Imported BYD vehicles may have underdeclared to reduce tax obligations, says Customs

Sri Lanka Customs have detained the BYD vehicles imported from China at the port, as an issue has arisen regarding their engine capacity.

Commenting on it, Additional Director General of Customs Seevali Arugoda said that a customs investigation is currently underway regarding the BYD vehicles, and the current suspicion is that there has been some deficiency in the payment of duties.

However, he emphasises that a conclusion can be reached only after a detailed customs investigation.

Arugoda states that if any mistake has been made, some of the vehicles may need to be re-exported, or other penalties may be required under the Customs Ordinance.

He further states that the necessary steps will be taken using the provisions contained in the Customs Ordinance.

The Additional Director General of Customs explains that Customs’ policy is to tax everyone equally and that the law does not allow any person or party to act in a way that is advantageous or disadvantageous to them.

He warns that if someone attempts to underpay taxes by fraudulently providing incorrect information or by violating existing rules, the goods can be confiscated under the Customs Ordinance.

Moreover, the person or company can also be fined three times the value of the goods. The Additional Director General of Customs further explains that the punishment is determined after an investigation reveals the actual wrongdoing.