American Cars imported to DR

chinaXport · #1 11-18-2006, 06:59 PM

Please let me know if Ameican made autos are exempt from Duty under cafta.

drtampa · #2 11-18-2006, 08:02 PM

No!!!!!!!!

windeguy · #3 11-18-2006, 08:17 PM

I tried to read the DR-CAFTA agreement, or at least get to the part about automobiles, but it is so full of legal BS that it is practically unintelligible by someone with only an MS degree. It did seem that there is a phase out of duties over a period of years on cars imported from the US. Certain vehicles with less US content may not be included, but as I said it is not easy to figure out these things. Perhaps the board's legal advisor can interpret what will happen.

Fabio J. Guzman · #4 11-26-2006, 09:37 AM

Not for a long time. I'll try to get details for next week.

Fabio J. Guzman · #5 12-02-2006, 12:16 PM

Duty on American cars will be phased out in 5 years from the time DR-CAFTA first went into effect with any one of the contracting parties (El Salvador, early 2006). Therefore, by early 2011 there will be no duty on the importation of American cars, assuming as we all do, that the DR will at some point implement the treaty.

Presently, duty is at 20%. It will go down to 15% the second year, 10% the third year, 5% the fourth year, and 0% the fifth.

However, there are other taxes that must be taken into account when importing a vehicle, to wit:

(a) ITBIS (service tax) = 16% of the value of the vehicle, incl. shipping and insurance costs.
(b) Registration tax = 17% of the value of the vehicle, incl. shipping and insurance costs
(c) Expenses at customs = 0.4% the value of the vehicle, incl. shipping and insurance costs.

suarezn · #6 12-02-2006, 12:38 PM

Besides the big question is what constitutes an "American" car...

For instance a Honda made in Marysville, OH...Is that American? How about a PT Cruiser made in Toluca, Mexico? A BMW assembled in South Carolina? This is going to be very fuzzy for a long time and basically left to the interpretation of the custom officer.

If you bring it assume you're going to have to pay...

hombrenegro · #7 12-02-2006, 12:45 PM

Just curious, who establishes the value of the car?

Fabio J. Guzman · #8 12-02-2006, 01:09 PM

Customs determines the value.

Luperon · #9 12-02-2006, 03:17 PM

Somone told me that the Registration tax was increased to offset the tax losses from DR-CAFTA. If this is the case it would appear to violate the intent of the agreement. How can the international community allow this to happen???

laurapasinifan · #10 12-02-2006, 10:49 PM

i was talking to my buddy who lives in the DR and he and his brother are bringing in motorcycles that cost about 20K each... and the tax is over 10K for each bike....that maybe the combined tax....still a lot of money.

He also told me something about importing an american made car... that the car should or will be tax free...IF it 100% made in america....any part not made in america will be subject to some form of tax.....so if the engine is made in japan...but the rest is made in america.....then you will pay a tax on the engines value .

bob