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Duty fraud on pre-fabricated building unit busted

by Bharatha Malawaraarachchi

Customs officials have busted a multi million rupee duty fraud on the import of a pre-fabricated building unit by a BOI approved company in Kurunegala. Sources said the firm had imported this pre-fabricated building unit to establish a garment factory. The unit valued at Rs. 170 million had been brought from Saudi Arabia.

"However, the company in order to avoid paying BOI levies including Port and Aviation charges and National Security Levy had declared the value of the unit at Rs. 110 million and opened Letters of Credit only to that amount, depriving Rs. 12 million on revenue, sources said.

The modus operandi behind this clandestine act was to pay the balance Rs 60 million to the Saudi Arabian company through an indenting agent based in Colombo.

Investigations revealed that the indenting agent too had retained a commission before sending the money to Saudi Arabia whereas he should have claimed his commission after sending the whole amount to the company.

Customs officials are now investigating whether any other BOI firm had also been involved in a similar duty fraud through the same indenting agent, sources said.

Investigations are conducted by Assistant Customs Superintendent Wasantha Wimalaweera (OIC - Marine Division), Sujeewa Pathinihewa and W. A. S. Kumara under the guidance of A. M. K. Abeysinghe (Chief Asst. Preventive Officer) and A. Welikala (Chief Preventive Officer).

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Copyright 2001 The Associated Newspapers of Ceylon Ltd.
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