US auto imports no duty after Jan 2010, read important info on this!

PICHARDO

One Dominican at a time, please!
May 15, 2003
13,280
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Santiago de Los 30 Caballeros
It has become wide spread in the local news media that vehicles imported from the US after Jan 2010 will not paid any duties, but that the gov will have in place the first placa and 16% Itbis instead. That most vehicles imported into the DR will not see any or sizeable reduction in price tag, mainly because they need to be at least 35% of US origins on manufactured materials used to make the vehicle and that we "import" mainly cars from other nations like Japan or Mexico, where US cars are made with little US parts or origin in them.

What you need to know:

According to DR-CAFTA the Dominican Republic was and is required to a phase reduction of import duties of US made cars, parts and related goods of that industry into the DR. As part of this the DR has been reducing in phases the duties from that country on cars and other major goods in relation to the sector.

As you might as well know already, the DR began to impose a 17% first placa (tag) tax on new vehicles that are registered in the DR. As such this favors Japanese imports and other major importers over that of individuals or biz people imports from the US. The US auto industry follows strict guidelines of safety and manufacture for the vehicles made for both the local and export industry. This makes US manufactured vehicles more expensive than others that need not meet that criterion, like Japan or Mexico today.

We currently allow imports of vehicles from Japan, which wouldn't even be allowed to run in their own roads, based on new guidelines the Japanese nation has ratified with the international community on the auto industry level of acceptable emissions. Not only that, but even vehicles with left handed steering wheels placements, were all too common in our roads.

Beginning on Jan 01 2010, the DR is mandated as agreed to dismount any and all types of duties or VAT on US vehicles and related goods to the industry. This is not negotiable and binds the country to it with the penalty of canceling the same benefits to all (read here not a few or selected) goods entry into the US markets from the DR.

If you import a vehicle manufactured in the US by any of the three major car makers in the country, those cars are eligible to enter duty free! No car manufactured by the major three is allowed to be built under even close to the 35% of origins made clear on the DR-CAFTA. They all go beyond that threshold margin.

Once the vehicle is in the DR, all you need to pay is docks and fees associated to the import process, which MUST be detailed at the time of shipment from the US*.

Once the vehicle is clear and you need to register it in the DR agency in charge of that process, if you're demanded to pay the 17% fee on first Placa and 16% on Itbis, you must demand a written request for that charge and contact the local consulate to have the documents validated (think notarized) as originals. Then you can go ahead and place a lawsuit in the US court from where the car was shipped against the Dominican State!

The DR-CAFTA agreement is binding and enforceable by even individuals of all walks of life in the US territory!!!

All you lawyers need are a copy of the DR-CAFTA agreement, with the DR only part needed to make the case. The documents notarized by the US representative in the DR, which were handed out to you by the DR's agency and the documents from the export company used in the US. Add to that the documentation given to you at the time of export by the DR's consulate to that end in the US as well.

Not only are the 17% first registration charges illegal but also the larger portion of the 16% Itbis as well!!!

The DR knows this is coming and its mulling reducing the first placa or tossing it away for security. I'm just giving it you as it is! If they try to stick it to you, this time around the US law is on your side!

Not only can you import US brands of vehicles, but any brand including Toyota and Nissan, manufactured in the US with over 35% of raw materials from US origins...

The US private banks like Citibank are interested in financing vehicles purchased in the US by US legal citizens or residents, to be taken immediate and continued to be paid in the DR!!!!

Since new vehicles can be recovered with ease from the DR with the DR-CAFTA agreement in place, the Banks are willing to put up with the exchange rates and all... When you buy a vehicle in the US which is financed via a bank like citi, they'll demand an initial deposit to recover the vehicle in the DR, should you fail to keep up with payments and default...

The implications of DR-CAFTA are beyond what many here can only begin to grasp! That's why (like I told you here untold times) INPOSDOM is undergoing major changes and partnering with other US postal services and carriers like the USPS, UPS, FEDEX and others...

Many goods will enter the DR market duty free this next year unlike now!

Like I said here, these are your rights as US citizens (Dominicans are banned from suing their own state there as part of the agreement, but can also sue the US or other DR-CAFTA countries just the same) to make use of!

OK! Gringos! A trabajar por ustedes y los Dominicanos!
 
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PICHARDO

One Dominican at a time, please!
May 15, 2003
13,280
893
113
Santiago de Los 30 Caballeros
GREAT !!!................. Can you direct me to Sources?


Download the DR-CAFTA agreement from the online services in the US gov public servers! There you can read in English the actual details on what does this affects in trade the DR and US. The part you need is the one detailing the DR, as other countries ratified the treaty later or introduced the phasing way after the DR and other nations did.

The part for the local news can be read anywhere you search for the Spanish media online! The 35% is detailed many times there.

Anything else you need? As for the rights to sue by any US citizen against the DR based on DR-CAFTA? Read the agreement and see for yourself!

I gave this administration plenty of time to correct the problem by their hands, regarding the first placa taxes. We're in the last days of 2009 and not enough time to enact and repeal legally the tax. That means they intend to continue with it and test the waters...

I'm making enough rough waves to shake their boat and put some wind in their sails for action... This is something many of us related to the DR are in the know about and many like you don't!

The DR can fool Dominicans with ease, since little can they do in local courts against the gov. You gringos have the US courts and now the tool which allows you to make the change happen here in the DR!

One lawsuit is all that's needed! Watch a long train derail from that!

They think that if they repeat all that nonsense about US vehicles being less than 35% manufactured with US raw materials, they'll make people forget the issue and continue to pay the first placa tax...

This is not a deal between "papo" and "pepito" in Villa Mella! This is a legal instrument that can be enforced in the US less corrupted system.

Or ask the DR1's resident legal expert Guzman for his opinion (legal that is)...
 

PICHARDO

One Dominican at a time, please!
May 15, 2003
13,280
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Santiago de Los 30 Caballeros
Here found you one DR related news media dumbing the citizens on the actual trade agreement and what it does for them in the DR:

Rebaja autos EE.UU. resulta gran fiasco

If I take my time to search for more detailing the "facts" they use to say that you won't save much with the dismount of the duties for US cars, I can post many here to that end...

I can even recall news reports on the gov "toying" with the "idea" of reducing the first Placa taxes or removing them completely... They were gauging the people's knowledge on DR-CAFTA and it worked as planned...

The press follows the money in the DR, and we all know they all get a cut from within the sectors involved in it. Most media in the DR is owned by powerful private interest sectors.

This one I'm not staying shut for! I had enough of poison spewing clunkers in our roads, to remain silent on this one...

Let them make an honest buck if they can in our local auto dealers and importers!
 

PICHARDO

One Dominican at a time, please!
May 15, 2003
13,280
893
113
Santiago de Los 30 Caballeros
Robert, can I write an article for the DR1 news section front page on this? All under my direct responsibility as source for the article and to be placed on it as well?

This is very important as media in the DR will not touch the stuff even with a fireman's hose!
 

PICHARDO

One Dominican at a time, please!
May 15, 2003
13,280
893
113
Santiago de Los 30 Caballeros
Just to help you to that, here:

The American Automobile Labeling Act

Abstract

Congress passed the American Automobile Labeling Act (AALA) to help consumers in the selection of new vehicles by providing information about the country of origin of vehicles and their parts. Passenger vehicles manufactured after October 1, 1994 must have labels specifying their percentage value of U.S./Canadian parts content, the country of assembly, and countries of origin of the engine and transmission.

The evaluation is based on a consumer survey to see if new-vehicle purchasers know about the labels, understand them, and/or use them to help select a vehicle; manufacturer and dealer surveys to learn about their response to the labels; and statistical analyses of the actual trends in U.S./Canadian parts content in new motor vehicles after 1994.

Over 75 percent of consumer survey participants, even those that care deeply about "buying American," were unaware of the existence of the AALA labels. Many participants who did read the label said they used the country-of-assembly information, but none said they used the numerical U.S./Canadian parts content score or the engine/transmission information. Overall U.S./Canadian parts content in new cars and light trucks dropped from 70 percent in model year 1995 to 67.6 percent in 1998; however, it increased from 47 to 59 percent in transplants while dropping from 89 to 84 percent in Big 3 vehicles. The trends in parts content are undoubtedly influenced by the 1995 U.S.-Japan Agreement on Autos and Auto Parts and the North American Free Trade Agreement (NAFTA).

In simple terms where do you find that data in vehicles:

These are typically part of, or adjacent, to the vehicle's Monroney sticker...

You can find the percentage data on your vehicle by using the VIN number to find out the actual ratio! There are several ways to find out that data in the US via free groups that point you in the right direction to obtain them or by paying a fee for it.

This applies to ALL vehicles manufactured in the US, including Japanese or any other non-US fully owned or funded model. The DR-CAFTA details that ANY vehicle manufactured in the US using the percentage ratio described, will be legal to import under the duty free agreement.

Read this piece here too:

Article 4.16 of the CAFTA-DR agreement provides that claims for preferential treatment may be made in any written form, as long as the following required information is provided:

Name of person that certifies and when necessary, contact information or any other form of identification;
Tariff classification under the harmonized system and description of the merchandise;
Upon the request of custom authorities, provide additional information that demonstrates the origin of the product;
Date of Certification;
Information demonstrating that the good is originating;
If the Certification will be use for several shipments, the period covered by the Certification should be detailed (not to exceed 12 months).
While the U.S. has not yet issued a suggested CAFTA-DR certificate of origin form, the Central American countries that are members of CAFTA-DR have preliminary agreed to use the same suggested certificate of origin format.

As for the legal rights to sue the Dominican gov read here the US part which is a mirror to that of the DR in the agreement as well:

e. Private Lawsuits
Section 102(c) of the implementing bill precludes any private right of action or remedy
against a federal, state, or local government, or against a private party, based on the provisions of
the Agreement. A private party thus could not sue (or defend a suit against) the United States, a
state, or a private party on grounds of consistency (or inconsistency) with the Agreement.
The
provision also precludes a private right of action attempting to require, preclude, or modify
federal or state action on grounds such as an allegation that the government is required to
exercise discretionary authority or general “public interest” authority under other provisions of
law in conformity with the Agreement.
With respect to the states, section 102(c) represents a determination by the Congress and
the Administration that private lawsuits are not an appropriate means for ensuring state
compliance with the Agreement. Suits of this nature may interfere with the Administration’s
conduct of trade and foreign relations and with suitable resolution of disagreements or disputes
under the Agreement.

That means that a US citizen can’t sue the gov in the grounds of DR-CAFTA as much as a Dominican citizen can't do the same with our own government as well!

Buuuuuuuuut!:

Section 102(c) does not preclude a private party from submitting a claim against the
United States to arbitration under Chapter Ten (Investment) of the Agreement or seeking to
enforce an award against the United States issued pursuant to such arbitration. The provision
also would not preclude any agency of government from considering, or entertaining argument
on, whether its action or proposed action is consistent with the Agreement, although any change
in agency action would have to be consistent with domestic law.


That means a private citizen of the DR can sue the US government for infringing on the agreement, based on roadblocks to his ability to carry out commerce as detailed by the DR-CAFTA agreement as I said before!

Here you can read the entire DR-CAFTA agreement to your heart's content!:

http://ustraderep.gov/assets/Trade_...FTA/Transmittal/asset_upload_file816_7815.pdf
 

PICHARDO

One Dominican at a time, please!
May 15, 2003
13,280
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Santiago de Los 30 Caballeros
Sorry! Just checked the link I posted to the full agreement and it only draws part of it in the administrative articles!! I think the entire thing must be seen/downloaded in parts?
 

Robert

Stay Frosty!
Jan 2, 1999
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Robert, can I write an article for the DR1 news section front page on this? All under my direct responsibility as source for the article and to be placed on it as well?

This is very important as media in the DR will not touch the stuff even with a fireman's hose!

You need to email Dolores about this, she handles all the news stories.

dolores@dr1.com
 

zoomzx11

Gold
Jan 21, 2006
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I wanna see this!!!

After living here four years I have become more than a little suspicious of nearly everything. If anything substantial becomes cheaper in the DR I will be amazed. Too many well connected people are making too much money from imports and we import nearly everything. Do you seriously think they will go away just because of some silly law??? The DR has many laws and nothing in enforcement. I applaud your optimism and hope that DR Cafta will effect change but I would not bet on it happening in our lifetimes.
 

suarezn

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Feb 3, 2002
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The big three don't care enough about the DR market (too small) to spend any time and/or money pursuing this.

While Pichardo is probably correct remember that This is The DR (aka Macondo) and we live in an alternate reality. Let's say you decide to fight this and you won't pay because these placa taxes are illegal, customs will say "You won't get your car then"...you decide to fight it some more and before you know some Coronel is driving your car around and if he likes it enough and decides to keep it there goes your car and you have no recourse.

...even if they do repeal these placa taxes they will just impose some newer (maybe even higher) ones because remember these represents a very large portion of total taxes collected by the government and we all know how much they need these to buy political favors, new Jeepetas, and to build those new metro lines and maintain the existing one.
 

waytogo

Moderator - North Coast Forum
Apr 3, 2009
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OK, lets see a show of hands. Who thinks Pichardo should start a business importing cars for us? As long as his fee for doing so is less than what we would spend on these illegal fees, we should all save some serious $$$...

Please put me on the top of that list.
 

CFA123

Silver
May 29, 2004
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Should this really come to pass, has anyone given thought of what happens to the value of the cars currently on the road?

Say I brought in a model XYZ in July, 2009 for RD$1 million.
Now, in January, 2010... I can bring in the same car for RD$850,000.

Every car on the road likely to go down in value 15-20% 'overnite'?

If that's the case, you'd think auto dealers would have stopped importing cars the 2nd half of the year. Why put an additional car on your lot in October for $x when you could bring it in January for $x-20%?
 

El Tigre

El Tigre de DR1 - Moderator
Jan 23, 2003
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Pichardo can you put this in layman's terms? Like provide an example of what it will cost someone to bring in a particular type of vehicule today and what it will cost after this comes into effect?

Example: Toyota 4Runner. Price to import today including shipping, taxes and fees is X amount of dollars today. It will be X amount of dollars when this goes into effect.
 
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A.Hidalgo

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U.S. autos enter Dominican Republic duty free in 30 days

This groundbreaking news was reported on Dominican Today Dec 1. Also enjoy the comments section.

Santo Domingo. - The Free Trade Agreement with the United States and Central America (Dr-Cafta) will allow Dominicans to bring vehicles made in the U.S., or those whose parts are at least 35% original from that market, free of Customs duties starting January 1.

http://www.dominicantoday.com/dr/ec...enter-Dominican-Republic-duty-free-in-30-days
 

suarezn

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My brother is a dealer so he does this for a living. I'll have to ask him what if anything will change. So far nothing has changed other than people are paying more now than before CAFTA went into effect. People are bringing in more US built cars, but that because of different reasons not related to CAFTA specifically.
 
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