exporTT Limited
www.exportt.co.tt
An Exporter’s Guide to the Dominican Republic
THE FREE TRADE AREA BETWEEN CARICOM AND THE DOMINICAN REPUBLIC
CONTENTS
UNDERSTANDING THE FREE TRADE AGREEMENT
Overview
Trade in Goods
Special Arrangements for Agricultural Goods
General Exceptions to Trading in Goods
Safeguard Measures
Unfair Trade and Anti-Competitive Business Practices
Rules of Origin
Wholly Produced Goods
Insufficiently Processed Goods
Materials That Are Part of the Operation or Production Processes
Packaging
Transportation Issues
Regional Value Content (RVC)
De Minimis Provision
Maintenance of Records
Certification of Origin
Non-Requirement of Certificate of Origin
Verification of Origin
Trade in Services
Temporary Entry for Business Persons
Temporary Entry for Investors
Temporary Entry for Intra-Company Transferees
Activities of Business Visitors
ABOUT THE DOMINICAN REPUBLIC
The Dominican Republic: Facts and Figures
1
exporTT Limited
www.exportt.co.tt
Work and Infrastructure
Customs Regulations
Industrial Free Zones
Other Trade Agreements
Market Entry Issues
EXPORT PROCEDURES
Exporting from Trinidad & Tobago
Importing into the Dominican Republic: General Timeframes and Costs
Other Import Requirements
Translation Services
Shipping Information
2
exporTT Limited
www.exportt.co.tt
UNDERSTANDING THE FREE TRADE AGREEMENT
OVERVIEW
The CARICOM / Dominican Republic Free Trade Agreement grants our exporters access to more than
eight million consumers in the Dominican Republic market. This agreement provides for duty-free access
for all goods other than certain specifically listed goods, including those that are economically sensitive.
In addition to trade in goods, the agreement makes provisions for liberalisation of trade in services. It
also incorporates commitments to develop other areas of co-operation including reciprocal promotion
and protection of investment, double taxation issues and government procurement.
The agreement aims to not only establish a Free Trade Area between CARICOM and the Dominican
Republic but also to promote and expand the sale of goods originating in these territories through free
access to markets, the elimination of non-tariff barriers to trade and the establishment of Rules of
Origin, Customs Co-operation and the Harmonisation of Technical, Sanitary and Phyto-Sanitary
Procedures.
A Joint Council is responsible for the administration of the Agreement and resolution of any disputes
that cannot be resolved through informal consultations. Aggrieved parties may request an intervention
in writing to the other party and to the Joint Council if both parties fail to arrive at a mutual solution
within 30 days or, in the case of perishables, within 10 days.
The Agreement also promotes the active participation of the private sector via the establishment of a
CARICOM/Dominican Republic Business Forum to analyse trade and investment opportunities, exchange
business information and organise business encounters and any other matters referred to it by the Joint
Council.
HOW DOES THE AGREEMENT PROMOTE TRADE IN GOODS?
The Agreement promotes trade liberalisation, granting goods originating from Trinidad and Tobago
duty-free access and phased reduction of the Most Favoured Nation (MFN) rate of duty on specified
goods, once the Rules of Origin conditions are satisfied. Additionally, local entrepreneurs will be allowed
to promote or manage the import, sale, rent or any other form of traffic or sale of merchandise or
products of CARICOM origin as an agent, representative, commission agent, exclusive distributor or
licensee on the same basis as Dominican Republic nationals.
3
exporTT Limited
www.exportt.co.tt
ARE THERE SPECIAL ARRANGEMENTS FOR AGRICULTURAL GOODS?
In order to avoid adverse impact on the demand for local production resulting in serious losses for
producers or farmers, and taking into account the seasonal and perishable nature of agricultural goods,
selected agricultural products are treated differently. The Most Favoured Nation (MFN) rate of duty will
be applied to these selected agricultural products, which are eligible for duty-free treatment, during
certain periods of the year. This schedule may be reviewed periodically by the Joint Council.
The agricultural products which are subject to special trade arrangements and carry a Common External
Tariff of 40% include the following:

Potatoes, fresh or chilled;

Tomatoes, fresh or chilled;

Onions and shallots, fresh or chilled;

Cauliflower and headed broccoli, fresh or chilled;

Cabbages, fresh or chilled;

Cabbage lettuce (head lettuce), fresh or chilled;

Other lettuce, fresh or chilled;

Carrots and turnips, fresh or chilled;

Radishes, fresh or chilled;

Cucumbers and gherkins, fresh or chilled;

Leguminous vegetables, shelled or unshelled, fresh or chilled;

Fruits of the genus capsicum or of the genus pimento;

Spinach, New Zealand spinach and orache spinach (garden spinach);

Ochro, pumpkin and sweet corn;

Dried leguminous vegetables, shelled, whether or not skinned or split;

Manioc (cassava);

Sweet potatoes;

Dasheen and yams;

Bananas, including plantains, fresh or dried;

Pineapples, fresh or dried;

Avocados, fresh or dried;

Guavas and mangoes, fresh or dried;
4
exporTT Limited
www.exportt.co.tt

Citrus fruit, fresh or dried;

Melons (including watermelons) and papaws (papayas), fresh;

Sapodillas, golden apples and carambolas, fresh.
WHAT ARE THE GENERAL EXCEPTIONS TO TRADING IN GOODS?
It should be noted that measures may be taken by CARICOM or the Dominican Republic to implement
measures necessary for the following reasons:

To protect public morals;

To prevent crime or the maintenance of public order;

To protect its essential security interests;

To protect human, animal and plant life;

To secure compliance with laws or regulations, including those relating to customs enforcement,
the enforcement of monopolies, the protection of patents, trademarks and copyrights and the
prevention of deceptive practices;

For acquisition or distribution of products in short supply, especially relating to gold or silver
production or trade, the products of prison labour and the preservation of the environment and
the conservation of natural resources;

For the protection of national treasures of artistic, historical, anthropological, paleontological or
archaeological value.
ARE THERE SAFEGUARD MEASURES?
Bilateral safeguard measures may be applied temporarily by CARICOM or the Dominican Republic under
the following conditions:

When imports of products are made in such quantities to cause serious injury or threat to the
domestic injury;

When it is necessary to redress balance-of-payment deficits or protect the external financial
position of the importing country.
Safeguard measures may include the temporary suspension of tariff preferences and reinstatement of
MFN duties for a specific product. These measures can be applied initially for no longer than one year
and may be renewed for no more than one year if the circumstances persist.
5
exporTT Limited
www.exportt.co.tt
HOW DO WE GUARD AGAINST UNFAIR TRADE AND ANTI-COMPETITIVE BUSINESS PRACTICES?
Provisions exist to correct any injury, material injury or threat of injury to the domestic market due to
unfair trade practices such as export subsidies and dumping as laid out in the Agreement on Subsidies
and Countervailing Measures and the Agreement on the Implementation of Article VI of the General
Agreement on Tariffs and Trade 1994. Anti-competitive business practices are also discouraged and all
countries will work towards establishing mechanisms to prevent such practices.
WHAT ARE THE RULES OF ORIGIN?
In order to ensure that goods are entitled to receive preferential agreement, they must satisfy the Rules
of Origin, as follows:

They must be wholly produced in the exporting country;

They must be produced in the exporting country wholly or partly from materials imported from
other countries by a process that effects a substantial transformation. This means goods must
be classified in a six-digit subheading of the Harmonised Commodity Description and Coding
System different from that in which any of the imported materials are classified.
WHAT ARE WHOLLY PRODUCED GOODS?

Products from the mineral, plant or animal kingdoms (including those from hunting and fishing),
extracted, harvested or gathered, born, bred or captured in the originating territory or in its
territorial waters or exclusive economic zones;

Products of the sea extracted beyond the territorial waters and their exclusive economic zones
by ships, wholly or partially owned by nationals of the parties, legally chartered, leased or
contracted under joint venture arrangements by enterprises established in the territories of the
parties;

Products of factory ships, wholly or partially owned by nationals of the parties, legally chartered,
leased or contracted under joint venture arrangements by enterprises established in the
territories of the parties produced from goods or products of the sea, extracted by ships in ways
stated above;

The slag, ashes, residues, waste or scrap, gathered or obtained from manufacturing and
processing operations performed in the territories of the parties, fit only for the recovery of raw
materials, as long as they do not constitute toxic or hazardous wastes in accordance with
national and international law;
6
exporTT Limited
www.exportt.co.tt

Goods produced in the territories of the parties which are made solely from originating goods.
WHEN ARE GOODS CONSIDERED INSUFFICIENTLY PROCESSED FOR PREFERENTIAL TREATMENT?
Exporters should be aware that goods will not be given preferential treatment if they are produced by
any operation or process that consists of ONLY one or more of the following:

Operations to ensure the preservation of goods or products during transportation or storage,
such as ventilation, refrigeration, freezing, addition of preservatives or salt, removal of damaged
parts and the like;

Operations such as dust removal, washing or cleaning, sifting, peeling, shelling, winnowing,
maceration, drying, sorting, classification, grading, selection, crushing, filtering, diluting in water,
painting or cutting up;

The simple formation of sets of goods;

The packing, placing in containers or repackaging;

The dividing up or assembly of packages;

The affixing of brands, labels or other similar distinctive signs;

The simple mixture of materials, if the characteristics of the product obtained are not essentially
different from the characteristics of the materials which have been mixed;

The slaughter of animals.
WHEN MATERIALS ARE NOT INCORPORATED INTO GOODS BUT ARE PART OF THE OPERATION OR
PRODUCTION PROCESSES, ARE THEY STILL CONSIDERED “ORIGINATING”?
According to the Agreement, any material, input or product, which is not physically incorporated in
goods used in the production, verification and inspection of the goods, and operation of equipment
related to it or for the maintenance of buildings, will be considered originating regardless of the country
where it was manufactured or produced.
These include:

Fuel, electrical, catalysts and solvents;

Equipment, apparatus and accessories used for the verification or inspection of goods;

Gloves, protective eye masks, footwear, apparel, security equipment and accessories;

Tools, dies (for die-cutting) and moulds;

Spare parts and materials used in the maintenance of equipment and buildings;
7
exporTT Limited
www.exportt.co.tt

Lubricants, oils, compound products and other products used in the production process,
equipment operation or maintenance of buildings;

Any other material or product which is not incorporated in the goods, but which can be shown
to be part of the production.
Additionally, it should be noted that when materials or products originating in the territory of any of the
parties are incorporated into goods in the other party’s territory, the point of origin will be the place
where final production takes place. Rules of origin governing assembly goods will be considered on a
case-by-case basis.
Furthermore, accessories, spare parts and tools despatched with a piece of equipment, machine,
apparatus or vehicle, and which are part of the normal equipment, will not factor in considerations
about classification changes for non-originating materials, under the following conditions:

They are not separately billed from the piece of equipment, machine or vehicle;

The quantity and value of these accessories, parts and tools are the normal ones used for
related goods.
In instances where they do not fulfil these conditions, the corresponding rule of origin will be applied to
each separately.
DOES PACKAGING AFFECT RULES OF ORIGIN?
Packing presented with the merchandise and classified with the goods they contain will not be
considered for determining the origin of the related goods, once they are used on a normal basis. If they
are not used on a normal basis, the goods may be treated separately from the packaging to determine
the origin of both.
Additionally, no part of any packaging that is required for the transport or storage of goods will be
considered when determining the origin of the goods as a whole.
DO TRANSPORTATION ISSUES AFFECT PREFERENTIAL TREATMENT?
For goods to benefit from preferential treatment, they must be directly delivered from the exporting to
the importing country.
8
exporTT Limited
www.exportt.co.tt
Direct consignment includes the following:

Goods transported without going through third countries;

Goods transported in transit through one or more third countries, with or without transhipment
or temporary storage, under the surveillance of customs authorities of such countries, provided
that:
o
The transit is justified by geographical reasons or by considerations related to transport
requirements;
o
They are not designed for trade or use in the transit country;
o
They do not undergo during transportation or storage any operation other than loading
or unloading or operations to keep them in good condition and ensure their
conservation.
If transhipment does take place, the certifying authority in the State through which the goods are
transhipped has to affix the authorised signature and approved stamp on the relevant transport
documentation.
HOW IS REGIONAL VALUE CONTENT (RVC) CALCULATED?
The Regional Value Content (RVC) tests whether the goods are allowed to qualify. The RVC of the goods
is calculated based on the Transaction Value (TV) method, applying the following formula:
RVC = [(TV – NOG) / TV]* 100 where:
RVC = Regional Value Content, expressed as a percentage
TV = Transaction Value of the merchandise, adjusted on an FOB base.
NOG = Value of non-originating goods used in the production of the final product.
It should be noted that where the value of the goods is on a basis other than FOB it shall be adjusted to
FOB. In some cases, the origin is determined by the Regional Value Content, in which case the required
percentage is specified within the Agreement. All costs considered in the calculation of Regional Value
Content shall be registered and kept in accordance with generally accepted accounting principles,
applicable in the territory of the Party where the good is produced.
9
exporTT Limited
www.exportt.co.tt
WHAT IS THE DE MINIMIS PROVISION?
Often, changes in tariff classification require that all non-originating materials undergo the required
classification change. A low percentage of the materials may not undergo the tariff change, so
preventing the goods from originating. The “de minimis” provision allows goods to qualify as originating
provided such materials are not more than a certain percentage of the transaction value of the goods,
adjusted to a FOB basis.
Under the terms of this agreement, materials will be considered to be originating goods when the value
of all non-originating materials used in the production of goods that do not undergo an applicable
change in tariff classification is not more than seven percent (7%) of the transaction value of the goods,
adjusted to a FOB basis.
WHAT RECORDS SHOULD BE MAINTAINED?
The exporter or final producer who completes and signs a Certificate of Origin must keep all records and
documents pertaining to the origin of the goods for a minimum of three years from the date of the
certificate. They may also be required to produce these records and documents when requested by the
relevant authorities in accordance with national legislation.
HOW DOES CERTIFICATION OF ORIGIN WORK?
A Certificate of Origin must be used. It must include a declaration by the exporter or final producer that
the origin requirements have been met as well as a certificate by the authorised body of the exporting
country that this declaration is accurate.
The following issues should also be noted by exporters:

Where the exporter is not the final producer of the goods or products, the exporter must
present the declaration of origin to the authorised body;

The Certificate of Origin must always be prepared by the exporter in the country of final
production;

The Certificate of Origin will have affixed the signature of an official notified by the authorised
body of the exporting country;

The date of the Certificate of Origin may not precede that of the relevant commercial invoice;

The Certificate of Origin will be valid for a period of 180 days from the date of issue;
10
exporTT Limited
www.exportt.co.tt

Where the goods traded under this Agreement are accompanied by a Certificate of Origin, that
Certificate will be deemed to satisfy the requirement of the Consular Invoice.
WHEN IS THE CERTIFICATE OF ORIGIN NOT REQUIRED?
An invoice, with a duly signed declaration that the goods produced in a CARICOM Member State or in
the Dominican Republic will be considered satisfactory to satisfy the requirement of the Certificate of
Origin, where the value of the goods expressed in national currency does not exceed the equivalent of
US$1,000.00. This exception will not apply where the imports are proven to be the result of two or more
parts of a consignment.
HOW IS ORIGIN VERIFIED?
Under the Agreement, the importing country may conduct verification of origin of goods by submitting
to the relevant authority of the exporting country a request for information from an exporter or a
producer. They may also conduct visits to the premises of an exporter or producer to review
documentation and accounting records and observe the production of goods. They may also utilise
other procedures once they are agreed upon by both parties whenever necessary.
In terms of timeframes, the Dominican Republic will, through its designated entity, notify its Trinidad
and Tobago counterpart of its intention to carry out verification. Within five days of despatch of this
notification, the exporter and/or producer of the goods will be notified. The Dominican Republic’s
authority will then obtain the written consent of the exporter or producer of goods whose premises are
to be visited.
Where exporters or producers do not give either written consent to proposed verification visits or
provide requested information within 30 days, they may be denied preferential tariff treatment to the
goods in question.
Notification of visits to exporters/producers will include the following:

The identity of the designated entity issuing the notification;

The name of the exporter or producer whose premises are to be visited;

The date and place of the proposed verification visit;
11
exporTT Limited
www.exportt.co.tt

The object and scope of the verification visit, including specific reference to the goods which are
the subject of the verification;

The names and designation of the officials who will carry out the visit;

The legal basis for the verification visit.
The exporter or producer may have two observers present during the visit provided that they participate
only as observers. The failure of the exporter or producer to designate observers will not result in the
postponement of the visit.
Written determination of whether or not the goods qualify as originating goods, including findings of
fact and the legal basis for the determination, will be provided to the exporter or producer within
twenty-one (21) days of the conclusion of the verification exercise.
HOW DOES THE AGREEMENT PROMOTE TRADE IN SERVICES?
The Agreement makes provisions for the liberalisation of trade in services. In recognition of the growing
importance of services to the region’s economies, particular attention will be paid, but not limited, to
the following sectors:

Tourism and entertainment;

Free Trade Zones / Export Processing Zones Services;

Financial Services;

Professional Services (e.g. medical, legal, accounting and engineering);

Design;

Construction (skilled workers);

Informatics;

Telecommunications;

Transportation.
UNDER WHAT CIRCUMSTANCES WILL BUSINESS PERSONS BE ALLOWED TEMPORARY ENTRY?
Business persons, who are otherwise qualified for entry under applicable measures relating to public
health and safety and national security, will be granted temporary entry to the Dominican Republic.
Employment authorisation will not be required provided that the business person complies with existing
immigration requirements on presentation of the following:
12
exporTT Limited
www.exportt.co.tt

Proof of citizenship;

Documentation supporting the request of the person’s company or business association
established in the territory of a party;

Documentation demonstrating that the business person will be so engaged and describing the
purpose of entry;

Evidence demonstrating that the proposed business activity is international in scope and the
business person is not seeking to enter the labour market.
Business persons can demonstrate that they have satisfied the requirements stated above by proving
that the primary source of remuneration for the proposed business activity is located outside of the
Dominican Republic. They must also prove that their principal places of business and the actual accrual
of profits remain predominantly outside of the Dominican Republic. To this end, an oral declaration as to
principal place of business and actual place of accrual of profits may be accepted. Should additional
proof be required, a letter from the employer should suffice.
However, it should be noted that immigration documents that authorise a business person to work, may
be refused when such temporary entry is considered to adversely affect the following matters:

The settlement of any existing labour unrest that is in progress at the place or intended place of
employment;

The employment of anyone who becomes involved in this conflict;

Other matters of national interest.
If a business person is refused entry, he/she is normally informed in writing of the reasons for the
refusal. It should be noted that the temporary entry of business persons does not authorise the conduct
of professional activities.
UNDER WHAT CIRCUMSTANCES WILL INVESTORS BE ALLOWED TEMPORARY ENTRY?
Under the Agreement, all countries have agreed to establish and maintain an investment-friendly
environment including facilitative administrative procedures.
Business persons will be granted a temporary entry permit if they are seeking to establish, develop,
administer or provide key advisory or technical services in a capacity that is supervisory or executive or if
13
exporTT Limited
www.exportt.co.tt
they are providing skills essential to the administration of investments to which they or their company
have committed or are in the process of committing a significant amount of capital.
Under these conditions, investors are not required to undergo labour certification tests or other similar
procedures. Nevertheless, the relevant authorities may examine expeditiously the investment proposal
to verify whether the business person complies with the applicable legal provisions. In some cases, a
business person seeking temporary entry may be required to obtain a visa or its equivalent prior to
entry.
UNDER WHAT CIRCUMSTANCES WILL INTRA-COMPANY TRANSFEREES BE ALLOWED TEMPORARY
ENTRY?
Temporary entry permits will be granted to business persons employed by a company established in its
territory, who seek to perform managerial or executive functions which involve specialised knowledge,
either in that company or one of its affiliates, once there is compliance with existing immigration
measures on temporary entry.
The business person in this instance must demonstrate that he/she has been continuously employed by
the company for at least one year, within the three-year period immediately preceding the date of
application for admission. Labour certification tests or other similar procedures are not applicable under
these conditions. In some cases, a business person seeking temporary entry may be required to obtain a
visa or its equivalent prior to entry.
IN WHAT ACTIVITIES CAN BUSINESS VISITORS ENGAGE?
Business visitors may engage in the following activities:

Research and Design: Technical, scientific and statistical researchers whether independent of or
on behalf of a company located in Dominican Republic;

Agriculture, Manufacturing and Production: Personnel involved in purchasing and production,
at the managerial level, who are conducting commercial operations for a company located in
the Dominican Republic;

Marketing: Personnel conducting research or analysis, including market research, whether
independently or on behalf of a company established in the territory of the other party; trade
fair and promotional personnel attending a trade convention;
14
exporTT Limited
www.exportt.co.tt

Sales: Sales representatives and agents taking orders or negotiating contracts for goods or
services for a company located in the territory of another party, but not delivering goods or
providing services; buyers purchasing for a company located in Dominican Republic;

Distribution: Custom brokers providing consulting services regarding the facilitation of the
import or export of goods;

After Sales Service: Personnel who install, repair, maintain, supervise and have specialised
technical knowledge, necessary to complete the contractual obligations of the seller and who
offer services or train workers to provide these services, in conformity with a warranty or other
service contract connected to the sale of equipment or commercial or industrial machinery,
including computer programmes purchased from a company located outside of the Dominican
Republic, during the life of the warranty or service contract;

General Services: Management and supervisory personnel engaging in a commercial transaction
for a company located in the Dominican Republic; public relations and advertising personnel
consulting with business associates or attending or participating in conventions; tourism
personnel (tour and travel agents, tour guides or tour operators) attending or participating in
conventions;

Translators or interpreters who provide services as employees of a firm located in the
Dominican Republic.
15
exporTT Limited
www.exportt.co.tt
ABOUT THE DOMINICAN REPUBLIC
THE DOMINICAN REPUBLIC: FACTS AND FIGURES
Official Name: Dominican Republic
Capital: Santo Domingo
Area: 48,380 sq km
Population Size: 8,833,634 (July 2004 est.)
Population Growth: 1.33% (2004 est.)
Demographics:
Age structure: 0-14 years: 33.3%; 15-64 years: 61.4%; 65 years and over: 5.3% (2004 est.)
Location: Caribbean, eastern two-thirds of the island of Hispaniola, between the Caribbean Sea and the
North Atlantic Ocean, east of Haiti; 19 00 N, 70 40 W
Official Language: Spanish
Currency: Dominican peso (DOP)
Territorial Organisation: 31 provinces (provincias, singular - provincia) and 1 district
Government System: Representative Democracy
President: Danilo Medina
Exchange Rate: US$1 = 40.41DOP
Official Time: GMT -5 hours
Telephone Area Code: 809
Main Airports: Santo Domingo (Las Américas and Herrera), Puerto Plata (La Romana, Punta Cana),
Barahona (Maria Montez). Samana has two airports (Portillo and Arroyo Barril) that offer domestic
service and can be habilitated for international flights of small airplanes.
Main Ports: Barahona, La Romana, Puerto Plata, San Pedro de Macoris, Santo Domingo
WORKFORCE AND INFRASTRUCTURE
The country has a diverse workforce ranging from university graduates at manager level to technicians
and workers with basic skills. The economically active population is estimated to be around 2.3 million,
of which 49% are dedicated to agriculture, 33% to services and 18% to the industry. Apart from
electricity, infrastructure is highly developed, while transport facilities, both at a local and international
level, are very good. The domestic road network is one of the best in the region and the maritime and
air services include the main cargo lines and airlines worldwide. The three main airports receive cargo
and passengers directly from North and South America, as well as from Europe. The country has also
16
exporTT Limited
www.exportt.co.tt
many important seaports, such as the Haina Port, which is located west of Santo Domingo and is one of
the most modern in the Caribbean.
CUSTOMS REGULATIONS
Custom Duties
The Customs Code, contained in Law 14-93 of 28 August 1993, harmonized customs tariffs, adopting the
internationally recognized Harmonized System of Codification and Designation of Goods. The wide
variety of categories and rates that previously existed was in this way eliminated and only six tariffs
were established. These amendments simplified considerably the procedure for the calculation and
collection of custom duties.
A customs duties reform was passed by way of Law 146-00 of 27 December 2000, which sets duty rates
of 0.3%, 8%, 14% and 20%, thus reducing the top 35% existing previously. Furthermore, duty
exemptions for strategic economic sectors have been maintained and reinforced. In this regard, duties
were reduced for a series of raw materials, equipment and high technology accessories used for these
sectors, some of which are even subject to a zero rate in order to make them more competitive.
From July 2001, Article VII of the GATT as method of valuation of merchandises entered into effect, as
provided in Law 146-00 (as amended by Law 12-01 of 17 January 2001).
Custom duties are calculated and paid in Dominican pesos. The conversion into pesos of the value of the
goods is made according to the official exchange rate applicable at the time of payment. In addition to
custom duties, the importer has to pay (i) the selective consumption tax charged on certain products,
which ranges from 10% to 80%, calculated on the CIF price of the good plus custom duties, and (ii) the
tax on the transfer of industrialized goods and services (ITBIS), which accounts for 12% of the CIF price
of the product plus duties and (i). Apart from free zones, there are very few exemptions to the payment
of import taxes. These are limited to some basic products, agricultural products like insecticides and
herbicides, articles to be used by international organizations or the diplomatic corps, articles to be used
for religious worship and samples for exhibition at international fairs.
17
exporTT Limited
www.exportt.co.tt
INDUSTRIAL FREE ZONES
The free zone system of the Dominican Republic is one of the most advanced worldwide. The country
has been developing its free zone network since 1969, when less than a dozen industrial zones existed
throughout the world. Several measures have been adopted by presidential decree on behalf of free
zone companies, such as the granting of more flexibility to working schedules, elimination of certain
technical hindrances to customs clearance of imports, and the construction of new industrial parks in
less economically developed regions, and the establishment of additional incentives to companies that
set their operations in those areas.
Advantages of the Dominican Free Zone Network
The advantages offered by the Dominican free zone network which have contributed to its fast
development are the following:

Attractive legal framework which exempts free zone companies from the payment of import
duties, income tax and most other tax obligations;

Preferential access rights which allow Dominican exports to enter the markets of United States
and Europe without having to pay custom duties;

Possibility of obtaining financing from local or foreign institutions;

Facilities to freely repatriate abroad the profits in foreign currency;

Background of political stability.
Definition and Types of Free Zones
Law 8-90 defines a free zone as a geographic zone of the country subject to special custom and tax
controls, which provides for the installation of companies whose production is destined to foreign
markets, through the granting of the necessary incentives for their development. The creation of a free
zone needs to be authorized by the Executive Power. There are three different kinds of free zones
according to location:

Industrial or services free zones, which can be located anywhere in the country;

Border free zones, which must be located near the Haitian border and are granted additional
incentives;

Special free zones, which due to the nature of the manufacture process of their products need
to be located in particular places (i.e. close to the source of raw materials).
18
exporTT Limited
www.exportt.co.tt
Management of Free Zones
Free zones are managed by "free zone operators", who are charged with negotiating and contracting
with the companies wishing to operate in the free zone. Operators may sell, lease and rent buildings or
facilities to the interested companies, as well as carry out promotion and marketing activities, being free
to fix space and maintenance costs. Operators must have a permit issued by the CNZF and ratified by the
Executive Power, and are bound to comply with certain infrastructure and maintenance requirements in
the free zone. There are also free zones belonging to the State, which are managed by the Industrial
Promotion Corporation ("Corporacion de Fomento Industrial- CFI").
Installing a Free Zone Company
Free zone companies are persons or companies which have been authorized by the CNZF to install
themselves in a free zone and whose production is destined for export. Usually a Dominican company is
incorporated to make the request, which can belong entirely to foreign investors. In order to obtain an
installation permit the following documents must be submitted:

Duly completed CNZF installation permit form;

Rent contract with the respective free zone;

Incorporation documents of the company;

Samples of the product to be manufactured;

Proof of solvency of the main investors;

Certified cheque for the payment of newspaper publications.
Incentives
Free zone companies are exempt from the following taxes and duties: income tax, taxes on
constructions, registration or transfer of real property rights, taxes for incorporation of companies and
increase of capital, municipal charges, ITBIS, consular fees, export or re-export taxes.
Furthermore, they are exempt from the payment of all custom duties, import taxes and related charges
on the following:
19
exporTT Limited
www.exportt.co.tt

Raw materials, equipment, construction materials, office equipment and any other goods
necessary for the construction, preparation and operation of the company;

Materials and equipment needed for the construction of housing facilities, cafeterias, health
services or others established for the benefit of workers;

Transportation vehicles, including cargo trucks, garbage collectors, buses for workers, etc., upon
approval of the CNZF.
These benefits are granted for a period of 15 years. Companies located in border free zones benefit
from a longer period of 20 years, enjoying also other additional benefits such as rent subsidies, priority
treatment for the export of goods limited by foreign quotas and for the assignment of development
funds, etc.
Sale of Production in Local Market
Free zone companies can sell all their production in the local market, after payment of all applicable
custom duties, as long as (i) the goods or services are not produced or imported in the country, and (ii)
the goods or services have local components accounting for 25% of their value. When the products or
services are manufactured or imported in the country the free zone company can only sell up to 20% of
its production in the Dominican market.
OTHER TRADE AGREEMENTS
Although the Free Trade Agreement (FTA) between CARICOM and the Dominican Republic was signed
since August 22, 1998, trade has not increased since then as the utilisation rate of the FTA averaged 1%.
Five months earlier (April 16, 1998) the Central America-Dominican Republic Trade Agreement was
signed, which provides ease of access for Central American’s goods into the Dominican Republic,
without the hassle of duty and the language barrier. The oldest regional agreement is with Panama
(signed in 17 July 1985). Within most recent times (August 5, 2004), the Central America-United States
(DR-CAFTA) was signed which provided market access for US goods into the Dominican Republic. Both
the Central American and DR-CAFTA Agreements have changed the landscape of suppliers to the market
and have provided increased competition for Trinidad and Tobago’s exports to that country.
20
exporTT Limited
www.exportt.co.tt
MARKET ENTRY ISSUES
The Distributor Article 173 states that if a company is desirous of changing his representative, costs
related to sales for the last five years must be taken into account along with product promotion in the
market. The CARICOM/Dominican Republic Free Trade Agreement Annex – Article 4 – under the Protocol
of Implementation – Application of Dominican Republic Law 173, however, states that if companies
agree to exclude Law 173 from the Contract, it can be stated in the Agreement.
Another option to circumvent Law 173 is Commercial Presence; establish the company in the market as
the main distributor and then issue sub-distributor contracts. Apart from developing a strong brand for
market penetration, the Dominican Republic is looking for products which are differentiated by price
and innovation.
21
exporTT Limited
www.exportt.co.tt
EXPORT PROCEDURES
EXPORTING FROM TRINIDAD & TOBAGO
Exporting successfully requires a great deal of pre-planning. Before even starting the export process,
companies must assess their export readiness, build an export plan, research and select their target
market and create an export marketing plan. They must also determine the best methods of delivering a
product or service to the target market inclusive of the most relevant entry strategies, in addition to
developing a sound financial plan and understanding the key legal aspects of international trade.
When identifying the goods you wish to export, determine whether they are controlled, prohibited or
regulated and if a permit, licence or certificate to export is required. The goods need to be allowed to be
exported from Trinidad and Tobago and allowed entry into the importing country.
It is also important to identify accurately the country of origin of the goods, ensuring that they comply
with the rules of origin in the trade agreement so that you may access the preferential tariffs.
The Customs and Excise Division of the Ministry of Finance and the Economy is responsible for
approving all exports emanating from Trinidad and Tobago.
To export commercial goods, the exporter must hire a customs broker to fill out the required
documentation. Commercial and non-commercial exporters must also perform the following actions:

Fill out a Customs Declaration Form (C82 Form) in four copies, which is provided by your broker;

Submit the C82 Form along with other required documents (see below) to a customs officer at a
Customs and Excise office for signature;

Take the signed C82 Form and the goods to be exported to the Import/Export station from
which the goods are to be exported.
The basic documents required for exporting are as follows:

Invoice showing the price paid locally;

Export licence, for those items that are on the Consolidated List of Licensable Exports below;

Certificate of origin.
22
exporTT Limited
www.exportt.co.tt
The Consolidated List of Licensable Exports
The following items can only be exported with an Export Licence:
1. Coral and other aquatic life found in the country’s marine environment including coral, turtle,
turtle eggs, aquarium fish, fish, molluscs, lobster, shrimp, crabs and other aquatic invertebrates.
2. Works of art, artefacts, and archaeological findings.
3. Clays, crushed limestone, boulders, sand, gravel, plastering sand, porcellanite, argillite, oil sand.
4. All plant species including tissue culture and other propagation material of these that are listed
in the Convention on International Trade in Endangered Species of Wild Flora and Fauna (CITES).
5. Embryos and artificial insemination material.
6. All animal species listed in the CITES, as well as all endangered species of Trinidad and Tobago,
whether live specimens, their parts, or derivatives, that is mammals, birds, reptiles, amphibians,
fish or invertebrate.
7. Non-Ferrous Metal Scrap and Ores.
8. Human Organs.
9. Explosives, firearms, ammunition and ordnance.
10. Items which are subsidised either directly or indirectly – rice, gasoline, kerosene, liquid
petroleum gas.
11. Electro-medical or medical or medical electronic equipment.
12. Duty-free capital goods e.g. mining, construction and other industrial machinery.
13. Agricultural machinery including imported fishing boats and their engines.
(Source: The Ministry of Finance & the Economy’s website: www.finance.gov.tt)
According to the World Bank’s “Doing Business 2013” series, “Economy Profile: Trinidad and Tobago”,
the average time for exporting a standard shipment of goods from Trinidad and Tobago is 11 days at an
average cost of US$843 per 20-foot container and requires in general five documents. These documents
include a bill of lading, a CARICOM invoice or Certificate of Origin, a commercial invoice, customs export
declaration form (Form C82) and a packing list. Average costs and times for export procedures are as
follows:

Documents preparation: US$253 over 5 days

Customs clearance and technical control: US$205 over 1 day

Ports and terminal handling: US$160 over 2 days

Inland transportation and handling: US$225 over 3 days
23
exporTT Limited
www.exportt.co.tt

The total average time and costs for these procedures is $843 over 11 days.
The report also indicated that Trinidad and Tobago had reduced the time to export by its recent launch
of the AYSCUDA World electronic data interchange system and simplifying the process for obtaining a
certificate of origin.
IMPORTING INTO THE DOMINICAN REPUBLIC: GENERAL TIMEFRAMES AND COSTS
The Dominican Republic has made trading across borders easier since 2008 by reducing documentation
requirements, making improvements in the area of the online portal, risk-based inspections and banking
sector to decrease export and import time.
According to the World Bank’s “Doing Business 2013” series, “Economy Profile: Dominican Republic”,
the average time for importing a standard shipment of goods into the Dominican Republic is 10 days at
an average cost of $1,150 per 20-foot container and requires seven documents. These documents
include a bill of lading, a cargo release order, a certificate of origin, a commercial invoice, a customs
import declaration (Declaracion Unica Aduanera), a packing list and terminal handling receipts. Average
costs and times for procedures are as follows:

Documents preparation: US$240 over 5 days

Customs clearance and technical control: US$200 over 2 days

Ports and terminal handling: US$410 over 2 days

Inland transportation and handling: US$300 over 1 day

The total average time and costs for these procedures is $1,150 over 10 days.
OTHER IMPORT REQUIREMENTS
In some cases, such as for chemical and pharmaceutical products, import licences are required.
Furthermore, certain permits are required for the import of agricultural products. Some of these
products, like rice, sugar, corn, onions, garlic and chicken parts, are subject to import quotas. A consular
invoice that approves the transaction usually must accompany all imports. The cost of this invoice
depends on the value of the goods imported into the country and may be obtained at the Dominican
consulate closest to the port of loading.
24
exporTT Limited
www.exportt.co.tt
All products and brands must be registered in the market; however, the brand must be registered
before the product, as follows:

45 days: brand registration;

3 months: food and beverage registration;

1 year: chemical registration (including personal care, cleaning products and pharmaceuticals).
All registration documents must be translated into Spanish.
Import licences are required for food products. With respect to new food products, the first step for an
exporter’s representative in the Dominican Republic is product registration with the Ministry of Public
Health. A certificate is issued to the importer or local legal representative with a sanitation registration
number, which must be printed on the label of the product or as an additional sticker. The fees for
animal products are as follows: US$55 for a zoo permit per category (or twice that amount if two
categories are contained within a permit request) and an additional RD$2,000 for the second part of the
permit. For plant products, the fees are as follows: US$55.55 and an additional RD$2,000 for the second
part. In order to register, the following documents are required:

Certificate of free sale;

Certificate of origin;

Label indicating qualitative and quantitative formulation;

Copy of the letter of assignment or contract with a local agent (if one exists);

Registration fees and product samples.
The trademark must also be registered through the National Office of Intellectual Property of the
Ministry of Industry and Commerce. This is not a legal requirement but it provides protection for the
owner.
To release shipments valued over US$100, Customs requires:

Bill of Lading;

Commercial invoice;

Insurance certificate (issued by a local insurance company);

Non-objection certificate issued by the Ministry of Agriculture;

Import permit issued by the Department of Internal Taxes for alcoholic beverages only.
25
exporTT Limited
www.exportt.co.tt
After 10 days in port, shipping lines assess a daily charge for the use of their containers. Port authorities
also charge for the use of their space.
The Dominican Republic offers two types of expedited customs clearance procedures:

Advance Declaration requires the submission of documents 25 days in advance of the
shipment’s arrival;

Express Despatch includes declaration of shipment information in advance and verification of
the shipment at the importer’s warehouse.
Shipments not cleared using one of the above expedited procedures must be declared for consumption
or for storage within four working days after the vessel has arrived. Clearance generally takes about
three days once complete documentation is submitted. Automated Customs System (SIGA) now
operates in certain ports where pre-clearance of shipments can be obtained electronically. Under the
new system, importers can register the shipment, submit the documentation, verify the shipment and
pay taxes before shipment arrival.
To summarise the import procedures (this generally takes 3-5 days but may take as long as 20 days in
some instances):

The importer contacts a customs agent or broker, since according to the General Customs Law,
the customs agent is the person authorised by the Customs Department to provide customs
services;

The customs agent fills out a “merchandise product list” on form 3480, if there are more than
nine items, an additional form 3480a is added;

The importer provides the customs agent with the following documents: commercial invoice, bill
of lading or airway bill depending on the transportation means, certificate of origin and copy of
the importer’s identification documents (passport, cedula or legal identification in the case of a
business entity) to request custom verification;

Custom verification: an inspector, a verifier and a supervisor as well as the customs agent
perform the actual inspection;

The customs agent classified the imported product list and determines the type of no-objection
certificate (zoo, phytosanitary, etc.) if any, are required. There is a fee for verifying SEA
documentation;
26
exporTT Limited
www.exportt.co.tt

Once the necessary permits have been processed and inspected, the customs agent submits the
documentation to the Customs Office for duty payment;

Payment is made;

Shipping agents require a deposit from the customs agent paid to Despacho Portuario
Hispaniola to ensure containers are returned to port within seven days;

Port Authority Service Charge is paid for port services (based on the BL, there is a service charge,
which is between RD$700-1,200 per container);

Finally, an additional service charge is paid to the Customs Department of US$100 for a 40-foot
container or half for a 20-foot container;

Port Authorities release the product.
There are other licences required for the representatives handling the importing aspect of the
transaction. Importers must register with the Central Bank (Banco Central) as importers or
representatives. Importers will receive a receipt of payment and the process should take around 20 days
to complete. They should also register with the Registro Nacional de Contribuyentes (National Register
of Contributors), which provides importers with a tax identification number. Importers of alcoholic
beverages also must register with the Department of Internal Taxes.
Additionally, commercial pesticides must be registered at the Pesticide Registration Unit at the Plant
Health Department, Secretary of Agriculture. The procedure may be done as a representative (no
warehouse) or as a distributor (warehouse and technical personnel). A representation company must
register a fee (US$348) with an appropriate form (documents include copies of the company’s legal
constitutional credentials, commercial name registration from the Ministry of Industry and Commerce,
the represented company information, affidavit and its legal representative information) and then
register the products individually for a five-year term. This procedure requires 1-6 weeks. After the
company has been registered, each product file has to be deposited for a five-year period for a product
fee of US$139 and half of this amount thereafter for the renewal of a five-year term. The product
registration fee with all the appropriate documentation in place takes 3-6 months to process. All
products require laboratory testing.
(Sources: TTB.gov, Alcohol and Tobacco Tax Trade Bureau, USDA GAIN Report, Gistnet.com)
27
exporTT Limited
www.exportt.co.tt
TRANSLATION SERVICES
Commercial documents provided by the exporters or their representatives are often required in Spanish
or, at the very least, must be accompanied by an official Spanish translation. One of the official
translation and interpreting agencies for the Government is COSTAAT (College of Science, Technology &
Applied Arts of Trinidad and Tobago).
When translating documents from English to Spanish, the cost for general correspondence is TT$150 +
VAT per page while the cost of technical correspondence (e.g. invoices, commercial documents, reports,
product descriptions, etc.) is normally TT$175 + VAT per page. One page is generally considered to
contain a maximum of 200 words. Should exporters wish to obtain soft copies of documents generated,
an additional 10% fee on the total cost will apply.
(Source: Translation & Interpreting Services, COSTAATT)
SHIPPING INFORMATION
Goods may be shipped from Port of Spain to Rio Haina, Dominican Republic in 6 - 8 days via Kingston. It
takes between 8-11 days from Port of Spain to Caucedo, Dominican Republic via Kingston and 9-11 days
if transhipped via Cartagena, Colombia. When shipping from Point Lisas to Caucedo via Kingston, the
average shipping duration is 10 days.
It should be noted that schedules are subject to change and the cost of shipping often fluctuates
alongside the price of oil.
28