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MARKET SURVEY FINDINGS

DOMINICAN REPUBLIC

Presented By: Vincent RamlochanDate: 6th May, 2016

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Economic Environment Political Environment Trading Environment Traditional vs Modern Trade Market Entry Strategy Brand and Trademark Registration Ports and Taxes Challenges Questions

OVERVIEW

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DOMINICAN REPUBLICS ’S ECONOMIC OVERVIEW

GDP PER CAPITA (USD) $14,900 (2015 est.)

POPULATION Total: 10,478,756 (July 2015 est.)Santo Domingo: 2.945 million

GDP BY SECTOR Agriculture: 5.6%Industry: 31.4%Services: 63% (2015 est.)

UNEMPLOYMENT 14% (2015 est.)

POPULATION BELOW POVERTY LINE

41.1% (2013 est.)

INFLATION 0.7% (2015 est.)

LABOUR FORCE 4.93 million (2015 est.)

EXCHANGE RATE $1US = 45.02 peso (2015 est.)

T&T POPULATION1.2 million

T&T PER CAPITA32,100

2013 2014 20151200013000140001500016000

1320014200

14900

Dominican Republic's GDP Per Capita 2013-2015

GDP Per Capita

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POLITICAL ENVIRONMENT General Elections- 15th May, 2016 Modification to the 2010 constitution Leading Parties in the elections are as follows:

Dominican Liberation Party- Danilo Medina*** Modern Revolutionary Party- Luis Abinader Alianza País (ALPAÍS)- Guillermo Moreno García

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TRADE AGREEMENTS

CARICOM-DR agreement signed on August, 1988.

T&T exporters will benefits from preferential treatment/ duty free access into the Dominican Republic

EPA- Source raw materials for exports to Europe

Regional Preference Clause (Article 237)

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T&T TOTAL NON-ENERGY EXPORTS IN 2015

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TRADING ENVIRONMENT-OVERVIEW

• In the 2016 Ease of Doing Business Rankings, Dominican Republic ranked 93rd

• Dominican Republic’s total non-energy imports for 2014 valued US$ 14,873,406,000

• Haiti’s total non-energy imports experienced positive growth of approximately 20% in 2015 when compared to 2011

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TRADITIONAL VS MODERN RETAILING

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GROCERY RETAILERS IN THE DOMINICAN REPUBLIC

Traditional Grocery Retailers VS Modern Grocery RetailersTraditional Grocery Retailing Modern Grocery Retailing Lower income consumers Upper income consumers

Great Number of Outlets (convenience)

Located in major cities

Small Size Larger size (wider aisles and cold storage)

Limited Product Assortment (daily consumption products)

Wider product assortment

Stock local products Domestic and imported productsGrocery and non-grocery items

Colmados, Independent small grocers, Food/drink/tobacco specialist

Supermarkets, Hypermarkets, Discounters, Convenience stores

Additional Services: Free home delivery, Store credit

Loyalty cards to earn points

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GROCERY RETAILERS IN THE DOMINICAN REPUBLIC

Leading Grocery Retailers Ramos Business Group (Grupo Ramos) -10%

La Sirena Supermercado Pola Aprezio

Centro Cuesta Nacional (CCN)- 8% Jumbo Jumbo Express Supermercado Nacional

Other Major Retailers Carrefour, Supermercados Bravo, Mercatodo, Plaza Lama etc

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NUMBER OF SUPERMARKETS (SIZE AND OWNERSHIP)

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SUPERMERCADOS

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COLMADOS

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HARDWARE STORES Almacenes Unidos Ferreteria Americana

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MARKET ENTRY STRATEGIES Using a distributor

Private Labelling/ Store Brands

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PRIVATE LABELLING

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BRAND AND TRADEMARK REGISTRATION

In Dominican Republic the Brand and Trademark is registered not the product.

Ideally the exporter should register the brand and trademark

Cost of registration is US$130 for a 10 year period

The process takes approximately 3 months

Tutorial www.formalizate.gob.do

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PORTS AND TAXES • Value Added Tax (ITBIS) -18%• Luxury Tax- 15-60%• Customs Charge of $100 per container• **Tariff• Handling Fees (if using a broker)

Other Charges• Terminal handling charge $100-

$200• Local discharge $75• Trucking is Unionized in DR :

• 12000RD from Caucedo• 8000RD from Rio Haina

•

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SHIPPING DOCUMENTS Original CARICOM Invoice Certificate of Origin Packing List Fumigation Certificate*** Bill of Lading Licenses, permits, and other governmental authorizations required for

specific products.

*** It takes 48 hours to clear a container in the Dominican Republic

****A company has up to 10 days to declare what is in the container before you incur charges and 6 months to remove it from the port

****Inaccurate, late, and false declarations are subject to fines and other penalties.***

*****Use of Customs Brokers is not legally required, but recommendable

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CHALLENGES Positive Perception of US Brands

Price Sensitivity

Perception of Law 173

Language Barrier

Luxury Tax

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T&T’s PRESENCE IN THE DOMINICAN REPUBLIC

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THANK YOU