The Maldives Customs Service cancelled the import declarations for two containers of cigarettes brought into the country before a reduction in cigarette duties, despite legal advice from the agency's legal department, Adhadhu has learnt.
Customs cancelled declarations numbered R31649/2026 and R31651/2026. These declarations pertained to two containers of cigarettes that arrived in the Maldives last month. Adhadhu understands that both containers were imported under a single Bill of Lading (BL).
The importing company requested the cancellation of the declarations for these two containers after the government announced its decision to revise cigarette duty rates.
Sources informed Adhadhu that under the duty rates applicable at the time, the duty for each container amounted to MVR 38 million. The total duty for both containers stood at MVR 76 million.
However, if the declarations for these two containers are resubmitted now, the duty payable per container would drop to MVR 19 million. This would result in a total loss of MVR 38 million in state revenue.
Sources told Adhadhu that the Customs Legal Department had advised that goods brought into the Maldives and declared before the duty reduction could not have their declarations cancelled to be re-imported under the new, lower rates.
Despite this legal counsel, sources stated the cancellation was carried out following instructions from certain high-ranking Customs officials. Adhadhu has obtained documents related to the matter.
The Parliament passed amendments to the Export-Import Act to reduce cigarette duties on July 1. The President ratified the bill on July 2.
According to Customs regulations, goods that arrive in the Maldives before an amendment to the Export-Import Act takes effect can only be processed under new duty rates if a declaration had not been submitted before the amendment coming into force.
