Dominican Republic faces $1 billion tariff evasion via Haiti

The Dominican Republic is facing significant economic challenges due to the smuggling of mislabeled or unregistered products through Haiti. Business representative Cirse Almánzar reports that approximately 930 trucks per month are involved in transporting goods from countries such as India, Turkey, and China. These products are reportedly relabeled during transshipment at border crossings to bypass sanitary registrations and high tariffs.

This activity is estimated to result in tariff evasion totaling approximately US$1 billion. The smuggling operation exploits security instability in Haiti, utilizing border warehouses to transfer large shipments into smaller vehicles for distribution throughout Dominican supermarkets and businesses. This influx of mass-produced foreign goods threatens to erode local Dominican production.

In contrast to these smuggling concerns, official trade data shows that Dominican exports to Haiti grew by 19.85 percent through July. This growth was driven primarily by the national regime, which saw a 36.5 percent increase in sales, including products like iron/steel bars, hydraulic cement, and wheat flour. Meanwhile, Dominican imports from Haiti totaled $61 million in the first seven months of the year, marking an 86.85 percent decrease compared to the previous period.