Customs agrees to release 991 detained BYD electric vehicles

Court allows release of vehicles upon Rs. 3.6 billion state bank guarantee to cover tax difference and interest   

By Lakmal Sooriyagoda

The Director General of Sri Lanka Customs yesterday informed the Court of Appeal that it has agreed to release 991 BYD electric vehicles, which had been detained by Customs, subject to several conditions. These facts were disclosed during the hearing of a writ petition filed by John Keells CG Auto Private Limited, taken up before a two-judge bench comprising Court of Appeal President Justice Rohantha Abeysuriya and Justice Priyantha Fernando.   

According to the submission made to court, the release of the vehicles will be permitted upon the furnishing of an appropriate bank guarantee. This condition requires the petitioner company to furnish a guarantee of nearly Rs. 3.6 billion, representing the difference in vehicle taxes, through a state bank, and to undertake payment of the applicable interest on that guarantee.   

Senior Additional Solicitor General Sumathi Dharmawardena, appearing for the Director General of Sri Lanka Customs, informed the court that the vehicles could potentially be released on Saturday, provided the relevant bank guarantees are furnished by the end of yesterday. The parties further agreed to appoint a committee comprising two experts from the Universities of Moratuwa and Peradeniya, an expert from the Department of Motor Traffic, and a representative from the Government Analyst’s Department to determine the motor capacity of the vehicles (whether 100 kilowatts or 150 kilowatts).  The petitioner alleged that the decision to detain these vehicle consignments by the Customs, was completely against the law and further said that the Customs has the ability to release the relevant vehicles on a bank guarantee.  This application is to be called again on September 03.   

President’s Counsel Farzana Jameel appeared for the petitioner.