#eCommerceAdvice

Bridging borders with ease: How to import from India to Sri Lanka?

January 25, 2024 7 Mins Read

India and Sri Lanka share a dynamic trade relationship, with a significant volume of goods moving between the two nations. As per reports on the United Nations COMTRADE database, Sri Lanka’s imports from India notably amounted to US$4.63 billion in 2022.

This robust trade is driven by the import of various items from India, including essential commodities like mineral fuels and oils, cereals, cotton, and knitted or crocheted fabric. These items are among the top contributors to this thriving economic exchange.

As businesses in India look to expand their reach into the Sri Lankan market, understanding the nuances of shipping from India to Sri Lanka becomes crucial.

Whether you’re wondering how to import clothes, food, or textiles, navigate through this comprehensive guide to gain insights on the essentials of exporting from India to Sri Lanka for a smooth and successful import process.

Mastering India to Sri Lanka shipping: Key insights for businesses

Explore the key steps and regulations for seamless shipping from India to Sri Lanka.

1. Customs regulations

Importing products to Sri Lanka may incur various charges, including a Value-Added Tax (VAT) that ranges from 8% to 15% on most items. Import tariffs are also applied, divided into three categories: 0%, 15%, and 30%, depending on the type of goods. Typically, raw materials are taxed less, while finished goods face higher tariffs.

Notably, Sri Lanka does not offer de minimis exemptions, meaning all imports, regardless of value, are subject to these taxes and tariffs. However, the India-Sri Lanka Free Trade Agreement (ISFTA), effective since 2000, has significantly altered this landscape. This agreement permits a wide array of manufactured and agricultural goods from India to enter Sri Lanka, either duty-free or at reduced tariffs, greatly facilitating trade between the two nations.

As a result of ISFTA, imports from India to Sri Lanka have seen a notable increase, reflecting a strengthened economic bond. This development is evident in the 2022 data from TrendEconomy, which identifies India as among Sri Lanka's top trading partners. Notably, India stands as Sri Lanka's largest import partner, accounting for 26% of total imports.

This commitment to enhancing bilateral trade and cooperation underscores the dynamic and forward-looking nature of the India-Sri Lanka economic partnership.

2. Restricted & prohibited items to import to Sri Lanka from India

The import procedure in Sri Lanka is governed by a strictly enforced set of rules. One of these rules pertains to the careful monitoring and control of Sri Lanka’s import products. Understanding the regulations around restricted and prohibited items is crucial to avoid significant consequences.

Non-compliance can lead to severe penalties, including substantial fines, confiscation of goods, and, in some cases, legal action that could result in business operation suspensions or even criminal charges.

Here’s a list of items businesses in India should be particularly mindful of when shipping to Sri Lanka:

Restricted items to import to Sri Lanka:

Gold, precious metals, gems, and jewellery
Alcoholic beverages
Medicinal drugs and devices
Telecommunication equipment
Animals, plants, and their parts
Air guns, firearms, ammunition, and explosives

Prohibited items to import to Sri Lanka:

Narcotics
Tobacco products
Antiques and works of art
Hunting trophies, animal parts or remain
Imitation (replica) firearms, weapons, ammunition
Ivory
Medicinal cannabis
Pornographic materials

Similarly, businesses in India must also be mindful of the items restricted or prohibited from leaving India. This ensures compliance with both Indian and Sri Lankan laws, safeguarding your business against legal complications.

Restricted items to import from India:

Firearms and ammunition
Wildlife species or animal parts
Indian currency (Strictly prohibited for foreigners)
Plants and horticultural goods
Live animals

Prohibited items to import from India:

Narcotics and controlled substances
Explicit content and materials
All wild animals
Lethal weapons
Endangered plants
Birds and bird products
Pigs or pork-based products
Transmission devices
Counterfeit money and merchandise
Culturally valuable antiques

For the most accurate and up-to-date information on the list of products from India that are allowed for import into Sri Lanka, it's best to contact the customs authorities directly or consult your logistics provider.

3. Shipping documentation

For traditional and Indian online shopping stores that ship to Sri Lanka, prioritising accurate and complete documentation is crucial. This meticulous preparation is key to avoiding customs delays and ensuring adherence to import regulations.

The key documents required for smooth customs clearance in Sri Lanka include:

Import licence: Businesses in India must obtain an import licence from the Department of Imports and Exports Control in Sri Lanka to legally import specific items into the country.
Export licence: Also referred to as the Importer-Exporter Code, it is a mandatory 10-digit identification number required by Indian businesses for legal export activities, issued by India's Directorate General of Foreign Trade (DGFT).
Commercial invoices: These documents provide the value and description of the items being shipped, including the indication of shipping charges from India to Sri Lanka. Such details are crucial for calculating Sri Lanka's import and customs duty, aiding in accurate tax assessments.
Purchase order: A formal document issued by the buyer to the seller detailing the types, quantities, and agreed prices for products being shipped.
Packing lists: Essential for detailing every item in the shipment, this list helps customs officials verify that the items are allowed into Sri Lanka.
Certificate of origin (COO): Certifies that the shipped goods originated in India, a requirement for adhering to Sri Lanka's import regulations and assessing the correct tariffs.
Air waybill: A vital air cargo document, it serves as proof of shipment, provides a detailed record of the cargo, and acts as a legally binding agreement. It includes a unique tracking number, essential for precise parcel sorting and tracking.
Customs declaration form: This form declares the full details of the shipment to customs, including the purpose and legality of the import. It's essential for customs to assess compliance and duties and decide on inspections.

4. Packaging and labelling

Ensuring your items' safe and compliant delivery is the final step in the import process. Whether you're importing jewellery, spices, or rice from India, adhering to proper packaging and labelling standards is crucial.

Moreover, this attention to detail prevents complications like damage during transit, which can lead to sunk costs, additional expenses for replacement, and potentially a loss of customer trust.

To avoid this, let’s delve into the best packaging and labelling practices for shipping particular goods from India to Sri Lanka:

Food products:

Use robust packaging materials, such as corrugated cardboard boxes, with moisture-resistant materials, such as coated paper or foil pouches.
When shipping perishable goods, ensure the use of airtight or vacuum-sealed bags to protect from moisture and air.
For frozen foods, utilise gel packs, dry ice, or liquid nitrogen technology to maintain the food’s optimal temperature throughout transit.
Labels should include the country of origin and importer's name and address.

Electronic equipment:

Use heavy-duty corrugated cartons or boxes for the safe shipping of electronics from India to Sri Lanka.
Use moulded foam or inflatable airbags tailored to the shape of the electronics, ensuring stability inside the package.
Use anti-static bags to safeguard sensitive electronic components from static damage.
Use void-fill materials inside the carton, such as air pillows or foam packing peanuts.
Labels should include the shipping address, return address, and handling instructions such as "fragile" or "this side up".

Pharmaceuticals:

Use refrigerated or temperature-controlled containers for temperature-sensitive pharmaceuticals to ensure product stability during transit.

Labels must include the drug name, storage conditions, and any warnings. Batch numbers and manufacturing dates are also crucial for traceability.

In line with Sri Lanka's latest regulations, all import package labels should be marked in large, bold lettering using indelible ink or paint. Additionally, it’s mandatory to display the common names of items prominently in all three of Sri Lanka's official languages: English, Sinhala, and Tamil.

By adhering to Sri Lanka’s packaging and labelling standards, you can ensure that the imported goods from India maintain quality and compliance throughout the shipping process.

Streamline your imports for success with DHL Express

In the dynamic trade landscape between India and Sri Lanka, DHL Express Sri Lanka emerges as a key facilitator for smooth and efficient imports. Our extensive experience and knowledge in logistics enable us to navigate the complexities of customs documentation and clearance expertly. This ensures your shipments from India to Sri Lanka are processed swiftly and compliantly.

Moreover, we provide various packaging solutions for different shipping needs, ranging from standard envelopes and boxes to specialised temperature-controlled containers. This versatility ensures that diverse import goods maintain their quality and integrity.

In line with the “Green Movement of Sri Lanka”, DHL Express is committed to green logistics, actively contributing to the nation's environmental conservation initiatives. This commitment, combined with our competitively priced courier charges, positions us as a cost-effective and environmentally responsible choice for businesses. Elevate your import journey by opening a DHL Express business account today.

ENJOY SPECIAL CORPORATE SHIPPING RATE WITH US TODAY!