Customs’ forfeiture of Panama-flagged vessel carrying salt challenged in court

By Lakmal Sooriyagoda

A writ petition has been filed in the Court of Appeal challenging the decision of Sri Lanka Customs to forfeit the MV Stella Beauty, a Panama-flagged cargo vessel carrying a consignment of six million kilogrammes of iodized white granular salt imported from India.  

According to the petition, Customs seized both the vessel and its cargo, valued at approximately Rs. 495 million, on the grounds that the Bill of Lading contained false or inaccurate information.  

Two petitioners, including the Master of the vessel, have sought an order directing Customs to release the ship, which was forfeited by an order dated September 2, 2025. The case has been fixed for support on September 22.  The petitioners contend that the salt consignment was imported in accordance with the Special Imports and Exports (Control) Regulations No. 06 of 2025, issued following a Cabinet decision in May this year. They argue that the Bill of Lading, dated June 7, 2025, confirms the shipment was on board before June 10, thereby exempting it from the requirement of an import control licence. The shipment was arranged by JBJG Logistics in Tuticorin, India, and transported by MV Stella Beauty, owned by Chen Ship Management Pte Ltd, Singapore. The importer in Sri Lanka was Laugfs Salt and Chemicals Ltd. The vessel reached Trincomalee on June 18 after delays caused by port congestion and mechanical issues.  

The petitioners also state that the local shipping agent, Premier Shipping (Pvt) Ltd, had duly uploaded the shipment details to the ASYCUDA system prior to the vessel’s entry into Sri Lankan waters, in line with international trade practices.  

They claim that despite the consignment being under continuous supervision of Indian Customs from June 4 until its departure on June 15, Sri Lanka Customs moved to seize both the cargo and vessel after a 10-day delay in obtaining SLS certification.  

This petition is to be supported by Saliya Pieris PC.