Seeking Feedback: Starting a Factory in the Free Trade Zone near the Haiti-Dominican Republic Border

[José Da Mota]

Hey everyone,

Hope you're all doing okay with the storm! So, I've been thinking about this idea of starting a factory in the free trade zone near the border of Haiti and the Dominican Republic. The specific law I'm referring to is:

"Ley No. 12-21 que crea la Zona Especial de Desarrollo Integral Fronterizo y un régimen de incentivos, que abarca las provincias Pedernales, Independencia, Elías Piña, Dajabón, Montecristi, Santiago Rodríguez y Bahoruco. G. O. "

Specifically, I'm torn between setting up a furniture factory or a clothing factory in that area.

The free trade zone near the Haiti-Dominican Republic border offers some nice advantages like tax incentives (0 tax on all income and imports i think), easy customs procedures.

id like to hear thoughts on this. Here are a few questions that came to mind:

1. Do you think the free trade zone near the border of Haiti and the Dominican Republic is a good spot for a factory? Why or why not?

2. Which industry do you think would be a better fit for this area - furniture or clothing? Any specific reasons for your choice?

3. Are there any potential challenges or risks involved in setting up a factory in this region? How can we tackle them?

4. What are some important factors to consider when starting a factory in a free trade zone? Any advice or experiences you can share?

5. Lastly, do you have any other suggestions or ideas that we should explore?

I'm really looking forward to hearing your thoughts. Thanks in advance for your time and input!

Best,
José

 

[JD Jones]

Jose, with all due respect, but just from the type of questions you're asking I can tell you it isn't a good idea.

What draws you to the border and not someplace else in the DR?

 

[José Da Mota]

haha. what draws me is Ley No. 12-21. Are you familiar with it?

 

[JD Jones]

haha. what draws me is Ley No. 12-21. Are you familiar with it?

I have a lifetime of free zone experience, but I haven't been to a border factory since the early 70's.

Today, there are only a few factories there, and with the unrest that is currently happening, it is not a good idea.

 

[José Da Mota]

Cool, so santiago rodriguez not a good place?

 

[JD Jones]

Cool, so santiago rodriguez not a good place?

No, it's not.

What is your background in manufacturing and Free Zones specifically?

 

[José Da Mota]

I have a background in polyethene bag manufacturing in a different countries free zone. I became aware of ley 21 through someone in the industry that operates a factory in polyethenes in santiago rodriguez. I came on here to gauge opinions on setting up an operation.

If you could expound on some of your commentary above that'd be more helpful than just dismissing things out of hand. If you have the time of course.

 

[JD Jones]

That someone in the industry in Santiago Rodriguez can give you much more pertinent and timely advice than I can, so I'll leave it at that..