may I ask some advise, por favor?

Susan

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Jan 23, 2002
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Hello, and thank you beforehand for your time!

I have been to the R.D. twice now, and am planning on returning in four months or so to live - and establish a business and a second home.

In my trips there, I have stayed in the Puerta Plata area, and made a few friends as well. Total time spent in two trips, around 5 weeks, but long enough to know that this is the right decision (and my husband is of like mind).

I want to open a small shop to sell American designer clothing that comes from "sell out" and "clearance stores" in the states. Ralph Lauren, Evan Picone, *famous name* dresses and clothing that I can buy - for under $10. US, and bring clothing back to R.D. to sell in a small *casa-like* shop, near the large hotels - near the Costa Dorado area.

While I was there, I shopped downtown at several places, and I feel I can compete in the "adult female" clothing arena, price wise, IF the import taxes aren't too high. If I was to start out very small, would I be taxed heavily on boxes of clothing that I would mail to R.D.?? At the prices I shall be purchasing, I could afford nearly the entire cost of the items in taxes, and still make a small profit.

Nothing on the scale of a "Casa Nelson", rather a small shop with alterations available, and chic affordable clothing. (I would also focus on the *large sized female tourists* from Europe with 1X, 2X, 3X clothing). This business would be my base, as we are also starting a foundation, where people from the U.S. can send school supplies and money for food for the schools in the surrounding countryside.

We have visited schools in Puerta Plata, including private, catholic, and public. Nueva Boca (?)(Boca Nueva?) has a school we visited, that we would like to help very much. Maimon, is another area we want to help in.

Our last trip, we brought suitcases full of crayons, pencils, and paper. I'm sure that you know these items are badly needed in the mountain schools there. This "base" of a shop will allow me to support myself - as well as facilitate a place where packages of supplies for children (books, art supplies, paints, radios, paper, pens and pencils.. you get the "picture") might be sent. Do charitable packages receive taxations also?

I feel that your basic advise (on your business page here) is good, in that I should simply come down and begin small, rent a shop, and open! I know that the "seasons" bring different sales figures, and we have enough in savings to have a comfortable buffer for more than a year.

I have run my own shop here in the states, and have worked as a teacher for years (primary levels, in public schools). My husband is a magnificent carpenter, as one of his trades, so finding good help won't be a problem, as well as friends there who wil work with us. Eventually, we would like to sell the beautiful wood carvings of every kind that we find in R.D., but that is a later venture!

My first concern is: what is involved tax wise mailing cartons (2'x3') of merchandise to myself? Each carton would be of medium size, weighing no more than 50 or 60 pounds. I imagine that I would need 5 or 6 of these cartons for my shop each month. How does the taxation schedule apply to small business individuals? If my accountant tracks all of this, is it a yearly matter?

Lastly, I have heard that depositing American dollars is a good thing to do to earn high interest in Dominican banks. Would you advise having only a dollar account? or perhaps two accounts, one for the higher interest, one for everyday needs with pesos?

I have many more questions, but of these many, I will be happy with any few you might feel inclined to answer! Thank you again sincerely for your time and consideration!

Susan G.
Cincinnati, Ohio, USA

p.s. We are getting a lawyer when we come next, to advise us on a land purchase, (potentially a small home), handle our paperwork, and to legally start up our business. We hope someday to be citizens as well (retaining our US citizenship).
 

Escott

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Jan 14, 2002
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Lastly, I have heard that depositing American dollars is a good thing to do to earn high interest in Dominican banks. Would you advise having only a dollar account? or perhaps two accounts, one for the higher interest, one for everyday needs with pesos?



Reply:

You have it backwards, Dollar accounts with 5 thousand US min only get about 6 percent. Peso accounts get 12 percent. You can get 8.5 in a dollar CD with 100 thousand dollars.

I cant comment on the business end of it. I am currently looking into that myself.

Email me if you want more bank info which I can supply for you.

Regards,
Scott
 

Susan

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Jan 23, 2002
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a short question

are you planning on doing business on the north coast or the soath coast, and are there *deposit levels* in pesos that earn more, or is that the tops??

Thank you, susan
 

BushBaby

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Jan 1, 2002
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Hi Susan,
There are a number of clothes shops in Puerto Plata you probably didn't visit last trip AND a few "More Select" womens shops have opened more recently. I think a "Gringa" clothes shop is quite a difficult thing to get going - even the second hand designers clothing at GOOD prices - & that you would need a year (maybe more) to become "accepted".

What you MIGHT consider as an initial idea, is setting up a deal with an existing outlet- If the import costs are reasonable enough for you to make your desired profit AND give some profit to your 'partner', this would give you some time to investigate the clothing market here and make your plans for the future (plus get you known by the people that matter).

Did you receive my e-mail of yesterday? Get back to me when you can. - Grahame.
 

Escott

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Jan 14, 2002
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Re: a short question

Susan said:
are you planning on doing business on the north coast or the soath coast, and are there *deposit levels* in pesos that earn more, or is that the tops??

Thank you, susan

Hi Susan,

Yes eventually I plan on living at least part time in
Sosua. Going down next week for the 6th time in the last year.

I don't feel that great about Peso accounts because of devaluation. I have one small Peso account at present and a few Dollar Cd's. You can probably get better in Peso but not at a bank at the moment. Rates vary weekly at the banks so it may have changed since Thanksgiving when I was last there.

I will post back to this thread next week at this time and let you know. I plan on meeting with Graham this trip to hear what he has to say.

Regards
Scott
 

Santos225

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Mar 14, 2003
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Hi Susan,
my name is Ponjaert, Jean Pierre. I am a Belgian married to a native Dominican girl from the capital of Santo Domingo. I have my own company in Santo Domingo and will start end of this month a subsidiary company in second hand clothing (rebaling company) in Puerto Plata. I know the country, its people and its laws very well. I doing business overthere for more than 6 years now and have been there already 25 times in 6 years time. I think that in Your mind designer clothing is the real thing but I must tell You that there is no demand for that to the extend that You can make good profits to live on that in the Dominican Republic. We have made a market study that lasted two years and we came to the conclusion that the second hand clothing business grade A+B is the succes story. Therefor we have decided to start in hugh quantities in Puerto Plata within some weeks. There are hugh stocks and quantities in the states just like new that You can buy for a dime. If ever needed we can help You with that.
It is tru that if You bring in dollars You can get very high rates in the Dominican Republic but it is wise to open an account in pesos aswell for Your daily needs.
There are a lot of advantages if Your company address in situated in a Zona Franca. If it is so You pay no taxes and You can use Your money as You wish. There is no controne whatsoever then.
Pay attention, if You get the idea to stay in the Dominican Republic to live and do business You have to ask for a permit but if You go to a lawyer it is very rapidly done. After a feww week and after having filled in and signed the necessary papers they give You Your cedula (plastic identity card).
If You need more information, let me know.
I will be in Sosua between the 15 th. of January and the 31 st. January 2005. Let me know how I can get in touch with You.
Last thing before I forget. Humanitarian help is free from import duties but should be addressed to some commity. The last person in charge was the sister of the former president Hipolito whom I met. If You want I can check that out with me friends from the Dominican Republic Embassy in Brussels.
Kind regards,
Ponjaert, Jean Pierre
 
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BushBaby

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Anyone thinking of adding to this thread should note the thing started in Jan 2002 - it is now just under 3 years old!!!!!

Been quite a number of the old threads resurrected in the last few days, is someone trying to have some fun or did we just make more sense back then?? Nice to see some of the old friendships from those "Good old Days"!! ~ Grahame.