BCC gets approval to import desiccated coconut with a tax wavier
As a short term solution for the prevailing coconut shortage in the country, the Government has decided to import dried coconut slices (disintegrated dehydrate coconut kernel with brown skin), to meet the demand of related industries mainly coconut oil manufacturers.
In a joint Cabinet memorandum of the two ministries of plantation and industries, a quantity of 13,000 tones of dehydrated coconut chips will be imported to manufacture coconut oil and coconut milk to supply edible oil locally without any scarcity.
Sri Lanka’s state-owned BCC Lanka Ltd has been given the sole authority to import desiccated coconut (DC) with a special commodity levy (SCL) special concession by reducing it to Rs.1 from Rs. 300 per kg with effect from November 24, 2021 easing the existing import restrictions.
Finance Minister Basil Rajapaksa has imposed Rs. 300 rupee import tax on DC – HS Code 08.01 in the form of the SCL for six months, starting from November 24, documents, presented to Cabinet, show.
This tax wavier and the monopoly given to BCC Ltd will result in the Treasury foregoing tax revenue of Rs.3.88 billion and an additional cost of Rs. 27.3 billion (US$13.65 million) to import this quantity, provisional estimates showed.
This concession was specially given to the state-owned business enterprise to pass its benefit to consumers.
The frozen-sliced coconut will have to be imported either from India, the Philippines or Vietnam to manufacture coconut oil.
The main purpose is to revive the non operational factories and oil mills due to shortage of raw material and supply the local consumer with a high quality, secured affordable edible coconut oil, Chairman of BCC Lanka Ltd Chaminda Welegama told the Business Times.
Imported raw material will be distributed only among industries which are registered with the Ministry of Industries and the Coconut Development Authority.
The BCC will import and distribute dehydrated coconut chips at an affordable price among manufacturers and oil millers in accordance with their production capacity, he said
The Industrial Development Board will monitor the selection of eligible industries and new applicants being carried out by the CDA, he disclosed adding that the importation of these coconut slices will be made in accordance with the requirement of manufacturers.
The importation will be made on the basis of 1500 metric tons per single shipment in order to prevent large sums of foreign exchange outflows while adhering to the distribution of raw material as per quota system in accordance with the requirement, he revealed.
Further the BCC will purchase processed coconut oil from manufacturers and oil millers in accordance with a forward sales agreement (buy-back arrangement) signed by the company with the All Ceylon Traditional Coconut Oil Producers’ Association.
This will enable the BCC to market coconut oil under its brand name at a reasonable price for the benefit of consumers; he said pointing out that any of these manufacturers are also allowed to sell their products without control.
The company is also exploring the possibility of exporting coconut oil along with virgin coconut oil and coconut milk to countries and regions like France, Maldives and West Asia, he disclosed.
Hitad.lk has you covered with quality used or brand new cars for sale that are budget friendly yet reliable! Now is the time to sell your old ride for something more attractive to today's modern automotive market demands. Browse through our selection of affordable options now on Hitad.lk before deciding on what will work best for you!