Court orders CAA to release unlawfully seized chocolate shipment back to Customs
Friday, 3 October 2014 06:09
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A highly-significant case was reported from the Negombo Magistrate Court last week. It was a tussle between the Customs and the Consumer Affairs Authority (CAA), concerning the jurisdictions vested in the two Government institutions under the respective laws, under the Consumer Affairs Authority Act (No. 09 of 2003) and the Customs Ordinance.
The CAA investigators on 30 May apparently acting on information had raided a Customs bonded warehouse at Global Park and seized a consignment (a load of 4x40 foot containers) of chocolate.
This shipment had been imported under entrepot trade facility for minor processing and re-shipment and strictly not for the domestic market.
The CAA had carried out the raid without obtaining permission from the Customs and CAA had not informed the Customs even after the seizure of the goods imported only for relabeling at the designated Global Park Customs bonded warehouse under Customs supervision.
At the trial into this case Lawyer Nagananda Kodituwakku appeared for the enterprise engaged in the entrepot trade took up an unprecedented step by conceding that his client had imported the shipment of expired chocolate for relabeling and re-shipment and save the valuable time of the Court by stopping leading of evidence of 13 witnesses produced by the CAA who were trying to prove the very same fact.
The Counsel then went on to prove that the CAA had illegally intruded into an area strictly coming under the Customs’ purview.
On 24 September, the Court made its order acquitting all the accused charged in the case with an order made to release the shipment to the Customs with immediate effect.
This was clearly a case of misunderstanding and total ignorance on the part of the CAA investigators. Under the Consumer Affairs Act No. 09 of 2003, the CAA could carry out investigations only in the cases affecting internal trade and this consignment had been imported under entrepot trade facilitation strictly for export market.
Therefore the sole authority on the consignment has to be exercised by the Customs, the watchdog at the border that enforces all laws that impose various restrictions and prohibitions including the Consumer Affairs Authority Act.
The shipment of chocolate which the CAA claimed expired had been imported under the commercial hub operations announced by the Government, under the exemption granted by the Finance Act (No. 12 of 2012), which include the application of Import Control Act, Exchange Control Act and the Customs Ordinance, that empowered the Director General of Customs by law to enforce all restrictions and prohibitions imposed not only under the Customs Ordinance but under any other written law including the Consumer Affairs Authority Act.
The evidence elicited from the head of the Customs Bonds Directorate was clear on this point and he clearly informed the Court that had this shipment been imported for local consumption it would have been definitely confiscated on arrival, which may also attract penalties and further forfeitures imposed on the importer.
