"The bite is too big" - that's what car dealers have been telling us after the Customs Department recently switched to a new system of valuation called the "transaction value method". It prohibits use of what is known as the "residual method" of valuation - meaning, in theory, that the customs officers cannot freely use their discretion to give car importers an ease.
But, for months we've been hearing about the use of brokers at the northern border - who act as an unofficial bridge - allegedly - to customs officers.
Those car dealers who want a break are directed by the customs officers to the brokers - and they work out a package deal - something for the government - and something for everyone else.
But, recent reports tell us that the ratio has gone all out of sync. The government is getting a few thousand dollars in duty - while thousands more dollars are going to the borrower and his contacts.
Tonight we have the secret recording of a phone call between an importer and the broker of choice at the northern border. We have distorted the voice of the importer as he questions why he's paying 7 thousand dollars when the government collectors receipt he got is for just 3 thousand dollars:
Voice of Car Dealer (CD)
"I seh help me out you say, ok, $7065 that is duty you wah pay right? The receipt that you gave me mark, right now, right now, the receipt that you give me marks $3,000 something right? So now, and the WhatsApp message you sent me mark the $7,000, but it mark the $3,000 in duty but I don't see where this $4,000 gone right?"
Voice of: Broker (B)
"$4,000 hasn't gone anywhere."
Voice of Car Dealer (CD)
"Well my receipt doesn't mark $7,065."
Voice of: Broker (B)
"Me and you know how the thing works bally."
Voice of Car Dealer (CD)
"But tell me something, between me and you, when I pay the 7,065, right? To the same brokerage consultancy thing that you sent me. You don't have to call the name because I am not putting you on the spot but the $4,000 goes to somebody right?"
"Well not to one person but it is split up. The additional money who does it go to?"
Voice of: Broker (B)
"To the person that deals with it. That deals..."
Voice of Car Dealer (CD)
"That deals with it right?"
Voice of: Broker (B)
"Exactly."
"What happen done happen so please explain to me what do you want me to do?"
Voice of Car Dealer (CD)
"Bwai I would want you to work out something for me that I get a little money back."
Voice of: Broker (B)
"Boss just tell me what you want to get back and I will get back your money for you don't stress out yourself. I will take the loss, please send me your account number and let me know how much I owe you and I will get your money to you."
"I will try and get you back at least a thousand but that is out of my pocket I'll give you that."
We did reach out to the broker for a comment - but he did not reply. We did get a call from a source in customs who tried to suggest that the importer got taken for a few thousand dollars by his own relative who drove the vehicle down. The importer - who asked to remain nameless - disputes this.
