WT/TPR/S/105 Trade Policy Review
Page 22
III. TRADE POLICIES AND PRACTICES BY MEASURE
(1) OVERVIEW
1. Since its previous Review in 1996, the Dominican Republic has moved forward the
progressive liberalization of its trade regime.  This has included streamlining customs procedures,
phasing out non-automatic licensing, and adopting WTO-based customs valuation rules, although
minimum prices remain in use for a number of products.  The Dominican Republic has not maderecourse to contingency measures, but domestic statutes to govern these measures were introduced in
2002.  Since 1996, new legislation to enhance the protection of intellectual property rights has also
been adopted;  it was reviewed by WTO Members in 2001.
2. The tariff has become the Dominican Republic's main instrument of border protection, with
only ad valorem  tariffs in use.  Since 1996, the average applied MFN tariff has been more than
halved, to 8.6%, although average tariffs on agricultural products remain considerably higher.  Since
1996, preferential tariffs have been introduced for imports from partners in the Central American
Common Market and CARICOM.  Tariff quotas apply to a number of agricultural products with out-
of-quota rates of up to 118%.  The tariff structure reveals a pattern of escalation, notably for textile
products.  All tariffs are bound at 40% except on certain agricultural products.
3. Non-border measures affecting imports include public procurement regulations that grant
preferences to local suppliers;  the Dominican Republic is not a party to the Plurilateral Agreement on
Government Procurement.  Since 1996, a privatization programme has diminished government
involvement in economic activities, and new statutes have been introduced to further encourage this
trend.  Although there is no general legal framework for competition policy, various laws and
regulations contain competition provisions.  Competition legislation was to be presented to Congress
in 2002.  Certain goods and services are subject to price controls.
4. In practice, most of the Dominican Republic's merchandise trade is not governed by the rules
of its general trade regime.  This reflects the recognition that the regime still creates an anti-export
bias despite its continuing liberalization, and the desire to assist exports by offering exporters special
rules, notably under the free-trade zone regime.  This regime offers a duty- and tax-free environment
to firms located in FTZs and producing for export;  local-content requirements apply when such firms
seek to sell in the Dominican market.  The FTZ regime has undergone no significant changes since
1996;  thus, no measures have been taken to phase out export subsidies in lines with multilateral
obligations.  Instead, in 2001 the Dominican Republic notified the WTO that its FTZ regime
provided export subsidies, and subsequently requested an extension of the transition period to
eliminate them.
5. Since its previous Review, the Dominican Republic has adopted a single export form to
address cumbersome export procedures.  It also introduced additional mechanisms, including a duty
drawback scheme for enterprises located outside FTZs, and legislation to promote regional
development through export activities in specific geographic areas.  Dominican exports benefit from
unilateral preferences granted by the United States, while textile exports are subject to quantitativerestrictions under the WTO Agreement on Textiles and Clothing.  In part related to those preferences
and restrictions, certain products require special export permits.Dominican Republic WT/TPR/S/105
Page 23
(2) MEASURES AFFECTING IMPORTS
(i) Procedures
6. The Dominican Republic's import procedures are based on the Customs Law (Law No. 3489)
of 12 February 1953 and the Free Trade Zone La w (Law No. 8-90) of 15 January 1990 and its
Regulations.  Imports with an f.o.b. value above US$2,000 require a customs declaration (DVA) in
order to determine the customs value of the imported product;  no declaration is required for importsbelow this threshold, for imports under duty-drawback schemes or into free-trade zones, or for
imports of public or private institutions for educational, benevolent, humanitarian, scientific, and
cultural objectives.  The information required in the declaration, which can also be submitted
electronically, includes:  the identity of the exporter, importer, consignee, carrier, and customs broker,
where appropriate;  a description of the goods;  the relationship between the importer and theexporter;  and the value for customs purposes.  The customs declaration must be accompanied by:  an
import declaration form;  the commercial invoice;  transport documents;  a consular invoice approving
the transaction;  import permit, where appropriate;  and a certificate of origin for preferential imports.
The authorities noted that no customs service charges are applied although some forms may be subject
to a nominal fee.  No intervention of a customs broker is required.
7. According to Decree No. 512-87 of 29 September 1987, the cost of the consular invoice
approving the transaction is US$34 for transaction values below US$1,000 and US$82 for transaction
values above US$1,000.  The authorities indicated that the replacement of the consular invoice by a
fixed-value stamp was under evaluation. All other duties and taxes have to be paid in Dominican
pesos.
8. The authorities indicated that all imports are subject to physical inspection and verification of
the information provided in the customs declaration.  Once the customs authorities have accepted thecustoms declaration, import duties must be paid at the authority's point of payment.  According to the
authorities, import clearance usually takes 48 hours on average. Informal trade with Haiti appears to
be sizeable, thereby undermining customs controls.
9. The Directorate-General of Customs has overall responsibility for the administration of
import procedures and the collection of all foreign-trade-related revenue due to the State.  Importprocedures are handled by the Directorate-General's 23 customs offices.
10. The authorities indicated that import procedures apply equally to all trading partners without
exception and that all importers must comply with the same procedures.  Importers are not subject to
registration requirements except on goods for which import permits are required (section (vi)(b)).
Import permits have to be obtained from the competent Ministry or public institution.
11. Procedures for appeals are laid out in Articles 178 to 189 of the Customs Law.  Decisions of
the customs authorities may be challenged within ten days by importers, exporters or any other
interested party.  Appeals must be submitted in writing to the Director-General of Customs who
decides the case in the first instance.  Decisions of the Director-General of Customs can be appealed
before the Ministry of Finance.  The authorities indicated that there are no statistics on total orsuccessful challenges of customs decisions.
12. The authorities stated that the Dominican Republic does not have laws or regulations relating
to preshipment inspection and that preshipment inspection firms are not used.WT/TPR/S/105 Trade Policy Review
Page 24
(ii) Customs valuation and rules of origin
(a) Customs valuation
13. Since the entry into force of Decree No. 667-01, establishing the Regulations on Customs
Valuation, on 1 July 2001, the Dominican Republic has been applying a customs valuation system
based on the provisions of the Agreement on the Implementation of Article VII of the GATT 1994.
The authorities indicated that this valuation system is not applicable for a list of products for whichminimum prices are still used (see below).  Befo re July 2001, the valuation of imported goods was
based on a list of minimum import prices or customs valuation list.
14. In order to give effect to Decree No. 667-01, the Directorate-General of Customs has issued a
new customs declaration and guidelines to its application.  It has also issued guidelines for
determining the range of acceptable transaction values and the management of customs bonds thatapply for the valuation of imports of goods subject to minimum prices.  The various legal instruments
establishing the Dominican Republic's custom valuation system and the respective guidelines have
been notified to the WTO.
1
15. In March 1995, the Dominican Republic invoked Article 20, paragraph 1 of the WTO
Agreement on Customs Valuation and obtained a delay in the application of the Agreement'sprovisions until March 2000 when it obtained a further extension of the transition period until 1 July
2001.
2  In June 2001, the Dominican Republic informed the Committee on Customs Valuation that it
was requesting a reservation to retain minimum values for a list of products comprising 31 tariff
subheadings until 1 July 2003.3  The authorities outlined the importance of these products for total
customs revenue.  Upon this request, the General Council decided that the Dominican Republic may
use minimum values until the date specified for the tariff headings listed in Table III.1, provided that
no minimum values are applied to additional products.4  The authorities indicated that the WTO
Agreement on Customs Valuation is applied on goods for which no waiver was granted.
16. The authorities indicated that the provisions of the WTO Agreement on Customs Valuation
are applied for preferential imports.  According to Article 3.06 of the Dominican Republic's free-trade
agreement with the Central American Common Market, no party shall apply minimum or reference
prices for the valuation of original goods.  The FTA with the Caribbean Community (CARICOM)does not contain any provisions on customs valuation.
17. The authorities indicated that the Dominican Republic does not use or plan to use
preshipment inspection services for the purpose of customs valuation.
(b) Rules of origin
18. The Dominican Republic applies preferential rules of origin defined in its FTAs with the
Central American Common Market and CARICOM;  it does not apply any non-preferential rules of
origin.
5  The authorities indicated their intention to  notify to WTO the Dominican Republic's rules of
origins for these FTAs in the near future.
                                                     
1 WTO document G/VAL/N/1/DOM/1, 10 July 2001.
2 WTO document G/VAL/22, 10 March 2000.
3 WTO document G/C/W/286, 31 July 2001, and WTO document G/VAL/W/85, 15 June 2001.
4 WTO documents G/C/W/310, 3 October 2001, and  WT/L/442, 10 January 2002.
5 WTO document G/RO/N/9, 19 April 1996.Dominican Republic WT/TPR/S/105
Page 25
19. Chapter IV of the FTA with the CACM provides  definitions on rules of origin, which for most
products categories are based on the principle of substantial transformation (change of HS
classification).  Goods that do not meet this conditi on are nevertheless considered as being originating if
the value of non-originating inputs does not exceed 7% of  the product's total value.  Self-certification is
used for issuing the relevant documents.
20. The annex of the FTA with CARICOM contains rules of origin defined by product category
at the four-digit tariff level.  For most of the goods, and where applicable also for the inputs used, the
rules require that they are produced wholly in the territory.  Non-originatin g material used in the
production process must generally be specified.
Table III.1
Products subject to minimum prices
Tariff heading Description of product Criteria Share of total customs receiptsa
0402.21.10 Milk and cream Monthly average f.o.b. prices 1.08%
1006.30.00 Semi-milled or wholly milled rice Reuters weekly prices;
FAOSTAT database0.62%
2523.10.00
2523.29.00Cement clinkers Average f.o.b. prices 0.59%
0.78%
2710.00.79 Lubricating oils .. 0.46%
3923.90.003926.90.90Plastics (articles of) .. 0.58%
0.44%
ex 4011.20.00 Used pneumatic tyres Average f.o.b. prices 0.55%
4818.40.90 Diapers and sanitary towels .. 1.03%
6908.10.00 Ceramic products .. 0.74%
8415.81.00
8450.11.00Air conditioning machines, refrigerators and
washing machines.. 0.45%
0.56%
8517.11.00
8528.12.00Sound reproducers .. 0.54%
1.10%
ex 8703.22.99ex 8703.23.19
ex 8703.23.99ex 8703.24.99
ex 8703.31.99
ex 8704.21.10
ex 8704.22.90
ex 8704.31.10ex 8704.90.10
ex 8711.20.19Used motor vehicles, tractors and parts
thereofGlass' Guides  (European
vehicles);  NADA – Guide of
the National AutomobileDealers Association;  JAAI –
Guide of the Japanese
Automobile Appraisal Institute;
Big Truck Trader  – Guide to
the valuation of industrialequipment0.69%
4.66%
7.17%0.59%
2.27%
1.19%
0.62%
1.14%0.54%
0.44%
.. Not available.
a For year 2000.
Source: WTO documents G/VAL/W/85, 15 June 2001, and WT/L/442, 10 January 2002.
(iii) Tariffs
(a) Structure and levels
21. The Dominican Republic grants at least MFN treatment to all its trade partners.
22. The Dominican tariff classification is based on the Harmonized Commodity Description and
Coding System (HS).  The Ministry of Fina nce may, upon recommendation of the Directorate-
General of Customs, incorporate changes to or updates of the nomenclature without, however,
modifying the tariffs.WT/TPR/S/105 Trade Policy Review
Page 26
23. The Customs Reform Law (Law No. 146-00) of 27 December 2000 created a Commission of
Tariff Analysis, which is in charge of making recommendations on changes of the tariff structure to
the Executive for subsequent approval by Congress.  The Commission is composed of representatives
of:  the Ministry of Finance, which also presides it;  the Ministry of the Presidency;  the Ministry of
Industry and Trade;  the Ministry of Agriculture;   and the Directorate-General of Customs.  The
Commission takes its decisions by simple majority.
24. All import duties are levied on the c.i.f. value of goods.  The Dominican Republic only
applies ad valorem  tariffs;  it does not apply seasonal or variable tariffs.
25. In January 2002, the Dominican Republic's tariff schedule contained 6,726 lines at the eight-
digit level.  The average applied MFN tariff was 8.6% as at January 2002 (Table III.2).  Agricultural
products (WTO definition) are levied an average tariff of 12.9%, while non-agricultural productsexcluding petroleum face an average tariff of 7.9%.
26. Of the total number of tariff lines, 13.5% (908) are duty free.  For other lines, tariffs are
concentrated at the 3%, 8%, 14%, and 20% levels;  the most frequent rate is 3%, applied to a total of
2,776 lines (Chart III.1).  This five-tier structure was established by the Customs Reform Law of
December 2000.  Particularly high tariffs apply to goods subject to tariff-rate quotas (section (iv)),with applied out-of quota tariffs exceeding 100% for rice, chicken meat, and garlic.
27. The Dominican Republic's applied tariffs decreased considerably in 2001 and 2002.
According to data provided by th e authorities, the trade-weighted average tariff has fallen from about
22% in 2000 to less than 9% in 2002.
28. The Dominican Republic's tariff clearly reveals a pattern of escalation (Chart III.2).  This is
particularly marked for textile products for which raw materials are charged duty at a rate of 1.8%,
semi-processed goods at 2.0%, and fully processed goods at 17.3%.
29. Government revenue from tariffs increased in nominal terms from RD$6.4 billion in 1995 to
RD$9.3 billion in 2001 (Table III.3).  The proportion of import tariffs in total fiscal revenue decreased
from 25.6% in 1995 to 15.6% in 2001. Furthermore, the share of ITBIS collected on imports in total
ITBIS revenue decreased from 49.6% in 1995 to 40.4% in 2001.
Table III.2
Summary analysis of the Dominican Republic's tariff, January 2002a
Applied tariffs, 2002
Analysis No. of lines Avg. applied tariff (%) Range (%) Std-dev (%) CV
Total 6,726 8.6 0-40 8.0 0.9
By WTO category
Agriculture 998 12.9 0-40 9.3 0.7
Live animals and products thereof 122 19.8 0-40 12.2 0.6
Dairy products 25 18.8 3-20 3.7 0.2
Fruit and vegetables 246 19.5 0-25 2.6 0.1
Cut flowers, plants 57 5.7 0-20 4.8 0.8
Coffee and tea, cocoa, sugar, etc 198 14.2 0-20 6.1 0.4
Tobacco 10 17.6 14-20 3.1 0.2
Grains 16 5.2 0-20 8.4 1.6
WTO Non-agriculture (excl. petroleum) 5,708 7.9 0-20 7.5 0.9
Textiles and clothing 899 9.4 0-20 9.2 1.0
Table III.2 (cont'd)Dominican Republic WT/TPR/S/105
Page 27
Applied tariffs, 2002
Analysis No. of lines Avg. applied tariff (%) Range (%) Std-dev (%) CV
Leather, rubber, footwear, travel goods 189 11.7 0-20 6.9 0.6
By ISIC sectorb
Agriculture and fisheries 449 10.4 0-25 8.7 0.8
Mining 116 4.9 0-20 5.3 1.1
Manufacturing 6,160 8.6 0-40 7.9 0.9
By HS section
01 Live animals and products 279 15.7 0-40 10.3 0.7
02 Vegetable products 412 12.2 0-25 8.5 0.7
03 Fats and oils 66 7.2 0-20 6.8 0.9
04 Prepared foods, etc. 292 16.9 0-40 6.8 0.4
05 Minerals 182 4.2 0-20 3.7 0.9
06 Chemicals and products 1,069 4.4 0-20 4.8 1.1
07 Plastics and rubber 264 9.2 0-20 5.9 0.6
08 Hides and skins 104 11.0 3-20 7.6 0.7
09 Wood and articles 117 7.0 3-20 5.9 0.8
10 Pulp, paper, etc. 188 7.6 0-20 7.4 1.0
11 Textile and articles 878 8.8 0-20 9.3 1.0
12 Footwear, headgear 61 17.1 3-20 5.2 0.3
13 Articles of stone 175 10.2 3-20 7.3 0.7
14 Precious stones, etc. 60 17.6 8-20 4.7 0.3
15 Base metals and products 684 8.1 0-20 6.7 0.8
16 Machinery 1,060 5.3 0-20 6.1 1.2
17 Transport equipment 262 9.7 0-20 6.4 0.7
18 Precision equipment 348 7.8 3-20 7.1 0.9
19 Arms and munitions 29 20.0 20 0.0 0.0
20 Miscellaneous manufactures 189 17.2 0-20 6.2 0.4
21 Works of art, etc. 7 20.0 20 0.0 0.0
a The analysis does not include tariffs for goods subject to tariff-rate quotas, which were not available at the time of the pre paration
of this table.
b ISIC Classification (Rev.2), excluding electricity (1 line).
Source: WTO Secretariat estimates, based on data from the Government of the Dominican Republic.
Table III.3
Import-related fiscal revenue, 1995-01
(RD$ million)
Year 1995 1996 1997 1998 1999 2000 2001
Tariffs 6,361 6,797 8,795 10,140 12,221 13,456 9,336
Additional fees 144 144 212 262 368 391 284
ITBIS on imports 2,037 2,195 2,997 3,481 4,080 4,602 5,741
Total ITBIS 4,106 4,640 6,238 7,178 8,563 9,912 14,225
Specific Consumption Tax on imports 467 538 578 609 1,067 1,551 1,997
Total Specific Consumption Tax 6,209 6,627 8,776 10,232 8,299 7,697 12,332
Total import-related fiscal revenue 9,010 9,674 12,581 14,492 17,736 20,000 17,358
Total fiscal revenue 24,891 26,488 34,766 38,566 43,434 51,271 59,856
Source : Dominican authorities.WT/TPR/S/105 Trade Policy Review
Page 28
(3.1%)(1.8%)(17.3%)
(10.2%)(17.2%)
(5.4%)
(0.2%)(44.7%)
0100200300400500
Duty free 3 8 14 18 20 25 >40020406080100Chart III.1
Distribution of MFN tariff rates , Januar y 2002a
Cumulative percentage Number of tariff lines (% of total)
The total number of lines is 998 for agriculture and 5,708 for non-agriculture (excluding petroleum). 
WTO Secretariat estimates, based on data provided by the Government of the Dominican Republic. a
Source :Agriculture
(0%) (0%)(12.7%)(46.7%)
(10.1%)
(6.8%)
(0%)(23.7%)
06001,2001,8002,4003,000
Duty free 3 8 14 15 20 25 40020406080100Non-agriculturePer centNumber of tariff lines
Number of tariff lines Per centDominican Republic WT/TPR/S/105
Page 29
(b) Tariff bindings
30. In the Uruguay Round, the Dominican Republic bound all its tariffs at 40% with no difference
between base and final rates.  After the conclusion of the Uruguay Round, the Dominican Republic
pursued Article XXVIII renegotiations for various agricultural goods to allow it to amend its Schedule
of Commitments.  In November 1998 the Dominican Republic notified that it had completed theprocess of renegotiation concerning the rectificati on of its Schedule XXIII.  All the products in Annex
1 of the Agreement on Agriculture were consolidated at a 40% ad valorem  tariff, except the
following:  chicken meat, corn, dry beans, flour,  fresh apples, garlic, onions, powdered and skimmed
milk, rice, soy oil and fats, sugar, and wheat (see also section IV(2)).
6  As a result of the
renegotiations, final bound rates are highest for rice, chicken meat, and garlic (99%), onions (97%)and dry beans (89%);  lower bindings were negotiated for wheat (5%) and soy oil (10%).  The
                                                     
6 WTO document G/MA/TAR/RS/54, 3 November 1998.048121620Chart III.2
Tariff escalation for selected manufactured productsa, January 2002
Per cent
Raw materials
Semi processed
Fully processed
By 2-digit ISIC category. 
WTO Secretariat estimates, based on data provided by the Government of the Dominican Republic.a
Source:Manufacture of 
food, beverages 
and tobaccoTextile, 
wearing 
apparel and 
leather 
industriesWood and 
wood products, 
including 
furniturePaper, paper 
products, 
printing and 
publishingChemicals, 
petroleum, 
coal, rubber, 
plasticsBasic metal 
industriesWT/TPR/S/105 Trade Policy Review
Page 30
Dominican Republic's new schedule of commitments entered into force on 18 August 1999, with the
implementation period for renegotiated goods ending in 2004.7
31. In the context of these Article XXVIII renegotiations, the Dominican Republic transposed its
schedule of commitments to HS-96.  The authorities indicated that as at mid 2002 they were in the
process of transposing the schedule to HS 2002.
32. The Dominican Republic has reserved the right under Article XXVIII:5 of GATT 1994 to
modify its Schedule XXIII during the three-year period commencing 1 January 2000.8
(c) Tariff preferences
33. The Dominican Republic grants preferential tariff treatment to imports from the Central
American Common Market (CACM) and CARICO M.  The Dominican Republic does not give
preferential treatment to imports within the scope of the Global System of Trade Preferences amongdeveloping countries.  Preferences granted within a former Agreement with Costa Rica, covering 52
tariff items, were absorbed by the Agreement with the CACM.
34. The Free Trade Agreement with the CACM, signed in November 1998, established a zero
tariff rate for most products.  A programme of phased tariff reductions until 2004 was agreed for a
second group of products, including beef and pork meat, crustaceans, milk and cream, and tomatoes.For a third group of goods, particularly oils and fats, a preferential and non-varying tariff of 15% was
established.  A number of products were completely excluded from liberalization, including sugar,
petroleum products, coffee, wheat flour, rice, chicken, powdered milk, onions, garlic, beans, tobacco
and cigarettes.
35. The Free Trade Agreement with CARICOM, signed in August 1998, provides for a
programme of phased reductions to a zero tariff rate by 2004 for a list of products.  Exempt from this
agreement are products from 68 tariff headings, which continue to be subject to MFN treatment.These exemptions include beer, cement, dairy products, fish, various kinds of meat, steel products,
and tobacco products.  The remaining products, most notably assembled industrial goods, will be
subject to further negotiations.  The Protocol implementing the agreement establishes that goods
produced in free-trade areas shall be subject to MFN duty rates.  In order to protect agricultural
producers, it also provides for the possibility of seasonal suspensions of preferential treatment forvarious agricultural products.
(d) Tariff concessions
36. Pursuant to Article 6 of the Customs Reform Law, tariff concessions are available, inter alia ,
for imports of public institutions for reasons of national security or emergency, and for material and
equipment imported by pharmaceutical laboratories.
37. Imports entered under the various laws and regulations establishing drawback and processing
procedures also benefit from tariff concessions (section 3(iv)).
                                                     
7 WTO document WT/Let/317, 4 November 1999.
8 WTO document G/MA/75, 28 October 1999.Dominican Republic WT/TPR/S/105
Page 31
(iv) Tariff quotas
38. The Dominican Republic maintains tariff-rate quotas on a number of agricultural products.
Tariff-rate quotas have been opened for all of the products in its modified Schedule of Commitments
(Table III.4).9  The present quota system entered into force on 1 January 2000.
Table III.4
Tariff-rate quotas in the Dominican Republic's Schedule of Commitments
Products concerned HS Code Initial quota and in-quota tariff Final quota and in-quota tariff Application period
Chicken meat 0207.10
0207.21
0207.416,500 tons / 25% 11,5000 tons / 25% 1995 / 2004
Onions 0703.10 2,500 tons / 25% 3,750 tons / 25% 1995 / 2004
Garlic 0703.20 3,000 tons / 25% 4,500 tons / 25% 1995 / 2004
Dry beans 0713.31
0713.32
0713.3312,000 tons / 25% 18,000 tons / 25% 1995 / 2004
Corn 1005 703,000 tons / 5% 1,091,000 tons / 5% 1995 / 2004
Rice 1006 13,700 tons / 20% 17,810 tons / 20% 1995 / 2004
Sugar 1701 20,000 tons / 20% 30,000 tons / 20% 1995 / 2004
Milk, skimmed,
powdered or skimmed0402.10
0402.21
0402.2932,000 tons / 20% 32,000 tons / 20% 1998 / 2004
Source: WTO document G/MA/TAR/RS/54, 3 November 1998.
39. Quotas are allocated on a first-come, first-serv ed basis with the exception of powdered milk.
For this product, 70% of the quota is reserved for the European Union, which allocates this share
internally;  the remainder is allocated in equal shares to New Zealand and other suppliers on a first-
come, first-served basis.10  There are no ceilings for individual applications.  Imports of goods subject
to tariff-rate quotas require a licence, which is issued by the Commission for Agricultural Imports ofthe Ministry of Agriculture and valid for 60 days.  The quotas are allocated in accordance with an
annual import plan;  this is published on the internet and in a newspaper of major circulation.
11
40. Quota fill rates varied considerably in 2000 (C hart III.3).  The in-quota tariffs range between
5% and 25%;  out-of-quota tariffs in 2002 range from 50.2% to 117.9%.
41. In addition, the Dominican Republic applies tariff-rate quotas to certain agricultural products
imported from Central American countries within the framework of the free trade agreement with the
CACM.  The respective bilateral contingents are defined in Annex A1.4.6 of the Agreement.
                                                     
9 WTO document G/MA/TAR/RS/54, 3 November 1998.
10 WTO document G/AG/N/DOM/6, 4 February 2002.
11 The import plan is available online at:  http://www.agricultura.gov.do/mimport.htm.WT/TPR/S/105 Trade Policy Review
Page 32
(v) Other charges affecting imports
42. The Dominican Republic's value-added tax, known as the Tax on the Transfer of
Industrialized Goods and Services (ITBIS), is levied at a rate of 12% and applies to all goods andservices unless otherwise specified.  For imports, the tax is levied on the c.i.f. value of goods plus
customs duties plus the Specific Consumption Tax described below.  For domestic products, the tax
base is the net selling price plus related services, such as transport and packaging.
43. Pursuant to Article 343 of the Tax Code, as modified by the Tax Reform Law
(Law No.147-00) of 27 December 2000, the ITBIS does not apply to imports and domestic sales ofmost agricultural goods and inputs, books, combustibles, educational material, pharmaceuticals, and
inputs for the printing industry.  These exemptions are specified in the Tax Reform Law by their
HS code.  Furthermore, imports by public, religious, educational, and social institutions as well as
imports under duty-drawback schemes are exempt from the ITBIS.
44. The Tax Code, as modified by the Tax Reform Law, also subjects various goods to a Specific
Consumption Tax (ISC), which ranges from 15% to 60%.  The goods include:  alcoholic drinks (beer,
wine, vermouth etc.); carpets and rugs;  caviar;  luxury watches;  electric household goods;  electronic
products;  jewellery;  perfumes;  pistols;  tobacco products;  and yachts and jet-skis.  The products are
specified in the Tax Reform Law by their HS Code.  The ISC is levied on the c.i.f. value of goods plus
customs duties.  The authorities indicated that the ISC is applied to imports and domestic products inthe same manner.Chicken meat
Onions
Garlic
Powdered milk
Dry beans
Rice
Sugar
CornChart III.3
In-quota and out-of-quota tariffs and fill rates
WTO Secretariat calculations, based on data from the Dominican authorities and document G/AG/N/DOM/5. (%)
 Fill rate (size of quota), 2000  Out-of-quota rate, 2002  In-quota rate, 200296 72 24 0 20 40 60 100 48
(9,000)
(3,125)
(3,750)
(32,200)
(15,000)
(12,410)
(25,000)
Source : 120 80
Note: Amount imported is 2.7 
times quota allocation.
(897,000) No fill rate dataDominican Republic WT/TPR/S/105
Page 33
45. In 2001, government revenue from the ITBIS and the Specific Consumption Tax amounted to
RD$26.5 billion, of which RD$7.7 billion was collected from imports (see also Table III.3).
46. The Tax Reform Law also amended the specific tax on vehicles.  The tax ranges from 0% to
80%, depending on and applied to the vehicle's c.i.f. value.
(vi) Import prohibitions, restrictions, and licensing
(a) Import prohibitions
47. The Dominican Republic maintains import prohibitions for the protection of human health,
animal and plant life, the environment, and essential security interests and military reasons, in
compliance with domestic legislation or international commitments.  The Dominican Republic's
import prohibitions apply equally to all its trading partners.
48. To protect the environment and biodiversity, Law No.147-00 prohibits the import of vehicles
older than five years and of motorcycles within five years of manufacture.  The Law further prohibits
the import of used electric household appliances except in case of household removals, and of
vehicles over five tons, within 15 years of ma nufacture.  Law No. 218 of 22 May 1984 prohibits the
importation of human, animal, and industrial waste.  Law No. 4990 of 27 August 1958 prohibits the
importation of conifers, dead or alive.  Law No. 50-88 of 30 May 1988 prohibits the importation ofnarcotic drugs.  Decree No. 6775 prohibits the import of livestock and products thereof from countries
where foot and mouth disease is prevalent.  La w No. 458 of 3 January 1973 prohibits the importation
of used clothes.  In addition, the authorities indicated that imports of fruits, plants and seeds that
contain parasites or that could otherwise affect human, animal or plant health in the Dominican
Republic is prohibited.
(b) Other import restrictions and licensing
49. Decree No. 114-98 of 16 March 1998 repealed a number of decrees and administrative
resolutions by government agencies under which various products were subject to non-automatic
import licensing.  In particular, the Decree abolished specific import licences to be obtained from the
Ministry of Industry and Trade and the Price Stabilization Institute for various food products, cement,
and petroleum.
50. Although no import licences are required, as such, the importation of certain products, mostly
agricultural goods, is subject to administrative formalities (Table III.5).  There is no difference in the
procedure between trading partners and there are no exceptions to licensing requirements under the
Dominican Republic's free-trade agreements.  The Dominican Republic has yet to notify the necessary
formalities.
51. Pursuant to Article 41 of the Law on the Environment and Natural Resources
(Law No. 64-00) of 18 August 2000, the import, production, transport, and commercialization of
explosive, harmful, inflammable, radioactive, toxi c, or otherwise dangerous substances require the
presentation of an environmental impact evaluation.  According to the authorities, importers of these
products require a permit issued by the Ministry of Defence.WT/TPR/S/105 Trade Policy Review
Page 34
Table III.5
Products subject to import permits
Products Institution granting the permit Legal instrument Date
Plant protective agents and veterinary products Ministry of Agriculture Law No. 4030 19 January 1955
Seeds and bulbs, fruit, spices, live plants, fertilizers
and pesticides, meat products, fish and crawfish, live
animals, dairy productsMinistry of Agriculture Laws No. 4990
and No. 8-6527 August 1958,
8 September 1965
Arms and ammunition Ministry of Defence Law No. 36 17 October 1965
Livestock and fresh meat Ministry of Agriculture Law No. 278 29 June 1966
Seeds Ministry of Agriculture Law No. 231 22 November 1971
Certain drugs and chemicals Ministry of Health Law No. 50-88 30 May 1988
Sugar Dominican Sugar Institute Decree No. 751-
0011 September 2000
Source: Dominican authorities.
52. The authorities noted that the Dominican Republic does not make use of any other kind of
quantitative restrictions on imports.
(vii) Local-content schemes
53. The Dominican Republic does not have legal instruments establishing local-content
requirements applicable to domestic production.  However, Article 17(f) of the Free Trade Zone Lawstipulates that enterprises installed in such zones that wish to sell more than 20% of their production
on the Dominican customs territory must demonstrate that the respective product has a local content
of at least 25% or that the good is not produced by other enterprises in the Dominican Republic (see
also section 3(iv)).
(viii) Contingency measures
54. Since its last Review in 1996, the Dominican Republic has not made recourse to contingency
measures;  it has regularly notified the WTO Committees on Anti-Dumping Practices and on
Subsidies and Countervailing Duties that it had not taken anti-dumping or countervailing actions.
12
The Dominican Republic has retained its right to use the transitional safeguard on products coveredby the Annex to the Agreement on Textiles and Clothing.
13
55. The Dominican Republic adopted the Law on Unfair Trade Practices and Safeguard Measures
on 11 December 2001;  until then it had no domestic laws or regulations on contingency measures.
The text of the Law was notified to WTO Members in May 2002.14
56. The Law on Unfair Trade Practices and Safeguard Measures seeks to complement the
provisions of international treaties, notably WTO rules, by establishing rules to impose anti-dumping
or countervailing duties on dumped or subsidized imports that may injure a domestic industry, or to
take safeguard measures to protect a domestic industry.  Anti-dumping and countervailing duties areto be equivalent to the margin of dumping or subsidization, and remain in force for five years unless
reviewed beforehand.  A safeguard measure must initially be applied for no more than four years,
which may be extended to eight years.
                                                     
12 WTO document G/ADP/N/53/Add.1/Rev.1, 19 April 2000.
13 WTO document G/TMB/N/17, 6 March 1995.
14 WTO document G/ADP/N/1/DOM/3, 22 May 2002.Dominican Republic WT/TPR/S/105
Page 35
57. The Law on Unfair Trade Practices and Safeguard Measures provides that revenue from anti-
dumping or countervailing duties may be used to finance programmes for the development of the
enterprises affected by the trade practices in questi on.  Under the Law, monies collected as part of a
safeguard measure may also be allocated to support the adjustment plan of an affected domestic
industry.
58. The Law established the Commission for the Regulation of Unfair Trade Practices and
Safeguard Measures as a decentralized public body endowed with functional, judicial, and financial
autonomy.  The Commission is to be made up of five commissioners appointed for four years by the
Executive after confirmation by the Congress.  The Commission has been given responsibility for
investigations and the determination of duties or  safeguard measures;  it may initiate safeguard
investigations ex officio.  It has also been granted responsibility for notifying the application ofcontingency measures to the WTO.
59. The Ministry of Industry and Trade has been made responsible for implementing the Law on
Unfair Trade Practices and Safeguard Measures until the Commission is constituted.  No regulations
have been adopted under the Law.
60. At a regional level, Chapters VI and VIII of the FTA with the Central American Common
Market on unfair trade practices and safeguard measures restate the FTA members' rights and
obligations under the WTO Agreements, which are established as the bases for the application of
contingency measures.  A bilateral safeguard mechanism provides for reverting to the use of MFN
tariffs for a renewable period of one year.  Chapter XVI on dispute settlement provides that if a party
is affected by a definite measure, it may bring the case either before a WTO panel or before the
agreement's Joint Administrative Council.  The FTA with CARICOM has no specific rules on
contingency measures; it provides for the establishment of a Committee on Anti-CompetitiveBusiness Practice, but this has not yet been done.
(ix) Standards and other technical requirements
61. In order to eliminate unnecessary administrative procedures and practices connected with
foreign trade, Decree No. 114-98 of 16 March 1998 repealed a number of decrees or administrative
resolutions that were considered as creating obstacle to foreign trade.  The Decree calls upon theMinistries of Health, Agriculture, and Industry and Trade to revise existing technical, sanitary, and
phytosanitary regulations to make them compliant with internationally recognized standards and the
respective WTO Agreements.
(a) Standards and technical regulations
62.  According to the authorities, Dominican standards and technical regulations do not
distinguish between foreign and domestic goods and apply equally in the Dominican Republic's free-
trade zones.
63. The Dominican Republic has accepted the WTO Code of Good Practice for the Preparation,
Adoption and Application of Standards.
15  It has notified to Members the following TBT national
enquiry points:  Ministry of Agriculture for agricultural products, Ministry of Health forpharmaceutical products and food additives, and the Directorate-General of Norms and Quality
Systems for industrial products.
16  The Dominican Republic is also  a member of the Pan-American
                                                     
15 WTO document G/TBT/CS/N/87, 13 January 1998.
16 WTO document G/TBT/ENQ/19, 26 September 2001.WT/TPR/S/105 Trade Policy Review
Page 36
Standards Commission (COPANT) and a subscriber member of the International Organization for
Standardization (ISO).
64. The National Commission on Norms and Qual ity Systems, created by Law No. 602 of
20 May 1977, is solely responsible for the elaboration, adoption, and surveillance of standards and
technical regulations.  The Commission is composed of representatives of the Government, the private
sector, and consumer associations.  Its decisions are executed by the Directorate-General of Normsand Quality Systems (DIGENOR), which operates unde r the Ministry of Industry and Trade and is in
charge of making notifications to the WTO.  As at July 2002, the Dominican Republic had not made
any notifications under the WTO Agreement on Technical Barriers to Trade.
65. DIGENOR is also responsible for ensuring that all products, including imported goods,
comply with the Dominican Republic's technical regulations.  When a technical regulation on animported product has to be met, a sample of the product is tested in a laboratory recognized by
DIGENOR.  However, the authorities noted that DIGENOR is not yet in the position to enforce
technical regulations at the border.
66. The elaboration of norms (technical regulations and standards) follows a standardized
procedure based on the Regulations of DIGENOR's Technical Committees:  an initial proposal byDIGENOR or a member of one of its technical comm ittees is studied by the competent committee;  on
the basis of the proposal, the technical committee develops a provisional norm, which is published
and subject to comments, including from the Directorate-General, for a period of 30 days;  in the
absence of comments the provisional norm is submitted to the Commission for consideration.  The
norm enters into force after acceptance by the Commission and publication in a major journal.  The
authorities underlined their objective to increasingly  take into account existing international norms in
the elaboration process.
67. As at December 1999, the Dominican Republic had published 496 norms, compared with 368
in 1988.
17  Technical regulations cover, in particular, issues relating to health and personal safety.
According to the authorities, 50 of the standards ar e identical to ISO/IEC standards.  The authorities
indicated that no national technical regulations of other countries are used.
68. At the request of interested persons and upon recommendation of CEDOPEX, DIGENOR
may issue quality certificates attesting that export products comply with international norms.
69. Within DIGENOR, the Department for Certification and Quality is responsible for the
certification of products.  However, no processes are certified.  The authorities indicated that due to
the lack of mutual recognition agreements in this field, the Dominican Republic does not accept
certificates from foreign laboratories.
70. Chapter XIII of the FTA with the CACM confirms the parties' rights and obligations under
the WTO Agreement on Technical Barriers to Trade, and establishes a Committee on Technical
Barriers to Trade to ensure that norms do not represent an unnecessary barrier to trade.
(b) Marking, labelling, and packaging
71. The Dominican Republic has two standards on labelling, NORDOM 53 relating to food, and
NORDOM 407 relating to medication, which according to the authorities are in line with international
practices (Norm 55.020.00).  The authorities indicated that there are no standards or technical
regulations on packaging.
                                                     
17 Dirección General de Normas y Sistemas de Calidad (2000).Dominican Republic WT/TPR/S/105
Page 37
72. Article 112 of the Health Law of 7 February 2001 establishes that the following products and
their specific sanitary indications have to be labelled in Spanish:  beverages, cosmetic products, food,
medical products and equipment, plant protective agents, tobacco, and substances that may be
detrimental to human health, including equipment used for their production.
73. Article 13.08 of the FTA with the CACM provides for the development of harmonized norms
on marking, labelling, and packaging through a special sub-committee to be set up.  The authoritiesindicated that this sub-committee should act in line with recommendations of international
organizations that are competent in this field.
(c) Sanitary and phytosanitary measures
74. The Ministries of Agriculture and Health, in their own spheres of competence, are in charge
of fulfilling the obligations and exercising the rights laid down in the WTO Agreement on theApplication of Sanitary and Phytosanitary Measures.  While the Ministry of Health is responsible for
all issues relating to processed food, the Ministry of Agriculture is in charge of regulations pertaining
to unprocessed food and animal and plant health.  The Dominican Republic has notified various
departments in the Ministries of Agriculture and Health as its national SPS enquiry points;  their
competence depends on the type of product.
18
75. The Dominican Republic's sanitary and phytosanitary regulations apply equally to all its
trading partners;  there is no distinction between domestically produced and imported products.
76. The Dominican Republic has signed mutual recognition agreements on SPS measures with
Canada, Chile, Cuba, and Haiti.  The authorities indicated that other countries' SPS measures are
accepted as equivalent.  There are no domestic regulations on testing procedures.
77. The Health Law of 7 February 2001 establishes that the Ministry of Health is responsible for
the sanitary control of imports of beverages, cosmetic products, food, medical products andequipment, plant protective agents, tobacco, and substances that may be detrimental to human health,
including equipment used for their production.  Importers of these products must be registered with
and authorized by the Ministry.
78. Article 127 of the Health Law establishes that all food imports have to comply with
Dominican laws and regulations. Goods prohibited for consumption or sale in their country of originmay not be imported into the Dominican Republic.  In the absence or insufficiency of domestic
norms, the Codex Alimentarius applies.
79. Law No. 4990 of 3 September 1958 establishes that import permits, issued by the Ministry of
Agriculture, are required for fertilizers and pesticides, fruit, live plants, seeds and bulbs, and spices.
80. The importation of livestock and meat is governed by various legal instruments.  Law
No. 4030 of 31 December 1973 prohibits the import of livestock with contagious infections.
Decree No. 6775 prohibits the import of livestock and products thereof from countries where foot and
mouth disease is prevalent.  Decree No. 2888 established regulations for the control of various animal
diseases, including import prohibitions for infected animals.  Law No. 218 of 22 May 1984 prohibits
the importation of animal waste.
81. The authorities indicated that compliance of imported goods with SPS regulations at the
border is verified by technical inspectors of the Ministry of Agriculture.
                                                     
18 WTO document G/SPS/ENQ/12, 4 July 2001.WT/TPR/S/105 Trade Policy Review
Page 38
82. As at March 2002, the Dominican Republic had notified only one SPS measure to the WTO,
relating to the phytosanitary protection of tomato production.19
83. According to Article 6.02 of the FTA with the CACM, SPS measures should be based on
scientific principles and not have the objective of creating unnecessary barriers to trade.  The FTA
with CARICOM does not contain provisions on SPS m easures.  However, the agreement establishes a
Committee on Sanitary and Phytosanitary Measures and calls for a harmonization of SPS procedures.
(x) Government procurement
84. The Dominican Republic is not a party to th e WTO plurilateral Agreement on Government
Procurement;  however, in the context of preparat ions for this Report the authorities indicated that
they were considering accession to the Agreement.  Furthermore, the Dominican Republic has
participated in the Working Group on Transparency in Government Procurement.
85. According to the authorities, the total value of public procurement increased from
RD$5.5 billion in 1995 to RD$10.0 billion in 1999, dropping to RD$6.6 billion or 2.0% of GDP a
year later (Chart III.4).  No information was available on the percentage of the procurement volume
delivered by foreign suppliers.
86. Government procurement in the Dominican Republic is regulated by Law No. 295 of
30 June 1966, the Regulations on Public Procurement and Contracts (Decree No. 262-98), and
Law No. 27-01 of 1 February 2001.  The Laws and the Regulations do not govern purchases by public
enterprises.  Law No. 295 created a Government Supply Commission, which oversees and approves
all the procedures for central government purchases.  The Law stipulates that public procurement
must take place through public bidding, and that preference must be given to Dominican suppliers.
However, it defines neither the degree of preference nor the modalities of the bidding process.
87. Adding to Law No. 295, the Regulations on Publ ic Procurement and Contracts were issued in
order to modernize the government procurement system and to increase transparency of public
purchases.  They apply for the Central Government and decentralized public institutions, but not for
municipalities.  Pursuant to the Regulations, government procurement takes one of four modalities,
depending on the amount of the purchase:  public tender, invitation to tender, limited tender, and
direct contracting.  Public tender applies to all orders exceeding RD$3 million.  For purchases belowthis limit, but exceeding RD$100,000, only specially invite d enterprise have the right to bid;  at least
ten offers should be formally invited.  The limited tender procedure is applied for government
purchases below RD$100,000;  at least five offers should be invited.  Direct contracting is used for
smaller purchases;  the amount is not specified.  The respective thresholds can be adjusted by the
Government Supply Commission;  according to the au thorities this has not occurred so far.  The
authorities indicated that they were in the process of setting up a database on public procurement and
that no information was yet available on the percentages of procurement taking place under each
modality.
                                                     
19 WTO document G/SPS/N/DOM/1, 14 April 1997.Dominican Republic WT/TPR/S/105
Page 39
88. Enterprises submitting bids must be registered and must have proven technical competence in
their field and sufficient financial resources.  The Regulations do not accord different treatment to
national and foreign goods, services, public works, or suppliers.  Nor are there provisions according
preferential treatment to suppliers from any country.  The authorities indicated that, due to the absence
of a national register, registration is at the level of the procuring institution and may be done at anytime of the year.
89. The invitation for public tendering is published in national or international newspapers with a
description of what is being procured and the criteria on which the decision will be taken.  The time-
limit for the presentation of offers is at least fifteen working days from the last publication date of the
invitation to bid.  Bidders must have access to all technical studies prepared for the purpose of thetender.
90. Offers must be treated as secret until a decision is taken by the contracting authority.  This
authority is assisted by a Bidding Committee, which publicly opens the offers received and submits a
proposal on the basis of the criteria established in the tender.  The Committee's decision, which
according to the authorities is binding in practice, must be well-founded and presented in written
form.  The decision must be published in a national or international newspaper within three days.  All
decisions of the contracting authority can be appealed.0246810
1995 1996 1997 1998 1999 20000.00.81.62.43.24.0Chart III.4 
Public procurement, 1995-00
RD$ billion
Total 
value
WTO Secretariat calculations, based on data from the Dominican authorities. As % of GDP 
As % of GDP
(right axis)
Source: WT/TPR/S/105 Trade Policy Review
Page 40
91. Pursuant to Article 20 of the Regulations, in order to avert serious damage to individual
persons or the general public, and irreversible damage to things, the described procedures are not
mandatory in urgent cases.
92. On 1 February 2001 the Dominican Republic adopted Law No. 27-01 on Government
Procurement, without, however, abrogating La w No. 295 and Decree No. 262-98.  With a view to
strengthening the national economy, the new Law prohibits the Dominican Government fromacquiring imported goods and services if there is a similar national product.  In the context of
providing information for this Review, the author ities indicated that the Dominican Republic's public
procurement system was under review, which would include a revision of its legal framework.
93. Although Laws No. 295 and No. 27-01 stipulate th at preference must be given to Dominican
suppliers, Article 12.03 of the FTA with the CACM establishes the principles of national treatmentand non-discrimination for procurement by central governments, public enterprises, decentralized or
autonomous institutions, and municipalities.  Regulations and contracting procedures for public
procurement should be transparent and publicly available.  The annexes to Chapter XII contain a list
of institutions and goods that are exempt from the provisions.  The FTA with CARICOM does not
contain specific provisions on Government procur ement.  According to its Article 11, however, the
parties convene to develop and adopt an agreement on this subject.
(xi) Other measures
94. While there was limited countertrade in the 1980s and early 1990s, the authorities indicated
that they were not aware of such arrangements being undertaken currently.
(3) M
EASURES AFFECTING EXPORTS
(i) Registration and documentation
95. The Single Export Form, which replaced a number of forms and declarations was introduced
by Decree No. 646-96 of 23 December 1996 in order to simplify procedures.  The information
required in this form includes:  the identity of th e exporter, the consignee, the carrier, and the customs
broker, where appropriate;  and a description of the goods including their tariff line, quantity, weight,
and f.o.b. U.S. dollar value.  The form is issued by the Dominican Centre for Export Promotion
(CEDOPEX) for a fee of RD$100;  it is required for all exports, including from free-trade zones.  In
addition to this form, exporters are required to submit:  commercial invoice;  transport documents;
sanitary, phytosanitary, veterinary and fishery certificate, as appropriate;  and a certificate of origin
for products that are subject to international agreemen ts, such as cocoa, coffee, and sugar.  For exports
under the Lomé IV Convention, the Generalized System of Preferences, and the Caribbean Basin
Initiative, as well as for exports to members of CARICOM and the Central American CommonMarket, special certificates of origin are required from CEDOPEX.
96. With the exception of exporters of certain products (section (iii)), there are no registration
requirements for exporters.  Export licences were abolished in 1992 by Decree No. 377-92.  However,
enterprises that wish to claim reimbursement of value-added tax on inputs incorporated in exports
must enrol in the exporters register of the Ministry of Finance Directorate-General of Taxes.
97. Decree No. 248-98 of 9 July 1998 created the One-Stop Office for Exporters (SIVUCEX) to
simplify and expedite export procedures.  SIVUCEX was set up as an integrated service unit by
centralizing all the required formalities.  It has been claimed, however, that export procedures have
remained cumbersome due to lack of institutional coordination and because SIVUCEX has only twoDominican Republic WT/TPR/S/105
Page 41
offices in the country.20  The authorities agreed that SIVUCEX's initial objectives have not been fully
met.  Export clearance usually takes less than 24 hours.
98. Exporters of textiles under a quota regime must obtain a visa from the special Textile
Coordinator, who is nominated by the National Council for Free Trade Zones.  The quota for textile
exports is assigned by the Textile Commission of the National Council for Free Trade Zones, in
accordance with the Regulations on the Allocation of the Textile Quota (Resolution No. 235-97-A) of12 December 1997 (Chapter IV(4)).  The Commission is composed of representatives of the public
and private sector.  Historic export performance is the main criterion for the allocation of the quota.
(ii) Export taxes, charges, and levies
99. For environmental reasons Decree No. 11-01 of 11 November 2001 established export taxes
for live fish, molluscs, and crustaceans.  The tax is RD$0.03 per kg. for fish and 5% ad valorem  for
molluscs and crustaceans.  Furthermore, under Article 119 of the Mining Law mineral substances in
their natural state or in the form of metalliferous concentrates that are destined for export, are subject
to a specific tax of 5% f.o.b.  According to the authorities no other export taxes are applied.
(iii) Export prohibitions and other restrictions
100. The Dominican Republic maintains export prohibitions for environmental and public health
reasons.  The following products are affected:  unprocessed amber (Law No. 165 of 31 May 1967);
human blood and its derivatives (Law No. 56 of 24 October 1974);  and sand, gravel, and soil suitable
for cultivation (Presidential Resolution No. 964-01 of 26 September 2001).
101. The authorities indicated that, while export licences were abolished in 1992, special export
permits are required for cocoa, coffee, sugar, tobacco, and textiles.  Sugar exports are registered and
controlled by the National Sugar Institute (INAZUCAR), which also allocates the export quota;
phytosanitary permits for cocoa, coffee, and tobacco are issued by National Cocoa Commission, theDominican Coffee Council, and the Tobacco Institute (INTABACO), respectively (Chapter IV(2)).  In
this context the authorities indicated that the Dominican Republic does not impose its own export
quotas but merely manages import quotas granted by partners.
102. Article 110 of the Health Law establishes that  exporters of the following products must be
registered with the Ministry of Health:  beverages, cosmetic products, food, medical products andequipment, plant protective agents, tobacco, and substances that may be detrimental to human health,
including equipment used for their production.
103. The Dominican Republic has not entered into agreements with other countries on voluntary
export restraints nor does it participate in any retention scheme.  No export cartels are in operation in
the Dominican Republic.
(iv) Subsidies, free-trade zones, and similar arrangements
104. The authorities noted that, apart from the free-trade zone and rebate regimes described below,
no fiscal incentives linked to export performance were in place.
21
                                                     
20 Listín Diario "El naufragio de la ventanilla única" (The wreckage of the One-stop Office), online.
Available at: http://www.listindiario.com/antes/251101/cuerpos/dinero/din2.htm.
21 WTO document G/SCM/N/52/Add.1/Rev.1, 2 May 2000.WT/TPR/S/105 Trade Policy Review
Page 42
105. In January 2001, the Dominican Republic notified the export subsidy measures maintained
under the Free Trade Zone Law (Law No. 8-90) of 8 January 1990, and requested an extension of the
transition period provided for in Article 27.4 of the WTO Agreement on Subsidies and Countervailing
Measures.22  The Ministerial Conference directed the Committee on Subsidies and Countervailing
Measures to extend the transition period under this Article for certain export subsidies provided by
Members.23
106. Free-trade zones (FTZs) constitute the Dominican Republic's most important instrument of
export promotion.  As at January 2002, more than 500 enterprises with more than 175,000 employees
operated in FTZs.  In 2001, more than 85% of the Dominican Republic's total exports came from
FTZs, up from 52% in 1990.  Exports from Dominican FTZs have also been fuelled by the Caribbean
Basin Initiative, which unilaterally grants access to the U.S. market.  Chart III.5 shows the recentdevelopment of exports from Dominican FTZs.
107. More than half of the enterprises installed in FTZs are engaged in the production of textiles.
The authorities indicated, however, that there had been increasing diversification in recent years.
Activities with particularly high growth rates include the production of jewellery, electronic
components, marketing services, and pharmaceutical products.  Chapter IV(4) contains a more
detailed description of individual industries operating in FTZs.
108. The Free Trade Zone Law is one of the Dominican Republic's main instruments for export
promotion.
24  FTZs are defined as physically separated geographic areas that are not subject to
                                                     
22 WTO document G/SCM/N/74/DOM, 8 January 2002.
23 WTO document WT/MIN(01)/17, 20 November 2001.
24 WTO documents G/SCM/N/74/DOM, 8 January 2002, and G/SCM/N/71/DOM, 6 March 2002.0123456
1993 1994 1995 1996 1997 1998 1999 2000 2001Chart III.5
Breakdown of total exports, 1993-01
US$ billion
Source :    Consejo Nacional de Zonas Francas de Exportación (2002);  Informe Estadístico 2001.Free zone exportsDomestic exportsDominican Republic WT/TPR/S/105
Page 43
Dominican customs and fiscal regulations;  enterprises established therein must produce for export
markets;  such areas are distributed throughout the Dominican territory.  Enterprises operating in
FTZs are subject to the country's labour and environmental  laws without exception.
109. As described in detail in the previous Secretariat Report on the Dominican Republic,
Law No. 8-90 grants considerable incentives for a renewable period of fifteen years to enterprises
located in FTZs.  These incentives include the exemption from the payment of:  income and corporatetaxes;  value-added tax on imports, and import duties for all inputs and all equipment used in
establishing and operating the company;  municipal taxes;  export taxes;  and various specific taxes.
Additional benefits under this Law, such as a 20-year exemption from the above taxes, and rental
subsidies, are available for companies located in FTZs in the Haitian-Dominican border area.
110. The Free Trade Zone Law established the National Council for Free Trade Zones, which is in
charge of evaluating the policy on free-trade zones, promoting their development and making
recommendations to the Presidency.  The Council also evaluates and approves initial requests of
enterprises considering installation in a free-trade zone, as well as requests for renewal.  Furthermore,
the Council regulates the relations between the operators of free-trade zones and the enterprises
installed there.  For specific questions relating to the payment of customs duties, the Council hasapproved an Agreement on Customs Issues for Free Trade Zones.  The Directorate-General of
Customs maintains a customs office in every free-trade zone, which verifies compliance with the Free
Trade Zones Law and its Regulations.
111. Enterprises installed in FTZs that wish to export to the Dominican customs territory must
obtain a prior authorization from the National Council for Free Trade Zones.  Up to 20% of the
production may be sold on the Dominican market, subject to payment of normal customs duties and
internal taxes.  Up to 100% of the production may be sold when the product has a local-content of atleast 25% or when there is no equivalent domestic production.  According to the authorities, less than
3% of the production in FTZs is sold on the Dominican market.
112. In addition to the various benefits granted by the Free Trade Zones Law, Dominican-owned
enterprises installed in FTZs are eligible for credits at preferential conditions under the Finance
Programme for Free Trade Zones, which was instituted in 1992 and modified in 2001.
25  Under this
Programme, which is jointly managed by the Dominican Central Bank and the World Bank,
investments of up to an equivalent of US$360,000 can be funded at preferential interest rates.  A
Monetary Board Resolution of 8 November 2001 fixed the borrowing rate for this programme at
10.68%;  as at June 2002 this was about 15 percentage points below the market rate.
113. As a further tool for export stimulation, the Export Promotion Law (Law No. 84-99) of
6 August 1999 and its Regulations established a duty drawback scheme for exporting enterprises
located outside FTZs.  Pursuant to this Law, enterprises may request reimbursement of all tariffs and
other import-related duties on inputs used for the production of goods that are being exported.  In
contrast to the Free Trade Zones Law, however, the Export Promotion Law does not offer tax benefits
other than exemption from import duties to exporting enterprises.
114. The Export Promotion Law provides for three different export promotion schemes:  (i) duty
drawbacks;  (ii) simplified compensation;  and (iii) temporary admission for processing.  All three
schemes are administered by CEDOPEX.  The authorities indicated, however, that as at June 2002
only the second scheme was operational and was used to a limited extent.  The duty drawback scheme
                                                     
25 Pursuant to the programme regulations, at least 51% of the capital of a Dominican-owned enterprise
must be owned by Dominican citizens or by foreigners with a minimum of fifteen years of residency in theDominican Republic.WT/TPR/S/105 Trade Policy Review
Page 44
provides for the reimbursement of import-related duties and taxes on inputs through cheques or
compensation bonds.  Under the simplified compensation modality, exporters can request an income
tax deductible bond, equal to 3% of the f.o.b. value of the exported goods but not exceeding the
amount of customs duties paid.  The temporary admi ssion scheme provides for suspension of duty and
tax payments on imports, including those from FTZs, for further processing and re-export.
(v) Export promotion and marketing assistance
115. The Dominican Centre for Export Promotion (CEDOPEX), created by Law No. 137 of
21 May 1971, is a semi-autonomous state institution responsible for promoting Dominican exports.
CEDOPEX's activities include the organization of trade-related congresses, seminars, and commercial
events as well as the provision of specific trade information and market studies upon demand.
CEDOPEX also administers, in cooperation with th e customs authorities, the various duty drawback
and compensation schemes as provided for by the Export Promotion Law.  CEDOPEX is partly
funded by the Dominican Government and party financed by income received from services rendered
to exporters;  the allocation from the Central Government's 2002 Budget  amounts to RD$16 million.
116. Concerns have been raised about CEDOPEX's capacity to promote exports effectively,
particularly with regard to its alleged tendency for bureaucratic procedures.26  In this context the
authorities noted that CEDOPEX's activities were currently being prioritized and rationalized.
117. Santo Domingo also has a Trade Point under the Global Trade Point Network.  In addition,
the Dominican Exporters Association (ADOEXPO) ha s developed trade promotion capacity-building
measures for its members.
(vi) Export finance, insurance, and guarantees
118. In order to promote exports of non-traditional goods, the Dominican Central Bank instituted
two export finance programmes in 1999, both offering credits to exporters at preferential interestrates.
119. The National Export Finance Programme offers preshipment credits to exporting enterprises
at a fixed interest rate of 13.5%, which in June 2002 was about 12 percentage points below the market
rate.  The programme is specifically geared to enterprises in non-traditional sectors.  Eligible
enterprises must be majority-owned by Dominicans or foreigners with a minimum of 15-yearsresidency in the country.  The maximum amount to be financed is RD$6 million for short-term export
credits and RD$20 million for long-term investment or project credits.  CEDOPEX and the
Dominican Exporters Association (ADOEXPO) support the Central Bank in the execution of the
programme.  The application procedures are described in the Regulations for the National Export
Financing Programme, issued by the Central Bank in June 1999.  According to the authorities, thetotal credits disbursed under this scheme between 1996 and 2001 amount to RD$75.6 million.
120. An additional credit line is available under a programme for post-shipment credits.  Under
this scheme, up to 90% of the export value can be financed, also at an interest rate of 13.5%, with an
upper limit of US$100,000 per enterprise.  All Dominican-owned enterprises are eligible for this
programme, regardless of their industry affiliation. The provisions of this programme and theprocedures for application are laid out in the Regulations for the Financing of Post-Shipment Credits
of 1999, issued by the Central Bank.  According to  the authorities, total credits disbursed under this
scheme between 1996 and 2001 amounts to RD$1.16 billion.
                                                     
26 Statement by the Deputy-Minister of Foreign Affairs in an interview with El Caribe  [online].
Available at:  http://www.dr1.com, (29 January 2002).Dominican Republic WT/TPR/S/105
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121. According to the authorities, no publicly sponsored export insurance or guarantee
programmes are in operation.
122. In the context of the preparations for the 1999 Ministerial Conference in Seattle, the
Dominican Republic, in a joint communication with other developing countries, proposed that export
credits given by developing countries should not be considered as subsidies as long as their rates are
above LIBOR.27
(vii) Measures applied in foreign markets
123. The Dominican Republic has preferential market access to various foreign markets through
arrangements such as the Generalized System of Preferences (GSP), the Lomé IV Convention, and the
Caribbean Basin Initiative (CBI) (Chapter II(3)).  The authorities were not aware of other countries
granting less than MFN treatment to Dominican exports.
124. The CBI, expanded through the Caribbean Basin Trade Partnership Act (CBTPA), provides
unilateral preferential access for certain Dominican products to the U.S. market.28  The CBI and
CBTPA are the most important preferential schemes granted to the Dominican Republic (Table III.6).
Dominican exports under the CBI rose from US$931 million in 1996 to US$1,291 million in 1998,
but dropped to US$809 million in 2001;  export s under the CBTPA were recorded at just under
US$50 million in 2000, but mounted to close to US$1,600 million in 2001.29  The most important
products exported under these schemes are apparel and textiles, cigars and cigarettes, jewellery,
electronic components, and sugar.  Within the CBI, Dominican sugar exports benefit from tariff-rate
quotas.  The quota volume allocated to the Dominican Republic for the tax year beginning
1 October 2001 was 185,335 tons, the single largest quota for an individual country.30
125. According to data provided by CEDOPEX, Dominican exports under the GSP amounted to
US$92 million in 1999;  European countries provided the most important market.  The dominantproduct under this regime changed from ferro-nickel in 1995, to shoes in 1999.
126. The Lomé IV Convention (Cotonou Agreement) grants preferential access for certain
Dominican products, mainly agricultural goods, textiles, and electronic components, to the European
Union.  According to figures provided by CEDOPEX , Dominican exports under this regime rose from
US$93.3 million in 1995 to US$125.3 million in 1999:  this was mostly due to increasing productionof shoes and electronic components;  exports of agricultural goods stagnated over the period.
127. Under the WTO Agreement on Textiles and Clot hing, Dominican exports of textiles and
clothing to the United States are subject to quotas under a bilateral agreement.  The products under
restriction include yarn, fabrics, and various types of apparel.
31  According to the authorities,
Dominican exports of textiles and clothing to the United States amounted to US$2.4 billion in 2001.32
                                                     
27 WTO document WT/GC/W/354, 11 October 1999.
28 See also WTO (2001b), Chapter III(2).
29 Estimates from United States International Trade Commission [online].  Available at:
http://dataweb.usitc.gov.
30 U. S. Trade Representative, Press Release 01-74, 21 September 2001.
31 WTO document G/TMB/N/268, 22 July 1997.
32 WTO document G/SCM/N/71/DOM, 6 March 2002.WT/TPR/S/105 Trade Policy Review
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Table III.6
Exportsa to the U.S. under the CBI and CBTPA for selected products by HS-2 digit, 1996-01
(US$ '000)
HS Description 1996 1997 1998 1999 2000 2001
07 Edible vegetables and certain roots and tubers 16,304 17,576 19,478 16,068 17,493 19,383
08 Edible fruit and nuts, peel of citrus fruit or melons 14,276 15,174 13,077 16,568 17,553 18,074
17 Sugars and sugar confectionery 113,226 157,481 122,286 76,640 88,004 77,402
20 Preparations of vegetables, fruit, nuts, or other parts of
plants20,320 17,378 17,718 17,123 17,501 17,692
21 Miscellaneous edible preparations 12,397 10,102 11,981 14,243 13,304 20,006
22 Beverages, spirits and vinegar 9,044 15,126 12,653 10,816 13,724 19,013
24 Tobacco and manufactured tobacco substitutes 104,419 225,840 228,606 180,071 190,093 187,224
39 Plastics and articles thereof 37,991 21,787 27,855 27,742 25,842 37,243
42 Articles of leather; saddlery and harness, travel goods,
handbags and similar containers, articles of gut (other than
silkworm gut)28,036 36,284 30,061 29,712 24,174 17,862
62 Articles of apparel and clothing accessories, not knitted or
crocheted11,650 15,177 11,713 12,342 48,591 1,011,500
64 Footwear, gaiters and the like, parts of such articles 184,680 185,081 187,355 9,083 13 16,582
71 Natural or cultured pearls, precious or semiprecious stones,
precious metals;  precious metal clad metals, articles thereof;
imitation jewelry;  coin96,725 102,078 132,211 138,242 132,369 149,224
73 Articles of iron or steel 7,540 6,710 6,211 8,812 10,432 6,285
83 Miscellaneous articles of base metal 17,606 12,793 11,685 6,417 416 3,291
85 Electrical machinery and equipment and parts thereof; sound
recorders and reproducers, television recorders and
reproducers, parts and accessories165,285 186,986 202,565 216,039 193,956 174,637
90 Optical, photographic, cinematographic, measuring,
checking, precision, medical or surgical instruments and
apparatus; parts and accessories thereof46,112 84,867 218,773 891 664 1,149
Others 45,670 41,971 36,620 29,632 53,755 584,932
Total 931,282 1,152,413 1,290,848 810,441 847,883 2,361,500
a U.S. general imports at customs value from the Dominican Republic.
Source: US ITC trade dataweb at:  http://dataweb.usitc.gov/.
128. In the context of the preparations for the 1999 Ministerial Conference in Seattle, the
Dominican Republic, together with other developing countries, raised concerns that although the SPS
Agreement provided that the special needs of developing countries must be taken into account in thepreparation and application of SPS measures, this had rarely been done in practice.
33  They proposed
that if an SPS measure created a problem for more than one developing country, then it should be
withdrawn.  In the context of preparations for this Review the authorities indicated that a number of
SPS measures applied by some of the Dominican Republic's trading partners constituted an obstacle
to Dominican exports.  According to the authorities, this was the case for various fruits and vegetablesin the case of the United States and fertilizers and coconuts in the case of Brazil.
129. The authorities were not aware of any export-restraint agreements limiting exports from
foreign countries to the Dominican market.
                                                     
33 WTO document WT/GC/W/354, 11 October 1999.Dominican Republic WT/TPR/S/105
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(4) OTHER MEASURES AFFECTING PRODUCTION AND TRADE
(i) Incentives
(a) Programmes for enterprise development
130. The support of micro, small and medium-sized enterprises (SMEs) constitutes a key element
in the Dominican Republic's development strategy.  Within the Ministry of Industry and Trade, the
National Council for Micro, Small and Medium-Sized Enterprises is responsible for the formulationof strategies and the coordination of policies.  Some of these programmes, such as the PYMEX and
PROMIPYME initiatives executed by CEDOPEX, expressly target the capacity of small and medium-
sized enterprises to compete in international markets.
(b) Assistance for research and development and agricultural programmes
131. The Dominican Institute of Industrial Technology (INDOTEC), founded as a department of
the Central Bank in 1975, is the principal public entity responsible for promoting technological
research and development geared towards the industrial sector. INDOTEC also provides various
technical consultancy programmes for interested enterprises.
132. The National Council for Agriculture and Forestry Research (CONIAF), established by
Decree No. 687-00 of 2 September 2000, is in charge of coordinating research and defining nationalpriorities for agriculture and forestry;  it also administers the National Fund for Agriculture and
Forestry Research (FONIAF).  The Council is composed of representatives of all major public and
private institutions involved in agricultural research and presided by the Minister of Agriculture.
According to the authorities, public expenditure for agricultural research amounted to
RD$42.3 million in 1998 and RD$74.9 million in 1999.
34  More recent figures were not available.
133. The Dominican Agriculture and Forestry Research Institute (IDIAF) is the Dominican
Republic's main public institution to conduct agricultural research and development.  The centralobjective of IDIAF and its four regional research centres is to raise the technology level of agriculture
and forestry producers, following the priorities established by CONIAF.  The State Budget for 2002
assigned RD$156.7 million to IDIAF.
134. Agricultural research and development is also undertaken by various private sector
institutions.  The Agricultural and Forestry De velopment Center (CEDAF), for example, promotes
research, and provides training and technical assistance to agricultural producers.  CEDAF has
received funding from the private sector, the Dominican Government, and the United States Agency
for International Development (USAID).
135.  The Ministry of Agriculture offers various technical assistance services with a view to
modernizing the agriculture sector.  Some of the services target in particular small and medium-sizedproducers, such as training on land preparation, while others are more general, such as assistance to
control plagues and diseases.  In 1999, government expenditure for agricultural measures exempt
from the reduction commitment (green box) amounted to RD$440 million, of which RD$259 million
were spent for infrastructure services and RD$74.9 million for agricultural research.
35
                                                     
34 WTO documents G/AG/N/DOM/2, 6 January 2000, and G/AG/N/DOM/4,12 April 2001.
35 WTO document G/AG/N/DOM/4, 12 April 2001.WT/TPR/S/105 Trade Policy Review
Page 48
(c) Taxes
136. The Dominican Republic's maximum income tax rate is 25%, and the VAT, known as the Tax
on the Transfer of Industrialized Goods and Services (ITBIS), is 12%.  In addition to the fiscal
incentives accorded by the Free Trade Zone Law, several products and services, particularly
agricultural and livestock products, and social services, are exempted from ITBIS.  Vehicles, and
household and luxury goods are subject to specific taxes of up to 80% (section 2(v)).
(ii) Regional assistance
137. To promote economic development in specific geographic areas, most notably its land border
area, the Dominican Republic adopted a number of legal instruments in 2001 that grant advantages in
form of tax and tariff exemptions to enterprises located in these areas.
138. Law No. 28-01 of 1 February 2001 provides for tax and tariff exemptions for enterprises
located in seven border provinces.36  Enterprises benefit from full exemption of all taxes and tariffs
and a price reduction of 50% for airport, transit, and harbour fees.  Tax exemptions and fee reductions
are granted for a period of twenty years after the enterprise initiates operations, but not beyond 2026.
Tariff exemptions are granted until 2021 regardless of the year the enterprise started operations.
Furthermore, the Law establishes a Coordination Council for Border Development.  The Councilapproves the installation of enterprises under this regime and supports them in the administrative
work involved.
139. Law No. 117-01 of 28 June 2001 established the San Pedro de Macorís Free Trade Zone, a
separate customs territory with its own administra tion.  Pursuant to Article 26 of the Law, goods
entering this zone are exempt from all kind of taxes, tariffs and other fiscal charges.
140. With a view to promoting minerals processing in the Dominican Republic, Decree No. 947-01
of 19 September 2001 allows for the establishment of Mining Industry Parks in ten specificgeographic areas.
37  Enterprises in these Parks must be approved by the National Council for Free
Trade Zones;  they are granted the same advantages as laid out by the Free Trade Zone Law.
However, moral or natural persons that possess exploration or exploitation licences are excluded from
these benefits.
141. The Tourism Development Law (Law No. 158-01)  of 9 October 2001 is aimed at promoting
tourism development in specifically defined priority regions.  In particular, the Law offers exemptions
from income tax and a 50% reduction of ITBIS for enterprises investing in tourism-related activities.
(iii) State-trading enterprises, state-owned companies, and privatization
142. According to the authorities, the Dominican Republic has no public or private enterprises
with the exclusive right to engage in foreign trade;   this has yet to be notified through the formal
WTO notification procedures.  They pointed out that the remaining enterprises with public capital did
not enjoy any privileges and had to compete in the market.
143. Since the last Review of the Dominican Republic, in 1996, government involvement in
economic activities has further diminished.  In 1997, the Government enacted the Public Enterprise
                                                     
36 The provinces concerned are:  Pedernales, Independencia, Elias Piña, Dajabón, Monecristi, Santiago
Rodríguez, and Bahoruco.
37 The provinces concerned are:  Pedernales, Dajabón, Azua, Santiago, Barahona, La Altagracia, Puerto
Plata, Samaná, San Cristóbal, and the National District in the area of Boca Chica.Dominican Republic WT/TPR/S/105
Page 49
Reform Law (Law No. 141-97), seeking to increas e private ownership and management of state
enterprises.  The Law created the Commission for the Reform of Public Enterprises (CREP) as the
agency responsible for the conduct and direction of the reform and transformation process.  This was
to be effected principally through what is referred to in Article 12 of the Law as "capitalization",
whereby the private investor must inject capital to an amount equal to, or greater than, the value of the
enterprise to be privatized to create a new company.   Pursuant to Article 13 of the Law, at least 50%
of the newly created company must be owned by  the Government. The private investor, however,
assumes responsibility for the management of the new enterprise.  Other modes of reform, such as
concessions, transfers of shares or assets, and sale of shares, were also permitted but only as a second
option.
144. Table III.7 provides an overview of the privatization process.  To date, the privatization
programme has generated divestiture receipts of about US$1.1 billion.
Table III.7
Privatization of state-owned enterprises
State-owned interests Sector Action Date
Concessions
State Sugar Council Agriculture 30-year lease to the following companies:
CONAZUCAR (five mills)
Central Sugar Consortium (one mill)
East Central Sugar (two mills)
Canabrava Agroindustrial Consortium (two mills)Dec-99
Salt and Plaster Mines Mining 25-year lease to National Cement Dec-99
National Marble Mining 25-year lease to Marmotech, S.A Apr-00
The Americas Airport Airport
Maria Montez Airport Airport
Gregorio Luperon Airport Airport
Arroyo Barril Airport Airport25 years concession to Century 21 Dominican Airport
Consortium (AERODOM) to modernize, expand, and
administer four airportsJul-99
Divestiture
Ozama Mill Corporation Foodstuff 50% of shares sold to Malla & Company Apr-99
North-South Distribution Company Electricity 50% of assets sold to Spain's Union Fenosa Aug-99
East Distribution Company Electricity 50% of assets sold to AES Distribution Dominicana of
Gran CaimanAug-99
Itabo Generating Company Electricity 50% of assets sold to New Caribbean Investment
Consortium of the United States and ChileSep-99
Haina Generating Company Electricity 50% of assets sold to Seaboard Corporation of Gran
CaimanOct-99
Pending
San Rafael Insurance Company Financial Currently being transferred to Banco de Reservas To be determined
Dominican Aviation Company Airline Under study To be determined
Society Real Estate Services Under study To be determined
National Glass Industry Manufacturing Currently in consultation with a family who is
reclaiming the propertyTo be determined
Dominican Paint Industry (PIDCA) Manufacturing Notice inviting interested investors published to be determined
National Paper Industry Manufacturing Under study to be determined
Dominican Bags and Rope Company Manufacturing Under study to be determined
Enriquillo Nail Company Manufacturing Under study To be determined
Dominican Industrial Footwear Company
(DOINCA)Manufacturing Under studyTo be determined
Table III.7 (cont'd)WT/TPR/S/105 Trade Policy Review
Page 50
State-owned interests Sector Action Date
FA-2 Tannery Company Manufacturing Under study To be determined
West Indian Fabric Manufacturing Under study To be determined
Vegetable Oil Company Foodstuff Under study To be determined
Industrial Confectionery Company Foodstuff Under study To be determined
Salt Refinery Company Foodstuff Under study To be determined
Retread Plant Company Auto Mechanic Under study To be determined
Tecnometal Company Auto Mechanic Under study To be determined
Dominican Battery Company Auto Mechanic Under study To be determined
Commercial Atlas Company Auto Mechanic Under study To be determined
CORPOHOTELS Tourism Under study To be determined
Source : Comisión de Reforma de la Empresa Publica (1999), Memorias de la Reforma [online].  Available at:  
http://www.crepdom.gov.do/.
145. Several enterprises remain entirely state-owned, most notably:  ports and water facilities;
water supply and sewage corporations in Santiago and Santo Domingo;  two banks (Banco deReservas and Banco Agrícola);  and the transmission lines and the hydroelectric generation facilities
of the Dominican Electricity Cor poration (CDE).  Moreover, as a result of the principal mode of
reform (capitalization), the Government retains significant interest in several of the privatizedenterprises.
(iv) Competition policy
146. The Dominican Republic does not have a legal framework for competition policy, although
competition provisions are part of various individual regulations contained in the Constitution, the
Penal Code, the Copyright Law, and the Industrial Property Law.  Financial services,
telecommunications, and electricity are regulated by their respective supervisory agencies, namely:the Superintendence of Banks, the Dominican Institute for Telecommunications, and theSuperintendence for Electricity.
147. Article 8 of the Constitution protects the exercise of free enterprise and prohibits monopolies
of private corporations;  it allows state monopolies however, and those provided for by law.  The
Penal Code prohibits acts of collusion among business executives, particularly collusive price-setting.
To protect consumers, Law No.13 of 27 April 1963 allows price controls for certain basic articles andservices.  Law No. 112-00 of 1 November 2000 allows the Ministry of Industry and Trade to fix retail
prices for petroleum and petroleum products on a weekly basis.  Domestic sugar prices have also been
subject to controls.  The Copyright Law and the Industrial Property Law define various actions ofunfair competition in connection with intellectual property.
148. The authorities indicated that legislation on consumer protection and competition was
presented to Congress in 1998, but not adopted, and that a new draft law would be presented to
Congress in the course of 2002.  The draft law provides for the establishment of an Institute for
Market Regulation with the authority to penalize anti-competitive conduct.
(v) Intellectual property rights
(a) Legal and institutional framework
149. The Dominican Republic has been a member of the World Intellectual Property Organization
(WIPO) since June 2000, and is a signatory to a number of intellectual property rights (IPRs)
conventions (Table III.8).Dominican Republic WT/TPR/S/105
Page 51
Table III.8
The Dominican Republic's participation in international IPR agreements
Agreement, convention or treaty (latest Act in which the Dominican Republic
participates)Date on which the Dominican Republic
became party (date it became party to
an Act)
Bern Convention for the Protection of Literary and Artistic Works (Paris) December 1997 (December 1997)
Convention Establishing the World Intellectual Property Organization July 1967 (June 2000)
Madrid Agreement for the Repression of False or Deceptive Indications of Source on Goods April 1951 (April 1951)
Paris Convention for the Protection of Industrial Property (Stockholm) July 1890 (April 1951)
Rome Convention for the Protection of Performers, Producers of Phonograms and
Broadcasting OrganisationsJanuary 1987 (October 1998)
Source: WTO Secretariat, based on WIPO online information.  Available at:  http://www.wipo.in t/treaties/ 
general/parties.html#1.
150. The Dominican Republic's Constitution (Article 8, sub-clause 14) recognizes the exclusive
and temporary property of inventions and discoveries as well as of scientific, artistic, and literary
productions.  Since its last Trade Policy Review in 1996, the Dominican Republic has adopted new
laws and regulations on copyrights and industrial property in order to facilitate compliance with its
international commitments.  Thus, the main dedicated domestic statutes for the protection of IPRs in
the Dominican Republic are the Industrial Property Law (No. 20-00) of 10 May 2000 and its
Implementing Regulations (No. 599-01 of 1 June 2001, replacing Decree No. 408-00), and theCopyright Law (No. 65-00) of 26 July 2000 and its Implementing Regulations (No. 362-01) of
14 March 2001.  These statutes cover the major areas referred to in the TRIPS Agreement
(Table III.9).
151. The Dominican Republic notified to the WTO the text of the Industrial Property Law and its
Implementing Regulations as well as the Copyright Law and its Implementing Regulations.
38  T h e
Dominican Republic notified its IPRs contact point to the WTO as the Ministry of Industry and
Trade.39
152. The TRIPS Council reviewed the Dominican Repub lic's IPR statutes in August 2001.  The
Dominican Republic provided answers to questions asked by five Members.40
153. The National Office for Industrial Property ( ONAPI), established under the Ministry of
Industry and Trade in 2000, is the government entity in charge of granting industrial property rights
and registering geographical indications.  The National Copyright Office (ONDA), established underthe Ministry of Education in 1993, is responsible for maintaining the National Copyright Registry for
all kind of works protected by the Copyright Law.  Copyright protection is granted by the mere fact of
creation, irrespective of any formality;  nevertheless, for greater security, authors may request the
registration of their works, which will have only declaratory effect.
154. Parallel imports may apparently be prevented under the Copyright Law but not under the
Industrial Property Law.  Under the latter (Article 30), a patent does not give the right to prevent the
                                                     
38 The text, in Spanish, of Law No. 20-00 and its Implementing Regulations, and Law No. 65-00 and its
Implementing Regulations are contained in WTO documents IP/N/1/DOM/I/1, IP/N/1/DOM/I/2,IP/N/1/DOM/C/1 and IP/N/1/DOM/C/2, all of 30 April 2002.
39 WTO document IP/N/3/Rev.6, 1 March 2002.
40 Questions addressed to the Dominican Republic and the corresponding replies are available in WTO
documents IP/C/W/258, 27 April 2001;  IP/C/W/261, 9 May 2001;  IP/C/W/261/Add.1, 13 June 2001;IP/C/W/263, 14 May 2001;  IP/C/W/263/Add.1, 28 August 2001;  IP/C/W/268/Add.1, 5 July 2001;IP/C/W/268/Add.2, 5 July 2001;  IP/C/W/274, 12 June 2001;  IP/C/W/285, 1 August 2001;  andIP/C/W/285/Add.1, 28 September 2001.WT/TPR/S/105 Trade Policy Review
Page 52
sale, rental, use, usufruct, importation or any other mode of marketing of a product protected by the
patent or obtained by the patented process, once that product has been introduced into the commerce
of any country, with the consent of the owner or a li censee or in any other lawful way.  On the other
hand, the Copyright Law (Article 80) limits economic rights to the rights expressly granted or
licensed and to the period and geographical area contractually agreed;  it also provides that the
interpretation of legal aspects concerning copyrights must always be restrictive, recognizing no rightsbroader than those expressly granted or licensed through a contract.  The Law also gives authors
inalienable moral rights, including the right to wi thdraw their work from circulation at any time.
155. In the context of the AIDS crisis, the Dominican Republic, together with more than
50 developing countries, sponsored a proposal to the TRIPS Council for a ministerial declaration on
the TRIPS Agreement and public health.
41  The submission proposes that, "nothing in the TRIPS
Agreement shall prevent Members from taking measures to protect public health."  The declaration
would allow governments additional instruments to protect public health, notably through compulsory
licensing and parallel importation, in particular in the post-TRIPS era when pharmaceuticals will be
patentable subject-matter in developing countries.  The proposal resulted in the WTO Ministerial
Declaration on the TRIPS Agreement and Public Health.42
Table III.9
Overview of IPR protection in the Dominican Republic, 2001
Subject Coverage Duration Selected exclusions and limitations
Copyright and
related rightsOriginal works susceptible of disclosure or
reproduction by any means related to, among
other areas, literature, music, drama, dance,
photography, architecture, audiovisual arts,painting, radio and television, computer
programs, and compilations including data
basesLife of the author plus
50 years;  for
audiovisual works, 70
years from the date offirst publication or
presentationNo violation is deemed to occur when
works are used for no direct financial
gain, or for educational or research
purposes
No authorization is required for, among
others, the reproduction of current affairs
articles, photographs, and illustrations
unless this is expressly prohibited by theright holder;  speeches held in assemblies,
judicial debates or conferences, and
reproduction for research purposes
The owner retains the right to prohibit
reproduction, modification, and
distribution of copyrighted works
PatentsaAny invention that is capable of industrial
application, is novel, and has a degree of
inventiveness20 years from the date
of filing, non-
extendableProduct processes and materials such as
economic models and business plans,
scientific theories and mathematical
methods, computer software, surgical,therapeutic or diagnostic methods, plant
and animals (except micro organisms);
inventions harmful to the health or life ofpersons or animals, or capable of
damaging the environment
Compulsory licences may be granted if a
patent is not exploited within three yearsafter the grant or four years after filing, if
the invention has not been exploited or
when the exploitation has beeninterrupted for more than one year
without justifiable cause
Public interest licences may be grantedfor the use of a patent in case of
emergency of national security
Table III.9 (cont'd)
                                                     
41 WTO document IP/C/W/312, 4 October 2001.
42 WTO document WT/MIN(01)/DEC/W/2, 14 November 2001.Dominican Republic WT/TPR/S/105
Page 53
Subject Coverage Duration Selected exclusions and limitations
Industrial
designsaDesigns that are novel 5 years from the date
of filing, extendablefor two additional
periods of 5 yearsProtection does not include elements of
design that are determined solely by therealization of a technical function and do
not incorporate any arbitrary contribution
of the designer, nor elements of designthat must be reproduced to permit the
product that incorporates it to be
mechanically mounted or connected toanother product of which it constitutes an
integral part
Utility modelsaAny invention that is capable of industrial
application, novel, and has a degree of
inventiveness15 years from the date
of filingProcedures and chemical, metallurgical or
any other kind of substance or compound
Trade marksaAny visible symbol that serves to distinguish
the products or services of one companyfrom another;  includes commercial names,
signs, and emblems10 years from the date
of filing, renewableRegistration of a trade mark does not
confer upon its owner the right to prohibita third party from the use of the trade
mark in relation to legitimately marked
products
Geographical
indicationsaAny name, denomination, expression, image
or symbol that indicates, directly or
indirectly, that a product or service
originated in a country, in a group ofcountries, in a region, in a locality or in a
specific place;  includes denominationIndefinite duration
a No protection is granted when this may be contrary to public order or morality or contravene other legal provisions.
Source : WTO Secretariat.
156. With twelve other developing countries, the Dominican Republic submitted a communication
in June 2002 proposing that, among other things, solutions based on Paragraph 6 of the Ministerial
Declaration on the TRIPS Agreement and Public Health  should not be detrimental to the Agreement's
technology transfer objectives, and that the TRIPS Council should recommend an authoritative
interpretation of the Agreement to recognize the right of WTO Members to authorize third parties to
make, sell, and export patented public-health-related products without the consent of the patent holder
to address public health needs in another country.43  In another communication, the Dominican
Republic and ten other developing countries have proposed that the TRIPS Agreement should be
amended to impose additional conditions on the granting of patents relating to biological materials or
traditional knowledge as to ensure a mutually supportive relationship between TRIPS and theConvention on Biological Diversity.
44
157. The Dominican Republic's FTA with CARICOM provides for the development of an
agreement on IPR issues between the parties.  Pending the adoption of such an agreement, the
provisions of the TRIPS Agreement and other relevant international agreements apply.  Chapter XIV
of the FTA with the CACM confirms the parties' rights and obligations under the TRIPS Agreementand provides for the establishment of a Committee on Intellectual Property.  There is also a draft
agreement on IPRs in the FTAA.
45
(b) Enforcement
158. The Dominican Republic has provided WTO Members with information regarding IPR
enforcement in the context of the Checklist of Issues on Enforcement.46  The Industrial Property Law
                                                     
43 WTO document IP/C/W/355, 24 June 2002.
44 WTO document IP/C/W/356, 24 June 2002.
45 See FTAA online information.  Available at:  http://www.alca-ftaa.org/ftaadraft/eng/ngipe_1.asp.
46 WTO document IP/N/6/DOM/1, 21 June 2001.WT/TPR/S/105 Trade Policy Review
Page 54
and the Copyright Law contain provisions for the enforcement of IPRs, including penal procedures.
Both Laws provide for border measures if there is good reason to suspect importation of goods that
infringe IPRs.  In case of infringement of industrial property rights, courts may order preventive
measures upon request and in case of sufficient proof, but ONAPI may not act on its own initiative.
159. With regard to copyrights and related rights, ONDA is the competent national authority
responsible for preventive and protective administrative action.  The Copyright ImplementingRegulations seem to give ONDA a potentially stringent mechanism to enforce the exclusive privileges
of copyright holders.  Article 109 of those Regula tions required the ONDA to maintain a registry of
parties engaged in the importation, distribution or marketing of goods, services or equipment linked to
copyrights.  Registration must be renewed annually and is compulsory for, among others, video shops,
importers and distributors of recorded audio-visu al material or computer programs, importers and
manufacturers of devices for the reproduction of c opyrighted works, and broadcasting stations.
160. Right holder representatives acknowledge Dominican Republic's considerable progress to
ensure the protection of IPRs, notably through the adoption of new legislation and strengthened
institutional capacity, but argue that infringement levels remain high.
47  In the past, right holders'
concerns about adequate IPR protection led the United States to review the Dominican Republic'seligibility to receive benefit under the Generalized System of Preferences;  providing such protection
remains a consideration for the Dominican Republic to be granted preferences under the U.S. GSP
and the Caribbean Basin Initiative, both of paramount importance for Dominican exports
(Chapter II(3)(iii)).
                                                     
47 For details see the International Intellectual Property Alliance 2002 report on IPR protection in the
Dominican Republic [online].   Available at:  http://www.iipa.com/rbc/2002/2002SPEC301DR.pdf.