Importers object to Treasury proposal to release detained vehicles with 35% surcharge

Counsels representing a group of vehicle importers have raised objections before the Court of Appeal against a proposal submitted by the Treasury to impose a 35% surcharge in order to release vehicles currently held by Sri Lanka Customs.

These vehicles were detained due to being imported into the country under letters of credit opened at foreign banks.

President’s Counsel Faiszer Musthapha, appearing on behalf of several vehicle importers related to the matter, expressed this objection before court today.

Additionally, President’s Counsels Ikram Mohamed and Sanjeeva Jayawardena, who appeared on behalf of several other importers, also objected to the Treasury’s proposal.

Counsels argued that the decision taken by Customs to detain the vehicles is contrary to the law.

President’s Counsel Faiszer Musthapha further stated in court that if such a surcharge were to be imposed, it would create a situation where the cost of the vehicle would exceed its actual value.

He also strongly opposed the idea of releasing the vehicles on a bond, arguing instead that the vehicles could be released based on an undertaking provided to court by the petitioners.

At the hearing held on Tuesday (30), the bench informed Additional Solicitor General Sumathi Dharmawardena, who appeared on behalf of Sri Lanka Customs, to explore whether the vehicles currently held could be released under a corporate or personal bond or some form of undertaking provided to court.

The bench further instructed the Additional Solicitor General to report back to court on October 10 regarding the possibility of releasing the vehicles under such conditions.