Dominican Republic: Customs valuation to include royalties; tariff-free treatment for agricultural items

Dominican Republic: Customs valuation include royalties

Dominican Customs has implemented a new methodology for calculating customs value—one that includes royalties paid abroad, specifically when the import of goods is made under a distribution agreement or between related companies.

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The method for modifying the customs valuation of goods includes:

  • In accordance with “best customs practices,” information contained in the single customs declaration will be evaluated along with the withholding tax return (Form IR-17), specifically concerning the payments made abroad.
  • The, the import is assessed by Dominican Customs specifically to include the value of royalties with the cost, insurance, and freight of the merchandise.
  • The next step is that the imported merchandise is revalued, and taxes and custom tariffs are re-settled.

Thus far, Dominican Customs has not yet applied surcharges for late payments or interest regard the redetermination of the tax liability owed.


Read a February 2020 report [PDF 193 KB] prepared by the KPMG member firm in the Dominican Republic

Tariff-free treatment for certain agricultural, food items

Beginning in 2020, certain agricultural goods are allowed tariff-free treatment. Provisions of the Dominican Republic-Central America Free Trade Agreement (DR-CAFTA) that are generally effective beginning in 2020 provide for the customs exemption for certain agricultural products. The subject products eligible for customs duty-free treatment under the DR-CAFTA exemption include:

  • Garlic
  • Husked and semi-bleached rice
  • Bananas
  • Sweet potatoes
  • Beef and beef garnishes
  • Onion and shallots
  • Pork cuts and sausages
  • Beans
  • Wheat flour
  • Powdered milk
  • Corn
  • Chicken drumsticks and chicken breasts
  • Cheddar cheese, mozzarella cheese
  • Yogurt
  • Cassava


Read a February 2020 report [PDF 183 KB] prepared by the KPMG member firm in the Dominican Republic

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