The Court of Appeal (CA) yesterday (30 September) ordered the Customs to investigate and report to Court by 10 October as to whether the vehicles currently being detained by the Customs can be released on a corporate or personal bond.

This directive was issued during the hearing of approximately 15 writ petitions filed by vehicle importers seeking an order to release vehicles currently held by the Customs.

The petitions were heard before a bench comprising CA President President’s Counsel (PC) and Justice Rohantha Abeysuriya and Justice K. Priyantha Fernando.

During the hearing, counsel representing the petitioners submitted that the decision by the Customs to detain the imported vehicles was entirely unlawful. The counsels further argued that all petitioners opposed a proposal by the Secretary to the Ministry of Finance to release the vehicles upon the payment of a 35% surcharge. They emphasised that these vehicles had been imported in compliance with the regulations and gazette notifications approved by the Customs, and that therefore, their detention was unjustified and illegal. 

Attorney Nishan Premathiratne, appearing for one of the petitioners, told the Court that the continued detention of the vehicles by the Customs had resulted in additional financial burdens on his clients. He pointed out that the vehicles are being kept in unsafe conditions within the Customs premises, making them vulnerable to damage from sun exposure and other environmental factors.

The attorney also noted that since the vehicles are not covered by insurance for damages incurred during such detention, the importers would have no way of recovering the losses. He argued however that the Customs does have the legal authority to release the vehicles on a personal bond.

The CA bench then directed Additional Solicitor General Sumathi Dharmawardena PC, who appeared for the Customs, to explore whether a settlement could be reached regarding the Finance Ministry’s proposal to impose a 35% surcharge for the release of the vehicles. Accordingly, the Court advised Dharmawardena PC to consider facilitating a discussion between the petitioners and the officials of the ministry to determine whether the matter can be resolved amicably. Furthermore, the Court ordered Dharmawardena PC to inquire from the Customs whether the detained vehicles can be released on a corporate or personal bond, and to report back to Court on 10 October.

The Court then scheduled the next hearing of the petitions for 22 October.