Importing into the DR, FAQ

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Pib

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Jan 1, 2002
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Every once in a while we have somebody with questions about importing into the DR/exporting to the DR. The questions are overall the same, and although they have been responded in many other threads I thought it would be good to put them in just one post, bookmark it and then just sent people to it when they have one of these questions.

If anyone is interested in my qualifications, I am a licensed Custom Broker, almost 10 years of experience in the Import/Export business, maritime and air transport and logistics of international transport. Nothing impressive but I think I can answer at least some of the typical questions. I must state that this DOES NOT constitute formal advice of any kind. You MUST consult a Custom Broker to obtain/confirm information regarding this matter.

The information does not apply to goods brought into the DR as a traveler?s luggage. I am assuming that you have at least basic knowledge of international commerce and INCOTERMS.

Q: Can anyone import goods into the DR?
A: Yes. A private person may import goods if they are for personal use. If the quantity and nature of these goods indicate that they may not be for personal use customs will (in most cases) require that a legally established company be the consignee. You MUST be at least legal resident to have a shipment cleared on your behalf; Customs will require your ID number (c?dula). For businesses the Tax Contributor Number (RNC) is required.

Q: What documents do I need to import goods into the DR?
A: It depends on the type of goods you will be importing. In general ALL shipments will require the following:
*Commercial Invoice
*Bill of lading or Air Way Bill
*Consular Invoice
*C1 (optional)

Some shipments may require special permits and documentation. For example, to import cosmetics, medicine and food you will need permits from the Health Department (Secretar?a de Salud P?blica), these means that there is additional procedure outside the Customs clearance that have to be followed PRIOR to the arrival of the shipment. You must know that not everything can be imported into the DR. Please consult a customs broker if you are not sure about the goods you are importing prior to the actual shipment taking place.

Please be aware that ALL documents MUST be original and printed on original stationery (not photocopies, no faxes). Customs frowns upon the use of handwritten documents, the more official-looking the documents are the least problems you may have. If you have lost the documents or they haven?t arrived on time you will only be able to clear your shipment if you present at customs a bond for the value of the merchandise. Customs may still decline to let you take your goods.

Q: What is a Consular Invoice?
A: By law the shipper must summit an original commercial invoice to the Dominican consulate closest to the point of shipping.The consulate will issue a Consular invoice this document is needed to clear the shipment in the DR. The fee that the consulate charges varies depending on the location. In absence of a Dominican Consulate in a radius of 100 miles to the shipping port the shipper must require the local chamber of commerce to issue a letter stating that there isn?t a Dominican consulate within the required distance. Although the law states that a Consular invoice is needed for any shipment worth US$100.00 or more, in the practice it is only needed for shipments worth US$1000.00 or more. If the consignee cannot produce the Consular invoice at the time of clearance customs will fine the consignee. At the moment the fine is about RD$6500.00

Q: What is a C1?
A: If the importer buys the dollars to pay for their shipments from a bank the bank will issue a document stating that you bought your dollars there, this document is a C1. The bank will charge 4.75% of the amount of US$ bought, this accounts for the Currency Exchange Tax (Comisi?n Cambiaria). This money goes to the central government. If you bought your dollars from any other source then (since you cannot produce the C1) Customs will charge the 4.75% along with the rest of the duties and taxes.

Q: What is the typical procedure to clear a shipment at Customs?
A: You, or your broker on your behalf, must fill out a form (Form. 3480) declaring the details of the shipment (Shipper, consignee, commodity, total FOB, freight, insurance, etc). This document along with the documents listed above will be presented at the Customs office of the port/airport of arrival. A Customs officer (Verificador) will be assigned to inspect the shipment and confirm the veracity of the information declared in the Form. 3480. ALL shipments are inspected. Once the shipment is inspected the form goes to the Assessment Department (Valores), this department will check the prices that you declared (your prices may or may not be accepted as true and will be readjusted by customs) and calculate the amount of duties and taxes to be paid. After paying these you can withdraw your goods from Customs.

You must make your presentation no later than 10 days counting from (and including) the arrival date. Failure to do so will result in heavy fines.

Although this is a basic review of the procedure in reality is DOES NOT work so simply. Consult your customs broker for details.

Q: What should I expect to pay?
A: Ahhh, that?s a trick question. There isn?t a ?flat? tax in the DR, so duties can go from 0% to 30%, it depends on the commodity that you are importing. Duties and taxes are calculated on a CIF basis. Only insurance bought from Dominican companies are accepted at customs for the purpose of calculating taxes. If you cannot produce your insurance policy at the time of clearance Customs will assume 2% of the FOB value as cost of insurance. Taxes and duties are paid in RD$, the current exchange rate used at customs 21.50 RD$/1 US$

Besides duties certain taxes and fees are also paid at the time of clearance:
*Comisi?n cambiara (see C1 above): 4.75%
*ITBIS: 12%
*Selectivo al consumo: 20 - 40% (luxury goods and alcohol)
*Warehousing (Portuaria): calculated on the basis of weight and days at port.

If you are importing full container loads (FCL) you will have to leave a deposit of RD$6500.00 per container to guarantee that they will be returned clean and in good condition within 14 days of arrival to port. For each day after that US$15.00 per container will be deducted from the deposit. This is not paid to the government but rather to an association of shipping lines.

Q: Are there exception to the rules?
A: Yes, certain businesses and commodities are treated in a different manner. Manufacturing Free Zones companies for example are exempted from paying duties and taxes (some fees apply). There are many other exception to the rules, please consult your custom broker for details.

Q: What are the major ports and airports in the DR?
A: The largest airport in the DR is AILA (SDQ), near Santo Domingo followed by La Uni?n (POP) near Puerto Plata. Aeropuerto Internacional del Cibao (STI) near Santiago has recently started their operations.

The most important port in the DR is Rio Haina. Rio Haina Oriental is operated by the government, Rio Haina Occidental is operated by Maersk/Sealand. Puerto Plata is the second largest. Other ports are Boca Chica (west of Santo Domingo), San Pedro de Macor?s, and Manzanillo. There are a few other ports that don?t have regularly-scheduled lines going in or out.
 
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Chris

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Thanks for this Pib! I have a few questions.

What would you consider to be fair brokerage fees from a customs broker?

Could you suggest how to deal with insurance in order to minimise theft in customs?

Could one hold one's customs broker responsible for theft?

What 'sane' advice could you offer in terms of minimising 'ad-hoc' type payments to all and sundry?

Thanks again!
 

Pib

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Jan 1, 2002
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Q:What would you consider to be fair brokerage fees from a customs broker?
A: That is a question that is not easy to answer. Clearance rates depend on how good your broker is and how good a customer you are. That meaning that a well-known, reputable broker will certainly be more expensive that a guy with a briefcase. If you are a frequent customers and have a large volume of business you'll be able to push for a lower rate. I have seen anything from RD$1000.00/shipment (the extreme of either case) to RD$50000.00/shipment for shipments that are more valuable or complicated cases. As I always say go for a reputable broker.

Q: Could you suggest how to deal with insurance in order to minimize theft in customs?
A: Insurance only covers any eventualities that may occur during transport. Once the commodities have been received at the port it is no longer covered by insurance. I do not know of any company that covers theft at customs.

Q:Could one hold one's customs broker responsible for theft?
A: Only if you can prove that he/she/they stole it. In the years I've been doing this I've never heard of such case, hence the importance of choosing a qualified, well known customs broker.

Q: What 'sane' advice could you offer in terms of minimizing 'ad-hoc' type payments to all and sundry?
A: Get involved in the process, at least in the initial shipments. I would advise you to go to the port with your broker, ask as many questions as you need to understand what is going on. Based on these experiences try to get your broker to quote a flat rate that includes such "expenses".


Keep the questions coming cause I am running out of ideas.
 
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Robert

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The questions and answers benefit all. That's why Pib called it a "Importing to DR, FAQ". Continue...
 

Chris

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Oct 21, 2002
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Thanks Robert! I'll re-phrase my last question.

Pib,
This is a question of a somewhat nebulous nature. Maybe you could suggest to us the qualities of a 'reputable' custom's broker. It is sometimes hard to figure out what you are dealing with in a new country.
 

vpmiami

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Jan 19, 2003
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Helo,
yes, a listing of reputable customs brokers will be very helpful.. I am in the processing of sending some things for my husbands new business. I want to make sure we are doing everything correct and get a good croker to clear Customs.. especially, since I am not from that Country.
 

onionhed

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Dec 11, 2002
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Has anyone tried to import a large streetbike. I'll be moving to DR soon and am wondering about shipping my bike. I'm wondering about declaring worth. What I've got into it and what it is worth are two different #s. What about possibly shipping it down in pieces. Any ideas?
Thanks in advance. :beard:
 

Chris

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Pib,

There has been more requests for a list of customs brokers. Would the following suggestion be a solution to the problem? List in alphabetical order everyone that you personally can recommend. Include in this list yourself?
 

Pib

Goddess
Jan 1, 2002
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Q: Maybe you could suggest to us the qualities of a 'reputable' custom's broker.
A: If I could describe it in one word that word would be "word of mouth". Oh darn, that's 3 words.

Things to consider:

*Find out how many years they have been in business. An experienced broker is more likely to know all the nook and crannies of the system. 3 years of experience is a good start.

*Ask for a list of their customers. One or two high-profile customers would be a good sign.

*Use an accredited Customs broker. An accredited broker has a license issued by the Customs Department.

*Talk to their customers and find out their opinion.

Large businesses even check the finances of their brokers, this is a little too much, but if your business is VERY big, and you potentially are a very profitable customer, chances are they will comply.

vpmiami I already explained in another post that was deleted that due to a potential conflict of interest and ethical issues I CANNOT provide names of brokers in this forum

onionhed shipping your bike dissasembled will lower the cost of transport but it will not affect how much you'll pay in duties and taxes. Bikes (if I remember correctly) pay 10% duties, other taxes and fees apply. If it is only one bike and it is small enough to bring it as luggage I suggest you bring it with you.
 
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onionhed

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Yes...a 2000 Indian Chief, about 1600 cc's and weighs about 650# ~ definately not "carry on luggage".
 

Pib

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Well, then the advice still stands (except for the 10% duties and bringing it in your luggage). As Criss said, you declare one thing and chances are Customs will "readjust" that value.
 

Jim Hinsch

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Hmm. I imported a water ski slalom course a couple years ago. Some guy "helped" me. He was hanging out at the warehouse. We walked a ways over to a dingy office where he threw out all my paperwork, and I paid a small fee (I think RD$200) and he typed up all new papers that did not include the real cost, the cost to ship, insurance, or anything. It did not even properly list the contents.

Customs opened up the boxes, charged me for raw parts (rope, PVC tubes, inflatable balls, etc.

Including the US$100 my "broker" got, I came out slightly ahead of what I had estimated. It took all day. From window to window. I was charged all the things PIB mentioned but my shipment ended up being "valued" a lot less than I paid. This surprised me since I believe customs had a copy of all my original paperwork. The helper was somewho in cahoots with the cashier. The customs guys valued it from a big big book that looked like an ancient all-the-words-in-the-language dictionary and it had to be reviewed by 4 guys independently sitting around a small table. Each had to sign off. I am not a legal resident, but I did import. There is a long post way back in the archives somewhere about the entire experence. The shipping company UPS did all the outbound paperwork. I did nothing in preparation.
 

Pib

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Q: If the declared value by customs is $25,000 what would I have to pay?
A: Would that be US$? I would still need the cost of freight calculate it. I could still try it as an exercise of mental masturbation, but I am not sure whether this type of bikes pays a luxury tax (I am pretty sure it will). I will find out today and be back on this question later today.

Jim, importing into the DR is one of those cases when it is better to have a good lawyer than an airtight alibi. Your case wasn't ordinary, and we all know why.
 
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JOHNNY HONDA

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Sep 25, 2002
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Onionhead
Expect to pay a minimum of 100,000 pesos,in 2000 the price of getting a 1999 1200 sportster out of customs at Puerto Plata airport was 80000 pesos.You should consider shipping it air freight as I have found less hassle than going ship container,customs at airport are easier to deal with,probably because they have less traffic.
Good luck
Johnny:cool:
 
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