Between August 2016 and June 2019, undervaluations of merchandise valued at Dominican ports totaled 17,604.57 million pesos, according to statistics from the General Directorate of Customs (DGA).

Eduardo Rodríguez, an advisor to the DGA who participated in a meeting with members of the American Chamber of Commerce's Trade Facilitation Committee, stated that undervaluation of merchandise accounted for 711% of the total amounts reliquidated in inspections by that entity.

According to Customs estimates, undervaluation of goods in Dominican ports ranges from 5 to more than 200% of the initially declared value.

Rodríguez states that more than 60% of the undervaluations correspond to automobiles, electrical and mechanical equipment, household appliances, furniture, iron and steel products, and ready-made textiles. In the case of alcohol, undervaluation depends on the type of beverage. For example, whiskey's undervaluation ranges from 39 to 122%; wines from 25 to 45%; and tequila to 108%.

In this regard, the expert points out that money laundering through trade poses challenges to customs systems globally and in the region, as it is estimated that around US$1,123.2 trillion is lost through illicit trade worldwide.

Furthermore, Latin America and the Caribbean are vulnerable to illicit trade due to structural issues. According to the Global Illicit Trade Environment Index, it ranks second in government policy and customs environment, but falls to last in the region in terms of supply and demand, transparency, and trade.

He points out that in these countries, criminals take advantage of the differences between different legal systems, the deficiencies in customs controls, the high volume of transactions, and the regularity and speed of international trade.

Typically, these criminals' modus operandi consists of paying a supplier through unrelated third parties, overvaluing or undervaluing merchandise, marketing products that are not in line with the business, double-billing, and using unusual shipping routes.

In this regard, Rodríguez believes that greater coordination is needed, both internally and internationally, to combat this growing phenomenon in Latin America and the Caribbean.

It emphasizes the importance of taxpayers declaring the true value of the merchandise on forms, providing all information related to international purchases and sales, and submitting the true commercial invoice and shipping documents for international purchases and sales.