Customs yet to decide on seizing other Key Motors clients' vehicles

THE DEPARTMENT OF CUSTOMS says it might decide against seizing the remaining uncustomed vehicles sold to unsuspecting victims by Key Motors if the company makes full restitution to the Government.

Danville Walker, commissioner of customs, told The Gleaner yesterday that although more than 40 of the vehicles are still on the streets, the last thing his department wants to do is seize them.

"We are looking at other ways of dealing with it," Walker said.

The Customs Department has repossessed 10 vehicles but says it will seek to return them as soon as possible.

Walker said the vehicles were sold at market value by Key Motors but the duties payable to the Government have not been handed over.

The Customs Department closed the operations of Key Motors and arrested its proprietor, Desmond Panton, on Monday. The department announced more than 50 vehicles, amounting to approximately $40 million in duty, had been illegally removed from Key Motors' warehouse and unlawfully licensed.

Panton was charged with evasion of customs duties and taking steps to defraud the Government of duties and taxes which could result in approximately $100 million in penalties.

Attempts yesterday to reach his attorney, Abe Dabdoub, proved futile.

Meanwhile, Walker told The Gleaner the Customs Department would be conducting an audit of all bonded warehouses to detemine whether duties payable to the Government were being handed over.

Duties on vehicles in bonded warehouses are payable after one year. In the event that the vehicles are sold before the year, the law requires dealers to pay over the duties to the State immediately.

Walker said the probe of the bonded warehouses will help Customs determine whether car dealers are playing by the rules.

Regular audit

Kent LaCroix, chairman of the Automobile Dealers Association (ADA), told The Gleaner yesterday that the audit of the bonded warehouses was conducted regularly and that his organisation did not have any concerns about it.

"We have to submit, on a monthly basis, the vehicles we have in these warehouses as well as the ones that have been taken out during the period," LaCroix said.

He argued there was no need for any jitters among members of the association because of the announcement by Walker.

Key Motors is not a member of the ADA.