Grow your business with the Discover newsletter
Logistics advice & insights straight to your inbox
Subscribe now
As businesses in Sri Lanka look to expand their horizons and diversify their product offerings, one country that import business owners are beginning to look towards is China. According to Trading Economics, China is one of Sri Lanka’s largest trading partners, with Chinese exports to the country valued at US$334 million in September 2023. This presents Sri Lankan businesses with ample opportunities to connect local buyers with the most profitable overseas goods and products at competitive prices.
Some of the most popular types of products imported into Sri Lanka from China include broadcasting equipment and other electronics, fabric and textiles, vaccines, and other biomedical products. This reflects the wide demand for Chinese goods from both the commercial and consumer sectors in Sri Lanka, with the potential to expand this array even further.
However, to ensure the best possible import process to Sri Lanka from China, it’s crucial to understand the import and export requirements and regulations in both countries. In this guide, we'll walk you through the key steps and considerations for importing goods and items from China to Sri Lanka so that you can guarantee a smooth and uninterrupted shipping process from start to finish.
China has a complex system of export duties, taxes, and fees that vary depending on the nature of the goods being shipped, their destination, and other factors. Some goods may be subject to value-added tax (VAT) or consumption tax, whereas others may have export duties imposed accordingly.
Additionally, while Sri Lanka and China do not have a bilateral free trade agreement (FTA) at the moment, both countries are parties to the existing Asia-Pacific Trade Agreement (APTA). Certain goods covered within the APTA may thus qualify for reduced or eliminated export duties, and businesses should familiarise themselves with these categories to optimise their import costs and trade outcomes.
Businesses should also keep in mind that Sri Lanka and China have been discussing a potential bilateral FTA for years, and should this FTA come to pass, there may be even more trade opportunities between the two countries. Learn more about Sri Lanka’s free trade agreements and how to use them to your advantage.
Accurate and comprehensive documentation is the foundation of a successful import procedure from China to Sri Lanka. Some of the key documents you'll need when exporting from China include:
Understanding the specific requirements and how to apply them when importing goods from China to Sri Lanka is vital, as this will ensure the shipping and import process remains smooth and uninterrupted. Inaccurate or incomplete documentation can lead to customs delays, increased costs, and even the risk of goods being held or returned – disrupting your entire supply chain.
Sri Lanka does not provide de minimis treatments for inbound shipments. As such, all categories of imports from China are not subjected to exemptions of customs duties, taxes, or VATs. However, it's essential to be aware of any potential changes in regulations in order to make informed decisions about your imports.
Both China and Sri Lanka have their own lists of items that are restricted and/or prohibited from exports and imports, respectively. Importers must be vigilant about the nature of the goods they plan to import in order to avoid violating these terms by inadvertently shipping restricted or prohibited items. This can result in severe consequences, including delays, costly fines, or even legal action – all of which will severely impact your business.
In China’s case, items that are restricted or banned from export include:
Meanwhile, on Sri Lanka’s end, the State Minister of Finance stated as recently as October 2023 that the country would be removing import restrictions on all items except vehicles effectively immediately.
As an import business, it’s crucial to familiarise yourself with the list of restricted or prohibited goods at all times. This will ensure your products aren’t just allowed to be imported but comply with the most current customs regulation standards.
When exporting goods from China to Sri Lanka, meticulous attention to packaging and labelling is paramount to ensure seamless shipping and customs clearance procedures. Proper packaging safeguards your products from damage during transit, while compliant labelling ensures that your shipments adhere to Sri Lanka's import regulatory standards.
Some considerations to keep in mind include:
By understanding these essential steps and considerations, Sri Lankan businesses can navigate the process of importing goods from China effectively.
Partnering with a reliable logistics provider like DHL Express can further streamline the import process into Sri Lanka, offering the support and resources necessary to ensure your goods reach their destination promptly and in optimal condition. Our customs expertise, customisable logistics solutions, and up-to-date market insights are just some of the best ways we support businesses in navigating the complexities of international shipping.
Open a business account with DHL Express today to discover how we can help your import business grow.