Foreign donations for IDP welfare:

Ministry clarifies policy on custom duty

Ministry of Finance and Planning issuing a clarification yesterday on certain media reports said that while items which are produced locally such as rice, biscuits, bottled drinking water, soap, tea, tooth paste, tooth brushes etc. will not be considered for duty concessions in view of the adverse impact on local manufacturers, urgently needed essential requirements will continue to be released on duty free basis on the recommendation of the Ministry of Nation Building and Estate Infrastructure Development.

Already large stocks of essential requirements for welfare villages such as medical equipment, pharmaceuticals, mobile hospital units, tents etc. have been cleared by the customs on duty free basis.

"The reason for taking such a decision was that after the tsunami in December 2004, local producers were adversely affected due to the large influx of foreign donations of rice, biscuits etc on a duty free basis. Large quantities of imported biscuits, bottled drinking water, soap, tea, tooth paste, tooth brushes etc. Bottled drinking water incurred additional transport costs in excess of the value of the items and there was no need to import water," said a press release issued by the Government Information Department.