Santo Domingo.- The country will enter its 5th year in the U.S.-Central America Free Trade Agreement (Dr-Cafta) in 2010, when American vehicles will cost less with the start of the zero tariff, currently at 5%.
The head of the dealers grouped in Acofave, Enrique Fernandez, said between 10% and 15% of the country’s imports are U.S. vehicles and between 70% and 80% from Asia, but the Dr-Cafta may vary the proportion.
He said the countries which have signed free trade agreements have adapted their tariffs so the tax rate is reasonable and competitive, noting that the average vehicle tariff in Central America and South America is 10% and 6% in Chile.
Dr-Cafta guarantees zero tariffs by the 5th year after the pact’s signature on August, 2004, with a one year grace period, but took effect in El Salvador in March, 2006, because just one country’s entry is enough to start the countdown.
In the first year motors vehicles of up to 1,500 cc engines entered with zero tariff, although the United States has yet to manufacture them.
Written by: generoso, 21 Aug 2009 10:35 AM
From: United States, DR
The DR has gone around the DR Cafta agreements by swindling the consumers as well as outsmarting the US DR Cafta negotiators, abiding by the agreed customs duty but creating and artificial duty in the first tag or "placa" that along with the ITBS increases the taxes back up again to 48% or so. So the claimed reduction in taxes is a fraud to the consumer. Is a typical "Balaguer" type of scam that was devised to go around the assumed benefits for the consumers.
All other first world countries are lowering their taxes or providing incentives, to stimulate new car sales, and the DR instead, keeps their predatory fiscal policies that limit car buyers just to the rich and upper middle classes.
Also the new car importers or ACOFAVE and the used car dealers ANADIVE have in place preferential and abusive tables of valuation (valores) that effectively give them an advantage versus the regular consumers of up to 50% of the total duties to be paid.
Continued below.....
Written by: generoso, 21 Aug 2009 10:39 AM
From: United States, DR
This discriminative policy is just another irritant to the consumer to benefit the generous contributions, that new car importers and distributors, pay before each elections to all the political parties.
Did you know that the land that the majority of new car importers built their car lots, was government land in the John F. Kennedy avenue? and they it was almost a bequest to them from the then president Balaguer to get on their good side?
Well the tradition continues, and the ghost of Balaguer and his sorry legacy lingers on.
From: Dominican Republic, Puerto Plata
Taxes never go down. They may change names, shape and way ofapplication, but they never go down.
So much for CAFTA..
Written by: tejada, 21 Aug 2009 11:02 AM
From: United States
yeah right... tax free... ha!
Written by: xwill7, 21 Aug 2009 11:12 AM
From: United States, El cuarto bate
I wish it was tax free. it would help get rid of the 1980 clunkers still on the road. They will never let it be "tax free" the gov will loose alot of money. If more people send an American car, the rent a car cash cow will suffer
From: United States, Fresh Water Paradise-NY Finger Lakes
Honorable Generoso,
As soon as I saw article I immediately went looking for your commentary....I knew it is sore subject with you, and rightly so.
Whole thing still seems like a blatant case of "double speak" on the part of the gov.
Written by: josean, 21 Aug 2009 12:51 PM
From: United States
"Well the tradition continues, and the ghost of Balaguer and his sorry legacy lingers on."
Professor, my sentiments exactly!
Written by: Camano, 21 Aug 2009 1:49 PM
From: United States
Previously Posted By Generoso (Well the tradition continues, and the ghost of Balaguer and his sorry legacy lingers on)
Generoso Don't Blame this new policies on Balaguer, not the I really care, But on what it is pure evil Capitalism.........
From: Dominican Republic, San Carlos, barrio de matatanes, aqui no invente
generoso don't forget about ASOCHOCHA ( ASOciacion de CHOferes de CHAtarras)
they were big back in the days when Balager used to be the man wearing pampers en el palacio
Written by: generoso, 21 Aug 2009 5:30 PM
From: United States, DR
glomax
Thank you for the "honorable". LOL.
One of the main problems in the DR is the incapacity of the ordinary Joe, to make things right. I mean in the US you can make a stink, or call you congressman, or write to an independent newspaper and all of the sudden the injustice will get reversed, if you cry hard enough.
In DR is just the opposite and the common citizen is helpless, to change things with the media, and he really does not have any impartial congressional reps, except the empty suits that are just toll collectors for themselves.
In the DR an automobile is a necessity not a luxury, and gas prices are twice what they are in the USA, so an average citizen needs reliable, dependable transportation, but instead is being sequestered and obligated to accept the discriminatory and exorbitant automobile import duties that only benefit a select few, and hurt the majority.
This customs monopoly dispensed as a political favor to select few, must end.
Written by: josean, 21 Aug 2009 6:24 PM
From: United States
And on his 8th year LIe-onel Fernandez aka God, created the METRO, the transportation problem was solved!
Written by: vacanos, 21 Aug 2009 6:32 PM
From: United States, An appeaser is one who feeds a crocodile, hoping it will eat him last.
"In the DR an automobile is a necessity not a luxury, and gas prices are twice what they are in the USA"
generoso with all due respect my personal opinion there is no reason to bring Balaguer in the mouth of this me-first generation. back in 1977 my father an average joe bought a brand new daihatsu you know when balaguer had the gas at 38 cent and a dollar was equal as one peso. those alltimer are the one que no comen cuento con balaguer porque por lo menos la corrupcion paraba en el palacio.
it is funny when balaguer gave the country back to the PRD DR was a prosperous country and there was little need to emigrate to the usa. by 1984 under jorge blanco the country was at the border of a civil war. por algunas razon o otra el culpable de todos nuestro males era balaguer.
for the record balaguer is the only politician to held accountable another presiding president when he jailed jorge blanco for corrupcion.
Written by: generoso, 21 Aug 2009 7:53 PM
From: United States, DR
vacanos:
I am not judging wether Balaguer, overall, did good things for the country or not, he did many great things at a time of much uncertainty and has many virtues, unlike his present day followers, that have none of his virtues and all and more of his faults.
With his sneakee petee way of centrally managing the economy, like a big colmado, he conducted himself like a king, bestowing favors on his favorite subjects (mercatilism), and some of the economic practices and rules from way back are still in effect, in regards to the automobile monopoly that discriminates the ordinary consumer and benefits only the big importers.
Written by: Camano, 21 Aug 2009 8:16 PM
From: United States
Ha Ha I'm really enjoying this posting keep it up guys !
Written by: Camano, 21 Aug 2009 8:20 PM
From: United States
this is like adding 4+4= 7 thing are not adding up here, this where the rest us going to learn what going on in our country going back to basic! LOL
From: Dominican Republic
2001 Honda CRV
Having been a part of the auto indusrty back in Canada, I know the going price for a 2001 Honda CRV is approx $6300 in good condition. Here???? lets go almost double to $11,000 and add to that 33% interest rates for a good risk buyer.
The rich remain rich...the poor remain the supporter of the rich....but in this country...nobody bats an eye.
Oddly enough, today as it rained in the east, I saw 4 gruas...all with late model suv's that found the true limit of their off road capabilities. Why do I never see a beat up Toyota resting in a ditch???
All the money in the world does not make a Dominican driver invincible.
Worse yet, in a total move of "I don't give a shit" mentality...Mr. or Mrs Hummer decided that passing uphill on a corner with oncoming traffic was the right thing to do. If I was in the car coming towards them, i would have had a need to change my underwear.
BIG TRUCKS...SMALL BRAINS....how many times do we see this?
Written by: Camano, 21 Aug 2009 8:44 PM
From: United States
PuntaCanaMike, that really is a good point, since i was a kid in the Dominican republic they have been doing this "revasando otros carros " really dangerous stuff, killed lots of people there.
From: Dominican Republic
"In the first year motors vehicles of up to 1,500 cc engines entered with zero tariff, although the United States has yet to manufacture them.
In other words...this is a non story, as US companies do not produce small engine vehicles, nor are they likely to in the future, with most of that production being built off shore anyways.
Snore
From: United States, Fresh Water Paradise-NY Finger Lakes
PuntaMike,
How many 1500 cc engine cars do you think GM could sell in US if they made one? I would say 10k-20k max, and that's an aggressive estimate.
Americans like their big car, and the most popular here is the Ford F150 pickup truck. Need I say more?
Look at situation in DR. SUV's are preferred mode of transportation. Most of them are driven by people who can't afford to cover all of their bills every month.
Reality is what it is and, in a free enterprise and capitalistic economy, you've better give the consumer what he wants or else you go out of business.
Tree huggers and far-left liberals would always prefer econo-boxes and hybrids out of conviction; however, they are not that good a customer. They keep their cars too long and, generally, do not stimulate the auto economy. You couldn't sustain a company the size of old GM on meager econo-box car volumes. Period.
Written by: generoso, 21 Aug 2009 10:35 PM
From: United States, DR
glomar
After I returned from the states to DR I imported a car, much to my regret. When it rained the streets in the capital get flooded, because of lacking or bad drainage, and you must leave your car or brave it and try to cross the puddles with the risk of your engine stopping or the car interior being ruined. I had both cases happen, and swore that I will buy an SUV next. I did, and when it rains I do not have to worry if I am going to arrive safely. Also the higher visibility does give you a maneuvering and safety advantage, against crazy taxi drivers,(they are mostly Haitians LOL), and a versatility if you like to venture out into the country and sometimes "challenging" roads.
From: Dominican Republic
Let me see: Gas guzzler, inefficient, and costing american car? Cars not designed for the Dominican road and the Dominican drivers (cheap, poor, and bad drivers). Let the American car come in with no tariffs AND THE SALES WILL NOT CHANGE!
Dominican are used to Japanese vehicle and their attitude about Japanese vehicles is deep rooted (less maintenance, fit DR's road, last longer, it takes the abuse, consume less gas, and the looks that satisfy the Dominican society appetite for making a social statement). Yeah go ahead let the American clunkers come in cheap and they will still corrode in Dominican car sales lots!
From: United States, Fresh Water Paradise-NY Finger Lakes
Honorable Generoso,
I see your points above and concur with most of them.
However, when it comes to accident avoidance and maneuverability, a smaller vehicle, with lower center of gravity, should win every time over an SUV. There are many studies here in US corroborating this statement [darn, now Josean will demand proof!].
When it comes to fording and puddle crossing and good old off-roading, nothing beats an SUV. I know. We had a couple of Land Rovers-the real ones! Furthermore, if I had to hit a pothole, my vehicle of choice would definitely be an SUV. Period.
Lastly, it is apparent that you could afford the SUV and your bills all get paid when they come in, so you are not upside-down or pretentious or living beyond your means; that was part of my comments above, relative to many Dominicans.
Written by: generoso, 22 Aug 2009 8:37 AM
From: United States, DR
glomar
I concur, and large automobiles and the preference of pick up trucks in the USA, I can guess that:
1. The automobile represents for Americans freedom of mobility, and the bigger the better, especially in some western states like Texas, Arizona, Nevada, Wyoming, and so forth.
2. It is true about mobility and parking ability, of small cars, it is also true that in Europe most automobiles are of the smaller and mini size, but in the states is the opposite so if you get into an accident with an SUV or Ford 150 and you are driving a Prius, who is going to suffer the most?
So it is a question of driver safety as well.
3. High gas prices are a recent phenomena in the US and the US drivers are used to driving long distances on cheap gas, automobile sales are a market indicator for the well being of the economy in the US.
4. I agree that the demise of the gas guzzler is in view, thankfully. But the change over process will probably take another generation, to become effective.
From: Dominican Republic
Oddly enough...the "bigger is better" attitude is why the US companies don't do well in the world market, thus one of the main reasons they are in trouble.
At least Ford the mindset to develop themselves overseas at an early age and remain constant in support and development....unlike GM and Chrysler, both of which are in dire straits.
How many Cavaliers do you see here? How many Neons? None....why???? After 4 years they are ready for the garbage. It has nothing to do with engine size....they are simply disposible cars.
As for the " I need an SUV to go through the puddles".....bullcrap. My little Mazda 121 was never once stopped by a puddle (lake) and i have gone with that...where many SUV's stay away. that little car is still being driven daily.
Written by: vacanos, 22 Aug 2009 10:07 AM
From: United States, An appeaser is one who feeds a crocodile, hoping it will eat him last.
generoso I see your point. the remaining follower (soul) of balaguer is fighting his ghost. i dont know if you noticed when they running for office they sell the figure of balaguer instead of themselve.
From: Dominican Republic
and the foto is not a 1957 tbird,it is a 1955 tbird....
oscar
From: Dominican Republic
Oil prices is briging reality to the american greed of bigger and freedom to terrestialy travel! The american will be force to scale down and given that "space" is very restrictive in urban areas and the large concentration of vehicles, THEY WILL HAVE NO CHOICE BUT TO SCALE DOWN! In my country, DR, the japanese helped us get there already and it is too late for the American to come and get a piece of the pie!
Someone mentioned American car win over European cars in an accident. That may be true but in STO DGO (not in the rural area) where the average speed is 50 Km/hr, consequences of accidents not longer gives the American an advantage!
From: United States, Fresh Water Paradise-NY Finger Lakes
Does everyone here realize that GM is a global company which makes vehicles in various countries, including: Germany [Adam Opel]; UK [Vauxhal]; China; Korea; etc.
In Germany in particular, GM makes some very nice and fuel efficient vehicles. Those vehicles are not brought to US because, here, they prefer the No. 1 selling vehicle: Ford F150! You go figure.
Written by: abc200, 22 Aug 2009 10:38 PM
From: United Kingdom, Dominican Republic
Written by: zak325, 25 Aug 2009 12:15 PM
From: United States
The car in the picture is actually a 1956, not a 1957 , and not a 1955 as oscar suggests, but a 1956 (note the continental kit), sorry ,it's a car guy thing.
From: Dominican Republic
hey when will understand thats how the dr functions.if u think politicians are corrupted here,imagine over there.every one is on the take.a senator over in dr makes about $7,000 dollars a month(LEAGALLY)jejeje.word of advice.do not send a car to dr,its cheaper to buy it over there.the prices of cars have actully gone down.people can't offered them anymore.less jobs,higher gas prices.trading and selling cars 4 pasolas(scootters).just look around .u can get a volks jetta 2001 for 6,000 dollars. if u live in the city buy a car.if u live in the campos(burbs)by a suv.buy the time u pay the all the transport taxes it comes to about the same price buying it there.and don't forget 2 bring parts 4 ur car in u suitcase.cheaper.there s deff eas to get around there bullshit.fight my friends
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All other first world countries are lowering their taxes or providing incentives, to stimulate new car sales, and the DR instead, keeps their predatory fiscal policies that limit car buyers just to the rich and upper middle classes.
Also the new car importers or ACOFAVE and the used car dealers ANADIVE have in place preferential and abusive tables of valuation (valores) that effectively give them an advantage versus the regular consumers of up to 50% of the total duties to be paid.
Continued below.....
Did you know that the land that the majority of new car importers built their car lots, was government land in the John F. Kennedy avenue? and they it was almost a bequest to them from the then president Balaguer to get on their good side?
Well the tradition continues, and the ghost of Balaguer and his sorry legacy lingers on.
So much for CAFTA..
As soon as I saw article I immediately went looking for your commentary....I knew it is sore subject with you, and rightly so.
Whole thing still seems like a blatant case of "double speak" on the part of the gov.
Professor, my sentiments exactly!
Generoso Don't Blame this new policies on Balaguer, not the I really care, But on what it is pure evil Capitalism.........
they were big back in the days when Balager used to be the man wearing pampers en el palacio
Thank you for the "honorable". LOL.
One of the main problems in the DR is the incapacity of the ordinary Joe, to make things right. I mean in the US you can make a stink, or call you congressman, or write to an independent newspaper and all of the sudden the injustice will get reversed, if you cry hard enough.
In DR is just the opposite and the common citizen is helpless, to change things with the media, and he really does not have any impartial congressional reps, except the empty suits that are just toll collectors for themselves.
In the DR an automobile is a necessity not a luxury, and gas prices are twice what they are in the USA, so an average citizen needs reliable, dependable transportation, but instead is being sequestered and obligated to accept the discriminatory and exorbitant automobile import duties that only benefit a select few, and hurt the majority.
This customs monopoly dispensed as a political favor to select few, must end.
generoso with all due respect my personal opinion there is no reason to bring Balaguer in the mouth of this me-first generation. back in 1977 my father an average joe bought a brand new daihatsu you know when balaguer had the gas at 38 cent and a dollar was equal as one peso. those alltimer are the one que no comen cuento con balaguer porque por lo menos la corrupcion paraba en el palacio.
it is funny when balaguer gave the country back to the PRD DR was a prosperous country and there was little need to emigrate to the usa. by 1984 under jorge blanco the country was at the border of a civil war. por algunas razon o otra el culpable de todos nuestro males era balaguer.
for the record balaguer is the only politician to held accountable another presiding president when he jailed jorge blanco for corrupcion.
I am not judging wether Balaguer, overall, did good things for the country or not, he did many great things at a time of much uncertainty and has many virtues, unlike his present day followers, that have none of his virtues and all and more of his faults.
With his sneakee petee way of centrally managing the economy, like a big colmado, he conducted himself like a king, bestowing favors on his favorite subjects (mercatilism), and some of the economic practices and rules from way back are still in effect, in regards to the automobile monopoly that discriminates the ordinary consumer and benefits only the big importers.
Having been a part of the auto indusrty back in Canada, I know the going price for a 2001 Honda CRV is approx $6300 in good condition. Here???? lets go almost double to $11,000 and add to that 33% interest rates for a good risk buyer.
The rich remain rich...the poor remain the supporter of the rich....but in this country...nobody bats an eye.
Oddly enough, today as it rained in the east, I saw 4 gruas...all with late model suv's that found the true limit of their off road capabilities. Why do I never see a beat up Toyota resting in a ditch???
All the money in the world does not make a Dominican driver invincible.
Worse yet, in a total move of "I don't give a shit" mentality...Mr. or Mrs Hummer decided that passing uphill on a corner with oncoming traffic was the right thing to do. If I was in the car coming towards them, i would have had a need to change my underwear.
BIG TRUCKS...SMALL BRAINS....how many times do we see this?
In other words...this is a non story, as US companies do not produce small engine vehicles, nor are they likely to in the future, with most of that production being built off shore anyways.
Snore
How many 1500 cc engine cars do you think GM could sell in US if they made one? I would say 10k-20k max, and that's an aggressive estimate.
Americans like their big car, and the most popular here is the Ford F150 pickup truck. Need I say more?
Look at situation in DR. SUV's are preferred mode of transportation. Most of them are driven by people who can't afford to cover all of their bills every month.
Reality is what it is and, in a free enterprise and capitalistic economy, you've better give the consumer what he wants or else you go out of business.
Tree huggers and far-left liberals would always prefer econo-boxes and hybrids out of conviction; however, they are not that good a customer. They keep their cars too long and, generally, do not stimulate the auto economy. You couldn't sustain a company the size of old GM on meager econo-box car volumes. Period.
After I returned from the states to DR I imported a car, much to my regret. When it rained the streets in the capital get flooded, because of lacking or bad drainage, and you must leave your car or brave it and try to cross the puddles with the risk of your engine stopping or the car interior being ruined. I had both cases happen, and swore that I will buy an SUV next. I did, and when it rains I do not have to worry if I am going to arrive safely. Also the higher visibility does give you a maneuvering and safety advantage, against crazy taxi drivers,(they are mostly Haitians LOL), and a versatility if you like to venture out into the country and sometimes "challenging" roads.
Dominican are used to Japanese vehicle and their attitude about Japanese vehicles is deep rooted (less maintenance, fit DR's road, last longer, it takes the abuse, consume less gas, and the looks that satisfy the Dominican society appetite for making a social statement). Yeah go ahead let the American clunkers come in cheap and they will still corrode in Dominican car sales lots!
I see your points above and concur with most of them.
However, when it comes to accident avoidance and maneuverability, a smaller vehicle, with lower center of gravity, should win every time over an SUV. There are many studies here in US corroborating this statement [darn, now Josean will demand proof!].
When it comes to fording and puddle crossing and good old off-roading, nothing beats an SUV. I know. We had a couple of Land Rovers-the real ones! Furthermore, if I had to hit a pothole, my vehicle of choice would definitely be an SUV. Period.
Lastly, it is apparent that you could afford the SUV and your bills all get paid when they come in, so you are not upside-down or pretentious or living beyond your means; that was part of my comments above, relative to many Dominicans.
I concur, and large automobiles and the preference of pick up trucks in the USA, I can guess that:
1. The automobile represents for Americans freedom of mobility, and the bigger the better, especially in some western states like Texas, Arizona, Nevada, Wyoming, and so forth.
2. It is true about mobility and parking ability, of small cars, it is also true that in Europe most automobiles are of the smaller and mini size, but in the states is the opposite so if you get into an accident with an SUV or Ford 150 and you are driving a Prius, who is going to suffer the most?
So it is a question of driver safety as well.
3. High gas prices are a recent phenomena in the US and the US drivers are used to driving long distances on cheap gas, automobile sales are a market indicator for the well being of the economy in the US.
4. I agree that the demise of the gas guzzler is in view, thankfully. But the change over process will probably take another generation, to become effective.
At least Ford the mindset to develop themselves overseas at an early age and remain constant in support and development....unlike GM and Chrysler, both of which are in dire straits.
How many Cavaliers do you see here? How many Neons? None....why???? After 4 years they are ready for the garbage. It has nothing to do with engine size....they are simply disposible cars.
As for the " I need an SUV to go through the puddles".....bullcrap. My little Mazda 121 was never once stopped by a puddle (lake) and i have gone with that...where many SUV's stay away. that little car is still being driven daily.
oscar
Someone mentioned American car win over European cars in an accident. That may be true but in STO DGO (not in the rural area) where the average speed is 50 Km/hr, consequences of accidents not longer gives the American an advantage!
In Germany in particular, GM makes some very nice and fuel efficient vehicles. Those vehicles are not brought to US because, here, they prefer the No. 1 selling vehicle: Ford F150! You go figure.
http://richardcochrane.hypocrisy...../08/05/top-clunker-ford-explorer/
If the Dominican government were wise they could replace the import duty by an anti-dumping duty as car manufacturers are highly subsidised by US Government.
S.