Parliamentary Accounting Committee probes into vehicle import scam

Colombo(News 1st) - Parliament ordered to have an immediate report on the import of vehicles by paying low customs duties by fraudulently classifying the import under special purposes. This was revealed as a result of an inquiry conducted by the Parliamentary Accounting Committee. It was reported that 414 vehicles have been imported in the manner from 2010 and 2014 and another 112 vehicles during the year 2018. Deputy Director of Customs, Upul Vasantha stated that importers purchase vehicles overseas, and convert them to label them as special purpose vehicles. Therefore, he explained that they temporarily install a compressor and a welding machine to import the vehicle. He noted that those vehicles which ideally are dual-purpose should pay the customs duty of approximately Rs.4.5 million whereas after making these adjustments, they only pay Rs.1 million. He added that later they register those vehicles as the dual purpose at the department of motor traffic. "Is there any method in place to identify this trend? Why were another 62 vehicles released to this importer, while an inquiry and a court case at the Court of Appeal was ongoing against this particular importer?", he added. He continued that it would be similar to a normal when such a vehicle is being released. "The generator can be removed and installed. A tax is not charged for this. So when the generator is removed, the vehicle can be classified as a dual-purpose vehicle again", he further clarified. Thus the conversation continued between Lasantha Alagiyawanna and Upul Vasantha. Lasantha Alagiyawanna: So a tax is not charged for the generator, and the vehicle is released as a special purpose vehicle. Who releases the vehicle? Upul Vasantha. : Customs. Lasantha Alagiyawanna: Are you an employee of the Customs? Upul Vasantha: Yes. Lasantha Alagiyawanna: So is there any method in place, for the department to block or blacklist an importer who is under investigation, or is there room for those importers who commit such wrongdoings to continue? Upul Vasantha: The Customs made a serious blunder by issuing 62 vehicles to an importer, who had a pending court case. Lasantha Alagiyawanna: Who were the officers? Upul Vasantha: This decision was taken by the former Chairman of the NC, before his retirement, on the 7th of May. However, this decision is yet to be communicated. Lasantha Alagiyawanna: So what documents are presented to the Department of Motor Traffic? Upul Vasantha stated that there are programs in place in Japan for such purposes adding that it was the same shipper who brought in those 92 vehicles. He added that he is certain regarding the collaboration between the two companies. He further explained that they purchase vehicles from overseas, and re-register them as special purpose vehicles adding that they de-register the vehicle on the same day it is being re-registered. He further reasoned that as a result, the de-registration certificate would indicate that the vehicle is meant for special purposes. This has been arranged through customs to send the vehicle, he added. "When the vehicles arrive in the island, a section of vehicles are detained. Then they accept their declaration and release the vehicles. Afterwards, together with the RMV, the vehicle is registered under dual-purpose", he continued. Deputy Director of Customs further stated that the ships arrive on the 15th adding that the entry was submitted and then released on the 18th. He explained that it was released to obstruct this, and to allow another branch to dig into this investigation. He added that during similar incidents in the past, such inquiries or verification was not done, and were released as dual-purpose vehicles. "However, this information was not revealed. This is the issue. Previously, 12 vehicles were released without any inquiry or guarantee and were registered as dual-purpose vehicles".