What is the rate of custom duties in the Dominican Republic and how are they calculated?
The basic rate of custom duties ranges between 0.3%, 8%, 14% and 20%. Law 146-00 of 27 December 2000 reduced the top 35% existing before. This law provides also for the application of Article VII of the GATT as method of valuation of merchandises from July 2001 on, date on which the Dominican Republic is committed to start applying these rules. 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.
