-Selecting a supplier of textiles (fabric) is usually based on the ultimate (end) buyer’s nomination. Based on this nomination, the importer contacts the supplier, after which the supplier quotes the terms of reference (TOR) and prices
For Board of Investment Members 1.If the importer agrees with prices and TOR, the supplier raises a Proforma Invoice and sends it to the importer via email. 2.The importer then prepares a Purchase Order and sends it to the exporter. Payment related steps are carried out henceforth by opening an L/C. 3.If the importer does not agree with the quoted prices and TOR, then re-negotiations take place between the ultimate buyer, the importer and the supplier until all three reach a settlement. For Non-Board of Investment Members 1.For non-BOI importers, the process is different. Once a buyer confirms a product, Product A, for example, the buyer sends a sample of Product A to a lab in Sri Lanka to get all the technical information. The samples, together with the technical information, are sent by courier to the fabric manufacturer to match the sample. 2.The fabric manufacturer then sends the relevant fabric to a local lab in India to test whether the specifications match. 3.The test report, together with the sample, is sent to Sri Lanka and the sample is again sent to a Sri Lankan laboratory to get technical confirmation. 3.The reports and the samples are then sent to the buyer who placed the order, in order to confirm that they can go ahead buying the textile. 4.After this, they request from the Indian supplier between 10 and 15 metres of the fabric, and the supplier (exporter) makes a sample of Product A and sends it to a lab (in Sri Lanka) to be tested (wear test). 5.Then the Purchase Order is sent to the Indian counterpart, outlining all the technical requirements. 6. A copy of the PO is obtained from the supplier, for original signatures, and the documents are couriered. 7. Then the supplier sends a Proforma Invoice stating their requirements (payment conditions, etc.), which is signed and returned to the supplier. 8. Once an L/C is opened, the shipment is prepared.
-Receive documents from exporter
1. Two sets of documents are sent by the supplier from India: a) original set of documents to the bank, b) copy of the set of documents to the buyer. These documents include: 1) Commercial Invoice, 2) Packing list, 3) Bill of Lading, 4) Inspection Certificate (by the appointed body in India), 5) GSP certificate, 6) Insurance Certificate, and 7) Certificate of Origin. 2.If the documents comply with the requirements, then the payment is released when the documents are collected.
-Receive Documents from Exporter: Commercial Invoice, Bill of Landing, Packing List, Certificate or Origin
1. Collect the documents required for importing textiles : Two sets of documents are sent by the supplier from India: - original set of documents - copy of the set of documents to the buyer. These documents include: -Commercial Invoice -Packing list -Bill of Lading - Inspection Certificate (by the appointed body in India) -GSP certificate - Insurance Certificate -Certificate of Origin. If the documents comply with the requirements, then the payment is released when the documents are collected. 2.Obtain cargo insurance. If it is Free On Board (FOB) cargo, the BOI-approved importer applies for bulk insurance weekly with the number of containers. The Commercial Invoices as well as the CUSDECs have to be provided as supporting documents. The insurance company then prepares and issues the insurance policy, which is collected by the importer or is delivered by the insurance company to the importer. Insurance premium payments are paid monthly by the importer. If it is CIF, the supplier bears the insurance cost. For non-BOI companies, insurance cover is obtained on consignment basis by providing the Proforma Invoice. 3.Arrange transport After obtaining the DO from the Shipping Agent, the importer reserves a trailer by submitting a Booking Request and the DO. The inland hcompany acknowledges the booking request and issues a Release Order. The trailer is then sent to the port directly with the Gate Pass provided by the importer. The trailer driver gives the Gate Pass to the crane operator to get the container out of the vessel and loads it onto the trailer to deliver it to the clearance point at the BOI. Once the consignment is released, it is moved to the warehouse.
The CUSDEC is lodged through the EDI together with the supporting documents (CI, B/L and Packing List)
1. The Customs Department verifies submitted information and returns the CUSDEC to the importer with the CUSDEC Declaration Number. 2. In the meantime, the payment is reduced (electronically) from the Current Account the importer holds at the Customs Department. 3. The importer makes a printout of the CUSDEC and makes the relevant number of copies (six copies). 4. BOI-approved companies take the CUSDEC and copies to the clearance department of the BOI. 5. Non-BOI companies go to the Sri Lanka customs office with the same set of documents.
1. The BOI-approved importers provide a hard copy of the CUSDEC with the declaration number received from the electronic system to the customs office located at the BOI. The non-BOI importer provides the same documentation to the customs office in Colombo 2. The customs first issues an Assessment Note, which is a summary of the shipment information, payments that need to be made, etc 3. The importer then submits the other supporting documents, together with the CUSDEC, and customs verifies the documents and decides whether to select for verification/examination or not 4. If the consignment is selected for examination, the CUSDEC is returned to the importer with the “Panel Examination Required” seal on it 5. Once the importer submits the panel examination request form to customs and makes the payment, two customs officers examine the consignment and, if the declared goods tally with the packing list and the Commercial Invoice, the declaration is returned with a “Panel Examination Completed” seal on it
1. After obtaining the DO from the Shipping Agent, the importer reserves a trailer by submitting a Booking Request and the DO. 2. The inland hcompany acknowledges the booking request and issues a Release Order. 3. The trailer is then sent to the port directly with the Gate Pass provided by the importer. 4. The trailer driver gives the Gate Pass to the crane operator to get the container out of the vessel and loads it onto the trailer to deliver it to the clearance point at the BOI. 5. Once the consignment is released, it is moved to the warehouse.
Confirmation of purchase and receipt of the Proforma Invoice
1. Following the confirmation of purchase and receipt of the Proforma Invoice, the importer raises an L/C. The L/C has to be raised on or before the shipment date. 2. The importer needs to submit an L/C application form, which can be obtained from the bank. When raising the L/C, the Proforma Invoice is submitted as the supporting document. 3. Once the L/C is raised and sent to the supplier, the supplier prepares the documents that are required to be sent to the importer in order for the importer to clear the goods. 4. These documents are given to the supplier’s bank by the supplier. The bank verifies the documents and, if they meet the conditions in the L/C, the bank forwards the documents to the importer’s bank. 5. The importer’s bank verifies the forwarded documents and, if they meet the L/C conditions, transfers the payment from the importer’s account to the supplier’s bank. 6. The importer then collects the documents from the bank and the supplier receives the payment.