Still waiting for that cheap phone case or gadget from TEMU or AliExpress? Here’s why your parcel is stuck at customs — and what’s really going on behind the scenes.
🟠 What Was Happening Before
- Until two weeks ago, online shopping parcels (from sites like TEMU, AliExpress, eBay) were handled informally.
- Clearing agents declared them in bulk as “personal items” and paid a small tax (Rs. 350–800 per kg).
- No one complained — low volume meant low tax loss. Everyone was happy.
📦 Then TEMU Arrived
- With aggressive ads and super cheap prices, everyone started ordering from TEMU.
- Parcel volume exploded. Customs couldn’t keep using the old informal system.
- Parliament noticed the huge tax losses. Officials asked: “Where is this per-kg tax listed officially?”
- Customs had no legal backup — so they switched to full, formal tax collection.
⚠️ What’s Happening Now
- Now every single item must be declared individually, based on proper HS Codes and tax rates.
- This is causing massive delays at customs — because they have to manually check tens of thousands of small parcels.
- It’s not just Sri Lanka. Many countries are struggling with this shift from big shipments to small online orders.
🌍 How Other Countries Handle It
There are two common models globally:
1️⃣
Restrictive Model
(e.g. 🇮🇳 India, 🇧🇷 Brazil)
- Treats every online order like a regular import.
- High taxes (60–90%) to discourage buying from abroad.
2️⃣
Vendor Collection Model
(e.g. 🇸🇬 Singapore, 🇦🇺 Australia)
- Platforms like TEMU or AliExpress collect tax at checkout and pay the government directly.
- More practical for large volumes of small parcels.
How it works:
- ✅ Low-value goods: No tax (below a set amount)
- ✅ Mid-value: Flat tax (e.g., VAT)
- ✅ High-value: Needs proper customs declaration
🇱🇰 What Sri Lanka Needs to Do
- Sri Lanka needs Model 2 — a proper Vendor Collection System.
- But right now, there’s no legal system to collect tax from global online platforms like TEMU or AliExpress.
- Without this, customs will stay jammed, and parcels will keep getting delayed.
🔍 The Bottom Line
- Customs is overwhelmed because of outdated systems.
- We need smart, long-term solutions — not quick fixes — to avoid turning Sri Lanka’s online shopping boom into a permanent customs mess.
