Importing vehicle

[franco1111]

There is a sales tax on used vehicles. The amount depends on in which state you buy it. If you buy it from a private party, it's pretty common practice for the seller to put a lower price on the title transfer papers so you can save a little bit there. 6% for sales tax is a good average. 7.5% I think is the highest(California).

If you buy in Florida off a lot and put it directly on a truck bound for somewhere outside the state - you don't pay the Florida sales tax. Same in California. You have to show the sales lot the "bill of lading" for the transport out. *I've done it. Two years ago in Florida. *But, you have to pay the sales tax at the destination. *DR, for example.

I would guess if you put it on the truck at Florida or California sales lot bound for port and foreign country, it would work the same. *But you would want to check to know for sure.

 

[william webster]

You may have a point. *But recourse after you've handed over your money and driven it off the forecourt? *Nah, not in this country. *Here it's strictly caveat emptor.

Sorry beez, I forgot to say that I have done both... imported and bought bhere.

I bought a used Suzuli XL-7 , still had 6 months on warranty, 9,000 miles.... $19,000 .
Has been a good car.

Both cars run well.
The RD purchase was fast and easy.
The import came with my residency... not fast, not easy but affordable with the tax break.

 

[playacaribe2]

What is your figure based upon? *Is it just a guess?

Let's assume that car I posted from the eBay link:
Purchase price: $26,950.
Cost of shipping to DR: $1,000.

Now according to DR government website*http://www.dgii.gov.do/ciudadania/v...Paginas/ConsultaValoresVehiculosLivianos.aspx
It carries an official value of RD$1,066,756
What I would like to know what is the official duty and other taxes that are levied on this precise value? *Is it the standard ITBIS rate of 18% plus the gravimen import duty?

Once imported what are the costs to get the matricula and placa?

With Aduana it is always a guess.....but a good one.

First, the specific vehicle you posted carries an Aduana value of 1,353, 054.51....not $1,066,756.00

Second, the costs for shipping from NJ where the vehicle is located, plus in port charges, is approximately $1,000.00.

Third, ITBIS of 18% is calculated on their value as outlined above.

Fourth, first placa will add another 17%.

Fifth, there will be incidental small port "charges" which can vary depending on your port of arrival.

Sixth, you do not pay, nor are you required to pay, any US sales taxes.....as long as you do not register the vehicle in the states.

Seventh, if you forego insurance, you are self insuring for any damage from the time of the sale....until you retrieve the vehicle from the port.

Unless you can qualify under a tax reduction scheme....returning Dominican, new resident bringing in household good within 6 months, etc., my best "guess" having done this for myself numerous times and having clients in the automotive importation business, is that you will pay $11,500-$12,000 to import that particular vehicle.


Respectfully,
Playacaribe2

 

[windeguy]

PC understands this procedure. If you have a 30K budget and buy a car in the US valued by the DR at 25K, you will be 5 to 7 K over your budget and also enjoy the potentially tremendous hassle of dealing with customs.

 

[SKY]

Unless you know someone with a hook in customs don't do it. You will live longer buying it here.

 

[cobraboy]

With Aduana it is always a guess.....but a good one.

First, the specific vehicle you posted carries an Aduana value of 1,353, 054.51....not $1,066,756.00

Second, the costs for shipping from NJ where the vehicle is located, plus in port charges, is approximately $1,000.00.

Third, ITBIS of 18% is calculated on their value as outlined above.

Fourth, first placa will add another 17%.

Fifth, there will be incidental small port "charges" which can vary depending on your port of arrival.

Sixth, you do not pay, nor are you required to pay, any US sales taxes.....as long as you do not register the vehicle in the states.

Seventh, if you forego insurance, you are self insuring for any damage from the time of the sale....until you retrieve the vehicle from the port.

Unless you can qualify under a tax reduction scheme....returning Dominican, new resident bringing in household good within 6 months, etc., my best "guess" having done this for myself numerous times and having clients in the automotive importation business, is that you will pay $11,500-$12,000 to import that particular vehicle.


Respectfully,
Playacaribe2

What about duty?

Is the Highlander made in the US?

 

[playacaribe2]

What about duty?

Is the Highlander made in the US?

First number of the VIN is the key. In this case it is a 5....Made in USA....Indiana I believe. No duty under DR/CAFTA....but the damage has been done with the addition of the 17% for first placa.


Respectfully,
Playacaribe2

 

[equinn2823]

That's the same site I was on a couple years ago. It's been redone since then. Before there was also info on the import duties that had to be paid. On average, it was around 30% of the value you see in that table. Luxury cars were more, economy cars were less - especially if it had a small 4 cylinder engine. Registration and placa was around $200 back then.

You say you have no recourse if you drive it off the lot here. What recourse are you going to have with a car that is shipped here?

I paid 108,000 pesos for the primer placa for my tahoe when i imported it

 

[cavok]

It was a while ago, so maybe I'm mistaken on the price for the placa(?). The one thing I do remember is, at the time when I had all the figures right in front of me and I compared the cost of importing a car against the cost of the same make and model here in similar condition as shown in Supercarros or at the imported car dealers in the Moca, the difference was so little it wasn't worth the headache - at least not to me.

 

[windeguy]

When DR-CAFTA came in to effect, DR Customs violated (at least the spirit of) it by adding a 17% first "placa" fee based upon their own book value of the vehicle.

 

[playacaribe2]

It was a while ago, so maybe I'm mistaken on the price for the placa(?). The one thing I do remember is, at the time when I had all the figures right in front of me and I compared the cost of importing a car against the cost of the same make and model here in similar condition as shown in Supercarros or at the imported car dealers in the Moca, the difference was so little it wasn't worth the headache - at least not to me.

The car dealers are subject to almost identical import procedures as a non-dealer. Their profit margins are nowhere near what people think.

Where dealers do have an advantage is that they pay ITBIS/first placa on the price they pay for the vehicle at arecognized auction.....not the inflated valuation provided by ADUANA.

The export dealers tend to buy, but not always, high mileage/semi-distressed cars that bring a lower price at auction.....leading to lower prices paid for ITBIS/first placa......and then rolling back the odometers and giving them a cheap so called "southern fix" to cover/mask certain flaws. However, not all dealers engage in these practices.

Additionally, the smart dealers, and yes Moca has many, tend to also take advantage of pricing anomalies. For example, the period we are now in, mid November to mid December tends to bring lower prices for certain vehicles...think sedans like Camry, Accord, etc.

By way of example, a 2014 Toyota Camry off lease can be purchased by dealers at auction with 15-29k miles in prices ranging from 11.500-13,000 depending on model and options. Those prices will likely rise in the spring.....and dealers know it, so they buy now.

And of course the lower price they pay.....the less taxes they pay.

Buying a car is usually never easy for most people under the best of circumstances, it is further complicated by the culture, process and expense in the DR.


Respectfully,
Playacaribe2

 

[AlterEgo]

It was a while ago, so maybe I'm mistaken on the price for the placa(?). The one thing I do remember is, at the time when I had all the figures right in front of me and I compared the cost of importing a car against the cost of the same make and model here in similar condition as shown in Supercarros or at the imported car dealers in the Moca, the difference was so little it wasn't worth the headache - at least not to me.

In most cases, I absolutely agree with you. *In our case, we had bought the car new, chose it knowing it was for DR eventually , used it for 3 years in US, then took advantage of the one-time "returning Dominican" discounts. *The discounts applied to both duty and first plates, and saved about half. *

As previously mentioned, similar discounts are offered to new DR legal residents, in the 6 months following receiving their legalization. *

Otherwise, there is no savings. *Some may still do it if they have their own, known car, always a plus. *

 

[cobraboy]

The car dealers are subject to almost identical import procedures as a non-dealer. Their profit margins are nowhere near what people think.

Where dealers do have an advantage is that they pay ITBIS/first placa on the price they pay for the vehicle at arecognized auction.....not the inflated valuation provided by ADUANA.

The export dealers tend to buy, but not always, high mileage/semi-distressed cars that bring a lower price at auction.....leading to lower prices paid for ITBIS/first placa......and then rolling back the odometers and giving them a cheap so called "southern fix" to cover/mask certain flaws. However, not all dealers engage in these practices.

Additionally, the smart dealers, and yes Moca has many, tend to also take advantage of pricing anomalies. For example, the period we are now in, mid November to mid December tends to bring lower prices for certain vehicles...think sedans like Camry, Accord, etc.

By way of example, a 2014 Toyota Camry off lease can be purchased by dealers at auction with 15-29k miles in prices ranging from 11.500-13,000 depending on model and options. Those prices will likely rise in the spring.....and dealers know it, so they buy now.

And of course the lower price they pay.....the less taxes they pay.

Buying a car is usually never easy for most people under the best of circumstances, it is further complicated by the culture, process and expense in the DR.


Respectfully,
Playacaribe2

Don't dealers also get a break on duty and other taxes through association memberships?

 

[playacaribe2]

Don't dealers also get a break on duty and other taxes through association memberships?

Yes. On non DR/CAFTA vehicles they receive a price break regarding duty. Not sure if the association gets it and passes it on or if it is automatic to any dealer.

Things are often so fluid.....moment to moment here.

And then there is the usual corruption involving payments in the ports.




Respectfully,
Playacaribe2

 

[cobraboy]

Yes. On non DR/CAFTA vehicles they receive a price break regarding duty. Not sure if the association gets it and passes it on or if it is automatic to any dealer.

Things are often so fluid.....moment to moment here.

And then there is the usual corruption involving payments in the ports.




Respectfully,
Playacaribe2

I've been told you have to be a member of one of the (I think four) auto import associations to get the break. Membership starts at US$1000 initiation, and there are other criteria for approval. This also applies to motorcycle dealers.

 

[cavok]

In most cases, I absolutely agree with you. *In our case, we had bought the car new, chose it knowing it was for DR eventually , used it for 3 years in US, then took advantage of the one-time "returning Dominican" discounts. *The discounts applied to both duty and first plates, and saved about half. *

As previously mentioned, similar discounts are offered to new DR legal residents, in the 6 months following receiving their legalization. *

Otherwise, there is no savings. *Some may still do it if they have their own, known car, always a plus. *

I agree completely. If it's your own car, it's really a "no brainer". You've eliminated the step of searching for and buying a car, you know what you have, you're right there to make all the shippig arrangements, and you get the advantage of the tax breaks when you bring it down with you. You'll definitely come out ahead in that case.

 

[the gorgon]

the example beeza posted of that car with 29000 miles is not the same stuff that gets sold here. there are off leases and there are off leases. the cream puffs with very low mileage get sold on the dealer lots as almost new. the leases that were used as company fleet vehicles , and which have high miles, are the ones which get sent to auctions. those are the ones which end up here, and get their odometers doctored.

 

[playacaribe2]

I've been told you have to be a member of one of the (I think four) auto import associations to get the break. Membership starts at US$1000 initiation, and there are other criteria for approval. This also applies to motorcycle dealers.

I will check to see if I can find out which association may benefit you as a motorcycle dealer.


Respectfully,
Playacaribe2

 

[beeza]

I'm a permanent resident and have been for ten years. *Could I get any tax breaks if I went ahead and naturalized as a citizen? Something I've been meaning to do, but there's no real urgency. *I would do it by virtue of marriage to a Dominican.

 

[AlterEgo]

I'm a permanent resident and have been for ten years. *Could I get any tax breaks if I went ahead and naturalized as a citizen? Something I've been meaning to do, but there's no real urgency. *I would do it by virtue of marriage to a Dominican.

No, the discount is only the 6 months after you get residency. *The one time discount for Dominicans is for those who live abroad, to get it you can't have spent over 6 months in DR over the past two years, and you have to prove that with passport. In our case, passport had been lost in Hurricane Sandy, he had to go to passport office in SD for certification of his entries and departures. *I was surprised it existed, because he only uses US passport*