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| Sunday, 4 May 2003 |
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Motor traders express concern over project to assemble vehicles The Ceylon Motor Traders' Association (CMTA) expressed its concerns on the Board of Investment (BoI)-approved project to assemble motor vehicles using imported used and second-hand vehicle parts and its impact on Sri Lanka's transport sector. This project has serious negative repercussions on Sri Lanka and the motor trade of our country, Chairman CMTA Ajit Algama told a media conference last week. The Association comprises franchise holders for the import of brand new motor vehicles. It is affiliated to the Ceylon Chamber of Commerce. Algama said: "Our principals invest millions of dollars in developing safety measures and use highly advanced technology when manufacturing motor vehicles. Stringent quality control on parts used in manufacturing vehicles is considered a 'must' to safeguard passengers. Regarding this project, it is questionable how safe these motor vehicles will be on our roads. Assembling motor vehicles utilising used or second-hand parts is not permitted in any other part of the world". He said that only cars that are three years old and commercial vehicles that the five years old are currently permitted to be imported to Sri Lanka and asked what controls the BoI would have, to prevent these imported used and second-hand parts filtering into the local market. "We also would like to know what import duties would be levied on these spare parts and what tax holidays will be granted to the company importing these items," he said. The CMTA also voiced concerns over the environmental hazards which could arise with used and second-hand parts. After several representations were made to the authorities on this matter, the Investor Facilitation Committee decided to recommend the cancellation of the BoI approval granted for the project. "However, we have been made to understand that certain politicians are highly interested in the project and are making every effort to put pressure on the BoI to permit this project to go ahead, ignoring the detrimental effects it will have on our country," Algama said. "Apart from the concerns of our principles in relation to licensing, they are also concerned about the assembly of vehicles with used or second-hand parts, since this would seriously undermine the integrity of their companies and their brands and will lead to violation of intellectual property rights," he said adding that they have appointed a firm of lawyers to act on the matter. Meanwhile, the BoI has released a statement on the issue which says: "A number of companies have applied for projects to assemble motor vehicles for the local market. "In response to strong opposition to these projects, the BoI has suspended import/export facilities to such projects pending a decision by the Attorney General on issues raised therein." |
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