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| Sunday, 3 November 2002 |
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Business |  |
| News Business Features Editorial
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Travails of 'cut portion' importers The import of vehicular 'cut portions' and seats which remain restricted following a budgetary decision in 2000, has contributed immensely to escalating transport costs in the country, the Used Motor Spares Importers Association (UMSIA) said recently. "The ordinary man - the person who runs a van, school or office service or does anything relating to transport - has been badly affected by this move by the previous government to restrict these imports," UMSIA President, Buddhika de Silva said. It has retarded the growth of this industry and eaten into its overall turnover, he told a recent news conference in Colombo. After the import of 'cut portions' and seats was restricted and placed under import licence, prices of existing stocks spiralled and is now beyond the reach of an ordinary vehicle owner, he explained. 'Cut portions' could be easily purchased earlier at a relatively low price as a replacement in case of an accident. However, with the restriction of imports, vehicles have to be taken to a garage for the time-consuming process of manual straightening, welding, tinkering and painting, de Silva said. UMSIA Vice President, Reggie Lindsay White said: "We believe that the import of 'cut portions' was restricted to prevent 'budding' of vehicles - welding and rejoining vehicles cut into two. If this is being done illegally, surely there are adequate laws in this country to deal with such elements. Such 'budded' vehicles have no legitimate documentation and they can be easily detected by the Customs or the police." "Despite the enhanced import duties and the yen appreciating, we sold 'cut portions' and seats at reasonably low prices because we were able to purchase them at competitive prices. Foreign currency was also saved. For over 10 years we did not increase our prices. If one were to bring down a 'cut portion' under the current import licence system, it would take at least three months and would incur tremendous cost," de Silva explained. Vehicular seat imports were also restricted, he said, as they came under the 'used furniture' Customs classification. Locally-made seats are not of the required safety standards unlike those made by Japanese companies under close supervision. The availability of 'cut portions' also helped insurance companies and saved a lot of hassle, White said. |
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