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Research by Country/Region January 18, 2018  
DOMINICAN REPUBLIC: CUSTOMS, TAXES, and DOCUMENTATION REQUIREMENTS: IT PRODUCTS and SERVICES IMPORTS

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A. Is this country a member of the Information Technology Agreement?

B. Customs documentation requirements for IT products

C. Software: duties and taxes, updates, licenses, electronically delivered

D. IT services: tax treatment and other regulations

E. Refurbished, used, or repaired computer equipment imports


A. IS THIS COUNTRY A MEMBER OF THE INFORMATION TECHNOLOGY AGREEMENT?
NO
Signatories to the Information Technology Agreement (ITA) have eliminated their import duties on a wide range of information technology products, including software and computer hardware. For more information on the ITA, and exact tariff elimination schedules of signatories, click here.
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B. CUSTOMS DOCUMENTATION REQUIREMENTS FOR IT PRODUCTS

What are the documentation requirements for the physical import of software? For other information technology products?
All imports to the Dominican Republic require a consular invoice from a Dominican Consulate approving the transaction. The exception applies to shipments from countries where there is no Dominican Consulate. In these cases, the importer pays at Customs a fixed US$400 Customs fine. Customs authorities also require the Commercial Invoice of the imported merchandise.
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C. SOFTWARE: DUTIES and TAXES, UPDATES, LICENSES, ELECTRONICALLY DELIVERED

DUTIES AND TAXES ON SOFTWARE IMPORTS

Are duties assessed on the intellectual property of the software or on the medium on which is it presented?
Import duties are assessed on the medium on which the software is presented.

Customs Duties are based on the CIF (Cost + Insurance + Freight) value of the imported merchandise. The CIF cost is calculated based on the cost of the merchandise as shown in the Commercial Invoice plus a 2% for insurance, plus 16% for Freight. To ensure that duties are assessed only on the medium, U.S. exporters should create a separate line item on their invoice to show clearly the value of the software's underlying medium distinct from the value of the intellectual property.

The import duty on software is 20% of the CIF price, unless it is devoted to pre-university education. If this is the case, the software will not pay any duties.

In the Dominican Republic all import duties and taxes (the 4.75% Exchange Surcharge, and the 12% sales or ITBIS tax) levied on imported merchandise are paid at Customs at the port of entry.

Are taxes assessed on the intellectual property of the software or on the medium on which is it presented?
All products imported into the Dominican Republic are subject to two taxes besides the Import duty: a 4.75% Exchange Surcharge, and a 12% ITBIS (a sales tax). The Customs authorities collect all these taxes. In the Dominican Republic these taxes are assessed on the medium on which the software is presented.

Is customized software treated differently than packaged software?
Both customized and packaged software receive the same treatment at Dominican Customs.
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IMPORTS OF SOFTWARE UPDATES

What are the customs duties and tax implications for software sold with updates when the full sales price, including cost of updates, is shown on the original commercial invoice? Are duties and taxes paid on that amount? What happens when the updates are sent at a later date? Are duties/taxes applied again? If so, based on what value? How should information presented on the commercial invoice for the original and subsequent shipments to avoid paying duties/taxes more than once on a single sale?
When an update is sent at a later date, the Commercial Invoice should only reflect the cost of the update to avoid paying duties more than once.
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SOFTWARE LICENSES: CUSTOMS CLASSIFICATION, IMPORT DUTIES, TAXES, OTHER

Are software licenses classified in Harmonized System 4907?
No, software licenses are not included in the HS 4907. They are included in the HS 8524.

Are import duties/taxes applied? If so, on what cost/price base are they levied?
There are no import duties nor taxes levied to software licenses in the Dominican Republic.

Are withholding or other additional taxes applied on software licenses? If yes, how?
N/A

If a U.S. license agreement is included in the packaging or is part of the installation/registration of shrink-wrapped software imported from the United States, would that agreement be binding on consumers in your market? If so, would U.S. or local laws pertain?
Yes, agreements included in the “shrink wrapped” software are valid in the Dominican Republic as per Law 75-00 (Art. 75) on Copyrights.
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SOFTWARE DELIVERED OVER THE INTERNET/ELECTRONICALLY DELIVERED SOFTWARE

Are taxes applied to software delivered to the end-user over the Internet? If so, on what value?
No, there are no taxes for over-the-Internet purchases.

What are the documentation requirements for the electronically delivered import of digitized products (i.e. software, movie downloads) over the Internet or other networks?
None because there are no local taxes on these products.

Must an electronically delivered software import be accompanied by a physical shipment of the same product?
No.
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D. IT SERVICES: TAX TREATMENT AND OTHER REGULATIONS

Are services (i.e. training, set-up, etc) relating to the sale of software taxed? If so, at what rate and based on what value?
Yes, according to the local Tax Code (Art. 305), in the Dominican Republic services rendered by a foreign firm are subject to a withholding tax of 25%.

Are U.S. IT solution providers permitted to send personnel into the country to set up hardware/software-related systems?
Service providers are allowed to send personnel into the country to set up hardware and software related systems.

Are special visa, work permits, and/or professional certification by an accredited body required?
If the personnel are American citizens, they may enter the country for a period of 60 days, upon the purchase of a “Tourist Card.” The “Tourist Card” has a price of US$10 and is available at all the arrival ports of the Dominican Republic. If the set-up contract requires that the personnel stays more than 60 days, they would have to request a “Business Visa” at any Dominican Consulate.
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E. REFURBISHED, USED, OR REPAIRED COMPUTER EQUIPMENT IMPORTS

1. REFURBISHED COMPUTER EQUIPMENT
Is the import of refurbished computer hardware, parts, and accessories (including toner cartridges) permitted?
Yes, in the Dominican Republic the importation of used and refurbished computer hardware, parts, and accessories are allowed.

If so, what are the documentation requirements?
The required documentation is the same as for a new product (Consular Invoice and Commercial Invoice).

Is special labeling required?
No special labeling is required.

What value should be shown on the invoice?
The value that must shown on the Commercial Invoice is the actual value of the used/refurbished product.

How are duties and taxes assessed?
Duties and taxes are assessed the same way as new products. Products under HS 8471 (Computers and Peripherals) are exempted from import duties and sales tax (ITBIS). When these products are imported into the country they are only subject to a 4.75% Exchange Surcharge which is paid at Customs. The Exchange Surcharge is applied to the total C.I.F value of the merchandise.
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2. USED COMPUTER EQUIPMENT
Is the import of used computer hardware, parts, and accessories (including toner cartridges) permitted?
Answers are the same as for refurbished computer equipment. See answers in section E.1. above.
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3. REPAIRED COMPUTER EQUIPMENT
Are duties and taxes assessed on the re-import of repaired computer equipment?
When an imported product is defective, before it is sent back to the country of origin, the transaction must receive the approval of the Customs Department. This is done by filling out the Form 133 at the Customs Office of the port of exit. The owner of the product keeps the original of the approved form and sends a copy with the product. When the equipment is re-imported it should include the copy of the Form 133 and a Commercial Invoice that indicates the costs related to the repairing of the equipment (labor, parts).

How should the commercial invoice appear?
If the equipment was repaired under the product guarantee and it did not require an additional cost, the Commercial Invoice should indicate so. Import duties are going to be paid only when there was a cost related to the repairing of the equipment.
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RESPONSE INFORMATION

This response was prepared by the U.S. Department of Commerce/Commercial Service in Santo Domingo in February 2003. For further clarification please contact:
Isolda Frias
Commercial Specialist
U.S. Embassy, Santo Domingo
isolda.frias@mail.doc.gov

Special Notes: The above information is intended to serve only as unofficial guidance. In seeking to obtain government rulings in specific cases, it will often be necessary to refer to special laws, separate regulations and announcements, and case-by-case decisions by the government. Beyond the general guidelines shown above, legal counsel should be retained at an early stage of consummation of a major procurement contract, and before entering into any legal commitments.

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