Auto dealers blindsided by title certificate reform

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Auto dealers yesterday revealed they have been blindsided by legal reforms that threaten to create “more and more bureaucracy” by changing how vehicle imports are cleared when they arrive in The Bahamas.

Fred Albury, principal for the Auto Mall, which holds the Toyota, Hyundai and BMW dealerships, told Tribune Business that much depends on implementation of the requirement that a title certificate - confirming ownership - must be obtained and paid for before any vehicle imported into The Bahamas is released by Bahamas Customs.

Confirming that himself and other dealers were unaware of this requirement, until this newspaper brought it to their attention, he said more clarity is needed on the proposed process and how it will work and be executed in practice.

In particular, Mr Albury queried whether legitimate new and used car dealers, who often import in bulk, will be treated differently from individuals who are typically bringing in just one to two autos at a time. And he also raised the issue of how autos placed in bonded storage, before being transferred to dealerships, will be treated.

The Auto Mall chief explained that, under the present system, with new vehicle imports he typically presents their overseas title certificate or certificate or origin to Bahamas Customs. Once the due VAT and import duties are paid, dealers are issued with a “duty paid receipt’ by Customs and the auto is released to be taken to the Road Traffic Department for inspection and completion of the licensing/registration process.

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.

This adds another step to the vehicle import clearance process. Leon Lundy, minister of transport, in written replies to Tribune Business inquiries justified the changes as part of efforts to improve safety and compliance with the road traffic regime, plus boost administrative efficiency and “modernise” the vehicle licensing, registration and inspection process.

The South Andros and Mangrove Cay MP 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”.

But Mr Albury, while backing the Government’s plans in principle, said much depends on how the new certificate of title procedures are implemented in practice otherwise “they are just creating more and more bureaucracy and avenues to collect money”.

Confirming that the Bill has been circulated among Bahamas Motor Dealers Association (BMDA) members, but acknowledging it may be too late now to influence the Government on the legislation, the Auto Mall chief told Tribune Business: “The concerns we would have would be how they handle the new car dealers, or used car dealers, the licensed dealers because when we import it will be for stock and onward sales.

“Are they going to title them in the dealer’s name and transfer it over to the client? Then, on top of that, we have vehicles that go into bond. How are they treated? I wish there had been some consultation between the dealers and Ministry of Transport and Road Traffic Department before it was finalised.”

Mr Albury also challenged whether it will be Customs or the Road Traffic Department issuing the import title certificates, adding that - if it was the latter - it would need to have vehicle inspection facilities down at the Nassau Container Port where virtually all new car imports to New Providence enter this nation.

“If they are going to this extent, do it for the good of the consumer,” he argued. “This is an opportunity to capture stuff like wrecked vehicles coming into this island as rebuilt vehicles. Right now, it’s not done like that at all. These wrecked vehicles need to have some sort of engineer’s report when they are taken for inspection.

“These vehicles come in, they get duty paid on them, go to a body shop and are fitted up like brand new and sold to the unsuspecting public unless the vehicle has a Carfax report from the US that the insurer can use to determine if they are wrecked or rebuilt.”

Speaking to the title certificate as a concept, Mr Albury told this newspaper: “I think that, in a nutshell, it’s a good idea if implemented correctly and people do what they are supposed to do.

“But you have a very limited window of time to remove vehicles from the dock. We have to take into consideration that, if Customs has to do this, how long it will take them. Is it going to hold up shipments at the port? It might cause us to incur a storage fee. It’s how it’s implemented and how it’s going to be looked at. It’s clarity in how it’s implemented and works in practice. It’s another blow to not consulting with the industry out there. There should have been some consultation.”

Ben Albury, the Bahamas Bus and Truck general manager and BMDA president, told Tribune Business he was unaware of the title certificate reforms until informed by this newspaper. “This is news to me,” he said.

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.”

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