- Argues that decision will not impact customers
- Concerns mount about demurrage payment for vehicles left in Port
Vehicle importers having raised concerns regarding the issues following the Sri Lanka Customs’ decision to halt the clearance of vehicles imported under cross-border Letters of Credit (LCs), confirms that there is no halt in clearing other vehicles and goods, and no change in the decision is being discussed at present.
Speaking to The Daily Morning yesterday (29), Customs Spokesperson ADG Seevali Arukgoda said that the decision will not be changed immediately, claiming that it was taken to ensure that no tax evasion is taking place. He also stated that this will not severely affect the functions of Sri Lanka Customs, as some have claimed.
Responding to the allegations made by vehicle importers regarding congestion caused by 200-300 vehicles not being cleared, he noted that Customs has no involvement in issues such as the payment of demurrage. He explained that demurrage is paid to terminals and shipping companies, not to Customs, and therefore it is not their responsibility.
According to Customs, the measure has been taken as a crucial step to combat significant tax evasion through fraudulent under-valuation. However, vehicle importers urge the relevant authorities to look into the matter immediately and find a resolution, as the companies have to pay significant amounts in demurrage, which could lead to an increase in the prices of imported vehicles.
Several attempts made to contact the President of the Vehicle Importers' Association of Sri Lanka (VIASL) Prasad Priyanga were unsuccessful.