Friday, March 24, 2023

The export of Dominican tobacco begins with an increase in 2023

Dominican tobacco, after having reported negative export numbers last year compared to the previous one, in 2023 it has started on a good footing, since in January its external sales totaled US$79.1 million. This indicates 17% more, which is equivalent to US$11.5 million, compared to what was reported in the same month of 2022, according to the General Directorate of Customs (DGA).

The Dominican cigar is one of the most attractive in the world market, so its price is constant.

The decrease experienced by the criollo cigar last year in foreign trade was 15%. This registered an amount of US$67.6 million in the first month of 2022, for a difference of US$12.1 million less compared to January 2021, which was US$79.7 million.

Everything indicates that the tobacco sector that exports started on a “good footing” in 2023. A positive aspect and a “good sign”, because in 2022 this trade reflected around US$7.4 million less compared to 2021. The data reflects which went from US$1,236.2 million to US$1,228.8 million, which represents 1%.

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Tobacco in the last ten years in the Dominican Republic has been increasing.

Between 2019 and 2022, looking only at the month of January, the trade balance for this product remained stable. Each year with an absolute and marked difference in favor of exports over imports. However, that relationship and trend was practically even this year. In January 2023, an amount of US$157.5 million was reported, of which US$79.1 million correspond to exports, that is, 50.2%. Meanwhile, around US$78.3 million registered imports, which are due to 49.7%.

The data also indicates that the total of cigarette imports in January 2023 exceeds the average amount (about US$47 million) registered as of 2019. In addition, it is the quantity with the highest weight during that period. However, exports as of January of this year reflect figures similar to those of 2021, that is, about US$600,000 less.

Between 2019 and January 2023, the Dominican tobacco trade reported an amount of US$6,357.4 million. Foreign sales registered around 70% with US$4,422.5 million indicating the highest weighting. While, purchases from other countries to meet domestic demand reported US$1,934.9 million, that is, the remaining 30%.

free zone

This product has its greatest marketing weight in the country through the “free zone” regime. In this sense, general exports report a total of US$521.9 million at the end of January 2023, which represents an 8.9% increase and a difference of US$42.9 million, compared to the same month of 2022 that registered US$479 million.

Exports of Dominican tobacco and its derivatives, through free zones, were the third group with the most preponderance, reporting US$77 million, which indicates a participation of 14.7% among other products. In addition, this amount indicates a 14.4% increase, which is equivalent to a difference of US$9.7 million in contrast to what was registered in the same month of 2022, which was US$67.2 million.

Due to this regime, imports accumulated US$456.7 million at the end of January of this year, equivalent to 6.4% and a difference of US$27.8 million, in relation to the same month of 2022 that reported US$428.8 million.

At the end of the first month of 2023, imports of tobacco and its derivatives with US$75.7 million ranked second among the items most brought to the country, behind “plastic materials and their manufacture”, representing 12% of the total.

Likewise, this amount indicates a 24.8% increase, which is equivalent to a difference of US$10.9 million, compared to the same period of 2022 that accumulated US$42.2 million.

This cigar is exported to at least 50 countries. However, 86.7% goes to the United States market, which is why it is the main destination of this product at the end of January 2023. In addition, it is the country with the highest weighting in terms of imports, registering 62.7% of the total that they are equivalent to around US$49.1 million.

cigarette performance

During the period January-December 2022, cigarette imports to the Dominican Republic accumulated US$8.3 million, equivalent to a negative variation of 11%, representing a drop of US$1.1 million compared to the same period in 2021, which registered US$9.3 million. .

The ports managed by Customs reported the highest weighting with 72.3%, that is, US$6.1 million. In this period, the number of cigarette packs imported into the country also experienced a decrease, going from 74.7 million units in 2021 to 63.3 million units in 2022, which indicates a variation of 15%, which is equivalent to 11.3 million units less. .

Given this, cigarette collections decreased during the period January-December 2022. The data indicates that they went from RD$3,982.3 million in 2021 to RD$3,440.4 million, equivalent to 14% less and a difference of RD$541.9 million.


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