At least 70 Plug in Hybrid Electric Vehicles (PHEVs) have been blocked from clearing by Sri Lanka Customs as it is still to determine specific classification/HS code for those vehicles, motor traders complained. Previously importers who made PHEV custom declarations on the basis of electric car have been permitted to clear PHEVs by paying duty [...]

The Sunday Times Sri Lanka

Around 70 PHEVs await Custom clearance due to classification issue

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At least 70 Plug in Hybrid Electric Vehicles (PHEVs) have been blocked from clearing by Sri Lanka Customs as it is still to determine specific classification/HS code for those vehicles, motor traders complained.
Previously importers who made PHEV custom declarations on the basis of electric car have been permitted to clear PHEVs by paying duty of electric car and keeping a bank guarantee for the difference of duty between and hybrid car and an electric.

But, motor traders have been informed by the Deputy Director Customs (imports) that all facilities granted by the customs for clearance under bank guarantee were withdrawn on the verbal instructions of the Director General of Customs.
The technical evaluation committee appointed by the customs to determine the classification /HS code for the PHEV has already submitted its report to the DG customs but no action has been taken to introduce the new HS code.

According to a 2008 Supreme Court ruling in a case filed by an importer, it has determined that in the event there was no specific HS code for an imported item the importer may use the lower duty and submit a bank guarantee for the duty difference, motor traders added.
They said that they were contemplating legal action for double standards adopted by the DG customs by allowing some importers to clear their PHEVs on a bank guarantee and depriving the others of the same facility.

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