Sri Lanka Customs denies new tax on small parcel imports via e-commerce

Friday, 4 July 2025 01:00 - - {{hitsCtrl.values.hits}}

Sri Lanka Customs yesterday categorically denied claims circulating that a new tax has been imposed on small parcel imports via e-commerce platforms, stating that the recent changes merely aim to ensure the correct duty is charged based on accurate product valuation and classification.

“There has been no increase in Customs duty and no halt in the clearance of parcels. We are simply charging the correct amount based on their actual value.” Previously, most of these items were undervalued and once we identified the loophole in the system, it was decided to apply the correct Harmonised System (HS) codes for all these items,” Customs Spokesman and Additional Director General Seevali Arukgoda told the Daily FT.

He also stressed that e-commerce platforms, importers, and courier companies were informed well in advance of the system change, with a month-and-a-half notice and a two-week adjustment window.

Arukgoda explained that the previous practice of assessing duties based on parcel weight or a blanket fee created opportunities for under-invoicing and misuse. The new system, which uses the HS code classification of goods, is intended to better match items to their true market value and characteristics.

“Sri Lanka Customs collects about Rs. 1 billion per month through e-commerce platform parcel clearances per month. With the correct HS codes now in place, we would be able to generate higher revenue monthly going forward,” he said.

The Spokesman also rejected claims that parcels are held up at Customs. “All parcels have been cleared after the duty has been collected,” he assured.

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