Identifier
Created
Classification
Origin
05KINGSTON2293
2005-10-05 17:53:00
UNCLASSIFIED
Embassy Kingston
Cable title:  

GOJ REQUIRES COMPREHENSIVE INSURANCE FOR VEHICLES

Tags:  AMGT PREL JM 
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This record is a partial extract of the original cable. The full text of the original cable is not available.

051753Z Oct 05
UNCLAS SECTION 01 OF 02 KINGSTON 002293 

SIPDIS

FOR WHA/CAR
ALSO FOR WHA/EX
ALSO FOR OFM

E.O. 12958: N/A
TAGS: AMGT PREL JM
SUBJECT: GOJ REQUIRES COMPREHENSIVE INSURANCE FOR VEHICLES
OF FOREIGN MISSIONS, INCLUDING DIPLOMATIC AND NON-DIPLOMATIC
STAFF

REF: MFT&FT DIPNOTE OF 2/16/2005

UNCLAS SECTION 01 OF 02 KINGSTON 002293

SIPDIS

FOR WHA/CAR
ALSO FOR WHA/EX
ALSO FOR OFM

E.O. 12958: N/A
TAGS: AMGT PREL JM
SUBJECT: GOJ REQUIRES COMPREHENSIVE INSURANCE FOR VEHICLES
OF FOREIGN MISSIONS, INCLUDING DIPLOMATIC AND NON-DIPLOMATIC
STAFF

REF: MFT&FT DIPNOTE OF 2/16/2005


1. SUMMARY: This is an ACTION TELEGRAM; see para 9. The
GOJ is refusing to license newly imported GOVs and POVs, and
will not renew existing official and personal vehicle
registrations unless the Embassy and its staff purchase
local comprehensive insurance covering the value of duties
and taxes. This action has disrupted normal Embassy
operations, forcing us to run a shuttle service for staff
whose vehicles may not be driven, severely limiting our
ability to provide normal services and meet Mission
Performance goals, and degrading the quality of life of
Mission staff and family members. Post believes the subject
GOJ requirement to be a violation of the Vienna Convention
on Diplomatic Relations and seeks Department support for a
prompt and acceptable resolution of this matter with the
GOJ. END SUMMARY.


2. On February 16, 2005, the Ministry of Foreign Affairs
and Foreign Trade (MFA&FT) issued a diplomatic note to the
Heads of Diplomatic Missions and International Organizations
regarding current Motor Vehicle Import Policy (copy
transmitted by e-mail to WHA/CAR and OFM). Most of the note
was routine and indicated the requirements for licensing and
registration of all motor vehicles belonging to Missions and
Members of Missions. The Embassy questioned at the time a
paragraph indicating, "All Diplomatic and Non-Diplomatic
personnel are required to insure their motor vehicle
comprehensively (full coverage) at a value to cover duties
and sales tax." A protocol officer of MFA&FT indicated to
us that this requirement has always been in place but had
not been enforced in the past.


3. Post believes that the GOJ requirement to insure
vehicles comprehensively for the value of duties and sales
tax is a direct violation of Articles 23 and 28 of the
Vienna Convention on Diplomatic Relations.


4. The Embassy continued to process requests for import
and registration renewals and complied with all requirements
except the one requiring comprehensive insurance covering
the value of duties and sales tax as it had never been
enforced. Beginning in September 2005, MFA&FT first
informed the Embassy orally that it would no longer be able
to issue vehicle registrations or annual renewal stickers

without first seeing evidence that a comprehensive policy on
a Jamaican company was in force at a value to cover duties
and sales tax. Currently about 27 U.S. Embassy applications
for renewal stickers, vehicle registrations, or transfer of
title are pending with the Ministry. The number of pending
applications will increase monthly until the matter is
resolved.


5. In consultations with the Office of Foreign Missions of
the Department, Post delivered a diplomatic note (see text
para 10 below) on September 30, 2005, to MFA&FT requesting
that all of the pending license renewals and vehicle
registrations be issued immediately, waiving the
comprehensive insurance requirement as had always been done
in the past. The note pointed out that the expiration of
personally-owned and government-owned vehicle registrations
has already disrupted normal operations of this Mission and
that continued disruption would reduce the Mission's ability
to meet the Consular needs of the Jamaican public and would
result in reciprocal action taken against vehicles of
Jamaican officials in the United States.


6. All Embassy Kingston vehicles, POVs and GOVs, are
insured by a Jamaican company for third party liability, as
required by GOJ and common international practice. The USG
is self-insured for any remaining risks, in accordance with
Department policy. Most Embassy staff obtain a
comprehensive insurance policy in the United States for
their POVs. Such policies do not generally insure the
policyholder at a value to cover duties and sales taxes.
Sales tax in Jamaica is 16.5 percent and import duties run
as high as 260 percent, depending on the size of the vehicle
and the type of engine.


7. The Office of Foreign Missions (OFM) has instructed
Post NOT/NOT to permit the use of GOVs and POVs unless the
vehicles hold current licensing and registration. OFM has
indicated that it can and will impose reciprocity on
vehicles of Jamaican Staff and Missions in the United States
if this matter is not promptly resolved. In the event
Jamaican officials or family members drive vehicles whose
licenses or registration have been revoked on the basis of
reciprocity, they would be subject to being declared persona
non grata and could be expelled from the United States.


8. All diplomatic and non-diplomatic staff and their
spouses may each import one vehicle into Jamaica duty-free
every three years. Duty is assessed on the sale of vehicles
on a discounted basis if the vehicle is sold in Jamaica
before it has been in country for three years. That is, the
original duty declines by one thirty-sixth each month, until
it reaches zero. In the event vehicles are damaged in an
accident, the Finance Ministry assesses the duties on the
original value of the vehicle at the time of import and
discounts the duties in accordance with the amount of time
the vehicle has been in country. Staff may not import an
additional vehicle duty-free until the duty has been paid.
Post believes this practice is unfair because the GOJ is
attempting to collect the full value of taxes on vehicles
that have little or no salvage value. This practice places
an unnecessary burden on staff who suffer losses due to no
fault of their own.

9. ACTION REQUEST: Post requests the Department's
assistance in applying pressure on the GOJ that will
encourage a prompt and reasonable solution so that Embassy
operations may return to normal.


10. BEGIN TEXT OF DIPLOMATIC NOTE:

The Embassy of the United States of America presents its
compliments to the Ministry of Foreign Affairs and Foreign
Trade, and has the honor to refer to the Ministry's Note of
February 16, 2005, regarding Motor Vehicle Import Policy.
The Embassy questions the validity under Articles 23 and 28
of the Vienna Convention on Diplomatic Relations for any
Government to require Diplomatic and Non-Diplomatic
personnel to insure their motor vehicles comprehensively at
a value to cover duties and sales tax.
The Embassy calls to the Ministry's attention that we
currently have 20 requests for renewal and seven requests
for licensing pending and requests the Ministry immediately
waive the comprehensive insurance requirement as it has
consistently done in the past. This Embassy requires that
owners of all vehicles obtain local liability insurance, at
levels established by laws and regulations of the Government
of Jamaica, which would indemnify the Jamaican public for
losses sustained as a result of accidents caused by these
vehicles. This is a standard to which most host Governments
hold foreign missions throughout the world. The Embassy
requests immediate processing of the pending licensing.
The Embassy wishes to call to the attention of the
Ministry that the lack of the licenses in question is
seriously disrupting the Embassy's ability to conduct normal
operations. Continued disruptions to the Embassy's
operations could have serious consequences in its ability to
attend to normal business, including the processing of
Consular workload on behalf of the Jamaican public.
Continued insistence by the Ministry to require this
Mission's vehicles to insure comprehensively at a value to
cover duties and sales tax will also result in a reciprocal
requirement being imposed on vehicles belonging to Jamaica's
Missions and Diplomatic and Non-Diplomatic staff in the
United States.
The Embassy of the United States of America avails itself
of this opportunity to renew to the Ministry of Foreign
Affairs and Foreign Trade, Government of Jamaica, the
assurances of its highest consideration.

Embassy of the United States of America,
Kingston, September 30, 2005.

END TEXT OF DIPLOMATIC NOTE.

ROBINSON