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BoI companies allowed to import electric vehicle, with conditions
View(s):By Namini Wijedasa
The Government has issued a regulation allowing Board of Investment (BoI) companies to import a single electric rechargeable vehicle up to the value of US$ 30,000 with customs duty exemption on cost, insurance and freight (CIF).
The regulation, issued earlier this month, is pursuant to a Cabinet decision taken in September last year on a proposal by President Ranil Wickremesinghe in his capacity as Investment Promotion Minister. It is, however, conditional to meeting other requirements.
The existing enterprise is required to have been in operation for not less than five years, must make an additional investment of US$ 3mn (Rs900mn), and generate not less than 50 jobs through its expansion project o be entitled to import one electric vehicle exempt from customs duty.
The other category that can avail itself of this benefit is an existing BoI enterprise or a new enterprise identified under the “100 IT/ITES companies programme”. It must engage in information technology, or information technology-enabled services. And it must make an additional or new investment of US$ 250,000 (Rs75mn) generating not less than 50 jobs out of which 15 employees are technically qualified.
The payment or transaction for the importation of the vehicle must also be made in foreign exchange generated by the remittance of foreign exchange via an inward investment account (a special account designated for eligible investors resident in or outside Sri Lanka to route funds to invest in the permitted investments) after which a letter of credit for the transaction must be obtained from a licensed commercial bank.
It could also be through foreign exchange earnings remitted through a business foreign currency account which is designed for persons or business residents in Sri Lanka that earn foreign exchange; or foreign currency banking unit, which is a unit or department of a commercial bank authorised by the Central Bank of Sri Lanka to operate as a foreign currency banking unit.
The regulations state that the duty exemption will be granted only if letter of confirmation is provided by a licensed commercial bank that no money was converted or local currency was credited to foreign exchange for the purpose of placing the requisite letter of credit.
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