Sri Lanka Customs has appointed a special committee to find a solution to the continuing dispute over vehicles that were brought into the country through Letters of Credit (LCs) but have since been denied final customs clearance.
The committee has been tasked with examining the circumstances surrounding the affected consignments and making recommendations on possible settlement measures, Customs said.
The move follows a standoff between customs authorities and importers over the clearance procedure applied to LC-funded vehicle imports, with affected parties pressing for a resolution.
Vehicle imports were restricted in Sri Lanka for several years from 2020 as part of measures to conserve foreign exchange during the country’s balance of payments crisis, and were reopened in phases. Consignments caught between changing rules and valuation requirements have since become a recurring source of dispute between importers and Customs.
The committee’s findings are expected to determine how the held consignments are treated.
