It has been reported that Hon. MP & Deputy Minister of Justice Sujeewa Senasinghe called in at the Customs to pressurise senior officials to release a container load of Copper Rods on behalf of businessman. The story goes on to say say this particular businessman imports 8 MM Dia. rods to be redrawn to 6MM & 3MM for re-export.
According to sources 18 container loads of similar imports previously has been sold on in the local market without re-exporting after necessary process. As re-export stock these are declared as duty free. When they are sold locally the required duty has to be paid. The businessman has been making massive profits exploiting this loop hole.
The copper rods were imported by a local company under the
Temporary Import for Export Processing (TIEP) scheme. Items imported under this
scheme with duty-free concessions cannot be sold in Sri Lanka. Total loss to the state coffers has been estimated at Rs. 100 million because of this racket.
Last year the companies filed a case in the Court of Appeal
seeking the release of the container after the Customs Preventive Division
impounded it. Deputy Minister Senasinghe appeared for the companies in the
Court of Appeal case.
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