Page 31 - Annual Report 2020.ai

Whilst the association bears this burden, in support of the national economy, there are
four areas that the CMTA seeks the Government’s assistance on;

1. Curtailing the implementation of ‘ad-hoc’ policy

a. For example, the sudden ban on vehicle imports has created an issue where
our members have vehicles that were on order at the point of the

imposition of the ban.
b. Converting these LC’s to 365 days credit is not possible when dealing with

the manufacturer as their business processes do not allow for changes to
terms of trade on an ad-hoc basis

c. This could lead to banks not honoring confirmed irrevocable LC’s which
brings the trading reputation of the Country and our banks into jeopardy

d. Disallowing the import of selected spare parts, causing significant strife to
our members

2. Creating a level playing field
a. CMTA members are respected corporates, ensuring their dues to the

department of Inland Revenue (IRD), statutory obligations are fully paid
and that they are fully compliant with required disclosure to their Registrar

of Companies under the Companies Act.
b. If the Government requires that all motor vehicle importers have to be

‘registered’ and makes the above compliance a requirement for
registration, this would ensure all importers were competing under the

same set of rules.
c. This registration could also ensure that consumers were adequately

protected.

3. Ensuring transparency in the levying of customs duty

a. Transparency of custom duty is invaluable for a level playing field within the
industry.

b. Value based taxation can be manipulated, and a duty regime that
safeguards circumvention will ensure a more level playing field within the

industry.

4. Recognition of CMTA
a. The CMTA represents all major international automobile manufactures

through their local agents. Our members are in effect the ambassador of
the manufacturer in Sri Lanka.

Annual General Meeting 2020/21