PURCHASERS of vehicles, recently seized by the Customs Department in its case against Key Motors, could have to await the outcome of court proceedings against Desmond Panton before they are able to regain possession of their property.

In addition, the unfortunate purchasers could find it extremely difficult, if not impossible, receiving compensation for loss of use during the period.

Panton, owner of Key Motors, was scheduled to face the Corporate Area Criminal Court on September 14.

A highly-placed Customs official said Wednesday that the department expects to return the vehicles to their owners before the court date, but was hesitant in giving a specific date.

“We don’t want to give a definite date,” the official said while reminding that the vehicles are being held as evidence in its duty evasion case against Panton.

The Customs Department, on Tuesday, charged the Key Motors boss with evasion of customs duties and taking steps to defraud the Government of taxes and duties.

Customs officials also shut down the operations of Key Motors, the authorised dealer for Hyundai vehicles in Jamaica.

“We are extremely sorry for the customers but certain amount of investigations would have to be done,” the official said.

Speaking on the issue of loss-of-use for the period purchasers would be without the use of their vehicles, the Customs official, who requested anonymity, commented that “Key Motors would have to be consulted about that.”

Former president of the Insurance Association of Jamaica, Andrew Levy, made it clear that even though the seized vehicles may have been insured, insurance companies would not compensate owners for any loss of use in this instance.

“There is nobody to claim on other than Key Motors,” said Levy.

He explained that loss of use was a legal concept and whether there is insurance or not, owners are entitled to recover from the party at fault.

“The incident is the seizure of the vehicles by government and they have a right to do that,” Levy asserted.

Over last weekend the Customs Contraband Enforcement Team (CET) repossessed ten vehicles sold by Key Motors to unsuspecting purchasers over a period of more than a year.

According to reports from Customs, its CET discovered that 50 vehicles amounting to approximately $40 million in duties were illegally removed from the bonded warehouse at Key Motors on Hagley Park Road in Kingston, unlawfully licenced and sold.

The official however made it clear that all 50 illegally sold vehicles would not have to

be confiscated.

“On the strength of Customs documents all the cars will not have to be seized in order to make a case against Key Motors.”

Typically, auto dealers are allowed to take possession of imported vehicles and hold them in a bonded warehouse without paying Customs duty. Relevant import duties and taxes are then paid over to Customs when the vehicles are sold.

However the Customs Department charged that Panton’s company, for a period in excess of a year, sold vehicles from its bonded warehouse without remitting the duties.

Editor’s note: Customs Department yesterday returned nine of the seized vehicles.