Every import tax on a vehicle starts from one figure: the CIF value. If it is wrong, every tax after it is wrong by a larger amount, so it is worth getting right before you use the calculator.
What CIF means
CIF stands for Cost, Insurance and Freight. It is the price of the vehicle, plus the insurance, plus the cost of shipping it to the port of Colombo. It is the value of the vehicle when it arrives in Sri Lanka, and not just the price you paid the seller.
In short: CIF = the vehicle's price (FOB) + insurance + freight to Colombo.
You will also see FOB, "free on board". That is the price of the vehicle loaded on the ship at the foreign port, with no shipping and no insurance yet. Customs works from CIF, so a FOB price on its own understates the value.
Where to find it
- The commercial invoice from the exporter, if it is issued on CIF terms: the CIF figure is on it.
- The bill of lading and the shipping invoice, for the freight.
- The insurance certificate, for the insurance.
- The purchase invoice or the vehicle's sale record, for the vehicle's price. This is usually FOB or lower: the seller's fee, the exporter's fees and the inland transport in the country of origin may or may not be part of what Customs counts. Ask your clearing agent which of them to include.
If you have a FOB price and a freight quote, add them, then add the insurance. If you do not know the insurance yet, ask the exporter: it is normally a small percentage of the value.
Which currency
Use the currency the invoice is in (for example Japanese yen, US dollars or pounds). The calculator converts it to rupees. See converting yen and other currencies for which exchange rate is used and how to enter your own.
What happens if the value looks too low
Customs checks the declared value. If it looks lower than similar vehicles, Customs can assess a different value, and the taxes follow it. A realistic CIF value avoids delays. The calculator shows what each charge comes to for the value you enter, so you can see how much a change in CIF moves the total.
Next
Once you have the CIF value, see how the tax is calculated. The figures there are estimates; the final duty is assessed by Sri Lanka Customs.