VIASL urges Customs to resolve hybrid vehicle classification issue

Friday, 21 March 2025 00:45 - - {{hitsCtrl.values.hits}}

VIASL President Prasad Manage disputes Sri Lanka Customs’ classification of Nissan X-Trail and Toyota Raize as non-hybrid SUVs
Claims Customs refuses to acknowledge hybrid classification leading to major clearance delays
Opines reclassification leads to significant taxes; X-Trail duty rises from Rs.6 m to Rs. 12-14 m, Raize from Rs. 10 m to Rs. 30 m
Importers face clearance delays despite submitting necessary documents to Sri Lanka Customs’ HS Classification Unit

The Vehicle Importers’ Association of Sri Lanka (VIASL) yesterday raised concerns over a classification dispute with Sri Lanka Customs, claiming that the Nissan X-Trail and Toyota Raize — both recognised as hybrid SUVs by Japan Customs have been categorised as non-hybrid vehicles under new regulations.

Speaking at a media briefing, VIASL President Prasad Manage stated that Japan Customs has classified Nissan X-Trail (1,500cc engine) and Toyota Raize (1,200cc engine) under category 870340 – which denoted hybrid vehicles.

However, Sri Lanka Customs has refused to acknowledge this classification, leading to major clearance delays.

“After cross-checking with the vehicle manufacturers and Japan Customs, we confirmed that these SUVs are indeed hybrids. Yet, Sri Lanka Customs insists on classifying them differently,” Manage explained.

He pointed out that this classification dispute has resulted in a significant tax increase for these SUVs.

“Under the hybrid classification, Nissan X-Trail duty is Rs. 6 million and Toyota Raize duty is Rs. 10 million. But under non-hybrid classification; Nissan X-Trail duty is Rs. 12-14 million and Toyota Raize duty is Rs. 30 million,” he elaborated on the tax difference under different categorisation, whilst adding that these hybrid models offer fuel efficiency of 25 km per litre, citing them a valuable addition to local market.

Manage also highlighted that both these SUVs feature the latest hybrid technology, known as the series hybrid system and relevant documentation has already been submitted to Sri Lanka Customs’ HS Classification Unit.

VIASL President called on the authorities to provide an immediate solution as importers are struggling to clear vehicles already held at Customs.