The importer was accused of making declarations stating a lower motor capacity — 100 kW from the actual 150 kW — so that lower customs duties can be charged.A Sri Lankan court here on Wednesday ordered the release of a second lot of Chinese BYD electric vehicles (EVs), held by the Customs over an alleged misrepresentation of their motor power.
The Court of Appeal’s verdict to release 506 Chinese EVs came after the official dealer, John Keells CG Auto, sought relief for the second time within a month.
All 506 cars are subject to submission of additional bank guarantees of 1.8 billion rupees to Sri Lanka Customs by the dealer.
The Customs wanted tests to be done to verify if the engine power of the EVs had been falsified in the import documents to gain an undue tariff advantage.
This was the second lot of Chinese BYD EVs held by the Customs over the alleged misrepresentation of their motor power under customs tariff classifications.
In July, a similar consignment of 1,000 EVs from Chinese manufacturer BYD was held at Sri Lanka Customs over suspected undervaluation of motor power to reduce excise duty, officials told the parliamentary oversight committee.
The Customs reached a Court of Appeal settlement in August with the importer to release over 900 units while the tests to verify motor power were pending.
The importer was accused of making declarations stating a lower motor capacity — 100 kW from the actual 150 kW — so that lower customs duties can be charged.
The customs tariff for a 100 kW motor is four million rupees lower than for a 150 kW motor.
BYD experienced brisk sales after Sri Lanka allowed car imports in February this year for the first time in five years. By May, within 3 months, they captured almost 90 per cent of the electric car market and over 10 per cent of all car sales.
