Customs increases collections and decreases administrative costs

From January to April 2021 they have collected a total of RD$53,570.20 million.

Customs director general Eduardo Sanz Lovatón reported that the entity is collecting more and spending less, thanks to internal efficiency measures and greater dynamism in the Dominican economy.

He exposed that between January and April 2021 they have collected a total of RD$53,570.20 million, which represents RD$12,797.45 million additional to the goals originally established by the Ministry of Finance, with a compliance level of 131.39 percent.

These figures are 37.7% more than in the same period of 2020, when RD$38,906.3 million was collected. While when calculating this data eliminating the effect of the COVID-19 pandemic, the increase is 11.4 %.

He highlighted that the collections in dollars in the first four months of the year were equivalent to US$925.54 million, an increase of 27.7%, eliminating the exchange rate effect. Sanz Lovatón pointed out that in the first eight months of management, savings of RD$163,580,987 have been achieved, due to an efficient control of institutional expenditure.

The director indicated that the greatest efficiencies have been in the contracting of services, reduction of representation expenses, rationalization of fuel expenses, elimination of the use of bonds for various purposes, among others.

Economic recovery.

Sanz Lovatón emphasized that the Dominican economy is reactivating and that this dynamism is thanks to the confidence generated by President Luis Abinader and his economic team, as well as the efforts to optimize the administrative processes of the General Directorate of Customs.

He emphasized that this is a good moment to invest in the country, since the productive activity has been reactivated.

According to statistics for January-April of this year, collections for imported raw materials increased by 45.26%, contributing 10.15% to the total growth. While collections for consumer goods increased by 38.2 % and for capital goods by 20.8 %.

In addition, the main taxes have grown at very similar rates, between 35 and 37 %.
The General Director of Customs explained that so far this year the effective tax rate for 2019, 15.93%, is being reached. Right now it is at 15.90%.

It is also increasing the 2019 state revenue share from the DGA from 21.8% total and is now at 20.1%.

An institution in transformation. Sanz Lovatón assured that the institution he heads is committed to building a “New Customs”, supported by the best technologies to have greater control over its operations, streamline processes and provide better service to users.

Currently, the DGA is undergoing a transformation process to make the Dominican Republic become the logistics hub of the region, leveraging competitive advantages such as its privileged geographical location and the infrastructure of its roads, ports and airports.

For this reason, the DGA has also set the ambitious goal of clearing in 24 hours or less all commercial merchandise that qualifies, as is done in the most efficient customs in the world.

He explained that the DGA is committed to the use of non-intrusive technology to verify merchandise. That is why X-ray machines have been installed in the ports of Haina and Caucedo. Both ports handle 70% of the country’s imports.

The DGA is committed to the development of logistics centers. There are four in the country and 27 certified Logistics Operating Companies (EOL) that handle the entire inventory of some free trade zones, from raw materials to finished products.

In this line, the country went from exporting US$56.14 million in 2018 to US$264.85 million, increasing almost four times to the 2018 value (371.8%).
And in 2020, despite the pandemic, an increase of 60% was experienced, in relation to the values exported in 2019.

Customs Law. Sanz Lovatón highlighted that the entity is working on the revision and updating of the draft Customs Law, since the current one is more than 67 years old and does not adjust to the changing trade in which we currently live.

He explained that with this they seek to modernize the legal system, make the customs legislation more internationally compatible, establish a new system of sanctions, include customs regimes and make it compatible with the country’s commitments in the trade facilitation agreement.

He added that work has also begun on updating the Tariff Code 2020, to place the DR among the first countries to be at the forefront in this area.

THE FIGURES

RD$163.6
Million is the figure for administrative savings of the General Directorate of Customs in the period August-March 2021.

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