Sri Lanka Customs earns Rs225mn from misclassified mandarin import
ECONOMYNEXT – Sri Lanka Customs has earned 225 million rupees from misclassified mandarin imports after officials detected some traders importing under wrong classification to evade duty, its Spokesman Seevali Arukgoda said.
“We have earned 225 million from the detection of misclassification of Kinnow hybrid mandarin,” Arukgoda told EconomyNext.
Kinnow is a hybrid variety of mandarin and imported by Sri Lankan traders mainly from Pakistan for more than two decades under Pakistan-Sri Lanka Free Trade Agreement (PSFTA).
Both mandarin and its hybrids had been classified under the same HS code until the World Customs Organization in 2017 revised the classification with pure mandarin separate from hybrids of mandarins.
Importers, however, had declared the Kinnow incorrectly under the same HS code used for pure mandarin which is given tax concession under the PSFTA, the sources said.
Sri Lanka Customs has detected the error recently and advised the importers to change the HS code accordingly.
“We recovered the import duty from the importers considering Kinnow under the separate HS code,” Arukgoda said.
Customs sources said there is no no provision to give grace period for importers as well as reduction in duty as per the laws. (Colombo/July 04/2025)
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