Authorized dealer was not the importer of mis-declared Audi A5 cars: CMTA

Dec 02, 2019 (LBO) – The Ceylon Motor Traders Association (CMTA) says that the sole authorized dealer for Audi in Sri Lanka was not the importer of the 13 units of mis-declared Audi A5 cars.

Issuing a clarification into the previous statement released by the association on this matter, the CMTA said the importation was done by certain parallel importers who had mis-declared the engine capacity to gain a tax advantage incurring a massive loss to the country.

The full statement issued by the CMTA is reproduced below.

The Ceylon Motor Traders Association (CMTA) wishes to clarify that Drive One (Pvt) Ltd., the Sole Authorized Dealer for Audi in Sri Lanka was not the importer of the 13 units of mis-declared Audi A5 cars. The importation was done by certain parallel importers who had mis-declared the engine capacity to gain a tax advantage incurring a massive loss to the country.

It was the Association along with the Vehicle Importers Association of Sri Lanka (VIASL), who brought this anomaly to the notice of the Director General of Sri Lanka Customs on September 30, 2019 where the issue and anomaly was clearly articulated to all present. The meeting was followed up with a letter dated 7th October 7, 2019, a copy of which is enclosed.
These particular parallel importers have imported 13 units of Audi A5 cars which were found to be 2,000 CC petrol engine cars but declared as 1,400 CC. This mis-declaration results in an approximate duty loss to the Government of Sri Lanka of Rs.160,000,000/= and the loss of revenue per vehicle is approximately Rs.12,300,000/=.

As the authorized dealer, Drive One (Pvt) Ltd, has confirmed that Sri Lanka Customs had visited their office to verify the actual cubic capacity (CC) of the said A5 cars and Drive One had confirmed that they are 2000cc and not 1400cc as declared, by showing the Audi Online Computer system and followed by a written confirmation.

The CMTA wish to inform the public to be weary of purchasing these cars under investigation, because they could be seized by the Customs at any time. The Association also appeals to the Sri Lanka Customs and the Ministry of Finance, to take possible action on the parallel importers and the persons concerned who supported the scruples act.

The Ceylon Motor Traders Association, established in 1920, represents all the international automotive manufactures, through their local agents in Sri Lanka.

Related: CMTA appeals Customs to take action for Rs160mn duty loss on 13 Audi vehicles