Used car dealers lose hybrid lawsuits

NISSAN Serenas are not considered fully hybrid and are subject to import duties and taxes, a High Court judge has ruled.

Justice James Aboud, in an oral decision delivered at the Hall of Justice on Friday, held that the decision by the Comptroller of Customs to impose duties and taxes on Nissan Serena vehicles was in keeping with Section 10 of the Finance Act No 2 of 2016, which introduced a waiver and defined a hybrid car properly.

Aboud, in his ruling, said, “It is clear the Nissan Serena does not fit the definition of hybrid vehicles.”

The judge was asked to determine whether Nissan Serenas were exempt from taxes in a claim brought by two central-based foreign used car dealerships who were denied clearance of their “hybrid vehicles” unless they paid duties and taxes.

Euro Car Parts of Charlieville and D&D Auto World, of Freeport, contended that the Nissan Serenas were exempt from duties and motor vehicle taxes by virtue of what was contained in the 2016/2017 fiscal budget (Finance Act of 2016).

Their lawsuit said on March 14 and 16, respectively, they imported a number of Nissan Serenas. They say the vehicles are described as hybrid both by the exporter and Japanese manufacturer.

In his decision, Aboud found no fault with the investigation by the Customs Division’s tariff classification committee, which determined that hybrid vehicles must be propelled by an internal combustion engine and a rechargeable battery.

“Both must work together to drive the car forward,” the judge said, adding that the dealerships failed to provide their own scientific-based evidence to counter the comptroller’s.

Aboud said the comptroller was duty-bound to comply with and uphold the law and was entitled to keep the bond paid by the two dealerships– $75,483.23 paid by Euro Car and $350,016.49 paid by D&D Auto – which represent the duties and taxes owed on the vehicles.

The dealers’ lawsuit argued that the budget provided that taxes and duties should not be charged on a hybrid vehicle with an engine size not exceeding 1999cc, which is capable of being propelled by a combustion of an internal combustion engine and an onboard rechargeable energy system or other energy storage device.

The dealerships said when their vehicles entered the country, their brokers were told they would only be released if the taxes and duties were paid.

The two dealerships are represented by attorneys Jagdeo Singh, Kiel Tacklalsingh, and Stefan Ramkissoon. Tricia Ramlogan and Linda Khan appeared for the comptroller.