There is no hindrance for milk powder importers to clear their consignments from the Port if they have followed the stipulated procedure, Customs Legal Affairs Deputy Director and Media Spokesman Sudatta Silva said.
He said the Customs has held back an imported milk powder consignment of one particular company as there is an ongoing investigation of misusing ‘open accounts’ method by that company.
Representing the Milk Powder Importers’ Association, Lakshman Weerasuriya recently told the media that nearly 400 MT of imported milk powder remains within the Colombo Port warehouses as the Customs has refused to release them, despite an ongoing shortage.
Speaking to the Daily News on this matter, the Customs Spokesman said that the imported milk powder consignment by that particular company would not be released until the investigations are over. While refuting the charges by Weerasuriya, he said that it was an attempt to disrupt the ongoing investigation.
“There is no issue if the importers of food have followed the normal procedure of making advance payments. The Government restricted importation under open accounts to protect the remaining foreign exchange. Local banks have been instructed to give priority for fuel and medicine imports. Despite that, some businessmen imported goods under open accounts and that was illegal. It also resulted in foreign exchange outflow through a thriving black market,” he explained.
He said that industrialists were allowed to import under open accounts with the recommendation of the Industries Ministry, in order to protect local industries, adding that the milk powder company in question had misused that permission to import milk powder.
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