The Tribune

By Neil Hartnell

Tribune Business Editor

nhartnell@tribunemedia.net

The Bahamas Motor Dealers Association’s (BMDA) president says “it would be really nice to avoid confusion and uncertainty” as he pleaded with the Government to consult the industry over planned vehicle title certificate reforms prior to their July 1 implementation.

Ben Albury, also Bahamas Bus and Truck’s general manager, told Tribune Business that the sector is seeking to avoid being “blindsided or caught off guard” amid the lack of clarity over how the legal requirement for all imported vehicles to obtain a title certificate before they can be cleared and released by Bahamas Customs will operate in practice.

Acknowledging that his “first reaction” to the Road Traffic Act amendments was “what kind of strain is this going to impose on top of everything else”, he argued that The Bahamas always seems to be introducing new measures and compliance mandates rather than fixing systems that are “broken” or failing to deliver the results envisaged.

Mr Albury spoke out amid multiple unanswered questions over how the vehicle title certificate requirement will work in practice and impact dealers’ vehicle import clearance operations. 

The BMDA chief explained that, currently, all they require is a slip from Customs confirming that the necessary import duties and VAT have been paid to remove an auto from the dock and take it to the Road Traffic Department for inspection, licensing and registration.

Now, with the new vehicle title certificate mandate, Mr Albury said it is unclear whether dealers such as Bahamas Bus & Truck will have to be registered as the owner until an auto is sold to a purchaser and the title transferred. 

Other uncertainties involve whether it will be Customs or Road Traffic issuing the title certificate upon importation, and if vehicles will have to be inspected at the Arawak Cay port dock - something Road Traffic will have to be capacity for.

Dealers also place some imported vehicles into a bonded warehouse in a bid to better manage cash flow by not having to pay due taxes upfront, only removing them when they need to replenish stock, and it is unclear whether they will need to have a title certificate prior to being placed in bond or after.

“We wish there was more consultation, more opportunity for us to come in and discuss these things with the Government. We’re always happy to come in,” Mr Albury told this newspaper. “It would be nice to have a good understanding of it. I have had people coming in and calling me, messaging me with questions, including other people in the industry.”

Acknowledging that, to-date, he has been unable to provide many answers, the BMDA chief added: “It would be nice if the Government would pause and just go over these changes. We don’t want to be blindsided or caught off guard when these things come into place. A lot of times these things are not there one day and there the next.

“It would really be good to avoid confusion and uncertainty and what have you, and then these things they [the Government] are trying to accomplish can be accomplished without having to take certain measures. 

The BMDA is always willing, and would love to sit down and work with the Government when major changes are taking place.

“Government has to do certain things, that’s to be expected, but we’d like that to be done with some clarity and information. This is nothing new; this is successive administrations. We would love an opportunity to sit down and have some discussions. I reached out last year to try and have get a meeting to discuss some points and concerns we have, but we have not had that opportunity.”

Mr Albury said that, with regard to new car sales, no title certificate is presently obtained and issued until the auto is sold to its first purchaser. However, under the Road Traffic (Amendment) Bill 2026 that was tabled in Parliament alongside the 2026-2027 Budget, a new section 30A will be created in law to mandate that importers of motor vehicles into The Bahamas must obtain a certificate of title for every auto before they are released by Customs.

No vehicle can be registered, licensed or driven on the road unless such title certificate is first acquired, and any violators of this proposed legal requirement face a fine of up to $1,000, imprisonment of up to six months or both. 

The Bill also seemingly does not distinguish between bulk vehicle importers, such as new and used car dealers, and Bahamian residents and citizens importing just one auto for their personal use.“If all that is is trying to grab more revenue, that could be done by adding a small fee,” Mr Albury argued. 

“I don’t know, Neil, you have as much information as I do. That’s the problem. It makes me wonder whether Customs brokers know what’s going on. Are they educated on this? Is this going to be phased in, or is it that I come to work on Monday and there’s a shipment of vehicles to be cleared? Is it going to cause clutter and chaos out there?

“It’s just uncertainty and a lot of unknowns, which is an avoidable problem to have. I think it’s long overdue to have a number of conversations, like the reduction in licence fees for electric vehicles, which are known to be heavier vehicles. Why that tax should be lower than a small gasoline or diesel-powered car? It doesn’t make any sense. It seems like in our industry we’re always the last ones to know.”

Noting that the auto industry contributes significant tax dollars annually to the Public Treasury, but struggles to catch the Government’s attention, Mr Albury said his initial thoughts when he heard of the vehicle title certificate reforms was the impact on the ease of doing business.“That was my first reaction, my first thought,” he told Tribune Business. 

“What kind of strain is this going to be when it goes in on top of everything else that has to be done. There’s always something.“It seems like there are always so many things that are implemented in this country that are broken. We ought to be good to go after some of these before we introduce a lot of new things that don’t really seem to be necessary. I just have to go down the road. Where do I start?”

The Road Traffic (Amendment) Bill 2026 also introduces a $125 vehicle licensing fee for electric autos, which is lower than all gasoline and diesel-powered rivals, plus a new category for such autos weighing between 3,000 and 5,000 pounds. 

Gasoline and diesel auto owners, from July 1, face having to pay $160 if they weigh up to 3,000 pounds; $215 if they weigh between 3,000 and 5,000 pounds; $610 if they weigh between 5,000 and 15,000 pounds; and $760 if over 15,000 pounds.

Bahamian motorists face having to pre-pay for their vehicle’s annual inspection, and fines if they fail to renew its licence and registration on time, as part of the Government’s drive to boost road safety and compliance with a “modernised” traffic regime.

The Road Traffic (Amendment) Bill 2026’s fifth clause is designed to amend section 32 in the existing Act by requiring vehicle owners to pay the annual inspection fee to the Road Traffic Department “before the inspection is conducted”. This will mark a major cultural shift, as both Bahamians and residents have grown accustomed to paying this fee after the inspection - and only if their auto is deemed roadworthy enough to pass.

However, the proposed Road Traffic Act change stipulates that the inspection fee “shall be payable whether or not a certificate of fitness is issued” - meaning that no refund is available for motorists whose vehicles fail to pass. And, for those owners whose autos are deemed not roadworthy, they will have to pay the inspection fee again whenever these deficiencies are fixed and they present the vehicle for a fresh examination by Road Traffic Department officials.

And, apart from paying inspection fees in advance, the Bill also inserts new sections into the Road Traffic Act that will impose a “penalty” on motorists who fail to bring their vehicle forward for inspection, and the annual renewal of its licence and registration, before the latter expires. In other words, if a vehicle’s licence and registration expires in January, but it is not presented to the Road Traffic Department until March that year, a fine equal to the annual registration fee will be triggered.

The only way for Bahamian motorists who find themselves in this predicament to escape the fine, according to the Bill, is for an “approved mechanic” to verify that their vehicle had broken down during this period or the owners supply evidence of “any other reasonable cause” why it was not drive-able. The Bill, though, does not define who is an “approved mechanic”.

Mr Albury argued that the provision stipulating that owners of vehicles that fail inspections must pay again is “harsh” when set against many Bahamians struggles with the cost of living, fuel, auto insurance and other costs. 

He added that some may “not realise their tail light is out”, or suffer such mechanical defects on their way to the inspection.However, Leon Lundy, minister of transport, in written replies to Tribune Business, said mandating that vehicle importers obtain a certificate of title before Customs clearance is approved will help to create “a more secure and reliable vehicle ownership system within The Bahamas” and “reduce opportunities for fraud”.

Mr Lundy said the Government and road traffic authorities are aiming to “establish a clear chain of ownership from the moment a vehicle enters The Bahamas”, improve “the integrity and accuracy of the national vehicle registry” and “reduce opportunities for fraud, ownership disputes and unauthorised transfers” with the title certificate change.

This, he added, will “strengthen the ability of law enforcement and regulatory agencies to trace vehicle ownership” plus “improve confidence for financial institutions, insurers and consumers by providing a secure ownership record”. 

And it will also pave the way for further digital vehicle registration and title management initiatives.

“This amendment forms part of a broader effort to establish a more secure and reliable vehicle ownership system within The Bahamas,” Mr Lundy said. 

“Requiring a certificate of title before a vehicle is released from Customs ensures that ownership information is captured and verified at the earliest point of entry into the country.“

Administratively, this approach eliminates the need to retroactively establish ownership records after vehicles have already entered circulation. It ensures that all vehicles entering the jurisdiction are properly documented before they are registered and licensed for use on public roads.

“Ultimately, the measure supports the Government’s long-term objective of creating a modern, transparent and efficient vehicle registration system that enhances public confidence, strengthens regulatory oversight and improves service delivery.”