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  1. #1
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    Default Web shopping puts an end to Dominican retailers’ decades-long price gouging

    Santo Domingo.- Dominican Republic’s Couriers Association (Asodec) on Thursday slammed those who oppose online purchases on claims of lost tax revenue, and also revealed what local buyers have long suspected; that the country’s retailers have price-gouged them for decades.

    The entity criticized the retailers who claim that items bought on the web for under US$200 pay no tax, warning that any levy placed on internet shopping will “severely” jeopardize Dominican consumers even more.

    Asodec president José Burdié said a tax on Web shopping would also breach Dominican Republic’s free trade pact with the U.S. and Central America, which provides for only a customs fee on purchases of less than 200 dollars. He said web purchases currently pay a 25-cent-per-kilo fee.

    He said a tax will hurt consumers who currently save as much as 300% when they buy a product online. “This could lead to a constraint to the facilities now available to consumers to buy their products freely.”

    The business leader also warned that any hurdle on online purchases could also jeopardize the country’s 65 million pounds of fresh vegetable exports, since most of the shipments are placed on fights which bring items before returning.

    Burdié debunked the National Commercial Companies Association’s complaint that several of its affiliates have gone under from the jump in Web shopping, and said the failures were from mistaken investments and to Dominican merchants’ “failure to adapt to the market’s reality.”

    The Courier Association added that estimates that around 65,000 Dominicans buy online each month and about 500 thousand a year.

    Source: DT

  2. #2
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    I think it's not only how much you save, it's what you can find and its quality. The other day I was looking for two things for a cell phone: a battery and a USB/charger cord. The battery I found , at 900 DOP (US$ 21), and the cord was nowhere to be found (Sirena, Plaza Lama, Carrefour). In Amazon I found the battery at $5 (210 DOP) and US$3 for 10-foot cord. Both things for half the price of the battery locally. And the battery they were selling me here didn't really look too reliable. If I had paid tax for all that, the battery would have ended up being maybe US$6 or 250 DOP. How can they charge 900 DOP?

  3. #3
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    "How can they charge 900 DOP?"

    That is exactly what it is about. People did not know better, they could rip them off as they saw fit. Now people start learning and and that is what is itching them...

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    I have noticed for years now that it is almost always less expensive and the quality is better if I import an item rather than purchase it here. That goes from compact fluorescent light bulbs up to 6.5 KW generators.

    Sure most of the stuff purchased from anywhere is made in China, but there are different levels of quality in those products. The US resellers import the "A and B grade" products while the DR imports the "C or D grade" products and sell them at A+ prices. That is price gouging.

  5. Likes Mauricio liked this post
  6. #5
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    Quote Originally Posted by windeguy View Post
    I have noticed for years now that it is almost always less expensive and the quality is better if I import an item rather than purchase it here. That goes from compact fluorescent light bulbs up to 6.5 KW generators.

    Sure most of the stuff purchased from anywhere is made in China, but there are different levels of quality in those products. The US resellers import the "A and B grade" products while the DR imports the "C or D grade" products and sell them at A+ prices. That is price gouging.
    glad you cleared that one up, windy. there are good Chinese products, but the stuff imported into the DR is the real low quality crap, and they charge an arm and a leg for it.

    when internet shopping really takes off big, some guys are going to be having fire sales on their Bimmers. i can just see some enterprising guys acting as middlemen, buying stuff for those who do not have computers, and making a decent profit, but keeping the prices reasonable. my buddy has a business mail address, and i am using it to bring in a pair of headphones that i just bought. it is going to cost me a few dollars to ship it, and it cost me 35 bucks to buy. it would easily sell for 3 large here, if i could find it.

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    Here we are again with the same thing. It now looks to me like Dominican tradition that the retailers' association brings this up every year.

  8. #7
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    Quote Originally Posted by rubio_higuey View Post
    Here we are again with the same thing. It now looks to me like Dominican tradition that the retailers' association brings this up every year.
    Just in time for those planning on Christmas shopping?

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  10. #8
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    Quote Originally Posted by rubio_higuey View Post
    Here we are again with the same thing. It now looks to me like Dominican tradition that the retailers' association brings this up every year.
    Quote Originally Posted by leromero View Post
    Just in time for those planning on Christmas shopping?
    Correct. They actually started to tax items priced under $200 US and it backfired. They found out it violated already signed trade agreements.

    NOTE: If you try and import a TV that costs $199 US or less, DR Customs will still try to charge you a duty. I am not sure how they work around the $200 rule, but they still assign "their own value" , (i.e. something they pull out of their, um, hat) to such TVs and charge duty.

  11. #9
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    i started a thread on this some time ago:
    http://www.dr1.com/forums/living/137...ed-stupid.html

    meant to revive it with tho recent articles that became a base for that text from dominican today:
    Compradores por internet se ahorran hasta 300%, según Asodec - DiarioLibre.com
    Couriers: gravar las compras por internet violaría el DR-Cafta - DiarioLibre.com

    again, read the comments. great insight into what dominicans think about it...

  12. #10
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    one of the comments:
    APROVECEMOS LA OPORTUNIDAD: VENDAMOS TAMBIEN NOSOTROS
    RD está extraviado. Lo que necesitamos los dominicanos es aprovechar ese mismo medio y COMENZAR A VENDER EN INTERNET,- NO SOLO COMPRAR....hay incontables productos artesanales dominicanos que se pueden vender desde RD hacia USA en sites como Amazon o eBay, pero la gente no lo sabe. Además los couriers cobran una exageración por llevar un producto RD-USA, aunque en vía contraria es muy barato, me dicen que por INPOSDOM los envíos a USA son super económicos.


    makes me wonder, why is it that no one looked at this as a business opportunity? are there taxes on items under 200 dollars coming out of DR and to the USA?

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