Dominican Republic Declares Bean Shortfall and Reduces Safeguard Tariff

U.S. dry bean exports to the Dominican Republic (DR) have hit and exceeded the CAFTA/DR TRQ for dry beans. Up to 15,280 MT of U.S. origin dry beans can enter the DR duty free under the current TRQ for 2018. After the TRQ is filled, the next 19,000 MT come in at an over quota tariff rate of 11.8%, once the import licenses reach 35,000MT, a safeguard is triggered and a tariff of 50.4% is applied to all U.S. dry bean imports over that amount. These numbers adjust every year until 2020 when all US beans come in to DR duty free.

U.S. dry bean exports to the DR through June 2018

On August 7, the DR Commission on Agricultural Imports declared a shortfall of beans and ordered an auction to issue permits for the import of 10,000 MT of pinto beans and 5,000 MT of black beans from eligible origins. Those beans can enter the country with a 25% tariff and must be imported by December 31, 2018, despite the safeguard trigger. The US has a competitive advantage due to proximity and relationships, but the beans may be imported from other origins as well.

USDBC has heard that there are some concerns about the lack of clarity in the administration of the over TRQ quota licenses. This is being addressed by the new DR Minister of Agriculture and monitored by USDBC as well. For information on the auction of licenses for the import of 15,000 additional MT of beans at a preferential tariff rate, please contact USDBC.

DR TRQ Schedule through 2020