CA issues interim order suspending Customs’ seizure notice on electric cars

The Court of Appeal issued an interim order suspending the operation of the seizure notices and restraining the Customs from arresting or curtailing the liberties of the petitioner as part and parcel of any inquiry or investigation in respect of the import of the motor vehicles. 

The petitioner in the action has been a leader in the import of luxury and semi-luxury vehicles catering to a wide clientele across the island through the past decade and has gained a reputation for providing end-to-end services to customers who require a vehicle being imported on their behalf. 

The petitioners preferred the instant application citing the continuous harassment of the petitioners purportedly pertaining to vehicles which the petitioner company facilitated the imports for, under and in terms of Circular No. 02/2022 issued by the Ministry of Labour and Foreign Employment on or around the 31st of August 2022 (and subsequently amended from time to time), wherein a scheme for granting permit licenses to import fully electric vehicles for Sri Lankans employed abroad in appreciation of the contribution made to the national economy by Sri Lankans employed abroad by remitting their foreign exchange earnings to the country.

The circular was issued enabling Sri Lankans employed abroad who remit foreign exchange to Sri Lanka through the banking system of the country to import a fully electric vehicle which is one of the schemes included therein. 

The petitioners in their petition submit that the Customs have illegally taken into custody the documents pertaining to vehicles, and issued seizure notices which the petitioners facilitated imports for persons who have duly and in terms of the law, imported the said vehicles pursuant to  circular issued by the Ministry of Labour and Foreign Employment. 

Faiszer Musthapha PC with Shaheeda Barrie, Mehran Careem, Pulasthi Rupasinghe and Hafeel Farisz appeared for the petitioners. 

Counsel for the petitioners submitted that the vehicles purportedly seized, initially received the clearance from the Sri Lanka Customs, having paid all the necessary duties.

It was also submitted that the decision to seize the said vehicles is arbitrary, as it undermines the national policy of encouraging foreign remittances, at a time when the state is in dire need of foreign exchange.

Faiszer Musthapha PC in his submissions citing the famous Toyota Lanka Case stated that the disbursement of forfeitures and penalties heavily weighed in favour of officers of Sri Lanka Customs, the reward-oriented motivation induces overzealous action by officers in effecting seizures and imposing penalties to harass importers.

Pursuant to hearing the submissions made Court was pleased to grant and issue an Interim Order suspending the operation of the the seizure notices and restraining the Customs from arresting and/or curtailing the liberties of the petitioner as part and parcel of any inquiry or investigation in respect of the importat of the said motor vehicles.