Financial Times

Duty free tsunami aid must go through govt. channels
Foreign donations for tsunami victims received by the public should be channelled through relevant government authorities to qualify for duty free status, the Ministry of Finance and Planning announced last week.

Such duty concessions will be valid only for goods cleared up to April 26, 2005, it said in a statement. The ministry's guidelines for the expeditious clearance of relief and reconstruction items are as follows:

In order to protect domestic rice producers, rice imports will be discouraged and duty waivers will not be granted for consignments of rice being sent as relief goods, the ministry said.

All such consignments of rice imported will be kept in bonded warehouses. New garments and textiles would be cleared free of duty provided they are handed over to the Director of Social Services for use by the tsunami victims.

Duties would be charged for used garments and textiles and if duties are not paid or cargo is abandoned, the Director, Social Services will dispose them in a suitable manner, the statement said.

Tents could be cleared free of duty provided they are suitable for local conditions and are handed over to the Director, Social Services or to the Ministry of Relief, Rehabilitation and Reconciliation or Commissioner General Essential Services.

Building materials and building construction machinery and equipment would be cleared free of duties and taxes on the recommendations of the Urban Development Authority.

School supplies, pencils, paper and shoes for school children would be cleared free of duty provided consignments are handed over to the Director, Social Services for distribution among school children in affected areas under their supervision.

Medicines and medical supplies and medical and surgical equipment which comply with regulatory requirements would be cleared free of duty provided they are consigned to the Director General of Health Services. Alternatively, donors may be allowed to hand over these items to government hospitals or medical camps with the approval of the relevant health authority.

Water pumps and water purification equipment would be cleared free of duty if the equipment is installed under the relevant District Secretary. Gully emptiers and water bowsers would be cleared free of duty subject to consignments being handed over to the Ministry of Relief, Rehabilitation and Reconciliation for distribution among District Secretaries or local authorities.

Generators would be cleared free of duty subject to consignments being handed over to the Director, Social Services to be distributed under the supervision of District Secretaries and Divisional secretaries or relevant government agencies.

Communication equipment would be cleared only on the recommendations of the Telecommunication Regulatory Commission and the Ministry of Defence. Electrical appliances, consumer durable and computers and computer peripherals should have prior clearance from the Treasury before being handed over to the appropriate authorities.

All other relief items meant for tsunami victims would be released without duties and taxes on condition that such items will be handed over to the Director, Social Services, Secretary, Ministry of Relief, Rehabilitation and Reconstruction or to specified government authorities for distribution among intended beneficiaries.

However, after the security clearance the Director, Social Services and Secretary, Ministry of Relief, Rehabilitation and Reconciliation can release relief-related items falling under this category to the donors for the distribution among intended beneficiaries under the supervision of relevant District Secretaries or the Divisional Secretaries.

The Finance Ministry said that all consignments should comply with regulatory and security clearance procedures. Concessions on duties and taxes on relief supplies received by the UN agencies will be granted by the Treasury in terms of the Memoranda of Understanding signed with them.

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