CAFTA-DR Rules of Origin Explained for Manufacturers

The Three Rule Types

Tariff Shift: The product’s HTS classification must change at the chapter, heading, or subheading level as a result of manufacturing in the DR. Most common rule type. Regional Value Content (RVC): A minimum percentage of the product’s value must originate in CAFTA-DR countries — typically 35–45% of transaction value. Specific Process: Defined manufacturing steps must occur in a CAFTA-DR signatory country. Common in medical devices and chemicals.

Application to Dominican Republic Free Zones

DR free zone status does not automatically confer CAFTA-DR eligibility. The manufacturing process itself must satisfy the applicable rule for the product’s HTS code. Companies operating in the Caribbean Corridor structure supply chains to meet the applicable rule — importing inputs into the DR free zone duty-free, performing required transformation, and exporting finished goods with a properly documented certificate of origin.

Documentation

The certifying party must retain records supporting the origin claim for five years: bill of materials with input HTS codes and origins, supplier certifications, production records, and cost records for RVC calculations. CBP may audit any entry claiming CAFTA-DR preference. For the full guide see CAFTA-DR duty-free manufacturing guide. To assess your product’s rule of origin, contact EGS.