora Protection Ordinance

What document must the ship's master deliver according to Section 29?

Export Declaration

Manifest (correct)

Delivery Note

Bill of Lading

What is the role of the ship’s agent concerning the Customs Ordinance as per Section 114?

To act on behalf of the Master with approval Signup and view all the answers

Which of the following is NOT a component of the main functions of Sri Lanka Customs?

To ensure all goods are delivered promptly Signup and view all the answers

What must the Master of every ship do within 24 hours of arrival at a port in Sri Lanka?

Report to Customs and provide cargo details Signup and view all the answers

What is the penalty for the Master of a ship arriving without clearance at a port in Sri Lanka?

Rs. 25,000 Signup and view all the answers

What should happen before any goods can be un-laden from a ship according to Section 34?

Sufferance must be granted by the DGC Signup and view all the answers

According to Section 30, what right do Customs officers have regarding ships arriving in Sri Lanka?

To board and remain on board until goods are delivered Signup and view all the answers

What is required concerning Long Transit Cargo according to the recent amendment?

Must be reported to Customs not later than 72 hours Signup and view all the answers

What must the Master provide alongside the report to Customs according to Section 29?

The manifest and possibly the Bills of Lading Signup and view all the answers

According to Section 31, what obligation does the Master have regarding Customs officers stationed on board?

Provide suitable shelter and accommodation Signup and view all the answers

What does Section 28 state about Short Transit Cargo reporting?

Requires immediate reporting upon departure from the last port Signup and view all the answers

Study Notes

History of Sri Lanka Customs

2nd Century: Reference to customs practices in the 'GODAVAYA' Stone Inscription.
1809: Establishment of the first Commissioner of Customs in Sri Lanka.
1869: Formal enactment of the Customs Ordinance, establishing a regulatory framework.

Main Functions of Sri Lanka Customs

Primary role in collecting various import taxes, including Customs Duty, VAT, PAL, SSCL, Excise (SP) Duty, and Cess.
Responsible for controlling the entry and exit of prohibited and restricted goods into/out of the country.
Engages in investigating offenses related to customs regulations and relevant revenue laws.
Conducts inquiries under the Customs Ordinance and associated laws.

Key tax laws include:
- VAT Act No 14 of 2002
- PAL Act No 18 of 2011
- SSCL Act No 25 of 2022
Social protection laws relevant to customs practices include:
- Fauna & Flora Protection Ordinance
- Antiquities Ordinance

Recognition and Authority of Ship’s Agents

Section 114 allows ship’s agents to perform certain customs-related tasks upon consent from the ship's Master, with approval from the Deputy Director General Customs (DGC).

Customs Power over Ships and Cargo

Section 27 mandates that customs officers have full cognizance of all ships entering ports in Sri Lanka.
Section 28 requires the Master of every ship to report to Customs within 24 hours of arrival, detailing cargo.
- Recent amendments stipulate long transit cargo reports must occur within 72 hours and short transit cargo must be reported immediately upon departure from the last port.
Section 29 mandates delivery of the cargo manifest by the Master to the DGC when reporting.
Section 30 grants customs officers the right to board ships and remain on board until goods are delivered.
Section 31 allows customs officers to be stationed on board ships, with masters required to provide suitable accommodation.
Section 32 imposes a penalty of up to Rs. 25,000 for ships arriving without necessary clearance or papers.
Section 34 prohibits unlading of goods unless a sufferance is granted by the DGC, ensuring compliance with customs regulations.

Description

Explore the rich history and essential functions of Sri Lanka Customs, from its early references in the 2nd century to the establishment of key legal frameworks. This quiz covers import taxes, regulation of goods, and investigation of customs offenses, providing a comprehensive overview of customs practices in Sri Lanka.