Non-Caymanian customers were unable to complete transactions at a Department of Vehicle and Drivers’ Licensing office on Tuesday and were told to return with physical passports and printed evidence of their immigration status, as the Government’s revised two-tier fee system took effect.

The Caymanian Journal witnessed non-Caymanian customers being turned away after they were unable to produce the documents requested by staff.

Work-permit holders were told to return with printed copies showing their current permit status. Where a work-permit grant was pending, customers were asked to provide an official receipt from Workforce Opportunities and Residency Cayman showing that their employer had submitted and paid for the application.

The requests meant that customers who arrived without the paperwork could not complete their transactions during that visit.

Asked why staff were requiring the documents when those specific requirements had not been clearly set out for non-Caymanian customers in the Government’s public announcement, a DVDL officer, speaking on condition of anonymity, said staff had been “briefed and instructed to request” the paperwork and were “following procedure”.

The officer’s comments indicated that front-line staff were acting on internal instructions. They did not establish whether the documents were being requested from all non-Caymanian customers, only from those whose status could not be confirmed electronically, or under what circumstances a pending work-permit receipt would be accepted.

TCJ’s observations were confined to one DVDL office and do not establish whether the same process was followed at every location.

Published guidance anticipated checks but lacked detail

The Government said DVDL would use approved Government information to determine which fee applied to each customer.

Under the published process, a person would be classified as eligible for the Caymanian fee, as a non-Caymanian ineligible for that rate, or as undetermined and requiring manual verification.

Government said a missing or unmatched electronic record would not automatically result in a customer being treated as non-Caymanian. Instead, the transaction would be referred for manual verification.

DVDL’s online fee-change FAQs provide some notice that immigration documents may be relevant. They list a passport bearing a work-permit stamp or residency among the items associated with the non-Caymanian category, as well as a contract or work-permit stamp for Government-contracted employees.

The FAQs also say an authorised officer must verify a person’s identity and supporting documents when electronic services are unavailable. They do not, however, list a printed work-permit status record or a receipt showing that an employer has filed and paid for a pending application among the documents specified for manual verification.

The passport request therefore had some basis in the published material. What was not clearly communicated was that the non-Caymanian customers observed by TCJ would need to arrive with a physical passport, printed immigration records and, in some pending cases, proof of their employer’s WORC payment or face making a second visit.

The practice encountered at the office may fall within the Government’s broad warning that additional documents could be required. The first-day problem was more practical: the published information did not tell affected customers precisely what they would be expected to produce at the counter.

Offices reopened after staff training

The implementation followed a one-day closure across the department.

All DVDL offices in the Cayman Islands were closed on Monday, 31 August, for what the department described as a staff training workshop. They resumed normal operations on Tuesday, the day the new fees and verification arrangements took effect.

The Government’s final announcement, issued on 31 August, also described the closure as allowing staff training and final operational preparations.

Planning, Lands, Agriculture, Housing and Infrastructure Minister Jay Ebanks MP said the Government had reconsidered the fees after hearing public concern.

“We listened carefully to the concerns raised and took the time to review the fee structure before implementation,” Mr Ebanks said.

He said DVDL had established processes to verify eligibility, assist customers who needed additional documentation and review problems arising from the transition.

The Government confirmed the reduced rates one day before their introduction, retreating from much larger increases that had been approved for non-Caymanians.

Government cuts the proposed increase

Under the original regulations, a three-year Groups 0–3 full driver’s licence for a non-Caymanian was to cost CI $600. Regulations made on 31 August reduced that amount to CI $225.

The same amendment cut the proposed one-year non-Caymanian fee from CI $200 to CI $75, the five-year fee from CI $1,000 to CI $375 and the ten-year charge from CI $2,000 to CI $750.

Caymanian multi-year rates were also reduced. The three-year fee fell from CI $75 to CI $68, the five-year fee from CI $125 to CI $106 and the ten-year fee from CI $250 to CI $200.

The Government described the change as reducing the previously approved differential from approximately eight times the Caymanian rate to approximately three times.

Its final schedule is:

The 10%, 15% and 20% discounts for three, five and ten-year licences apply to the Caymanian rates. The corresponding non-Caymanian charges do not receive those multi-year reductions.

As a result, the difference is exactly three times for a one-year full licence, but grows with the length of the licence. For both Groups 0–3 and Group 4, non-Caymanians pay roughly 3.3 times the Caymanian price for three years, about 3.5 times for five years and 3.75 times for ten years.

The differences are also pronounced for testing. A non-Caymanian pays twice the Caymanian rate for a learner’s licence and four times as much for both the theory and road tests.

Finance and Economic Development Minister Rolston Anglin MP said stronger-than-expected Government revenue during the first six months of the year had allowed the administration to reduce the proposed charges without negatively affecting its overall revenue position. The Government described the revision as providing some cost-of-living relief.

Businesses warn costs will spread

Adam Sax of delivery business Let’s Eat welcomed the reduction but questioned why separate rates remained necessary.

“Thankfully, they listened to the legitimate concerns from locals and residents regarding the price disparity and the divisiveness this could cause, and made the pricing difference more reasonable,” Mr Sax said. “Still, I believe we should all pay the same.”

Mr Sax said the original proposal would have imposed direct costs on drivers and the business during a period of inflation and high living expenses.

“Our industry has seen fee increases from a number of directions in a very short period,” he said. “Every one of those costs has to be accounted for somewhere, and they inevitably work their way down to the consumer.”

He added: “A fee aimed at non-Caymanians does not stay with non-Caymanians. Businesses have to absorb it and the cost is shared by everyone living here.”

The revised rates significantly reduced the immediate expense facing businesses whose employees need valid driving licences. They did not remove the additional cost altogether.

Special categories and reimbursements

Eligibility for the Caymanian fee is not limited in every case to people who hold Caymanian status.

The Government said a verified spouse or civil partner of a Caymanian may qualify for the Caymanian fee, although doing so does not change that person’s immigration status. Customers aged 65 and over are also eligible for the reduced rate regardless of nationality.

DVDL’s guidance places naturalised people, permanent residents, holders of Residency and Employment Rights Certificates and British Overseas Territories citizens within the non-Caymanian category unless they qualify through another approved route.

Customers who believe they have been charged the wrong amount are instructed to visit a DVDL office with their receipt, valid identification and supporting documents. If a review confirms an overcharge, they may apply for reimbursement.

By the close of business on Tuesday, the Government’s last-minute revision had softened the financial impact of the original proposal. But the first day exposed a separate problem in its implementation.

The experience at one office does not show how widespread the document issue was. It does show that some non-Caymanian customers reached the counter without knowing the precise paperwork staff would demand.

For those told to return with passports, work-permit records and WORC receipts, the immediate question was no longer only how much a driver’s licence would cost. It was whether the transaction could be completed in a single visit.