The Government has extended until December 31, 2026, a 50% surcharge imposed on the applicable Customs Import Duty on specified imported motor vehicles.

The surcharge, imposed under Section 10A of the Customs Ordinance (Chapter 235), will apply from August 15 to December 31, 2026, on both General and Preferential Customs Import Duty rates.

President Anura Kumara Dissanayake, in his capacity as Minister of Finance, Planning and Economic Development, issued the relevant order on August 13.The order provides an exemption for specified motor vehicles for which Letters of Credit had been established on or before May 15, 2026, subject to certain conditions.However, the 50% surcharge will apply if key details of such Letters of Credit are amended, including the number of vehicles, vehicle identification number, vehicle description, technical specifications or the expiry date.

The surcharge will also apply where the shipped-on-board date on the Bill of Lading or Airway Bill falls after November 15, 2026, despite the Letter of Credit having been established on or before May 15.