Import Duties For Power Tools

[jalapeno]

Hello

Are there import duties for used power tools?

I would like to import my electric power tools (hammer drill, circular saw, belt sander etc...) from the US & UK to Sri Lanka because I need to fix in-law's house .

Quality power tools (i.e. non cheap Chinese ) are too expensive or certain tools are not available here.

I read online that import duty is not applied to construction machinery because said machinery is building up the country. All the tools I would like to bring here are used in the construction sector.

If duty is applied, does anyone know what the rate is?

Thank You

[Rumesh88]

The duty concession was for large construction machinery not for the handheld tools like drills, grinders, cutters etc. For example, a power drill that falls under HS code 8467.21 attracts a duty rate of around 25%. What matters is the applicable HS code and whether such code has been exempted from duty by a gazette notification.

[jalapeno]

  On 3/27/2013 at 6:33 AM, Rumesh88 said:

The duty concession was for large construction machinery not for the handheld tools like drills, grinders, cutters etc. For example, a power drill that falls under HS code 8467.21 attracts a duty rate of around 25%. What matters is the applicable HS code and whether such code has been exempted from duty by a gazette notification.

Hello

Thanks for the reply. Where can I find out the appropriate codes you mention?

I skimmed through the Customs website but it wasn't much help . If it is there, it is buried .

The 25% duty you metioned, is that for new or used or does it make no differece whether the tool is new or used?

[Rumesh88]

Well, you need a soft or hard copy of Sri Lanka Customs HS codes to get what you want. HS codes consist of three fields -

First field (hhhh) - four digit number which is valid internationally conforming to Unified Customs Procedures

Second field (hh) - two digit number which is determined by the local Customs

Third field - and optional two digit number determined by the local Customs

Now you can search in the Net for first four digits and then you need to refer to local codes listing. If you get the first four digits and PM me I can send you the complete local code. As for you question on the duty on an used item, the tax rate does not change based on whether it is used or not but on the actual value of the item. Customs officers usually have an unusually freehand in determining or challenging the value of a used item. They are empowered by the Ordinance to do so. Still regardless of whether it is a new item or not and if you can establish its CIF value (with Proforma Invoices, Bill of Lading, Bank endorsed LC etc) then the tax payable would be calculated on the CIF value.

BTW u can try http://www.eximguru.com/hscodes/sri-lanka/default.aspx for SL HS codes. Go to Chapter 84 for handtools.

Edited March 27, 2013 by Rumesh88

[jalapeno]

Rumesh88

I went to your link and also googled to find Sri Lankan HS codes , but had no luck for power tools.

I did however find the below link that has the code, I presume the codes are the same globally.

The first 4 digits are: 8459 or 8465 or 8467

http://www.foreign-trade.com/reference/hscode.cfm?cat=13

Edited March 28, 2013 by jalapeno

[Rumesh88]

  On 3/28/2013 at 5:25 PM, jalapeno said:

Rumesh88

I went to your link and also googled to find Sri Lankan HS codes , but had no luck for power tools.

I did however find the below link that has the code, I presume the codes are the same globally.

The first 4 digits are: 8459 or 8465 or 8467

http://www.foreign-trade.com/reference/hscode.cfm?cat=13

8459 is for Machine-tools (including way-type unit head machines) for drilling, boring, milling, threading or tapping by removing metal, other than lathes (including turning centres) of heading 84.58.

8465 is for Machine-tools (includng machines for nailing, stapling, glueing or otherwise assembling) for working wood, cork, bone, hard rubber, hard plastics or similar hard materials.

8467 is for Tools for working in the hand, pneumatic, hydraulic or with self-contained electric or non-electric motor.

(Exact text for each code copied and pasted from Customs CD)

There are several sub-categories under each of the above main codes but all of them are subjected to 25.6% tax rate.

You do not find a separate HS Code for power tools as such but depending on whether they are hand-held or standing etc they are listed under different chapters. All of the above codes are listed at the link I gave you. For example from the link I gave for the HS Code 8459 you get following sub-categories.

845910 Way-type Unit Head Machines

845921 Drilling Machines, Numerically Controlled

845929 Other Drilling Machines

845931 Boring-milling Machines, Numerically Controlled

845939 Other Boring-milling Machines

845940 Boring Machines

845951 Milling Machines, Knee-type, Numerically Controlled

845959 Other Milling Machines, Knee-type

845961 Other Milling Machines, Numerically Controlled

845969 Other Milling Machines

845970 Threading or Tapping Machines

So just go for the code which best describes the item you have.

Edited March 29, 2013 by Rumesh88

[jalapeno]

Hello

So I guess it would be 8467, since thats the only one that mentions hand tools with self contained electric motor.

Under 8467, it would be :

846721 -- Drills of all kinds for working in the hand, with self-contained electric motor

846722 -- Saws for working in the hand, with self-contained electric motor

846729 -- Electromechanical tools for working in the hand, with self-contained electric motor excl. saws and drills

Now is it possible to find out the optional 2 digit code that comes after the above 6 digits?

Just to be be sure I understand this; I am looking at 25% duty? Any other charges like VAT and or other taxes ?

Thanks for your help

By the way, how did you find the 25.6% figure ?

Also, how are Customs going to value my used tools, because they rarely come up for sale used .

When they do come up for sale, the price is all over the place.

Other tools I have are from a brand that ceased existing many years ago.

Will Customs just tax based on new price of tool and if they can't find an identical new tool, what then?

If I buy used tools on Ebay, will they tax based on my buying price (assuming ofcourse I show them the receipt) ?

Edited March 29, 2013 by jalapeno

[Rumesh88]

These codes are fine and they are only six digits. It is only for certain items that you have the optional extension. I referred to the Customs HS code CD and gave you the figure they have quoted in the last column of the HS code table. I don't have my office notebook with me now but I will be able to do the calculation coming Monday and confirm the figure.

If you are bringing the tools as unaccompanied baggage, you can declare them as used electric tools and usually Customs will be very reasonable in their valuation and tax unless of course you get the wrong guy! However, if they suspect that you have brought them for commercial purposes in commercial quantities (several drills and saws etc) then they will either impose maximum tax or you will have to oil their palms. If you buy from Ebay they will tax based on the price you paid but then if they suspect undervaluation or commercial use then they may resort to high-handed action. If you can keep a proof of original price and the age of the tool you can always depreciate by let's say 20% per year and challenge (very diplomatically I mean) their valuation.

[jalapeno]

Are there other charges apart from the Customs duty? Like VAT ?

My only reason for the tools is to fix my in-law's house. After spending over 17K dollars on contractors only to receive shoddy work , I decided to do the job myself.

[Rumesh88]

Customs duty includes VAT in its formula.

[Rumesh88]

Duty amount is correct @ 26%.

Edited April 1, 2013 by Rumesh88

[Sylvi]

  On 3/30/2013 at 7:53 PM, jalapeno said:

My only reason for the tools is to fix my in-law's house. After spending over 17K dollars on contractors only to receive shoddy work , I decided to do the job myself.

jalapeno,

As you have mentioned about building contractors on this forum and this topic I thought will post the following.

The problem of unsatisfactory work by contractors and their subcontractors is a very common thing in developing countries in the world.

In SL the Consumer protection authority powers are limited. They have inquires but the time taken for settlement is unimaginable.

Services are concerned. Sri Lankans are the worst of the above category Not completing a job as agreed, to the satisfaction of the customer.

I my self is a blue color worker. Never hand over a completed job without my satisfaction. Never take a advance.

The most S L people want cheap jobs. They go for cheapest quotation. There by they get cheated.

There is a set of people who will do cheap jobs. They first take a very good advance and start the job.

Then keep on taking further money by the time the owner had paid more then the value of the job.

My next door building one contractor took 90% of the agreed amount for the job, In stages, it is still not completed.

He abandoned the job leaving some of his tools and machinery., which is not worth Rupees 5000.00.

Any one can see this from Galle road Kollupitiya Colombo 00300.

There are many complains to building contractors. If you listen to (BALUMGALA NETH FM) there are plenty of evidence.

Sylvi Wijesinghe.

[jalapeno]

To Rumesh88

Thanks for the help. Is there any place where I can calculate the % duty using the codes? I have some other tools I would like to import, for personal home renovation work.

To Sylvi

I could rant forever if I get started on Sri Lanka home builders & builders. I have bad expereince with them. My family paid them their asking price and we sought out contractors who claimed to be pros . We were specifically not looking for the cheapest contractor but one who could do quality competent work.

[Crosswind]

Just out of curiosity, did you try the clearance sales held by delmege every once in a while? They got most of the power tools of B&D and DeWalt (hammer drills, angle grinders, jig saws etc) for about half the retail price.

[Rumesh88]

  On 4/5/2013 at 8:40 AM, jalapeno said:

To Rumesh88

Thanks for the help. Is there any place where I can calculate the % duty using the codes? I have some other tools I would like to import, for personal home renovation work.

To Sylvi

I could rant forever if I get started on Sri Lanka home builders & builders. I have bad expereince with them. My family paid them their asking price and we sought out contractors who claimed to be pros . We were specifically not looking for the cheapest contractor but one who could do quality competent work.

You can download Tariff Calculator from www.customs.gov.lk but then again you should know the rates. I wrote an Excel sheet to match Custom's Asycuda calculation sometime back linking it to HS Code CD. The calculator is somewhat complicated but you can use the rates in the HS Code table. It is a 6MB file which I can email you if you PM me the address.

As for your bad experience with builders you are not alone. I too had a bad experience when I outsourced construction of my house while I was abroad. However, I had outsourced the supervision of the construction to the architect who designed the house and the financial calculations to a quantity surveyor who tracked the ongoing construction with the payments. Also I had obtained a performance bond and an insurance against the advance. When the QS warned me of the irregularities in the financial situation I immediately stepped in and stopped the construction and claimed both the performance bond and the remaining advance from the insurance. A famous insurance company played me out the amount due from performance bond (That's another story) but they paid me the remainder of the advance although they delayed the payment as best as they can. For me there was no loss in book value but I lost several months of time and suffered from the consequential cost escalation.

[Sylvi]

  On 4/5/2013 at 11:52 AM, Rumesh88 said:

You can download Tariff Calculator from www.customs.gov.lk but then again you should know the rates. I wrote an Excel sheet to match Custom's Asycuda calculation sometime back linking it to HS Code CD. The calculator is somewhat complicated but you can use the rates in the HS Code table. It is a 6MB file which I can email you if you PM me the address.

As for your bad experience with builders you are not alone. I too had a bad experience when I outsourced construction of my house while I was abroad. However, I had outsourced the supervision of the construction to the architect who designed the house and the financial calculations to a quantity surveyor who tracked the ongoing construction with the payments. Also I had obtained a performance bond and an insurance against the advance. When the QS warned me of the irregularities in the financial situation I immediately stepped in and stopped the construction and claimed both the performance bond and the remaining advance from the insurance. A famous insurance company played me out the amount due from performance bond (That's another story) but they paid me the remainder of the advance although they delayed the payment as best as they can. For me there was no loss in book value but I lost several months of time and suffered from the consequential cost escalation.

Rumesh88,

I have number of buildings in Colombo and out of Colombo. All are maintained by me and three of my staff members.

I have all tools and implements for building work including scaffoldings two elivators.

The three skilled workers came to do my new building, when I demolished the old building in Colombo 10 years ago

I selected three of them from the entire work force once was about 30 people.

Now they are in my permanent pay role One person for a month. Earn anything more than RS: 50000.00.

Whenever they do not have any building work they do my Automobile service what I do. All are trained for that.

Have given them free boarding and lodging. Leave four full days for a month. Always two workers are with me for any emergency.

I have any of my building maintain work, I get skilled workers,helpers from outside. My three assistants are supervising and they also do active work.

Most of my friends who live close to my home also get their services for any building and electrical work. Pay them separately.

Today skilled worker has to be paid minimum Rupees 2000.00 daily. Then they will be with you for long and also do honest work.

Sylvi Wijesinghe.

[jalapeno]

Sorry about the delayed response all, computer is down and am at Net Cafe.

  On 4/5/2013 at 8:50 AM, Crosswind said:

Just out of curiosity, did you try the clearance sales held by delmege every once in a while? They got most of the power tools of B&D and DeWalt (hammer drills, angle grinders, jig saws etc) for about half the retail price.

Wow, I didn't know that. Wish I had know this last year, would have bought from them instead of trying to get my tools from overseas.

Is this Delmege location the one with the sales?

101, Vinayalankara Mawatha,
Colombo 10

  On 4/5/2013 at 11:52 AM, Rumesh88 said:

You can download Tariff Calculator from www.customs.gov.lk but then again you should know the rates. I wrote an Excel sheet to match Custom's Asycuda calculation sometime back linking it to HS Code CD. The calculator is somewhat complicated but you can use the rates in the HS Code table. It is a 6MB file which I can email you if you PM me the address.

As for your bad experience with builders you are not alone. I too had a bad experience when I outsourced construction of my house while I was abroad. However, I had outsourced the supervision of the construction to the architect who designed the house and the financial calculations to a quantity surveyor who tracked the ongoing construction with the payments. Also I had obtained a performance bond and an insurance against the advance. When the QS warned me of the irregularities in the financial situation I immediately stepped in and stopped the construction and claimed both the performance bond and the remaining advance from the insurance. A famous insurance company played me out the amount due from performance bond (That's another story) but they paid me the remainder of the advance although they delayed the payment as best as they can. For me there was no loss in book value but I lost several months of time and suffered from the consequential cost escalation.

Sorry I am confused, could you explain to me what you meant by " tariff " , does " tariff " = duty % ?

I assume " rates " = import duty % ?

I'll PM you my email, thanks for the help.

Edited April 11, 2013 by jalapeno

[Rumesh88]

  On 4/11/2013 at 2:11 PM, jalapeno said:

Sorry I am confused, could you explain to me what you meant by " tariff " , does " tariff " = duty % ?

I assume " rates " = import duty % ?

I'll PM you my email, thanks for the help.

Got your PM. Will send it tomorrow when I get back to office. Tariff is the import duty in their jargon. Rates are duty percentages applicable to a HS code under various categories such as surcharges, VAT, excise etc.

[jalapeno]

  On 4/11/2013 at 3:15 PM, Rumesh88 said:

Got your PM. Will send it tomorrow when I get back to office. Tariff is the import duty in their jargon. Rates are duty percentages applicable to a HS code under various categories such as surcharges, VAT, excise etc.

So rates and duty mean the same thing?

The 26% duty you mentioned is also called " rate " ?

[Rumesh88]

  On 4/11/2013 at 4:25 PM, jalapeno said:

So rates and duty mean the same thing?

The 26% duty you mentioned is also called " rate " ?

Customs Duty, duty rates, customs tariff, all these words are used to refer to the same thing. But the rate is actually the percentage applicable either individually (this is not significant to a normal importer) or consolidated. Rate table emailed.

[jalapeno]

Rumesh88

Could you please check and tell me if I have the correct rates for HS CODE : 901510 and 901530

http://www.foreign-trade.com/reference/hscode.cfm?code=9015

I could not get the Tariff Calc. to work; must be doing something wrong. I did find the below % charges from you HS Code table with the corresponding rates.

For HS Code 901510 and 901530 the General and Pref. Import Duty fields say free.

The charges are only mentioed for :

PAL : 5 %

SRL : 1.5%

SUR : 15%

NBT : 3%

So 24.5% total levied charges.

Items are distance measurer and electronic level + plumb.

I need both to measure out and mark out level and plumb lines at in-law's house prior to cutting up the concrete floor and wall. Plus I need to re-route a water pipe and gutter pipe.

Edited August 17, 2013 by jalapeno

[jalapeno]

By the way;

I bought a new Bosch 9" angle grinder about 1 month ago . Not used it yet, as I need to get the tools mentioned in above post before I start using the angle grinder to cut up concrete floor.

Also bought a new DeWalt compound miter saw like below, from ###### , but it is 110v so I need a 3kva step down transformer.

http://www.dewalt.com/tools/machinery-miter-saws-dw713.aspx

Edited August 17, 2013 by jalapeno

[Rumesh88]

  On 8/17/2013 at 5:52 AM, jalapeno said:

Rumesh88

Could you please check and tell me if I have the correct rates for HS CODE : 901510 and 901530

http://www.foreign-trade.com/reference/hscode.cfm?code=9015

For HS Code 901510 and 901530 the General and Pref. Import Duty fields say free.

The charges are only mentioed for :

PAL : 5 %

SRL : 1.5%

SUR : 15%

NBT : 3%

So 24.5% total levied charges.

Codes are correct. In my calc also it did not work because, Obviously you cannot apply surcharge to an item which is duty free. Surcharge is over and above the CID (Customs import duty). So all you need to pay is PAL, SRL, and NBT.

[jalapeno]

Hi

Thanks for the quick response

[Ripper]

  On 8/17/2013 at 6:00 AM, jalapeno said:

By the way;

I bought a new Bosch 9" angle grinder about 1 month ago . Not used it yet, as I need to get the tools mentioned in above post before I start using the angle grinder to cut up concrete floor.

Also bought a new DeWalt compound miter saw like below, from ###### , but it is 110v so I need a 3kva step down transformer.

http://www.dewalt.com/tools/machinery-miter-saws-dw713.aspx

Apologies for going OT... You managed to source a step down transformer for your mitre saw?

Oddly enough i too came a across a larger mitre saw with an extendable arm today...makita...110v though.

Got a compound mitre saw already but the clearance isn't enough for larger stuff and the extendable arm on 110v unit has better clearance.

Didn't pull the trigger on it cos of the 110v issue. I haven't seen heavy duty units in SL.