The Hon. (Dr.) Harsha de Silva

¶ 01 Hon. Deputy Speaker, the Minister said the e-commerce problem is now solved. I wish to know how. Under the new system, were HS-code duties paid and goods cleared, or by some other method?

¶ 02 I have two key issues within 12 minutes: e-commerce parcels and third-country LCs for vehicle imports.

¶ 03 On e-commerce: a fit-for-purpose clearance process is lacking, as is a proper duty-and-tax framework for low-value B2C personal imports. Previously, courier mode applied a per-kilogram tax. Some misused courier B2C to bring commercial B2B volumes. With e-commerce growth, many countries updated systems. Customs told platforms on 24 April they would discontinue per-kilo taxing and move to HS-code duties from May; later stakeholders asked to continue per-kilo until ready; Customs insisted on updating. We discussed this at the Public Finance Committee on 3 June; Customs proposed a new approach. Social media showed large shipping/processing charges (e.g., Rs. 1,500 item, Rs. 37,000 shipping), and congestion at Customs. We need clear answers: was HS-based assessment implemented? How will we proceed?

¶ 04 We need urgent reforms: update document registration; enable pre-declaration before arrival; adjust the de minimis policy properly. The 2018 Mangala Samaraweera proposal envisaged a USD 50 de minimis per person, not per consolidated consignment. Also, requiring TIN per line item for personal parcels is impractical. Decide: either a tax-free de minimis threshold (e.g., USD 50 per consignee) or a low flat tax (say 5–15 percent) for B2C low-value parcels, and above that, assess by HS code for B2B/commercial. Also consider differentiated treatment between local platforms that invest, employ and pay taxes, and foreign platforms with no presence; provide incentives to locals and ensure proper collection from foreign platforms. Implementation choices—whether the customer pays or the platform collects and remits—must be clarified. Introduce pre-declaration and streamline ASYHUB capacity so it doesn’t crash with thousands of line items.

¶ 05 On third-country LCs and vehicles: since 2013, used cars are not to be imported via third-country LCs. Yet till now it was not properly implemented. Hubs like Singapore, Dubai and Thailand aggregate vehicles and sell. Now many vehicles are blocked in Hambantota, and talk is of re-export. But these are irrevocable LCs from major international banks; we cannot just revoke them. We should find a practical solution: consider hub realities, define “used” properly (mileage/days anomalies exist), and address why third-country LCs are allowed for brand-new but not used vehicles. Do not force re-export suddenly when for years practice differed; consider a transition mechanism to resolve for shipments already afloat or arrived, and enforce prospectively with clarity.

¶ 06 We present these to help the Government solve issues affecting the middle class and small entrepreneurs.

¶ 07 Thank you.