Court orders warehouse to pay MVR 20.7 million in unpaid import duty
The court ruled that the unpaid import duty must be settled within 14 days.
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The Civil Court has ordered SGM Bonded Warehouse to pay MVR 20.7 million in unpaid import duty after cigarettes were imported and removed from the facility without informing Customs.
The ruling followed a case filed by Maldives Customs Service in July 2025, which sought recovery of the unpaid duty and action over the unauthorised release of goods from the bonded warehouse.
According to the judgment, SGM imported 430 cases of American Legend brand cigarettes and 250 cases of Afzal Molasses brand pipe tobacco on the vessels Max Condenta in April and June 2018. The goods were cleared by Customs and transferred to the bonded warehouse.
Customs later instructed SGM to pay the duty, and a cheque was submitted on 20 September 2018. However, the cheque was dishonoured due to insufficient funds, after which Customs suspended the company’s services.
An inspection in December 2024 found the bonded warehouse premises empty and converted into an apartment. Customs confirmed that the goods were no longer on-site, leading to the conclusion that they had been released without authorisation.
The court ruled that the unpaid import duty must be settled within 14 days.
Under the General Customs Regulations, import duty is payable at the time goods are placed in bond. Warehouse operators are also liable for duty if bonded goods are damaged, destroyed, stolen, or otherwise removed without Customs’ approval.
