Local January 2, 2024 | 12:36 pm

Dominican Republic’s automotive industry sees significant growth and supports regulatory decree

Santo Domingo.- The United Group of the Automotive Industry of the Dominican Republic (GUIA-RD) reported that the automotive sector concluded 2023 with over 130,000 imported new and used vehicles. This marks an annual growth of 11% over the past decade, significantly outpacing the general economy’s GDP growth of 5% in the same period.

GUIA-RD expressed support for the recently issued decree 420-23, which establishes regulations for the National Registry of Motor Vehicles, Trailers, Licenses for Dealers, Distributors, and Sellers, and the Classification of License Plates. Wendy Capellán, the executive director of GUÍA-RD, emphasized that this decree is instrumental in modernizing processes in line with the rapid growth of the vehicle fleet.

The regulation, having undergone two public hearings by the General Directorate of Internal Taxes (DGII) and the Legal Consultancy of the Executive Branch (CJPE), received inputs from various associations and institutions. It aligns with Law 63-17 on Mobility, Land Transportation, Transit, and Road Safety, aiming to enhance consumer protection and regulate vehicle importation.

Capellán highlighted that the regulation will help combat irregular practices, such as importing vehicles with altered odometers, right-hand drive cars converted to left-hand drive, and salvage cars prohibited in their country of origin due to accidents or disasters. This measure also targets vehicles with falsified documents, ensuring user safety and environmental protection in compliance with existing laws.

GUIA-RD supports the update of the General Standard on Transfers and Endorsements in the Transfers of New and Used Motor Vehicles (Standard 06-2013). The proposed revisions would maintain the standard’s essence while aligning with reliable payment proof requirements set by General Standard 06-2022. This update aims to eradicate tax evasion and comply with the Law 155-17 Against Money Laundering and Terrorism Financing, adhering to international agreements signed by the Dominican Republic.

The DGII has implemented several measures benefiting the sector, including the establishment of Motor Vehicle Service Centers, provisional electronic license plates, and the consensual issuance of Motor Vehicle Regulations. These initiatives save taxpayer time, improve quality, and create taxpayer facilities.

In conclusion, Capellán reiterates GUIA-RD’s strong support for the DGII’s efforts in promoting law compliance, fair competition, improving the vehicle fleet’s quality, and safeguarding consumer rights, in accordance with the Dominican Republic’s Constitution.

0 0 votes
Article Rating
Notify of

Newest Most Voted
Inline Feedbacks
View all comments
Mr. Sensible
January 3, 2024 9:29 am

18 cars checked over the past 6 months. 3 had major damage reported, but oddly enough, not on the Carfax I was shown by the dealer.
16 had mileages rolled back over 100,000 miles less than when in the US 3 to 5 years ago. This whole market is rotten to the core.

The only option is to buy new.

Paul Tierney
January 4, 2024 7:53 am

The government should in all honesty sit back and examine its ability to sustain its road infrastructure for the total amount of vehicles within the country. The road chaos of Santo Domingo is a barometer of no real measures in place for traffic reduction. The country’s urban areas are becoming a car blivit, two pounds of s*** in a one pound bag. Should there be quotas of car imports? More cars provoke more traffic chaos. More cars mean more dependence on imported fuel and a need for dollars to pay for the fuel. Should more roads be constructed? Should the big cities have restricted car zones?

Growth is fine if it is controlled.

January 4, 2024 6:04 pm
Reply to  Paul Tierney