Customs bare major duty racket, exploiting Indo-Lanka FTA

Manjula Fernando

COLOMBO: The Sri Lanka Customs Intelligence has exposed a massive duty racket involving export of Indonesian cloves and arecanuts to India, exploiting the concessions granted to Sri Lanka under the Indo-Sri Lanka Free Trade Agreement (ISFTA).

Investigations, triggered by a tip off from Indian customs, has uncovered that the racketeers with the help of a Sri Lankan counterpart has shipped a total of eight consignments of cloves and arecanuts, worth Rs.111.42 million producing forged country of origin export certificates to Indian Customs Authorities during the past 3-4 months.

"This could be the tip of the ice burg. We are still investigating the actual number of illegal shipments to India," Customs sources told the Daily News yesterday.

A leading shipping line in Colombo, which the customs believe is very much involved in the underhand operation, has issued Bills of Lading to prove the shipment has originated from Colombo. The customs has already arrested the Sri Lankan counterpart who acted on behalf of the Indonesian exporter.

The Sri Lanka Commerce Department which has the sole authority to issue the certificates of country of origin, when contacted by the Customs has verified that the certificates produced by the exporter to the Indian Customs was in fact forged.

The Sri Lankan exporter's address appearing on these certificates were also found to be fictitious. Customs sources said the shipping line concerned has been bold enough to issue Bills of Lading for illegal cargoes transported in ships that has never called at the Colombo port, violating all norms of maritime regulations.

An investigating officer said "this type of illegal exports will have a negative impact on the Sri Lanka's export industry as well as on the ISFTA operations," adding that it will also ruin the credibility of the Sri Lankan exports.

Assistant Director of Customs D.H.J.W. Ponnamperuma, Customs Superintendent G.D.N. Hettiarachchi and Assistant Superintendent D.M.A. Dissanayake are conducting further investigations under the directions of Deputy Director L.M. Nelson.