By: Staff Writer
December 08, Colombo (LNW): Sri Lanka Customs is set to launch a motor vehicle verification system to combat fraudulent vehicle imports and safeguard the country from revenue loss.
By accessing the Customs website and entering a vehicle’s chassis number, users can verify if the vehicle was legally imported.
This initiative aims to restore public confidence in vehicle transactions and address a significant tax evasion scandal.
The system’s introduction follows the discovery of a major fraud involving over 200 luxury vehicles.
These vehicles were falsely registered in the Motor Traffic Department (MTD) database as having been imported before 2005 to evade customs duties.
The scam, which involved high-end models like Jeeps, Land Cruisers, and Monteros, has caused the government an estimated loss of Rs. 3 billion in unpaid taxes.
The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) initiated an investigation after receiving a tip-off about 400 vehicles registered without paying duties. Customs records for 51 of these vehicles were missing, prompting immediate legal action.
On April 5, 2024, Colombo Chief Magistrate Prasanna de Alwis issued an interim order suspending ownership changes of the 51 vehicles in question.
At a press conference, Customs Media Spokesman Additional Director General Seevali Arukgoda highlighted the benefits of the new system.
Users will be able to verify vehicle import details from anywhere in the world, ensuring transparency and reducing fear among buyers about unknowingly purchasing illegally imported or assembled vehicles.
Additionally, Customs has implemented a new data and tracking system to facilitate smoother import-export processes. The system enables importers to track the location of containers worldwide, addressing congestion and inefficiencies in customs clearance.
Legal action has been swift, with the Colombo Chief Magistrate’s Court issuing summons to six individuals, including a Deputy Commissioner of the Motor Traffic Department, a software developer, clerks involved in vehicle registration, and two importers.
They face charges under the Anti-Corruption Act of 2023, the Bribery Act of 1994, and the Customs Ordinance. Twenty seized vehicles have been handed over to Customs for further investigation.
The fraudulent activity reportedly stems from a loophole exploited during the pre-2021 period, before the government imposed a vehicle import ban due to the economic crisis. With restrictions on imports set to be lifted in February 2025, concerns about systemic vulnerabilities persist.
CIABOC has pledged to take strict legal action to address the financial losses and ensure accountability.
Investigations into the remaining 349 vehicles continue, with the Bribery Commission working to bring all perpetrators to justice. Sri Lanka Customs hopes that the new verification system and stricter monitoring will prevent future incidents of corruption and bolster the integrity of the import-export process.
