BOI clarifies import of post-consumer goods for re-export

• Says Hayleys Free Zone imported 130 containers of used mattresses and carpets for re-export
• Has decided to take stern action against company for failure to re-export goods in entirety 

The Board of Investments (BOI) yesterday issued a clarification on import of post-consumer goods for re-export.

It said the recent reference in media regarding 102 containers of contaminated material imported by a BOI enterprise is factually incorrect. The consignee of the said goods is not a BOI enterprise, operating within a BOI zone or otherwise. These containers are lying in the Port of Colombo.

Clarifying on the activities of a BOI enterprise operating under Hub Regulation No. 01 of 2013, namely Hayleys Free Zone Ltd., the statement said the BOI has permitted this company in May 2014, to operate an integrated logistics centre and entrepot trading as permitted activities within the Katunayake Export Processing Zone. 

HFZL had imported from the UK 130 containers of used mattresses and carpets for the purpose of re-export, in October 2017. Out of these containers 29 containers have been re-exported.

However, in January 2018, having observed that a significant amount of this cargo was unloaded/stored within the free zone premises without being re-exported as envisaged, BOI has given written instructions to the company to strictly comply with commitments laid out in the BOI agreement and the applicable environmental regulations. Simultaneously the BOI took further steps to suspend all future import of used material and the company committed to clear all cargo by end February 2018. 

The company however, has failed to meet this commitment and has from time to time requested extensions to comply, citing technical and other constraints.

Since the company has failed to re-export the goods as committed the BOI has decided to take stern action against the company with a view to concluding this matter expeditiously.