Professionals urge Government to allow vehicle imports
View(s):A group of professionals, with letters of credit established before the ban on vehicle imports using concessionary permits with foreign suppliers, is urging the Government to allow shipping of these motor vehicles.
The group under the name “Group of Affected Professionals Established L/Cs before 19th of March 2020” consists of more than 300 members including doctors, engineers, lecturers, accountants and other government executives who have opened L/Cs to import vehicles for personal use while some have even placed orders prior to October 31, 2019 – more than one year ago.
Due to the COVID-19 pandemic, many barriers around the world resulted in delays of importation of these vehicles. Subsequently, when the orders were ready to be shipped, the directives issued by Import and Export Control Department restricted shipping of vehicles after May 21, 2020 by a circular issued on May 29 in accordance with Gazette Notification No.2176/19. Despite the ban it is noted that certain parties continued to ship vehicles violating these circulars after May 21, the group said in a statement.
However, a subsequent Gazette issued by the Import Controller dated June 19 and revised on June 26 allowed to clear such vehicles which were shipped to the country between May 22 and June 16 while the ban is imposed for importation of vehicles favouring those who shipped the vehicle while the ban is in place. The affected group has further encountered an immense financial and physiological trauma due to not having a clear solution to the above mentioned issue.
In September this year letters were sent to the authorities highlighting this issue to which responses and solutions are yet to be received. Further, many other organisations have already submitted multiple requests to the authorities seeking a solution in this regard.
Speaking on the issue at hand, a member of the group noted, “Our vehicles have been manufactured and are ready to ship since last May 2020. Out of the 300 vehicles 120 are parked in Singapore Port and others are at foreign yards belonging to suppliers incurring damages to the vehicles. Foreign/local suppliers have demanded to pay demurrages and port charges of Rs.600,000 as at date. Further, these vehicles ordered through irrevocable letters of credit cannot be cancelled either which would be a violation of international import laws”.
Some members have paid advance payments as local agents’ commissions of Rs.300-500,000 which is also non-refundable and LC charges of Rs.100,000 so far.
The group would also like to note at this juncture that it understands the Government’s decision to enforce the ban during these troubled times but would like kind consideration also placed on the issues mentioned above, and the fact that valuable foreign exchange is also leaving the country via payment of demurrages etc.