Dominican Republic: The DR to Halt Implementation of Traceability System for Imported Alcoholic Beverages Until 2023

On September 29, 2021, the General Directorate of Internal Tax (DGII) of the Dominican Republic (DR) issued Regulation 07-21 implementing the Fiscal Control and Traceability System for Alcoholic Beverages and Cigars (TRAFICO) to tackle illicit trade and tax evasion in the alcoholic beverage and cigarette sectors. However, U.S. exporters, foreign governments and local institutions have expressed deep concerns due to the additional costs and logistical challenges with complying with the new regulation. In response, the Dominican authorities have agreed to extend the implementation date for exporters to June 2023 and exclude beer from the regulation.