Santo Domingo. – Importers say the new Customs Agency’s measure that eliminates the lines of credit for the duties they pay upon retrieving their merchandise is “somewhat drastic and surprising.”
Importers and Warehouses Association president Américo Montes de Oca said Customs should’ve been warned that the measure was to be applied, which he said will spur inconveniences in the cash flow in the dozens of large companies that accessed those credits. “It seems something drastic to me, besides surprising, the Customs director’s (Rafael Camilo) measure to cut the credits of the duties, without giving us time beforehand for the affected companies to prepare their financial statements around this new reality.”
Meanwhile National Commercial Companies Organization (ONEC) president Pedro Perez suggested that if Customs is to eliminate the credit line, it’s best done gradually, so the import companies aren’t strangled by the multiple taxes, in addition to the new measure.
Billing, jobs
Perez said some companies which owe Customs have already received personalized letters seeking payment in two quotas to update them, but suggested at least four or six monthly payments instead.
The elimination of the credits on duties places at risk thousands of jobs which depend on the import companies’ profits.
Department stores, factories and warehouses may have to trim payrolls on less liquidity, by having to get private sector financing at high interest rates to pay Customs duties up front, Montes de Oca said, resulting in higher product cost and prices.
From: Dominican Republic, Parque Colon statue of Anacaona
This may also have the consequence of increasing the size of the BRIBES brokers pay to whoever to clear their merchandise ....is this an improvement or returning to a more corrupt era BC before Cocco...........What we need is more transparency not some public officials picking up envelopes again
Written by: xwill7, 18 Jun 2009 11:13 AM
From: United States, Chicago
Can we start importing cars over 5 years old by adding a tip for the customs agent?
Written by: juanb, 18 Jun 2009 11:30 AM
From: Dominican Republic
Add a tip to ANYTHING and you can do whatever you want.
Written by: generoso, 18 Jun 2009 11:43 AM
From: United States, Santo Domingo
Customs house is not a bank to extend credit to preferred customers. Extension of duty credits to big importers are discriminatory against the small consumers that do not have that benefit. The law has to be the same for all, and not be similar to mercantilist policies used
by the kings on their subjects. The king in this case being the director of customs, that makes dispenses the rules and favors according to his own criteria and not uniformly. Either credit for all or none, fair is fair, if you bend and massage the rules, then why have them at all?
Same with the different valuations for automobile importers that discriminate against the individual consumers, making the consumers pay 40 to 50% more taxes than the automobile dealers and distributors.
This is an irritant and monopolistic policy that one day hopefully will be removed to the benefit of the ordinary tax paying public.
Written by: xwill7, 18 Jun 2009 11:50 AM
From: United States, Chicago
Just got a 2002 Montero Sport for $1,000 USD I want to ship it and sell it for some extra Whiskey money. Should sell for around 350,000RD
Written by: generoso, 18 Jun 2009 11:55 AM
From: United States, Santo Domingo
xwill7
What about the 5 year rule? You are asking for trouble exporting junkers into the DR for "whiskey money", trade the 2002 to a 2004 and you will come out better, without all the hassle.
From: Dominican Republic, Parque Colon statue of Anacaona
the laws have to be evenly applied ....if these were in essence interest free loans to large importers then their cash flow may suffer .However if this is similar to a bond system in that the merchandise is held in bond and not used or sold by the importer until he pays the duty then we shall see
Written by: xwill7, 18 Jun 2009 12:05 PM
From: United States, Chicago
a 2002 is not a junker in DR. lol its mint condition and still has low miles. I am thinking of sending it since I bought it so cheap, some people have done it but they have the broker in NYC do all of the paperwork.
Written by: generoso, 18 Jun 2009 12:31 PM
From: United States, Santo Domingo
This system is unfair because it selects and discriminate in favor of the big importers (Plaza Lama,
new automobile dealers, Multicentro Churchill and so forth) in preference to the little corner drugstore that has no credit or influence in the customs department.
This is an interest free loan, because the merchandise is RELEASED to the importer, not placed in a bonded warehouse.
There is no accountability if the importers actually sold the goods, and are taking their time to pay the customs office, meanwhile making more juicy bank interest on their moneys.
Probably this will cause a slight increase in the retail prices of imported consumer goods, so they will claim, or less of a profit for them, probably passing the increased costs to the consumer.
Either way they are technically making their own rules, and that is not fair to others.
Written by: xwill7, 18 Jun 2009 12:44 PM
From: United States, Chicago
I thought that DR was working to become more competative? Cocco come back!
Written by: Gringo_1, 18 Jun 2009 4:02 PM
From: Dominican Republic, Maimon (Bonao)
Generoso
Your explanation is correct. Another point is that it also for the ITBIS. If you are an exporter you get the ITBIS back. They used to cancel the notes and all was square. Now we pay the ITBIS up front and wait for a check from the government. We have done it both ways. To date, we have not received a check from the government. The fall back is you can deduct from your taxes as a credit, but you have to wait a year.
From: United States
Credit for the creditworthy would seem a sensible rule. Well, maybe an enterprising bank can fill the gap created?
From: Dominican Republic, Puerto Plata
Manhat,
An enterprising bank currently charges 30% p.a. on credit lines, so more added to the cost..and the price.
Written by: BASTA, 18 Jun 2009 8:33 PM
From: Dominican Republic, = Ghetto-SPM-Barrio Blanco
Well I brought my BMW 2002 1975 cabrio in which cost me $5,000.00 so anything can be done.
From: United States
Manhattanite, i am in full agreement that credit for the creditworthy is a sensible step. but what i think Prof is saying is that only certain big players are offered lines of credit, and creditworthy small fry are not. in essence, it is like giving a loan to the big boys, where the small guy ought not apply. the members of this site who keep glorifying the spectacular building developments, and point to them as being great for the country, fail to disclose that they all have their genesis in sweetheart deals among political friends and allies, and that the small guy will never see a dollar of that money. i have friends who know some of the details behind some of these arrangements, and they would make the honorable man cringe
Written by: anthonyC, 18 Jun 2009 11:12 PM
From: United States
Reading all the comments reminds me of what a very wise man once told me.
"Don't F*ck with Eagles unless you know how to fly."
From: United States
your "very wise man" seemed to have a very limited vocabulary. that sounds like something Fifty Cent would say.
Written by: xwill7, 19 Jun 2009 9:32 AM
From: United States, Chicago
Basta,
True, anything can be done. I just want to ship it and sell it but have never sent a car over 5 years old. Did you agent in the states have a "friend" in customs???
Written by: generoso, 19 Jun 2009 3:13 PM
From: United States, Santo Domingo
dreadlocks
The truth of the matter is that the big shots that enjoy interest free credit, are (by coincidence) the biggest private campaign contributors to the political parties. Need I say more?
xwill
If you are looking for trouble, you will have a nightmare in customs, unless you spend a lot of time, sweat and tears, trying to get an "age" exemption. It is not impossible and some folks do get it, but they know how to "swim" in the turbulent corruption waters, and they have the contacts. Ask yourself the same question and then another one: Is it worth it? and then by the time you tally the trips, letters, hassles, inspections, paperwork, begging, and so forth, profit may not be that much.
Written by: xwill7, 19 Jun 2009 4:01 PM
From: United States, Chicago
Generoso,
True. I would not try it on my own. I am going to see if I am able to use the same agency in NY that sent it for a guy that I know. I have no use for that jeep here in the US, but in DR it will sell.
Smaller
Bigger
Close Gallery
Facebook
Digg this
del.icio.us
Technorati
Yahoo
by the kings on their subjects. The king in this case being the director of customs, that makes dispenses the rules and favors according to his own criteria and not uniformly. Either credit for all or none, fair is fair, if you bend and massage the rules, then why have them at all?
Same with the different valuations for automobile importers that discriminate against the individual consumers, making the consumers pay 40 to 50% more taxes than the automobile dealers and distributors.
This is an irritant and monopolistic policy that one day hopefully will be removed to the benefit of the ordinary tax paying public.
What about the 5 year rule? You are asking for trouble exporting junkers into the DR for "whiskey money", trade the 2002 to a 2004 and you will come out better, without all the hassle.
new automobile dealers, Multicentro Churchill and so forth) in preference to the little corner drugstore that has no credit or influence in the customs department.
This is an interest free loan, because the merchandise is RELEASED to the importer, not placed in a bonded warehouse.
There is no accountability if the importers actually sold the goods, and are taking their time to pay the customs office, meanwhile making more juicy bank interest on their moneys.
Probably this will cause a slight increase in the retail prices of imported consumer goods, so they will claim, or less of a profit for them, probably passing the increased costs to the consumer.
Either way they are technically making their own rules, and that is not fair to others.
Your explanation is correct. Another point is that it also for the ITBIS. If you are an exporter you get the ITBIS back. They used to cancel the notes and all was square. Now we pay the ITBIS up front and wait for a check from the government. We have done it both ways. To date, we have not received a check from the government. The fall back is you can deduct from your taxes as a credit, but you have to wait a year.
An enterprising bank currently charges 30% p.a. on credit lines, so more added to the cost..and the price.
"Don't F*ck with Eagles unless you know how to fly."
True, anything can be done. I just want to ship it and sell it but have never sent a car over 5 years old. Did you agent in the states have a "friend" in customs???
The truth of the matter is that the big shots that enjoy interest free credit, are (by coincidence) the biggest private campaign contributors to the political parties. Need I say more?
xwill
If you are looking for trouble, you will have a nightmare in customs, unless you spend a lot of time, sweat and tears, trying to get an "age" exemption. It is not impossible and some folks do get it, but they know how to "swim" in the turbulent corruption waters, and they have the contacts. Ask yourself the same question and then another one: Is it worth it? and then by the time you tally the trips, letters, hassles, inspections, paperwork, begging, and so forth, profit may not be that much.
True. I would not try it on my own. I am going to see if I am able to use the same agency in NY that sent it for a guy that I know. I have no use for that jeep here in the US, but in DR it will sell.