Zona Franca and 20% of good for Internal Use

Chris · #1 03-17-2003, 06:32 PM

We are establishing a business in the Pisano Zona Franca and I have a question about the 20% of production/products that may be distributed to the Dominican Republic without attracting taxes and duties.

I'm confused on how this actually works in a real practical sense. I know that there are some issues with local content, but the advice that I've received, seems to be conflicting. What I'm looking for, is for someone who brings in products/or manufactures and utilizes this 20% thing.

We will be distributing from the Zona Franca, some of our products in the DR and most of our products to other Caribbean Islands. So, imagine the products are in the Zona Franca - now I want to take some products to fulfil orders from the DR. What is my paperwork required and how do I get it past the customs folks that are sitting at the gate. And who do I report to eventually when I have to pay taxes and duties on this part.

Thanks in advance for any help.

GringoCArlos · #2 03-20-2003, 06:19 PM

The real practical sense is that you have misunderstood. You will be paying the duty at the gate, in the Customs office , before the goods are allowed to go out of the gate. Write a check, and never pay cash. Duty applies to all goods sold within the DR from a Free Zone company.

Best source of information is the Consejo Nacional de Zonas Francas de Exportacion in Santo Domingo at telephone (809) 686-8077. Good luck.

Chris · #3 03-20-2003, 08:20 PM

Thanks GrincoCarlos - I'll have a look at your information and see if I can make sense of it. This whole issue just confuses me to no end...

Chris · #4 03-20-2003, 08:34 PM

GringoCarlos, a quick question, why write a check? and no cash. With my experience in the DR so far, cash is king? when it comes to customs?

GringoCArlos · #5 03-21-2003, 03:47 PM

If I get a bill from Aduanas for RD$20, I WRITE A CHECK. That way I always have proof that the bill was paid, and no one from Aduanas can say otherwise. (Plus, it normally takes them 3 weeks to cash the check).

Chris · #6 03-21-2003, 04:58 PM

Thanks - I've only had experience bringing personal and business stuff in through Aduanas and a little cash, only when it was asked for, worked well here.

The week after next, I'll have my first experience with taking stuff out of the Free Zone for export and also to fulfil a few DR orders. I'm not too worried about the export stuff as the process is clear. I've been worried about the stuff that is going to customers within the DR. I have a few friends in the Free Zone and I think I'll knock on their doors for help with the paperwork here - and also take one of my friends with, the first time I have to do this process. I have the necessary permissions.

I take your advice on paying Aduanas with checks only - thanks again. Any other info will be helpful.