Funeral homes challenge import duties on hearses

FUNERAL-home owners have received the court’s permission to pursue a claim against the Comptroller of Customs over a classification of their hearses which carries higher import duties.

Justice Jacqueline Wilson granted leave to the Association of Funeral Professionals of TT (AFPTT) to file for judicial review of a decision to classify left-hand-drive hearses under a tariff heading used to describe vehicles principally used for transporting people.

The association claims the classification, which should be under a heading described as special-purpose motor vehicles, attracts a higher rate of customs duties of 67.6 per cent – the highest rate of common external tariff – while the other tariff code which they say should be used carries a rate of zero per cent.

The association contends that the “unlawful classification” has led to members paying an excessive rate of import duty.

It will be seeking a declaration that the comptroller’s decision to classify left-hand-drive hearses is unlawful and will ask the court to quash the decision and order the comptroller to use the correct classification.

In June 2019, the comptroller, who is empowered to make classification rulings on imported items, informed Simpson’s Memorial Ltd of the new classification for left-hand-drive Lincoln Town Car hearses that will attract a rate of duty of 67.5 per cent. By November, all the members of the association learned of the new classification.

The association will argue that “arbitrary taxation,” without the consent of Parliament, was contrary to the rule of law.

The lawsuit says the funeral home business and the industry were at risk because of the classification and tariffs imposed on left-hand-drive hearses.

It also added that these types of hearses were used to transport cadavers and should be considered special-purpose vehicles.The association will also argue that these hearses cannot be used for any other purpose and should not be classified as vehicles designed for transporting people.

The association is represented by attorneys Rhea Khan, Chelsea John and Kiel Taklalsingh.