Sri Lanka – Customs and Import duty tax calculation method

Customs Duties or Import duty and taxes will be pending and need to be cleared while importing goods into SriLanka Either by a private individual or a commercial entity.

The valuation method is CIF.

  • The import duty and taxes payable are calculated on the complete shipping value, which includes the cost of the imported goods, the cost of freight and the cost of insurance.
  • Along with Import duty, import goods are also subject to Sales Tax, Import Cess, Ports and Airport Levy (PAL), and Excise in some cases.

Below is the Duty and Sales tax for SriLanka :

Duty Rates Average Duty Rate Sales Tax(GST) Threshold on goods
Varying range Varies 15% No minimum threshold(All the goods are duty and taxes payable irrespective of import value)

Extra taxes and customs fees while importing:

Type of Tax Products Rates
Import Cess Specified products 1% to 45%
Ports and Airport Levy All 0% to 5%
Excise Duty Specified products 12% to 173%
Surcharge All 15% to 100%
Social Responsibility Levy All 1.5%
NBT All 2%

Please find the lists and detailed information about other taxes here.

NOTE:

  • Excise duties and special excise levies are charged on tobacco, cigarettes, liquor, motor vehicles, selected petroleum products, paints, air conditioners, dishwashers, household washing machines, and other products at various rates and at unit rates.
  • Import cess is charged on Meat of swine, fresh, chilled or frozen, Foliage, branches and other parts of plants, without flowers or
    flower buds, and grasses, mosses and lichens, being goods of a kind suitable for bouquets or for ornamental purposes, fresh, dried, dyed,
    bleached, impregnated or otherwise prepared.
  • Sales trax is applied on the sum of the CIF value, applicable duty, PAL and Import Cess.
  • As there is no threshold, all duties and taxes are payable irrespective of import values.
  • Import Cess is based on units of measure like weight or quantity and it is specific(ad valorem). It is calculated on the CIF value.
  • Ports and Airport Levy is calculated based on CIF value while Excise is based on units of measure and calculated on the sum of the CIF value, applicable duty, PAL and Import Cess.
  • Social Responsibility Levy is based on the sum of duty, surcharge and excise and NBT is applicable if CIF value exceeds Rs.650,000 per quarter.