NewsWhore
10-02-2009, 02:20 PM
The technical report on the import of electrical wires from Costa Rica confirms that Dominican Customs should charge import duties. The DR has a free trade agreement with Central America, but it was determined that these products violate rules of origin set out in DR-CAFTA, the regional free trade agreement. Likewise, the electrical wire producers are located in enterprises that receive special fiscal considerations in Costa Rica.
As reported in Hoy, the former chief of Trade Negotiations for Panama, Leroy Sheffer, said that in order for a product to qualify for tax free status it has to be transformed sufficiently to be re-classified from one customs category to another.
He added that in the case of the electric wires from Costa Rica, in order for them to classify for duty free status, the Central American country would have to demonstrate that the materials or the product were produced in Costa Rica, had been processed or manufactured from completely original materials. Sheffer cites Article 4.05, paragraph d) of the agreement as to what are considered to be original goods:
i) The merchandise manufactured exclusively in territory of the Parts from original products
ii) The merchandise produced in the territories of the parts that incorporate raw materials or non-original products that result from a process of transformation that gives them a new identity
To ensure that there is no doubt in the case, Sheffer said that for the electric wires from Costa Rica to qualify for special duty-free status under DR-CAFTA, the copper used in the wiring has to come from Costa Rica or the Dominican Republic and in this case it comes from Chile. Thus, they do not comply with the requisite of origin.
More... (http://www.dr1.com/index.html#10)
As reported in Hoy, the former chief of Trade Negotiations for Panama, Leroy Sheffer, said that in order for a product to qualify for tax free status it has to be transformed sufficiently to be re-classified from one customs category to another.
He added that in the case of the electric wires from Costa Rica, in order for them to classify for duty free status, the Central American country would have to demonstrate that the materials or the product were produced in Costa Rica, had been processed or manufactured from completely original materials. Sheffer cites Article 4.05, paragraph d) of the agreement as to what are considered to be original goods:
i) The merchandise manufactured exclusively in territory of the Parts from original products
ii) The merchandise produced in the territories of the parts that incorporate raw materials or non-original products that result from a process of transformation that gives them a new identity
To ensure that there is no doubt in the case, Sheffer said that for the electric wires from Costa Rica to qualify for special duty-free status under DR-CAFTA, the copper used in the wiring has to come from Costa Rica or the Dominican Republic and in this case it comes from Chile. Thus, they do not comply with the requisite of origin.
More... (http://www.dr1.com/index.html#10)