Our trip report, and the reality of import duties

RockyM

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Jul 16, 2018
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Just got back from another great trip to DR. Flew into Santo Domingo and rented a car for our drive up to Las Terrenas. Reserved the car on-line with Europcar. Got to the counter and proceeded to duke it out with the counter agent over insurance, as expected. I lost both rounds decisively and ended up getting most of the insurance since this was our first driving "adventure" in DR. Hit the road in a Nissan XTrack. It was the Nissan or a fairly new red Mercedes crossover. Call me crazy but chose the Nissan. Didn't need the extra attention (and limited ground clearance) the red Merc would provide.
The air conditioner was broken in the car rental building, so my wife and I were sweating by the time we got our of there. The counter agent was dressed with a shirt, tie and, yes, a sweater!!! A subtle observation I couldn't help but make.

Made a beeline for the toll road North to LT. Immediately found myself starting wide eyed at an oncoming truck in my lane, performing an ill advised passing maneuver. How dare he!! Hah hah. We've been in DR enough to understand how they drive, so tucked over against the wall, shrugged, and continued on. Game on for the drive to Samana!

Nice uneventful drive up the toll road and arrived safe, albeit a bit road weary. My thoughts on the car rental and driving adventure include the following.
1) Would rather leave the driving to a local, so next time we'll most likely get a cab, then rent a quad or something in LT. We were advised some folks rent the car in SD, drive up to LT, drop the car at Europcar in LT, then re-rent for the trip back to the airport. Much cheaper than renting for the whole stay. But you may still need to rent something if you want to get around locally. Almost a no-win situation.
2) Driving in DR is simply insane. I have experienced driving in the Far East, where the concept is sort of like the Bruce Lee concept of water "flow" (i.e. if you want to exit or whatever you just sort of elbow your way to the exit), sort of like a river. In the West it is very rules based, of course (lanes, lights, turn signals, etc). The DR is sort of a hybrid of the two (i.e. we have lanes and such, and we suggest you use them, but it is not really necessary).
3) The actual roadway is a sort of social center for Dominican life, and all the dangers that go with that.
4) Driving at night is much worse than daytime.
5) Speed humps pop up with absolutely no warning.
6) Guagua's rule the road. They don't give a damn. Had to do a full reverse at a four way intersection because a bus driver wouldn't yield.
7) And other stuff most of you are probably very aware of. :0)
Continued.....
 

RockyM

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Got in and immediately made our way to the Supermercado Lindo to stock up. Some things are fairly priced; others not so much. Pleased to discover the wine selection is not bad and prices are fairly reasonable. We also learned the meat selection in town has improved significantly. The Supermercado Pola down the street now has some good meats at reasonable prices. We went to a barbecue our real estate agents hosted and the meat and chicken was quite good.
We met many more wonderful expats from US, Canada and Europe. Las Terrenas is a very eclectic place. A lot of retirees that are in a laid back place in their life and eager to make friends.
We never made it to the zip lines or the Falls, but we’ll have plenty of opportunity for that in the future.
A lot more to share, but I’ll leave it at that. Each trip we’ve made to DR has been enlightening, with some surprises, but never short on good experiences, and continues to cement our decision to retire in LT in 18 months and counting.
 

RockyM

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Oh, the import duty part. So, in preparation for our inevitable relocation to DR we had a call with our local DR attorney regarding obtaining residence status and the cost for importing our household goods and vehicle. We have found it nearly impossible to understand what import taxes to expect. She directed us to an import agent, where it got very confusing, with him quoting the following...

20% + 18% + 17% for vehicle.

20% + 18% for household goods

Our understanding was no duties for one-time import of household items, and probably about 35% total tax and registration for the vehicle.

We really need to understand the taxes due, but at this point we are totally lost. I don't need exact numbers but a gross figure will be necessary. Did not expect it to be this difficult.
 

Cdn_Gringo

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Apr 29, 2014
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The way it was done in the past, the way I had to do it and the way you will have to do it are all different.

For household goods to be tax free:

You have to have your residency card and cedula in your hand.
You must import your goods within a year of receiving your residency.
You have to make an appointment with the tax people to apply for the exemption in person in Santo Domingo.
You can't apply until your goods arrive at the port.
You can't clear your goods at the port until you have the exemption (you can always pay the duty though)
You are charged storage fees for each part of a day your goods remain in the port.
The exemption process for household goods can be easy or it can be hard - it just depends
You household goods are supposed to be used. Brand new goods are not covered - but often can be slipped through.

The process for your vehicle is a separate process and is done at a different office. I didn't import a vehicle so I son't know much about how it is supposed to work.

How much it all costs, well good luck pinning that down. 20% + 18% on what value? Your numbers or theirs? You probably won't know what the bill will be until you walk through the door. Even with an exemption, you still have to pay customs for the inspection, the port fees, broker fees, transportation fees, storage fees and just plain miscellaneous fees.

My only experience is four years old and here that is a lifetime when it comes to official processes and fees.

Finally, time your goods arrival so that it doesn't coincide with Christmas, New Years or Easter. The rest is a roll of the dice.
 

william webster

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Jan 16, 2009
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Vehicle value based on their estimation.... can be as low as 20%... mine was

Sorry to hear the new rules....much tougher
 

RockyM

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Well, the vehicle will most likely be a 2 year old Rav4. Not hugely valuable, but the import guy the lawyer referred me to is indicating 55% taxes, per above. No idea where he gets this from. The larger issue is this. I am paying the attorney a rather large fee to handle our residency. I would think they would be able to provide some protection from gross abuse of the law. I can deal with the pay off's and such, but if the customs office is being abusive I would expect some protection from that. Whether that is a reasonable position or not is the question. Is everyone at the mercy of a corrupt customs agency, including the attorney? Hope not.
 

judypdr

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I did not pay any taxes for the household items I imported in a 40Ft container. Well, they did charge me for a large desk that they said was business not personal. I didn't import a car because it needed to be completely paid off so that I had the title....
 

RockyM

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I did not pay any taxes for the household items I imported in a 40Ft container. Well, they did charge me for a large desk that they said was business not personal. I didn't import a car because it needed to be completely paid off so that I had the title....

No taxes for normal household stuff in a container is what we understand. Thanks!
 

RockyM

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Determined the import agent providing the figures above has no clue. He doesn't work with foreign imports, which I guess is good news. I will continue to post what I find. It may serve to help others as well. Just trying to avoid any "surprises"; at least as much as possible :cross-eye
 

william webster

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Well, the vehicle will most likely be a 2 year old Rav4. Not hugely valuable, but the import guy the lawyer referred me to is indicating 55% taxes, per above. No idea where he gets this from. The larger issue is this. I am paying the attorney a rather large fee to handle our residency. I would think they would be able to provide some protection from gross abuse of the law. I can deal with the pay off's and such, but if the customs office is being abusive I would expect some protection from that. Whether that is a reasonable position or not is the question. Is everyone at the mercy of a corrupt customs agency, including the attorney? Hope not.

I had my customs clearance agent with me for my car declaration....
I spoke little to no Spanish at the time.

She was not allowed in the room with to sort out the vehicle.

Times may have changed
 

drstock

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Oct 29, 2010
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You could always consider leaving all your stuff behind and forgetting the cost and hassle of importing. I did - came with just a suitcase and bought everything here, storing my belongings in case I needed them later or couldn't bear living here, and selling them or giving them away when I discovered I could live without them.

But then I came from England which is further and therefore more expensive freight-wise than North America, and I'm single.
 

RockyM

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I had my customs clearance agent with me for my car declaration....
I spoke little to no Spanish at the time.

She was not allowed in the room with to sort out the vehicle.

Times may have changed

I suspect the times change frequently in DR. Hah ha. The process may certainly be different now. More concerned about getting fleeced at the border. I think a key is having a good agent there.
 

RockyM

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Jul 16, 2018
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You could always consider leaving all your stuff behind and forgetting the cost and hassle of importing. I did - came with just a suitcase and bought everything here, storing my belongings in case I needed them later or couldn't bear living here, and selling them or giving them away when I discovered I could live without them.

But then I came from England which is further and therefore more expensive freight-wise than North America, and I'm single.

We've explored several options, and we do have some time to sort it out. My wife is a project manager and I am in compliance/auditing, so we are both sticklers for process. This all may test our resolve. ;0)
 

william webster

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I suspect the times change frequently in DR. Hah ha. The process may certainly be different now. More concerned about getting fleeced at the border. I think a key is having a good agent there.

Hispaniola Freight in Sd... Wendoline if she's still there...

Freight people... clear customs... everything
 

oriole100

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Oct 9, 2005
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I'm a contractor. We have lived here for 12 years. Save yourselves the headachs. Buy what you need here. Make your new Casa the way you want it. Bring the pic's and things that matter to you. It's a new life, Half the things you ship you won't use. Good luck. We're still trying to sell or give away some of the thing we brought.
 

ljmesg

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Aug 6, 2017
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Rocky, the taxes are the least of your problem. The potential months and months and months and months to get your items out of customs is your real nitemare.

Then you have to sweat the actual condition of your items and trust me, nothing gets tucked away neat and tidy in customs. It's more ripped apart then thrown together usually upside down.

The best forwarder in SD has zero sway in customs. Customs operates in its own vacuum with seemingly no checks and balances.

I wont go into my specific dealings with this amorphic blob of an entity but suffice it to say, expect the worst, then expect it to get really really worse.

The best thing to do is have a forwarder then lean on them every day.
 

Cdn_Gringo

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Apr 29, 2014
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The process shouldn't take months but it can take a few days, maybe a week. If there is a car involved, perhaps a bit longer. You need to be standing in front of your broker when the paperwork gets delivered. You need to be at the port when customs rips through your container and you need to be in Santo Domingo if you wish to pursue a resident tax exemption. A real pain in the a$$ if you don't live anywhere near Santo Domingo.

Your broker cannot get you your exemption and it is not automatic. Your broker cannot register your car. Port fees 4 years ago were $100 USD/day. You can get an appointment to apply for the household goods tax exemption fairly quickly but not usually on the same day you request one. There must be a broker who can facilitate all this, but finding them is the trick. My brokers said everything would be fine, but they lied and had no idea what to do for a resident foreigner. They also couldn't seem to figure out why they couldn't call me at 5 pm requesting I attend an 8 am next day appointment.

Language was a barrier at all stages for me.
 

chico bill

Dogs Better than People
May 6, 2016
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Imagine life in the DR and especially for ordinary Dominicans if they could purchase goods like appliances, electronics and cars without the huge burden of the large additional costs imposed by the government.
Everything from Corn Flakes to a house would be 15-30 percent cheaper.

Yes it's an island but it's a large one & reasonably close to Florida.
The first Dominican President who can significantly cut into this burden will be regarded as a savior.

But we all know where the millions in import fees are going.
I'm sure many government officials are sleeping on Boll & Branch sheets.
 

the gorgon

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Sep 16, 2010
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Imagine life in the DR and especially for ordinary Dominicans if they could purchase goods like appliances, electronics and cars without the huge burden of the large additional costs imposed by the government.
Everything from Corn Flakes to a house would be 15-30 percent cheaper.

Yes it's an island but it's a large one & reasonably close to Florida.
The first Dominican President who can significantly cut into this burden will be regarded as a savior.

But we all know where the millions in import fees are going.
I'm sure many government officials are sleeping on Boll & Branch sheets.

i see you have not fully grasped the concept of poor countries, with poor people. it amazes me that some people live in countries like these for extended periods of time, yet do not have the faintest idea how these places work. yes, we all agree that the taxes are higher than we would like to see. and , yes, we agree that thieving politicians pocket exhorbitant amounts, and drive around in ill gotten gains Prados. there is, however, another side, and opening eyes will help one see why certain things are the way they are.

a few days ago a playful dog jumped up at me, and nipped me on the finger. i took the precautionary trip to an outfit in POP called Centro Sanitario, to get an anti tetanus and anti rabies vaccination. there were hundreds of people there.at 8am. numerous mothers with ill infants, pregnant women, men with all kinds of social diseases..you name it. well, i got my vaccinations and was out of there without spending a peso. it is all free...to everyone.

so is a lot of other stuff here. some of it is expensive. the government has to find ways to afford social services.

read what the same service costs in USA...

https://www.vox.com/policy-and-politics/2018/2/7/16851134/rabies-treament-expensive-emergency-room
 

chico bill

Dogs Better than People
May 6, 2016
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i see you have not fully grasped the concept of poor countries, with poor people. it amazes me that some people live in countries like these for extended periods of time, yet do not have the faintest idea how these places work. yes, we all agree that the taxes are higher than we would like to see. and , yes, we agree that thieving politicians pocket exorbitant amounts, and drive around in ill gotten gains Prados. there is, however, another side, and opening eyes will help one see why certain things are the way they are.

a few days ago a playful dog jumped up at me, and nipped me on the finger. i took the precautionary trip to an outfit in POP called Centro Sanitario, to get an anti tetanus and anti rabies vaccination. there were hundreds of people there.at 8am. numerous mothers with ill infants, pregnant women, men with all kinds of social diseases..you name it. well, i got my vaccinations and was out of there without spending a peso. it is all free...to everyone.

so is a lot of other stuff here. some of it is expensive. the government has to find ways to afford social services.

read what the same service costs in USA...

https://www.vox.com/policy-and-politics/2018/2/7/16851134/rabies-treament-expensive-emergency-room

First I hope you have no issues with the dog bite. I assume you got immune globulin, but in fact if you got bit by a rabid animal you are also supposed to follow with several doses of rabies vaccine over a two-week period.
If you washed the wound good immediately after you should be fine.

And excessive taxes (and corruption) is why poor countries stay poor.
Yes the cost of medical is too high in the US.
But this is because of lawyers, pharmaceutical, lobbyists and insurance.
But many basics like food and transportation are cheaper.
Just the added cost on gasoline & diesel in DR which abouts to about an extra $30 per tankful (currently gasoline is $2.29 in Florida - ~ double that in DR) would pay for medical in DR.

But wait it is getting worse in the US - There are many Congressmen trying to vote to delay or nullify the high taxes which were set to kick in in 2019 when Obamacare was passed, but a few in Congress are blocking the vote - so health care cost is going to rise again. Some say significantly.

Me - I'm still waiting for that $2,500/yr in medical insurance I was going to save.
Promises to fix something by politicians always seem to favor those in power.

What you referenced is the first rule from the socialist handbook - placate the masses.
OK you are happy because it cost you nothing (at least that is what you think) .
Keep rice and beans and plantains low, fix the roads before election - boom the poor think the government is their friend.