Exactly, you're missing that piece of plastic. Original gaiter has holes (or small cuts, however you call them) on the lower end; the plastic trim goes inside of gaiter... Actually they are glued together by manufacturer at the bottom end of gaiter. That way, when trim is placed in centre console gaiter goes around and below it.
BTW it ain't a problem judging by your pic - just don't drop anything inside like i did several times