Thinking of personally importing a vehicle to Sri Lanka? Here’s the process I went through
Posting the entire process here because it might help someone get an idea of how vehicle importing works.
First of all, you need to decide on the vehicle you want to buy. Don’t just browse the web and pick a vehicle based on specs alone. Visit a few car dealers, inspect the vehicles in person, and get a proper feel before making a decision.
Next, find a trustworthy importer. Make sure the person is transparent and follows legal procedures. Ask how the process works, what their charges are, how much advance payment is required, and whether that payment is refundable.
Usually, the advance payment is around 1 - 2 lakhs. After the payment, the importer will start sending you details of auction vehicles along with their auction sheets. If they are not providing auction sheets, that’s a red flag. Review the auction sheets and inform them of your maximum bidding price. They will then place bids on your behalf. If your bid is the highest, you win the vehicle and they will notify you.
After winning the bid, the importer will send you a proforma invoice. This contains the details of the vehicle, and you will need it to open a Letter of Credit (LC).
The next step is to open the LC. You need to go to your bank with a printed copy of the proforma invoice, and the bank will open the LC for you. They will then transmit it to Japan, which usually takes 1 - 3 days depending on the bank. The LC is a legal document that assures the exporter of payment, provided the documents are in order. The bank will hold the vehicle’s value from your account based on the JPY/LKR exchange rate of that day.
Once the LC transmission is complete, the exporters will begin their process. They will obtain a JAAI/JEVIC certificate for the vehicle and then hand it over to a shipping company. Your importer will inform you of the shipping date, port, and vessel name. From the time of opening the LC to loading the vehicle onto the ship, it typically takes about two weeks.
After the vehicle is shipped, the importer will send you the Bill of Lading (BL), which confirms that the vehicle has been loaded onto the ship. Shipping from Japan to Hambantota usually takes about 12 - 14 days if there are no intermediate stops, but this can vary significantly. Delays due to route changes, rescheduling, or port congestion are common. (For example, my vehicle took about one and a half months to arrive due to a route change.) Even after arrival, offloading can be delayed due to congestion at Hambantota.
While the ship is en route, the vehicle documents (copy of LC, original BL, commercial invoice, JAAI/JEVIC certificates, etc.) will be couriered from Japan to your bank. The bank will notify you once they receive the documents. With your approval, they will release the held amount from your account based on the current exchange rate plus bank charges. You or your importer will then need to collect the documents from the bank.
After receiving the documents, you must apply online for a Temporary VAT permit through your IRD account. For this, you will need your TIN and PIN, so make sure to obtain them before the vehicle arrives in Sri Lanka. If there are no tax issues, the IRD will issue the permit within about five working days. If there are issues, you will need to resolve them before the permit is granted.
In addition, you will need your TIN certificate, a working email address, a passport-sized photo (soft copy), and a mobile number ownership confirmation letter (which you can obtain from your service provider) for customs registration. Make sure the name and address on your TIN certificate exactly match those on the LC. Any discrepancies can cause delays during customs clearance.
Once all documents are ready and the vehicle has been offloaded at the port, Customs will begin the clearance process. This will take around 5 - 7 days. Usually, the importer will assign a clearing agent to handle this. Sri Lanka Customs will issue an Assessment Notice, which contains the payable tax, which you can pay online with a banking app. After paying the tax they will release the vehicle in 2-3 days and you can collect it at Hambantota port. This process can also have delays. One of my friends had to wait about 2 weeks to clear his vehicle after offloading.