CAR GLOOM
Published on: 4/18/06.
by NEVILLE CLARKE
BARBADOS' USED-CAR BUSINESS could be on its deathbed.
Chief spokesman of the Used-Car Dealers' Association, Noel Euzebe, made this gloomy prediction during a recent interview with the DAILY NATION.
Explaining his outlook on the sector, Euzebe said: "We, the used-car dealers, recognise now that there seems to be an effort on to run us out of the business. We did not want to believe that originally, but what is happening now suggests to us that the car business as it stood over the past ten years is supposed to come to an end.
"I have received some disturbing information from people importing motor vehicles recently and if this is now the normal course of action, the used-car business is not coming to an end; it has already come to an end," Euzebe added.
He recalled that recently the value of a used car was questioned by the Customs Department and the importer ended up paying over $30 000 in Customs duty for a vehicle that was valued at $38 000.
Euzebe cited another case where an importer got the value of his car increased, paid the duty and when he did all of his additions, he ended up paying $8 000 more for the car than the amount valued by the garage.
"This is what is happening in Barbados. We talked to all sorts of people, high and low, and we realise now that this problem is not going away," said Euzebe.
Addressing the charge that used-car dealers were engaged in "highway robbery", he said while Customs was asking them to increase the import cost of a four-year used car out of Japan that had already recorded 50 000 kilometres, from US$3 500 to US$8 000, new cars imported out of the same market carried an invoice price of just over US$10 000.
"People are being told that a four-year-old car is valued at US$7 000 and US$8 000 by Customs. The only way you can get your car is if you agree to have your car valued by Customs at that price. However, Customs is accepting values from a new car dealer for the same type of car at US$10 000," he lamented.
Euzebe said that of the 250 vehicles impounded by the Customs Department, documents for about 50 were being processed by Customs.
He warned importers that once cars were in the port for more than 30 days without documents being submitted to Customs for clearance, they could be sold by auction.
Since last December, the Customs Department impounded over 100 vehicles claiming they were under-invoiced.
When contacted, Acting Comptroller of Customs Joseph Best said: "Partof the Customs mission statement speaks to facilitating legitimate trade. It is not Customs' intention to hinderthe flow of trade once the goods declaration meets the necessary criteria. Under these circumstances the relevant goods, including used vehicles, would be released.
"If we need to do further investigations, we are prepared to do so. Declarations are subject to verification," Best added.
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