G/SCM/N/299/DOM/Rev.2  
G/SCM/N/401/DOM/Suppl.1  
 
17 January 2024  
(24-0385) Page: 1/7 
Committee on Subsidies and  
Countervailing Measures  Original: Spanish  
 
  
SUBSIDIES  
FINAL TRANSPARENCY NOTIFICATION (FOR 2015) PURSUANT TO  
THE PROCEDURES IN THE GENERAL COUNCIL DECISION IN  
DOCUMENT WT/L/691 ON THE EXTENSIONS UNDER  
SCM ARTICLE 27.4 OF THE TRANSITION PERIOD  
FOR THE ELIMINATION OF EXPORT SUBSIDIES  
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI.1 OF THE GATT 1994 AND  
ARTICLE  25 OF THE AGREEMENT ON SUBSIDIES AND COUNTERVAILING MEASURES  
DOMINICAN  REPUBLIC  
The following communication, dated and received on 15 January 2024, is being circula ted at the 
request of the delegation of the Dominican Republic.  
 
_______________  
 
 
In accordance with the format of the questionnaire in document G/SCM/6, prepared and adopted by 
the Committee on Subsidies and Countervailing Measures, the Dominican Republi c hereby notifies 
the following:  
1. Title of the subsidy programme, if relevant, or brief description or identification of the subsidy  
Law No. 8 -90 to "promote the establishment of new free zones and expand existing ones", which 
establishes a tax  exemption programme for enterprises manufacturing goods or providing services, 
located within geographic areas known as free zones.  
2. Period covered by the notification  
This notification covers the period 1 January to 31 December 2022.  
3. Policy objective an d/or purpose of the subsidy  
The objectives of the programme are, inter alia , job creation, workforce training, development of 
social responsibility programmes, promotion of balance -of-payments equilibrium (foreign exchange 
generation) and establishment of  regional economic and social development programmes.  G/SCM/N/299/DOM/Rev.2 • G/SCM/N/401/DOM/Suppl.1  
 
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  4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted)  
The underlying reasons for this programme were to provide training, to transfer technol ogy, to 
attract local and foreign investment and to create employment at various points within the national 
territory, including in economically deprived areas, such as the border areas with Haiti. This 
programme was created under Law No. 8 -90 of 15 Januar y 1990.  
5. Form of the subsidy (i.e., grant, loan, tax concession, etc.)  
Enterprises manufacturing goods or providing services and operating under Law No. 8 -90 are exempt 
from payment of income tax and customs duties on the importation and exportation of the  raw 
materials, equipment and machinery used to produce these goods. The subsidy is therefore a tax 
concession.  
6. To whom and how the subsidy is provided (whether to producers, to exporters, or others; 
through what mechanism; if the latter, how determined)  
The programme exempts natural and legal persons eligible under the free  zone regime established 
by Law No. 8 -90 from the taxes and duties specified in point 5 of this questionnaire.  
7. Subsidy per unit or, in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possibl e, the average subsidy per unit in the previous 
year). Where provision of per unit subsidy information (for the year covered by the 
notification, for the previous year, or both) is not possible, a full explanation  
Law No. 8 -90 does not provide for the audi ting, on the basis of either units or operating results, of 
manufacturing operations conducted within free zones by enterprises operating under the free  zone 
regime, with a view to estimating the fiscal cost to the Dominican State of attracting private 
investment for the creation of sources of employment.  
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
Enterprises eligible for the benefits granted under Law No. 8 -90 are entitled to a free zone operating 
licence, normally valid for up to 20 years in the border region with Haiti and 15 years in the rest of 
the country. Beyond this period, licence  holders may apply for a renewal.  
9. Information on paragraph 2(a) of General Council Decision WT/L/691  
In order to comply fully with paragraphs 1(e) and (f) of General Council Decision WT/L/691, 
the Dominican Republic completed its action plan and eliminated export subsidies. For example, by 
means of Law No. 139 -11 of 24 June 2011, it amended Article 17 of Law No. 8 -90 in respect of 
export performance requirements to enable companies under the programme to market their goods 
and services locally without quantitative limits and without the proviso that they use local raw 
materials in preference to imported on es.  
10. Statistical data permitting an assessment of the trade effects of the subsidy. The specific 
nature and scope of such statistics is left to the judgement of the notifying Member. To the 
extent possible, relevant and/or determinable, however, it is desi rable that such information 
include statistics of production, consumption, imports and exports of the subsidized product(s) 
or sector(s):  
a. For the three most recent years for which statistics are available;  
  G/SCM /N/299/DOM/Rev.2 • G/SCM/N/401/DOM/Suppl.1  
 
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  b. For a previous representative year, whic h, where possible and meaningful, should be the latest 
year preceding the introduction of the subsidy or preceding the last major change in the subsidy.  
   
  G/SCM/N/299/DOM/Rev.2 • G/SCM/N/401/DOM/Suppl.1  
 
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Evolution of the main variables of free zones  
2003-2022 
Year Existing 
industrial 
estates  Enterprises  Jobs Exports  
(USD million)  Total accumulated 
investment  
(USD million)  Local 
expenditure  
(USD million)  Average weekly 
salary  
(DOP)  Surface area 
of  
industrial 
premises in 
use 
(sq. ft.)  Workers  Technical 
staff 
2003 54 531 173,367  4,406.8  1,329.6  810.8  961.34  2,010.79  22,066,221.0  
2004 58 569 189,853  4,685.2  1,690.2  863.4  1,131.25  2,539.82  24,332,619.0  
2005 57 556 154,781  4,749.7  1,989.6  1,005.4  1,347.09  2,702.67  24,540,452.8  
2006 56 555 148,411  4,678.6  2,471.7  973.7  1,465.19  3,009.97  26,338,045.1  
2007 53 526 128,002  4,525.2  2,457.3  1,010.9  1,480.37  3,127.22  24,609,122.9  
2008 48 525 124,517  4,354.1  2,611.2  954.3  1,652.80  3,533.22  25,299,744.6  
2009 47 553 112,618  3,793.5  2,738.1  959.0  1,819.00  3,689.56  29,037,744.6  
2010 48 555 121,001  4,194.4  2,881.6  1,123.1  1,829.03  3,841.64  29,268,270.4  
2011 51 578 125,117  4,767.1  2,913.7  1,163.5  1,967.15  3,892.63  30,067,075.7  
2012 53 584 134,226  4,918.9  3,133.9  1,298.2  2,175.88  4,204.14  30,385,854.6  
2013 55 602 144,383  4,976.4  3,442.8  1,326.0  2,352.49  4,483.04  33,804,830.4  
2014 60 614 153,342  5,261.7  3,794.9  1,368.1  2,508.76  4,773.39  34,899,477.3  
2015 65 630 161,257  5,423.6  4,043.1  1,434.5  2,536.18  4,850.50  35,869,810.4  
2016 68 645 163,147  5,503.9  4,326.8  1,457.9  2,659.03  5,148.21  36,958,201.7  
2017 71 665 165,724  5,709.6  4,473.1  1,482.7  2,798.37  5,302.91  37,283,897.4  
2018 74 673 171,726  6,035.2  4,977.8  1,621.4  3,003.60  5,921.50  39,545,337.9  
2019 75 695 176,555  6,249.5  5,107.0  1,694.6  3,232.90  6,092.60  40,655,189.2  
2020 75 692 168,200  5,894.5  5,189.0  1,580.3  3,298.67  6,199.65  41,081,319.5  
2021*  79 734 183,232  7,179.6  5,903.1  1,944.3  3,646.83  6,388.53  42,452,389.5  
2022**  84 774 192,461  7,832.8  7,160.9  1,993.6  4,222.61  7,032.88  47,488,229.3  
Growth % 2021 -2022  6.3 5.4 5.0 9.1 21.3 2.5 15.8 10.1 11.9 
Source for exports and local expenditure: Central Bank of the Dominican Republic.  
* Revised export and local expenditure figures.  
** Preliminary export and local expenditure figures.  G/SCM/N/299/DOM/Rev.2 • G/SCM/N/401/DOM/Suppl.1  
 
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  Contribution of free zones to the gross domestic product (GDP) of the Dominican Republic, 2007 -2022 
DOP million  
Year GDP Free zones  Contribution (%)  
2007 1,458,416.5  58,296.4  4.0 
2008 1,661,642.7  57,838.6  3.5 
2009 1,736,041.1  59,002.2  3.4 
2010 1,983,201.7  64,621.3  3.3 
2011 2,210,213.9  73,420.6  3.3 
2012 2,386,016.2  81,678.1  3.4 
2013 2,619,769.7  88,554.8  3.4 
2014 2,925,665.10  96,492.51  3.3 
2015 3,205,655.14  105,116.65  3.3 
2016 3,487,292.51  116,137.07  3.3 
2017 3,802,655.77  125,039.12  3.3 
2018 4,235,846.77  141,858.66  3.3 
2019 4,562,235.08  145,663.56  3.2 
2020 4,456,657.38  157,214.95  3.5 
2021 5,392,714.10  195,678.18  3.6 
2022*  6,260,564.02  205,037.21  3.3 
Source:  Central Bank of the Dominican Republic.  
* Preliminary figures.  
 
  
G/SCM/N/299/DOM/Rev.2 • G/SCM/N/401/DOM/Suppl.1  
 
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  Free zone exports by principal activities, 2013 -2022 
(USD million)  
Activity  2013  2014  2015  2016  2017  2018  2019  2020  2021*  2022**  Share 
% Growth 
% 
21/22  
Medical and 
pharmaceutical 
products  1,230.5  1,274.2  1,361.1  1,497.0  1,487.1  1,556.5  1,660.1  1,810.4  1,929.3  2,247.7  28.7 16.5 
Tobacco and 
tobacco products  531.6 586.9 660.3 695.9 798.4 823.5 885.4  897.2 1,198.5  1,217.5  15.5 1.6 
Electrical and 
electronic goods  658.2 752.8 707.3 750.6 883.1 1,017.9  1,067.3  1,105.4  1,153.4  1,197.4  15.3 3.8 
Clothing and 
textiles  1,219.1  1,241.9  1,247.9  1,102.8  1,095.9  1,094.6  1,037.7  689.4 892.7 1,019.1  13.0 14.2 
Jewellery  315.6 283.7 369.9 407.0 422.2 490.6 530.5  429.2 762.8 730.3 9.3 -4.3 
Footwear  422.2 449.5 443.0 424.7 386.8 303.5 279.7  202.2 201.4 204.8 2.6 1.7 
Other 599.2 672.7 634.1 625.9 636.1 748.6 788.8  760.7 1,041.5  1,216.0  15.5 16.8 
Total 4,976.4  5,261.7  5,423.6  5,503.9  5,709.6  6,035.2  6,249.5  5,894.5  7,179.6  7,832.8  100.0  9.1 
Source:  Central Bank of the Dominican Republic.  
* Revised figures.  
** Preliminary figures.  
 
G/SCM/N/299/DOM/Rev.2 • G/SCM/N/401/DOM/Suppl.1  
 
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  Comparison of domestic and free zone exports, 2003 -2022 
(USD million)  
Source:  Central Bank of the Dominican Republic.  
* Revised figures.  
** Preliminary figures.  
 
__________  
Year Domestic 
exports  Relative 
variation  Free zone 
exports  Relative 
variation  Total exports  Free zone 
exports /Total 
exports %  
2003 1,064.0  --- 4,406.8  --- 5,470.8  80.6 
2004 1,250.7  17.5 4,685.2  6.3 5,935.9  78.9 
2005 1,395.1  11.5 4,749.7  1.4 6,144.8  77.3 
2006 1,931.4  38.4 4,678.6  -1.5 6,610.0  70.8 
2007 2,635.1  36.4 4,525.2  -3.3 7,160.3  63.2 
2008 2,393.9  -9.2 4,354.1  -3.8 6,748.0  64.5 
2009 1,689.3  -29.4 3,793.5  -12.9 5,482.8  69.2 
2010 2,621.6  55.2 4,194.4  10.6 6,816.0  61.5 
2011 3,594.8  37.1 4,767.1  13.7 8,361.9  57.0 
2012 4,016.6  11.7 4,918.9  3.2 8,935.5  55.0 
2013 4,448.0  10.7 4,976.4  1.2 9,424.4  52.8 
2014 4,637.2  4.3 5,261.7  5.7 9,898.9  53.2 
2015 4,018.2  -13.3 5,423.6  3.1 9,441.8  57.4 
2016 4,335.7  7.9 5,503.9  1.5 9,839.6  55.9 
2017 4,425.0  2.1 5,709.6  3.7 10,134.6  56.3 
2018 4,602.9  4.0 6,035.2  5.7 10,638.1  56.7 
2019 4,943.2  7.4 6,249.5  3.6 11,192.7  55.8 
2020 4,407.4  -10.8 5,894.5  -5.7 10,301.9  57.2 
2021*  5,306.8  20.4 7,179.6  21.8 12,486.4  57.5 
2022**  5,944.1  12.0 7,832.8  9.1 13,776.9  56.9