Margin Requirements Against Imports on Documents Against Acceptance (DA) Terms

CENTRAL BANK OF SRI LANKA BANK SUPERVISION DEPARTMENT 11 October 2018 CIRCULAR No.02 of 2018 MARGIN REQUIREMENTS AGAINST IMPORTS ON DOCUMENTS AGAINST ACCEPTANCE (DA) TERMS The Central Bank of Sri Lanka with a view to curtailing imports and the adverse impact on the exchange rate requires licensed commercial banks to adopt the following measures on imports under DA terms with immediate effect.

1. A 100 per cent cash margin on the invoiced value of the imports under DA terms for items specified in Annex I, shall be placed by the importer at the bank that releases documents, at the time of acceptance of documents by the importer.
2. The 100 per cent cash margin requirement shall be on the total value of the invoice, regardless that the same invoice includes items which are not subject to the margin requirement.
3. Licensed commercial banks shall endorse the invoice to the effect that the margin deposit has been obtained.
4. The margin deposit shall be released on the production of documentary evidence payments through the banking channels in Sri Lanka and customs documents clearance of impofis.
5. Licensed commercial banks shall not grant any loan facilities to enable importers to place the margin deposits in respect of these imports. il, ; A A M Thassim Director of Bank Supervision or of

Annex I Non-Essential Consumer Goods HS Hdg 33.03 HS Code 3303.00.00 Description Perfumes and toilet waters 3303.00.10 Perfumes Toilet waters 3303.00.21 Baby cologne conforming to SLS 589 and containing alcohol not less than 55o/o and not more than 650/o bv vlv 3303.00.22 Other colognes containing alcohol not less than 50o/o and not more than 9Uo/oby vlv 3303.00.29 Other 33.07 Pre-shave, shaving or after-shave preparations, personal deodorants, bath preparations, depilatories and other perfumery, cosmetic or toilet preparations not elsewhere specified or included; prepared room deodorisers, whether or not perfumed or having disinfectant properties 3307.10.00 Pre-shave, shaving or after-shave preparations 3307.20.00 Personal deodorants and antiperspirants 3307.30.00 Perfumed bath salts and other bath preparations Preparations for perfuming or deodorizing rooms, including odoriferous preparations used during religious rites : 3307.41.00 "Agarbatti" and other odoriferous preparations which operate by buming 3307.49.00 Other 3307.90.00 Other: 3307.90.10 Contact lens solutions 3307.90.90 Other 40.11 New pneumatic tyres, of rubber (+) 4011.10.00 Of a kind used on motor cars (including station wagons and racing cars) 401 1.20.00 Of a kind used on buses or lorries : Having a rim size 20 inches and above : 4011.20.11 Tyre casing without markings

4011.20.19 Other 4011.20.90 Other 4011.30.00 Of a kind used on aircraft 401 1.40.00 Of a kind used on motorcycles 401 1.50.00 Of a kind used on bicycles 401 1.70.00 Of a kind used on agricultural or forestry vehicles and machines 4011.80.00 Of a kind used on construction, mining or industrial handling vehicles and machines : 401 1.80.10 Having a rim size not exceeding 6l cm 401 1.80.90 Having a rim size exceeding 61 cm 401 1.90.00 Other: 4011.90.10 Of a kind used on auto trishaws 401 1.90.90 Other Other footwear with outer soles and uppers of rubber or plastics 64.02 Sports footwear 6402.12.00 Ski-boots, cross-country ski footwear and snowboardboots 6402.t9.00 Other: 6402.t9.t0 Football shoes and rugby shoes 6402.t9.19 Other 6402.20.00 Footwear with upper straps or thongs assembled to the sole by means of plugs Other footwear 6402.91.00 Covering the ankle 64.03 6402.99.00 Other Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of leather Sporls footwear: 6403.12.00 Ski-boots, cross-country ski footwear and snowboard boots 6403.19.00 Other: 6403.1 9.1 0 Football shoes, rugby shoes 6403.t9.t9 Other 6403.20.00 Footwear with outer soles of leather, and uppers which consist ofleather straps across the instep and around the big toe

6403.40.00 Other footwear, incorporating a protective metal toe-cap Other footwear with outer soles of leather : 6403.51.00 Covering the ankle 6403.59.00 Other Other footwear : 6403.91.00 Covering the ankle 64.04 6403.99.00 Other Footwear with outer soles of rubber, plasticso leather or composition leather and uppers of textile materials Footwear with outer soles of rubber or plastics : 6404.1t.00 Sports footwear; tennis shoes, basketball shoes, gym shoes, training shoes and the like 6404.t9.00 Other 64.05 6404.20.00 Footwear with outer soles of leather or composition leather Other footwear 640s. 1 0.00 With uppers of leather or composition leather 6405.20.00 With uppers of textile materials 6405.90.00 Other 84.15 Air Conditioningl machirresr, pBmprisifrg a ,motor,4riv lfran iand etrements f,or,:changipg thertemp,4iature and'hurnidity, incfuding thoseitrhc[iines in which the humidtff ea$p.e separately regulated(+) ', r,. "r'i';' i ' ; 841s.10.00 Of a kind designed to be fixed to a window, wall, ceiling or floor, self-contained or "split systetn" : 8415.10.10 Used i reconditioned "Split systern" 8415.10.21 Of a capacity not exceeding 9,000 BTU 84ts.t0.22 Of a capacity exceeding 9,000 BTU and not exceeding 12,000 BTU 8415.10.23 Of a capacity exceeding 12,000 BTU and not exceeding 18,000 BTU 8415.t0.24 Of a capacity exceeding 18,000 BTU and not exceeding 24,000 BTU 841 5. 10.25 Of a capacity exceeding 24,000 BTU and not exceeding 30,000 BTU

8415.10.29 Other Self-contained: 8415.10.31 Of a capacity not exceeding 9,000 BTU 8415.t0.32 Of a capacity exceeding 9,000 BTU and not exceeding 12p00 BTU 841 5. 10.33 Of a capacity exceeding 12,000 BTU and not exceeding 18,000 BTU 8415.10.34 Of a capacity exceeding 18,000 BTU and not exceeding 24,000 BTU 8415.10.35 Of a capacity exceeding 24,000 BTU and not e*ceeding 30,000 BTU 8415.10.39 Other 8415.20.00 Of a kind used for persons, in motor vehicles : 84 1 5.20. 10 Used / reconditioned 8415.20.90 Other Other: 8415.81.00 Incorporating a refrigerating unit and a valve for r"rersal of the cooling/heat cycle (reversible heat pumps) : 841s.81.r0 Used / reconditioned 8415.81.90 Other 8415.82.00 Other, incorporating a refrigerating unit 8415.82.10 Used / reconditioned 841s.82.90 Other 8415.83.00 Not incorporating a refrigerating unit 8415.83.10 Used / reconditioned 841s.83.90 Other 8415.90.00 Parts: 8415.90.10 Outdoor units of split type air conditioning machines: 8415.90.1 I Used / reconditioned 8415.90.19 Other 8415.90.20 Indoor units of split type air conditioning machines: 8415.90.21 Used / reconditioned 8415.90.29 Other 8415.90.90 Other

84.18 Refrigerators, freezers and other refrigerating or freezing equipment, electric or otherl heat pumps other than air conditioning machines of heading 84.15 I t;,, l .', ,r,' ,r t li'r,i 8418.10.00 Combined refrigerator-freezers, fitted with separate external doors : 84 1 8.1 0.1 0 Used / reconditioned 841 8.10.90 Other Refrigerators, household type : 841 8.21.00 Compression-type : 8418.21.10 Used / reconditioned 8418.21.90 Other 8418.29.00 Other: 8418.29.10 Used / reconditioned absorption-type, electrical 8418.29.20 Other absorption-type, electrical 8418.29.30 Other used / reconditioned 8418.29.90 C)ther 8418.30.00 Freezers ofthe chest type, not exceeding 800 I capacity : 8418.30.10 Not exceeding 566 I used / reconditioned 8418.30.20 Other, not exceeding 566 I 8418.30.30 Other, used / reconditioned 8418.30.90 Other 8418.40.00 Freezers ofthe upright type, not exceeding 900 1 capacity : 8418.40.10 Not exceedin g 566 1 used / reconditioned 8418.40.20 Other, not exceeding 566 I 8418.40.30 Other, used / reconditioned 8418.40.90 Other 8418.s0.00 Other furrriture (chests, cabinets, display counters, show-cases and the like) for storage and display, incorporating refrigerating or freezing equipment : 8418.50.10 Used / reconditioned 8418.50.90 Other Other refrigerating or freezing equipment; heat pumps : 841 8.61 .00 Heat pumps other than air conditioning machines of heading 84.1 5 8418.69.00 Other: 8418.69.10 Cabinet and chest type refrigerators exceeding 566 I and below 850 1 used/ reconditioned

8418.69.20 Other, cabinet and chest type refrigerators exceeding 566 I and below 850 I 8418.69.30 Blast-freezers for preserving poultry meat used/ reconditioned 8418.69.40 Other, blast-freezers for preserving poultry meat 8418.69.50 Milk chilling tanks used/ reconditioned 8418.69.60 Other, milk chilling tanks 8418.69.70 Other, used/ re-conditioned 8418.69.90 Other Parts : 8418.91.00 Fumiture designed to receive refrigerating or freezing equipment: 8418.91.10 Cabinets for refri gerators 8418.91.20 Other cabinets 8418.91.90 Other 8418.99.00 OtheI 85.17 Telephone sets, including telephones for cellular networks or for other wireless networks : 8517.1 1.00 Line telephone sets with cordless handsets 8517.12.00 Telephones for cellular networks or for other wireless networks 85 I 7.1 2.10 Used / reconditioned cellular mobile telephones 8517.t2.20 Other, cellular mobile telephones 8517.t2.90 Other 8517.18.00 Other Other apparatus for transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network) : 8517.61.00 Base stations

8517.62.00 Machines for the reception, conversion and transmission or regeneration ofvoice, images or other data, including switching and routing apparatus : 8st7.62.10 Transmission apparatus with or without reception apparatus 85t7.62.90 Other 8517.69.00 Other 8517.70.00 Parls Monitors and projecto,rs, not incorporltilg teffiion;, ', recrcption appar:atus; reception rpparatus for teleVisiOn; I whether or not incorporating ra.{io roadcast receivels or sbund or,video recordihg or reproducing:appaiatusr, i r;'r; 85.28 Cathode-ray tube monitors : 8528.42.00 Capable of directly connecting to and designed for use with an automatic data processing machine of heading 84.71 8s28.49.00 Other: 8528.49.10 Used / reconditioned 8s28.49.90 Other Other monitors : 8s28.s2.00 Capable of directly connecting to designed for use with an automatic data processing machine of heading 84.71 8s28.s9.00 Other: 8528.59.10 Used / reconditioned 8s28.59.90 Other Projectors : 8528.62.00 Capable of directly connecting to designed for use with an automatic data processing machine of heading 84.71 8528.69.00 Other Reception apparatus for television, whether or not incorporating radio- broadcast receivers or sound or video recording or reproducing apparatus : 8528.71.00 Not designed to incorporate a video display or screen : 8528.71 .10 Used / reconditioned 8528.71.20 Other, colour 8528.71 .90 C)ther 8528.72.00 Other. colour

8528.72.10 Unassembled in completely knocked- down form 8s28.72.20 Used / reconditioned Other, with cathode ray tube : 8528.72.31 Having a screen of less tban 14 inches 8528.72.32 Having a screen of 14 inches and not exceeding 15 inches 8528.72.33 Having a screen ofexceeding 15 inches and not exceeding 2l inches 8528.72.34 Having a screen of exceeding 2l inches and not exceeding 25 inches 8s28.72.35 Having a screen ofexceeding 25 inches and not exceeding 29 inches 8528.72.36 Having a screen ofexceeding 29 inches and not exceeding 34 inches 8528.72.39 Other Other, with LCD : 8528.72.41 Having a screen ofnot exceeding 32 inches 8s28.72.49 Other Other : 8528.72.91 Having a screen ofnot exceeding 32 inches 8528.72.99 Other 8s28.73.00 Other, monochrome : 8528.73.10 Used / reconditioned and completely knocked-down with or without cathode ray tube 8s28.73.20 Other, completely knocked-down with or without cathode ray tube 8s28.73.30 Other, used / reconditioned 8s28.73.90 Other Machines, each of a dry linen capacity not exceeding 10 kg : 84s0.1 1.00 Fully-automatic machines : 8450.1 r.10 Unassembled in completely knocked-down form 8450.1 1.20 Used / reconditioned Other, top loading: 84s0.1 1.31 Of a dry linen capacity less than 4 kg 84s0.11.32 Of a dry linen capacity exceeding 4 kg and not exceeding 5.5 kg

8450.1 1.33 Of a dry linen capacity exceeding 5.5 kg and not exceeding 7.5 kg 8450.1 1.34 Of a dry linen capacity exceeding 7.5 kg and not exceeding 9.5 kg 84s0.1 1.39 Other Other, front loading : 8450.1 l.4l Of a dry linen capacity less than 4 kg 8450.tl.42 Of a dry linen capacity exceeding 4 kg and not exceeding 5.5 kg 84s0.1 1.43 Of a dry linen capacity exceeding 5.5 kg and not exceeding 7.5 kg 8450.11.44 Of a dry linen capacity exceeding 7.5 kg and not exceeding 9.5 kg 8450.fi.49 Other 8450.12.00 Other rrachines, with built-in centrifugal drier : 8450.1 2. I 0 Unassembled in completely knocked-down form 84s0.12.20 Used / reconditioned Other: 84s0.t2.31 Of a dry linen capacity less than 4 kg 8450.12.32 Of a dry linen capacity exceeding 4 kg and not exceeding 5.5 kg 84s0.12.33 Of a dry linen capacity exceeding 5.5 kg and not exceeding 7.5 kg 84s0.12.34 Of a dry linen capacity exceeding 7.5 kg and not exceeding 9.5 kg 8450.12.39 Other 84s0.19.00 Other: 8450.19.10 Unassembled in completely knocked-down form 84s0.19.20 Used / reconditioned Other 84s0.19.31 Of a dry linen capacity less than 4 kg 8450.19.32 Of a dry linen capacity exceeding 4 kg and not exceeding 5.5 kg 8450.19.33 Ofa dry linen capacity exceeding 5.5 kg and not exceeding 7.5 kg 8450.t9.34 Of a dry linen capacity exceeding 7.5 kg and not exceeding 9.5 kg 8450.19.39 Other 8450.20.00 Machines, each of a dry linen capacity exceeding l0 kg 8450.90.00 Parts