Appeals court issues directive on vehicles detained by Sri Lanka Customs

The Court of Appeal today (30) ordered Sri Lanka Customs to investigate and report to court by October 10, whether the vehicles currently being detained by 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 Sri Lanka Customs.

The petitions were heard before a bench comprising Court of Appeal President Justice Rohantha Abeysuriya and Justice Priyantha Fernando.

During the hearing, counsel representing the petitioners submitted that the decision by Sri Lanka Customs to detain the imported vehicles was entirely unlawful.

The counsels further argued that all petitioners strongly opposed a proposal by the Secretary to the Ministry of Finance to release the vehicles upon payment of a 35% surcharge.

They emphasized that these vehicles had been imported in compliance with regulations and gazette notifications approved by Customs, and therefore, their detention was unjustified and illegal.

Attorney Nishan Premathiratne, appearing for one of the petitioners, told court that the continued detention of the vehicles by 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 losses. He argued that Customs does have the legal authority to release the vehicles on a personal bond.

The Court of Appeal bench then directed Additional Solicitor General Sumathi Dharmawardena, who appeared for Sri Lanka 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 Appeals Court advised the Additional Solicitor General to consider facilitating a discussion between the petitioners and officials of the Ministry of Finance to determine whether the matter can be resolved amicably.

Furthermore, court ordered the Additional Solicitor General to inquire from Sri Lanka Customs whether the detained vehicles can be released on a corporate or personal bond, and to report back to Court on October 10.

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