Private vehicle imports to resume from 1 Feb.

• Issues Extraordinary Gazette outlining stages and conditions 
• Three stages include passenger buses, goods transport vehicles and private vehicles
• Importers must register vehicles within 90 days or face late fees capped at 45% of CIF value
• Violations may lead to suspension from vehicle imports for up to 36 months or mandatory re-export
• Non-motorised items must be new, with strict age limits on motor vehicles
• Finance Ministry notes measures aim to safeguard foreign exchange reserves, prevent stockpiling by importers

President Anura Kumara Dissanayake yesterday in Parliament announced that the Government will allow private vehicles to be imported from 1 February 2025. 

Following the move, the Government also issued an Extraordinary Gazette No. 2415/35 yesterday, citing three categories that it allowed to be imported. These include motor vehicles for the transport of 10 or more persons, including the driver; motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 87.02), including station wagons and racing cars and special purpose motor vehicles, other than those principally designed for the transport of persons or goods (for example, breakdown lorries, crane lorries, fire fighting vehicles, concrete mixer lorries road sweeper lorries, spraying lorries, mobile workshops, and mobile radiological units).

Addressing the Parliament, President Dissanayake said that the imports will be carried out under a structured program, assuring that the decision will not lead to another foreign exchange crisis. 

Stating that the vehicle industry cannot remain closed for a long period of time, the President said the vehicle imports will commence in three stages.

Dissanayake revealed that importing of buses used for passenger transport and vehicles used for special services was resumed from 14 December 2024. 

The President further announced that the Government has also taken steps to recommence the importation of vehicles used for transportation of goods and private purposes, which will come into effect from 1 February 2025.

In a separate statement from the Finance Ministry, the Imports and Exports (Control) Regulations No. 14 of 2024 under the Imports and Exports (Control) Act, No. 1 of 1969 has been promulgated through the Gazette Notification No. 2415/35 to allow importation of public passenger transport vehicles and special purpose vehicles and other non-motorised items with wheels classified under 52 HS Codes under Stage I subject to following conditions;

i. Imported motor vehicles should be registered with the Department of Motor Traffic within ninety (90) days from the date of Bill of Entry/Customs Declaration (CUSDEC).

ii. If it is failed to register any imported motor vehicle within the stipulated time period by the importer, such importer shall be liable to pay a monthly late fee of 3% of the Cost-Insurance-Freight (CIF) value of the said motor vehicle, at the time of registration of motor vehicle at the Department of Motor Traffic, where a maximum cap on the payment of the monthly late fee for such late registration is limited at 45% of the CIF value of respective motor vehicle. 

iii. Any motor vehicles, imported by an importer for trading purpose shall not be registered in the name of such importer or in the name of the Company, or in the names of Directors of the Company and, it should be registered in the name of the buyer.

iv. If any importer, who has imported more than 25% of his or her total imported motor vehicles during a period of six months in violation of the condition of registration of motor vehicles within 90 days from the date of importation, the said importer shall be suspended from importation of motor vehicles for a minimum period of 36 months.

v. If any importer imports a vehicle classified under Chapter 87 of the HS Code Classification in violation to these Regulations and/or any prevailing Rules and Regulations applicable on importation of motor vehicles), such motor vehicles(s) shall be re-exported by the respective importer within 90 days from the date of the Bill of Entry/Customs Declaration (CUSDEC) with all associated costs borne by the said importer.

vi. When determining the age of the motor vehicle, the period between the date of Manufacture and the date of the Bill of Lading/ Airway Bill of that motor vehicle shall be calculated.

vii. In case non-motorised items with wheels are imported, such vehicles should not be used ones. These conditions have been imposed with the intention of safeguarding foreign exchange reserves of the country by way of discouraging importation of an excessive number of vehicles and keeping unnecessary stock of motor vehicles by the importers, while spending substantial amounts of foreign exchange.