About 300 brand new vehicles have been stranded at the Hambantota Port for more than six months, with individual importers accusing Sri Lanka Customs of demanding taxes amounting to nearly three times the original value of the vehicles to release them.
The vehicles were imported under the Cross Border Letter of Credit (LC) system for personal use. Owners say they followed all import rules that were in place at the time of purchase, but Customs later imposed additional taxes, including a surcharge of nearly 50 per cent of the customs duty. In several cases, total taxes have exceeded Rs. 10 million per vehicle.
The delay has caused severe financial and emotional stress to vehicle owners, many of whom say they used their life savings or took loans to buy a single vehicle. They claim their vehicles remain stuck at the port despite paying LC charges, customs duty, port charges, demurrage and submitting guarantees.
At a press conference held yesterday, affected importers appealed to President Anura Kumara Dissanayake to intervene, saying they are trapped in legal and administrative delays with no clear timeline for release. Some owners also expressed concern about the condition and safety of their vehicles following recent cyclone conditions.
Responding to the issue, Sri Lanka Customs spokesperson Chandana Punchihewa told Daily Mirror that the vehicles are linked to an ongoing court case related to Cross Border LC imports. He said a gazette has been issued suspending their release until the case is concluded.
However, Customs has offered two options: owners may take their vehicles after paying relevant taxes but cannot register them with the Department of Motor Traffic until the court case ends, or they may pay additional taxes and penalties to register the vehicles immediately.
With no immediate solution in sight, Hambantota Port has become the centre of a growing controversy, leaving hundreds of families facing financial hardship and uncertainty.
