what is a free trade zone ?? By Jack Mitchell

[Müřlıń®]

*****keeps clicking the remote*******

 

 

Murlin teh I lost the signal.....Tim.... quit working and post bro

[Philcott]

Very interesting, Tim.

 

Thanks for sharing your experiences. Now I am wondering if my wife should be having her pay deposited in a US bank. I don't suppose Canada is in the free trade zone.

 

Phil

[ScottyB]

Is it bad to hit the refresh button every 90 seconds?

I mean, you can't wear it out....can you?

 

Just wondering.

[Surface]

quote:

---

Not to stick up for companies but ANY Publicly Traded company's FIRST reposonsibility is to it's shareholders

---

A recomended book is The Goal

In it, and among other things, Eliyahu M. Goldratt, does a great job expaining that the goal of any buisness is not to produce a product, or supply emloyment, it is to make money.

 

A great read especailly for those involved in manufacturing.

[Westgate Hardwoods]

Thanks for these posts Tim. Your knowledge and experience on these issues is far-reaching and invaluable. I only wish that the intellectual and political discourse in this country would have someone like you with the cojones to make this a real public debate. These are issues that need to go beyond this forum.

 

Glued to my seat as well.

 

[ 11-13-2003, 06:26 PM: Message edited by: WESTGATE HARDWOODS ]

[kkominiarek]

tim.....very interesting as well as informative......i will be back for more.....please continue

[Noel]

Me want more.What time is the next instalment?

 

 

Noel

[Nominal]

I hope the MIB's didn't show up and silence his a$$!

[Brendan P]

Tim,this is very interesting reading.

Keep it up.

You are soo in "tune" with this.

Makes me feel like I have soo much to learn.

 

Surface,My mastercam teacher Peter Scott also told me that the Goal was a very good book to read.

[Müřlıń®]

Didnt I just see Tim getting shoved in the trunk of a lemo by two big goons???

 

 

Nawwwwww......that couldn't have been him....

 

j/k....

 

 

Murlin

[Chris Rizzo]

This is a great topic Tim, thanks for putting the time in. I'm eating it all up...I think that most of us here are "knowledge junkies", and certainly like hearing it from a true first-person perspective.

[Hardmill]

quote:

---

This is a great topic Tim, thanks for putting the time in. I'm eating it all up...I think that most of us here are "knowledge junkies", and certainly like hearing it from a true first-person perspective

---

Yeah what he said.

Its one of those stories you always hear about

second hand. Hearing direct makes you stop and

think.

Your time is much appreciated.

God Bless

 

PEACE

 

 

PEACE

[Jack Mitchell]

Twenty five years ago I had a temporary instructor that worked in Saudi Arabia. He told me that he had to commit to two years service at a time – due to taxation, if he signed on for another two years then it was all basically tax free, you just had to do four years to get the benefit of two years tax free. (A yearly two or four week all inclusive flight and vacation was also part of the package). I believe this was similar to Tim’s situation regarding taxation and being in another country for 320 days. Through some agreement with the foreign country there was minimal or no tax at all in exchange for the commitment and service rendered. ( I'm sure that the company that negotiated these contracts was financially rewarded in the extreme - as well).

 

This instructor’s trade was General Machinist; reality was General BS because this guy never worked a conventional milling machine, only conventional lathes; quality instructors? - go figure.

Anyways, he told me of other skilled trades people driving fork trucks and performing menial jobs instead of the being used for the contractual work they were hired for. But that’s neither here or there regarding this discussion.

 

He told me the trip to the compound they lived in was really terrifying since the bus had to go though several check points with armed guards and at times he thought he was going to be killed.

 

While living in this compound, sex and alcohol were forbidden (some carrot – hey)

 

Boredom really set in and to pass the time these guys worked or perhaps played for long hours. Computers, forums, and internets didn’t exist back then – I can’t even remember if Vcr’s were commercially available (God I’m getting old).

 

I don’t know if such offshore employment packages are still around for Canadians and others but the pay was phenomenal and that was during the late 70s. I can see the benefit of moving to China, Japan, or Saudi as not only a trade professional but as an English professor as well,I can also appreciate being very well paid for such services.

 

Edit: On second thought, the Saudi thing is not safe anymore and I don't really think that idea a very good one given the recent bombing attacks.

 

 

Tim,

 

It looks as if many forum members are fascinated with this thread. Thank you for taking the time to present this with such meticulous planning and execution for I too was clicking every 90 seconds for the refresh. maybe you should consider a writing career when you return to the states - you have a good cliff hanger ability in your dialoge.

 

 

This was really large Tim, in the broad scope of things.

quote:

---

I enjoy this Forum, and it's an absolute necessity for me, 1st the problem solving, the interaction, the community spirit.

---

Please put up your link for Expats. I did a search but never encountered yours; this is only for consideration providing it doesn't spoil an excellent story.

 

Regards, Jack

 

[ 11-14-2003, 02:29 AM: Message edited by: Jack Mitchell ]

[mayday]

Tim, did you just sign a book deal between posts?

working for readers digest now?

took over Paul Harveys desk?

For the rest of the story?

 

really tho you do type a good book

[TimHollis]

1 company made of 2 parts.

 

Part 1 USA.

Has a large engineering staff, all disciplines 70 people.

Has a purchasing, logistics, and shipping department, 10 people.

Has a ware-house for out going ,incoming materials and merchandise, 20 people.

Has a small engineering rework department, 20 people.

Has an international sales staff of 30.

And the rest that would make up management.

 

These people are very well paid, have stock options, and the median for time employed is 15 years, better than most companies.

 

Everything needed for manufacturing, must be shipped by Part 1, to Part 2, by ocean going container, 2 containers a week leave the USA with raw materials. 2 containers a week arrive with finished goods. Machinery must be shipped in from Part 1, in the USA, to Part 2. Old equipment must be shipped back to the states, there is no exceptions to these rules. I can not sell an old chip shooter, or dispose of it in any way, here. That could cause an unfair advantage with the local manufacturers, who compete here and also ship goods to the states.

 

Logistics.

At all times, there are 2 containers in NY, being loaded.

There are 2 containers on the pond, on their way to NY, with finished goods.

There are 2 containers on the pond, on their way here with raw materials.

There are 2 containers here being loaded, with finished goods, to ship.

 

All containers are loaded and locked, at their perspective loading docks, and bypass the usual customs inspections. Once in awhile they are inspected, far and few in-between.

 

$ 300,000. of raw materials arrive every week.

$ 1,000,000. of finished goods, ship every week.

 

All assets, capital equipment, loss & depreciation, labor, utilities, property lease, are treated tax wise, as if being manufactured in the facility, in NY.

 

Labor Costs

Locale employees in the Free Trade Zone, earn 30% above their counterparts outside the AFTZ.

The average salary, for a technical operator( CNC chip shooter), maintenance man, machinist, is between $8,000. to $12,000. pesos @ month. $200 to $300 US dollars @ month.

 

A good department manager $20,000. to $30,000. pesos @ month. $500 to $750. @ month U.S.

 

A Section Leader, we have 7, about $50,000. pesos @ month. $1250 @ month U.S.

These salaries are 30% or more in difference outside the AFTZ.

 

1 example would be, an operator, at Magnachem, a Glaxo-Wellcome, pharmaceutical subsidiary, that did not set up in the Free Trade Zone, gets paid $2500. pesos @ month,

or $62. U.S. @ month.

 

Manufacturing outside the FTZ, allows you to market you goods, locally on the Island.

We can not.

 

The Free Trade Zone, is exempt for all locale laws and restrictions. It is treated like an Embassy, it has sovereignty recognition of its SPONSER

 

This island has over 50 Free Trade Zones. AFTZ (USA), Zona Franca (France), Zona Oriental (China), and so on, and so on.

 

Below is cut and pasted from my web site.

**************

 

WORKING IN THE DR / AND WORK RESOURCES.

 

*CLICK ON THE LINK BELOW TO VIEW*

 

*GETTING DOWN TO WORK!*

A GREAT 1 page primer, too read before the search for WORK.

 

*FREE TRADE ZONE LIST*

17 PAGES IN PDF FORMAT, BROKEN DOWN BY

FREE ZONE PARK-COMPANY-CONTACT- PHONE/FAX-EMAIL- ACTIVITIES

 

*NATIONAL FREE ZONES COUNCILE*

WEB SITE FOR THE D.R. GOVERMENT CNZFE.

 

 

If you have the labor cost, stuck in you head, please note the following.

 

The Pesos, is valued at the amount of U.S. Dollars, in reserve at the Banco Central.

 

 

From 1993 to December 2001, the peso, was rock solid at 16 to 1, U.S. dollars.

Since January 2002, the Newly Elected Government, has emptied the Central Bank (their Federal Reserve) from 2 Billion U.S. dollars, reserve, to 78 Million U.S. dollars reserve.

The Islands biggest bank has collapsed, and the peso has gone from $16 to 1, all the way to $40 to 1, U.S. dollars. And is forecasted to go to $50 to 1, by January.

 

The problem, the more U.S. dollars that leave the Banco Central, the further the pesos slide.

As the peso has fallen over 100%, electric, gas, propane, food, has risen accordingly.

 

But salaries, have only grown 3 to 4% from the before era to now.

 

Post, comment, ask questions, more is coming!!!!!!

 

Tim H.

[mayday]

Thanks Tim

this gets better every post

[TimHollis]

DR1

My web site, is like this.

The front page is daily news, in english.

The Message Forum is where people ask questions to others who have lived here and and have the benefit, of other peoples expirences

 

Sections in the message forum.

FORUM

Business

Do you want some advice about dealing with Dominican business people or government officials? Frederic Emam Zade, one of the nation's leading business consultants and economists, is the host of this forum.

Legal

Can or can't it be done in the Dominican legal world? Lawyer Fabio Guzman, one of the most experienced lawyers dealing with helping foreigners with their needs, is the host of this forum.

Living

Hundreds who live in the DR contribute their insight. Questions welcomed from those who have been here for years and from newcomers.

 

TRAVEL

Weather & Beyond

Keep up to date with all the latest weather news.

General

Many who have been here before are willing to share their travel experiences and knowledge with you. DR1's own staff travel experts also ready to answer your travel-related questions.

Trip Reports

Have you been on a recent visit to the DR?

Share and post your experience with other DR1 readers.

Note: This forum is NOT for general travel related questions.

Airline Info

Who's flying from where? Cheap tickets and deals.

Plus many other useful pieces of airline related info.

 

OPEN

General Stuff

For all those questions without a home.

Not for the faint hearted or easily offended!

D/R Debates

Lively debates on everything Dominican.

Bring in your brain, leave your weapons at the door.

Men from Mars and Women from Venus

For all those people chasing, dating or married to a Dominican. Friendship, Love, Sex, and Marriage, it's all here!

 

No membership needed to view or browse, only if you want to post, then the only thing you need is a e-mail address. thats it, totaly free.

 

DR1 front page news weblink

DR1 Message Forums weblink

 

 

More coming.

 

Thanks

Tim H.

 

[ 11-14-2003, 08:02 AM: Message edited by: TimHollis ]

[Fig sign]

Tim !

 

Your thread RoCkS !

 

Great work and very interesting.

Not want to hijack a thread but want to say smthn:

In a week it will be 12 yers as I repatriated/immigrated to Israel .

I want to share very personal impressions of what it means to be an immigrant and try to explain

what pushed me to it .what came out of this and how I feel myself now in Israely society .

I can tell a bit of my life story :

How I served as a tank commander in the Soviet army

What it was to be a Jew in the USSR ?

Who and what pushed me to immigrate ?

My working experience there and here .

What it means to be an immigrant ?

Why they are hatred ?

What immigrants think about natives ?

And more things that are coming to my mind when I look on this 12 crazy years .

 

If you are ready to this and are capable to understand my English , just say it .

I am waiting for your input here

[TimHollis]

In between posts, if you guys want to read some more.

 

From my website, What I went through, moving & getting set up here.

 

Moving to the DR, our story by TIMEX.

I'm Timex

 

 

For amusment some of the commands I use are not accepted by this format here, but the links do work.

 

Popular Post's / Past Sticky's. Required reading for Newbies!!!

 

In an effort to clean up the Sticky's, and be able to see more of the new daily post's, I'm posting short-cut links below in groups.

Click on the topic too view that post.

 

MEDICAL / MONEY / ADVICE

MEDICAL HELP.

Medical Insurance.

Prenatal Breastfeeding Classes

MONEY, thanks Jim Hinsch

ROB's shopping bill for the month!!!! :laugh:

READ BEFORE MOVING HERE!!!! By GOLO.

ENGLISH / SPANISH PHRASE GUIDE.

*** MEDICAL / MONEY / ADVICE. Pg2***

 

 

MOVING TO THE DR

Our Story, by TIMEX.

BUYING A VILLA IN SOSUA

FROM MAINE TO THE DR.

JAZZCOM BUYS A PIECE OF LAND!!!!

***MOVING TO THE DR. Pg2***

 

 

* WORKING IN THE DR / AND WORK RESOURCES.

 

 

REUNIONS / GET-TOGETHER'S

DR1 at the JARAGUA

DR1 JARAGUA PHOTOS

Thanks MommC!!!

Great DR1 reunion in Sosua

Biggest DR1 reunion on the North Coast!!!

HillBilly's up-coming Christmas re-union, VOTE NOW!!!:devious:

***REUNIONS / GET-TOGETHER'S. Pg2***

 

 

DANGER AHEAD

Beware of Promises made by Diane Pellerin!!!!

What would you do?

***DANGER AHEAD. Pg2***

 

 

 

*********Still under construction*********

 

WELCOME! Forum Guidlines.

 

Volunteer / Charitable cause

***Volunteer / Charitable cause. Pg2***

 

Who else is here from??????

***Who else is here from??????? Pg2***

 

Wall of SHAME!

***WALL of SHAME!***

 

 

 

Please make suggestion's as to other Topic's, you might want to see.

 

I will be adding more and updating and dressing it up.

Thanks

Tim H.

 

 

*ENGLISH / SPANISH PHRASE GUIDE.*

 

Thanks Hlywud!!!!!!!!

 

 

*************************

 

 

Thats stuff should keep you busy in-between the up-comming post's!

 

We now take you back too your regular scheduled programming!

 

From here on in, I,m going to stick too...

 

Local economics.

Politics and Policies.

American Free Trade Zones.

Manufacturing

How the U.S. Chamber of Chamber of Commerce, put the whole thing together.

Corruption

 

 

Thanks

Tim H.

 

[ 11-14-2003, 08:51 AM: Message edited by: TimHollis ]

[TREV]

hello tim

ive been following a little bit and must say very interesting. the last post has more than enough to keep us all busy .

thanks,

trevor

[Jack Mitchell]

I just noticed a small detail.

 

Tim has included one more topic in bold lettering at the close of his last post.

 

Corruption

 

The plot thickens.

Should we be reading this by candlelight?

 

Regards, Jack

 

[ 11-14-2003, 12:46 PM: Message edited by: Jack Mitchell ]

[Philcott]

quote:

---

Should we be reading this by candlelight?

---

Just keep looking over your shoulder and watch that no one puts anything in your drink.

 

Phil

[Jack Mitchell]

quote:

---

Since January 2002, the Newly Elected Government, has emptied the Central Bank (their Federal Reserve) from 2 Billion U.S. dollars, reserve, to 78 Million U.S. dollars reserve.

The Islands biggest bank has collapsed, and the peso has gone from $16 to 1, all the way to $40 to 1, U.S. dollars. And is forecasted to go to $50 to 1, by January.

---

On a re-examination of what has being said until now.

 

This describes a gross inability to manage a country or its economy, never mind its finances. The value as Tim has described it is less than 5% of what it was two years ago. If this was Canada or the USA then I am absolutely sure the politicians would be publicly lynched. People would undoubtedly starve and steal just to feed their families; I can understand how the WMF or the USA would bail this drastic situation but I fail to understand why these resident companies are there at all. I am sure that D.R. welcomes all new companies and foreign investment with open arms since Tim states that there are more than 50 free trade zones.

 

Edit: “This describes a gross inability to manage a country or its economy, never mind its finances”

I just couldn’t help but to stand back for a moment and to look at what I just typed regarding the dire shape of another country. Don’t you see the sheer irony of it all?

 

Cynicism is something that I find myself growing into as I get older. It’s not that I am spiteful or ornery; it’s just that I feel as if I’ve been wearing rose colored glasses for a very long time. Sort of like being tricked really bad and never finding out until everybody starts laughing and the hurt and anger starts to set in.

 

Keep it coming Tim.

 

 

Regards, Jack

 

[ 11-14-2003, 02:31 PM: Message edited by: Jack Mitchell ]

[Müřlıń®]

Some people say a pecimist(however you spell it),

is just someone who really knows whats going on

 

 

Murlin

[SledGeek]

quote:

---

and bypass the usual customs inspections. Once in awhile they are inspected, far and few in-between.

---

Wonder if any government officials are stockholders in this co. ?

 

Great stuff Tim. Strangely enough your demeanor seems to parallel that of the Plant Manager in "the Goal" ,allbeit ,slightly more sarcastic.

 

Awesome read, BTW.