The Court of Appeal has dismissed a writ petition filed by Sena Mills Refineries Pvt. Ltd.seeking an order preventing customs from causing investigations and inquiry into 24 containers of palm oil.
The petitioner Sena Mills Refineries Pvt Ltd had cited Director General of Customs and Chief Assistant Preventive Officer of Customs as respondents.
Preventing operations branch of Sri Lanka Customs detained 24 containers declared as Crude Palm Fatty Acid (CPFA) in March 2016 and caused investigations.
Having referred the drawn samples to accredited laboratories in Sri Lanka and overseas for physiochemical analysis and product identification, it has been confirmed that the product is palm oil with a free fatty acid content ranging from 16-20%. Since the product has been declared by the consignee “Sena Mills Refineries Pvt Ltd” as crude palm fatty acid, it was never referred for certification under food act and Sri Lanka standards.
The maximum free fatty acid content stipulated for imported palm oil under the gazette notifications published in line with the Food Act and Import Control Act is 5% for crude palm oil and 0.1% for RBD (Refined Bleached and Deodorized) palm olein. As described in the expert opinion submitted by Dr.Janak Vidnarachchi, senior lecturer, faculty of Agriculture, University of Peradeniya on the laboratory reports, containing of higher percentage of free fatty acid in palm oil poses threats of heart deceases and cancers. Approximately 17,000 MT of same product in 850 containers has already been imported by the same company since 2012.
The importer had declared that the product crude fatty acid he imports is subjected to a refining process in Sri Lanka and improves to come within the stipulated 0.1% FFA before released to the market as RBD palm olein.
As revealed at the investigations, the importer through his exporter in Malaysia had submitted a manufacturing process describing the product crude palm fatty acid as obtained from the top of the distillation columns during the distillation process of palm oil.
The investigation officers had sought the assistance of Malaysian palm oil board on this issue and MPOB having conducted investigations on the manufacturer/exporter in Malaysia, has reported that the product crude fatty acid is a blend of RBD palm olein and palm fatty acid distillate in the ratio of 75%-25% which has been done on the request of the importer in Sri Lanka.
When the investigations were carried out by customs, the importer sought a writ of mandamus by the case CA/Writ/158/2016 filed in the Court of Appeal claiming that since a classification ruling has been issued by the Nomenclature and Classification Committee of the World Customs Organisation, detention of containers is unlawful and no further investigation or inquiry could be carried out on this importation by Customs.
However, the Attorney General representing the Director General of Customs argued that the product imported has not properly declared to customs and also the product is adulterated palm oil although it is declared as crude palm fatty acid. He also pointed out that importation of adulterated food is prohibited by Section 2 of the Food Act No 26 of 1980 and become a restricted article for import in terms of section 12, 43 and 47 of the Customs Ordinance thus shall be forfeited. Further he argued that containing of higher level of free fatty acid in palm oil makes it unfit for human consumption.
According to the judgment, the Court of Appeal Justice Preethi Padman Surasena was of the opinion that the action of the customs to detain the 24 containers is well within the law and that there were reasons to believe the commodity declared as crude palm fatty acid is adulterated palm oil. Hence the Court sees no reason to prevent customs from causing investigations and inquiry into the importation. The writ application filed by Sena Refineries Pvt Ltd was dismissed with cost.
President’s Cousel Romesh de Silva on the instructions of D.L.& F.de Saram appeared for the petitioner. Deputy Solicitor General Milinda Gunathilake appeared for the respondents.
Add new comment