Esco Global Strategies
CAFTA-DR Customs Compliance Guide: What US Importers Must Know
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Claiming CAFTA-DR preferential tariff treatment on Dominican Republic-origin goods is straightforward when properly executed — but the compliance requirements are precise, and errors expose US importers to retroactive duty assessments, interest charges, and potential penalty liability. US Customs and Border Protection (CBP) actively audits CAFTA-DR origin claims through Focused Assessment programs, CF-28 Requests for Information, and CF-29 Notices of Action, particularly for product categories where China has historically dominated US import volumes.
This guide covers the essential US importer compliance requirements for CAFTA-DR claims, the documentation package importers must maintain, and the most common errors CBP identifies in CAFTA-DR audits.
Data Sources: CBP’s most common CAFTA-DR audit finding is insufficient documentation to substantiate the origin claim — not necessarily fraudulent claims, but claims that cannot be verified because the importer failed to obtain and retain adequate supporting records from their Dominican supplier. Prevention requires proactive documentation collection before the first shipment, not after a CBP inquiry arrives.
US Importer CAFTA-DR Compliance Checklist
| Requirement | Standard | Retention Period |
|---|---|---|
| Origin certification | Self-cert by exporter, producer, or importer | 5 years from claim date |
| HTS classification of imported good | 8-digit US HTS at time of import | 5 years |
| Bill of materials with input HTS | All significant inputs classified | 5 years |
| Supplier origin certifications | Written cert from each input supplier | 5 years |
| Production cost records (for RVC) | Cost accounting supporting RVC calc | 5 years |
| ISF (10+2) filing | Filed 24 hrs before vessel departure | Per CBP records |
Claiming CAFTA-DR at US Entry
CAFTA-DR preference is claimed on CBP Form 7501 (Entry Summary) by entering the appropriate Special Program Indicator (SPI) in the “A” column of the tariff line. The SPI for CAFTA-DR is “R” for most CAFTA-DR goods. The importer or their licensed customs broker makes the claim; no government-issued certificate of origin is required. The supporting origin certification and documentation must be available but is not submitted to CBP unless requested.
The Origin Certification Document
CAFTA-DR allows origin certification by the exporter, producer, or importer. The certification is not a government form — it can be a standalone document, a letter, or a statement on a commercial invoice. It must include: the name and contact of the certifier; importer, exporter, and producer information; description and HTS classification; origin criterion (WO, TC, or RVC); the certification statement; and an authorized signature with date. The certification covers one shipment or multiple shipments of identical goods over a period not exceeding 12 months.
Most Common CBP Audit Findings
CBP’s most frequently cited CAFTA-DR compliance deficiencies include: no written origin certification from the DR supplier; origin certifications that are incomplete (missing HTS, origin criterion, or producer information); failure to obtain and retain bill of materials with input HTS classifications; inability to produce supplier origin certifications for input materials; and RVC calculations that cannot be substantiated by cost accounting records. Each of these findings triggers assessment of unpaid duties with interest; willful disregard triggers penalty proceedings.
Working with a Licensed Customs Broker
While US importers may file CAFTA-DR entries without a customs broker, using a licensed broker with documented CAFTA-DR experience is strongly recommended. Brokers familiar with CAFTA-DR origin documentation requirements can: review supplier certifications for completeness before the first shipment; establish standard documentation collection procedures with DR suppliers; identify classification issues that affect origin eligibility before they become CBP findings; and represent the importer in CBP audits and prior disclosure proceedings.
Related Resources
CAFTA-DR Rules of Origin Step-by-Step | CBI History & CAFTA-DR Evolution | IP Protection Under CAFTA-DR | Section 301 & CAFTA-DR Solution
Frequently Asked Questions
What happens if CBP sends a CF-28 (Request for Information) on a CAFTA-DR claim?
A CF-28 is CBP’s request for documentation to verify a CAFTA-DR origin claim. The importer has 30 days to respond. Response must include the origin certification, bill of materials, supplier certifications, and any other supporting records. Failure to respond or an inadequate response results in CBP issuing a CF-29 (Notice of Action) assessing unpaid duties. If additional duties are owed due to an incorrect claim, proactively filing a prior disclosure before CBP detection significantly reduces penalty exposure.
Can a US importer self-certify CAFTA-DR origin without contacting the DR supplier?
Technically yes, but it is operationally inadvisable. A US importer self-certifying origin assumes full liability for accuracy, including knowledge of the DR supplier’s input materials, costs, and production processes. Without documentation obtained from the supplier, the importer cannot realistically substantiate the origin claim in a CBP audit. Best practice is to obtain a written origin certification from the DR exporter or producer supported by their production records, and for the US importer to review and retain this documentation before claiming preference.
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