Given the sanctions imposed by the US authorities on the British-Cambodian businessman Chen Zhithe largest shareholder of Garcia’s Tobacco Factory –one of the Dominican companies that exports the most cigars by hand to other countries – the Ministry of Industry, Commerce and MSMEs (MICM) assured that this fact will not affect the national tobacco sector nor will it affect its exports.
The United States charged Zhi in October supervise forced labor camps in Cambodia, where human trafficking victims engage in online scams, agency says AFP.
“The situation involving Garcia’s Tobacco Factory responds to a punctual measurement adopted by authorities of the United States, related to the share composition of the company and the review of its supply chains, within the framework of the provisions applied since April of this year,” he pointed out.
When consulted, the institution specified that this measure does not represent a sanction against the Dominican Republic nor against the national tobacco sector, but rather it is an action directed at a specific company in a context of measures adopted by the North American giant “to avoid the evasion of tariffs through third countries.”
Exports
With regards to the exportsthe MICM explained that the tobacco sector maintains a international overdemandso it is not expected that this will have a significant impact.
The Dominican Association of Exporters agrees on this (Adoexpo), which highlighted that the dominican tobacco It is internationally known for its quality and has a positioning in international markets that allows it to handle operational adjustments without affecting the performance of shipments abroad of this product.
“From the export perspective, the tobacco continues to be one of the most solid sectors of the national export basket,” said the vice president of Adoexpo, Roselyn Amaro Bergéswho indicated that Garcia’s Tobacco Factory maintains its shipments to other international destinations.
- As of November of this year, the sale of cigars generated foreign exchange for 965.5 million dollars, while the tobacco added 263 million dollars to the exports national, according to data from the General Directorate of Customs (DGA).
Staff suspension
According to the agency AFPthe tobacco factory currently operates with 20% of its payroll for the American blockadedata that does not correspond to the data that the company has reported, according to the MICM.
The institution indicated that there have been personnel adjustments that correspond “to a minimum quantity and habitual”, typical of operational processes of the end of the year.
“The company has informed us that it is currently in a period of collective vacation of approximately three weekswhich explains the temporary pause of its operations,” he said.
