Exporters warn against surcharges on import/export trade

The Exporters Association of Sri Lanka (EASL) yesterday warned that surcharges on import and export trade were resurfacing and any concrete moves to that effect would be highly damaging.

“It is evident by the recent press articles that, some elements are trying to influence the authorities to reintroduce TCH and other surcharges, which will render the Import /Export trade very uncompetitive,” EASL said in a statement. 

Former EASL Chairman Lyn Fernando took up this issue with the removal of surcharges coming in to effect back in 27 December 2013. EASL says that prohibiting this levy as a separate fee paved way for importers and exporters to be charged an all inclusive freight rate.

EASL maintains that the ratification of the above legislature brought recognition to the trade practice of Sri Lanka, which were heralded in several internationally recognised forums as a model to be emulated. Among several of those world-famous trade bodies were the Global shipper’s forum, which had its Annual General meeting in Sri Lanka in August 2016. 

African countries such as Nigeria also confirmed having followed Sri Lankan recommendations to have a clear interpretation on surcharges such as the THC to be in line with internationally famous trade terms that are released by the International Chamber of Commerce-ICC’s latest update of INCO terms.

EASL says the new rules brought in clarity where shipping agents, NVOCC operators, consolidators etc. were no longer in a position to impose arbitrary charges and burden importers and exporters with unnecessary additional costs, making the trade uncompetitive.

Prior to the new legislature coming in to effect, some agents were found guilty of violating exchange control regulations, where much needed foreign exchange was lost due to illegal remittances.

EASL claims that the argument raised by shipping agents, NVOCC operators and consolidators that the ruling is unfair is baseless and absurd. They argue that this makes all service providers maintain transparency in their pricing and gives them the freedom to offer any price provided it is all-inclusive and without any hidden cost.

EASL warns that if these surcharges are reintroduced, they will work against the new path set by the Government to boost international trade and rapidly build Sri Lanka’s economy to a competitive level in comparison to other developing countries in the region.