US embassy cable - 05KINGSTON2293

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