Can I import a like-new, 9-year old car via ferry from PR?

Bavaro golfer · Nov 1, 2012

I retired from USA and moved permanently to Punta Cana earlier this year. I am looking for a way to import my 2003 Ford Taurus SEL (the fully max'ed out edition with every available option, luxury model -- VERY nice) -- like brand new -- only 26,000 miles -- from Miami USA to DR. I am its original owner, it's been garaged, driven only 3,000 miles a year, and maintained in showroom new condition inside & outside & under the hood, and I assure you that the car is equivalent to any new or like-new car which would cost me $25,000+ here. It has a powerful 24-valve, 6-cylinder engine that gets 27 mpg.

But the "no importing cars over 5 years old" law stands in my way. So I keep looking for a waiver letter -- or a Customs official that will "cooperate" with me.

I have a recent DR Pensioner Residency (with cedula) which has the benefit of (a) Law No. 14-93, of August 26th, 1993 on Customs Tariffs of the Dominican Republic, which exempts home furnishings and personal goods from the payment of taxes; and (b) Law No. 168 of May 27th, 1967 on Partial Exemption of the Motor Vehicle Taxes -- one automobile per shipper (registered in the shipper?s name for more than one year) is partially exempt from duty payment, by virtue of Dominican Republic Law 168.

OK, when I asked this question before, people instead tell me to sell the car in the USA -- but that's not a good idea, because the Blue Book value is only about $7,000, and if I converted the car to cash in the USA, you know what kind of car that $7,000 (275,000 pesos) will buy here -- I already know ... not a like-brand-new, near-luxury car. No thanks. If I can have my car (which is easily as good as any $25,000 car here), I would happily pay the extra fine (if it were possible to do so), and I'd still end up paying less money overall, <st1:stockticker>AND</st1:stockticker> I'd have a nicer car than any other "Plan B" alternative method, for the same (or much less) money that I would have to spend, either way.

Which brings me to this question for the forum. I saw the following posting on the Internet. You guys have mucho "street smarts" here, so I ask you, is the following True or False?

It said, "The best way to import and older car from the USA to the Dominican Republic is to ship it to Puerto Rico and then take the ferry < http://www.ferriesdelcaribe.com/ > to Santo Domingo. It is more expensive than a flight from the USA, but it is for the car as well. Keep your license plates on the car from where you come from, because you won?t be able to register it in the Dominican Republic. You won't be able to sell the car later in the Dominican Republic, but you can bring it back to Puerto Rico and sell it there, and it will sell for more in PR than in the USA. PR is a territory of the USA and it has USA postal zip codes. The ferry from Puerto Rico to the Dominican Republic leaves from Mayaguez and arrives in San Pedro de Macoris which is an hour from Santo Domingo."

True or false?

----------------------------

ASIDE QUESTION: Does anyone see any possible change to the law, based on this 9 July 2012 article? "Used auto dealers feel the pain, want old car import ban lifted" -- http://www.dominicantoday.com/dr/lo...-feel-the-pain-want-old-car-import-ban-lifted

playacaribe2 · Nov 1, 2012

Bavaro golfer said:
I retired from USA and moved permanently to Punta Cana earlier this year. I am looking for a way to import my 2003 Ford Taurus SEL (the fully max'ed out edition with every available option, luxury model -- VERY nice) -- like brand new -- only 26,000 miles -- from Miami USA to DR. I am its original owner, it's been garaged, driven only 3,000 miles a year, and maintained in showroom new condition inside & outside & under the hood, and I assure you that the car is equivalent to any new or like-new car which would cost me $25,000+ here. It has a powerful 24-valve, 6-cylinder engine that gets 27 mpg.

But the "no importing cars over 5 years old" law stands in my way. So I keep looking for a waiver letter -- or a Customs official that will "cooperate" with me.

I have a recent DR Pensioner Residency (with cedula) which has the benefit of (a) Law No. 14-93, of August 26th, 1993 on Customs Tariffs of the Dominican Republic, which exempts home furnishings and personal goods from the payment of taxes; and (b) Law No. 168 of May 27th, 1967 on Partial Exemption of the Motor Vehicle Taxes -- one automobile per shipper (registered in the shipper’s name for more than one year) is partially exempt from duty payment, by virtue of Dominican Republic Law 168.

BG:

The answer is, once again, sell it in Florida.

Those foreigners coming in on a residency have a limited window within which to bring their household contents and one auto into the country. I believe it is valid for 6 months. And yes under that law I do know people who have brought cars in older than 5 years. The question is...is it worth it to you.

Based on the DGII website your vehicle is valued at $358K pesos more or less. Add in 18% ITBIS (currently 16% but not for much longer), 17% first placa (plate), plus CIF....you now know why cars are so expensive here.

If qualified you could receive a partial exemption from these, but not enough to justify the costs and hassle.

Here is the website to determine their pre-exemption value;
Consulta Valores de Veh?culos Livianos

OK, when I asked this question before, people instead tell me to sell the car in the USA -- but that's not a good idea, because the Blue Book value is only about $7,000, and if I converted the car to cash in the USA, you know what kind of car that $7,000 (275,000 pesos) will buy here -- I already know ... not a like-brand-new, near-luxury car. No thanks. If I can have my car (which is easily as good as any $25,000 car here), I would happily pay the extra fine (if it were possible to do so), and I'd still end up paying less money overall, <st1:stockticker>AND</st1:stockticker> I'd have a nicer car than any other "Plan B" alternative method, for the same (or much less) money that I would have to spend, either way.

If you are willing to pay another $12,000, or $13,0000 USD in shipping and taxes to bring it in....then contact a shipper/broker, they will be happy to try and help you...for an additional fee. Note, that if your paperwork is in any way not up to DR standards on the day your car arrives...you may find it impounded....and you may be forced to ship it back to Miami. Then again, maybe you will find a sympathetic, or needy, or both, customs agent who will "help" you.....for another fee.

Your call.

Which brings me to this question for the forum. I saw the following posting on the Internet. You guys have mucho "street smarts" here, so I ask you, is the following True or False?

It said, "The best way to import and older car from the USA to the Dominican Republic is to ship it to Puerto Rico and then take the ferry < http://www.ferriesdelcaribe.com/ > to Santo Domingo. It is more expensive than a flight from the USA, but it is for the car as well. Keep your license plates on the car from where you come from, because you won’t be able to register it in the Dominican Republic. You won't be able to sell the car later in the Dominican Republic, but you can bring it back to Puerto Rico and sell it there, and it will sell for more in PR than in the USA. PR is a territory of the USA and it has USA postal zip codes. The ferry from Puerto Rico to the Dominican Republic leaves from Mayaguez and arrives in San Pedro de Macoris which is an hour from Santo Domingo."

True or false?

----------------------------

ASIDE QUESTION: Does anyone see any possible change to the law, based on this 9 July 2012 article? "Used auto dealers feel the pain, want old car import ban lifted" -- http://www.dominicantoday.com/dr/lo...-feel-the-pain-want-old-car-import-ban-lifted[/QUOTE]

Answer: True and False

I believe you can bring the car into the country for a period of 30 days under that scheme. After that, the car is illegal in the country and could be subject to impoundment for failure to pay the import taxes, etc.

But lets step beyond that for a moment. Lets suppose you do bring it in via ferry and you have a fairly small area that you drive in (Bavaro) and that you are a careful driver. When the inevitable happens and you are hit or you hit someone or something.....you are about to find out that you are uninsured by your US carrier....and that you have been driving an uninsured vehicle by DR law.....and you may spend some time in jail while "fault" is assessed.....don't worry about that though..it will be judged your fault....and you will now have to pay out of your own pocket a) to repair your vehicle, b) the other vehicle, and c) quite possibly compensatory damages to any person or persons you happen to have an accident with.

If that sounds impossible or improbable, you have not lived in the DR long enough.

I have shipped three vehicles here, the last being in 2008. One of those shipped was outside the 5 year window and was allowed in after a "penalty" was assessed....so it is possible...if you want to pay.

Good Luck.

Respectfully,
Playacaribe2

frank12 · Nov 1, 2012

playacaribe2 said:
BG:

The answer is, once again, sell it in Florida.

Those foreigners coming in on a residency have a limited window within which to bring their household contents and one auto into the country. I believe it is valid for 6 months. And yes under that law I do know people who have brought cars in older than 5 years. The question is...is it worth it to you.

Based on the DGII website your vehicle is valued at $358K pesos more or less. Add in 18% ITBIS (currently 16% but not for much longer), 17% first placa (plate), plus CIF....you now know why cars are so expensive here.

If qualified you could receive a partial exemption from these, but not enough to justify the costs and hassle.

Here is the website to determine their pre-exemption value;
Consulta Valores de Veh?culos Livianos

If you are willing to pay another $12,000, or $13,0000 USD in shipping and taxes to bring it in....then contact a shipper/broker, they will be happy to try and help you...for an additional fee. Note, that if your paperwork is in any way not up to DR standards on the day your car arrives...you may find it impounded....and you may be forced to ship it back to Miami. Then again, maybe you will find a sympathetic, or needy, or both, customs agent who will "help" you.....for another fee.

Your call.

----------------------------

ASIDE QUESTION: Does anyone see any possible change to the law, based on this 9 July 2012 article? "Used auto dealers feel the pain, want old car import ban lifted" -- http://www.dominicantoday.com/dr/lo...-feel-the-pain-want-old-car-import-ban-lifted

Answer: True and False

I believe you can bring the car into the country for a period of 30 days under that scheme. After that, the car is illegal in the country and could be subject to impoundment for failure to pay the import taxes, etc.

But lets step beyond that for a moment. Lets suppose you do bring it in via ferry and you have a fairly small area that you drive in (Bavaro) and that you are a careful driver. When the inevitable happens and you are hit or you hit someone or something.....you are about to find out that you are uninsured by your US carrier....and that you have been driving an uninsured vehicle by DR law.....and you may spend some time in jail while "fault" is assessed.....don't worry about that though..it will be judged your fault....and you will now have to pay out of your own pocket a) to repair your vehicle, b) the other vehicle, and c) quite possibly compensatory damages to any person or persons you happen to have an accident with.

If that sounds impossible or improbable, you have not lived in the DR long enough.

I have shipped three vehicles here, the last being in 2008. One of those shipped was outside the 5 year window and was allowed in after a "penalty" was assessed....so it is possible...if you want to pay.

Good Luck.

Respectfully,
Playacaribe2[/QUOTE]

Answers don't get any more clear and concise then this. Take his advice and do not do it. But, just to make things more interesting, i will add another scenario here from a customer that lives here on the north coast:

in 2009, a customer was speaking to the owner of the restaurant here in Cabarete where i work. he told the owner that he was flying to Miami next week and purchasing a new toyota, and then shipping it back here. he asked the owner what he thought about that idea? The owner told him it was a bad idea because several things can delay it once it gets to customs at the dock.

The guy went along with his plan anyway. When his toyota reached santo domingo, he went to go pick it up. His Toyota in Miami cost him something like US $25,000. the customs then looked up the value of the vehicle here on this island and assessed a tax of US $18,000. That was correct and accurate by the way. He said "No way. I'll just ship it back to Miami and use it there."

Apparently, that is not an option. Once it gets to the port here, if i rememeber correctly, he was not allowed to ship it back, and furthermore, everyday it sat there without the customs paid, it incurred a "Storage Fee" or something like that. He then went back and forth from the north coast to customs in santo domingo because everytime he thought he had paid in full, something else would come up and he had to return to Santo Domingo with another receipt or paper. I believed he had to pay the customs bill at Banco Popular.

Well, since no one carries US $18,000 on them, he had to write a check. Guess how long it takes a check to clear here? Ok, that hurdle was taken care of here by the owner of the resaurant, who, cashed the check for him so that he could go and pay the customs right away and get his car out of customs chop-chop. Not so fast. more trips to santo domingo ensued until, finally, after several weeks and several trips back and forth, he finally got his Toyota out of customs. But wait.

It turned out that after all the customs taxes and first time registration were paid--and without adding all the trips back and forth to Santo Domingo as well as finding someone nice enough to trust you enough in order to cash your US $18,000 check--because otherwise the check would still be sitting in limbo at the bank for 3 weeks waiting to "Clear"-- the toyota dealership in santo domingo was selling the exact same SUV for only $1500 to $2000 more!!

But once you added all the gas and lawyer fees, and all the time spent going back and forth--from office to office--and being stuck in traffic all day, and all the arguing, do you really think it was worth the $1500 to $2000 savings?

Re-think your plan.

FRank

Bavaro golfer · Nov 1, 2012

Thank you very much, Playacaribe2. That's very useful information. I do realize that I am new here in DR, and that I don't have the on-the-ground experience of the folks here in DR for many years. I am just researching for clues, that's all, trying to see what options are available to me. And I am listening to you. Thank you again.

Castle · Nov 1, 2012

There are other matters involved that you should consider. A Ford Taurus is a rather rare vehicle here. There are some, but not many of them on the roads. So that brings two main concerns: 1) resell value is going to be lower than other vehicles. And as you probably know, vehicle conditions are not as important as brand and year. 2) Spare parts and qualified mechanics are going to be scarce. Yes, some will work on the car, but I bet they won't know very well what they are doing. Your car will sooner or later start to become a frankenstein with a Toyota A/C compressor (too heavy to ship and OEM from the US), a Mazda transmission (same as above), etc...

I would definitely advise against shipping the car. I understand you could be very attached to it, but if you're trying to save money bringing the car, I don't think you will be saving much and in the long run it will be far too expensive and frustrating.

rubio_higuey · Nov 1, 2012

I think the rules is that if DGII permits importing car older than 5 years it calculates taxes & fees based on the same model 5-year old. E.g. your 2003 Taurus valued at 358k pesos would be calculated taxes and fees at the value of 2007 Taurus, which is valued here at 597k pesos. After Dec 31, you would have to "upgrade" to 2008 Taurus value (2013 - 5 = 2008), which is 679k pesos.

Now what exemption you would get, I do not know (most likely a % off the taxes, e.g. 50% off, check with aduana (customs) to tell you exactly how is exemption for new residents calculated).

If you decide to import, import ASAP because ITBIS will go up from 16% to 18% soon, and first plate will also go up 5% more (17% to 22%).

rubio_higuey · Nov 1, 2012

Repsonding to Castle about American brand vehicles - mechanics and parts.

You can get decent mechanics for US brand cars in SD (primarily from Chrysler brands, like Chrysler, Dodge, Jeep, etc. but they started to work on other American model cars - Ford, Chevy, etc.). They are called Chryscar.

I only allow street mechanics basic repairs, mainly front drive train and A/C. Anything engine-related or electrical I use Chryscar (I own a Chrysler vehicle). Though they are more expensive than street mechanics, they are MUCH cheaper than dealer's mechanics (Reid & Co.) and they are worth the peace of mind, because they work with manufacturer's manuals repair guides and diagrams.

(Just one example, when I had an electrical problem, I went to the "best" car electrical mechanic in Higuey ... I brought circuit schemes for my car printed from the Net ... he looked at the schemes and said... you better take that to Santo Domingo) LOL
Anyway, the diagnosis of my electrical problem (loose ground) and the correction, was just 1000 pesos at Chryscar (US$33 at that time's exchange rate of 36:1. They also changed the drive belt, water pump and some pulleys, at a cost of 3.300 pesos I think (parts extra, I provided), so that was like less than US$94 for a 4-hour work, and I had piece of mind that the timing belt would be timed properly, everything will be torqued back to factory specs, etc., (btw a Higuey street mechanic wanted for this job 2500 pesos w/ no experience changing Chrysler timing belt, no factory repair manual with spec, etc.)

Chryscar:
Tel. 809-599-5839
Rony (one of the owners) 809-886-8181 (cell).

They are close to Acuario Nacional, parallel to Av. Espana.

I buy parts from RockAuto, Amazon and CarParts Wholesale. I only buy emergency situation parts in the DR.

rubio_higuey · Nov 1, 2012

playacaribe2 said:
I have shipped three vehicles here, the last being in 2008. One of those shipped was outside the 5 year window and was allowed in after a "penalty" was assessed....so it is possible...if you want to pay.

I think the 5-year old vehicle stipulation was assessed after 2008, (2009 or2010) so if you imported a 10 year vehicle in 2008 it was still assessed at regular fees & taxes for its proper year, make and model.

cobraboy · Nov 1, 2012

rubio_higuey said:
I think the rules is that if DGII permits importing car older than 5 years it calculates taxes & fees based on the same model 5-year old. E.g. your 2003 Taurus valued at 358k pesos would be calculated taxes and fees at the value of 2007 Taurus, which is valued here at 597k pesos. After Dec 31, you would have to "upgrade" to 2008 Taurus value (2013 - 5 = 2008), which is 679k pesos.

Now what exemption you would get, I do not know (most likely a % off the taxes, e.g. 50% off, check with aduana (customs) to tell you exactly how is exemption for new residents calculated).

If you decide to import, import ASAP because ITBIS will go up from 16% to 18% soon, and first plate will also go up 5% more (17% to 22%).

There is also a 20% penalty ON TOP OF THE HIGHER VALUE AND TAXES/FEES on a vehicle older than 5 years.

I found that out the hard way when bringing in our 2002 Ford E350 15-pqassenger van in 2008.

cobraboy · Nov 1, 2012

Bavaro golfer said:
ASIDE QUESTION: Does anyone see any possible change to the law, based on this 9 July 2012 article? "Used auto dealers feel the pain, want old car import ban lifted" -- http://www.dominicantoday.com/dr/lo...-feel-the-pain-want-old-car-import-ban-lifted

I don't know about that law specifically, but understand that the importation of used cars was a major method of money laundering for quite a while.

Cars could be bought at auctions in the states for cash derived from the drug trade, imported here, sold at a better price than in the states and the $$$ came out clean.

Might there be a connection? I don't know but am a tad suspicious.

william webster · Nov 1, 2012

I have heard the same thing..... not a good business to choose.

Competition is fierce..... wrong guys to compete with

Castle · Nov 1, 2012

Regardless, importing cars will always be good business here, as long as taxes stay within reasonable margins. The car rotation per capita here is huge for a poor country. I have no stats, and can't quote marketting studies, just observation. As a friend of mine says: El peaton no es gente (pedestrians are not people). Rude, but with shades of truth here.

playacaribe2 · Nov 1, 2012

rubio_higuey said:
rubio_higuey said:

After Dec 31, you would have to "upgrade" to 2008 Taurus value (2013 - 5 = 2008), which is 679k pesos.

Click to expand...

Just to clarify a bit. You can bring a 2007 vehicle into the DR through June 30, 2013. DGII does not operate on a calendar year basis for purposes of the 5 year auto import rule.

Respectfully,
Playacaribe2

Bavaro golfer · Nov 1, 2012

Ricky11 wrote: keep your car in the states and garaged (if still possible ) and if you ever decide to move back it will be waiting for you plus if you go back to visit, you will save the expense of renting a vehicle.

------------------------

Thank you Ricky11. Right now, my car is in a Miami self-storage warehouse (secure, indoor parking garage) and I pay $85 per month = $1,000 per year, which gets too expensive, very FAST (it's been there 6 months now). I want to get it OUT of storage and into my driveway in Bavaro IF POSSIBLE. I will do the cost-benefit decisionmaking AFTER I figure out HOW to import it.

Bavaro golfer · Nov 1, 2012

Castle said:
There are other matters involved that you should consider. A Ford Taurus is a rather rare vehicle here. There are some, but not many of them on the roads. So that brings two main concerns: 1) resell value is going to be lower than other vehicles. And as you probably know, vehicle conditions are not as important as brand and year. 2) Spare parts and qualified mechanics are going to be scarce. Yes, some will work on the car, but I bet they won't know very well what they are doing. Your car will sooner or later start to become a frankenstein with a Toyota A/C compressor (too heavy to ship and OEM from the US), a Mazda transmission (same as above), etc...

I would definitely advise against shipping the car. I understand you could be very attached to it, but if you're trying to save money bringing the car, I don't think you will be saving much and in the long run it will be far too expensive and frustrating.

Thank you everybody. Like I said, I am merely researching the procedures and workarounds for importing a car over 5 years old. I know it can be done. I know it requires additional fees, fines, bribes, etc. I know there are problems and reasons to not do it. My decision to do it or not do it, will come AFTER I gather the facts, and weigh the benefits against the costs. Right now, I am researching HOW to do it, not WHETHER to do it.

It's not that I am attached to the car. The simple fact is, I do not want to spend $25,000 here to buy a new or like-new car of mine's quality, when I already own one that I am happy with. I am retired, and not with an unlimited budget. So I just want to know HOW to do it.

I am not concerned at all about resale. I would keep the car until it drops dead (or I do, whichever comes first).

I purchased what was intended to be a temporary beater car -- a 2000 Honda Accord -- for RD$225,000, and I have a car mechanic in Veron who is a magician -- recommended by my friends (he maintains their cars, too), and he has worked miracles on my "beater" that in the USA would have been considered utterly impossible, therefore long term maintenance of a 2003 Ford is not a concern to me. Besides, I see many Fords in Punta Cana-Bavaro, including dozens of Ford Taurus cars that I've seen locally on the road.

So, thank you all for your advice against importing it, but my purpose in posting here is to figure out HOW to do it, not looking for advice of whether to do it or not.

playacaribe2 · Nov 1, 2012

Bavaro golfer said:
Thank you Ricky11. Right now, my car is in a Miami self-storage warehouse (secure, indoor parking garage) and I pay $85 per month = $1,000 per year, which gets too expensive, very FAST (it's been there 6 months now). I want to get it OUT of storage and into my driveway in Bavaro IF POSSIBLE. I will do the cost-benefit decisionmaking AFTER I figure out HOW to import it.

BG:

Sell the vehicle in Florida and take the proceeds and purchase a 2007 or newer Toyota or Honda product and then import into the DR.

I understand the car is your baby, but it will be difficult (expensive) to import and equally as difficult to keep it pristine in the DR. Importing that type of vehicle is neither wise nor cost effective.

But, at the end of the day, it is afterall your decision.

Respectfully,
Playacaribe2

rubio_higuey · Nov 1, 2012

@ cobra - they still use car importing to launder.
Take 10k USD, they buy a car, 4k USD taxes and import fees, sell for 12k-14k USD here. They still get 80% or more on any laundered dollar.

Bavaro golfer · Nov 1, 2012

playacaribe2 said:
BG:

Sell the vehicle in Florida and take the proceeds and purchase a 2007 or newer Toyota or Honda product and then import into the DR.

I understand the car is your baby, but it will be difficult (expensive) to import and equally as difficult to keep it pristine in the DR. Importing that type of vehicle is neither wise nor cost effective.

But, at the end of the day, it is afterall your decision.

Respectfully,
Playacaribe2

Yes, I did at first consider buying a newer one in the USA and importing it here, but then I saw this at < Importing a car into the Dominican Republic > which looked to me like a disqualifier -- tell me, what do you think?

"As a new resident you can bring in a car at little or no duty if you have owned it for two years, and it is less than five years old."

[and quote] "In the United States obtain the original title, certified by the Department of Motor Vehicles, and then legalized by the nearest Dominican Consulate. Obtain the original registration for the previous three years. Also, you must have a residence visa, an original Dominican Consular invoice stamped at the nearest Dominican consulate, an original drivers license, the license plates, and a valid passport. Make sure you have copies of all these documents.

---------------
Therefore I figured that being required to own the (newly purchased substitute car) in the USA for at least 2 years before shipping it to DR (and having to show DR Customs the car's annual USA registration papers (proving who owned it) for the last THREE years, killed that idea. Is that DR1.com info post (linked above) true or false?

windeguy · Nov 1, 2012

A newly purchased car has to be owned for at least one year if you are using a new residency to bring it in.

cobraboy · Nov 1, 2012

rubio_higuey said:
@ cobra - they still use car importing to launder.
Take 10k USD, they buy a car, 4k USD taxes and import fees, sell for 12k-14k USD here. They still get 80% or more on any laundered dollar.

Of that I have no doubt.

And that's one reason you see so many cars on lots, a number that far exceeds any possible demand.

AND they sell most cars now on credit, you know, like 2.5-3% PER MONTH. So that US$14k is really US$25-30K at the end of the term.

Quite the lucrative cash flow racket...

Can I import a like-new, 9-year old car via ferry from PR?

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