2014News

Lawyer explains why Customs Agency notice violates DR-CAFTA

In response to the Customs Agency notice that puts a stop to duty-free imports shipped by couriers valued at US$200 or less, the Dominican Couriers Association (Asodec) says that a government department resolution cannot revoke an executive order because of juridical hierarchy.

Asodec’s legal advisor Laura Castellanos says that if the government removes duty-free status from express shipments, this would violate their expedited nature as defined in DR-CAFTA.

Article 5.7 of DR-CAFTA describes requirements for express shipments as follows:

Each Party shall adopt or maintain expedited customs procedures for express shipments while maintaining appropriate customs control and selection. These procedures shall: (a) provide a separate, expedited customs procedure for express shipments; (b) provide for the submission and processing of information necessary for the release of an express shipment before the express shipment arrives; (c) allow submission of a single manifest covering all goods contained in a shipment transported by an express shipment service, through, if possible, electronic means; (d) to the extent possible, provide for clearance of certain goods with a minimum of documentation; and 5-4 (e) under normal circumstances, provide for clearance of express shipments within six hours after submission of the necessary customs documents, provided the shipment has arrived.

But on Friday, 1 August 2014, the director of the Customs Agency, Fernando Fernandez said that the Decree violated Customs Law. He said it had been misinterpreted and would only provide duty free imports for imports that meet US rules of origin under the DR-CAFTA agreement.

http://www.dgii.gov.do/legislacion/reglamentos/Documents/402-05.pdf

http://www.ustr.gov/trade-agreements/free-trade-agreements/cafta-dr-dominican-republic-central-america-fta/final-text

http://z101digital.com/app/article.aspx?id=133082