In 2023, the Dominican Republic imported USD 1.23 billion of passenger vehicles under HS 8703, ranking it among the Caribbean’s leading auto-import markets.
Strong tourism and rising incomes sustain demand for reliable and modern cars. U.S. exporters who master the DR’s 20 % import duty, 18 % ITBIS (VAT), and COFEBASE inspection requirements can capture healthy profit margins.
Key Takeaways
- 2023 import value: USD 1.23 billion in HS 8703 passenger vehicles
- Mandatory documents: Commercial Invoice; Bill of Lading; Customs Declaration; Certificate of Origin; COFEBASE inspection report
- Tariffs & taxes: 20 % import duty; 18 % ITBIS; 3 % processing fee; green levies 0–5 %
- Cost modeling: Build a detailed landed-cost framework to protect 10–15 % margins
- Logistics hubs: Port of Santo Domingo and Port of Haina
Understanding the Dominican Market
The Dominican Republic’s entire vehicle supply is import-based, creating consistent demand for foreign used and new vehicles.
As the middle class expands and tourism recovers, there’s strong market activity in both private vehicle purchases and commercial fleet upgrades.
Japanese, Korean, and American models are especially popular due to their affordability and access to spare parts.
Buyers often seek fuel-efficient sedans and SUVs, but there’s also growing interest in EVs due to environmental initiatives.
Regulations & Compliance
Exporters must navigate DGA customs clearance and COFEBASE safety/emissions inspections:
- Commercial Invoice: Declares transaction value and vehicle details.
- Bill of Lading: Verifies sea transport method.
- Customs Declaration (DIM-03): Initiates duty and tax assessment.
- Certificate of Origin: Confirms manufacturing origin for any preferential rates.
- COFEBASE Inspection Report: Mandatory safety and emissions check.
Tariffs & Taxes
Import duties and taxes in the Dominican Republic can significantly impact the landed cost of each vehicle.
In addition to standard import duty and VAT (ITBIS), there’s a 3% processing fee and a green levy based on engine size or emissions.
These fees are strictly enforced, and misreporting can lead to penalties or delays. It’s important to calculate all costs accurately using the correct tax bases and current DGA tariff schedules.
| Levy | Rate | Base |
| Import Duty | 20 % | CIF |
| ITBIS (VAT) | 18 % | (CIF + Import Duty) |
| Processing Fee | 3 % | (CIF + Import Duty) |
| Green/Carbon Levy | 0–5 % | CIF or engine size–based |
Sources: DGA Import Guide; COFEBASE regulations
To maintain profitability, exporters must account for all duties, fees, and currency risk in their landed-cost models. Vehicle classification can affect green levy rates, so it’s important to have accurate engine specs and emissions data before shipping.
Crafting Your Landed-Cost Model
To maintain profitability, exporters must account for all duties, fees, and currency risk in their landed-cost models. Vehicle classification can affect green levy rates, so it’s important to have accurate engine specs and emissions data before shipping.
| Component | Calculation Basis |
| CIF Cost | FOB Purchase Price + Freight & Insurance |
| Import Duty (20 %) | 0.20 × CIF |
| ITBIS (18 %) | 0.18 × (CIF + Import Duty) |
| Processing Fee (3 %) | 0.03 × (CIF + Import Duty) |
| Green Levy (variable) | Manufacturer’s spec–based rate |
After totaling landed cost, add a 10–15 % markup to cover currency swings and distribution expenses.
Logistics & Shipping Gateways
The Port of Santo Domingo is the main entry point for vehicles, handling both containerized and Ro-Ro cargo efficiently.
Port of Haina serves as a reliable secondary option, especially for consolidated shipments and inland distribution.
Port congestion is rare, but coordinating with experienced freight forwarders can help you avoid delays and secure space during peak shipping seasons.
Ensure all bookings align with COFEBASE inspection schedules to prevent dwell time.
- Port of Santo Domingo: Primary deep-water Ro-Ro and container facility.
- Port of Haina: Secondary hub with cargo consolidation services.
Coordinate with experienced freight forwarders to secure timely Ro-Ro bookings and minimize port dwell.
Financing & Payment Security
Securing payment is critical when exporting to the Dominican Republic, especially for higher-volume or first-time buyers.
Letters of credit offer strong protection and are favored in new trade relationships. For trusted importers, open account terms may speed up transactions but carry more risk.
To safeguard margins, exporters should also consider hedging DOP/USD exposure through FX forward contracts when quoting in local currency.
- Letters of Credit: Provide bank-guaranteed payment.
- Open Account Terms: Favorable for established importers.
- Escrow Services: Hold funds until COFEBASE and DGA clearance.
- FX Forward Contracts: Hedge DOP/USD volatility.
Common Pitfalls to Avoid
| Common Pitfall | Details |
|---|---|
| Mis-calculating Levies | Confirm all duty and tax calculations are correctly based on the CIF value to avoid errors. |
| Skipping COFEBASE Inspection | Without the mandatory inspection report, vehicles will not be cleared for release. |
| Incomplete Documentation | Any mismatches between documents can halt customs processing and delay delivery. |
| Ignoring Green Levies | Overlooking emissions-based surcharges can significantly reduce profit margins. |
Why Auctions Are a Smart Choice for Car Purchases
Auctions can be an excellent source for late-model vehicles with clear chains of title and affordable pricing. Twin Cities Auctions, based in Minnesota, is one such reputable auction house that offers a wide range of vehicles at competitive prices.
Key Benefits of Buying from Auctions:
- Wide Selection: Auctions like Twin Cities Auctions offer a variety of vehicles, from low-budget cars to high-end models.
- Competitive Pricing: Auctions often offer vehicles at prices below retail value, enabling dealers to maximize their profit margins.
- Transparency: Auctions provide full vehicle history reports, so you know exactly what you’re buying.
- Convenient Bidding: Many auctions offer online bidding for your convenience, making it easier to source vehicles without being physically present.
Twin Cities Auctions: A Smart Vehicle Sourcing Choice
For those in the automotive industry, Twin Cities Auctions offers an excellent platform for sourcing quality vehicles at competitive prices.
Whether you are just starting or expanding your business, this auction house provides transparency, competitive pricing, and a broad selection.
| Feature | Description |
| Inventory Variety | Wide range of cars, trucks, and SUVs available |
| Competitive Pricing | Below-market pricing allows for higher profit margins |
| Vehicle History Reports | Detailed history reports for every vehicle |
| Online Bidding | Convenient online bidding options for dealers |
| Financing Options | Financing available to help with inventory purchases |
Conclusion
Exporting cars to the Dominican Republic demands precise cost modeling, strict compliance with DGA and COFEBASE requirements, and optimized logistics via Santo Domingo or Haina ports.
Leveraging transparent U.S. auctions like Twin Cities Auctions further ensures supply depth and document clarity, cornerstones of repeatable export success.
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FAQ
What are the DR’s auto-import duties and taxes?
Import Duty 20 %; ITBIS 18 %; Processing Fee 3 %; plus green levies (0–5 %).
Can I export used cars?
Yes; late-model used vehicles qualify but may incur green levies based on engine specs.
How long does clearance take?
Typically 3–5 business days after document and inspection submission.
Are there vehicle age restrictions?
No formal cap, but older models face higher emissions surcharges and COFEBASE scrutiny.
How do I handle rejected shipments?
Work with your local customs agent to re-export or correct compliance issues; budget for demurrage fees.