Court lifts order in Chinese fertilizer case

The Colombo Commercial High Court today (03) lifted the enjoining order issued against Chinese fertilizer manufacturer Qingdao Seawin Biotech Group Co., Ltd, its local agent and the People’s Bank.

It came after the two local fertilizer companies informed the court that they have reached a settlement with regard to the controversial fertilizer shipment.

As per the settlement, the People’s Bank would release 75 per cent of the consignment value to Qingdao Seawin in terms of the Letter of Credit.

The Chinese company will obtain and provide certification for the raw material ingredients, and arrange fresh samples of a new consignment of organic fertilizer to be tested.

In terms of the contract, the samples should be free of pathogens and to ship the consignment only after the tested samples have been found to be in compliance with the Plant Protection Act, No. 35 of 1999, and after an import permit is obtained for the bulk shipment.

The amount released by People’s Bank will be set off after Qingdao Seawin has shipped the second consignment.

The parties have agreed to issue a statement saying the first shipment was returned due to the absence of an import permit.