7.Know-How‎ > ‎

HOW TO OPEN LC - SRI LANKA

 
1. We Send Proforma Invoice to you.
    Click here for sample copy of proforma invoice
    If you are a permit holder, make sure that you provide us with the permit number, since the invoice needs to depict this number.

2. Submit proforma invoice to your bank.
    Bank provides you an application form. Please make sure your application form duly filled with accurate information. click here to find the sample copy of application form.

3. Bank holds invoice amount and sends LC (Letter of Credit) to our bank.
    Bank convert invoice amount to rupees based on the exchange rate of the date you submit the form.
     For Example 
                Pro Forma invoice amount is JPY 820,000.00
                Exchange rate 1.3626
                Rupee equivalent 1,117,000.00
      Bank charges would be
                LC Commission Rs. 3,000.00
                SWIFT Charges Rs. 2,000.000
     
4. Once we get confirmation from our bank we Ship the vehicle before the date mentioned in the proforma invoice and provide necessary documents to our bank.

5. Our bank sends documents to your bank.

6. You can collect all the documents which you need for clear vehicle from port

7. Obtaining VAT and TIN certificates:
     If this is the first time you are importing a vehicle, you will need to obtain temporary VAT and TIN numbers.
  • Where to go: Second floor of Inland Revenue Building, Colombo 2
  • Fee: free of charge.
  • Documents to take:
  • Download the form here and fill it correctly 
            Original documents that you receive from your bank.
            Two copies each of the B/L, invoice, National ID.

8. Register the VAT and TIN numbers with Customs:
    You will need to fill Form 115. Download Vehicle Import Registration form (Form 115) here and get filled and sign from JP, Grama Niladari, and Bank. make sure you bring photo when you visit JP as he should certify signing on your photo.)
  • Where to go: 3rd Floor, Times Building, Bristol Street, Colombo 01.
  • Fee: free of charge.
  • Documents to take:
            A duly filled form 115.
            Original and photocopies of the TIN and VAT certificates.
            Original and photocopy of National Identity Card.

9. Provide those document to your clearing company who support you clear vehicle from the port.
    Clearing company gets tax valuation from the custom general.
  • Original documents you received through your bank.
  • TIN and VAT certificates.
  • If you are a permit holder, the relevant permit.
  • Your National ID card.
  • L/C copies certified by your bank.
  • Completed copy of Form 115.
10. Advise your bank to issue pay order for the TAX amount address to custom general and provide wharf clerk's name and  ID card who is coming to collect pay order from the bank.
    
Here is the payments breakdown we paid for one of our Suzuki Wagon R Stingray 2016
Exchange rate 1.40
     
If you think these processes are too complicated and need support don't hesitate to contact us at any time. Also, We can clear vehicle on behalf of you.