Exemptions of Customs Duty in LMW

-
Raw material and components eligible for duty exemption are as follows:
  1. Customs duty exemption to all raw materials and components used directly in the manufacturing process of approved produce from the initial stage of manufacture until finished goods products is finally packed ready for export. This includes packaging materials and casings.
  2. The list of raw materials and components that can be imported and taken to LMW without payment of customs duty is issued together with the LMW license. Addition or deletion to the list can be made from time to time;
  3. Goods subject to excise duty incorporated in the final product, e.g. dry cell batteries may be exempted from excise duty. Application for such excise duty exemption should be made to the Treasury for consideration under Section 10 (a) of the Excise Act 1976.
Materials or goods that are not eligible for duty or tax exemptions are as follows:
  1. Fuel Oil;
  2. Building and construction materials;
  3. Office equipment;
  4. Furniture;
  5. Materials for machinery and factory cleaning purpose;
  6. Wearing apparels (uniforms for factory workers).
Machinery Equipment

Machinery equipment required for direct manufacturing process of approved final finished products are entitled to exemption from customs duty and sales tax under Item 88 Customs Duties (Exemption) Order 1988 and Item 83 Schedule B Sales Tax (Exemption) Order 1980.

Popular posts from this blog

Definition, nature and purpose of a Documentary Credit

-
Article 2 of the Uniform Custom and Practice for Documentary Credit defines a documentary credit as: "For the purpose of these articles, the expression documentary credits and standby letters of credit (hereinafter referred to as credits ) means any arrangements, however named or described, whereby a bank (the issuing bank) acting on request and on the instructions of a customer (the applicant) or on its own behalf: is to make a payment to or to the order of a third party (the beneficiary) or is to accept and pay bills of exchange (drafts) drawn by the beneficiary, or, authorizes another the bank to effect such payment or to accept and pay such bills of exchange (drafts) or, authorizes another bank to negotiate, against stipulated documents, provided that the terms and conditions of the credit are adhered with". In a layman language, a documentary credit may be describe as a legal undertaking in writing. It is issued by the customer's bank (also known as the issuing ba
Read more

Bills of Lading

-
Image
A bill of lading is a document issued by a carrier to a shipper, signed by the captain, agent or owner of a vessel, furnishing written evidence regarding receipt of the cargo, the conditions on which transportation is made (contract of carriage) and the engagement to deliver goods as the prescribed port of destination to the lawful holder of the bill of lading. A bill of lading is, therefore both a receipt for the merchandise and a contract to deliver it as freight. There are a number of different types of bill of lading a number of issues that relate to them as a group of documents. Straight Bill of Lading (Non-Negotiable) A straight bill of lading indicates that the shipper will deliver the goods to the consignee. The document itself does not give title to the goods (making it non-negotiable). The consignee need only to identify himself to claim the goods. A straight bill of lading is often used when payment for the goods has already been made in advance or in cases where
Read more

Various Basic Shipping Charges on Landside and Waterside

-
Landside Stevedoring - cargo handling charges for loading / discharging cargo on / from conventional breakbulk vessels. LCL Service Charge - charge for stuffing and unstuffing LCL (Less than Container Load) cargo into or from a container at the freight station. Equipment Transfer Charge (ETC) - charge for lifting an empty or loaded container onto / from the trailer. Also called Lift-on / Lift-off (LOLO) charge. This charge is applicable on FCL (Full Container Load) containers only. Terminal Handling Charge (THC) - charge for handling (receiving and delivering) FCL containers at the container yard (CY). Waterside Bunker Adjustment Factor (BAF) - surcharge for offsetting changes in fuel prices. Congestion Surcharge - surcharge levied on cargo that are discharge at a port where ships are experiencing delays in turnaround time. Currency Adjustment Factor (CAF) - surcharge for offsetting fluctuations in currency exchange rates of various currencies against the US Dollar. In Asia and Japan t
Read more