991 BYD cars cleared, but 1,000 vehicles still stuck in Customs

Although the Court of Appeal has permitted the release of 991 BYD vehicles held by Customs on a Rs. 360 million bond, nearly 1,000 imported vehicles remain in custody since May 27 over alleged violations of import conditions by opening letters of credit in a third-party country, vehicle importers say.

Importers warn that mounting late fees have reached unbearable levels, with charges for vehicles at Hambantota Port reportedly being covered by the Chinese government, not Sri Lanka.

In a petition by John Keells CG Auto, Customs agreed to release 991 BYD vehicles subject to conditions, including a state bank guarantee for a Rs. 3.6 billion tax gap related to a dispute over engine capacity, payment of interest, and cooperation with inspections. 

A committee of experts from the Universities of Peradeniya and Moratuwa, the Government Analyst’s Department, and the Department of Motor Traffic will determine the actual engine capacity.

However, other importers remain affected, warning that continued delays risk reducing supply, pushing up vehicle prices, and impacting consumers. They urge authorities to implement a practical, industry-wide solution.