SANTO DOMINGO. - Customs director Rafael Camilo said Wednesday that some of the points in the U.S., Central America, Dominican Republic Free Trade Agreement (Dr-Cafta) were not well defined and is in favor of revising the pact.
He said some products of the treaty’s signatory nations compete unfairly with the local ones and in that regard noted that when a product made in one of those countries and doesn’t pay any tax in its nation, it should have to pay the levy in the place of import.
The official said Dominican Republic is having problems with products imported from El Salvador, Guatemala and Costa Rica, because of their strong and unfair competition against those produced locally. “That is not clear in the pact and we are having problems with merchandise from Guatemala, Costa Rica or El Salvador, because they are competing strongly against the national industry.”
From: Dominican Republic, Puerto Plata
Normally, a product destined to the export market is not subject to tax in its country of origin, and taxes on all intrants (eg ITBIS) should be credited to the manufacturer.
Dominican Gov't does not refund the ITBIS, it only issues "credits" applicable against further intrants. Now, if your main business is exports, you can use the credit notes as wallpaper.
What is it Costa Rica and Ecuador are importing that hurt so much?
Written by: Patricia, 19 Nov 2009 9:11 AM
From: Dominican Republic
...one more example;
The US prohibits the import of various types of Dominican Avocado during the period
of their own US Harvest. Only after the local (US) Harvest is over, dominican Products are allowed in.
Great "Free Trade" Agreement ! , isn't it ?
Written by: juanb, 19 Nov 2009 10:19 AM
From: Dominican Republic
Here's what he really said:
We need some help. We are not able to compete with competent producers.
Written by: Atabey, 19 Nov 2009 10:19 AM
From: United States
Patricia,
Is there a sunset provision for avacados in CAFTA-DR Agreement?
Written by: Atabey, 19 Nov 2009 10:25 AM
From: United States
After CAFTA-DR. . . U.S. fruits and nuts gain preferential access to the markets of all 6 countries. Over 70 percent of U.S. fruit and nut products are eligible for immediate duty-free access, while another 26 percent of all fruit and nut products will have their import tariffs phased out over the next 5 to 10 years. Tariffs on all fruits and nut products will be phased-out within 15 years.
U.S. suppliers will gain immediate duty-free access for apples, peaches, pears, grapes, cherries, almonds, walnuts, pistachios, raisins, canned peaches, canned pears and frozen concentrated grapefruit juice in all six countries, and on frozen concentrate orange juice in all Central American countries. These results will allow U.S. suppliers to compete in these growing markets on equal terms with suppliers from other countries.
Written by: Atabey, 19 Nov 2009 10:25 AM
From: United States
Before CAFTA-DR. . . In the six CAFTA-DR countries, U.S. fruits and nut products faced average import tariffs of 15 percent, but these tariffs can rise to 25 percent on U.S. exports such as apples, grapes, raisins, peaches, pears, cherries, almonds, walnuts and pistachios, and are higher on other products. The WTO permits tariffs as high as 138 percent on certain of these fruits and 60 percent on certain tree nuts in some countries. Without preferential access, U.S. fruits and nuts are at a disadvantage to products from Argentina, Chile, and Mexico. From 2002 through 2004, U.S. suppliers annually shipped on average 43,540 metric tons (mt) of fruit and nuts valued at $55.5 million to all 6 countries combined, and the U.S. share of their import market was approximately 40 percent in 2002.
Written by: Atabey, 19 Nov 2009 10:33 AM
From: United States
Before CAFTA-DR. . . U.S. vegetables faced average import tariffs of 15%, but in some cases as high as 47%, in the six countries. The WTO permits tariffs as high as 60%. Without preferential access, U.S. veggies are at a disadvantage to products from Arg, Chile, and Mex. From 2002- 2004, U.S. annually shipped on avg 39,741 metric tons of veggies valued at $40.9mi to all 6 countries combined. Of this, fresh vegetables, excluding potatoes, 2,450 mt valued at $1.02 mil.
In the case of frozen fries, U.S. exporters annually shipped on average $4.4 million worth of frozen fries to all 6 countries combined from 2002-2004, and the U.S. share of their import market was 31%. Not only do frozen fries face strong competition from Canada, they are also subject to import duties ranging from 15 to 41 percent.
In the case of fresh and canned tomatoes and tomato pastes, U.S. exp annually supplied on average $2.5 mi to all 6 countries from 2002- 2004, with import tariffs reaching as high as 25%.
Written by: Atabey, 19 Nov 2009 10:35 AM
From: United States
After CAFTA-DR. . . U.S. vegetables gain preferential access as all tariffs on vegetables either eliminated or are scheduled for reduction and eventual elimination over different transition periods.
In the case of frozen fries, import tariffs are immediately eliminated in El Sal, Guate, Honduras, and Nicaragua. In the D R, the tariff will be reduced over 5 years. Costa R will remove the current disadvantage faced by U.S. exports due to the Costa R-Canada FTA. These tariff elimination schedules will allow U.S. exporters the opportunity to compete in these growing markets on equal terms with other suppliers of frozen fries.
U.S. suppliers of fresh and canned tomatoes, and tomato pastes benefit from the immediate elimination of tariffs by all Central American countries on tomato paste, which is the largest export to CAFTA-DR countries within this product grouping. All tariffs on these products will be eliminated within 15 years, and earlier in many cases.
From: United States
Hey when everyone is trying to steal and rip off everyone else and you let competitive legitimate other companies join in of course there prices will be lower. They are used to equal fair competition where the Dominican companies are not since they are paying bribes and trying to con everyone any way they possibly can. When everyone plays on a level playing field we see which people fail. Now they cry bad and want to complain. How about letting the consumers get their goods for the cheaper price and let these local businesses find their being more competitive or let them have to go into a different business. No reason to let the masses suffer because some of our local businesses cannot compete with ones abroad and even including their transportation fees cannot match the price locally. Shame on us.
Written by: josean, 19 Nov 2009 1:34 PM
From: United States
Here is another fine mess The Improviser in Chief has gotten us into!
If Hipólito “El Burro” had screwed up it would be understandable but not the “super intelligent sweet talking Genius” LIE-onel Fernandez!
¿Y No Era Y Que Pa’Lante Que Íbamos?
From: United States
The dominican republic should sign the free trade agreement with south america and join south america union they have a lot of money and black water.
From: United States
the competition is unfair only insofar as the other aforementioned territories are able to function more eficiently, and produce at lower prices. when your business models are still in the stone age, you will find that other producers usually have a built in advantage over you.
Dominican Gov't does not refund the ITBIS, it only issues "credits" applicable against further intrants. Now, if your main business is exports, you can use the credit notes as wallpaper.
What is it Costa Rica and Ecuador are importing that hurt so much?
The US prohibits the import of various types of Dominican Avocado during the period
of their own US Harvest. Only after the local (US) Harvest is over, dominican Products are allowed in.
Great "Free Trade" Agreement ! , isn't it ?
We need some help. We are not able to compete with competent producers.
Is there a sunset provision for avacados in CAFTA-DR Agreement?
U.S. suppliers will gain immediate duty-free access for apples, peaches, pears, grapes, cherries, almonds, walnuts, pistachios, raisins, canned peaches, canned pears and frozen concentrated grapefruit juice in all six countries, and on frozen concentrate orange juice in all Central American countries. These results will allow U.S. suppliers to compete in these growing markets on equal terms with suppliers from other countries.
In the case of frozen fries, U.S. exporters annually shipped on average $4.4 million worth of frozen fries to all 6 countries combined from 2002-2004, and the U.S. share of their import market was 31%. Not only do frozen fries face strong competition from Canada, they are also subject to import duties ranging from 15 to 41 percent.
In the case of fresh and canned tomatoes and tomato pastes, U.S. exp annually supplied on average $2.5 mi to all 6 countries from 2002- 2004, with import tariffs reaching as high as 25%.
In the case of frozen fries, import tariffs are immediately eliminated in El Sal, Guate, Honduras, and Nicaragua. In the D R, the tariff will be reduced over 5 years. Costa R will remove the current disadvantage faced by U.S. exports due to the Costa R-Canada FTA. These tariff elimination schedules will allow U.S. exporters the opportunity to compete in these growing markets on equal terms with other suppliers of frozen fries.
U.S. suppliers of fresh and canned tomatoes, and tomato pastes benefit from the immediate elimination of tariffs by all Central American countries on tomato paste, which is the largest export to CAFTA-DR countries within this product grouping. All tariffs on these products will be eliminated within 15 years, and earlier in many cases.
If Hipólito “El Burro” had screwed up it would be understandable but not the “super intelligent sweet talking Genius” LIE-onel Fernandez!
¿Y No Era Y Que Pa’Lante Que Íbamos?