Importers look for relief for survival from loss of business
Sri Lankan importers are scrambling to clear goods currently considered as essential items as well as non essential merchandise ordered by large number of them before COVID-19 crisis.
Operating instructions issued by Import and Export Control Department on March 24 and the slow processing of documents and red tape of the bureaucracy have pushed local importers from the frying pan to the fire, the Colombo Importers Association has complained.
The import section of the Ceylon Chamber of Commerce has brought to the notice of the authorities of difficulties and issues faced by the Controller General of the Department.
But no action has been taken to mitigate the unprecedented situation for importers due to COVID-19 pandemic except for the appointment of the committee headed by the Treasury Secretary to facilitate affected importers.
The local import sector is incurring heavy losses and it is on the verge of collapsing as a result of the sudden action of government authorities being taken without any consultation of relevant stakeholders, the association sources said.
Around 25,000 freight containers are piled up at Colombo Port and importers have to pay a 300 per cent bank guarantee and high taxes as well as demurrages after experiencing difficulties in clearing their goods.
In a letter to the Treasury, importers have urged to consider shipments in transit, prioritise shipments already arrived at the Colombo Port and grant approvals urgently as cargo incur demurrage continuously.
Further the Department of Import and Export Control has been urged to facilitate the COVID-19-hit importers by considering their issues on a case-by-case basis by opening an electronic gateway and speed up processing requests.
Importers also requested to waive off the demurrage incurred by containers from March 16 until normalcy is restored in the country.
The letter also sought to consider releasing delivery orders on bank indemnity pending reference to load port/shipper as they maybe unavailable to respond promptly resulting in delays in clearing cargo.
On the same lines, they requested to consider releasing delivery orders pending settlement of charges due to the inability of many companies to process cheques or payments on time.
The letter noted that the Sri Lanka Ports Authority, Colombo International Container Terminals, and South Asia Gateway Terminals have also been requested to waive storage charges and rent levied from shipping lines, consignees, importers and exporters.