5,000 Vehicles To Be Re-Exported

[soulja]

Got any idea on the re-exporting?

[Komisiripala]

Well apart from what we all read in the times, no

[Sylvi]

Members,

Yes what was published in times I know that Mr. Sampath and his bro went to Minmar to possibily of exporting cars from S L few days back.

I was not able to give you any result today, if I get get any positive information will definitly inform this thread.

Sylvi Wijesinghe.

[soulja]

Thanks Sylvi

[kush]

What about the extrobitant duty paid on throse vehicles, unless the govt refund them it might not be financially viable.

They would be better off geting the vehicles directly from Japan for the fraction of the cost.

[Sampath Gunasekera]

Re-Export

Basically we can categorized exports in to 3 categories.

(1) Normal Exports

We export some thing to another country for their consumption.

Example: We export tea to UK.

(2) Temporary Exports

We export something to another country and it will comeback to our country soon.

Example:

(A) We send our defected circuit board to China for repairing and after repairing it will send back to our country.

(B ) In garment industry, we export some items to India for some process addition and will comeback to Sri Lanka and continue further processing here.

(3) Re-Exports

We import something form country (A) and do some value addition or process addition here in Sri Lanka ( B ) and export it to some other country (C ) .

Example: A BOI company in Sri Lanka imports Hummer -Left Hand Drive Vehicles from USA to Sri Lanka and convert them in to Right Hand Drive vehicles and export to Australia.

For re-exports under BOI projects, you can import goods without paying import tax or paying less taxes and can export without taxes.

So final price of the product will be lower and our product is competitive in the world market with other foreign suppliers.

(But you can't release the goods for local consumption and, if so you have to pay all duties)

The benefit gets by Sri Lanka is mainly jobs, introducing new technologies to Sri Lanka and we have a good market in world trades.

There are different ways of custom duties applicable for each category and it is a different subject (TIEP1 , TIEP4....for BOI projects.)

BOI website : http://www.investsrilanka.com/

(Correct me if I am wrong)

Edited October 15, 2012 by Sampath Gunasekera

[GTAm]

I think it will be on Entrepot basis. The goods only come as far as our port. It does not have to enter the country. Then it is classified as exports. I know a bit about this type of trade because I did one some years ago. Not cars though.

[whmsujith]

http://www.gossip9.com/2012/10/blog-post_15.html

[Sampath Gunasekera]

I think it will be on Entrepot basis. The goods only come as far as our port. It does not have to enter the country. Then it is classified as exports. I know a bit about this type of trade because I did one some years ago. Not cars though.

Yes, now only I came across the link http://www.gossip9.c...og-post_15.html

I also think it says about Entrepot Trade.

Importer does not pay duty for goods and goods can store at bonded warehouses for a limited period. Then importer can export goods to another country , but can't change "Country of Origin".

French usage of the word "entrepôt" meaning warehouse.

[jdnet]

Members,

Yes what was published in times I know that Mr. Sampath and his bro went to Minmar to possibily of exporting cars from S L few days back.

where the heck is minmar?

[The Don]

where the heck is minmar?

Myanmar I think.........

[GTAm]

Myanmar is the country formally known as Burma. Actually I think Myanmar was its original name. It's the country that is set to boom and has the potential to become an Asian Tiger economy after the radical reforms from communism/military rule to democracy. Their leader Aung San Suu Kyi is a remarkable and admirable leader. If she's able to do what she has set out to do, Sri Lanka could lose out to them in terms of Foreign Direct Investment. The fact that Sri Lankan companies are going to set up shop there with millions that could have been invested here could be a precursor of things to come.

[Sylvi]

Members,

The government still negotiating with exporting of Vehicles will give only 90% of the duty paid by the importers. I do not know how the exporters of motor vehicles which are imported with high duty. Will get any benefit from that condition by the government. Members please log into web under.

There was a spelling mistake in my early post as Minmar. It should read as Myanmar.

http://en.wikipedia.org/wiki/Burma

Sylvi Wijesinghe.

[GTAm]

Considering how hard it is to get any money from the government and right now how broke the government is I doubt any other these exporters will see the colour of the duty rebate. At least not for a long long time......................Unless of course somebody gets their palms oiled.

[Sylvi]

Members,

Today Lankadeepa News paper informs that S L used vehicle importers are going to set up the import of used vehicles in Myanmar.

Nothing of exporting S L VEHICLES ALREADY UNSOLD STOCKED WITH DEALERS

Also before the tax high rates were imposed in early this year had come down the imports from 3500 vehicles for a month to 100 vehicles for a month.

Sylvi Wijesinghe.

[Warlord]

Members,

Today Lankadeepa News paper informs that S L used vehicle importers are going to set up the import of used vehicles in Myanmar.

Nothing of exporting S L VEHICLES ALREADY UNSOLD STOCKED WITH DEALERS

Also before the tax high rates were imposed in early this year had come down the imports from 3500 vehicles for a month to 100 vehicles for a month.

Sylvi Wijesinghe.

[Warlord]

Well, by the tone of the news quoted by Silvy, looks like the local used ones are going to be exported. I doubt whether these would be attractive for Myanmar's coz they have already born a heavy tax and never will the owners see a depreciated duty rebate. They can get the same models from Japan for a song, so why get it from SL? For an instance I was in Samoa a couple of days ago, who can import cars up to twelve years from Japan. Was over my head to see unregistered TIs , 121s, Tribute V6s and chasers selling at 10k plus USD each.

Edited December 1, 2012 by Warlord

[Sylvi]

Well, by the tone of the news quoted by Silvy, looks like the local used ones are going to be exported. I doubt whether these would be attractive for Myanmar's coz they have already born a heavy tax and never will the owners see a depreciated duty rebate. They can get the same models from Japan for a song, so why get it from SL? For an instance I was in Samoa a couple of days ago, who can import cars up to twelve years from Japan. Was over my head to see unregistered TIs , 121s, Tribute V6s and chasers selling at 10k plus USD each.

'Warlord',

I have mentioned about on my post (Nothing of exporting S L VEHICLES ALREADY UNSOLD STOCKED WITH DEALERS). Not locally used vehicles.

There was a idea to export used Japanese unregistered vehicles. I did not follow up on that matter because no one was interested on same later. Can inform the forum, have to check up with the importer who visited on a export mission to Myanmar.

Sylvi Wijesinghe.

[NPP]

warload - a small tip. I have noticed you use two posts for the quote and your reply. you can reply under the quote in the same post

[Warlord]

@ silvy, extremely sorry for the misinterpretation. If you can do some follow up, might actually benefit some members who may be interested. Thanks in advance.

@ NPP sorry mate. Using my mobile to post is making me go bonkers. Really regret.

[Sylvi]

@ silvy, extremely sorry for the misinterpretation. If you can do some follow up, might actually benefit some members who may be interested. Thanks in advance.

@ NPP sorry mate. Using my mobile to post is making me go bonkers. Really regret.

'Warlord',

I will be meeting this person very soon, who visited Myanmar. Will give the A /l Members the feed back from him. Latest situation of the re export project.

Sylvi Wijesinghe.

Sylvi Wijesinghe.