Auction war
A MEETING between Jamaica Used Car Dealers Association (JUCDA) and the commissioner of customs is tentatively set for today, or some time next week to iron out differences regarding new auction rules.
The Customs Department last week informed importers that once vehicles at the Queen’s Warehouse in Kingston are placed on the public’s auction list, they will remain there until sold, unless stated otherwise.
“Customs will be meeting with the used-car dealers this Friday (today) or early next week to review several issues of mutual concern as it relates to provisions of the Customs Act and new administrative arrangements,” Major Richard Reese told Auto.
A former Jamaica Defence Force (JDF) officer, Reese indicated that the move would assist in bringing in revenue for the Government, while streamlining operations at customs.
“We’re practical people…with the ASYCUDA (Automated System for Customs Data) world, the business rules will give better control and accountability,” he said.
An auction is set for this month.
Lynvalle Hamilton, JUCDA president, labelled Reese’s proposal inconsiderate and urged him to rethink it.
“The law allows for discretion and, in such a harsh economic climate, it is expected of the commissioner of customs to exercise such,” said Hamilton.
“For decades, it has been the practice of past commissioners of customs to facilitate clearance of motor vehicles that were previously published for public auction, so long as clearance is done before the auction date, a practice which is of reasonable discretion and is in the best interest of all. The decision of Major Reese to curtail such a practice is inconsiderate, draconian, and lacking in vision of a public official who should want to see the growth of Small and Medium Enterprises in the country,” he continued.
Hamilton, a former soldier in the JDF, said that many of the vehicles placed on auction are fully paid for by importers.
“In most cases, the importers are obligated to pay the suppliers for them and come at a great loss to used-car dealers when they are sold at Queen’s Warehouse auction, putting their businesses at risk of folding,” he said.
Hamilton said the Government should be more accommodative in exercising reasonable discretion to protect businesses.