The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A Ministry of Finance official yesterday confirmed that vehicle owners with comprehensive insurance could still take advantage of the duty exemptions issued over New Providence’s May flooding, while addressing auto dealer concerns over how Customs was applying this.

John Rolle, the financial secretary, clarified the Government’s exigency policy after auto dealers expressed concern that owners of flood-damaged vehicles, who had comprehensive insurance, were effectively “double dipping” by taking advantage of the duty exemptions to import new vehicles.

Vehicle owners with comprehensive policies are usually able to obtain compensation for their auto’s full value, thus enabling them to obtain a new car with ease.

But, while auto dealers suggested this meant comprehensive policyholders should not be able to also access the Customs exemption, especially given the Government’s cash-strapped status, Mr Rolle said they were allowed to do so - albeit with conditions attached.

The Financial Secretary also eased dealer concerns about the way Customs is allegedly applying the policy, stating that flood victims could purchase vehicles already in the Bahamas and still receive the exemption.

His comments came after auto dealers contacted Tribune Business over what they described as the confusing way in which Customs, and other government agencies, were treating the flood-related exigency.

“They’re calling it an exemption by Customs, which means you can only get it off on a vehicle you import,” one dealer, speaking on condition of anonymity, said.

“As a dealer we can’t sell them one out of inventory already here and apply that [exemption] to the price of a vehicle.

“It has to be a vehicle from the outside, an imported car. As a result, customers feel they’re getting the run around.”

The dealer added: “It’s encouraging people to buy from the States, rather than here.

“There’s been no written clarification on how the process is supposed to work. There appears to be a different perspective from NEMA, a different perspective from Customs and a different perspective from the Ministry of Finance.

“It’s obvious they haven’t worked the process through to produce a defined approach.”

However, Mr Rolle refuted this, explaining that the flood-related exigency was structured to allow consumers to purchase vehicles already in the Bahamas from local dealers.

“Once persons have got their exemption certification, they can use it to make local purchases,” he told Tribune Business. “It’s not necessary that they have to buy a vehicle from abroad.

“The local auto dealer provides the equivalent discount from Customs duties off the price, and they [the dealer] are then entitled to claim that credit from the Government.”

As to the other concern, one dealer told Tribune Business: “It appears that people who have claimed on their comprehensive insurance - we know of at least two - and who have got their insurance payments, are also trying to get their exemptions.

“I don’t think you should be able to double dip. It’s causing a bit of confusion.”

However, Mr Rolle confirmed to Tribune Business that the Government had decided to make the duty exemptions available to owners of flood-damaged vehicles who had comprehensive insurance coverage.

This, though, was on the condition that the relevant insurance companies disposed of their clients’ flood-damaged vehicles, thus ensuring they did not become an environmental hazard.

Explaining that there had been no distinction in the past between vehicle owners how did, and did not, have insurance, Mr Rolle suggested: “The experience in dealing with exigencies is not as great in New Providence, so that may be why confusion is occurring.”