Dominican Republic: Three Years of Intense Efforts Leads to Exemption for US Alcoholic Beverages from Tax Stamp -TRAFICO- Regulation in the Dominican Republic

On February 5, 2025, the Dominican Republic amended its Fiscal Control and Traceability System for Alcoholic Beverages and Cigars (TRAFICO), marking a significant victory for the U.S. alcoholic beverage industry. The amendment exempts importers of U.S. origin products from the burdensome system, which imposed additional costs and logistical challenges, ensuring continued competitiveness in the Dominican market. This success comes after extensive efforts by the United States Department of Agriculture’s Foreign Agricultural Service (USDA/FAS), other U.S. government agencies, and industry stakeholders, who worked together through bilateral engagements and the World Trade Organization (WTO) to address concerns about the regulation’s impact. Post estimates that the exemption safeguards between $1.6–3.3 million in U.S. exports, supporting the ongoing prosperity of the industry in one of its largest markets in the Western Hemisphere and within the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR).