Some imported confectioneries contain substances banned in Sri Lanka, say local manufacturers

Sri Lanka’s confectionery industrialists – responsible for providing that sweet taste in your mouth – last week expressed concern that the Anti-Dumping Regulations Bill is yet to be placed in Parliament despite being approved by the Cabinet.

The Lanka Confectionery Manufacturers Association (LCMA) referred to this issue during its 24th AGM held in Colombo.

Shanasz Hameem, Chairperson, LCMA, placing the annual report before the membership said this piece of legislation is very important for the country but found it very strange that the Government which is trying to fasttrack Free Trade Agreements (FTAs) is not giving the same importance to a safeguard mechanism for the local industry prior to entering such FTAs.

She said that the Government should clear doubts of the local industrialists by providing answers to their queries such as establishing a manpower regulatory mechanism; scrutinising and authorising foreign investments; establishing proper domestic regulatory mechanism with regard to all services liberalised under the General Agreement on Trade in Services (GATS); urgency of activating anti-dumping measures in Sri Lanka; need for an effective national trade policy and implementing the recommendations made by the professionals of Sri Lanka in the ‘Way Forward to Liberalisation’.

She pointed out that the products of the local manufacturers are of the highest international standards and quality as they are competing with the quality products manufactured in the countries to which they export to and therefore the Government has a responsibility to create a level playing field for local industries as otherwise Sri Lanka will have to totally depend on imports to meet the needs of the country’s population which would aggravate the balance of payment.

The LCMA lamented the lack of a new Food Act to meet modern conditions as the country is still under the old 1980 Food Act with few amendments that is now apparently obsolete. Ms Hakeem said that they were aware that the Food Advisory Committee of the Ministry of Health is working on a draft but its outcome is yet to be announced.

She said that similarly a draft of new Labeling Regulations has also been made and it was sent to them for their observations.

Sri Lanka loses revenue due to under-invoicing of all types of products and therefore the LCMA urges the government to introduce the MRP (maximum retail price) system of taxation on import duties in addition to applying it on cess to prevent under-invoicing, she pointed out.

The association was also critical about the checking process of imported products prior to clearing of imports as they are not happy about the present process of random checking by the Sri Lanka Standards Institution and points out that a study should be made of the procedures adopted by neighbouring countries in this regard such as India to test all imports prior to the release of these products inwards by the Customs.

She made it clear that the Public Health Inspectors should check food products as products especially some confectioneries in the market do not comply with the local regulation as they contain ingredients banned in Sri Lanka.

She also appreciated that their struggle over the years has yielded some benefits from the Government for their industry. They received a reduction on the import duty of maize grits from 25 per cent to 15 per cent and on lollypop paper sticks from 7.5 per cent to nil. The Special Commodity Levy on confectionery fats of Rs 175 per kilo was removed and the previous tariff of duty and cess was re-introduced amounting to a total of Rs. 135 per kg. Also, the LCMA was able to resist unfair lobbying of two local palm oil refiners to further increase the tax on vegetable fats.