Brief on the Changes to the Imports and Exports (Control) Act No.1 of 1969 in March 2022

24^th March 2021

This is the 9th brief in a series that presents an analysis of the amendments to the regulations on the Imports and Exports (Control) Act (since April 20201). This brief analyses the Gazette that was issued on March 9th, 2022 (refer below) and aims to provide clarity and awareness on the changes to this Import and Export (Control) Regulation.

KEY TAKEAWAYS

• This Gazette is applicable to the importation of goods with a date of Bill of Lading/Airway Bill on or after March 10th, 2022.

• The Gazette imposed Import Control Licensing (ICL) requirement on 367 products. Machinery/Electrical items saw the highest number of additions for the ICL requirement followed by food items and footwear.

• It can be noted that about 85% of the products that came under ICL regulations were previously in the import restriction list requiring a credit facility of 90 days (C-90 days) and 180 days (C-180 days). The credit facility regulation was imposed through 10 Gazettes from April 2020 to June 2021.

• Observing the overall restrictions (in the form of Temporary Suspension - TS, ICL and Banned) in the sectors placed from November 2017 to March 2022, most restrictions are in the transport sector followed by Chemical and Allied Industries and Textiles.

KEY CHANGES OBSERVED

• The 367 items listed in the Gazette, will require an Import Control License (ICL) issued by the Controller General of Imports and Exports Control in order to import these goods. These are also subject to the approval of the Secretary to the Ministry of Finance.

• A special imports license fee ranging from 0.1% to 1.0% on the Cost, Insurance, and Freight (CIF) value will also be charged on these goods.

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Import and Export (Control) Act (PDF)

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