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Santo Domingo.- The Dominican Courier Companies Association (ASODEC) goes before the Administrative Superior Court (TSA) Monday to seek an injunction against the Customs Agency’s decision to tax online purchases lower than US$200, starting Friday.

It’s ASODEC’s first legal move against the tax, and one of several challenges announced for the coming days.

Last week ASODEC spokeswoman Laura Castellanos said the entity plans several moves against Customs’ “illegal” measure she affirms even violate the with US-Central America (Cafta-Dr) free trade agreement and estimates a jump on the price of online purchases as high as 38%.

The high Court will also hear Wednesday a challenge as unconstitutional filed by the Justice and Transparency Foundation (FJT), the Defense Dominican Consumers and Users Alliance (ASODECU) and the Dominican Chamber of Commerce.

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COMMENTS
8 comment(s)
Written by: zooma, 11 Aug 2014 8:49 AM
From: United States, and Dominican Republic

Customs as usual, coerced by the business interests to apply the tax is shooting from the hip. It is not taking time to evaluate the repercussions of its decision may lead to reciprocal taxes in retailiation levied by states the country exports to. It may hinder Dominican efforts to market its products and services. It will also lead to higher government costs to process each of these shipments to include: addtional paperwork, burdensome revenue collection, and additonal man hours that will not be covered by the revenues gained by the practice. It will delay deliveries.

Transport volume will decline and the air couriers will increase tariffs to make up for loss of revenue of under $200 shipments. The businesses will be affected by the increased tariffs. You may expect a $60 priority express envelope of purchase proposals to foreign vendors may in the future cost $90.

Customs shoots from the hip to shoot itself in the foot. Businesses lose.
Written by: anbro2007, 11 Aug 2014 8:49 AM
From: United States
The so called Government need more pocket money to waste, so some one has to pay for it. Dose not matter if it is illegal or violate the free trade agreement with the US. They want your money no matter what and how !!!
Written by: juanb, 11 Aug 2014 9:12 AM
From: Dominican Republic


Can't wait to hear the crying when the US holds us in violation of the Free Trade Acts.
Written by: chillinout, 11 Aug 2014 9:33 AM
From: Dominican Republic
I don't get how a policy since 2005 gets overturned because a guy from Customs says everyone has read the law incorrectly. He may be correct but how does it go on for nine years?

Where are the politicians/officials that wrote and approved the law to explain what the law is?

I compared prices of my shipped in items and those that are even available here are still 50% - 66% cheaper than buying locally with 38% added to purchase price plus shipping cost taxed.

.

Written by: chillinout, 11 Aug 2014 9:40 AM
From: Dominican Republic
If I have to go to Santo Domingo to purchase things it costs me $100.00 in gas and tolls plus 4 hours of driving. So this is another (tax) to buy in country as far as I'm concerned.

Now I will calculate new taxes and shipping costs on expected purchases to see if it is better to just buy a ticket back to Ft. Lauderdale for $250.00 and bring the stuff back. It will be like a free ticket home or just wait until a planned trip.

I can understand if just the ITBIS of 18% is added. I think it is immoral and punitive to tax purchases 18% when consumers are using after taxed dollars (income tax taken) to live.
Written by: PuntaCanaMike, 11 Aug 2014 2:14 PM
From: Dominican Republic
Nice thing is the clarity of all of this...18 to 42%. WHAT IS AT 18 AND WHAT IS AT 42???

This is so typical of this country...as mentioned before...how has this been bypassed for many years...even having the current President's support....only to be overturned by someone we have never heard of up until now?
Written by: Firtipton, 11 Aug 2014 2:22 PM
From: United States
This is unlikely something customs would do on their own. It appears likely someone somewhere else in government wants more revenue. More than likely, shipping via carriers like EncargoPaq and EPS is inelastic. Their clients are prominently extrajeros and well-to-do Dominicans who are buying items that cannot be found in the Dominican Republic, like quality cotton sheets, computer parts and real vanilla extract.

Irrespective of the inelasticity, customs probably will not go through with it because of the uproar and the cost of implementing it will equal what they get in fees.

Here is another factor that will probably embarrass customs in the future if the new fees go through, the disappearance of more packages because they are small and can easily fall into an inspector's pocket. Or fall off a truck.
Written by: chillinout, 12 Aug 2014 2:31 PM
From: Dominican Republic
Just used an export calculator using US$100,000. of laptop computers as an example adding a US$1000. shipping cost and US$500. insurance cost.

Export from Dominican Republic to USA --- Duty $0.00, US Merchandise Processing fee $346.00, IRS Tax $0.00

Total cost $346.00 to import into America from Dominican Republic


From USA to Dominican Republic ------

Duty $0.00, Exchange surcharge $13,195, VAT tax $18,270

Total cost to import $31,465.00 Then retailer adds profit plus another 18% ITBIS tax I think.

No wonder why people are poor here.

Free trade agreement my butt.
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