WT/TPR/S/319/Rev.1  
13 November 2015  
(15-6011)  Page: 1/152  
Trade Policy Review Body  
 
 TRADE POLICY REVIEW 
REPORT BY THE SECRETARIAT 
DOMINICAN REPUBLIC  
Revision 
This report, prepared for the fourth Trade Policy Review of Dominican Republic, has been drawn up 
by the WTO Secretariat on its own responsibili ty. The Secretariat has, as required by the 
Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement 
Establishing the World Trade Organization), sought clarification from Dominican Republic on its trade policies and practices.  
Any technical questions arising from this report may be addressed to Mr Angelo Silvy 
(tel.: 022 739 5249) and Mrs Ana Cristina Molina (tel.: 022 739 6060).  
Document WT/TPR/G/319 contains the policy statement submitted by Dominican Republic. 
 
 
Note: This report was drafted in Spanish. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 2 - 
 
  CONTENTS 
SUMMARY ....................................................................................................................... . 8 
1   ECONOMIC ENVIRONMENT ........................................................................................ 12  
1.1   Growth, struct ure and empl oyment ............................................................................. 12 
1.2   Fisca l policy ........................................................................................................... .. 16 
1.3   Monetary and exchange-rate policy ............................................................................. 18 
1.4   Balance of payments ................................................................................................. 21 
1.5   Developments in tr ade and invest ment flows ................................................................ 23 
1.5.1   Trad e in goods ...................................................................................................... 23 
1.5.1.1   Composition of trade in goods ............................................................................... 23 
1.5.1.2   Direction of merchandise trade .............................................................................. 25 
1.5.2   Trade in services ................................................................................................... 27 
1.5.3   Foreign di rect inve stment........................................................................................ 28 
1.6   Outlook ................................................................................................................... 29 
2   TRADE AND INVESTMENT REGIMES ........................................................................... 31  
2.1   General legal and institutional framework ..................................................................... 31 
2.2   Trade policy form ulation and ob jectives ....................................................................... 32 
2.3   International trade relations ....................................................................................... 33 
2.3.1   World Trade Organization ........................................................................................ 33 
2.3.2   Regional agreements .............................................................................................. 34 
2.3.2.1   Agreement between the European Union and CARI FORUM......................................... 37 
2.3.2.2   Free Trade Agreement between th e United States, Central America and the 
Dominican Republic  (CAFTA-DR) ........................................................................................ 38 
2.3.2.3   Free Trade Agreem ent with Central America............................................................ 39 
2.3.2.4   Free Trade Ag reement with  CARICOM .................................................................... 40 
2.3.2.5   Partial Scope Agreement with Panama ................................................................... 40 
2.3.3   Other agreements and arrangements ........................................................................ 40 
2.4   Foreign inve stment regime ........................................................................................ 41 
2.4.1   Legal and institutional framework ............................................................................. 41 
2.4.2   Registration of  foreign in vestment ............................................................................ 42 
2.4.3   Restrictions on foreign investment ............................................................................ 42 
2.4.4   Foreign inve stment in centives.................................................................................. 43 
3   TRADE POLICIES AND PRACTICES, BY MEASURE ....................................................... 45  
3.1   Measures direct ly affectin g imports ............................................................................. 45 
3.1.1   Customs procedur es and requirements ..................................................................... 45 
3.1.2   Custom s valuation ................................................................................................. 47 
3.1.3   Rules of origin .......................................................................................................  48 
3.1.4   Tariffs ............................................................................................................... ... 49 
3.1.4.1   Tari ff struct ure ................................................................................................... 50 
3.1.4.2   Tari ff bindings .................................................................................................... 50 WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 3 - 
 
  3.1.4.3   Tariff concessions ................................................................................................ 51 
3.1.4.4   Preferential tariffs ............................................................................................... 52 
3.1.4.5   Tariff quotas ....................................................................................................... 53 
3.1.5   Other charge s affecting imports ............................................................................... 53 
3.1.5.1   Custom s service fee ............................................................................................ 54 
3.1.5.2   Tax on the transfer of industrialized goods and services (ITBIS) ................................. 54 
3.1.5.3   Selective co nsumption ta x (ISC) ........................................................................... 55 
3.1.5.4   Tax on prod ucts from free zones ........................................................................... 55 
3.1.6   Import prohibitions, restrictions an d licensing ............................................................ 56 
3.1.6.1   Prohibitions ........................................................................................................  56 
3.1.6.2   Import pe rmits and li cences ................................................................................. 56 
3.1.7   Anti-dumping, countervai ling and safegu ard measures ................................................ 58 
3.1.7.1   Regula tory fram ework ......................................................................................... 58 
3.1.7.2   Anti-dumping and countervailing measures ............................................................. 59 
3.1.7.3   Safeguard measures ............................................................................................ 60 
3.1.8   Standards, technical regulation s and conformity assessment procedures ........................ 62 
3.1.8.1   Legal and in stitutional framework .......................................................................... 62 
3.1.8.2   Preparation and application of stan dards, technical regulations and conformity 
assessment pr ocedures..................................................................................................... 63 
3.1.8.2.1   Standards ....................................................................................................... 63 
3.1.8.2.2   Technical regulations ........................................................................................ 63 
3.1.8.2.3   Conformity a ssessment and ce rtification .............................................................. 64 
3.1.8.2.4   Notifica tion to the WTO ..................................................................................... 64 
3.1.8.3   Labelling and marking .......................................................................................... 65 
3.1.8.4   Sanitary registration ............................................................................................ 65 
3.1.9   Sanitary and ph ytosanitary measures ....................................................................... 66 
3.1.9.1   Legal and in stitutional framework .......................................................................... 66 
3.1.9.2   Types of measure and application .......................................................................... 67 
3.1.9.3   Risk analysis and conformity assessment ................................................................ 68 
3.1.9.4   Notifica tions to the WTO ...................................................................................... 69 
3.2   Measures direct ly affectin g exports ............................................................................. 69 
3.2.1   Export procedur es and requirements ........................................................................ 69 
3.2.2   Export duties, ch arges and othe r levies ..................................................................... 70 
3.2.3   Export prohibitions, authorizations and lice nsing ........................................................ 70 
3.2.4   Expo rt support ...................................................................................................... 71 
3.2.4.1   Free zo nes ......................................................................................................... 71 
3.2.4.2   Other export support programmes ......................................................................... 73 
3.2.5   Financing, in surance and promotion ......................................................................... 75 
3.3   Measures affectin g production and trade ...................................................................... 76 
3.3.1   In centives ............................................................................................................  76 
3.3.1.1   Sectoral support pr ogrammes ............................................................................... 76 WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 4 - 
 
  3.3.1.2   Support programmes for micro, small and medium-sized enterprises .......................... 77 
3.3.1.3   Regional de velopment pr ogramme s ....................................................................... 78 
3.3.2   Competition policy and price controls ........................................................................ 78 
3.3.2.1   Competition policy .............................................................................................. 78 
3.3.2.2   Pr ice cont rol .......................................................................................................  79 
3.3.3   State-owned enterp rises and priv atization ................................................................. 79 
3.3.4   Governme nt procurement ....................................................................................... 79 
3.3.4.1   Legal and in stitutional framework .......................................................................... 79 
3.3.4.2   Procurement methods .......................................................................................... 80 
3.3.4.3   Exceptions to  the bidding  methods ........................................................................ 82 
3.3.4.4   Incentives for participating in government procurement ............................................ 83 
3.3.5   Intellectual property rights ...................................................................................... 83 
3.3.5.1   Legal framework ................................................................................................. 83 
3.3.5.2   Institutional framework ........................................................................................ 84 
3.3.5.3   Participation in the WTO ....................................................................................... 84 
3.3.5.4   Participation in ot her internationa l initiatives ........................................................... 85 
4   TRADE POLICIES BY SECTOR ..................................................................................... 86  
4.1   Agriculture ............................................................................................................. . 86 
4.1.1   General characteri stics ........................................................................................... 86 
4.1.2   Institutional and policy framework ............................................................................ 87 
4.1.3   Policy  instruments ................................................................................................. 88 
4.1.3.1   Bord er measures................................................................................................. 88 
4.1.3.2   Export subsidies.................................................................................................. 93 
4.1.3.3   Dome stic support ................................................................................................ 93 
4.1.3.4   Othe r measures .................................................................................................. 94 
4.2   Fishing .................................................................................................................... 95 
4.3   Energy .................................................................................................................. .. 96 
4.3.1   El ectricity ........................................................................................................... .. 96 
4.3.2   Renewable energy ............................................................................................... 100  
4.3.3   Hydrocarbons ...................................................................................................... 101  
4.4   Manufac turing ........................................................................................................ 10 2 
4.4.1   Genera l features .................................................................................................. 102  
4.4.2   Legal framewor k and incentives ............................................................................. 103  
4.4.3   Free-zo ne regime................................................................................................. 105  
4.5   Services ................................................................................................................  106 
4.5.1   Financial services ................................................................................................. 106  
4.5.1.1   Banking ........................................................................................................... 1 06 
4.5.1.1.1   General features and prudential indicators ......................................................... 106  
4.5.1.1.2   Regulatory framework ..................................................................................... 108  
4.5.1.1.3   International financial zone  regime ................................................................... 111  WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 5 - 
 
  4.5.1.2   In suranc e ........................................................................................................ 11 2 
4.5.1.3   Securities market .............................................................................................. 114  
4.5.2   Telecommunications ............................................................................................. 116  
4.5.3   Transport ........................................................................................................... 1 20 
4.5.3.1   Air transport ..................................................................................................... 120  
4.5.3.2   Maritime transport and port activities ................................................................... 124  
4.5.3.2.1   Maritime transport .......................................................................................... 124  
4.5.3.2.2   Port activities ................................................................................................. 124  
4.5.4   Tourism .............................................................................................................. 127  
REFERENC ES ................................................................................................................ 131  
5   APPENDIX TABLES .................................................................................................. 134  
 
CHARTS 
 
Chart 1.1 Merchandise trade, 2009 and 2014 ....................................................................... 24 
Chart 1.2 Merchandise exports, 2009 and 2014 .................................................................... 25 
Chart 1.3 Merchandise trade by trading partner, 2009 and 2014 ............................................. 26 
Chart 3.1 Distribution of MFN tariffs, 2007 and 2014 ............................................................. 50 
Chart 3.2 Exports and import s of free zone s, 2002- 2014 ....................................................... 72 
Chart 3.3 Thresholds for determining the method of bidding, 2014 .......................................... 82 
Chart 4.1 Access to the electricity market ............................................................................ 98 
 
TABLES 
 
Table 1.1 Main economic  indicators , 2008-2 014 ................................................................... 12 
Table 1.2. Central government fiscal balance, 2008-2014 (accruals basis) ................................ 17 
Table 1.3 Main monetary  indicators , 2008-2 014 ................................................................... 20 
Table 1.4.Balance of payments, 2008-2014  ......................................................................... 21 
Table 1.5 Balance on trad e in servic es, 2008- 2014 ............................................................... 27 
Table 1.6 Foreign direct inve stment by sect or, 2008- 2014 ..................................................... 28 
Table 1.7 Foreign direct investment  by country of origin, 2008- 2014 ....................................... 29 
Table 2.1 List of regional trade agreements signed by the Dominican Republic (in force, 
whether or not noti fied), 2008 -2014 ................................................................................... 35 
Table 2.2 Topics covered by the regional agr eements signed by the Dominican Republic ............ 35 
Table 2.3 Trade between the Dominican Repub lic and the countries with which it has a 
trade agreement .............................................................................................................. 36 
Table 2.4 Tariff lines liberalized by the Dominican Republic under each of its trade 
agreements ....................................................................................................................  36 
Table 2.5 Tariff reduction programme for the Dominican Republic under the EPA ....................... 37 
Table 2.6 Tariff reduction programme for the Dominican Republic  under CAFTA-DR ................... 39 
Table 3.1 Principal laws relating to the Dominican Republic's customs regime at 
January 2015 ..................................................................................................................  45 WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 6 - 
 
  Table 3.2 Summary of the MFN tariff, 2007 and 20 14 ........................................................... 49 
Table 3.3 Summary of the MFN tari ff, 2014  ......................................................................... 51 
Table 3.4 Analysis of market access including preferential tariffs, 2014 .................................... 53 
Table 3.5 Customs service f ees at December 2014 ............................................................... 54 
Table 3.6 Prohibited produc ts, at Decemb er 2014 ................................................................. 56 
Table 3.7 Products subject to  permits, at August 2014 .......................................................... 57 
Table 3.8 Investigations initiated and measures adopted by type of procedure, 2008-2014 ......... 59 
Table 3.9 Anti-dumping investigations initiated over the period 2008-2014 .............................. 60 
Table 3.10 Safeguards investigations in itiated over the period 2008-2014 ................................ 61 
Table 3.11 Principal laws and agreements composing the legal framework for sanitary and 
phytosanitary measures .................................................................................................... 66 
Table 3.12 List of prohibited exports ................................................................................... 70 
Table 3.13 Principal export support laws ............................................................................. 74 
Table 3.14 Bidding methods .............................................................................................. 81 
Table 4.1 Composition of ag ricultural GD P, 2008- 2013 .......................................................... 86 
Table 4.2 Products included in MFN tariff quotas, 2008-2012 .................................................. 89 
Table 4.3 Tariff quotas available for 2015 under the CAFTA-DR ............................................... 91 
Table 4.4 Special agricultural safeguard (SAS) CAFTA-DR, 2014 ............................................. 92 
Table 4.5 Credit for the agricultural sector, 2008-2013 .......................................................... 94 
Table 4.6 Supply and demand in  the national grid, 2008- 2014 ............................................... 97 
Table 4.7 Structure and performance of  the manufacturing sector, 2008-2013 ........................ 103  
Table 4.8 Main free zone indicators, 2008-2013  ................................................................. 106  
Table 4.9 Free zone exports, by main activi ty, 2008-2014  ................................................... 106  
Table 4.10 Banking system indicators 2008-201 4 ............................................................... 107  
Table 4.11 Insurance and reinsurance market indicators, 2008-2013 ..................................... 112  
Table 4.12 Telecommunications indica tors, 2008-2014 (30 Septembe r) ................................. 116  
Table 4.13 Air tra ffic, 2008-20 13 ..................................................................................... 121  
Table 4.14 Port operations, 2008-2014 (September) ........................................................... 125  
Table 4.15 Tourism indi cators, 2008- 2014 ......................................................................... 127  
 
BOXES 
 
Box 2.1 System of  government .......................................................................................... 31 
Box 3.1 List of goods exempt from tariffs pursuant to Law No . 146-00..................................... 52 
Box 3.2 Procedure for preparing and approving standards ...................................................... 63 
Box 3.3 Types of  free zone ................................................................................................ 73 
 WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 7 - 
 
  APPENDIX TABLES 
 Table A1. 1 Exports of consumer goods and re-exports, by product and HS section, 2009-2014
a .................................................................................................................. 134  
Table A1. 2 Merchandise exports from free zone s, by product and HS  section, 2009-2014 ........ 136  
Table A1. 3 Merchandise imports (f.o.b.), by product and HS section, 2009-2014 .................... 138  
Table A1. 4 Exports of consumer goods and re-exports, by trading partner, 2009-2014 ........... 140  
Table A1. 5 Merchandise exports from free zones, by trading pa rtner, 2009- 2014 ................... 141  
Table A1. 6 Merchandise imports (f.o.b.) , by trading partner, 2009-2014 ............................... 142  
 
 
Table A2. 1 Notifications submitted under the WTO Agreements, 1 January 2008–
31 December  2014 ........................................................................................................ 143  
Table A2. 2 WTO dispute settlement cases involving the Dominican Republic, 2008-2014 
(at 31 December) .......................................................................................................... 146  
 
 
Table A3. 1 Customs procedures, 2014 ............................................................................. 147  
Table A3. 2 Overview of the protection of in tellectual property rights in the Dominican 
Republic, 2014 .............................................................................................................. 1 48 
 
 
Table A4. 1 Legislation relating to plant and animal health and food safety, enacted during 
the review period ........................................................................................................... 150  
Table A4. 2 Air service agreement moda lities: plurilatera l agreements ................................... 151  
Table A4. 3 Air service agreement modalities: bilateral agreements ....................................... 152  
 WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 8 - 
 
  SUMMARY 
1. The Dominican Republic is a medium-income economy with a per capita income of about 
US$ 6,500 in 2014. It has been relatively successful  in overcoming the global crisis. Although GDP 
was down in 2009, the economy recovered in 2010 thanks to expansionary monetary and fiscal 
policies. A prudent policy approach during the previous years meant that the authorities had 
enough space to apply more extensive cuts when the situation so required. Overall, the Dominican 
economy grew rapidly during the period from 20 08 to 2014, the average annual rate reaching 
4.4%. Fiscal policy was more restrictive after 2012 with the introduction of a tax reform that 
helped to contain the fiscal deficit. Public debt stood at 38% of GDP in 2014. In January 2012 the Central Bank formally adopted an inflation-targeting scheme as its monetary policy strategy. Inflation subsequently fell, and has remained below the lower bound of the band set for the 
respective year in 2012 and 2013, and slightly above the bound in 2014. The Dominican Republic 
operates an exchange rate regime of managed floating without pre-announced targets. 
2. The current account of the Dominican balance of payments reports a structural deficit, which 
has been trending down since 2011 owing in part to the sharp growth in exports. In 2014, the 
deficit was down to 3.1% of GDP. The traditional surplus on the balance of trade in services has been growing since 2010 thanks mainly to an increase in tourism income, which has made it 
possible to offset outgoings in respect of freight, insurance and other items. Investment income 
has been in deficit during the review period, which reflects increased repatriation of profits. Family remittances from Dominican nationals abroad remain an important source of financing for the current account, as well as providing major support for domestic consumption and, hence, 
aggregate demand and GDP growth. 
3. The Dominican Republic has an open economy,  with trade flows of goods and services 
accounting for approximately two thirds of GDP. Its main trading partners in goods are the 
United States, the European Union, Canada and Haiti. Manufactured goods, in particular textiles, 
clothing and metal products, account for more than 50% of its exports, while automobiles are its main import. Total goods exports grew at an  average rate of 12.4% between 2009 and 2014, 
driven mainly by mineral exports, particularly gold. Domestic exports (i.e. excluding exports from 
the free zones) grew vigorously, at an annual aver age nominal rate of 22.1%, to attain 47.1% of 
total exports in 2014, compared to 31.2% in 2009. This reflects above all a vigorous recovery of mining exports. At the same time, exports from th e free zones lost ground, representing just over 
half of the total in 2014 as compared to two thir ds in 2009, having experienced an annual average 
growth rate of 6.7% between 2009 and 2014. 
4. The key guidelines to the country's medium- and long-term economic policy, including trade 
policy, are contained in the National Development Strategy 2030. The Strategy's main aims are to 
promote export development; promote higher le vels of investment in high-value-added and 
job-creating activities; consolidate and monitor the network of trade treaties and agreements 
signed by the country; and develop a regulatory  environment that ensures a pro-competitive 
business climate. The formulation and implementation of trade policies in the Dominican Republic are closely coordinated among the different ministries and agencies concerned. This helps to improve transparency, and enables the Dominican Republic to develop coherent policies and 
positions which reflect a consensus among the institutions. 
5. The Dominican Republic currently participates in four free trade agreements (FTAs): 
CAFTA-DR, the Economic Partnership Agreement (EPA) between the European Union and the 
member countries of the Caribbean Forum (C ARIFORUM), and the FTAs with CARICOM and 
Central America. It also has a partial-scope agreement with Panama, which gives tariff preferences to a limited number of goods. CAFTA-DR is probably the most important FTA for the 
Dominican Republic, since it involves its largest trading partner, the United States, and its 
implementation has meant amending Dominican legislation in a number of areas such as government procurement and intellectual property . The authorities are currently exploring the 
possibility of signing a trade agreement with Chil e, and are in talks with Panama to expand the 
coverage of the partial-scope agreement. 
6. Foreign investors generally receive national treatment. No prior approval is needed for 
foreign investment, but once made it must be regi stered. The reinvestment of profits must also be 
registered. The Dominican Republic does not apply ex change controls. In general, all activities are 
open to foreign investment except those related to the management of toxic, hazardous or WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 9 - 
 
  radioactive waste produced abroad; public health ; the environment; and weapons production. At 
the sectoral level, there are restrictions in the mining, broadcasting, energy and air transport sectors, as well as in a numb er of professional services. 
7. Over the past six years, the Dominican Republic has adopted measures to facilitate trade 
which include the improvement of its risk ma nagement systems, the introduction of a 
computerized import clearance process and the el imination of certain authorization requirements. 
In July 2014, the Dominican Republic notified  the Category A measures of the WTO Trade 
Facilitation Agreement. Since April 2012, it has only  been possible to submit import documents by 
Internet through the Integrated Customs Management System (SIGA). The SIGA will also include a Single Window for Foreign Trade (VUCE), which it is planned to introduce gradually and will offer services for goods import, export and transit procedures. A VUCE pilot programme was launched in 
November 2014 to replace the Single Window for Exports, which had ceased operating in 2012. 
8. The Dominican Republic only applies preferential rules of origin. These are specified in each 
of its trade agreements, and determine the criteria for classifying a product as originating and thus 
able to benefit from preferential tariff treatment. All of the agreements signed by the 
Dominican Republic contain a de minimus  provision which allows a good to be considered as 
originating if the value of all the non-originating inputs used to produce it but which do not comply 
with the relevant rules of origin does not exceed a certain percentage of the product's value. 
9. During the period under review, the Dominican tariff did not change significantly; in fact, the 
most significant changes date back to 2005. Tariffs remain relatively low, with an average MFN rate of 7.8% in 2014. For 54% of the tariff lines, the rate is 0%. In 2014, the average MFN tariff 
for agricultural products (WTO definition) wa s 14.2%, while for manufacturers it was 6%. The 
Dominican Republic only applies ad valorem  tariffs, and there are seven rates ranging from 0% to 
40%, excluding the tariffs resulting from the application of quotas, for which there are another 
five rates ranging from 56% to 99%. All of the applied tariffs were lower than the corresponding 
bound rate, with the exception of 63 lines. By December of 2014, the Dominican Republic was granting tariff preferences for imports from 48 co untries. These varied depending on the partner 
and the sector. In 2014, average preferential rates ranged from 0.5% to 4.2% for free trade 
agreements, and stood at 7.2% for the Partial Scope Agreement with Panama. 
10. During the period 2008-2014, the Dominican Republic initiated two anti-dumping 
investigations concerning steel rods, and five safeguard investigations; it did not initiate any 
subsidies investigations. The two anti-dumping investigations concluded in 2011 and 2014, 
respectively, and in both cases duty in addition to the MFN rate was imposed for a period of five years. Of the five safeguards investigations, four were initiated under the Agreement on 
Safeguards and one pursuant to the Protocol on the Accession of China to the WTO. All of these 
investigations were concluded over this period and in three of the cases definitive safeguard measures were imposed, all of which had expired by December 2014. 
11. In 2012, the Dominican Republic made substa ntial changes to the way it drafted and 
administered its technical regulations and stan dards and its conformity assessment procedures. 
Under the new law, the development and implemen tation of technical regulations comes under 
responsibility of the different ministries. Technical regulations must as far as possible be based on 
national or international standards. The new law has not yet been fully implemented, since its 
implementing Regulations containing the procedures for preparing technical regulations have yet to enter into force. By December 2014, there were 169 technical regulations in force. The 
authorities are currently preparing a database of technical regulations. During the period 
2008-2014, the Dominican Republic submitted 77 notifications to the WTO's TBT Committee. 
12. Imported products which present a risk for human, animal, plant, aquaculture or forest 
health must comply with the sanitary, phytosanitar y, and animal health measures specified in the 
technical regulations or no-objection permits and must have an import permit. The principle laws 
on animal and plant health are old, and the author ities have indicated that there are a number of 
draft laws to update them. There is also a duplication of responsibilities of each of the authorities 
concerned. During the period from 2008 to 2014, the Dominican Republic submitted 
82 notifications to the WTO Committee on Sanitary and Phytosanitary measures. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 10 - 
 
  13. The Dominican Republic has a free-zone regime, as well as other forms of export support for 
companies outside the free zones. The free zones have been operating since 1969 and continue to play a leading role in Dominican trade, even thou gh they have somewhat lost their dynamism in 
recent years. In 2014, exports from the free zone represented 52.9% of total exports, whereas in 
2007 they represented 63%. The contribution of th e free zones to GDP has also fallen. There has 
been little change in the activities carried out in the free zones since the last review. The main 
sectors of activity are still textiles, followed by medical and pharmaceutical products, electrical 
goods and tobacco. One important development duri ng the review period was the amendment of 
the free zone legislation in 2013 to eliminate export performance requirements. These requirements had meant that tariff concessions and tax benefits were contingent upon the 
exportation of at least 80% of total production. Local content requirements were also abolished. 
With these changes to the legislation, sales on the domestic market of products from free zones 
are no longer restricted, but are now subject to an additional "compensatory" tax which, from the initial rate of 2.5%, was increased to its current rate of 3.5% in November 2012. The authorities 
see this as a presumed income tax. 
14. After the free-zone regime, the regime established and administered by PROINDUSTRIA is 
the most important programme for the promot ion and development of Dominican industry. 
It contains a component aimed at the export sector, but it is intended for the manufacturing sector 
in general with the aim of improving the country's industrial competitiveness. Exporters recognized by PROINDUSTRIA have the right to refund of ce rtain internal taxes in a percentage equivalent 
to the percentage of their exports in total sales over a given period. A company may not operate 
under the PROINDUSTRIA and the free-zone regime simultaneously. In addition to these 
regimes, there are support programmes for small and medium enterprises as well as regional support programmes. 
15. One area in which greater efforts are required is competition policy. A competition authority 
was set up in 2009, but as of December 2014 it was not yet operational. The competition authority has limited powers under the current legislation, and with no implementing regulations to the Law, 
there is no monitoring of unfair competition. 
16. The Dominican Republic does not participate in  the Agreement on Government Procurement. 
Its government procurement procedures have been modified to comply with the requirements of CAFTA-DR. As a result, the process has become  progressively more transparent, and most of 
the country's government procurement is now conducted on a competitive basis. Although 
domestic suppliers are not given any preferential margins, the new legislation introduced in 2013 provides that 20% of government contracts must go to Dominican micro, small and medium 
enterprises. In the case of public works contract s, foreign natural persons or companies may only 
take part if they are associated with a Dominican national or if their capital is jointly held. The Dominican Republic also applies the principle of reciprocity, according to which it gives foreign 
participants the same treatment as Dominican suppliers receive in their respective countries of 
origin as regards bidding, terms, requirements and procedures. 
17. The Dominican Republic's intellectual property legislation to a large extent reflects the 
commitments undertaken in the TRIPS Agreement and in CAFTA-DR, and the latter in some cases 
goes beyond the provisions in the TRIPS Agreemen t. For example, the Dominican Republic grants 
rights which exceed the minimum periods determined in the TRIPS Agreement for trademarks (ten years rather than seven) and copyright and related rights (lifetime plus 70 years rather than 
lifetime plus 50 years). There are also special provisions on pharmaceuticals and agricultural 
chemicals, which impose protection of undisclosed information on data from clinical trials for five years for pharmaceuticals and ten years for agricultural chemicals. 
18. The Dominican Republic provides limited support to its agricultural sector. Protection 
consists mainly of higher than average tariffs . In 2012, the Dominican Republic introduced 
changes in the way it allocates licences for WTO tariff rate quotas, which are now auctioned publicly. In area of domestic support, the main programme still targets rice producers, and covers 
storage and the financial costs linked to the loans obtained by farmers, such as interest 
and insurance. Rice prices are subject to a reference price band established among the producers. 
19. The manufacturing sector in the Dominican Republic is divided into two different categories: 
a local manufacturing sector, mainly oriented towards the domestic market, and another sector 
that operates under the free-zone regime, mainly outward oriented. Local manufacturing is quite WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 11 - 
 
  diversified, the main items being beverages and tobacco, followed by dairy products, various food 
products, paints and varnishes, rubber and plastic products, cement, and bars and rods of iron and steel. In the free-zone sector a little over one third of production is concentrated in textiles and clothing. The manufacturing sector receives support through tariffs and incentives. Manufacturing 
legislation seeks to promote the competitive development of the manufacturing industry, 
encouraging diversification and link-ups with international markets. 
20. One of the main challenges facing the Dominican Republic is the electricity supply crisis 
resulting from the country's heavy dependence on imported fossil fuels to generate electricity; 
frozen electricity tariffs that fail to cover costs; dependence on subsidies; lack of investment; and high levels of power losses. A number of plans have been drawn up over the years for modernizing the electricity subsector. The current Electricity Sector Action Plan lays down guidelines for the 
period 2010–2015, in particular, the simplification and more flexible application of the tariff system 
and the rationalization of subsidies. Efforts are also being made to boost renewable energy production through incentives. 
21. The regulatory framework for the Dominican fina ncial system does not establish any special 
conditions or impose restrictions on the establishment of financial intermediation entities, whether domestic or foreign. Foreign-capital banks offer the same services and are subject to the same 
operating regulations and prudential rules as their domestic counterparts. Investments between 
3% to 30% of the paid-up capital depend on the Banking Supervisory Authority having "no objection", and the acquisition of more than 30% of the paid-up capital must be authorized by the Monetary Board, in the case of domestic and foreign investors alike. The prudential indicators 
of the financial system remain at reasonable levels, and in particular, the solvency ratio 
comfortably exceeds the legal minimum. Legislatio n was introduced to enable extraterritorial 
financial intermediation services to be supplied through the establishment of international financial 
zones (ZFI). This legislation includes mechanisms to prevent money laundering and other financial 
crimes, but has yet to be implemented. 
22. Tourism and related activities, such as transport, are important contributors to GDP. 
Tourism and transport have a significant impact on construction, electricity, agriculture and 
manufacturing. The tourism sector benefits from a number of plans and incentives. The telecommunications market is governed by the ru les of free and fair competition, and operators 
are prohibited from applying unequal conditions for equivalent services that place some 
competitors at a disadvantage relative to others. 
 WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 12 - 
 
  1  ECONOMIC ENVIRONMENT 
1.1  Growth, structure and employment 1.1.  The Dominican Republic's real gross domest ic product (GDP) grew at an average annual rate 
of 4.4% in the period 2008-2014
1, slightly below the 5.8% recorded between 2002 and 2007 
(Table 1.1). Nonetheless, the growth achieved in the period under review was impressive given 
the problematic international backdrop, which included a global financial crisis with adverse effects on exports. Growth rates during the review period  were more stable than in the previous period, 
despite the crisis. Moreover, annual GDP growth rates were never negative during the period, 
the lowest being 0.9% in 2009 – the most critical year of the crisis, in which the country sought support from the International Monetary Fund (IMF) to prevent the situation from worsening (see below). Consequently, during the crisis the Dominican Republic did not suffer a reduction in 
its per capita income in local-currency terms, which stood at nearly US$6,500 in 2014. 
Table 1.1 Main economic indicators, 2008-2014 
 2008 2009  2010  2011  2012 2013 2014a 
Gross domestic product (GDP)  
GDP at current prices 
(RD$ billion) 1,657.0 1,729.5  1,978.9  2,218.4  2,377.5 2,558.6 2,786.2 
GDP at current prices 
(US$ million) 48,072 48,130  53,774  58,291  60,526 61,256 64,053 
Real GDP (chained volume 
index; base year 2007) 103.1 104.1  112.8  115.9  119.0 124.7 133.8  
GDP growth rate (%) 3.1 0.9  8.3 2.8 2.6 4.8 7.3  
GDP per capita (US$ at 
current prices) 5,180.4 5,131.5  5,673.2  6,084.5  6,252.1 6,260.4 6,480.9  
GDP by activity (% of GDP at current prices)  
Agriculture 6.4 6.2 6.0 5.8 5.8 5.9 5.6 
Crop farming 3.6 3.6  3.8 3.7 3.7 3.7 3.5  
Livestock, forestry and 
fishing 2.7 2.6 2.3 2.1 2.2 2.1 2.0 
Industry 27.7 26.1  26.1 25.8 25.2 25.2 25.5  
Mining and quarrying 0.8 0.5 0.5 0.7 0.7 1.5 1.6 
Local manufacturing 12.8 12.2  12.2 12.0 11.8 11.6 11.3  
Food industry 4.0 4.3 4.3 4.4 4.7 4.7 4.5 
Beverages and tobacco 
products  1.3 1.3  1.2 1.1 1.0 1.0 1.0  
Manufacture of refined 
petroleum products and 
chemicals 1.6 1.2 1.2 1.2 1.2 1.2 1.2 
Other manufactures 5.8 5.4  5.5 5.3 4.9 4.6 4.6  
Free-zone manufacturing 3.5 3.2 3.1 3.3 3.2 3.2 3.3 
Construction 10.7 10.2  10.4 9.9 9.5 8.9 9.3  
Services 58.8 60.8 60.6 61.6 62.2 62.2 62.3 
Energy and water 1.9 1.9  1.8 1.8 1.8 1.7 1.7  
Commerce 9.7 9.2 10.0 10.0 10.1 9.7 9.4 
Hotels, bars and 
restaurants 7.8 7.7  7.3 7.2 7.3 7.3 7.6  
Transport and storage 8.0 8.2 8.4 9.4 9.4 9.1 9.2 
Communications  2.0 2.1  1.9 1.8 1.7 1.7 1.6  
Financial intermediation, 
insurance and related 
activities 3.8 4.1 3.7 3.7 3.9 3.9 3.8 
Real estate and rental 
activities 7.8 8.6  8.8 9.3 9.1 9.0 9.0  
Market-based education 1.8 2.0 2.0 2.0 2.0 2.1 2.1 
Market-based health 
services 1.5 1.6  1.8 1.8 1.9 1.9 2.0  
Other market services  7.7 8.2 8.1 8.1 8.1 8.3 8.2 
Public administration and 
defence, compulsory social security and other services 4.3 4.7
 4.1 3.8 4.4 4.6 4.7  
Non-market education 1.5 1.8 1.7 1.7 1.6 2.1 2.2 
Non-market health services 0.9 0.9  0.9 1.0 0.8 0.8 0.8  
                                               
1 GDP figures from the New National Accounts of the Dominican Republic, base year 2007. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 13 - 
 
   2008 2009  2010  2011  2012 2013 2014a 
Value added 92.9 93.1 92.7 93.2 93.2 93.3 93.4 
Taxes on production, net of 
subsidies 7.1 6.9  7.3 6.8 6.8 6.7 6.6  
GDP by expenditure category (% of GDP at current prices)b 
Final consumption 83.4 84.4  84.3 85.0 85.6 83.9 82.4  
Private consumption 73.4 73.8 74.6 75.7 75.1 73.9 72.2 
Public consumption 10.0 10.6  9.7 9.3 10.5 10.1 10.2  
Gross capital formation 30.1 23.9 26.7 25.1 23.1 21.8 22.1 
Gross fixed capital 
formation 28.2 23.3  25.0 23.3 22.9 20.8 20.3  
Variation in inventoriesc 1.9 0.7 1.6 1.8 0.1 1.0 1.7 
Exports 24.0 21.1  21.9 23.7 24.4 25.4 26.4  
Imports 37.4 29.5 32.9 33.8 33.1 31.2 30.9 
GDP by expenditure category (real annual growth rate of chained volume indices, base year 2007)  
Final consumption 5.1 5.1 7.6 2.9 3.9 1.2 4.7 
Private consumption 5.5 5.2  8.1 3.1 3.1 2.3 4.0  
Public consumption 2.0 4.0 5.1 0.1 11.3 -6.4 10.4 
Gross capital formation        
Gross fixed capital formation 6.3 -14.6  18.3 -3.9 -2.0 -0.3 10.2 
Variation in inventories        
Exports -4.6 -8.4 11.4 13.0 8.1 8.6 7.3 
Imports 5.5 -10.7  17.5 1.2 4.1 -3.3 3.5  
Employment        
Open unemployment rated 4.7 5.3  5.0 5.8 6.5 7.0 6.4  
Unemployment rate (broad 
definition)e 14.1 14.9 14.3 14.6 14.7 15.0 14.5 
Population (thousand) 9,280 9,380  9,479  9,580  9,681 9,785 9,883  
a  Preliminary figures estimated for end-2014. 
b  The 2014 figures correspond to the period January-September. c  The variation in inventories is the residual variable  in the expenditure-side estimation of GDP, and it 
changes sign frequently, which makes it difficult to interpret the growth rate of the chained index of 
this component. The behaviour of th is variable is analysed through its contribution to the percentage 
variation in the aggregate to which it belongs, i.e.  the effect on GDP growth expressed in percentage 
points. The growth rates are reported for gross fixed capital formation only. 
d  Average figures for each year. Re fers to the proportion of the econ omically active population (EAP) 
which, in the reference period (the last four week s before the survey was conducted), took steps to 
obtain a job (openly unemployed). It is calculated as the ratio between the openly unemployed population and the EAP (employed plus openly unem ployed), pursuant to recommendations issued by 
the International Labour Organization (ILO). 
e  Average figures for each year. The number of peop le who were unemployed and available to work at 
the end of the year, irrespective of whether or no t they had sought work in the last month, as a 
percentage of the EAP. 
Source: Central Bank of the Dominican Republic. 
1.2.  In terms of sectoral shar e of GDP as of September 2014, the leading activities in order of 
importance are: the services sector (62.3%), industry (25.5%), and agriculture (5.6%). In the 
period 2008-2014, the GDP share of the services sector gained 3.7 percentage points, 
driven primarily by transport, real estate activiti es and education services (teaching). In the same 
period, the share of manufacturing industry dropped from 16.2% in 2008 to 14.6% between 
January and September 2014, reflecting a reduction in the shares of both local and free-zone 
manufacturing. Agriculture saw its GDP share decline from 6.4% to 5.6% in the same period, basically owing to weaker livestock farming, fore stry and fishing activity, while the crop farming 
subsector kept its share broadly unchanged. 
1.3.  In 2009, the Dominican Republic adopted a strategy to deal with the adverse effects of the 
global economic crisis, which were threatening to undermine the country's growth. To support this strategy, it sought assistance from the IMF. In November 2009, the IMF approved a 28-month 
Stand-By Arrangement for the Dominican Republic of SDR 1,094.5 million, equivalent to roughly 
US$1.7 billion.
2 The Stand-By Arrangement aims to boost confidence in the economic policy 
framework and leverage additional funding from other multilateral sources. The objectives of the 
Arrangement were to: apply short-term countercyclical policies making it possible to alleviate the 
                                               
2 IMF Press Release No. 09/393, "IMF Executive Bo ard Approves US$1.7 Billion Stand-By Arrangement 
for the Dominican Republic", 9 November 2009. Viewed at: http://www.imf.org/external/np/sec/pr/2009/pr09393.htm . WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 14 - 
 
  external negative effects; strengthen medium-ter m sustainability; reduce the vulnerabilities that 
had been revealed during the global crisis; an d lay the foundations for a gradual recovery and 
sustained growth.3 
1.4.  The key elements of the structural adjust ment programme that was implemented to achieve 
these objectives were: 
 institutional reforms aimed at strengthening the management of government finances, 
to allow for a medium-term expenditure framework to be adopted for fiscal 
consolidation. Tax revenue was also expected to grow as a result of improvements to the 
tax administration, together with stricter enforcement of legislation on fuel taxes and restrictions on tax exemptions and incentives (Section 3); 
 reform of the electricity sector to improve the efficiency of distribution, eliminate 
non-targeted subsidies and underpin its financial viability, thereby reducing its burden on 
government finances (Section 4.3.1); 
 reforms to the financial and monetary sector, including: (i) technical adjustments to 
central bank recapitalization through legislat ive amendments; (ii) improvements to bank 
supervision; and (iii) implementation of an inflation-targeting policy to help safeguard financial stability, control inflation and anchor expectations.
4 
1.5.  A fiscal stimulus in 2009 and 2010 was channelled mainly through public investment projects 
and the strengthening of the social security ne twork. For 2009, the programme aimed at achieving 
a primary fiscal deficit for the consolidated public sector of 0.8% of GDP, which is consistent with a global shortfall of 4.5% of GDP, significantly la rger than the 3.3% deficit set in the 2009 budget. 
For 2010, the programme targeted gradual consolidation, reducing the consolidated primary fiscal 
balance to zero, mainly through improvements in tax administration and the recovery of tax revenues on the back of more vigorous economic activity. The structural reforms in the tax domain 
were expected to produce an increase in revenue, which, in conjunction with moderate 
expenditure cuts (particularly energy subsidies) would lead to a gradual increase in the consolidated public sector's primary surplus. This was estimated to be around 1% of GDP in 2011 
and 2% of GDP in 2012 and ensuing years. As a result, the global public debt in 2014 was 
expected to fall to its 2008 levels (35% of GDP). These targets had not yet been achieved in 2014. The authorities explained this by the fact that the fiscal consolidation process began two years later than expected (i.e. as from 2012), because it was impossible to reduce public expenditure 
and increase revenue immediately after the global financial crisis. 
1.6.  The structural adjustment strategy was ai med at restoring real GDP growth to the robust 
rates that prevailed before the external crisis. Initially growth was forecast to be between 0.5% 
and 1.5% in 2009, and in a range of 2.5%-3.5% in 2010, before regaining its then estimated 
potential rate of 6% after 2011. The immediate resu lts were fulfilled, with GDP growing by 0.9% in 
2009 and then surpassing expectations in 2010 with an expansion of 8.3%. This was followed by 
a slowdown, however, which coincided with the adoption of a less accommodating monetary policy 
and the launch of a fiscal consolidation programme. Accordingly, GDP grew at rates below 3% between 2011 and 2012, and by 4.8% in 2013. Nonetheless, the potential growth rate then 
recovered and was surpassed in 2014, when GDP expanded by 7.3%, according to preliminary 
figures reported for the end of the year. 
1.7.  When reviewing the interim results of the programme in 2011, the IMF noted that 
macroeconomic conditions in the Dominican Republic remained quite favourable, and that the 
policies envisaged under the programme had contri buted to maintaining stability. Nonetheless, 
fiscal management had been complicated by rising oil prices, which inflated electricity subsidies; and, despite efforts to contain spending, delays in raising further tax revenue meant that some of 
the fiscal targets had not been reached. This prompted the authorities in 2011 to introduce 
corrective measures, including sizeable cuts in no n-social primary spending, hikes in electricity 
                                               
3 More specifically, the programme's objectives consisted in applying countercyclical policies in the last 
quarter of 2009 and first half of 2010, to mitigate the drastic economic downturn; and secondly, to implement 
measures to address debt and fiscal sustainability issues in the latter stage of the programme, as from 
mid-2010, while launching a structural reform agenda. 
4 IMF (2009). WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 15 - 
 
  tariffs, and a tax package. The IMF recommended that the reform agenda envisaged under the 
programme should be implemented vigorously, particularly by reducing tax exemptions and alleviating the electricity sector's burden on the budget.
5 
1.8.  Between 2008 and 2010, Dominican econom ic growth was driven by strong domestic 
demand, which grew on average faster than GDP. In 2008 and 2010 domestic demand outpaced 
GDP growth by 3.2 and 2.7 percentage points, respectively, whereas in 2009, the worst year of the crisis, it contributed negatively to  overall economic growth. From 2011 onward, 
however, the expansion of domestic demand slowed considerably: in 2013, it contributed 
1.5 percentage points to total GDP growth of 4. 8%, while the remainder of the growth rate was 
fuelled by external demand, owing to a robust  performance by total exports and a decline 
in imports, which added to growth. 
1.9.  In the first three quarters of 2014, the Dominican economy performed well, and GDP 
expanded at an annual rate of 7.6% from January  to September. The growth rate recorded was 
driven by an increase in domestic demand, as a result of improvements in gross capital formation 
and final consumption, and also by stronger exports.
6 In 2014 as a whole, the Dominican economy 
expanded at an annual rate of 7.3%. 
1.10.  As the average rate of economic growth was below potential in the last few years, open 
unemployment rose from 4.7% in 2008 to 6.4% in 2014, while broadly defined unemployment 
increased from 14.1% to 14.5% in the same period (see the notes to Table 1.1 for the definitions). Nonetheless, recently there has been more dynamic job creation associated with the growth of the 
economy, which brought the open unemployment rate down from 7.0% in 2013 to 6.4% in 2014. 
Bearing in mind that the economy is continuing to grow above its potential rate at the present 
time, unemployment is expected to continue trendi ng downwards. In particular, the pace of new 
job creation in the last two years suggests fulfilment of the central government's target of helping 
to create 400,000 net jobs in the four-year period 2012-2016. 
1.11.  Although the Dominican Republic's per capita GDP exceeds US$6,000, making it a 
middle-income country, the World Bank reports that 41.1% of the population is still living below 
the poverty line. This figure represents only a slight improvement on the 42% recorded in 2008. 
The data estimated by the Ministry of the Economy, Planning and Development indicate 
a poverty rate of 36.2%, compared to 43.1% in March 2008. Extreme poverty has declined, however: according to the World Bank, 9% of th e population was living on less than US$2 a day 
in 2013, compared to nearly 12% in 2008.
7 The Ministry of the Economy, Planning and 
Development estimates extreme poverty at 8.6% in March 2014, compared to the 13.3% recorded in March 2008.
8 
1.12.  The key guidelines of the Dominican Republic's medium- and long-term economic policy are 
contained in Law No. 1-12 of 25 January 2012, which establishes the National Development Strategy 2030. The authorities stated that the Strategy aims to consolidate an articulated, 
innovative and environmentally sustainable economy, with a production structure that generates 
high and sustained growth, which is sectorally and territorially articulated and competitively integrated in the global economy, and which takes advantage of local-market opportunities. 
In addition, the Strategy fosters the use of re liable, efficient and environmentally sustainable 
energy, and promotes competitiveness and innovation in an environment favourable to 
cooperation and social responsibility. To monitor the Strategy, 30 quantitative targets were set, along with five reform commitments. 
                                               
5 IMF Press Release No.11/286, "IMF Executive Board Completes Fifth and Sixth Reviews Under 
Stand-By Arrangement for Dominican Republic, Approves US$348.1 Million Disbursement", 18 July 2011. Viewed at: http://www.imf.org/external/np/sec/pr/2011/pr11286.htm . 
6 Central Bank of the Dominican Republic (2014d). 
7 Online information from the World Bank. Viewed at: http://datos.bancomundial.org/indicador/ 
SI.POV.NAHC/countries/DO?display=graph . 
8 Online information from the Ministry of the Ec onomy, Planning and Development. Viewed at: 
http://economia.gob.do/mepyd/wp-co ntent/uploads/archivos/uaaes/evoluc ion-pobreza-monetaria/evolucion-
reciente-de-la-pobreza-fi nal-29-julio-final.pdf . WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 16 - 
 
  1.13.  The main objectives of the Strategy are to: 
 promote export-led development based on competitive integration in international 
markets; 
 promote higher levels of investment, both na tional and foreign, in high-value-added and 
job-creating activities; 
 consolidate and monitor the network of trade treaties and agreements signed by the 
country, and evaluate them on a participatory basis, to harness them for the 
development of productive sectors; 
 develop a regulatory environment that ensure s the orderly functioning of markets and a 
pro-competitive investment and business climate under a framework of social responsibility; 
 turn the country into a regional logistics hub, by exploiting the advantages of its 
geographic location; and 
 expand the coverage and improve the qua lity and competitiveness of transport and 
logistics infrastructure and services, targeting them on territorial integration, support for 
production development and competitive integration in international markets. 
1.2  Fiscal policy 
1.14.  Fiscal policy in the Dominican Republic is formulated and implemented by the Ministry 
of Finance. 
1.15.  In the first part of the review period, th e Dominican Republic applied an expansionary fiscal 
policy in response to the global economic crisis, following a period of fiscal austerity. 
The government introduced a countercyclical fisca l policy as from the second half of 2009 and in 
the first half of 2010, which fuelled expenditure gr owth, particularly capital expenditure and social 
spending. The programme introduced in 2009 targeted an increase in the central government 
fiscal deficit for that year, from 1.9% to 3.1% of GDP, and a primary deficit of 1.1% of GDP 
compared to the budgeted 0.6%. Excluding interest  payments and transfers relating to the energy 
sector, the authorities estimated that this expansion would generate a fiscal stimulus of 0.9% of 
GDP for 2009. In 2010, the programme aimed at a gradual consolidation that would start in the 
second half of the year as the economy recovered,  leading to an overall central government deficit 
of 2.6% of GDP and a primary deficit of 0.4% of GDP.
9 
1.16.  At the same time, the government undertook to implement a number of measures to 
improve the tax administration, including the stan dardization and more effective enforcement of 
Law No. 112-00 of 29 November 2000 on hydrocarbons taxes, and Law No. 557-05 of 13 December 2005 establishing the ad valorem  selective consumption tax on fuels. This was 
expected to improve tax revenue, make fuel price calculations more transparent, and rationalize 
tax exemptions. It also provided for the administ ration of tax revenue to be transferred to the 
Directorate-General of Internal Revenue (DGII). The authorities predicted that this change would 
generate an increase in tax revenue equivalent to 0.2% of GDP.
10 It was also decided to introduce 
an information system (fiscal printers) to record the value of cash transactions in commercial establishments such as supermarkets and other shops, and to enhance the efficiency and effectiveness of tax collection. It was further de cided to simplify tax procedures for small and 
medium-sized businesses, in order to improve their tax compliance and expand the tax base. 
The authorities undertook to review legislation that includes tax incentives and exemptions, with a view to eliminating those that do not fulfil the objective of the legislation. 
Nonetheless, this remains a pending task (Section 3). 
1.17.  On the expenditure side, the Government decided to prioritize social spending, to maximize 
the effects of the fiscal expansion on economic activity, and public investment. This would make it 
                                               
9 IMF (2009). 
10 Idem . WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 17 - 
 
  possible to raise the level of capital expenditure to 4% of GDP in 2009 and to 5% in 2010, 
before starting to reduce it. The programme estimated that the public sector's gross borrowing requirement would reach a level of 5.5% of GDP in 2010, and would be funded through a mix of 
resources provided by multilateral organizations and private financing. 
1.18.  In a second stage of the review period, and owing to the commitments assumed under the 
Stand-By Arrangement with the IMF, major reforms were made to the tax system in the Dominican Republic, most of which are contained in Law No. 139-11 and Law No. 253-12, on 
Strengthening the State's Revenue Capacity for Fiscal Sustainability and Sustainable Development. 
The new laws gave rise to significant changes in the taxes applied. In relation to income tax (ISR), in 2013 the 29% rate on corporate income was maintained, before being reduced by one percentage point per year in fiscal 2014 and 2015, to 27%. Law No. 253-12 provides that 
natural persons resident or domiciled in the Dominican Republic pay tax on the net taxable income 
of the fiscal year in question, calculated as the sum total resulting from applying the following rates scale progressively: (i) income up to 399,923.00 Dominican pesos (RD$399,923.00), 
exempt; (ii) from RD$399,923.01 to RD$599,884.00, 15%; (iii) from RD$599,884.01 to 
RD$833,171.00, 20%; (iv) from RD$833,171.01 onwards, 25%. The established scale will be adjusted annually in line with cumulative inflation for the immediately preceding year, as published 
by the Central Bank of the Dominican Republic . Nonetheless, for fiscal 2013, 2014 and 2015, the 
adjustment will not be applied. In addition, a 10% tax was introduced on dividends distributed by firms that pay ISR, the interest received by natural persons on saving and time deposits, and interest received on bonds issued by the Mini stry of Finance, the central bank and private 
securities (only natural persons, because companies are already taxed). In addition, the 
deductions for losses sustained by corporate entities were reduced.
11 
1.19.  Both the central government and the non-fi nancial public sector (NFPS) posted deficits 
throughout the period under review, with total ex penses exceeding income in each year of the 
period. This outturn is explained by a structural deficit on the capital account, whereas the current 
account was in surplus for most of the period. Following a fall in revenue as a percentage of GDP 
between 2009 and 2011, income started to grow rapidly as from 2012 in the wake of the fiscal 
reform process. Expenses grew as a consequence of the expansionary measures contained in the 
package implemented in 2009, particularly in 2012 when capital expenditure represented 6.4% of 
GDP, and total expenses represented 20%, thereb y increasing the central government deficit 
to 6.7%, compared to 2.5% of GDP in the previous year, and widening the consolidated public 
sector deficit to 8% (Table 1.2). 
Table 1.2. Central government fiscal  balance, 2008-2014 (accruals basis) 
(% of GDP at current prices) 
 2008 2009 2010 2011 2012 2013a 2014a, b 
Total income 14.9 13.1 12.9 12.6 13.4 14.4 15.6 
Current income 14.9 13.1 12.9 12.6 13.4 14.4 15.6 
Tax revenuec 14.3 12.7 12.3 12.3 13.2 13.9 15.0 
Taxes on income and profits 3.5 3.1 2.7 2.9 3.9 4.2 5.2 
Taxes on property 0.7 0.6 0.7 0.7 0.8 0.9 0.7 
Taxes on goods and services 8.4 7.7 7.7 7.6 7.4 7.8 8.1 
Hydrocarbons tax 2.0 1.8 1.7 1.8 1.8 1.7 1.7 
Taxes on foreign trade 1.5 1.3 1.2 1.0 1.0 0.9 0.9 
Other taxes 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Social security contributions 0.1 0.1 0.1 0.1 0.1 0.1 0.1 
Non-tax income 0.6 0.3 0.6 0.3 0.3 0.6 0.6 
Capital income 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Total expenditure 18.6 16.4 15.8 15.3 20.0 17.6 16.8 
Current expenditure 13.7 12.9 12.1 11.9 13.6 14.0 14.4 
Personal services 3.5 4.0 36.5 3.6 3.7 4.1 4.3 
Goods and services 1.9 1.7 1.7 1.5 1.9 1.5 1.5 
Interest 1.5 1.8 1.8 2.0 2.4 2.3 2.5 
Foreign 0.7 0.7 0.6 0.7 0.7 0.8 0.9 
Domestic 0.8 1.2 1.2 1.3 1.6 1.5 1.7 
Current transfers 6.7 5.4 4.9 4.8 5.7 6.0 6.2 
Other current expenditure 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
                                               
11 It was provided that only 20% of total losses coul d be deducted each year. In the fourth year, that 
20% is deductible only up to a maximum of 80% of net taxable income for that fiscal year. In the fifth year, 
the maximum will be 70% of net taxable income. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 18 - 
 
   2008 2009 2010 2011 2012 2013a 2014a, b 
Capital expenditure 4.9 3.5 3.7 3.4 6.4 3.7 2.4 
Fixed investment 3.3 2.2 2.7 2.4 4.9 2.7 1.4 
Capital transfers 1.6 1.2 0.9 1.0 1.5 0.9 0.9 
Other capital expenditure 0.0 0.0 0.0 0.0 0.0 0.1 0.2 
Grants (incl. transfers in 2002) 0.2 0.2 0.2 0.2 0.2 0.1 0.0 
Current balance 1.2 0.2 0.8 0.7 -0.2 0.5 1.2 
General balance excluding residual -3.5 -3.1 -2.6 -2.5 -6.4 -3.1 -1.2 
Residual 0.2 -0.3 0.2 0.0 -0.3 0.2 0.1 
General CG balance including grants 
(deficit (-) /surplus (+)) -3.3 -3.4 -2.4 -2.5 -6.7 -2.8 -1.2 
Central government financing 
(deficit (+)/surplus (-)) 3.3 3.4 2.4 2.5 6.7 2.8 1.2 
External financing 1.5 2.0 3.3 3.0 2.0 3.3 2.9 
Domestic financing 1.9 1.3 -0.9 -0.5 4.6 -0.5 -1.8 
Balance of the rest of the NFPS .. .. .. -0.5 -0.3 -0.7 -0.5 
NFPS balance (CG + rest) .. .. .. -3.0 -6.9 -3.6 -1.6 
Consolidated public sector balance (CG + 
rest + CB) .. .. .. -1.2 -8.0 -5.0 -3.1 
Public debt of the NFPS (% of GDP) 24.5 28.4 28.7 29.8 33.0 38.3 37.9 
External debt (% of GDP) 15.0 17.1 18.5 20.9 21.8 24.6 25.5 
Domestic debt (% of GDP) 9.5 11.3 10.2 8.9 11.2 13.7 12.4 
.. Not available. 
a Preliminary figures. 
b January-June 2014. c Since January 2014, revenue has been classified according to the methodology contained in the 
2014 Manual of Budgetary Classifiers. The data have been reclassified for comparability purposes. 
Source:  Central Bank of the Dominican Republic (v arious years), Informe de la Economía Dominicana 
Enero-Diciembre, and statistics from the Directorate-General of Public Credit. Viewed at: http://www.creditopublico.gov.do/est adisticas/estadisticas_historico.htm . 
1.20.  Starting in 2013, fiscal policy has adopted a tighter stance aimed at fiscal consolidation. 
Expenses, including capital expenditure, were cut sharply in 2013 and 2014, whereas tax revenue 
grew on the back of stronger economic growth an d the effects of the reforms introduced to the tax 
administration. Having posted highly negative results in 2012, the general central government 
balance has been improving since 2013, when the deficit was 2.8% of GDP, and particularly 
in 2014, for which a deficit of 1.2% of GDP was forecast. The overall balance of the NFPS improved from -6.9% of GDP in 2012, to an initial estimate of -1.6% in 2014. Nonetheless, the NFPS deficit could turn out to be slightly larger in 2014, because at the end of October a shortfall equivalent 
to 1.7% of GDP was projected for the year-end. The improvement in the fiscal accounts in 2014 is 
explained by the gradual reduction in the rate of  growth of total central government expenses, 
particularly capital expenditure, and solid growth of total income (excluding grants), 
particularly from the ISR, which was up by 26.2% in the first ten months of 2014, compared to the 
same period in the previous year.
12 
1.21.   As a reflection of the growing liberalization of Dominican foreign trade, taxes on foreign 
trade continued to decline as a proportion of GDP, dropping from 1.5% in 2008 to 0.9% in 2014. 
1.22.   According to official figures released by the Directorate-General of Public Credit, the total 
public debt, which represented 24.5% of GDP in 2008,  grew steadily in the ensuing years, to reach 
a level of 38.3% in 2013 and an estimated 37.9% in  2014. The external public debt accounts for 
around two thirds of the total debt (Table 1.2).13 
1.3  Monetary and exchange-rate policy 1.23.  The main objective of the monetary policy of the Central Bank of the Dominican Republic 
is price stability, as established by the Monetary and Financial Law No. 183-02, 
which contains the main provisions regulating the monetary and financial system, and by the Dominican Constitution of 2010. 
                                               
12 Central Bank of the Dominican Republic (2014a). 
13 Online information from the Directorate- General of Public Credit. Viewed at: 
http://www.creditopublico.gov.do/est adisticas/estadisticas_historico.htm . WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 19 - 
 
  1.24.  Pursuant to Law No. 183-02 of 21 November 2002, monetary and financial administration 
consists of the Monetary Board14 (the top-level body), along with the Central Bank and the 
Banking Supervisory Authority, and it enjoys functional, organizational, and budgetary autonomy. The Monetary Board is responsible for setting the Dominican Republic's monetary, exchange rate 
and financial policies, while the Central Bank implements those policies in accordance with the 
m o n e t a r y  p r o g r a m m e  a p p r o v e d  e a c h  y e a r  b y  t h e  M o n e t a r y  B o a r d .  T h e  m a i n  f u n c t i o n  o f  t h e  Banking Supervisory Authority is to supervise financial intermediaries. 
1.25.  The central bank applies an inflation-targeting scheme as its monetary policy strategy 
(see below); and it uses the monetary policy rate (TPM) as the benchmark interest rate for overnight liquidity provision and absorption operations. To influence the level of the interbank interest rate, the central bank makes daily interventions based on the auction of central bank 
overnight bills and/or repos with yields equivalent to TPM ± 150 basis points. 
1.26.  As agreed in the Stand-By Arrangement with the IMF, in January 2012 the central bank 
formally adopted an inflation-targeting scheme as a vehicle for implementing monetary policy.
15 
The scheme is based on four key elements: (i) pric e stability as the explicit and main goal of 
monetary policy, in addition to the establishment of quantitative targets for inflation; (ii) use of a short-term interest rate as a tool to signal the monetary policy stance; (iii) mechanisms to 
guarantee transparency and accountability; and (iv) definition of a policy stance from a 
forward-looking standpoint on inflationary pressure s, drawing on a wide variety of information. 
Under the Dominican scheme, the established target is defined in terms of the year-on-year variation of the consumer price index (IPC), and includes a scale of inflation targets. 
The corresponding targets and their respective central values and ranges of tolerance were set as 
follows: for 2012, 5.50% +/-1.00%; for 2013, 5.00% +/-1.00%; for 2014, 4.50% +/-1.00%; and for 2015 and beyond, 4.00%+/-1.00%.
16 
1.27.  The authorities stated that the long-term inflation target of 4% was set as a result of 
studies showing that the rate in question is an optimum level compatible with a growth rate of potential GDP, and it is sustainable through time. This scheme will make it possible to anchor the 
expectations of economic agents and investors around the central bank's inflation target, so as to 
create certainty and help eliminate undesired expectations which could disturb the business climate and undermine macroeconomic stability.
17 
1.28.  In 2009 and 2010, monetary policy tended to be expansionary, to mitigate the risks of the 
global financial crisis, with cuts in interest rates and an increase in credit and money in circulation 
(Table 1.3). The central bank maintained an accommodating monetary policy stance to support the economic recovery, by reducing reserve requiremen ts on local currency deposits from 20% to 17% 
in early 2009, and lowering the TPM by 550 basis points to its lowest ever level of 4%. These 
policies allowed for an expansion of bank lending to the private sector, particularly in the last quarter of 2009, which supported the recovery in economic activity. In 2011, following the strong 
growth figures reported in the previous year, po licy was tightened in line with the Arrangement 
with the IMF, and in preparation for the introduction of inflation targeting. As from 2012, the monetary variables M1 and M2 were downgraded to the status of mere indicators, when an inflation-targeting system was put in place, which produced a fall in market interest rates in 2012 
and 2013. The monetary aggregates grew slightly faster in 2014 than in the previous year: at the 
end of December 2014, M1 and M2 were reporting year-on-year growth rates of 9.3% and 10.3%, respectively, while broad money (M3) recorded a year-on-year variation of 9.34%. The authorities 
                                               
14 The Monetary Board is chaired by the Governor of the Central Bank, and consists of the Minister of 
Finance, the Banking Supervisor, and another six member s appointed for a two-year term by the President of 
the Republic. 
15 Inflation targeting is a monetary policy scheme based on setting quantitative targets for inflation over 
a specific time horizon. In a scheme  of this type, the target for inflat ion announced in the central bank's 
monetary program is the no minal anchor of the economy. After an  inflation-targeting regime has been 
adopted, monetary aggregates are used as indicators or variables to support th e decision-mak ing process, 
along with other variables such as  growth or the exchange rate, but they are not policy variables. 
16 Central Bank of the Dominican Republic (2014b). 
17 Online information from the Central Bank of the Dominican Republic, Esquema de Metas de Inflación 
en República Dominicana . Viewed at: http://www.bancentral.gov.do/documentos_varios/ 
Esquema_de_Metas_de_Inflación.pdf . WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 20 - 
 
  stated that this expansion was consistent with the trend of economic activity in 2014, and has 
therefore not put pressure on the price level.18 
Table 1.3 Main monetary indicators, 2008-2014 
 2008  2009  2010  2011  2012 2013 2014  
Monetary aggregates        
Base money (end-of-period variation in %)a 10.0 3.1 4.9 6.8 8.2 0.2 9.5 
M1 (end-of-period variation in %) -7.9 18.6 9.4 5.0 9.9 15.7 9.3 
M2 (end-of-period variation in %) 4.7 14.3 10.0 10.2 9.3 10.7  10.3 
Interest rate  (annual average %)        
Lending rateb 20.1 17.7 12.2 15.7 15.3 13.6  13.8 
Deposit ratec 10.5 7.5 4.8 7.6 7.1 5.6 6.5  
Inflation  (percentage change over 
12 months at the end of the period) 4.5 5.8 6.2 7.8 3.9 3.9 1.6 
Inflation target N/A N/A N/A N/A 5.5 +/- 1 5.0 +/- 1 4.5 +/- 1  
National consumer price index (INPC) 89.0 94.1 100.00  107.8  112.0 116.3 118.2  
Exchange rate        
End-of-period exchange rate (RD$/US$) 35.4 36.1 37.5 38.8 40.4 42.8 44.4 
Period average exchange rate (RD$/US$) 34.5  36.0 36.9 38.1 39.3 41.8 43.5  
Estimated real effect ive exchange rate 
(2010=100)d 100.4  100.0  100.0  100.7  100.9 98.5 100.1  
N/A Not applicable. 
a  Includes bank notes in circulation and demand deposits in local currency. 
b  Annual weighted average of nominal lending rates at full-service banks (bancos múltiples) . 
c Annual weighted average of nominal deposit rates at full-service banks (bancos múltiples) . 
d  IMF data. 
Source:  Central Bank of the Dominican Republic and IMF. 
1.29.  In early 2013, the TPM stood at 5%, and then was lowered to 4.5% before being raised 
to 6.25% in August that year. Monetary policy has maintained a neutral stance since then, without changes in the TPM. The decision to hold the TPM constant during this period was based 
on the trend of inflation prospects, which throughout 2014 remained at the lower bound of the 
target range, or even below it. In the absence of  variations in the TPM, nominal market interest 
rates were stable for most of 2013 and 2014, before  rising in the last few months of the latter 
year, owing to tighter liquidity conditions. Real interest rates broadly tracked nominal rates, 
rising in the last few months of 2014. As the rise in market rates occurred only towards the year end, lending to the private sector in local currency grew strongly for most of the year, 
averaging more than 14% for 2014 as a whole. 
1.30.  The recapitalization of the central ba nk for the purpose of ensuring its financial 
independence remains a priority of the Dominican government. Law No. 167-07 of 13 July 2007 provides for the central bank to be recapitalized over a ten-year period, through the issuance of 
government bonds, supported by direct fund transfers and other financial contributions from the 
government to the central bank. 
1.31.   After rising between 2008 and 2011, the inflation rate has been falling since inflation 
targets were set. The scheme seems to be functi oning, having managed to anchor inflationary 
expectations. Since the introduction of the scheme in 2012, inflation measured as the increase in the National Consumer Price Index (INPC) has fallen, and it has remained below the lower bound 
of the band set for the respective year in 2012 and 2013. The annual average of these rates has 
been below 4.4% since 2012. In 2014, the INPC rose by 1.6%. 
1.32.  The Dominican Republic operates an exch ange-rate regime of managed floating without 
pre-announced targets. The central bank buys and sells foreign currency under the free-market 
quotation system, through the foreign exchange desk ( mesa de cambio ) facility, working with duly 
authorized foreign exchange and financial intermediaries. In general, the central bank's interventions aim to avoid excessive fluctuations in the exchange rate which could affect its price 
stability objective. 
                                               
18 Central Bank of the Dominican Republic (2014a). WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 21 - 
 
  1.33.  During the period under review, the Dominican peso depreciated steadily against the 
US dollar, although the real exchange rate remain ed relatively stable, except in 2013, when there 
was a small real appreciation. 
1.4  Balance of payments 
1.34.  The current account of the Dominican balance of payments reports a structural deficit, 
which peaked in 2008 at 9.4% of GDP. As a consequence of the effect of the global crisis on imports, the balance improved in 2009 but dete riorated again when growth resumed in 2010. 
Nonetheless, since 2011 the deficit has been trending  down owing partly to the robust growth of 
exports and partly to an increase in income from  tourism (travel). The deficit dropped to 4.1% of 
GDP in 2013 (Table 1.4) and is forecast at 3.1% of GDP for 2014. 
Table 1.4.Balance of payments, 2008-2014 
(US$ million) 
 2008 2009 2010 2011 2012 2013 2014a 
1. Current account -4,519  -2,331  -4,006  -4,359  -3,971 -2,537 -1,970  
Current account as a percentage of GDP 9.4 4.8 7.5 7.5 6.6 4.1 3.1 
1.1 Trade balance -9,245  -6,813  -8,395  -8,94  -8,738 -7,377 -7,369  
Exports 6,748  5,483  6,815  8,362  8,936 9,424 9,920  
 Domestic 2,393  1,689  2,711  3,678  4,129 4,474 4,677  
 Free zones 4,354  3,794  4,103  4,684  4,807 4,951 5,243  
Imports -15,993  -12,296  -15,21  -17,302  -17,673 -16,801 -17,288  
 Domestic -13,564  -9,946  -12,601  -14,363  -14,775 -13,690 -13,838  
Free zones -2,429  -2.350  -2,609  -2,939  -2,899 -3,111 -3,450  
1.2 Balance of trade in services 2,962  2,987  2,244  2,924  3,202 3,688 4,246  
Income 4,951  4,836  5,531  5,823  6,140 6,546 7,162  
 Travel 4,166  4,049  4,163  4,391  4,687 5,064 5,638  
 Other 785  787 1,367  1,432  1,453 1,483 1,524  
Expenditure -1,989  -1,849  -3,287  -2,899  -2,939 -2,858 -2,916  
 Freight -957  -842 -1,043  -1,012  -1,071 -1,033 -1,066  
 Other -1,032  -1,007  -2,244  -1,887  -1,868 -1,825 -1,850  
1.3 Primary income -1,748  -1,721  -1,306  -2,176  -2,344 -2,995 -3,197  
Income 729 461 1,180  705 679 666 556 
 Compensation of employees 384  373 204 232 217 223 239  
 Direct investment 0 0 39 40 20 118 0 
 Portfolio investment 62  14 10 10 11 12 13  
 Other investment 283 74 927 422 431 312 303 
Expenditure -2,477  -2,182  -2,486  -2,881  -3,022 -3,660 -3,752  
 Compensation of employees -34 -27 -148 -159 -167 -167 -173 
 Direct investment -1,669  -1,518  -1,698  -1,949  -1,972 -2,629 -2,730  
 Portfolio investment -394 -324 -310 -388 -489 -470 -511 
 Other investment -380  -313 -330 -385 -394 -394 -338  
1.4 Secondary income 3,513  3,216  3,451  3,833  3,909 4,147 4,350  
Income 3,789  3,499  4,257  4,645  4,712 4,956 5,211  
 Family remittances 3,222  3,042  3,683  4,008  4,045 4,262 4,571  
 Other transfers 567  457 574 637 666 694 640  
Expenditure -276 -284 -806 -811 -802 -809 -861 
 Family remittances 0  0 -371 -407 -398 -392 -418  
 Other transfers -276 -284 -435 -405 -404 -417 -443 
2. Capital accountb 135  107 38 30 41 41 26  
3. Net borrowing -4,384  -2,224  -3,968  -4,329  -3,930 -2,496 -1,944  
4. Financial account -4,074  -2,759  -5,147  -3,916  -3,596 -4,079 -3,212  
Direct investment -2,870  -2,165  -2,024  -2,277  -3,142 -1,991 -2,275  
Portfolio investment 376  450 -760 -746 446 -1,765 -1,308  
Medium- and long-term public and 
private debt (net) -496 -759 -1,094  -1,125  -1,132 -658 -241 
Short-term public and private debt (net) -414  178 -391 280 -97 7 -645  
Currency and deposits 2 -2 7 53 43 388 627 
Otherc -671 -461 -885 -102 286 -60 148  
5. Errors and omissions -16 -129  -1,107  575 -106 -243 -655  
6. Global balance (I + II + III) 326  -406  -71 -163  440 -1,341 -614  
7. Financing -326  406 71 163 -440 1,341 614 
Foreign assets -309  638 466 339 -548 1,146 162  WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 22 - 
 
   2008 2009 2010 2011 2012 2013 2014a 
 Reserve assets -309 -638 466 339 -548 1,146 162 
Use of IMF credit and loansd -42  275 391 173 -111 -197 -455  
Transfers (debt forgiveness) 9 301 5 4 3 2 2 
Foreign direct invest ment (reduction of 
arrears) 0 0 402 0 0 0 0  
Other investment – liabilitiese 49 -344 -402 0 0 0 0 
 Debt rescheduling 0  0 0 0 0 0 0  
 Total arrears – other liabilities 49 -344 -402 0 0 0 0 
a  Preliminary figures subject to correction. 
b According to the sixth edition of the Balance of Pa yments Manual, only current payments are included 
in the capital account component, while the forgiven ess of arrears on debts with official creditors 
(bilateral and multilateral) is recorded as exceptional financing. 
c  Includes commercial credits and other capital. d As from 2009, includes the use of IMF credit (disbursements and amortizations) by the government. e Includes drawings on new loans and loan prepayments. 
Note:  The figures presented correspond to the components of the sixth edition of the Balance of Payments 
Manual. The figures for 2008 and 2009 correspond to the fifth edition of the Balance of Payments Manual. 
Source:  WTO Secretariat, based on data from the Ce ntral Bank of the Dominican Republic, International 
Department, Balance of Payments Sub-Directorat e; the Ministry of Fi nance; and the IMF. 
1.35.  In 2014, the external sector performed positively, thanks to the consolidation of economic 
growth in the United States and an improvement in the terms of trade for the Dominican Republic, 
resulting partly from the fall in oil prices on international markets. An analysis of the results, 
using the methodology of the sixth edition of the Balance of Payments Manual, shows that the latter caused a reduction in the oil bill of 11.2% in 2014 compared to the previous year's figure. 
In the case of other foreign exchange-generating activities, income from tourism and family 
remittances rose year-on-year by 11.3% and 7.2%, re spectively in that period, while foreign direct 
investment grew by 18.9%. The trend of these indicators generated a reduction in the 
current-account deficit on the balance of payments, which in 2014 was more than 20% smaller 
than in the previous year.
19 
1.36.  The period under review saw major fluctuations in the value of goods imports. Between 
2008 and 2013, total imports grew at an average no minal rate of just 2.4%, compared to 9% in 
the previous review period (2002-2007). In the crisis of 2008-2009, both imports and exports 
declined, but imports fell faster so the trade deficit narrowed. Since 2010, however, the economic recovery has fuelled import growth, except in  2013. The trade deficit widened in 2010 and 2011, 
but narrowed in 2012, 2013 and 2014. In 2013, the last year for which complete data are 
available, the trade deficit was equivalent to 11.5% of GDP, well below the 19.2% recorded in 2008. Total exports posted average nominal growth of 7.6% per year from 2008 to 2014, similar 
to that observed in the previous report for the pe riod 2002-2007. This is mainly attributable to the 
robust growth of domestic exports. Exports from free zones, while remaining important, performed 
less well, expanding at an annual averag e rate of 3.5% between 2008 and 2014. 
1.37.  The traditional surplus on the balance of trade in services remain virtually unchanged during 
the crisis years. Nonetheless, since 2010 it has been growing thanks mainly to an increase in 
tourism income, which has made it possible to offset outgoings in respect of freight, insurance, and other items. Investment income has been in deficit during the review period, which reflects 
increased repatriation of profits from foreign investment firms. Family remittances from Dominican 
nationals abroad remain an important source of financing for other categories of the current account, as well as providing major support for domestic consumption and, hence, aggregate 
demand and GDP growth. Remittances were badly affected by the global crisis, and in 2013 were 
barely above their pre-2008 crisis levels in value terms. As a percentage of GDP, remittances declined during the review period, from 6.7% in 2008 to 5.4% in 2013. 
                                               
19 Information provided by the Dominican authorities and the Central Bank of the Dominican Republic 
(2014a). WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 23 - 
 
  1.5  Developments in trade and investment flows 
1.5.1  Trade in goods20 
1.5.1.1  Composition of trade in goods 1.38.  Total Dominican exports grew at an aver age rate of 12.4% between 2009 and 2014, driven 
mainly by mineral exports, particularly gold (C hart 1.1). From 2009 to 2014, domestic exports 
(i.e. excluding exports from the free zones) grew vigorously, at an annual average nominal rate of 22.1%, to attain a value of US$4,679 million in 2014 (Table A1.1). This represented 47.1% of 
total Dominican exports in that year, compared to 31.2% in 2009. The period analysed can 
therefore be described as one of change in the ex port structure, in which exports from free zones 
declined relatively and now represent just over half the total, compared to two thirds in 2009. This reflects both the slower growth of exports fr om the free zones, which expanded at an annual 
average rate of 6.7% between 2009 and 2014, and a vigorous recovery of mining exports. In this 
regard, the sharp increase in gold exports, on the order of 30.4% in 2014, together with exports 
of silver, compensated for the ending of ferro nickel mining and exports since late 2013. 
1.39.  In terms of the composition of domestic ex ports, the share of products from the agrifood 
industries slipped to 14.4% of the total in 2014, le d by food preparations (2.5%) and followed by 
cocoa (1.9%) and ethyl alcohol (1.5%). The share of mining products, including precious metals, 
increased to 59.7% of domestic exports in 2014 compared to 35.6% in 2009. This was due to the 
start of gold exports, which represented 33.5% of  domestic exports and 15.8% of total exports in 
2014, having been non-existent at the start of the period. In contrast, the production of base metals decreased substantially, to account for just 4.5% of domestic exports in 2014, compared 
to 11.8% in 2009 (Chart 1.2). The share of manuf actures in total exports remained above 50%. 
1.40.  In the free zones, manufactures represented the vast majority of their total exports in 2014, 
particularly garments, footwear, medical instruments, jewellery, iron and steel products, chemicals 
and cigarettes. The remainder of the export basket consisted mainly of traditional food products 
(Table A1.2). 
1.41.  Total imports grew at an average nomina l rate of 7.4% per year between 2009 and 2014. 
Between 2008 and 2009 they retreated sharply (by about 23%), but since 2010, import levels 
have resumed their expansion, to attain a value of US$17,753 million in 2014 (Table A1.3). In that 
year, total imports broadly repeated their 2013 pe rformance, growing by 3.7% in value terms, 
which is mainly affected by the fall in oil prices on the world market. Manufactured products were 
the main import category. These include imports of transport machinery and equipment (13.9% of 
total imports in 2014), along with chemical products (8.7%), plastics (7.6%) and textiles (7.6%). Imports of mineral products, mostly hydrocarbons, accounted for 23.1% of the total. 
                                               
20 This subsection is based on calculations made by the WTO Secretariat, using data on goods imports 
(f.o.b.) and exports (f.o.b.) for the period 2008-2013, provided by the Dominican authorities. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 24 - 
 
  Chart 1.1 Merchandise trade, 2009 and 2014 
 
2009 2014
(a)    Total exportsa(f.o.b.)
Total US$5,529 million
(b)    Imports (f.o.b.)
Total US$12,384 million Total US$17,753 millionTotal US$9,928 millionPrecious 
metals
8.0%Food products, 
beverages
17.2%
Instruments
11.8%Other
19.3%Plant products
5.1%
Chemicals
3.1%
Textile 
materials
16.9%Machinery 
and 
appliances
11.3%Other
15.5%
Plastics
6.8%Mineral 
products
7.4%Plant products
6.9%
Food products, 
beverages
14.6%
Mineral 
products
7.8%
Chemicals
5.4%
Textile 
materials
13.2%Precious metals
19.1%Machinery 
and 
appliances
8.0%Instruments
9.5%
Food products, 
beverages
5.9%
Mineral 
products
22.5%
Chemicals
8.0%
Textile 
materials
7.6%Machinery 
and 
appliances
16.8%Other
32.4%Food products, 
beverages
6.9%
Mineral 
products
23.1%
Chemicals
8.7%
Plastics
7.6% Textile 
materials
7.6%Machinery 
and 
appliances
13.9%Other
32.2%
 
 
a  Total exports include export s of consumer goods, re-expor ts and exports from free zones. 
Source: Estimates by the WTO Secretariat, based on  data supplied by the Dominican authorities. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 25 - 
 
  Chart 1.2 Merchandise exports, 2009 and 2014  
2009 2014
(a)    Exports of consumer goods and re-exports (f.o.b.)
Total US$1,726 million
(b)    Free-zone exports (f.o.b.)
Total US$3,803 million Total US$5,249 millionTotal US$4,679 million
Precious 
metals
11.5%Food products, 
beverages
27.9%Base metals
11.8%Other
18.0%Plant products
13.5%
Chemincals
1.9%Other
11.8%
Mineral 
products
23.5%Plant products
13.0%
Food 
products, 
beverages
14.4%
Mineral 
products
16.5%
Plastics
5.1%Precious metals
34.7%
Instruments
17.8%Food products, 
beverages
12.3%
Footwear, 
headgear
5.2%Textile 
materials
24.2%
Machinery 
and 
appliances
15.0%Other
12.8%Food products, 
beverages
14.8%
Chemicals
7.2%
Textile 
materials
24.6%Machinery 
and 
appliances
13.2%Other
9.1%Plastics
5.1%Base metals
4.5%
Instruments
17.1%
Footwear, 
headgear
8.0%Precious 
metals
5.2%Precious 
metals
0.3%
 
Source: Estimates by the WTO Secretariat, based on data supplied by th e Dominican authorities . 
1.5.1.2  Direction of merchandise trade 
1.42.  The United States remains the leading ma rket for the Dominican Republic, although its 
share in the latter's total exports was less than in the previous review period, partly owing to the change in the composition of exports mentioned above. Its share of total Dominican exports 
was 49.5% in 2014, accounting for 75.5% of total exports from free zones and 19.3% of domestic 
exports (Tables A1.4 and A1.5 and Chart 1.3). On  the American continent, the second largest 
export market is Haiti, which absorbed 20.2% of domestic exports and 14.3% of total exports WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 26 - 
 
  in 2014, twice as much as in the previous period , followed by Canada with 18.6% of domestic 
exports and 9.2% of total exports in 2014. Export s to Canada grew exponentially as from 2012, 
as a result of gold sales to that country. The European Union received 10% of the Dominican Republic's domestic exports and 8% of its total exports in 2014, while exports to Asia 
grew from 3.9% of the total in 2009 to 4.5% in 2014. 
Chart 1.3 Merchandise trade by trading partner, 2009 and 2014 
 
2009 2014
(a)    Total exportsa(f.o.b.)
Total US$5,529 million
(b)    Total im ports (f.o.b. )
Total US$12,384 million Total US$17,753 millionTotal US$9,928 millionHaiti
11.7%Other
13.0%
United 
States
55.8%EU (28)
8.0%
Other 
America
6.7%EU (28)
8.9%
Mexico
4.7%America
78.8%United 
States
49.1%Other America
6.1%Other Europe
2.6%Other
6.1% Asia
4.5%
America
74.6%Asia
3.4%
United 
States
41.8%
Other America
18.6%EU (28)
10.4%Other Europe
0.8%Japan
1.4%
China
0.1%Other 
Asia
12.6%Other
0.5%
United 
States
41.0%
Mexico
6.0%Other 
America
12.8%EU (28)
9.5%Other Europe
0.9%China
11.0%Other 
Asia
4.7%Other
2.4%
America
74.2%America
69.5%Europe
11.2%Europe
10.4%Asia
14.1%Asia
17.7%Japan
2.0%Europe
9.1%Europe
10.6%Other Europe
0.2%
Haiti
14.3%
Bolivarian Rep. 
of Venezuela
6.5%Bolivarian Rep. 
of Venezuela
5.2%Canada
0.4%Canada
9.2%
Trinidad 
and 
Tabago
2.6%Trinidad 
and 
Tabago
4.6%
 
a  Total exports include export s of consumer goods, re-expor ts and exports from free zones. 
Source: Estimates by the WTO Secretariat, based on  data supplied by the Dominican authorities. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 27 - 
 
  1.43.  The United States is also the leading source of Dominican imports, contributing to 41% of 
the country's total imports in 2014 (Table A1.6). The European Union was the source of 9.5% of 
Dominican imports in 2014, whereas China acco unted for 11%, the Bolivarian Republic of 
Venezuela provided 5.2%, Mexico 6% and Trinidad and Tobago 4.6%. 
1.5.2  Trade in services 
1.44.  The balance of trade in services was positive throughout the period 2008-2014, and the 
surplus grew by an annual average of 7.7% du ring the period, to a level of US$4,245.5 million 
in 2014 (Table 1.5). The leading category of services  exports in the Dominican Republic is tourism. 
Following a short-lived and slight contraction in 2009 in the wake of the global crisis, tourism income has been growing since 2010, with annua l average growth measured through the travel 
category of 5.3% between 2008 and 2014 (Table 1.5). Tourism remains the Dominican 
economy's leading foreign-exchange earner, ge nerating inflows of US$5,638 million in 2014, 
representing 79.9% of total service exports in that year. Transport accounted for 52.5% of the corresponding outflows in 2014, although th e level was virtually unchanged between 2008 
and 2014; and the trade deficit in transport services in 2013 was less than that recorded in 2008, 
owing to an increase in income. 
Table 1.5 Balance on trade in services, 2008-2014 
(US$ million) 
 2008a 2009a 2010a 2011a 2012a 2013b 2014b 
Balance on trade in services 2,961.8 2,987.3  2,243.7  2,923.7  3,201.5 3,688.1 4,245.9  
1. Credits 4,951.2 4,835.9  5,462,0  5,730.6  6,053.6 6,449.3 7,052.4  
a. Processing services .. ..  55.2 49.0 55.5 64.0 68.5  
b. Transport  363.1 351.8  437.4  446.6  436.0 496.2 492.5  
Freight (air) 5.5 4.4  .. .. .. .. .. 
Maritime (shipping agencies 
and port services) 115.8 93.1 116.5  112.8  86.0 127.7 92 
Air (income from charter 
flights) 4.9 3.0  .. .. .. .. .. 
Travel agency, airport, 
and airport user fees 236.9 251.3  307.3  320.1  335.2 353.4 384.9  
c. Travel 4,165.9 4,048.8  4,163.4  4,391.0  4,686.6 5,063.5 5,638.1  
Non-resident foreign nationals  3,631.1 3,484.2  3,529.7  3,734.3  3,996.1 4,356.5 4,879.4  
Air 3,603.5 3,454.4  3,507.5  3,712.0  3,972.8 4,324.7 4,843.5  
Maritime 27.6 29.8 22.2 22.3 23.3 31.8 35.9 
Non-resident Dominican 
nationals  409.3 449.2  463.2  467.8  505.4 522.6 570.4  
Foreign students  108.8 100.8  112.1  124.8  118.5 116.3 119.2  
Cross-border seasonal workers 
(Haitian) 16.7 14.6  53.7 58.9 61.1 62.0 62.5  
Other .. .. 4.7 5.2 5.5 6.1 6.6 
d. Telecommunications, 
computer and information services 190.2 201.3
 227.6  222.2  229.2 212.4 192.8  
e. Insurance 29.1  24.2  34.2 35.2 39.2 40.5 43.6 
f. Financial services 16.1 20.5  27.0 49.7 56.4 33.4 77.3  
g. Royalties and licence 
fees  0 0 0.0 0.0 0.0 0.0 0.3 
h. Other business services 116.1 106.4  156.6  160.1  188.8 184.6 185.6  
i. Government transactions 
n.e.s. 63.7 82.9 360.6  376.8  361.9 354.7 353.8  
2. Debits -1,989.4 -1,848.6  -3,218.3  -2,806.9  -2,852.1 -2,761.2 -2,806.9  
a. Processing services .. .. 0.0 0.0 0.0 0.0 0.0 
b. Transport -1,162.3 -1,006.0  -1,311.2  -1,306.3  -1,362.7 -1,369.0 -1,414.3  
Freight -957.2 -842.1  -1,043.1  -1,011.7  -1,071.0 -1,033.4 -1,066.0  
Maritime -901.4 -796.9  -979.4  -942.6  -999.5 -968 -997.9  
Oil and petroleum products -165.2 -156.3  -183.0  -210.7  -236.7 -268.4 -254.4  
National -639.8 -526.4  -690.5  -630.0  -660.8 -596.2 -639.4  
Free zones -96.4 -114.2  -105.9  -101.9  -102.0 -103.4 -104.1  
Air -55.8 -45.2  -63.7  -69.1  -71.5 -65.4 -68.1  
National -34.8 -25.8  -38.5  -45.0  -48.7 -37.1 -40.5  
Free zones -21.0 -19.4  -25.2  -24.1  -22.8 -28.3 -27.6  
Passengers -205.1 -163.9  -266.7  -293.4  -290.5 -334.2 -347.1  
Other transport 0.0 0.0  -1.4 -1.2 -1.2 -1.4 -1.2  WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 28 - 
 
   2008a 2009a 2010a 2011a 2012a 2013b 2014b 
c. Travel -327.0 -340.6  -395.2  -395.8  -399.2 -377.9 -414.2  
Residents -312.2 -333.4  -373.6  -369.9  -373.7 -361.0 -393.6  
Students abroad -14.8 -7.2 -21.6  -25.9  -25.5 -16.9 -20.6  
d. Telecommunications, 
computer and information 
systems -64.2 -50.5  -66.8  -83.6  -60.4 -55.1 -48.1  
e. Insurance -112.3 -110.8  -153.5  -168.1  -169.9 -181.3 -190.8  
f. Financial services -28.0 -50.0  -942.5  -455.3  -454.0 -339.4 -343.2  
g. Royalties and licence 
fees -50.7 -53.4  -65.5  -71.4  -59.2 -63.7 -81.4  
i. Other business services 
(including cultural services) -150.3 -121.3  -152.9  -190.2  -211.8 -234.4 -187.5  
j. Government transactions 
n.e.s. -94.6 -116.0  -130.7  -136.2  -134.9 -140.4 -127.4  
.. Not available. 
a Revised. 
b Preliminary. 
Note:  n.e.s. = not elsewhere specified. Source: Data provided by the Dominican authorities. 
1.45.  The Dominican Republic also maintains a surplus on its trade in telecommunications 
services, whereas its trade in insurance, financial and business services is in deficit. 
1.5.3  Foreign direct investment 
1.46.  The Dominican Republic experienced a boom in foreign direct investment (FDI) during the 
period under review. Inward FDI totalled US$16,743 million in 2008-2014 (equivalent to an 
average of around US$2,392 million per year), co mpared to total flows of US$6,719 million in the 
period 2002-2007. This partly reflected investments in the mining sector, which made the Dominican Republic a gold exporter. In fact, the mining sector was the destination for 21.7% of 
FDI inflows, surpassed only by the commerce an d industry sector, which absorbed 24.4% of 
inward FDI in the period under review. The telecommunications and tourism sectors received 8.2% and 8.5% of total FDI, respectively, the real estate sector received 13.0%, the electricity sector absorbed 10.4%, and the financial sector 6.3%. FDI flows to the free zones continued to decline, 
and accounted for just 5% of total FDI flows, compared to 8.4% in the period 2002-2007 
(Table 1.6). 
Table 1.6 Foreign direct investment by sector, 2008-2014 
(US$ million) 
 2008 2009  2010  2011  2012  2013 2014a Total 
Total  2,870 2,165  2,024  2,277  3,142  1,991 2,275 16,743  
Electricity 113 121 108 259 305 450 386 1,742  
Commerce/industry 574 280  566 355 1,257  404 641 4,077  
Real estate 527 436 264 160 203 274 306 2,170  
Tourism 228 186  180 108 162 257 301 1,422  
Telecommunications 213 181 500 54 -21 188 257 1,372  
Financial 168 137  93 134 159 152 205 1,048  
Free zones 45 67 72 148 163 150 191 836 
Mining 357 758  240 1,060  1,169  93 -39 3,638  
Transport 645 0 0 0 -255 25 27 442 
a  Preliminary figures subject to revision. 
Note:  The negative figures shown for some sectors represent operational losses and/or disinvestment. 
Source:  Central Bank of the Dominican Republic. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 29 - 
 
  1.47.  The main sources of FDI in the period 2008-2014 were Canada (accounting for 24.7% 
of total flows), the United States (19.8%), Mexico (12.3%), Spain (5%) and the United Kingdom (4%). France, the Netherlands and Italy contributed jointly 3.6% of total FDI flows received by the Dominican Repub lic during this period (Table 1.7). 
Table 1.7 Foreign direct investment by country of origin, 2008-2014 
(US$ million) 
 2008 2009  2010  2011  2012  2013  2014a Total 
Total flows 2,870 2,165  2,024  2,277  3,142  1,991  2,275 16,743 
Canada 383 773 696 1,126  851 143 158 4,130 
United States 360 455  1,055  499 252 374 316 3,311 
Mexico 1,055 273 433 73 -32 6 244 2,052 
Spain 181 151  203 137 128 33 6 839 
United Kingdom 591 -3 -1 26 27 25 3 668 
France 88 70  35 25 -1 48 40 305 
Netherlands -73 96 50 28 10 83 40 234 
Grand Cayman 1 -44  5 66 84 9 -10 111 
Italy 11 16 8 16 1 0 10 62 
Switzerland 31 3  0 7 1 2 1 45 
Other 65 28 -459 274 1,822  1,268  1,467 4,987 
a  Preliminary figures subject to revision. 
Note:  The negative figures shown for some sectors represent operational losses and/or disinvestment. 
Source:  Central Bank of the Dominican Republic. 
1.6  Outlook 
1.48.  The outlook for the Dominican economy is positive. The central bank estimates that, after 
growing by 7.3% in 2014, real GDP is likely to expand by between 4.5% and 5% in 2015, 
a rate that is close to its potential. The central bank considers that the balance of risks in the economic growth forecasts is biased upwards owing to the recovery of the United States economy, 
the main market for Dominican exports, and the fall in international oil prices, which is expected to 
boost Dominican economic activity. On the inflation front, the central bank forecasts that, following 
an average of 1.6% in 2014, the inflation rate will average 4% year-on-year in 2015. Here the 
balance of risks in the inflation forecast are on the downside, owing to lower oil prices and less 
domestic pressures since more moderate economic  growth is expected in 2015. In this regard, 
the growth of lending to the private sector in local currency is expected to ease to a range of 
between 10%-12%, year-on-year in 2015, compared to 13%-15% in 2014.
21 
1.49.  Prospects for the external sector are positive, bearing in mind the terms-of-trade 
improvement caused by the fall in oil prices in recent months, and the potential impact on international markets of a rapid recovery of the United States economy. The central bank expects 
the current account balance to continue the correction process that began in 2011; so it is 
forecasting slower total import growth (2%, year-on-year) and a stronger performance by total exports (4.6%). As a result, the current account deficit would be between 2.3% and 2.5% of GDP 
by the end of 2015.
22 
1.50.  In the fiscal sector, the government is fore casting a primary surplus of 0.5% of GDP and an 
NFPS deficit of 2.4% of GDP. The estimates contained in the monetary programme see the 
quasi-fiscal deficit declining to 1.4% of GDP in 2015. As a result, the consolidated public sector 
balance would be in deficit by 3.8% of GDP by the year-end.23 
1.51.   Following a mission to Santo Domingo in November 2014, the IMF stated that the 
near-term outlook appears more favourable than envisaged at the time of the 2014 Article IV 
consultation. Real GDP growth had accelera ted to 7% (year-on-year) in the period 
                                               
21 Central Bank of the Dominican Republic (2014b). 
22 Idem. 
23 Idem. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 30 - 
 
  January-September of 2014, driven by a pick up in tourism and construction; and open 
unemployment had declined to 6%. Inflation remained low (2.9% year-on-year in October), helped in part by a decline in tradable goods prices and slowing exchange rate depreciation. 
The external current account deficit remained broadly unchanged relative to 2013 (around 4% of 
GDP), but significantly lower than the 2010–2012 le vels. This improvement reflects the coming on 
stream of gold exports, favourable terms of trade, and strong remittances and tourism revenue. The fiscal deficit target set in the 2014 budget (2.8% of GDP) is also expected to be met.
24 
1.52.  For 2015, the IMF projected real GDP growth  of about 4.5%, with inflation rising to the 
midpoint of the central bank's target range. Th e external current account deficit is expected 
to shrink to 3% of GDP, owing mainly to the decline in oil prices. The country was recommended to continue with fiscal consolidation to strengthen debt sustainability and lower 
external borrowing requirements.
25 
 
                                               
24 IMF Press Release No.14/515 "IMF Staff Concludes Visit to the Dominican Republic", 
13 November 2014. Viewed at: http://www.imf.org/external/np/sec/pr/2014/pr14515.htm . 
25 Idem . WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 31 - 
 
  2  TRADE AND INVESTMENT REGIMES 
2.1  General legal and institutional framework 2.1.  The legal and institutional framework for the formulation and implementation of the 
Dominican Republic's trade policy has remained virtually unchanged since the last Trade Policy 
Review in 2008, and is based on the Constitu tion and on a number of laws, regulations and 
decrees. Although the Constitution was reformed in 2010, the reform process did not give rise to any substantial change in relation to foreign trade. Nonetheless, several legal changes were made 
to the implementation of trade policy in areas such as trade facilitation, free zones and 
government procurement (Section 3). 
2.2.  The Dominican Republic is a democrat ic state consisting of 31 provinces and a 
National District. Its political system is based on three powers: executive, legislative and judicial, 
established through its Constitution (Box 2.1).
1 The President of the Republic represents the 
Executive, legislative power rests with a two-chamber Congress, and judicial power is vested in the Supreme Court of Justice and other courts created by the Constitution and Dominican laws. 
The Constitution prevails over all other laws, decrees, resolutions and regulations.
2 
The Constitution was amended once, in 2010.3 The main changes include the elimination of 
consecutive re-election of the President, and the synchronization of presidential and parliamentary 
elections. The most recent elections took place in May 2012, for the presidency, and in May 2010 
for Congress. In both cases, the next elections will be held in 2016, so members of Congress 
elected in 2010 will serve an exceptionally long term of six years. 
Box 2.1 System of government 
Executive power: is exercised by the President of the Republic in the capacity of Head of State and 
Government, who is elected every four years by direct universal suffrage, without the possibility of 
consecutive re-election (Article 124 of the Constitution). Prior to the reform of 2010, the President 
of the Republic could stand for re-election in th e immediately following term, but thereafter could 
never again stand for the same post. 
Legislative power: is vested in the National Congress. This consists of the Senate of the Republic, which has 
32 senators, one for each province and one for the Na tional District; and the Chamber of Deputies, with 
190 deputies. Senators and deputies are elected by direct universal suffrage for four-year terms (Articles 78 
and 81 of the Constitution). Prior to the 2010 Constitutional reform, legislative and presidential elections were 
held two years apart. The 2010 Constitution unified the two elections. 
Judicial power: is exercised by the Supreme Court of Justice and other courts created by the 2010 
Constitutional reform and by the laws. The Supreme Cour t of Justice consists of at least 16 judges, who are 
elected by the National Council of Magistrates for seven-ye ar terms, with the possibility of being re-elected for 
a new period (Articles 152 and 180 of the Constitution).  
Preparation of laws: the legislative procedure for formulating a law consists of the following stages: 
initiative, discussion, approval, enactment and publication. The initiative consists of the presentation of a draft 
law by the President of the Republic, deputies, senators , the Supreme Court of Justice (on judicial matters), 
the Central Electoral Board (on electoral issues), or by a group of citizens represen ting at least 2% of the 
electoral roll. Draft laws are discussed successively in both chambers, starting with the originating chamber. If 
approved in both chambers, the draft law is sent to the President, who may: (a) make observations and send it 
back to the originating chamber for further discussion; or (b) promulgate and publ ish it for implementation 
(Articles 96 to 102 of the Constitution). If the draft law is returned to Congress for further discussion and the 
two chambers approve it, it will be considered definitively as a law, an d will be enacted an d published. These 
procedures do not apply to decrees, whic h are submitted directly to the Executive.  
Source: Political Constitution of the Dominican Republic (2010). 
2.3.  Under the new Constitution, public administration is also organized in Ministries rather than 
in Secretariats, as was previously the case.4 Currently there are four ministries with specific 
functions in the sphere of trade policy: the Minist ry of Industry and Trade (MIC), the Ministry of 
Foreign Affairs (MIREX), the Ministry of Financ e (to which the Directorate-General of Customs 
reports), and the Ministry of the Economy, Planning and Development. 
                                               
1 Article 4 of the Constitution of the Dominican Republ ic. The most recent reform  of the Constitution was 
published in Official Journal ( Gaceta Oficial)  No. 10561 of 26 January 2010. 
2 Article 6 of the Constitution of the Dominican Republic. 
3 Since its first publicatio n (1844), the Constitution has been amended 38 times. 
4 Article 134 of the Constitution of 2010 and Article 61 of the Constitution of 2002. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 32 - 
 
  2.4.  According to the Constitution, the President is responsible for directing the 
Dominican Republic's foreign policy, for promulgating the laws and resolutions of Congress and for issuing decrees, regulations and instructions as necessary.
5 The President also has the power to 
sign international treaties which, having been submitted for review by the Constitutional Court6, 
must be ratified by Congress to become valid. Ratified international agreements form part of 
Dominican legislation7, ranking below the Constitution in the hierarchy of laws (except for those 
relating to human rights8), and, according to the authorities, above ordinary laws.9 Disputes 
arising from international treaties can be submitted to arbitration in the national and international 
courts, pursuant to the law, or before jurisdictions set up under the treaty in question.10 
2.5.  Congress is responsible for legislation generally, and in particular for establishing taxes in the 
foreign trade sphere, and for approving or rejecting (but not amending) the international treaties 
signed by the President. Congress may also express opinions on any national or international issue 
through resolutions.11 
2.6.  All laws, resolutions, decrees and regulati ons promulgated by the President are published in 
the Official Journal of the Dominican Republic, which maintains an up-to-date online version.12 
2.2  Trade policy formulation and objectives 2.7.  The main objectives of the Dominican Republic's trade policy continue to be to attract foreign 
investment into the country and to promote and strengthen its export sector. These objectives 
are set out in the National Development Strategy 2030, formulated in 2010
13, and in the 
National Public Sector Multiannual Plan (PNPSP) 2013-2016.14 The Strategy provides the general 
basis for all of the Government's public policies, and is implemented through policies specified in 
the PNPSP and other institutional, sectoral and territorial plans.15 
2.8.  The main institutions that participate in preparing Dominican trade policy are the MIC and 
MIREX. These are supported with different functions by the Ministry of Fina nce and the Ministry of 
the Economy, Planning and Development, among others. The MIC is responsible for formulating 
and ensuring the implementation of foreign trade policies, except in the case of sugar, and for 
promoting foreign trade.16 Its functions also include studying and recommending to the President 
the level of tariffs, and managing trade agreemen ts through the Directorate of Foreign Trade and 
Administration of International Trade Agreemen ts (DICOEX) (see below). The MIREX, acting 
through the National Trade Negotiations Committee (CNNC) (see below), is jointly responsible with the MIC and other participating bodies for coordinating trade negotiations and integration 
schemes, among other matters. 
                                               
5 Article 128 of the Constitution. 
6 Article 185(2) of the Constitution. 
7 Article 26(2) of the Constitution. 
8 Only international treaties or human rights conv entions have the same rank as the Constitution 
(Article 74 of the Constitution). 
9 The authorities stated that the Supreme Court of Justice, acting under its Constitutional mandate, has 
established in its rulings that international treaties are supra-legal, and that they are ranked above the law but 
below the Constitution (Ruling of 9 February 2005, SCJ, B. J. 1131; ruling of 21 July 2010, B. J. 1196). 
10 Article 220 of the Constitution. 
11 Article 93 of the Constitution. 
12 The Official Journal can be viewed at: http://www.consultoria.gov.do . 
13 Article 25 of the National Development Strategy 2030, which was approved through Law No. 1-12 of 
25 January 2012. The Strategy promotes the development of the Dominican Republic on the basis of four strategic pillars: (1) a social and democratic State subject to the rule of law; (2) a society with equal rights and opportunities; (3) a sustainable, in tegrating and competitive economy; and (4) a society with sustainable 
production and consumption that  adapts to climate change. 
14 Sections XI and XIII (Specific Objectives 18 and 25)  of the National Public Sector Multiannual Plan 
2013-2016. Viewed at: http://economia.gob.do/mepyd/publicacion /plan-nacional-plurianual-del-sector-
publico-2013-2016 . The PNPSP identifies a number of priority me asures to improve the attraction of foreign 
direct investment (FDI) and the expo rt capacity of Dominican firms. 
15 Article 3 of the National Development Strategy 2030. 
16 Article 2(C) of the Law on the Organization of the Ministry of Industry and Trade (Law No. 290), 
enacted on 30 June 1966 and amended through Law No. 392-07 of 4 December 2007. The change of name from secretariats to ministries was made through Decree No. 56-10, of 6 February 2010. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 33 - 
 
  2.9.  The DICOEX, which forms part of the MIC, implements and administers the trade agreements 
and treaties signed by the Dominican Republic. It is also the national coordinating authority in dispute settlement processes.
17 In 2008, it prepared the National Plan of Action (PAN) 
to strengthen trade-related capacities, focusing mainly on the agreement with Central America and 
the United States. Since then, the PAN has been updated every two years and has become a tool 
for improving the implementation and taking be tter advantage of all agreements signed by 
the Dominican Republic. Currently, the PAN 2013 is executing, and is articulated with the 
National Development Strategy 2030.18 
2.10.  In addition to the DICOEX, another import ant body in the trade policy sphere is the CNNC, 
which is responsible for coordinating Dominican trade policy and conducting bilateral and multilateral trade negotiations.
19 The CNNC is an interagency body encompassing 16 institutions. 
It is chaired by the MIREX, with the MIC serving as vice-chair.20 There is also a Civil Society 
Consultative Council, through which civil society can participate in the trade negotiations. The Council's functions have not changed since it was created
21 and include advising the Government 
on negotiations for trade agreements, and assisting in their monitoring and implementation. 
2.11.  The National Council for Free Export Zones is responsible for evaluating and enforcing 
legislation relating to the free zones. 
2.12.  The Tariff Analysis Commission is tasked with advising the Government on adjustments to 
current tariffs, as necessary to fulfil the multilateral and bilateral commitments assumed by the country. The authorities stated that the Commission remains in force and is convened at the request of the Ministry of Finance.
22 
2.3  International trade relations 
2.3.1  World Trade Organization (WTO) 2.13.  The Dominican Republic became a WTO Member on 9 March 1995.
23 The Ministry of Foreign 
Affairs represents the country at the WTO, and this report is its fourth Trade Policy Review. 
The Dominican Republic grants most-favoured-nation (MFN) status to all its trading partners, whether or not WTO Members. 
2.14.   The Dominican Republic participated in the post-Uruguay Round negotiations on basic 
telecommunications and financial services. In 1995, through the Second Protocol to the General Agreement on Trade in Services (GATS)
24, the Dominican Republic amended the 
commitments on financial services assumed in 1994, and in 1998 it adopted the Fifth Protocol25, 
which replaces the commitments contracted under the Second Protocol.26 The Dominican Republic 
adopted the Fourth Protocol  to the GATS in 1997.27 It is also party to the Agreement on 
Information Technology but not to the Plurilateral Agreements on Government Procurement and 
Trade in Civil Aircraft. 
                                               
17 Decree No. 610-07 of 23 October 2007. 
18 The 2013 PAN can be consulted in Ministry of Industry and Trade  (2013). The 2010 PAN can be 
viewed at: http://www.seic.gov.do/media/10810/PAN 2010 _Final Version_ Espa%C3%B1ol.pdf . 
19 Article 1 of Decree No. 74-97, of 10 February 1997. 
20 Ibid., Article 2, and Decree No. 52-99 of 17 February 1999. 
21 Article 4 of Decree No. 74-97. 
22 The Commission is chaired by the Ministry of Financ e, and consists of the Mi nistry of the Economy, 
Planning and Development; the Mini stry of Industry and Trade; the Ministry of Agriculture, and the 
Directorate-General of Customs (Article 5 of Law No. 146-00 of 27 December 2000). 
23 The Marrakesh Agreement establis hing the World Trade Organization was ratified on 20 January 1995 
through Resolution No. 2-95 of the National Congress. 
24 WTO document GATS/SC/28/Suppl.1 of 28 July 1995. 
25 As a result of the negotiations on financial services of 1997, the Dominican Republic adopted a new 
text in 1998 (WTO document GATS/SC/28/Suppl.3 of 26 February 1998), which replaced the section on financial services in its 1995 schedule of commitments annexed to the GATS (GATS/SC/28/Suppl.1 of 28 July 1995). 
26 The Fifth Protocol entered into force in June  2003 (WTO document WT/LET/447 of 26 June 2003). 
27 As a result of the negotiations on basic telecommunications of 1994-1996, in 1997 the 
Dominican Republic added to its 1995 schedule of specific commitments partial commitments with respect to 
basic telecommunications, and amended its commitments  on data transmission services (WTO document 
GATS/SC/28/Suppl.2 of 11 April 1997). WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 34 - 
 
  2.15.  In May 2013, the Dominican Republic notifi ed the WTO of its acceptance of the Protocol 
amending the Agreement on Trade-Related Aspect s of Intellectual Property Rights (TRIPS).28 
2.16.  In fulfilment of the commitments undertaken in the WTO framework, the 
Dominican Republic has submitted numerous notifications since 2008 (Table A2.1), the most 
recent being the Category A measures under the WTO Trade Facilitation Agreement.29 
Nonetheless, in January 2015, a number of notifications remained pending.30 
2.17.  During the period under review, the Dominican Republic had recourse to the WTO dispute 
settlement mechanism, albeit on a very limited basi s. The country filed a single complaint, the first 
since its accession to the WTO, against Australia in relation to tobacco packaging (Table A2.2). The Dominican Republic also participated as a third party in five cases, of which four are related to the same provisions introduced by Australia. In these cases, and also in the case in which the 
Dominican Republic participated as a complainant, the Panel was established in late 2014. 
During this same period, there was a single complaint filed against the Dominican Republic, by Central American countries that challenged the safeguard measures imposed by the 
Dominican Republic on imports of tubular fabric  and polypropylene bags. The case ended in 2012 
with the adoption of the Panel report.
31 
2.18.  The Dominican Republic is an active participant in the work of the WTO and in the 
Doha Development Round negotiations. It recognizes the importance of completing these 
negotiations and improving the WTO disciplines, to guarantee a fair multilateral system that promotes greater participation in world trade by developing countries, particularly the small, vulnerable economies. It also advocates the establishment of a special agricultural safeguard 
mechanism for developing countries.
32 In the framework of the negotiations, the 
Dominican Republic participates in several negoti ating groups, particularly the Group of Small, 
Vulnerable Economies, on the topics of agricultur e, market access for non-agricultural products, 
and rules. It also participates in the African, Caribbean and Pacific (ACP) Group of States, in the 
G-9033 and in the Group of 33 or the "Friends of Special Products" in the agricultural sector. 
The Dominican Republic is also a co-sponsor of the proposal to establish a database of 
geographical indications for wines and spirits34, and other provisions in the intellectual 
property area.35 
2.3.2  Regional agreements 2.19.  As of January 2015, the Dominican Republic had five trade agreements in force, including 
one with the United States, its main trading partne r. During the period 2008-2014, it signed just 
one new trade agreement: the Economic Partnership Agreement (EPA) between the European Union and the member countries of the Caribbean Forum (CARIFORUM).
36 
This agreement, signed on 15 October 2008, entered into force for the Dominican Republic on 
1 January 2009 (Table 2.1) and coexists with the agreement that the Dominican Republic has 
signed with the countries of the Caribbean Comm unity (CARICOM). The Dominican Republic also 
has a trade agreement with the Central American countries, which remains in force and exists 
alongside the agreement it signed with the Un ited States and Central America (CAFTA-DR). 
It also has a partial scope agreement with Panama, which grants tariff preferences to a small 
                                               
28 WTO document WT/L/641 of 8 December 2005. 
29 WTO document WT/PCTF/N/DOM/1 of 31 July 2014. 
30 Online information from the WTO. Viewed at: 
http://stat.wto.org/CountryProfile/WSDBC ountryPFView.aspx?Language=E&Country=DO . 
31 In total, the Dominican Republic has participated seven times as a respondent and eight times as a 
third party since the creation of the WTO. Online information from the WTO. Viewed at: https://www.wto.org/engl ish/tratop_e/dispu_e/dispu_by_country_e.htm . 
32 WTO documents WT/MIN(09)/ST/50 of 1 December 2009, and WT/MIN(11)/ST/16 of 
15 December 2011. 
33 The G-90 consists of the countries of the Africa n Group, the ACP group, and the least developed 
countries. 
34 WTO document TN/IP/W/10/Rev.4 of 31 March 2011. 
35 WTO document TN/C/W/52 of 19 July 2008. 
36 The Caribbean Forum (CARIFORUM) encompasses 16 Caribbean countries: Antigua and Barbuda, 
Bahamas, Barbados, Belize, Cuba, Dominica, Dominican Re public, Grenada, Guyana, Haiti, Jamaica, Saint Kitts 
and Nevis, Saint Lucia, St Vincent and the Grenadines, Suriname, and Trinidad and Tobago. In the agreement between CARIFORUM and the EU, al l CARIFORUM member countries participate except for Cuba. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 35 - 
 
  number of products. All of these agreements have been notified to the WTO, except those with 
CARICOM and Panama. 
2.20.  According to the authorities, the trade agreements signed by the Dominican Republic, 
in particular the CAFTA-DR and the Economic Pa rtnership Agreement with the EU, have promoted 
the modernization of government entities and harmonization with international trade standards, 
leading to greater legal certainty and trade facilitation. 
Table 2.1 List of regional trade agreements signed by the Dominican Republic (in force, 
whether or not notified), 2008-2014 
Agreement with Date of entry 
into force Coverage based on 
notification to the WTO  Notification to the WTO 
Year Document series 
 European Union 
and CARIFORUMa 01-Jan-2009  Goods and services 2008 WT/REG255/N/1/Rev.1  
S/C/N/469/Rev.1 
 United States and 
Central America 
Costa Rica 
Dominican Republic 
Guatemala 
Honduras 
Nicaragua 
El Salvador 
United States   
 
01-Jan-2009 
01-Mar-2007 
01-Jul-2006 
01-Apr-2006 
01-Apr-2006 
01-Mar-2006 
01-Mar-2006 Goods and services 2007 WT/REG211/N/4 
S/C/N/391 
 Central  America  
Costa Rica Nicaragua El Salvador Guatemala Honduras   
07-Mar-2002 
03-Sep-2002 
04-Oct-2001 15-Oct-2001 
19-Dec-2001 Goods and services 2012 WT/REG305/N/1 
S/C/N/614 
 CARICOMb 
Dominican Republic 
Suriname 
Guyana 
Barbados 
Jamaica 
Trinidad and Tobago  
05-Feb-2002 
08-Aug-2005 
06-Oct-2004 
01-Dec-2001 
01-Dec-2001 
01-Dec-2001 Goods and services Pending N/A 
 Panama  02-Nov-2003 Goods Pending N/A 
N/A Not applicable. 
a The CARIFORUM countries include the Dominican Re public, Cuba and all CA RICOM member countries 
except Montserrat. In the agreement between CA RIFORUM and the European Union, all CARIFORUM 
countries participate except for Cuba. 
b In the agreement between the Dominican Republic  and CARICOM, all CARICO M countries participate 
except the Bahamas and Haiti. Nonetheless, for the least developed countries of CARICOM 
(Antigua and Barbuda, Belize, Dominica, Grenada, Mo ntserrat, Saint Kitts and Nevis, Saint Lucia, and 
Saint Vincent and the Grenadines) that are not included in the Table, the dates on which the agreement entered into force are not available. According to the Dominican authorities, the tariff 
reduction schedule for these coun tries was not yet being applied. 
Source: WTO Secretariat. 
2.21.  Of its five regional agreements, only the one signed with Panama covers merchandise trade 
alone. The other four encompass trade in goods and services, and also address issues such as 
intellectual property, government procuremen t, the environment, and dispute settlement. 
Other provisions included in some of these four agreements deal with e-commerce, the environment, and competition policy (Table 2.2). 
Table 2.2 Topics covered by the regional ag reements signed by the Dominican Republic 
Chapters/topics CAFTA-DR CARIFORUM-EU  DR-CA CARICOM Panama  
Market access, tariff and non-tariff 
measures Yes Yes Ye s Yes Yes 
Rules of origin Yes Yes Yes Yes Yes 
Sanitary and phytosanitary measures Yes Yes Yes Yes N/A WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 36 - 
 
  Chapters/topics CAFTA-DR CARIFORUM-EU  DR-CA CARICOM Panama  
Technical barriers to trade Yes Yes Yes Yes N/A 
Trade defence Yes Yes Yes N/A N/A  
E-commerce Yes Yes N/A N/A N/A 
Services Yes Yes Yes Yes N/A 
Intellectual property Yes Yes Yes Yes N/A 
Competition policy N/A Yes Yes - Yes 
Investment Yes Yes Yes Yes N/A 
Environmen t Yes Yes N/A - N/A 
Dispute settlement Yes Yes Yes Yes Yes 
Government procurem ent Yes Ye s Yes Yes N/A 
N/A Not applicable. 
Source: WTO Secretariat, based on information provided by the authorities. 
2.22.  In 2013, the trading partners with which the Dominican Republic had an agreement in force 
accounted for about 62% of total Dominican trade, with the United States accounting for 40.3% 
(Table 2.3). 
Table 2.3 Trade between the Dominican Repub lic and the countries with which it has a 
trade agreement 
 % of total trade of the 
Dominican Republic 
2013 % of Dominican 
exports 
2013 % of Dominican 
imports 
2013 
Economic Partnership Agreement 
- EU (28) - CARIFORUM (excl. Cuba) 19.1 
9.0 
10.1 25.4 
8.9 
16.5 15.6 
9.0 6.6 
CAFTA 
- United States 
- Central America 42.9 
40.3 
2.6 45.4 
43.7 
1.7 41.4 
38.4 
3.0 
Central America 2.6 1.7 3.0 
CARICOM (excl. Bahamas and Haiti) 3.4 1.5 4.4 
Panama 0.4 0.3 0.4 
Source: WTO Secretariat, based on information provided by the authorities . 
2.23.  As of December 2014, the number of tariff lines liberalized under each of the agreements 
signed by the Dominican Republic varied between  3,774 and 6,676. Of these, over half already 
had a zero MFN tariff (Table 2.4). 
Table 2.4 Tariff lines liberalized by the Do minican Republic under each of its trade 
agreements 
 Lines excluded 
under each 
agreement 
(% of total lines) Lines with a zero tariff 
under each agreement at 
December 2014 Lines with zero MFN 
tariff and zero tariff 
under the 
agreements 
(No. of lines) % of total 
lines No. of 
lines 
Economic Partnership Agreement 8.0 68.2 4,633 3,711 
CAFTA-DR 
- Costa Rica; Nicaragua 
- Other parties  
0.0 
0.0  
82.3 
82.3  
5,589 
5,590  
3,717 
3,717 
Central America 1.3 98.3 6,676 3,719 
CARICOM 3.5 95.7 6,499 3,718 
Panama n.a. 55.6 3,774 3,648 
n.a. Not available. 
Note:  The preferential tariffs are defined under th e HS 2007 classification in force in 2014, and total 
6,793 lines. 
Source: Estimates by the WTO Secretariat, ba sed on data provided by the authorities. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 37 - 
 
  2.3.2.1  Agreement between the European Union and CARIFORUM 
2.24.  The Economic Partnership Agreement (EPA) between the European Union and the 
CARIFORUM countries was signed on 15 October 200837 and came into force provisionally 
on 29 December 2008, before entering into force definitively for the Dominican Republic 
in January 2009. This agreement replaced the tariff preferences contained in the 
Cotonou Agreement, which, as they were unilateral, were covered by a WTO waiver until 2007. The new agreement is based on reciprocity of tariff  preferences, but has flexibilities in terms of 
implementation times for the CARIFORUM countries. The agreement does not replace the 
1998 agreement between the Dominican Republic and CARICOM, but supplements it, mainly in the 
area of services.
38 
2.25.  The EPA covers goods, services and inve stment, and is the second most comprehensive 
trade agreement signed by the Dominican Republic , after the CAFTA-DR The agreement covers all 
tariff lines, except those relating to arms and ammunition (HS Chapter 93). On its entry into force, the EU liberalized all its tariff lines except for rice and sugar. Rice was liberalized in 2010, whereas 
the EU reserved the right to apply the MFN tariff on sugar, under certain conditions, 
until September 2015.
39 The CARIFORUM countries, in turn, negotiated a gradual liberalization of 
their tariff lines over a 25-year period, with some exceptions, mainly in the agricultural sector. 
The excluded lines total 512 (at the 8-digit level) for the Dominican Republic, and correspond to 
products such as meat, fish, and certain dairy products. As of December 2014, 68% of the Dominican Republic's tariff lines at the 8-digit level had been liberalized under the agreement. According to the tariff reduction schedule, most of the lines (about 4,529) were liberalized in 2009 
when the agreement entered into force (Table 2.5). Of these lines, 3,645 had already benefited 
from a zero MFN tariff in 2008. For the others, the tariff would be reduced gradually, generally every two years, to reach zero in 5, 10, 14, 15, 20 and 25 years. The most recent tariff elimination 
was completed in 2013 and, according to the schedule, the next one will occur in 2018. 
In that year, 565 additional lines will be liberalized. Once the liberalization process has been completed, 92% of 8-digit lines should be duty fr ee in 2033. Dominican products that benefit from 
longer transition periods (20 and 25 years) total 288 lines and include fruit, vegetables, biscuits, 
bread, cigarettes, cigarillos, cement, plastics, barb ed wire, wire netting, wire fences, and freezers. 
Unlike in the agreement with CARICOM, under th e EPA products manufactured in the free zones 
are considered originating and are entitled to preferential tariff treatment.
40 
Table 2.5 Tariff reduction programme for the Dominican Republic under the EPAa 
Year 
(transition period in brackets) Number of lines that will be 
duty free % of total Dominican 
Republic tariff lines 
2009 – entry into force 4,529 66.7 
2013 (5 years) 104 1.5 
2018 (10 years) 565 8.3 
2022 (14 years)b 8 0.1 
2023 (15 years) 757 11.1 
2028 (20 years) 187 2.8 
2033 (25 years) 101 1.5 
Total 6,251 92.0c 
a The count of tariff lines (at the 8-digit level) is  based on the HS 2007 nomenclature of the tariff 
schedule in force in 2014, which contains a total of 6,793 lines. 
b Products to be liberalized over a 14-year period are certain type s of milk and creams. 
c The agreement did not include 542 tariff lines (8% of the total). Of these, 30 related to Chapter 93 
(Arms and ammunition), which were excluded entirely. 
Source:  WTO Secretariat, on the basis of the Economic Partnership Agreement between the European Union 
and CARIFORUM. 
                                               
37 CARIFORUM encompasses all countries of the Cari bbean community or CARI COM (except Montserrat) 
plus the Dominican Republic and Cuba. Among CARIFORU M countries, Cuba is the only one that does not 
participate in the agreement with the European Union.  The CARIFORUM countries signed this agreement on 
15 October 2008, except for Guyana which signed it on 20 October 2008 and Haiti on 10 December 2009 
38 Under the agreement with CARICOM, the schedules of commitments on services have not yet been 
negotiated. 
39 Annex II (paragraph 5(a)) of the CARIFO RUM-EU Economic Partnership Agreement. 
40 Article 2 of the Protocol Implementing the Agreement Establishing the Free Trade Area between the 
Caribbean Community and the Dominican Republic. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 38 - 
 
  2.26.  The EPA also provides that any concession or more favourable treatment on goods and 
services that a CARIFORUM country grants to the EU must also be granted to the other 
CARIFORUM signatory countries.41 
2.27.  The EPA also establishes a ten-year moratorium with respect to other duties and charges on 
imports of products originating in the EU, under which the CARIFORUM countries may continue 
applying them during that period, and will also be able to launch the process for their elimination up to seven years after the signing of the agreement.
42 In addition, the agreement provides 
a period of three years from its signature date (i.e. up to 2011) to eliminate existing export duties 
on originating products (certain products from Guyana and Suriname).43 
2.28.  The agreement between CARIFORUM and the European Union also includes a provision on 
diagonal cumulation of origin, under which products manufactured in CARIFORUM countries may 
include materials originating in other ACP countries and certain overseas territories44 and, at the 
request of the CARIFORUM parties, other countries in the region such as Colombia, Costa Rica, Mexico and certain neighbouring developing countries
45, provided that the inputs used have 
undergone transformation in accordance with the corresponding rules of origin.46 In January 2015, 
the system of cumulation with neighbouring developing countries was not yet being implemented.47 
2.29.  In relation to services, the parties applied a positive list for their commitments, except for 
Mode 3 (commercial presence), for which the CARIFORUM countries applied a negative list. 
2.30.  The EPA also contains provisions on e-co mmerce, intellectual property, competition policy, 
government procurement and the environment. 
2.3.2.2  Free Trade Agreement between the United States, Central America and the 
Dominican Republic (CAFTA-DR) 
2.31.  The Free Trade Agreement between the United States, Central America and the 
Dominican Republic (CAFTA-DR) was signed on 5 August 2004 and entered into force for the 
Dominican Republic on 1 March 2007. The CAFTA-DR is probably the most important agreement 
signed by the Dominican Republic, not only because it includes its largest trading partner, the United States, but also because its implementa tion entailed major changes in its legislation, 
particularly in the domains of customs procedures, intellectual property, telecommunications and 
government procurement. In this regard, the changes made through the CAFTA-DR facilitated liberalization under other trade agreements. The agreement covers goods, services and investment, among other topics. 
2.32.  During the review period, there were no major changes in the application of the 
CAFTA-DR The tariff reductions continued to be implemented according to schedule; and, in general, the amendments to national le gislation needed to implement the agreement had 
already been made and implemented, or were in the process of implementation. The tariff 
reduction schedule extends over a 20-year period until 2025 (Table 2.6). Most tariff lines were liberalized when the agreement entered into forc e — 5,181 in the case of the Dominican Republic, 
of which 3,645 were already subject to a zero  MFN tariff in 2007. As of December 2014, 
                                               
41 Article 238 of the Economic Partnership Agreement between the European Union and the countries of 
the Caribbean Forum (CARIFORUM). On this point, the authorities stated that this provision had not yet been implemented. 
42 Article 16 (paragraphs 3 and 4) of the CARI FORUM-EU Economic Pa rtnership Agreement. 
43 Ibid., Article 14 and Annex I. 
44 Articles 3 and 4 and Annex IX of Protocol I to the CARIFORUM-EU Economic Partnership Agreement. 
The overseas territories include New Caledonia, French Polynesia, Mayotte, Aruba, and Bonaire, among others. 
This cumulation system does not apply to certain products from South Africa. 
45 Under Annex VIII of Protocol I to the CARIFO RUM-EU Economic Partnership Agreement, the 
neighbouring countries included in the cumulation of origin mechanism are the Bolivarian Republic of Venezuela, Colombia, Costa Rica, Cuba, El Salvador, Guatemala, Honduras, Mexi co, Nicaragua and Panama. 
Products such as sugar, cocoa, flours and coffee- based preparations are excluded from the cumulation 
mechanism with these countries. 
46 Annex II of Protocol I. 
47 The cumulation system will have to be implemen ted through administrative agreements within the 
Dominican Republic and the countries that are not party to the agreements in question. No administrative agreement has yet been signed. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 39 - 
 
  the Dominican Republic had liberalized around 82% of its tariff lines. The most recent tariff 
elimination during the review period was made in January 2015, when 1,016 agricultural and manufactured products were liberalized, meaning th at 97% of lines were thus zero-rated under 
the agreement. These include dairy products, meat, fruit, cereals, honey, household electrical 
appliances and hardware articles. After 2015, on ly agricultural products will remain to be 
liberalized, and by 2025 all tariff lines should be duty free. 
Table 2.6 Tariff reduction programme for the Dominican Republic under CAFTA-DR
a 
Year 
(transition period in brackets)b Number of lines that will 
be duty free % of total Dominican 
Republic tariff lines 
2007 – entry into force 5,181 76.3 
2009 (4 years) 2 0 
2010 (5 years) 407 6 
2015 (10 years) 1,016 15 
2017 (12 years) 32 0.5 
2020 (15 years) 143 2.1 
2025 (20 years) 12 0.2 
Total 6,793 100.0 
a The count of tariff lines (at the 8-digit level) is  based on the HS 2007 nomenclature of the tariff 
schedule in force in 2014, which contains a total of 6,793 lines. 
b Although the CAFTA-DR entered into force in 2007, the Dominican Republic took 2006 as the 
first year of implementation of its tariff reduction schedule. 
Source: WTO Secretariat, on the basis of the Agreement between the Dominican Republic, Central America 
and the United States. 
2.33.  Unlike the agreement between the Dominican Republic and Central America, 
goods produced under the free-zone regime benefit from preferential treatment under the 
CAFTA-DR Nonetheless, the Central American countries and the Dominican Republic have the 
option of applying the corresponding MFN tariff in stead, if, at the time of customs declaration, 
they decide to invoke the agreement between th e Dominican Republic and Central America instead 
of the CAFTA-DR.48 On this point, the authorities stated that the trend is to use the CAFTA-DR. 
2.34.  Like the agreement between CARIFORUM and the European Union, the CAFTA-DR contains 
a diagonal cumulation of origin provision that includes Canada and Mexico, but only for clothing (goods of HS Chapter 62).
49 By December 2014, the cumulation system was not in force for the 
Dominican Republic, but it was between Mexico and Costa Rica (in force since 2009), Nicaragua, 
Guatemala, Honduras and El Salvador (since 2008).50 
2.35.  During the review period, the Free Trade Commission created under the CAFTA-DR met on 
two occasions, once in 2011 (in El Salvador) and then in 2012 (in the United States).51 As part of 
the DICOEX National Plan of Action (Section  2.2), the year 2014 saw the launch of the 
CAFTA-DR 2015 Strategy, which aims to implement a number of measures to improve national competitiveness and productivity and open up tr ade. According to the authorities, this is a 
programme to communicate and disseminate the prov isions of the agreement, and not a strategy 
programme per se . 
2.3.2.3  Free Trade Agreement with Central America 
2.36.  The Free Trade Agreement between the Domi nican Republic and Central America was signed 
on 16 April 1998 and entered into force for the Dominican Republic in March 2002. This agreement covers goods, services and investment. Its tariff reduction timetable for trade in goods ended 
in 2004, so that by January 2015, 98% of the Dominican Republic's tariff lines had been liberalized 
(Table 2.4). Excluded products included beans,  rice, spirits, tobacco, wheat flour and sugar. 
In the case of services, the schedules of commitm ents between the parties were never negotiated. 
These schedules do exist under the CAFTA-DR and, although in general this includes more 
                                               
48 Annex 3.3.6 of the CAFTA-DR. 
49 Annex 4.1 (Appendix 4.1-B) of the CAFTA-DR. 
50 WTO document WT/TPR/S/279/Rev.1 of 10 July 2013. 
51 Information provided by the authorities. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 40 - 
 
  far-reaching provisions than the agreement with Central America, on both services and goods, 
the agreement with Central America remains in force. 
2.3.2.4  Free Trade Agreement with CARICOM 2.37.  The Free Trade Agreement with the countries of the Caribbean Community (CARICOM)
52 
was signed on 22 August 1998, and entered into force for the Dominican Republic 
on 5 February 2002. All CARICOM countries participate in this agreement, except for the Bahamas and Haiti. On 28 April 2000, the Implementing Pr otocol was signed. Under the agreement and the 
protocol, the parties had to eliminate tariffs on all of their products, with a few exceptions, as from 
the entry into force of the agreement, or in some cases as from 2004. By February 2015, this had not yet been applied by the least developed members of CARICOM
53, which were not required to 
lower their tariffs on products obtained from the Dominican Republic until 2005. 
As of December 2014, 96% of the Dominican Repu blic's tariff lines were  duty free for CARICOM 
countries (Table 2.4). 
2.38.  The tariff lines excluded from the agreement by the Dominican Republic include onions, 
garlic, beans, coconuts and rice. Products from th e free zones do not enjoy any preferences either. 
2.39.  In the case of services, the agreement and protocol defined the legal framework for the 
gradual liberalization of trade in services amon g the parties and the negotiation of schedules of 
commitments. Nonetheless, these schedules have not been negotiated, so in practice, the only 
legal instrument determining the commitments on trade in services between the Dominican Republic and the CARICOM countries is the EPA between the European Union and CARIFORUM (Section 2.3.2.1). According to the authorities, the EPA is not yet being implemented 
among CARIFORUM countries. 
2.40.  In 2012, agreement was also reached on rules of origin for articles of apparel 
(HS Chapter 62), thereby effectively applying preferences to these products. 
2.3.2.5  Partial Scope Agreement with Panama 
2.41.  The Partial Scope Agreement between the Dominican Republic and Panama was signed on 
17 July 1985 and entered into force on 2 November  2003. This agreement gives tariff preferences 
to a limited number of goods; and by January 201 5, about 56% of the Dominican Republic's tariff 
lines were duty free for imports from Panama (Table 2.4). Of these tariff lines, nearly all had a zero MFN tariff. Products from free zones may enter Panama or the Dominican Republic free of duty provided that they are covered by this ag reement. The initial duration of the agreement 
was ten years, but in 2013 it was extended for five further years as stipulated in its text.
54 
The agreement also contains provisions on competition and dispute settlement. 
2.3.3  Other agreements and arrangements 
2.42.  The Dominican Republic is a beneficiary of the preferences granted under the Generalized 
System of Preferences (GSP) by Australia, Bela rus, Canada, Japan, Kazakhstan, New Zealand, 
Norway, the Russian Federati on, Switzerland and Turkey.55 
2.43.  As a result of the entry into force of the CAFTA-DR in January 2008, the Dominican Republic 
and the other Central American countries ceased to benefit from the preferences granted under the Caribbean Basin Trade Partnership Agreement (CBTPA), although this programme allows joint production between the Dominican Republic and Haiti (a CBTPA beneficiary country), and the 
Dominican Republic can thus continue to benefit from CBTPA preferences provided that the goods 
in question undergo some processing in Haiti. 
                                               
52 The Caribbean Community (CARICOM) comprises the following countries or territories: Antigua and 
Barbuda, Bahamas, Barbados, Belize, Dominica, Grenada,  Haiti, Jamaica, Montserrat, Saint Kitts and Nevis, 
Saint Lucia, Saint Vincent and the Grenadines, Suriname, and Trinidad and Tobago. 
53 Antigua and Barbuda, Belize, Do minica, Grenada, Montserrat, Saint Kitts and Nevis, Saint Lucia, 
and Saint Vincent and the Grenadines. 
54 Article 20 of the Partial Scope Agreement between the Dominican Republic and Panama. 
55 Document UNCTAD/ITCD/TSB/Misc.62/Rev. 5, of 2011. Viewed at: http://unctad.org/en/docs/ 
itcdtsbmisc62rev5_en.pdf . WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 41 - 
 
  2.44.  The Dominican Republic does not participate in the Global System of Trade Preferences 
among Developing Countries (GSTP). 
2.45.  As of January 2015, the authorities stated that there were negotiating plans to expand the 
coverage of the agreement with Panama and to sign a trade agreement with Chile. 
2.4  Foreign investment regime 
2.4.1  Legal and institutional framework 2.46.  Foreign investment
56 in the Dominican Republic is mainly regulated by Law No. 16-95 
of 1995, along with its amendments57 and its implementing Regulations of 2004.58 During the 
period 2008-2014, none of these instruments was amended, but new laws were passed to regulate and promote investments in the tourism industry  (Law No. 195-13), the cinematographic industry 
(Law No. 108-10) and the financial sector (Law No. 480-08). The 2010 Constitution (Article 221) 
also guarantees national treatment to foreign investors (except when the Constitution and laws 
provide otherwise)
59; and it also upholds their property rights, such that any expropriation is 
subject to financial compensation.60 
2.47.  In addition to provisions on foreign investment, Law No. 16-95 of 1995 and amendments 
thereto contain provisions on the signing of technology transfer contracts with natural or legal persons abroad, which are optional and include contracts on technological permits, and technical 
assistance and services.
61 
2.48.  At the bilateral level, foreign investment in the Dominican Republic is also governed by the 
investment provisions contained in its trade agreements, all of which include detailed provisions, except for that with Panama.
62 In addition, foreign investment is regulated by Agreements on the 
Reciprocal Promotion and Protection of Investments (ARPPIs). As of December 2014, 
the Dominican Republic had signed 13 ARPPIs, of which several were not yet in force and one had been cancelled.
63 During the period 2008-2014, no new agreement was signed, and in 
February 2013 the ARPPI with Ecuador ceased to apply after the latter cancelled the agreement in 
2008. The Dominican Republic also has agreements with Canada and Spain to avoid double taxation, and it has a tax information exchange agreement with the United States to prevent 
tax evasion. The agreement with Spain was signed in 2011 and entered into force in 2014.
64 
2.49.  In relation to arbitration, the Dominican Republic has signed but not yet ratified the 
Convention on the Settlement of Investment Disputes between States and Nationals of Other States (Washington Convention of 1965 or ICSID Co nvention), which establishes the International 
Centre for the Settlement of Investment Disputes (I CSID). Accordingly, the authorities stated that 
                                               
56 Law No. 16-95 (Article 1) distinguishes three types of foreign investment: (a) foreign direct 
investment (FDI); (b) foreign reinvestment; and (c) ne w foreign investment. Foreig n reinvestment refers to 
the reinvestment of profits in the firm that gene rated them, whereas new foreign investment is the 
reinvestment of profits in a differe nt firm from that which generated th em. Hereinafter, the term "foreign 
investment" covers these three types of investment unless indicated otherwise. 
57 Law No. 16-95 of 20 November 1995. Its most recent amendment was made through Law No. 98-03 
of 17 June 2003. 
58 Regulations implementing Law No. 16-95, promulgated through Decree No. 380-96 of 
28 August 1996. 
59 Article 6 of Law No. 16-95 and Article 221 of the Constitution. The 2002 Constitution made no 
mention of this. 
60 Article 51 of the Constitution. The authorities stated  that there were no dire ct expropriations during 
the period under review affecting foreign investors co vered by Agreements on the Reciprocal Promotion and 
Protection of Investments. 
61 Article 2 of Law No. 16-95. 
62 Its agreements with Ce ntral America, with Central America and the United States (CAFTA-DR) and 
with CARIFORUM and the EU include chapters on investment, whereas its agreement with CARICOM contains an ARPPI in an annex. 
63 The Dominican Republic had signed ARPPIs with the following countries (year of signature in 
parentheses): Argentina (2001); Chile (2000); Ecuador (1998); Finland (2001); France (1999); Italy (2006); 
Republic of Korea (2006); Morocco (2002); Netherland s (2006); Panama (2003); Spain (1995); Switzerland 
(2004); and Chinese Taipei (1999). The authorities report ed that, of these agreements, those signed with 
Argentina, Chile, Italy and the Netherlands had not been ratified and Ecuador had cancelled its ARPPI. 
64 Information provided by the authorities. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 42 - 
 
  complaints may not be lodged against the country under the ICSID Convention but only under its 
Additional Facility Rules. The Dominican Republic applies the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards and the Inter-American Convention on 
International Commercial Arbitration (ratified in 2008). The Dominican Republic is also a member 
of the Multilateral Investment Guarantee Agency (MIGA) and of the Overseas Private Investment 
Corporation (OPIC) of the United States. 
2.50.  At the institutional level, the Dominican Republic Export and Investment Center (CEI-RD), 
continues to be the State agency responsible for applying Law No. 16-95 and for promoting foreign 
investment, particularly in sectors identified as priorities.
65 Among other services, the CEI-RD 
offers technical assistance to potential or established investors, as well as help in negotiating regional trade agreements that include investment provisions. It also manages the Foreign 
Investment Register (see below). The CEI-RD is a decentralized organization, with the board of 
directors drawn from the public and private sectors. 
2.4.2  Registration of foreign investment 
2.51.  Foreign investment does not require any prior approval in the Dominican Republic, but once 
made it must be registered with the CEI-RD.
66 Investments in free zones must be registered with 
the National Council for Free Export Zones, which must notify the CEI-RD. Foreign investment 
registration is compulsory, but failure to do so is not subject to any sanction. During the period 
under review, there was no change in the registration procedures. All foreign investors must register their investment and file the necessary documents for processing as soon as possible, but no later than 180 days after their investment has been made. The reinvestment of profits 
(in the same or a different firm) must be registered within 90 days.
67 Once the documents have 
been approved, the CEI-RD issues a certificate of registration within 15 business days subject to the payment of a fee which, in January 2015, varied between RD$30,000 and RD$260,000 
depending on the amount of the investment.
68 
2.52.  Lack of registration does not affect the vali dity of the foreign investment; but the fact that it 
is needed to fulfil various types of procedures, makes registration necessary in practice. 
For example, the registration certificate has to be presented to repatriate profits or investment in 
the event of sale or liquidation69 and to purchase foreign exchange from the authorized agencies 
for transfers abroad70, as well as to process the residency of the investor. The authorities stated 
that, on average, every year 62% of foreign inve stors registered new investments and practically 
none registered reinvestments. 
2.53.  The Dominican Republic does not apply exch ange controls, although it does require foreign 
exchange movements to be channelled through institutions or agents authorized by the central 
bank's Monetary Board to undertake foreign exchange intermediation.71 
2.4.3  Restrictions on foreign investment 2.54.  In general, all activities are open to foreign investment except those specified in 
Law No. 16-95 and in certain sectoral laws. Article 5 of Law No. 16-95 prohibits foreign investment 
in activities related to the management of toxic,  hazardous, or radioactive waste produced abroad; 
public health; the environment; and weapons production.
72 
                                               
65 Article 6 of Law No. 98-03 of 17 June 2003, and Guía de Inversión 2014  (first edition) published by 
the CEI-RD. 
66 Previously, registrations were made with the central bank, but Law No. 98-03 (Article 9) of 
17 June 2003 transferred registration to the CEI-RD. 
67 Article 4 of Law No. 16-95 (amended by Law No. 98-03) and Article 3 of its implementing 
Regulations. 
68 According to the authorities, the RD$30,000 rate applies to investments of between US$1,000 and 
US$50,000, and the RD$260,000 rate applies to investments in excess of US$10 million. 
69 Article 5 of the Regulations implementing Law No. 16-95 (Decree No. 380-96) and Article 5 of the 
Regulations implementing foreign investment registra tion in the Dominican Republic (Decree No. 214-04). 
70 Article 7 of the Regulations implementing Law No. 16-95 (Decree No 380-96) and Article 7 of the 
Regulations implementing foreign investment registra tion in the Dominican Republic (Decree No. 214-04). 
71 Article 2 of Law No. 16-95 and Article 7 of its implementing Regulations (Decree No 380-96). 
72 According to the authorities, there is no predetermined list of prohibited activities. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 43 - 
 
  2.55.  At sector level, there are restrictions in the mining, broadcasting, energy and air transport 
sectors (Sections 4.2, 4.3 and 4.5), as well as in a number of professional services, such as legal, 
auditing, architecture and engineering services. In mining and hydrocarbons, participation by 
foreign governments or foreign State-owned firms in exploration or exploitation concessions is 
prohibited (Section 4.3.3). In the broadcasting an d air cabotage sectors, foreign ownership of the 
capital of the firms in question is limited to 49 % (Sections 4.5.2. and 4.5.3.1). These restrictions 
remain the same as in the previous review, exce pt in the case of aviation where, since 2013, 
foreign capital has been allowed to own up to 100% of firms operating charter flights, 
provided that the investment belongs to an internationally recognized foreign airline or a subsidiary authorized by the President of the Republic (Section 4.5.3.1).
73 
2.56.  In its agreements with the EU and the United States, the Dominican Republic reserves the 
right to adopt measures relating to the ownership or control of land within 20 km of the border.74 
2.4.4  Foreign investment incentives 2.57.  During the period 2008-2014, the Dominican Republic continued to promote foreign 
investment in the country, particularly in sectors such as tourism, the cinematographic and 
audiovisual industry and financial services. Other sectors that the authorities have identified as priorities for investment are: telecommunications, energy, manufactures (textiles and footwear), 
agriculture, agribusiness, infrastructure and mining.
75 In addition, according to the Constitution 
of 2010 (Article 221), special treatment may be given to investments located in less developed zones or in activities of national intere st, particularly in the border provinces. 
2.58.  The Dominican Republic continues to offer incentives, mainly in the tax domain, to national 
and foreign investors with a view to promoting manufacturing activities in the country 
(Sections 3.2.4 and 3.3.1), and in the energy (Secti on 4.3.2) and tourism (Section 4.5.4) sectors. 
During the review period, the existing benefits did not undergo significant change, except for the 
elimination of the special free zone category for new applications (Section 3.2.4.1) and the 
reduction of certain tax benefits in the energy sector (Section 4.3.2).
76 Nonetheless, three new 
laws were implemented to promote activities and investment in the tourism, cinematographic and 
financial sectors. 
2.59.  In the financial sphere, in 2008 the Do minican Republic established the regulatory 
framework for creating international financial zones (ZFIs) in certain areas of the country, through Law No. 480-08 (Section 4.5.1.1.3).
77 In 2014, that law was amended by 
Law No. 312-1478 to strengthen mechanisms for the prevention of money laundering and other 
financial crimes; but as of January 2015 the amendment was not yet in a position to be implemented.
79 Operators installed in the ZFIs would be authorized to provide financial services 
and other related activities only to customers residing abroad.80 To be able to operate under the 
ZFI system, operators need a permit and can benefit, along with their users, from tax exemptions over a 30-year period from the approval of the corresponding ZFI. These exemptions apply to, 
inter alia , taxes on income and capital gains, profits, dividends, the creation of companies, 
and telecommunications.
81 Transactions undertaken within the ZFIs will be deemed undertaken 
outside the Dominican Republic and will therefore not be subject to the taxes and customs duties provided for under Dominican legislation. 
2.60.  With the aim of developing the cinematographic industry, Law No. 108-10 was passed in 
2010, and was amended in the same year; its implementing Regulations were issued in 2011.
82 
This law grants tax incentives to persons who, for example, invest in the production of films, 
                                               
73 Article 5 of Law No. 67-13 of 24 April 2013, amending Article 237 of Law No. 491-06. 
74 This type of provision is also cont ained in Article 10 of the Constitution. 
75 Online information from the CEI-RD. Viewed at: http://www.cei-rd.gov.do/ceird/VUI.aspx . 
76 Law No. 253-12 of 9 November 2012, amending Law No. 57-07 of 7 May 2007. 
77 Law No. 480-08 of 11 December 2008. 
78 Law No. 312-14 of 8 August 2014. 
79 Information provided by the authorities. 
80 Article 2 of Law No. 480-08. 
81 Ibid., Articles 44 and 45. 
82 Law No. 108-10 of 29 July 2010, amendments thereto and its implementing Regulations, issued on 
13 June 2011 through Decree No. 370-11. The law was amended by Laws No. 257-10 of 18 November 2010, and No. 82-13 of 27 June 2013. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 44 - 
 
  as well as to the distributors and exhibitors of these films, for the construction and establishment 
in the country of new cinema theatres and film or recording studios.83 
2.61.  The period 2008-2014 also saw the enactment of Law No. 195-13, amending 
Law No. 158-01 on the promotion of tourism in less developed regions or regions considered to 
have tourism potential (see Section 4.5.4).84 The new law extended application of the benefits to 
the whole of Dominican territory, and ceased to apply solely to less developed regions and areas designated as tourism hubs.
85 Law No. 195-13 also modified the tax exemption period, 
which was increased from 10 to 15 years as from the conclusion of the installation works.86 
This provision applies to already existing beneficiaries. 
2.62.  With a view to making it easier for inve stors to set up business in the Dominican Republic, 
the Investment Single Window (VUI) was created87 in November 2012 in order to bring together in 
a single place all procedures associated with appr oving an investment project, and cutting the time 
needed to complete the relevant formalities from two years to four months.88 The VUI entered into 
force in January 2013, and is mainly targeted on  sectors identified as priorities (see above). 
As of January 2015, the VUI had not yet put any of its services online.89 
 
                                               
83 Articles 34, 35 and 37 of Law No. 108-10, amended through Laws No. 257-10 and No. 82-13. 
84 Law No. 195-13 of 20 December 2013, amending Law No. 158-01 of 9 October 2001. 
85 Ibid., Article 3. 
86 Ibid., Article 9. 
87 Decree No. 626-12 of 10 November 2012. The VUI can be viewed at: http://vuird.gob.do . 
88 National Public Sector Mult iannual Plan 2013-2016. Viewed at: http://economia.gob.do/mepyd/ 
publicacion/plan-nacional-plurianual-del-sector-publico-2013-2016 . According to the authorities, processing 
times had already been reduced to six months for some procedures. 
89 This phase is accompanied by a digital monitoring system which tracks the processes and permits 
requested. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 45 - 
 
  3  TRADE POLICIES AND PRACTICES, BY MEASURE 
3.1  Measures directly affecting imports 3.1.1  Customs procedures and requirements 3.1.  The Dominican Republic has taken a number of measures to update and streamline its 
customs procedures since the previous review in 2008, thereby lessening the time and cost of 
trade transactions. The measures include generalized use of the single customs declaration (DUA), implementation of the Integrated Customs Manage ment System (SIGA) at the national level for 
completion of customs declarations electronically, reduction of the time needed for customs 
clearance, and introduction of the author ized economic operator (AEO) programme.
1 With the 
exception of these measures, there have been no other major changes to the customs regime. 
3.2.  The Dominican Republic's customs regime is principally governed by Law No. 3489 of 1953 
(or General Customs Law) and amendments thereto2, and by Law No. 226-06 of 20063, which 
gives the Directorate-General of Customs (DGA) its own legal status. The latter Law also contains the latest amendments made so far to Law No. 3489. Other relevant laws are Law No. 8-90 on 
free zones and Law No. 11-92 on the Tax Code (Table 3.1). 
Table 3.1 Principal laws relating to the Dominican Republic's customs regime at 
January 2015 
Law Legal framework Date of enactment  Latest amendment 
Customs Law  Law No. 3489 14 February 1953 19 June 2006  
Law giving the Directorate-General of 
Customs its own legal status, operational, 
financial, administrative and technical 
autonomy and it s own assets  Law No. 226-06 19 June 2006 20 November 2006 
Tariff Reform Law, amending 
Law No. 14-93 on the customs tariff  Law No. 146-00 27 December 2000  30 July 2013 
Law on Tax Adjustment, amending 
Law No. 147-00 (ban on importing vehicles 
over five years old)  Law No. 4-07 8 January 2007 None 
Law on the Tax Code Law No. 11-92 16 May 1992 9 November 2012 
Law on Export Revival and Promotion Law No. 84-99  6 August 1999 None 
Free Zones Law Law No. 8-90  15 January 1990 9 November 2012 
Regulations on Customs Valuation in 
conformity with the GATT 1994 Customs 
Valuation Agreement  Decree No. 36-11 20 January 2011  None 
Regulations implementing the Free Zones 
Law Decree No. 366-97 29 August 1997 None 
Law on Industrial Competitiveness and 
Innovation Law No. 392-07 4 December 2007 5 December 2014 
Implementation of the Single Window for 
Foreign Trade  Decree No. 470-14 12 December 2014 None 
Source:  WTO Secretariat. 
3.3.  The DGA remains the authority responsible for monitoring compliance with customs 
legislation and for collecting tariffs and other duties on trade. It has 12 types of customs procedure 
                                               
1 Several of these changes were initiated during the period 2002-2007, but only implemented over the 
period 2008-2014. 
2 Law No. 3489 or General Customs Law was enacted on 14 February 1953 and has since been 
amended 13 times. 
3 Under this Law, since 2006 the Directorate-Gene ral of Customs (DGA) has been operating with 
operational and financial autonomy and its own administration. It is, however, subject to oversight by the Ministry of Finance (Article 1 of Law No. 226-06). WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 46 - 
 
  classified under five categories: definitive, temporary, transit, customs warehousing, and special 
(Table A3.1).4 
3.4.  The import requirements are essentially th e same as those at the time of the previous 
review.5 There have only been two important changes.  Firstly, generalized use of the DUA. This 
document was introduced in 2007 and in 2011 entirely replaced the previous declaration forms. 
Secondly, in April 2014, the requirement that a packing list6 had to be attached to the customs 
declaration was abolished.7 
3.5.  All importers and exporters, whether natura l or legal persons, must be registered in the 
National Taxpayers Register (RNC) in order to en gage in trade. In addition, legal persons must 
also be listed in the Business Register and natural persons must be in possession of an identity 
card. With the exception of these requirements , importers are not subject to any specific 
mandatory registration.8 For imports of a value exceeding US2,000, importers must forward9: 
(a) the DUA; (b) the commercial invoice10; (c) the declaration of customs value (DVA)11; the 
shipping documents12; (e) the certificate of origin if a preferential regime is to be applied; 
and (f) the import licence, no-objection permit or sanitary certificate, as applicable (Sections 3.1.6 
and 3.1.9). 
3.6.  In the Dominican Republic, it is not necessary  to use the services of a customs agent in order 
to carry out trade transactions. The authorities ha ve indicated, however, that 63.3% of customs 
declarations are made through a customs agent and that in 2013 the average time taken for clearance was three days. Moreover, since 2007, all imports which take more than 24 hours
13 to 
clear are not subject to payment of the custom s service fee, provided that the users have 
complied with the declaration requirements an d that the goods are not being imported by 
importers classified by the DGA as high risk.14 In addition to this measure, in 2008 the Regulations 
governing the special customs regime for the manufacturing industry (Decree No. 556-08) were 
enacted; these provide for clearance within a ma ximum of 24 hours (following submission of the 
declaration) for capital goods and raw materials used in production processes in industries which meet the requirements laid down in the Law on Industrial Competitiveness and Innovation 
(Law No. 392-07).
15 The authorities have indicated in this connection that this regime is not being 
applied because, in practice, it is considered that all imports, without any priority, have to be cleared within a maximum of 24 hours. 
3.7.  Since April 2012, it has only been possible to submit the DUA and other import documents by 
Internet through the SIGA.
16 This platform has been operating since 2009 and has been introduced 
into all the Dominican Republic's customs offices. The objective is to computerize import and export transactions and to lessen the cost and time required to clear goods. Although it was 
implemented in 2009, the regulatory framework fo r SIGA's operations and use of electronic 
documents was not enacted until 2011.
17 Use of the SIGA platform and obtaining a user number or 
                                               
4 The provisional data for 2014 provided by the Domi nican authorities indicate that the majority of 
imports entered the Dominican Republic  as definitive imports (78.2% of total imports), followed by imports 
under the (industrial) free-zone regime(20%). As rega rds exports, some 56.8% of  the total left under the 
(industrial) free-zone regime, followed by definitive exports (or for consumption) (38.1%). 
5 Article 51 of the General Customs Law and amendments thereto. 
6 The purpose of this document was to provid e a detailed list of the package's contents. 
7 Circular No. 4.098 issued on 8 April 2014 by the Ministry of Finance. 
8 Articles 1 and 3 of General Rule No. 05-2009, issu ed by the Directorate-Gene ral of Internal Revenue 
on 31 March 2009. 
9 Article 5 of the Customs Valuation Regulations, enacted on 20 January 2011 by Decree No. 36-11. 
10 The original copy of the commercial invoice must be submitted, together with a translation into 
Spanish (Article 9(b) of Decree No. 36-11 of 20 January 2011). 
11 Rule No. 01/2001 on application of the customs value declaration form, issued on 29 June 2001. 
12 I.e. the bill of lading, air waybill or equivalent document. 
13 Up to 2006, this applied if clearance took more than 48 hours. 
14 Article 14 of Law No. 226-06. 
15 Article 1 of Decree No. 556-08 determining the Regulations governing the special customs regime for 
the manufacturing industry, enacted on 15 September 2008. 
16 Law No. 126-02 of 14 August 2002 on e-commerce, di gital documents and signatures and Article 2 of 
General Rule No. 01-12, issued by the DGA on 21 March 2012 and approved on 30 March 2012. 
17 Resolution No. 025-11 issued by the Dominican Telecommunications Institute on 31 March 2011 
approving the rules for applying the Law on E-Commerce, Digital Documents and Signatures No. 126-02 to customs procedures. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 47 - 
 
  token (digital signature) cost RD$3,600 (around US$83).18 The authorities have indicated that the 
SIGA will also include a single window for foreign trade (VUCE)19, which it is planned to introduce 
gradually. A VUCE pilot programme was launched in November 2014 in Haina Oriental port.20 
It should be noted that the idea of the VUCE is  not a new one for the Dominican Republic. In 1998, 
the single window for exports (SIVUCEX) syst em was created and then implemented in 200521, 
but it ceased operating in 2012.22 The new VUCE will offer services for import, export and 
transit procedures. 
3.8.  In 2012, the Dominican Republic adopted the AEO category, under which economic operators 
which meet certain criteria may take advantage of streamlined customs procedures and controls.23 
Joining the AEO programme is voluntary and open to any Dominican or foreign natural or legal person lawfully established in the Dominican Republic belonging to the logistics chain for trade.
24 
AEO certification is free of charge. The authorities have indicated that, by December 2014, 
11 companies had been certified as AEOs. 
3.9.  The Dominican Republic acceded to the International Convention on the Simplification and 
Harmonization of Customs Procedures (revised Kyoto Convention) on 19 April 2012.25 
3.1.2  Customs valuation 3.10.  Since 2001, the Dominican Republic has applied a customs valuation system based on the 
WTO's Customs Valuation Agreement, which is described in the Regulations on Customs 
Valuation.
26 These Regulations were replaced by new ones in January 2011.27 The new Regulations 
specifically reiterate the valuation methods established in the WTO Agreement28 and explain in 
more detail some of the customs valuation procedures described in the Agreement, for example, 
cases where the DGA may reject the transaction value declared by the importer (Article 7) and 
procedures when it is suspected that the relati onship between the importer and the supplier may 
have affected the value declared (Article 10). The Decision of the Committee on Customs Valuation 
concerning cases where the customs administration has reason to doubt the accuracy or 
exactitude of the value declared has also been incorporated (Article 21) and cases where the DGA may consider that there are grounds for doubting the accuracy of the value declared or the 
documents presented (Article 20) are specified. The purpose of these changes is to make customs 
valuation procedures more predictable. 
3.11.  According to the Dominican authorities, the transaction value is used to determine customs 
value in around 87% of import transactions. The authorities have indicated that the determination 
is, nonetheless, provisional, and a period of up to two years is allowed in which to verify the value. 
3.12.  The Dominican Republic does not apply minimum values. The authorities have stated, 
however, that international reference price lists may be used for any type of goods in order to 
prevent under-invoicing when a risk assessment so determines. 
3.13.  The authorities have also indicated that th e Dominican Republic issues prior decisions for all 
imports, irrespective of their origin or source, on matters regarding tariff classification or 
application of customs valuation criteria, among other issues. 
                                               
18 Online information from the DGA. Viewed at: https://www.aduanas.gob.d o/Descargas/tokens.html . 
19 Decree No. 470-12 of 12 December 2014. 
20 Decree No. 470-14 of 12 December 2014. 
21 The SIVUCEX, which only covered export procedures, was created by Decree No. 248-98 and was 
administered by the Export and Investment Promot ion Center (CEI-RD) (Article 8 of Law No. 98-03). 
22 WTO document WT/TPR/S/207/Rev.1 of 3 March 2009. 
23 Articles 15-18 of Decree No. 144-12 of 22 March 2012. 
24 Article 3 of Decree No. 144-12. 
25 Resolution No. 119-12 of 19 April 2012. 
26 Decree No. 667-01 of 25 June 2001. 
27 These Regulations were issued and came into force by means of Decree No. 36-11 of 
20 January 2011. 
28 The Regulations on Customs Valuation provide that the customs value of imported goods is the 
transaction value and, if this cannot be determined, the following methods shall be used in sequence: the 
transaction value of identical goods, the transactio n value of similar goods, the deductive method, the 
computed value method and the fall-back method. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 48 - 
 
  3.1.3  Rules of origin 
3.14.  The Dominican Republic only applies preferen tial rules of origin. These are specified in each 
of the trade agreements it has signed (Section 2.3.2) and determine the criteria for classifying 
a product as originating and thus able to benefit from preferential tariff treatment. 
As of January 2015, only the rules of origin in connection with the agreement with Panama still 
had to be notified.29 
3.15.  In general, in the trade agreements signed  by the Dominican Republic, a good is deemed to 
be originating if: (a) it has been wholly obtained in the territory of one of the parties; (b) it has 
been wholly produced in the territory of one or more of the parties exclusively using originating materials; or (c) it has been wholly produced in the territory of the parties using materials that are not originating but which meet specific rules of origin. The specific rules of origin are mainly based 
on a change in tariff classification and/or region al content value. In a few instances, production 
requirements are also used. 
3.16.  All the agreements signed by the Dominican Republic contain a de minimis provision which 
allows a degree of flexibility in the use of non-originating inputs. According to this clause, a good is 
considered to be originating if the value of all the non-originating inputs used to produce it but which do not comply with the relevant rules of origin does not exceed a certain percentage of the 
product's value. This percentage varies accordin g to the agreement; it is 15% in the agreement 
between CARIFORUM and the European Union (EU), 10% in the agreements with Panama and the 
United States and Central America (CAFTA-DR) and 7% in the agreements with CARICOM and Central America. 
3.17.  The CAFTA-DR and the agreement between CARIFORUM and the EU also include a provision 
on diagonal cumulation of origin, according to which products manufactured in the parties' territories may include materials from certain countries not party to the agreement provided that 
the inputs used have undergone transformation that goes beyond that defined as minimum. 
As of January 2015, the cumulation system had not yet been implemented for either of the 
two agreements. The agreement between CARIFO RUM and the EU provides that cumulation 
of origin applies to ACP countries and certain overseas territories and, at the request of the 
CARIFORUM parties, to other countries in the region such as Colombia, Costa Rica and Mexico, inter alia (Section 2.3.2.1). This cumulation system  usually requires the signature of an 
administrative cooperation agreement between the Dominican Republic and non-parties in order to 
apply. By January 2015, no such agreement had been concluded.
30 
3.18.  Under the CAFTA-DR, the cumulation system  encompasses Canada and Mexico, but only for 
clothing (goods of HS Chapter 62).31 As at January 2015, the system was not in effect for the 
Dominican Republic, but did apply between Mexico and the Central American countries, 
i.e. Costa Rica (since 2009), Nicaragua, Guatemala, Honduras and El Salvador (since 2008).32 
3.19.  The treatment given to goods produced in the Dominican Republic's free zones in respect of 
their origin also varies from agreement to ag reement. Under the CAFTA-DR and the agreement 
between CARIFORUM and the EU, goods produced in free zones are considered to be originating and can benefit from preferential tariff treatment. Under the CAFTA-DR, however, 
                                               
29 Notification of the rules of origin in connecti on with the other trade agreements signed by the 
Dominican Republic can be found in WTO documents G/RO/N/39 of 22 April 2003, G/RO/N/40 of 29 April 2003, and G/RO/N/88 of 18 January 2013. As regards the agreement between CARIFORUM and the European Union, this had already been notified to the Committee on Re gional Trade Agreements so the rules of origin were 
considered to have been notified as well to the Committee on Rules of Origin. In fact, in November 2012, the latter Committee agreed that notification of preferenti al rules of origin made to the Committee on Regional 
Trade Agreements or the Committee on Trade and Development could suffice to discharge notification obligations under the Agreement on Rules of Origin (WTO document G/RO/M/59 of 10 December 2012). The Committee on Rules of Origin therefore agreed that no tifications which had initially been received by the 
Committee on Regional Trade Agreements or the Committee on Trade and Development should also be circulated by the Secretariat to the Committee on Rules of Origin. 
30 The cumulation system for ACP countries and overse as territories can also apply when the rules of 
origin are identical. 
31 Annex 4.1 (Appendix 4.1-B) to the Free Trade Agreement between the Dominican Republic, 
Central America and the United States. 
32 WTO document WT/TPR/S/279/Rev.1 of 10 July 2013. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 49 - 
 
  the Dominican Republic and the Central American countries have the option of not giving these 
products preferential treatment among themselves.33 In the case of the agreement with Panama, 
a list of 29 articles34 produced in free zones may receive preferential treatment provided that 
import is definitive and the parties so agree.35 These are mostly medicines and surgical equipment. 
Under the agreements with CARICOM and Central America, products from free zones are not 
considered to be originating and the MFN rate therefore applies to them.36 
3.20.  As far as the CAFTA-DR is concerned, in February 2012 the common guidelines on the 
interpretation, application and administration of rules of origin entered into force.37 
3.1.4  Tariffs 3.21.  The Dominican Republic's tariff is contained in Law No. 146-00 of 2000 and amendments 
thereto.
38 The latest amendment to the tariff was in 2013 and was the only one during the period 
under review, but it did not involve any major change. The tariff is based on the Harmonized 
Commodity Description and Coding System (HS 2012)39 and as of January 2014 comprised 
7,048 eight-digit lines. This is more than in 2007 (6,752 lines), owing to the opening of new 
Dominican tariff lines and their incorporation in the HS 2012. 
3.22.  The Dominican Republic only applies ad valorem tariffs. During the review period, 
the average MFN tariff rose slightly  from 7.5% to 7.8% (Table 3.2). This can be explained mainly 
by the transposition of the nomenclature and by a higher tariff for a limited number of lines.40 
Table 3.2 Summary of the MFN tariff, 2007 and 2014 
 2007 
(HS 2007) 2014 
(HS 2012) 
Total number of lines  6,752 7,048 
Arithmetic average 7.5 7.8 
Non-ad valorem  tariffs (% of all tariff lines) 0.0 0.0 
Tariff quotas (% of all tariff lines) 0.4 0.4 
Duty-free tariff lines (% of all tariff lines) 54.5 53.6 
International tariff peaks (>15%) (% of all tariff lines) 28.0 29.5 
Bound tariff lines (% of all tariff lines) 100.0 100.0 
Source:  WTO Secretariat estimates based on data provided by the authorities. 
3.23.  In 2014, the average MFN tariff for agricult ural products (WTO definition) was 14.2%, while 
for manufactures it was 6%. 
                                               
33 Annex 3.3.6 to the Free Trade Agreement between the Dominican Republic, Central America and the 
United States. 
34 Information provided by the authorities. 
35 Article 6 of the trade agreement between Panama and the Dominican Republic. 
36 Article 4 of the Protocol to the Free Trade Agreement between Central America and the 
Dominican Republic signed on 16 April 1998; and Article 2 of the Protocol on implementation of the Agreement to establish a free trade area between the Dominican Republic and CARICOM. 
37 "Decision of the Free Trade Commission regard ing common guidelines for the interpretation, 
application and administration of Chapter Four", signed on 27 October 2011 and in force in the Dominican Republic pursuant to Circular No. 1552 issued on 3 February 2012. 
38 Law No. 146-00 of 27 December 2000. The latest amendment was on 30 July 2013 in Law No. 103-13 
(Article 3). There was no other amendment over the period 2008-2014. The most important amendment to the Dominican Republic's tariff during the period 2003 to 2014 was introduced by Law No. 557-05 of 2005 (Article 24). According to the authorities, this Law liberalizes some 2,911 tariff lines for raw materials and machinery. 
39 The current tariff incorporates the 5th Recommended Amendment to the Harmonized System, which 
was approved by the World Customs Organization on 26 June 2009 and came into force in the 
Dominican Republic on 1 January 2012. 
40 The Secretariat estimated that the tariff increased for 27 lines, taking into account only the number of 
lines that are comparable in 2007 and 2012. The number of comparable lines was 5,905. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 50 - 
 
  3.1.4.1  Tariff structure 
3.24.  There have been no major changes to the Dominican Republic's tariff structure since the 
previous review. All the applied tariffs remain ad valorem  and their levels and distribution in 
general are still the same (Chart 3.1). The Dominican tariff has 12 rates, 0%, 3%, 8%, 14%, 
20%, 25%, 40%, 56%, 85%, 89%, 97% and 99%. Of these, the highest rates (56% 85%, 89%, 
97% and 99%) are tariffs applied to products subject to quotas (out-of-quota tariff) and only account for 23 lines or 0.3% of all eight-digit lines. 
3.25.  In 2014, duty-free lines represented just ov er 50% of total tariff lines. Most of the other 
lines attracted a 20% rate (some 30% of total lines) or between 3% and 14% (17% of all tariff lines). There were 74 lines subject to a tariff of  25% or more, comprising agricultural products, 
mostly meat and sausages, as well as products subject to MFN quotas (such as beans, garlic, rice 
and sugar) (Section 3.1.4.5). 
Chart 3.1 Distribution of MFN tariffs, 2007 and 2014 
(54.5%)
(4.7%)(6.1%)(6.7%)(27.1%)
(0.2%) (0.5%) (0.3%)(53.6%)
(4.1%)(6.1%)(6.7%)(28.4%)
(0.2%) (0.5%) (0.3%)
05001,0001,5002,0002,5003,0003,5004,000
Duty free 3.0 8.0 14.0 20.0 25.0 40.0 >40Number of lines 2007 (% of total)
Number of lines 2014 (% of total)Number of linesa
 
a The total number of lines was 6,752 in 2007 (HS 2007) and 7,048 in 2014 (HS 2012). 
Source: WTO Secretariat calculations based on data provided by the authorities. 
3.1.4.2  Tariff bindings 
3.26.  The Dominican Republic has bound all its tariff lines in the WTO at rates ranging from 0% 
to 99% (Table 3.3). For around 63% of the lines the bound rate is 40% and a higher rate only 
applies to 23 lines.41 These lines are subject to tariff quotas and their bound rate ranges from 56% 
and 99%.42 As of January 2014, the tariffs applied by the Dominican Republic were lower than the 
corresponding bound rate, with the exception of 63 lines.43 For these lines, the applied tariff is 
between 3% and 20%, whereas the bound tariff is zero, a result of the Dominican Republic's 
access to the Information Technology Agreement (ITA) in 2006. 
                                               
41 The nomenclature for the bound tariff is the 2002 Harmonized System. 
42 WTO document WT/LET/293-1 of 3 February 1999. 
43 This figure is an estimate as the no menclatures cannot be aligned precisely. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 51 - 
 
  Table 3.3 Summary of the MFN tariff, 2014 
Description  MFN Tariff 
No. of 
lines Average 
(%) Range (%) Average bound 
tariff (%) 
Total 7,048 7.8 0 - 99 33.9 
HS 01-24 1,272 15.7 0 - 99 39.7 
HS 25-97 5,776 6.0 0 - 20 32.8 
By WTO category     
Agricultural products 1,110 14.2 0 - 99 39.2 
-  Animals and animal products 147 21.3 0 - 99 41.1 
-  Dairy produce 31 25.9 0 - 56 43.6 
-  Fruit, vegetables and garden produce 334 18.1 0 - 99 40.1 
-  Coffee and tea 28 17.8 0 - 20 40.0 
-  Cereals and cereal preparations 122 13.6 0 - 99 40.4 
-  Oilseeds, fats and oils and their products 105 4.4 0 - 40 37.4 
-  Sugar and confectionery 32 24.2 0 - 85 38.7 
-  Beverages, alcohol and tobacco 91 17.6 8 - 20 39.4 
-  Cotton 5 0.0 0 - 0 35.0 
-  Other agricultural products n.e.s. 215 4.0 0 - 20 36.3 
Non-agricultural products (including 
petroleum) 5,938 6.5 0 - 20 33.0 
- Non-agricultural products (excluding petroleum)  5,916 6.5 0 - 20 33.0 
- - Fish and fish products 246 17.1 0 - 20 39.7 
- - Metals and minerals 1,096 6.2 0 - 20 35.5 
- - Chemicals and phot ographic products  1,230 3.1 0 - 20 22.2 
- -Wood, wood pulp, paper and furniture 353 6.4 0 - 20 37.3 
- - Textiles 650 4.7 0 - 20 38.8 
- - Clothing 238 19.8 3 - 20 40.0 
- - Leather, rubber, footwe ar and travel articles 215 9.9 0 - 20 38.6 
- - Non-electrical machinery 688 1.7 0 - 20 33.0 
- - Electrical machinery 372 6.2 0 - 20 27.6 
- - Transport equipment 241 8.7 0 - 20 39.9 
- - Non-agricultural products n.e.s. 587 10.5 0 - 20 34.1 
- Petroleum 22 6.6 0 - 14 40.0 
By stage of processing     
First stage of processing 919 9.7 0 - 99 37.5 
Semi-finished products 2,123 2.7 0 - 85 29.9 
Finished products 4,006 10.0 0 - 99 35.3 
a  The tariff bindings are given in the HS 2002 classi fication (6,831 lines) and the rates applied in the 
HS 2012 (7,048 lines); therefore, there are differences in the number of lines included in this table. 
Of the 7,048 lines of applied rates, 1,161 lines cannot be compared because of the different 
classifications. 
Source:  WTO Secretariat estimates based on data provided by the authorities. 
3.1.4.3  Tariff concessions 
3.27.  The Dominican Republic's imports under the free-zone regime are exempt from payment of 
tariffs (Section 3.2.4), as are goods entering th e country temporarily under one of the existing 
customs procedures (Table A3.1). 
3.28.  The goods listed in Law No. 146-00 of 2000 are also exempt from tariffs; they include 
donations, samples and household articles belo nging to immigrants and Dominican citizens 
(Box 3.1). Insulin44, teaching materials and equipment45 and inputs, equipment and machinery 
used in agricultural production, which are subject to a zero tariff46, should be added to this list 
pursuant to other laws. 
                                               
44 Law No. 486-98 of 1 November 1998. 
45 Law No. 66-97 of 15 April 1997. 
46 Law No. 150-97 of 7 July 1997. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 52 - 
 
  Box 3.1 List of goods exempt from tariffs pursuant to Law No. 146-00 
(a) Imports by government public service organizations and institutions in cases of emergency; 
(b) imports by diplomatic missions of foreign governments; 
(c) donations by official international organizations or foreign governments; 
(d) imports of personal and household effects belonging to foreigners coming to reside 
definitively in the Dominican Republic, and of Dominican citizens returning to the country 
after having resided abroad for two consecutive years; 
(e) imports of books for personal use by Dominican citizens returning definitively after having 
studied in other countries; 
(f) reduced samples of pharmaceuticals; 
(g) samples of products entering temporarily for the purpose of fairs and exhibitions; 
(h) catalogues and sample books imported by legally established firms; 
(i) components, spare parts and materials for repair or maintenance of merchant and tourism 
vessels in Dominican ports, as well as components, spare parts and materials to be used to 
repair or maintain aircraft; 
(j) imports of raw materials, packing material , inputs, machinery and equipment and their 
spare parts for the manufacture of medicines for human or animal use when purchased by 
the pharmaceutical laboratories themselves; 
(k) imports of personal computers, together wi th parts, components, replacement parts, 
programs and other accessories; 
(l) pacemakers for treating cardiac diseases and special hearing aids for persons with hearing 
problems or defects and their accessories. 
Source:  Article 13 of Law No. 146-00 of 27 December 2000, last amended on 30 July 2013. 
3.29.  The exemption from tariffs applicable to imports of finished products in the textiles, 
leather and footwear subsectors from free zones was abolished in 2011 (Section 3.3.1).47 
3.1.4.4  Preferential tariffs 
3.30.  The Dominican Republic continued to expand  its network of preferential agreements during 
the review period. The most recent agreement was that signed with CARICOM and the EU 
on 15 October 2008, which came into force for the Dominican Republic on 1 January 2009. 
3.31.  By December 2014, the Dominican Republic wa s granting tariff preferences for imports from 
48 countries. These vary depending on the partne r and the sector. In 2014, average preferential 
tariffs ranged from 0.5% to 4.2% for free trade agreements and stood at 7.2% for the Partial 
Scope Agreement with Panama (Table 3.4). For ea ch product, the lowest rate between the MFN 
tariff and the preferential tariff was used to calculate the average rate in order to reflect the market access conditions accurately. In the CAFTA-DR, the average rate was 0.7%. The averages 
are the same for all signatories for all product categories, except for live animals and products of 
animal or plant origin, but the averages at the le vel of groups of products vary depending on the 
signatory. Tariffs on agricultural products are generally higher than those on other products. 
                                               
47 Law No. 139-11 of 24 June 2011. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 53 - 
 
  Table 3.4 Analysis of market acce ss including preferential tariffs, 2014 
 
Average 
(%) 
Lines for which 
the tariff is the 
MFN rate or 
less 
(% of all lines ) 
Duty-free lines 
(%) WTO categories 
Agricultural products Non-agricultural 
products 
(excl. petroleum) 
Average 
(%) Zero tariff 
(%) Average 
(%) Zero tariff  
(%) 
EPA 4.2 91.9 68.3 11.6 36.0 2.9 74.1 
CAFTA 0.7 99.9 82.3 2.9 61.5 0.3 86.1 
CAFTA - Costa Rica 0.7 100.0 82.3 3.0 61.4 0.3 86.1 
CAFTA - Nicaragua 0.7 100.0 82.3 3.2 61.4 0.3 86.1 
CAFTA - US 0.7 100.0 82.3 3.0 61.5 0.3 86.1 
Central America 0.5 98.7 98.3 2.9 91.2 0.0 99.7 
CARICOM 1.1 96.5 95.7 4.7 84.7 0.4 97.6 
Panama 7.2 ..a 56.6 13.7 34.5 6.1 60.5 
.. Not available. 
a The number of tariff lines excluded from these agre ements is not available for the agreement with 
Panama. The MFN rate applies to these lines, but as they cannot be identified, it is not possible to calculate the lines for which preferential tariff is the MFN rate or less. 
Note:  Where the MFN rate is lower than the preferential tariff, the MFN rate has been used to calculate the 
averages. The same procedure has been used to ca lculate the number of zero-tariff lines: if the 
MFN rate is zero but the preferential rate is not, the MFN rate has been used for the calculation. The 
basis for the calculations is the preferential tariff in the HS 2007 classification (6,793 lines), whereas the MFN tariff is in the HS 2012 (7,048 lines); therefore, the calculations include the MFN tariff in accordance with the aforementioned criteria  but only where the lines are comparable. 
Source:  WTO Secretariat estimates based on data provided by the authorities. 
3.1.4.5  Tariff quotas 
3.32.  The Dominican Republic applies WTO-type tariff quotas to imports of agricultural products, 
as well preferential-type quotas under its trade agreements, except for those with CARICOM 
and Panama. In the WTO, there are eight products subject to tariff quotas: poultry meat, powdered milk, onions, garlic, dried beans, maize,  rice and sugar. These products correspond to 
14 tariff lines, of which three are four-digit lines and the remainder six-digit (Section 4.1). 
In December 2014, under the CAFTA-DR, the Dominican Republic maintained quotas (number of tariff lines in brackets) for 20 products from the United States (48 eight-digit lines), two products from Costa Rica (eight eight-digit lines) and three from Nicaragua (six eight-digit lines).
48 
The quotas for Costa Rica and Nicaragua will be abolished in 2025, while those for the 
United States will be eliminated between 2015 and 2025 depending on the product.49 Under the 
CARICOM-EU agreement, a tariff quota applies to powdered milk (three six-digit lines), but will be 
eliminated in July 2023.50 
3.1.5  Other charges affecting imports 3.33.  In addition to tariffs, imports are subj ect to payment of: (a) the customs service fee; 
(b) the tax on the transfer of industrialized goods and services (ITBIS); and (c) the selective 
consumption tax (ISC). The ITBIS and the ISC apply to both imports and domestic goods. These taxes increased over the period 2008-2013. Moreover, in 2011, a 2.5% tax on domestic sales of products manufactured in free zones was introduced.
51 This tax was raised to 3.5% in 
                                               
48 Article 3.13 and General Notes on  the reduction timetable for the Dominican Republic in the Free 
Trade Agreement between the Dominican Republic, Central America and the United States. 
49 The authorities have indicated that the Dominican Republic negotiated quotas with Costa Rica 
(chicken breasts and powdered milk) and Nicaragua (onions, beans and chicken breasts) under the agreement with Central America, but these quotas were subsequently incorporated into the CAFTA-DR In the case of Nicaragua, quotas were originally applied for bovine meat and shrimps, but in January 2015 they were abolished in accordance with the reduction timetable. 
50 Annex III to the CARIFORUM-European Comm unity Economic Partnership Agreement. 
51 Article 11 of Law No. 139-11 of 24 June 2011 and General Rule No. 05-11 issued by the DGA on 
29 June 2011, in force since 1 July of the same year. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 54 - 
 
  November 2012.52 Many of these changes are part of a wide-ranging tax reform programme 
undertaken by the Dominican Republic to raise tax revenue and thus alleviate the fiscal deficit (Section 1.3). 
3.34.  The Dominican Republic grants tariff and other tax concessions under various incentive 
programmes. In 2015, the tax expense
53 was estimated by the Ministry of Finance to be 6.7% of 
GDP or RD$201,751.9 million; of th is amount, 47.7% corresponds to concessions related to the 
ITBIS and only 9.2% to tariff concessions (some 0.6% of GDP).54 
3.35.  In 2012, there was a 50% decrease in th e tax on vehicles running on non-conventional 
energy (for example, electric or hydrogen en gines) with the aim of promoting their use and 
lowering pollution levels.55 
3.1.5.1  Customs service fee 
3.36.  There have been no changes to the cu stoms service fees since the previous review.56 
The rates are specific and vary according to the number of units, the weight and volume of the 
goods (Table 3.5). The fees are expressed in United States dollars, but are paid in pesos at the 
official exchange rate in force at the time the customs declaration is submitted. If clearance takes 
more than 24 hours, importers are exempt fr om this fee provided that users meet the 
requirements for submitting the declaration57, except for those classified by the DGA as high risk. 
It is considered that clearance for such importers may take longer and, therefore, they remain 
liable for the customs service fee. 
Table 3.5 Customs service fees at December 2014 
Type of charge Customs service fee (US$)  
20-foot containers 75 
40 or 45-foot containers  100 
Consolidated cargo (except express 
dispatch cargo) 0.25 per kilo or fraction thereof, with a ceiling of 60 for each bill 
of lading issued by the consolidator  
Loose or bulk goods  0.50 per metric tonne, with a ceiling of 500 per bill of lading  
Motor vehicles, equipment and machinery  100 per unit  
Express dispatches 0.25 per kilo or fraction thereof,  with a ceiling of 10 for each 
waybill issued by the international express transport company  
Source:  Presidential Decree No. 627-06 of 22 December 2006. 
3.1.5.2  Tax on the transfer of indu strialized goods and services (ITBIS) 
3.37.  The ITBIS is the equivalent of value added tax in the Dominican Republic and applies to all 
manufactured goods, whether imported or produced domestically, and to most services. For imports, the ITBIS, like the ISC, is calculated on the c.i.f. value of the goods plus the amount of the tariffs and other import duties applicable, whereas for domestically produced goods it is paid 
on the transfer price.
58 In 2013, the ITBIS rose from 16% to 18% pursuant to Law No. 253-12 
(Article 23) and a reduced rate of 8% was introduced for goods that had previously been exempt.
59 Exemptions still exist, however, for a long list of food products, inputs, machinery and 
equipment. This Law states that the rate will be 18% for two years (2013 and 2014) for all 
                                               
52 Article 31 of Law No. 253-12 of 9 November 2012, amending Law No. 139-11. 
53 Tax expense is defined as the amou nt of revenue foregone as a resu lt of granting preferential tax 
treatment (not only to imports) other than the treatment prescribed in the tax legislation. 
54 Directorate-General of Internal Revenue (2014). 
55 Law No. 103-13 on incentives for the import of non-conventional energy vehicles of 16 July 2013. 
56 Customs service fees were introduced in 2006 and are regulated by: (a) Law No. 226-06 of 
19 July 2006; (b) Law No. 424-06 of 20 November 2006; and (c) Decree No. 627-06 of 22 December 2006. Law No. 226-06 (Article 14) provides for the payment of an ad valorem fee for customs services. Law 
No. 424-06 (Article 72) amends Law No. 226-06 and determ ines that this fee must be specific, and Decree 
No. 627-06 defines the rates by type of shipment. 
57 Article 14 of Law No. 226-06. 
58 Article 339 of Law No. 11-92 (or Tax Code) of 16 May 1992 and amendments thereto, last amended 
on 9 November 2012 by Law No. 253-12. 
59 Law No. 253-12 of 9 November 2012. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 55 - 
 
  products, except dairy byproducts, coffee, animal and plant fats, sugar, cocoa and chocolate, 
on which the rate is 8%.60 In 2015, the 18% rate will fall again to 16% provided that the 
tax target set in the National Development Strategy 2030 is achieved. The 8% rate will gradually rise to 16% by 2016 and thus be aligned on that for other goods. 
3.1.5.3  Selective consumption tax (ISC) 
3.38.  The ISC applies to certain luxury goods, alcoholic beverages and tobacco byproducts and is 
calculated on the c.i.f. price of the goods plus the corresponding tariffs and other import duties, 
except for the ITBIS. For imported goods similar to domestically manufactured products, 
the same tax base as that used for domestic products is used.
61 The ISC rate is 20%, except for 
some products for which the rates are 10%, 78% or 130%62 or which are subject to a mixed rate, 
i.e. an ad valorem rate and another specific rate.63 During the period under review, only the mixed 
rates increased. The products subject to mixed rates are alcoholic beverages, beer and tobacco 
byproducts. For alcoholic beverages and beer, the ad valorem ISC rose from 7.5% to 10% 
in 2013. The specific tax per litre of alcohol varies according to the type of beverage (fermented or 
distilled) and also increased for all categories in 2013.64 In 2012, the specific ISC was between 
RD$384.53 to RD$471.51 depending on the beverage, but Law No. 253-12 brought in new rates for the period 2013-2017, and these will gradually incr ease in order to converge to a single rate of 
RD$595.4 in 2017.
65 
3.39.  For cigarettes, the ad valorem ISC remained at 20% but the specific ISC increased. 
In 2013, the specific ISC rate rose from RD$13 to RD$20 for packets of 10 and RD$26 to RD$40 for packets of 20
66, and should increase to RD$25 and RD$50, respectively, in 2015. Once the 
timetable has been completed, for alcoholic beverages, beer and cigarettes the tax will be adjusted 
quarterly to the inflation rate.67 
3.40.  In the same way as alcoholic beverages and cigarettes, fuel is also subject to a mixed 
ISC rate that has not changed since the previous review. The ad valorem rate is 16%, to which is 
added a tax per gallon that is adjusted quarterly to the inflation rate. This tax is paid on the selling price fixed by the Ministry of Industry and Trade (MIC).
68 
3.1.5.4  Tax on products from free zones 
3.41.  The sale of products manufactured in free zones on the domestic market is deemed to be 
importation and, consequently, the import tariff, the ITBIS and the ISC, as applicable, must be paid. Moreover, since July 2011, products from free zones sold on the local market have 
also been subject to a tax, initially set at 2.5%, as income tax.
69 In November 2012, this was 
raised to 3.5%.70 
3.42.  In October 2012, a system for the control of the production and marketing of alcoholic 
beverages produced in free zones was introduced under which the producers must forward control 
sheets to the Directorate-General of Internal Revenue (DGII).71 
                                               
60 The rates for these products determined in Law No. 253-12 are 11% in 2014, 13% in 2015 and 16% 
from 2016 onwards. 
61 Article 367 of Law No. 11-92 (or Tax Code) and amendments thereto. 
62 The products subject to an ad valorem rate other than 20% (rate ap plicable in brackets) are: 
televisions, screens and dish antennas for broadcasting  and mobile telephones (1 0%), revolvers and pistols 
(78%) and pipe tobacco (130%). 
63 Article 375 of Law No. 11-92 (or Tax Code) and amendments thereto. 
64 In this connection, the authorities indicated that these increases were for the purposes of 
harmonization. 
65 Article 22 of Law No. 253-12. Pursuant to this Law, in 2013 the rate per litre of alcohol was RD$418 
or RD$489.6 depending on the type of beverage, and RD$457.3 or RD$514.1 in 2014. 
66 Article 22 of Law No. 253-12. 
67 Idem. 
68 Law No. 112-00 of 29 November 2000 and amendments thereto, Article 23 of Law No. 557-05 of 
13 December 2005 and Articles 30 and 31 of Law No. 495-06 of 28 December 2006. 
69 Article 11 of Law No. 139-11. 
70 Article 31 of Law No. 253-12. 
71 General Rule No. 03-12 of 15 October 2012, issued by the DGII. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 56 - 
 
  3.1.6  Import prohibitions, restrictions and licensing 
3.43.  The Dominican Republic keeps a list of prohibitions and goods subject to import permits for 
reasons of public health and safety, animal and plant health and environmental protection. Over the period 2008-2013, there was a slight increase in the number of banned products and 
there were also legal changes relating to the products subject to permits. During this period, 
the Dominican Republic notified the WTO of the proc edures for permits for the vast majority of the 
products concerned. The Dominican Republic also  requires permits for imports of agricultural 
products subject to WTO quotas and those in its trade agreements. 
3.1.6.1  Prohibitions 3.44.  There were few changes to the list of banned products during the period 2008-2013. 
In addition to those products already prohibited in 2007 (used clothing, vehicles
72 and household 
electrical appliances, firearms and their ammunition), the import of right-hand-drive vehicles was 
prohibited in 2008 for reasons of public safety (T able 3.6). In 2009 and 2011, the import of certain 
pesticides and insecticides was also banned.73 In 2012, the chemical Paraquat and its byproducts 
ceased to be prohibited and became products for restricted use, in other words, their import 
requires an authorization.74 In 2013, the import of cocoa plants, fruits and seeds, as well as 
musaceae (banana plants) was also banned.75 
Table 3.6 Prohibited products, at December 2014 
Prohibited products Legal instrument Date of enactment 
Firearms, their parts and ammunition Decree No. 309-06 24 July 2006 
Wild birds  Resolution No. 119-96a 5 December 1996 
Used household electrical appliances Law No. 4-07 
Law No. 147-00 8 January 2007 
27 December 2000 
Pesticides and insecticides Resolution No. 61-2011a 
Resolution No. 50-2009a 
Decree No. 217-91 8 December 2011 
11 August 2009 
17 September 1991 
Cocoa plants, fruits, seed s and any parts thereof; 
musaceae (banana plants) and any parts thereof Resolution No. 83-2013a  9 December 2013 
Used clothing  Law No. 458 3 January 1973 
Right-hand-drive vehicles Rule No. 02-08 
Law No. 241 6 October 2008 
28 December 1967 
Emergency vehicles (accidents) Decree No. 671 27 August 2002 
Light vehicles over five years old  Law No. 4-07 
 8 January 2007 
 
Heavy vehicles over 15 years old Law No. 4-07 
Law No. 147-00 8 January 2007 
27 December 2000 
a Resolutions issued by the Ministry of Agriculture. 
Source:  Information provided by the authorities. 
3.45.  Law No. 458 also prohibits the import of used clothing of unknown origin, even though the 
authorities have indicated that export of used cl othing by companies benefiting from the incentive 
laws is allowed, but not its import into national territory for sale. 
3.1.6.2  Import permits and licences 
3.46.  The Dominican Republic requires an import permit for all agricultural products and for 
animals, seeds, vaccines, chemicals, medicines,  cosmetics, telecommunications equipment, arms 
                                               
72 In 2014, the scope of the ban on used automobiles was modified to apply only to vehicles over 
seven years old rather than five. The law embodying this  change was approved by the Senate and Chamber of 
Deputies in April 2014, but was not enacted. 
73 Resolution No. 50-2009 and Resolution No. 61-2011 issued by the Ministry of Agriculture on 
11 August 2009 and 8 December 2011, respectively. 
74 Resolution No. 8-2012 issued by the Ministry of Agriculture on 25 May 2012. 
75 Resolution No. 83-2013 issued by the Ministry of Agriculture on 9 December 2013. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 57 - 
 
  and ammunition (Table 3.7).76 An import licence is also required for all products under 
WTO quotas. 
Table 3.7 Products subject to permits, at August 2014 
Product Legal instrument Date of enactment 
Arms and ammunitiona Law No. 36 
Law No. 262 18 October 1965 
17 April 1943 
Bulbs and seeds, fruit, spices, live plants, fertilizers 
and pesticides, meat products, fish and 
crustaceans, live animals,  products and byproducts 
of animal originb Decree No. 238-13 
Resolution No. 52-2013 
Decree No. 223-08 
Decree No. 52-08 
Law No. 307-04 
Law No. 311 
Law No. 8-65 
Law No. 4990 
Law No. 4030 15 August 2013 
25 July 2013 
30 May 2008 
4 February 2008 
3 December 2004 
24 May 1968 
8 September 1965 
29 August 1958 
13 January 1955 
Certain medicines for human and animal use, 
and chemicalsb Law No. 4030 13 January 1955 
Cattle and fresh meatc Decree No. 329-11 
Law No. 4030 17 May 2011 
13 January 1955 
Ozone-depleting gases and substancesd Resolution No. 10-2012 
Resolution No. 27-2012 Resolution No. 02-2010 Decree No. 565-11 Resolution No. 12-2005 Decree No. 356-99 Law No. 64-00 Law No. 311 25 March 2012 
23 March 2012 15 January 2010 29 September 2011 6 September 2005 12 August 1999 18 August 2000 24 May 1968 
Import of telecommunications equipmente Law No. 153-98 28 May 1998 
Medicines, sanitary and personal hygiene products, pharmaceutical products of natural origin sold for therapeutic purposes and household cleaning products
f Decree No. 246-06 
Law No. 42-01 Decree No. 344-99 Law No. 50-88 9 June 2006 
8 March 2001 30 April 1999 30 May 1988 
Agricultural productsb Resolution No. 024/2006  22 November 2006 
Seedsb Regulation No. 271-78 
Law No. 231-71 Law No. 4990 3 October 1978 
22 November 1971 29 August 1958 
Substances for the prot ection of plants and 
veterinary productsb Decree No. 354-10 
Regulation No. 224-10 
Decree No. 521-06 
Law No. 311 
Law No. 278-66 
Law No. 4990 
Law No. 4030 28 June 2010 
27 April 2010 
17 October 2006 
24 May 1968 
29 June 1966 
29 August 1958 
13 January 1955 
a Permits granted by the Mini stry of the Armed Forces. 
b Permits granted by the Mi nistry of Agriculture. 
c  Permits granted by the Minist ries of Agriculture and Public  Health and Social Welfare. 
d Permits granted by the Ministry of the Environment and Natural Resources. 
e Permits granted by the Dominican Telecommunications Institute. f Permits granted by the Ministry of Public Health and Social Welfare. 
Source:  Information provided by the Dominican authorities. 
3.47.  During the period under review, the Dominican Republic notified the procedures for 
obtaining licences for arms and ammunition, pharmaceutical and cosmetic products and 
telecommunications equipment, as well as for agricultural products in general. The procedures for the other products still have to be notified.
77 
                                               
76 Arms and ammunition are generally prohibited, but may be imported with an authorization. 
77 The notifications refer to licensing procedures an d were made pursuant to Article 7.3 of the WTO 
Agreement on Import Licensing Procedures. They ar e WTO documents G/LIC/N/3/DOM/3 of 27 April 2009; 
G/LIC/N/3/DOM/4 of 29 October 2010; G/LIC/N/3/DOM/5 of 6 April 2011; G/LIC/N/3/DOM/6 of 6 March 2012; and G/LIC/N/3/DOM/7 of 15 August 2013. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 58 - 
 
  3.48.  In order to obtain an import permit for animals or agricultural products, an importer must 
first obtain a no-objection permit from the Ministry of Agriculture, which is equivalent to a phytosanitary or animal health certificate, as applicable (Section 3.1.9).
78 Once this has been 
obtained, the importer must forward it, together with the application for an import permit, to the 
Ministry's Department of Agricultural and Livestock Promotion (DPAG), which then issues the 
import permit. According to the authorities, the permit is issued automatically. 
3.49.  An import permit for sugar, tobacco, plan ts and flowers requires the submission of an 
a d d i t i o n a l  p e r m i t  i s s u e d  b y  I N A Z U C A R ,  I N T A B A C O  o r  t h e  M i n i s t r y  o f  t h e  E n v i r o n m e n t ,  
respectively. Import permits for seeds for sowing, seeds and maize for animal consumption and products of plant origin for animal consumption (such as canary seed, sunflowers or lucerne) require two no-objection permits: the animal health no-objection permit or the no-objection permit 
from the Seeds Department in the Ministry of Agriculture for seeds for sowing, in addition to the 
phytosanitary no-objection permit.
79 
3.50.  For fertilizers and their raw materials, obtaining an import permit from the DPAG requires 
the submission of a no-objection permit i ssued by the Ministry of the Environment.80 For vaccines, 
an import permit from the Directorate-General of Livestock in the Ministry of Agriculture is required. The importer must be registered with the Directorate in order to obtain this permit.
81 
3.51.  Between 2010 and 2012, the Dominican Repu blic published the list of requirements for 
obtaining import permits for chemicals, medicines and cosmetics.82 I n  o r d e r  t o  o b t a i n  s u c h  a  
permit, sanitary registration and/or the relevant phytosanitary no-objection certificate or permit is usually required. 
3.1.7  Anti-dumping, counterva iling and safeguard measures 
3.1.7.1  Regulatory framework 3.52.  The use and application of anti-dumping, countervailing and safeguard measures are 
governed by Law No. 1-02 of 2002
83 and its implementing Regulations of 200884, as well as by 
the relevant WTO Agreements. By December 2014, none of these legal instruments had been amended. Law No. 1-02 reflects the provisions in the WTO's Anti-Dumping Agreement, 
Agreement on Safeguards and Agreement on Subsidies and Countervailing Measures and in some 
cases the provisions in this law go into mo re detail than the aforementioned agreements.
85 
Furthermore, at the bilateral level, the use and application of such measures are also regulated in the trade agreements signed by the Dominican Republic.
86 
3.53.  During the period under review, the most important changes were the enactment of the 
Regulations implementing Law No. 1-02 in Se ptember 2008 and in January 2009 when the 
Regulatory Commission on Unfair Trade Practices and Safeguard Measures (hereinafter, the Trade 
                                               
78 Depending on the product, the no-o bjection permit may be called a no -objection letter or certificate. 
The authorities have indicated that it is always the same document and that the generic term is no-objection permit. 
79 Information provided by the authorities. 
80 Idem . 
81 Article 49 of Decree No. 521-06 of 17 October 2006. 
82 Documents DGDF-VS-LI-012, DGDF-VS-LI-011 and DGDF-VS-LI-002 issued on 12 July 2010, 
28 September 2011 and 23 July 2012, respectively, by the Directorate-General of Drugs and Pharmacies. Viewed at: http://drogasyfarmacias.gov.do/index.php?option=com_content&view=article&id=184:lista-de-
requisitos-para-permiso-de-importacion&catid=50:requisitos-vigilancia-sanitaria&Itemid=465 . 
83 Law No. 1-02 on unfair trade practices and safeguard measures of 18 January 2002. 
84 The Regulations implementing Law No. 1-02 on unfair trade practices and safeguard measures were 
approved by CDC Resolution No. 003-08 of 15 September 2008. These Regulations were notified to the WTO in 2009 (WTO documents G/ADP/N/1/DOM/3/Suppl.1, G/SCM/N/1/DOM/2/Suppl.1 and G/SG/N/1/DOM/2/Suppl.1, of 4 March 2009). 
85 For example, as regards safeguards, Law No. 1-02 defines the "domestic industry" as producers as a 
whole of the like or directly competitive product repres enting at least 50% of prod uction (Article 25), whereas 
in the Agreement on Safeguards "domestic industry" means producers as a whole of the like or directly competitive product representing a major proportion of  the total domestic production of those products 
(Article 4). 
86 All its agreements contain provisions on anti -dumping, countervailing and safeguard measures, 
except that with Panama, which has no provisions on safeguards. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 59 - 
 
  Defence Commission or CDC), created under Law No. 1-02, began operating. The Commission is 
responsible for conducting investigations into unfair trade practices and for deciding on the application of anti-dumping, countervailing or safeguard measures. 
3.54.  Although the operation of the CDC and some of the legislation are relatively recent, 
the Dominican Republic has in the past made use of anti-dumping and safeguard measures, albeit 
to a very limited extent. Over the period 2008-2014, it initiated two dumping investigations, five on safeguard measures but no subsidy investigations (Table 3.8). 
Table 3.8 Investigations initiated and me asures adopted by type of procedure, 
2008-2014 
 2008 2009 2010 2011 2012 2013 2014 Total 
Anti-dumping         
Investigations initiated 0 0 1 0 0 1 0 2 
Definitive measures adopted  0 0 0 1 0 0 1 2 
Safeguards         
Investigations initiated 0 3 2 0 0 0 0 5 
Definitive measures adopted 0 0 3 0 0 0 0 3 
Subsidies         
Investigations initiated 0 0 0 0 0 0 0 0 
Definitive measures adopted 0 0 0 0 0 0 0 0 
Source: CDC. 
3.55.  With regard to measures in force, acco rding to the notifications received by the WTO, 
at December 2014 the Dominican Republic had two definitive anti-dumping measures but no safeguard or countervailing measures in force.
87 
3.1.7.2  Anti-dumping and countervailing measures 
3.56.  Pursuant to Law No. 1-02, the domestic industry affected must make a formal application to 
the CDC for initiation of an investigation. For this to take place, the application must have the 
support of domestic producers whose output accoun ts for at least 25% of total production of the 
like product. In exceptional cases, the CDC may initiate an investigation ex officio. Investigations must be concluded within six months from their initiation or, exceptionally, within 18 months. After the investigation has been initiated, the CDC informs the parties concerned and publishes a notice. 
Exporters and foreign producers have 30 days as of publication of the notice in which to respond to 
the investigation form and put forward evidence. This time limit may be extended by 30 more days at the request of the parties. Provisional anti-dumping or countervailing measures may be imposed 
in the form of ad valorem duties or specific duties in addition to the relevant tariff, provided that 
60 days have elapsed since publication of the decision to initiate the investigation. The amount of anti-dumping and countervailing duties shall be the same as or less than the margin of dumping
88 
or the amount of the subsidy determined, respectively.89 No import may be subject to 
anti-dumping and countervailing duties simultaneously.90 The measures may not be applied for 
more than four months or, in some cases, six months. Once the investigation has been completed, the CDC is required to issue and publish a resolution. If the investigation leads to the imposition of 
definitive measures, these are to remain in effect  for five years. Anti-dumping or countervailing 
duties may, however, be renewed if so determined by a CDC investigation initiated ex officio or at the request of the domestic industry or any interested party.
91 In both cases, the CDC may initiate 
                                               
87 In January 2015, the notification for the second half of 2014 was pending. The authorities have 
indicated, however, that it was being prepared and that, in December 2014, the Dominican Republic had two definitive anti-dumping measures in place. The notifi cation concerning the first half of 2014 can be viewed 
in WTO document G/ADP/N/259/DOM of 30 September 2014. 
88 A margin of dumping shall be considered de minimis if it is less than 2%. Any investigation shall be 
terminated if it is determined that the dumping margin is de minimis (Article 80 of the Regulations 
implementing Law No. 1-02 approved by CDC Resolution No. 003-08). 
89 Articles 66, 86, 220 and 223 of the Regulations implementing Law No. 1-02 (CDC Resolution 
No. 003-08). 
90 Ibid., Article 223. 
91 Ibid., Articles 96 and 231. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 60 - 
 
  a review ex officio or at the request of interested parties before the five years have elapsed in 
order to decide on the continued need for the countervailing or anti-dumping duty.92 
3.57.  During the period 2008-2014, the Dominican Republic initiated two anti-dumping 
investigations relating to steel rods from (a) Turkey and (b) Spain and Portugal.93 
The two investigations concluded in 2011 and 2014, respectively, and in both cases duty in 
addition to the MFN rate was imposed fo r a period of five years (Table 3.9). 
3.58.  Over the same period, the Dominican Republic did not initiate any subsidy investigation, nor 
did it have any definitive co untervailing measure in force. 
Table 3.9 Anti-dumping investigations  initiated over the period 2008-2014 
Country of 
origin Product Initiation of the 
investigationa Results of the anti-dumping investigation 
Spain and 
Portugal  Steel bars or rods (7214.10.00, 7214.20.00, 7214.30.00, 7214.99.00)
 15/11/2013  Preliminary resolution issued on 13 March 2014, 
imposing provisional anti-dumpi ng duty of an additional 
23 percentage points on the MFN tariff and excluding Portugal from the investigation procedure.  
Final resolution  issued on 24 July 2014, imposing duty 
of an additional 22 percentage  points on the MFN tariff 
for five years. 
 
Turkey  Steel bars or 
rods 
(7214.10.00, 
7214.20.00, 
7213.20.90)  22/07/2010  Preliminary resolution issued on 11 November 2010, 
imposing duty of an addition al 38 percentage points on 
the MFN tariff. 
Final resolution  issued on 6 June 2011, imposing duty 
of an additional 14 percentage  points on the MFN tariff 
for five years.  
a Date of publication of the resolution. 
Source:  Online informatio n from the CDC. Viewed at: http://cdc.gob.do/es . 
3.1.7.3  Safeguard measures 
3.59.  The investigation procedure for safeguards is similar to that for anti-dumping. Pursuant to 
Law No. 1-02, the domestic industry affected mu st make a formal application to the CDC for 
initiation of an investigation. For this to take place, the application must have the support of 
domestic enterprises whose output accounts for at least 25% of total production of the like product. The CDC may initiate an investigation ex officio if it is shown that it is materially impossible for the domestic industry to make the application. The CDC must deal with the 
application within 30 days and publish a notice of the decision to accept or reject the initiation of 
an investigation. Investigations must be concluded within six months or, exceptionally, within 18 months. After the investigation has been initiated, the CDC notifies the parties concerned 
and the WTO Secretariat and gives interested partie s 30 days as of publication of the decision to 
initiate an investigation in which to respond to the investigation form and present evidence in their defence. After the definitive resolution has been adopted and if it is decided to impose a safeguard 
measure, the measure is notified to the WTO.  A safeguard measure may be in the form of 
an increase in the applicable  ad valorem tariff, a tariff quota or a maximum import quota.
94 
According to the WTO Agreement on Safeguards, the maximum duration of a safeguard measure is four years, but it may be extended to eight years.
95 Measures imposed for over one year must be 
gradually liberalized at regular intervals.96 Where the duration is over three years, the CDC 
may review the situation and annul the measure or speed up the pace of liberalization.97 
Provisional measures may also be imposed, subject to notification to the WTO. 
                                               
92 Article 54 of Law No. 1-02 and Articles 96 and 232 of the Regulations implementing Law No. 1-02 
(CDC Resolution No. 003-08). 
93 The authorities have indicated that Portugal was originally excluded from the investigation procedure. 
94 Article 272 of the Regulations implementing Law No. 1-02 (CDC Resolution No. 003-08). 
95 Pursuant to the WTO Agreement, developing coun tries may extend the measure for two more years, 
making a maximum term of 10 years (Article 9). 
96 Article 79 of Law No. 1-02. 
97 Article 279 of the Regulations implementing Law No. 1-02 of 15 September 2008. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 61 - 
 
  3.60.  The Dominican Republic initiated five sa feguards investigations  over the period 2008-2014 
(Table 3.10), four of these under the Agreement on Safeguards and one pursuant to Section 16 of Part I of the Protocol on the Accession of the Pe ople's Republic of China to the WTO. All these 
investigations were concluded over this period and in three of the cases definitive safeguard 
measures were imposed.
98 The latest investigation relating to lavatories and washbasins from 
China was initiated in March 2010 and resulted in a transitional safeguard measure applied in accordance with the Protocol on the Accession of the People's Republic of China (Part I, Section 
16).
99 All of the three measures imposed had already expired by December 2014.100 
Table 3.10 Safeguards investigations initiated over the period 2008-2014  
Country 
of origin Product Initiation of the 
investigationa Results of the safeguards investigation 
China Lavatories and 
washbasins (6910.10.10 and 6910.10.30) 16/03/2010 
Investigation initiated under 
the transitional 
product-specific safeguards 
mechanism, pursuant to 
Section 16 of Part I of the 
Protocol on the Accession of 
the People's Republic of China 
to the WTO Preliminary resolution issued on 1 June 2010, 
imposing provisional duties  of 35 (lavatories) and 
30 (washbasins) additional percentage points on the MFN tariff. Final resolution  issued on 13 December 2010, 
imposing definitive duties  of 40 (lavatories) and 
30 (washbasins) additional percentage points on the MFN tariff for a period of three years and providing for gradual phasing out. 
All origins  Sports and 
other socks 
(6115.95.00 
and 
6115.96.20)  16/02/2010 Preliminary resolution issued on 11 May 2010, 
imposing provisional duty of 40 additional 
percentage points on the MFN tariff. 
Final resolution  issued on 25 October 2010 
imposing definitive duty of  40 additional percentage 
points on the MFN tariff for a period of three years 
and providing for gradual phasing out.  
All origins Tubular fabric 
and polypropylene bags 
(5407.20.20, 
6305.33.10, 6305.33.90) 15/12/2009 Preliminary resolution issued on 16 March 2010, 
imposing provisional duty of 38 additional percentage points on the MFN tariff for products of 
HS subheadings 5407.20.20 and 6305.33.90. 
Final resolution  issued on 5 October 2010, 
imposing definitive duty of  38 additional percentage 
points on the MFN tariff for a period of 18 months and providing for gradual phasing out.  
All origins Toilet paper 
(4818.10.00) 15/04/2009 Preliminary resolution issued on 6 April 2010 on 
continuing the investigation without imposing 
provisional duty. 
Final resolution  issued on 4 May 2010, not 
imposing any safeguard duty.  
All origins  Glass 
containers (7010.90.10, 7010.90.20, 7010.90.30, 7010.90.40, 7010.90.50, 7010.90.90) 15/04/2009 Preliminary resolution issued on 14 August 2009 
on continuing the investigation without imposing provisional duty. Final resolution  issued on 2 February 2010, not 
imposing any safeguard duty.  
a Date of publication of the resolution. 
Source:  Online informatio n from the CDC. Viewed at: http://cdc.gob.do/es . 
                                               
98 The three measures were notified to the WTO. The WTO documents concerning sports and other 
socks are: G/SG/N/8/DOM/2/Suppl.1, G/SG/N /10/DOM/2 and G/SG/N/11/DOM/2/Suppl.1 of 
3 November 2010. For the measure concerning tubular fabric and polypropylene bags, the WTO documents are: G/SG/N/7/DOM/1, G/SG/N/8/DOM/1 and G/SG/N/11/DOM/1 of 6 April 2010. For the measure on lavatories and washbasins, the WTO document is: G/SG/N/16/DOM/1/Suppl.5 of 20 December 2010. 
99 WTO document WT/L/432 of 23 November 2001. 
100 WTO documents WT/DS418/13 of 9 May 2012; G/SG/N/10/DOM/2/Suppl.3 of 12 December 2013 
and G/SG/N/16/DOM/1/Suppl.8 of 13 December 2013. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 62 - 
 
  3.1.8  Standards, technical regulation s and conformity assessment procedures 
3.1.8.1  Legal and institutional framework 3.61.  During the period 2008-2014, the Dominican Republic made radical changes to its 
legislation on standards, technical regulations and conformity assessment procedures with the 
adoption of Law No. 166-12, in force since July 2012.
101 This new Law repealed Law No. 602 of 
1977 on standardization and Law No. 3925 of 1954 on metrology (and the amendments thereto), which were the principal pertinent legal instruments up to 2012. Law No. 166-12 did not only 
amend the Dominican legal framework on standardization in order to update and strengthen it, 
but also the institutional framework by creating the Dominican Quality System (SIDOCAL).
102 
The objective of these changes as a whole is to afford better protection for human health, boost the image of Dominican products and services ab road and make them increasingly acceptable. 
As of December 2014, the Regulations implementing Law No. 166-12 were being prepared. 
3.62.  Law No. 166-12 echoes the provisions in the WTO Agreement on Technical Barriers to Trade 
and in some cases is more specific. Unlike the previous legislation, the new Law provides that only 
"Dominican standards" of a non-mandatory nature are to be called NORDOMs
103, whereas under 
the previous legislation NORDOMs encompassed optional standards and technical regulations. Another change introduced by the new legislation concerns the procedure for drafting technical 
regulations. Previously, the drafting procedures (as well as approval and publication) for technical 
regulations and standards were the same. Pursuant to Law No. 166-12, technical regulations now have to be drafted by the competent Dominican Ministries, except for those concerning metrology, which become the responsibility of the Dominican Quality Institute (INDOCAL) (see below). 
The Law also lays down guidelines for developing conformity assessment procedures. The stages 
for preparing both technical regulations and conformity assessment procedures are being developed but have not yet been finalized. 
3.63.  Until 2012, the main institutions dealing with standardization were the National Commission 
for Standards and Quality Systems (COMINNOR) and the Directorate-General of Standards and Quality Systems (DIGENOR). COMINNOR was responsible for defining standardization policy and 
for approving standards and technical regulations; DIGENOR was its executing arm. 
Both authorities were replaced as part of the crea tion of SIDOCAL, which is made up of conformity 
assessment bodies, ministries and other government authorities with standardization and metrology responsibilities, and of three new enti ties established by Law No. 166-12. These are: 
(a) the Dominican Quality Council (CODOCA); (b) INDOCAL; and (c) the Dominican Accreditation 
Authority (ODAC). ODAC is the only of these three for which no equivalent body existed in the past. CODOCA
104 replaces COMINNOR and is the highest authority in SIDOCAL. CODOCA is in 
charge of developing, coordinating and disseminati ng policies and legal guidelines on product and 
service quality. It is composed of eight Dominican ministries and institutions, seven representatives from the private sector, two from the academic sector and one consumer 
representative.
105 INDOCAL replaces DIGENOR106 and becomes the national authority responsible 
for preparing technical standards, metrology and conformity assessment procedures.107 
The Dominican Information Centre for Technical Regulations and Conformity Assessment Procedures (CEDIRET) has been set up as part of INDOCAL to act as an information centre and 
database.
108 According to the authorities, it is planned that CEDIRET will begin to operate in 
mid-2015. ODAC is the body responsible for accreditation, and its creation has meant that testing is now authorized in Dominican territory and certificates can be issued. It started to operate in 
September 2013 and it is planned that its first evaluations for accreditation purposes will be in 2015. 
                                               
101 Law No. 166-12 was enacted on 19 June 2012 and published on 13 July 2012. 
102 The aim of these changes is to develop the TBT an d quality infrastructure in the Dominican Republic. 
103 Article 49 of Law No. 166-12. 
104 Ibid., Article 14. CODOCA is responsible for developing  national policy on quality and for determining 
the general guidelines responding to the country's needs and consistent with international guidelines and good practice. 
105 Article 16 of Law No. 166-12. 
106 Formerly, DIGENOR was responsible for coordinating  the preparation and application of standards, 
technical regulations and conformity assessment procedures. 
107 INDOCAL is attached to the MIC. 
108 Article 59 of Law No. 166-12. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 63 - 
 
  3.64.  INDOCAL also has responsibility for drawing up national standardization policy and the 
national standardization plan based on nation al development needs. According to the 2014 
standardization programme, standardization of foodstuffs is one of the cornerstones for the development of the Dominican economy. Other issues of importance are fuels and construction 
materials. The authorities have indicated that, by December 2014, work had also begun on 
standards for the electricity sector in order to develop the Dominican Electricity Code
109, which it is 
planned to adopt in 2015 at the latest. 
3.1.8.2  Preparation and application of stan dards, technical regulations and conformity 
assessment procedures 
3.1.8.2.1  Standards 3.65.  The procedure for preparing NORDOMs has not changed since the previous review 
(Box 3.2), the only difference being that the proc edure is now the responsibility of INDOCAL and 
no longer of DIGENOR and the standards are approved by CODOCA, not by COMINNOR, as was previously the case. Preparation of a NORDOM involves a process of public consultations and 
publication in a national newspaper once it has been approved.
110 Standards must be based on 
international standards, where these exist, and are proposed to the competent technical committee by INDOCAL or one of its technical committees. The private sector may intervene in the 
proposals and in standardization policy in genera l through CODOCA's Board of Directors, on which 
it has seven representatives.
111 After the public consultations have been held and the 
corresponding authorizations have been obtained, the standard is published in a national newspaper and comes into force six months after publication. NORDOMs are reviewed every 
five years. 
Box 3.2 Procedure for preparing and approving standards  
INDOCAL or any member of its technical committees pr epares a proposal to be submitted to the competent 
technical committee. The latter approvals the proposal as a preliminary draft and presents it for public 
consultation for a period of 60 days. If no comments ar e received, the preliminary draft is approved as a draft; 
if there are comments, the technical committee examin es them and prepares a revised preliminary draft, 
which is again presented for public consultation for 30 days. After the committee has approved the preliminary 
draft, making it a draft text, the text is forwarded to INDOCAL. If INDOCAL considers the draft to be 
acceptable, it forwards it to the Technical Commission of  Experts, a specialized branch  of the Board of Directors 
of CODOCA (previously COMINNOR) for approval. Once it  has been approved, the standard is published in a 
national newspaper and comes into force six months after publication. This time limit, as well the 60 days in 
which to submit comments, are those indicated in the Decisions adopted by the WTO Committee on Technical 
Barriers to Trade.  
Source: Regulations on the Procedure for the Prepar ation, Approval, Publicat ion and Dissemination of 
Dominican Standards (second revision 2005), approved by Resolution No. 2 of 6 March 1979. 
3.66.  If a product presents health or safety risks, INDOCAL may prepare an emergency standard 
and submit this directly for approval withou t having to go through all the procedural 
stages habitually followed for NORDOMs. Emer gency NORDOMs are valid for one year, but may 
be extended. 
3.1.8.2.2  Technical regulations 3.67.  Technical regulations are prepared by the competent ministries and government authorities, 
with advice and coordination from INDOCAL, with the exception of technical regulations relating to 
legal metrology, which are drafted solely by INDOCAL.
112 The mechanism for approving regulations 
drawn up by ministries has not yet been established, however, and at December 2014 was the 
subject of only one proposal. According to this pr oposal, ministries have to draw up a preliminary 
draft of the technical regulation before it can be issued and this is sent to the technical working committee for discussion. After the draft has been fi nalized and approved, it is published, put up 
                                               
109 Ibid., Article 48. 
110 For further information, see the Regulations on  the Procedure for the Preparation, Approval, 
Publication and Dissemination of Dominican Standards (second revision 2005), approved by DIGENOR 
Resolution No. 2 issued on 6 March 1979. 
111 Article 16 of Law No. 166-12. 
112 Ibid., Article 53. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 64 - 
 
  for public consultation for a period of 60 days, and notified to the WTO. After this period, 
the competent ministry finalizes it, taking into account any comments received, and forwards it to CODOCA's Technical Commission of Experts for approval.
113 After the final text of the draft has 
been approved, it is sent on to CEDIRET to be notified to the WTO.114 
3.1.8.2.3  Conformity a ssessment and certification 
3.68.  As is the case for technical regulation s, conformity assessment procedures must be 
prepared by the competent ministries and govern ment authorities with advice and coordination 
from INDOCAL and be approved by CODO CA's Technical Commission of Experts.115 
3.69.  Pursuant to Law No. 166-12, all products, whether Dominican or imported, must provide 
evidence of compliance with the corresponding techni cal regulations. Products for export subject to 
technical regulations must also be certified and/or obtain certification or a conformity mark 
(or quality stamp) from INDOCAL.116 Penalties apply if these provisions are not respected. 
3.70.  In addition to INDOCAL's certification and quality stamps, depending on the product, 
producers may turn to conformity assessment bodies for certification of their products, provided 
that these have been accredited by a recognized accreditation body such as ODAC.117 
Previously, the Dominican Republic had no national accreditation body, so in many cases conformity assessment testing was carried out by accredited foreign laboratories, and there were 
no Dominican laboratories accredited in accordance with international standards either.
118 
ODAC, set up in 2012 and oper ating since 2013, fa cilitates accreditation of private and 
government assessment bodies in the Dominican Republic and, consequently, testing in the country, thereby lowering the cost and the time taken. ODAC may accredit certification bodies, 
testing laboratories, calibration laboratories, clinical laboratories and inspection bodies obeying 
ISO standards.
119 
3.71.  As regards enforcement, the new Law gives Pro Consumidor, established in 
September 2008120, authority to inspect and verify compliance with standards, technical 
regulations and the other legal provisions. It also has the task of proving that measuring instruments have an INDOCAL-consistent certificate or stamp.
121 Penalties apply to the sale of 
goods or services that fail to comply with the technical regulations, or measurements, installations 
or production processes that do not comply with Dominican or international standards and technical regulations. The penalties are applied by  Pro Consumidor and the other regulatory bodies 
given this responsibility.
122 
3.72.  At December 2014, the Dominican Republic had not signed any mutual recognition 
agreement.123 
3.1.8.2.4  Notifications to the WTO 
3.73.  INDOCAL, through CEDIRET, will be resp onsible for making TBT notifications to the WTO 
through the Ministry of Foreign Affairs (MIREX).124 Until CEDIRET is up and running, MIREX will 
continue to be in charge of the notification process as a whole. 
                                               
113 Ibid., Articles 26-32. The Technical Commission of Ex perts, representing CODOCA, is the national 
authority responsible for reviewing and approving NORDOMs and Dominican technical regulations (RTD). The implementing Regulations for Law No . 166-12 will establish the mechanism fo r approval of regulations drawn 
up by Dominican Government  ministries and the institutions attached to them. 
114 Metrological technical regulations will follow the same procedure within INDOCAL. 
115 Article 94 of Law No. 166-12. 
116 Ibid., Article 90. 
117 Idem. 
118 In this connection, the authorities have indicated that, even though the laboratories which carried 
out conformity assessment prior to 2008 were not accredited, they complied with the relevant international regulations. 
119 WTO document WT/TPR/S/207/Rev.1 of 3 March 2009. 
120 General Law on Protection of Consumers' and Users' Rights No. 358-05, enacted on 
9 September 2005, and its implementing regulations approved by Decree No. 236 of 30 May 2008. 
121 Articles 109 and 110 of Law No. 166-12. 
122 Ibid., Article 112. 
123 Information provided by the authorities. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 65 - 
 
  3.74.  The TBT focal point is the Directorate of Foreign Trade in the MIC, which acts as the 
TBT National Enquiry Point.125 In September 2009, its website came on line and provides 
information on notifications to the WTO and on the activities of the National Committee for Implementation of the WTO Agreement on Technical Barriers to Trade.
126 
3.75.  By December 2014, there were 747 NORDOMs and 169 technical regulations in force, 
compared to 457 NORDOMs and 169 technical regulations in 2008.127 I t  s h o u l d  b e  e m p h as i z e d  
that, pursuant to the new Law No. 166-12, the 169 technical regulations had been transferred to 
the competent ministries for adoption and application. The authorities have indicated that 14 of 
these have already been adopted by the competent ministries and notified to the WTO. They also 
pointed out that just over 50% of the technica l regulations and NORDOMs are either based on 
international standards or are identical, and the majority of the technical regulations still concern 
food products. The catalogue of NORDOMs can be viewed on INDOCAL's website, but detailed 
information on each NORDOM is still not available.128 By December 2014, the database of technical 
regulations had not yet been implemented. 
3.76.  The Dominican Republic submitted 77 no tifications to the WTO TBT Committee over the 
period 2008-2013, of which 14 concerned technical regulations (see above) and eight conformity 
assessment procedures. In 2014, no technical regulation or conformity assessment procedure 
was approved. The Dominican Republic also raised eight specific trade concerns in 2009, 
2011, 2012 and 2013, all concerning draft legislation on specifications for tobacco products or their packaging.
129 
3.1.8.3  Labelling and marking 
3.77.  In 2009, the third revision of technical regulation NORDOM 53 on labelling requirements 
was approved. The second revision dated back to 1998. According to this technical regulation, labels for all imported pre-packaged foodstuffs must be in Spanish.
130 The third revision amended 
the contents to be included in labels. The new regulation requires all ingredients accounting for 
over 5% of the foodstuff to be listed131, instead of 25% previously. It also provides more detailed 
information on additional labels to be used if the original label is not in Spanish, specifying that it 
must not cover the original label. Labelling of medicines is also regulated by NORDOM 407, but the 
authorities have indicated that it is not being applied.132 In addition to NORDOMs 53 and 407, 
other laws such as Law No. 42-01 on health (Article 112)133 and Law No. 358-05 on consumer 
rights (Article 84)134 require all imported products to bear a label in Spanish, which means that 
there is duplication of laws and responsibilities for verification by the authorities involved. 
In addition to the DGA, INDOCAL, the Ministries of Public Health and Agriculture and Pro Consumidor may verify and approve labels. 
3.1.8.4  Sanitary registration 
3.78.  There has been no important change as far as  sanitary registration is concerned. If they are 
to be sold in the Dominican Republic, imported foods and beverages, as well as their raw 
materials, must have sanitary registration with  the Ministry of Public Health (Article 129 of 
Law No. 42-01). Registration with the Ministry is also required for medicines and raw materials, 
                                                                                                                                               
124 Article 56 of Law No. 166-12. 
125 Idem . 
126 This Committee was created by Decree No. 633-06 of 31 December 2006. Its purpose is to ensure 
compliance with the commitments under the TBT Agreement, to promote standardization as a tool in support of the country's technological modern ization, and to act as a common fo rum for government authorities where 
they can express their concerns, interests and expectatio ns regarding the national programme relating to TBT 
Agreement matters. The Committee is composed of 14 government authorities. 
127 Information provided by the authorities. 
128 The catalogue of NORDOMs is available at: 
http://www.indocal.gob.do/CatalogodeNormas/tabid/129/Default.aspx . 
129 WTO TBT Information Management System. Viewed at: http://tbtims.wto.org/Default.aspx?Lang=0 . 
130 NORDOM 53 on labelling of pre-pa ckaged foodstuffs (third revision ), approved on 9 October 2009. 
131 Except for additives, which must be declared even if they account for less than 5% of the foodstuff. 
132 According to the authorities, its latest revision was in 2006. 
133 General Law on Health No. 42-01 of 8 March 2001. 
134 General Law on Protection of Consumers' and Users' Rights No. 358-05 of 9 September 2005. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 66 - 
 
  food for medical use, cosmetics and personal an d household hygiene products of foreign origin 
(Articles 110 and 115 of Law No. 42-01). 
3.1.9  Sanitary and phytosanitary measures 3.1.9.1  Legal and institutional framework 
3.79.  The drafting and implementation of sanita ry and phytosanitary measures are regulated by 
several national laws and regulations (Table 3.11), as well as by the WTO Agreement on the Application of Sanitary and Phytosanitary Measur es (SPS Agreement). There has been no major 
change to the legislation since the previous review in 2008. 
Table 3.11 Principal laws and agreements co mposing the legal framework for sanitary 
and phytosanitary measures 
Principal legislation Legal 
framework Date of 
enactment Brief description 
Food safety    
 General Law on Health Law No. 42-01  8 March 2001 Regulates the production, marketing 
and import of foodstuffs 
Animal health    
 Law on Animal Health  Law No. 4030  13 January 1955 Declares sanitary protection of 
livestock to be a matter of public 
interest  
 Law regulating the export of 
honey from bees and wax and their import and utensils Law No. 62 1 November 1974 Protects the development of 
apiculture 
 Decree issuing measures to 
prevent the introduction of 
foot-and-mouth disease and 
rinderpest into the country  Decree 
No. 6775 27 August 1950  Regulates the import and export of 
animals, animal products and 
byproducts  
 Regulations on the registration 
of veterinary facilities and medicines  Decree 
No. 521-06 17 October 2006 Establis hes registration for 
veterinary facilities and medicines  
 Law regulating the production, 
quality and marketing of animal 
feed Law No. 259 31 December 1971  Regulates the production, quality 
and marketing of animal feed  
 Decree on prohibition of 
pesticides  Decree 
No. 217-91 4 June 1991 Prohibits the import, preparation, 
formulation, marketing and use of agricultural chemicals  
 Plant health    
 Law on Plant Health  Law No. 4990 29 August 1958 Regulates the import of plants, fruit 
and seeds  
 Law on the Registration of 
Pesticides  Law No. 311 24 May 1968 Regulates trade in pesticides  
 Regulations implementing 
Law No. 311 Decree 
No. 322-88 12 July 1988  Determines the Regulations 
implementing the Law on the Registration of Pesticides  
 Other laws    
 Law on the Environment and 
Natural Resources  Law No. 64-00  18 August 2000 N/A 
 Law creating the Fisheries and 
Aquaculture Council  Law 
No. 307-04 3 December 2004 N/A 
 Regulations for the general 
implementation of the basic rules of good agricultural practices (GAP) and good animal husbandry practices (GAHP)  Decree 
No. 52-08 4 February 2008 N/A 
 Regulations on food and 
beverage risk control  Decree 
No. 528-01 14 May 2001 N/A 
 Regulations on sanitary 
inspection of meat and meat products for export Decree 
No. 329-11 17 May 2011 N/A 
N/A Not applicable. 
Source: WTO Secretariat based on inform ation provided by the authorities. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 67 - 
 
  3.80.  The principal laws on animal and plant heal th date back to the 1950s and none of them has 
been amended, although the authorities have indica ted that there are several draft laws to update 
them.135 Moreover, the legislation is widely dispersed, which may create confusion regarding the 
procedures for obtaining import permits. There is al so duplication of the responsibilities of each of 
the authorities concerned, which in many cases means that much longer time is required to obtain 
permits or authorizations, so there needs to be closer coordination among them. 
3.81.  The drafting of phytosanitary and animal health measures, as well as those relating to 
foodstuffs, is the responsibility of the Ministry of Agriculture, while measures relating to the safety 
of processed foods are the responsi bility of the Ministry of Public Health through its Food and 
Beverage Risk Control Department. The Ministry of the Environment and Natural Resources (SEMARNAT) has the task of regulating trade in dangerous substances, forestry products and 
matters relating to wildlife, the soil and water. Drafting and implementation of these measures are 
governed by the regulations of these Ministries. Th ere is still no single centralized mechanism for 
their preparation (Section 3.1.8). 
3.82.  The main components of the Ministry of Agriculture dealing with phytosanitary and animal 
health measures are the Departments of Animal Health, Plant Health, and the DPAG. The Departments of Animal Health
136 and Plant Health are responsible for preparing regulations on 
production and trade in products of plant and animal origin, while the DPAG is in charge of issuing 
import permits. 
3.83.  There is also the National Committee for the Application of Sanitary and Phytosanitary 
Measures (CNMSF), whose functions include recommending amendments to sanitary and 
phytosanitary policies and providing information on the legislation to guarantee their 
implementation. 
3.1.9.2  Types of measure and application 
3.84.  Imported products which present a risk for human, animal, plant, aquaculture or forest 
health must comply with the sanitary, phytosanitary and animal health measures specified in the technical regulations or no-objection permits and must have an import permit. The requirements 
for issuing these permits vary depending on the ty pe of product but generally require authorization 
from at least two government departments or authorities. Since the previous review, there has been no major change to the procedure for obtain ing such permits. The procedures for importing 
and obtaining permits for the main categories of product are described below: 
 Imports of products of plant origin require an import permit issued by the DPAG 
(Section 3.1.6.2). In order to obtain this, importers must first apply for a no-objection permit from the Department of Plant Health (DSV), sending a letter with a description of the 
product. The application is examined and, if  approved, the DSV issues the no-objection 
permit, which shows all the phytosanitary requirements to be met by the product before it can be imported.
137 The importer then has to present th e no-objection permit, together with 
the commercial invoice for the product, to the DPGA which, if it has no objection, will issue 
the import permit. When the product arrives at the point of entry, it is checked to see whether it complies with the requirements and is inspected. If all the requirements are met, the product is allowed to enter the country. Th e requirements in the no-objection permit 
vary and are specific for the following products: fertilizers and their raw materials, seeds, 
plants, flowers, fresh fruit, tobacco, spices, fresh vegetables, dried fruit, potatoes, grains, sugar, canary seed, sunflowers and malt. For some of these products, additional permits are 
required, for example, for plants, flowers, sugar and tobacco (Section 3.1.6.2).
138 
                                               
135 WTO documents G/SPS/N/DOM/56 and G/SPS/N/DOM/57 of 5 December 2014. 
136 The Department of Animal Health is part of the Directorate-General of Livestock (DIGEGA), which is 
a decentralized entity but attached to the Ministry of Agriculture. It is responsible for drafting and 
implementing national policies on live stock, poultry farming and apiculture. 
137 The requirements shown in the phytosanitary no -objection permit may va ry from one product to 
another, depending on its origin and the transport route. In general, they include the original phytosanitary certificate from the exporting countr y, permits from other authorities depending on the product, sanitary 
inspection and submission of th e original no-objection permit. 
138 For example, the no-objection permit from the DSV requires: (1) for seeds, a permit from the Seeds 
Department; (2) for plants and flowers, a no-objection  permit from the Wildlife Department; (3) for tobacco, WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 68 - 
 
  For fertilizers and their raw materials, a no-o bjection permit from the Ministry of the 
Environment is required rather than the phytosanitary no-objection permit. 
The requirements may vary depending on the place of origin of the products.139 For products 
of plant origin under WTO quotas (garlic, rice, onions, beans, maize and sugar140) 
additional authorizations are required from other government authorities in addition to the 
DSV no-objection permit (Section 4.1). These products, except for maize, also need an authorization issued by the DPAG before the application for a no-objection permit 
from the DSV. 
 Imports of products of animal origin  require an import permit issued by the DPAG. 
To obtain this, an importer must obtain a no-objection permit from the Department of Animal Health. This permit, together with the commercial invoice, has to be submitted to the 
DPAG, which issues the import permit. There are also specific requirements which vary 
depending on the product and its origin. In some cases, additional documents are required; this is the case for products of plant origin for animal consumption (maize, soya flour or 
lucerne), which require two no-objection letters, one from the Department of Animal Health 
and the other from the DSV (see above). At the border, the product is checked to see whether it complies with the requirements and is inspected. If it meets all the requirements, 
import is permitted.  
 Imports of products of forest origin (wood) and fishery products require a permit 
issued by the DSV or the Dominican Fish eries and Aquaculture Council (CODOPESCA), 
respectively. For wood, the importer must have a permit from the Ministry of the 
Environment in addition to the no-objection pe rmit from the DSV. For the import of fishery 
products, a no-objection permit has to be requested from CODOPESCA by means of a letter describing the product.  
3.85.  At December 2014, four technical regulations on animal health, six on plant health and 
three on food safety were in force.
141 
3.1.9.3  Risk analysis and conformity assessment 
3.86.  Risk analysis is the responsibility of the DSV142 in the Ministry of Agriculture. The following 
necessitate a pest risk analysis: (a) an application to import a new product of plant origin from an existing trading partner; (b) an application to import a product from a country from which it has not previously been imported; or (c) a change in the phytosanitary status in the import's country 
of origin.  
3.87.  For animal health, risk analysis for the import of animals or products of animal origin is the 
responsibility of the Animal Health Department in the Ministry of Agriculture.
143 This Department is 
also in charge of examining requests to import such products in order to determine the level of risk 
of introducing quarantine diseases.  
3.88.  There have not been any major changes either as regards conformity assessment 
since 2008. The authorities still rely on the Pest Diagnosis Laboratory and the Central Veterinary 
Laboratory (LAVECEN) both under the Ministry of Agriculture, together with around a dozen regional laboratories providing minimal diagnostic services.  
3.89.  The Food Safety Department in the Ministry of Agriculture has responsibility for ensuring the 
monitoring of residues and pollutants in unprocessed foods of plant or animal origin, as well as 
fertilizers and chemicals for plants, and veterinary and pharmaceutical products. Pro Consumidor has the task of controlling the quality and safety  of food produced in the Dominican Republic.  
                                                                                                                                               
a permit from the Dominican Tobacco In stitute; (4) for plants and plant material, a permit from the Wildlife 
Department in the Ministry of the Environment;  and (5) for sugar, certification by INAZUCAR. 
139 This department will undertake a pest risk anal ysis and issue a phytosanit ary no-objection permit. 
140 For chickens and powdered milk, which are also products subject to WTO tariff quotas, the import 
procedures for products of  animal origin apply. 
141 Whereas in 2008 three technical regu lations were in force on animal health, five on plant health and 
one on food safety. Information provided by the authorities. 
142 Through the Pest Risk Analysis Division. 
143 Through the Risk Analysis Division in  its Department of Animal Quarantine. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 69 - 
 
  3.1.9.4  Notifications to the WTO 
3.90.  Pursuant to the SPS Agreement, the Dominica n Republic notified the Ministry of Agriculture 
as the enquiry point and notification authority.144 
3.91.  During the period 2008-2014, the Dominican Republic made considerable improvements in 
in terms of notification.145 It submitted 82 notifications to the WTO SPS Committee on: 
laws, decrees and resolutions (28)146, sanitary and phytosanitary regulations (including drafts) 
(29), emergency sanitary and phytosanitary re gulations (1) and amendments thereto (24).147 
Of the 29 notifications on regulations, 27 concerne d food safety or protection of human health, 
one animal health and another plant health. The Dominican Republic did not raise any trade concerns in this area.
148 
3.2  Measures directly affecting exports 
3.2.1  Export procedures and requirements 
3.92.  The most important change with regard to export procedures during the review period was 
no doubt the generalization of use of the DUA and the SIGA in 2011, as well as the introduction of 
an AEO category (Section 3.1.1). 
3.93.  All natural or legal persons wishing to export have to submit the following documents: 
(a) the DUA; (b) the commercial invoice; (c) the shipping documents; (d) the export permit 
or sanitary, phytosanitary or animal health certificate, as applicable (Section 3.1.9); and 
(e) the certificate of origin for goods subject to tariff preferences under any trade agreement.149 
As mentioned in Section 3.1, the DUA is used for declaring both imports and exports150 and 
replaces the previous forms. 
3.94.  Since 2012, exporters have had to submit their declarations electronically through SIGA's 
website and not through the SIVUCEX151, which has ceased to operate. This single window has 
been replaced by the VUCE152, which covers not only export procedures but also imports and is 
one of the modules in the SIGA electronic platfo rm. The VUCE was created in 2012 and the plan is 
to introduce it as a pilot project in selected sites in the Dominican Republic. It is expected that it will be fully implemented throughout the country in 2016. 
3.95.  In the same way as importers, exporters must be registered in the RNC in order to engage 
in their commercial activities. Apart from the RNC, the authorities have indicated that there is no special registration requirement for exporters, except for those wishing to take advantage of any support mechanism (Section 3.2.4.2)
153 or to export metal waste. In the latter case, since 2013 
any natural or legal person engaged in exporting metal waste has had to be registered in the 
National Register for Trade and Export of Metal Waste, Scrap Metal and Other Copper or Aluminium Waste and their Alloys, as provided by Decree No. 334-07 of 2007.
154 The Register is 
administered by the Dominican Republic Export and Investment Center (CEI-RD), which sends an 
Exporter's Registration card to companies esta blished in the Dominican Republic, and by the 
                                               
144 Article 57 of Law No. 166-12 and WTO SPS Information Management System. Viewed at: 
http://spsims.wto.org . 
145 WTO document WT/TPR/S/207/Rev.1 of 3 March 2009. 
146 Including a notification on recognition of equivalence. 
147 Data provided by the authorities. 
148 WTO SPS Information Management System. Viewed at: http://spsims.wto.org/Default.aspx?Lang=1 .  
149 The requirements for obtaining certificates of origin differ depending on the trade agreement. 
150 Previously, one form was used fo r exports and another for imports. 
151 The SIVUCEX had existed since 2005. 
152 Decree No. 470-12 of 12 December 2014. 
153 These are the programmes provided by Law No. 84- 99 (Article 11) and its implementing Regulations 
(Article 2) and in Law No. 392-07 (Articles 13(d) and 40). 
154 Decree No. 334-07 of 3 July 2007. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 70 - 
 
  National Council for Free Export Zones (CNZFE) in the case of companies covered by the free-zone 
regime (Section 3.2.4).155 Registration is valid for one year and may be renewed.156 
3.96.  Since 2012 the Dominican Republic has had an AEO category (Section 3.1.1) through which 
it seeks to facilitate and speed up trade transactions for low-risk firms. 
3.2.2  Export duties, charges and other levies 
3.97.  No export duty as such is payable on exports of goods or services. Since 2011, however, 
all products from Dominican free zones exported to national territory have been subject to duty in 
the form of income tax.157 This was originally set at 2.5%, but in November 2012 rose to 3.5% 
(Section 3.2.4).158 Likewise, Law No. 307-04 on fisheries prov ides that all exports of fish, and of 
molluscs and crustaceans in their natural state, are subject to an ad valorem  tax of 0.5% and 5%, 
respectively.159 This Law has not been amended and remains in force, although the authorities 
have indicated that this tax is never applied because the rates have to be revised and transformed 
into a specific tax to be paid for services. 
3.98.  All Dominican exports are subject to a zero rate for the ITBIS160 and are exempt from the 
ISC.161 There is no other tax on exports. 
3.2.3  Export prohibitions, authorizations and licensing 3.99.  The Dominican Republic imposes export prohibitions and requires permits or authorizations 
for a limited number of products. 
3.100.  The list of products which may not be exported include amber, larimar and tortoise-shell 
(Table 3.12). 
Table 3.12 List of prohibited exports 
Product Legal framework Date of enactment 
Human blood and blood products Law No. 56 28 October 1974 
Amber in its natural state Law No. 165 26 May 1967 
Tortoise-shell Law No. 95 16 January 1967 
Amber, larimar, and similar minerals, not worked  Decree No. 13-87 7 January 1987 
Source:  WTO Secretariat. 
3.101.  In addition to the permits issued for sanitary or phytosanitary reasons, the authorities 
have indicated that the Dominican Republic requ ires permits for the export of fresh fruit, 
oriental vegetables and sugar. Exporters of fresh fruit and oriental vegetables must be registered 
with the DSV in the Ministry of Agriculture162, and be in possession of an authorization under the 
Oriental Vegetables, Fresh Fruit and Related Products for Export Programme (PROVOFEX) within 
this Department.163 Exporters of sugar and molasses must register their sales contracts and obtain 
an export permit from INAZUCAR.164 These are valid for 30 days and cover only one transaction.165 
                                               
155 Article 4 of Law No. 110-13 of 8 August 2013, on Trade and Export of Ferrous and Non-Ferrous Metal 
Waste, Scrap Metal, and Waste of Co pper, Aluminium, etc., and Article 4 of its implementing Regulations 
issued by Decree No. 164-14 of 26 May 2014. 
156 Article 20 of the Regulations implementing Law No. 110-13, issued by Decree No. 164-14 of 
26 May 2014. 
157 Article 11 of Law No. 139-11. 
158 Article 31 of Law No. 253-12 of 9 November 2012, amending Law No. 139-11. 
159 Article 25 of Law No. 307-04 of 15 December 2004. 
160 Article 342 of the Tax Code, last amended on 9 November 2012. 
161 Article 366 of the Tax Code, last amended on 9 November 2012 
162 Article 5 of Resolution No. 49-2005 of 6 October 2005. 
163 In November 2014, PROVOFEX moved up to the category of National Directorate for the Export of 
Vegetables, Fresh Frui t and Related Products (DINVOFEX) in the Ministry of Agriculture (Resolution 
No. 49-2014 of 5 November 2014). 
164 Article 18 of Law No. 618 of 1965 and amendments thereto. It was last amended on 8 January 1987 
by Law No. 27. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 71 - 
 
  3.102.  An export permit issued by the Ministry of Public Health166 is also required for medicines 
and chemical substances and from SEMARNAT fo r plants and wild animals and their products.167 
Export (marketing) of fishery products also requires a permit (Section 4.2). 
3.103.  Since late June 2011, products from Dominican free zones have no longer required 
authorization from the CNZFE in order to be sold on the domestic market. Before they can be sold, 
however, the companies concerned must simply notify the Council accordingly and submit their declaration to the DGA in order to determine the duty to be paid.
168 
3.2.4  Export support 
3.104.  The Dominican Republic has notified the WTO that it did not grant any export subsidies for 
agricultural products over the period 2008-2012.169 It also submitted notifications for the period 
2008-2013 pursuant to the extension it had been granted up until 31 December 2015 for the 
elimination of export subsidies and to develop an action plan for this purpose (Article XVI of the 
GATT 1994, Article 25 of the WTO Agreement on Subsidies and Countervailing Measures and paragraph 2(c) of General Council Decision WT/L/691).
170 
3.105.  The Dominican Republic has a free-zone regime, as well as other forms of export support 
for companies outside the free zones. These programmes are still in force and, in general, did not undergo any significant changes over the period  2008-2014, except for the free zones programme. 
During this period, the Dominican Republic reform ed its free-zone regime with the aim of meeting 
its commitment to eliminate certain export subsidies notified to the WTO, which has to be fulfilled by 31 December 2015.
171 The most important change was the elimination of export performance 
requirements applying to companies in free zones in order to obtain tariff and tax concessions. 
The local content requirements and restrictions on sales on the domestic market were also 
abolished, although an additional tax of 2.5% wa s applied on the sale of products from free zones 
on the domestic market. In November 2012, this tax increased to 3.5% (Section 3.2.4.1).172 
Special free zones were also abolished. 
3.2.4.1  Free zones 3.106.  The free-zone regime is the Dominican Republic's key export promotion programme. 
It is mostly governed by Law No. 8-90 of 1990 and its implementing Regulations
173 
and amendments thereto. The regime was modified  twice over the period 2008-2012, firstly by 
Law No. 139-11 of 2011174 and secondly by Law No. 253-12 of 2012.175 The CNZFE is still 
responsible for applying the legislation on free zones.176 Its tasks include evaluating the policies 
applied, making recommendations to the Executive, and examining and approving applications 
from companies wishing to set up in the zones.177 
3.107.  The free zones have been operating since 1969 and continue to play a leading role in 
Dominican trade, even though they have somewhat lost their dynamism in recent years.178 
In 2013, exports from free zones accounted for 52% of total exports, whereas in 2007 they 
                                                                                                                                               
165 Information provided by the authorities. 
166 Law No. 50-88 of 30 May 1988. 
167 Decree No. 1288-04 of 1 October 2004. These are plants, wild animals and their products subject to 
the regulations on international trade in wild species of fauna and flora (CITES). 
168 Article 11 of Law No. 139-11. 
169 WTO documents G/AG/N/DOM/19 of 22 July 2009 and G/AG/N/DOM/21 of 15 August 2013. 
170 WTO documents G/SCM/N/275/DOM of 15 July 2014; G/SCM/N/253/DOM and 
G/SCM/N/260/DOM of 3 July 2013; G/SCM/N/243/DOM of 28 June 2012; G/SCM/N/220/DOM and 
G/SCM/N/226/DOM/Rev.1 of 28 September 2011; G/SCM/N/211/DOM of 24 June 2010; and G/SCM/N/186/DOM and G/SCM/N/192/DOM of 8 July 2009 
171 Under the CAFTA-DR, the Dominican Republic undertook to eliminate all tariff exemptions subject to 
performance requirements by 2009. 
172 Article 31 of Law No. 253-12 of 9 November 2012, amending Law No. 139-11. 
173 The Regulations implementing Law No. 8-90, es tablished by Decree No. 366-97 of 31 August 1997. 
174 Law No. 139-11 of 24 June 2011. 
175 Law No. 253-12 of 9 November 2012. 
176 The CNZFE is composed of representatives of the public and private sectors. 
177 Articles 19 and 20 of Law No. 8-90. 
178 On the other hand, domestic expo rts have risen sharply over the past few years, reflecting in 
particular exports of gold and ferronickel. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 72 - 
 
  represented 63% and in 2002 81% (Chart 3.2).179 The free zones' contribution to GDP has also 
fallen, although not by much, from  3.6% in 2007 to 3.2% in 2013.180 The value of imports 
remained stable, as did their share of total im ports (20% of the total in 2007 and 19% in 2013). 
Free zones are still the major tax expense for the State. In 2013, they represented some 25% of 
total tax expense, followed by electricity generation (21%) and health (16%).181 
Chart 3.2 Exports and imports of free zones, 2002-2014 
(US$ billion) 
024681012
Total Free zonesDate of previous 
review
02468101214161820Date of previous
reviewExports Imports
 
 
Source:  National Statistics Office (ONE). 
3.108.  Companies operating in free zones have the advantage of customs and tax incentives.182 
These benefits include full exemption from: tariffs on the import of raw materials, equipment and 
machinery; the ITBIS; the ISR; the tax on the incorporation of companies; and other specific 
taxes.183 The exemptions apply for a period of 20 years in free zones situated in the border regions 
(Box 3.3) and 15 years in free zones in the rest of the country; both periods may be extended.184 
3.109.  In order to be eligible for the tariff concessions, companies under this regime had to meet 
certain performance requirements, but these have to be lifted in 2015 in accordance with the 
extensions given within the WTO framework185 and by December 2009, within the 
CAFTA-DR framework. Companies in free zones had to  export at least 80% of their output in order 
to be eligible for the benefits; this percentage could be less (or even zero) provided that 
production met certain local content requirements and the relevant tariffs and import duties were 
                                               
179 In 2013, 55 industrial parks were operating (53 in 2007), hosting 602 companies (526 in 2007). 
Almost 40% of the companies in free zones are of United  States origin, another 40% are of Dominican origin 
and the remainder are mostly of European origin. 
180 CNZFE (2014). 
181 Directorate-General of Internal Revenue (2013). 
182 Pursuant to Article 2 of Law No. 8-90, a free zo ne is defined as a geographical area in which 
companies whose output is exported may set up and benefit from special customs and tax concessions. 
183 Article 24 of Law No. 8-90 of 15 January 1990. 
184 Ibid., Article 28. 
185 Free Zones Law No. 8-90 of 15 January 1990. In January 2002, the Dominican Republic notified the 
WTO of the subsidies applied under this Law (WTO document G/SCM/N/74/DOM of 8 January 2002) and requested an extension of the transition period prov ided in the Agreement on Subsidies and Countervailing 
Measures (SCM Agreement). In September 2007, the Do minican Republic requested continuation of the 
extension under Law No. 8-90 (WTO documents G/SCM/N/163/DOM of 14 September 2007 and 
G/SCM/N/160/DOM of 5 July 2007) and undertook to eliminate the export subsidies by 31 December 2015 at the latest. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 73 - 
 
  paid.186 In 2011, the Dominican Republic abolished all these requirements under Law No. 139-11 
and authorized companies in free zones to sell up to 100% of their goods and services on the domestic market without restrictions.
187 Sales on national territory are deemed to be imports and 
are therefore subject to the tariff applicable to the ex-factory value188, the ITBIS, the ISC where 
applicable, and an ad valorem rate which, according to the authorities, is applied as income tax.189 
In November 2012, this tax rose from the original 2.5% to 3.5% pursuant to Law No. 253-12. In order to be able to sell on the domestic market, companies must notify the CNZFE for 
statistical purposes.  
Box 3.3 Types of free zone 
There are three types of free zone in the Dominican Re public, which differ accordin g to their geographical 
situation and what they produce: 
(a) Industrial or services free zones , which may be established throughout the country in order to 
accommodate manufacturing of goods or the supply of services. 
(b) Border free zones , which must be situated at a distance of no less than 3 and no more than 
25 kilometres from the border between the Dominica n Republic and Haiti and may opt for additional 
concessions such as rental subsidies. 
(c) Special free zones , which, because of the nature of their activities, must be established outside an 
industrial park in order to make use of immovable as sets and be close to the natural sources needed for 
their activities or because the country's geographical, economic or infrastructural conditions so require. 
This category has no longer applied to new companies since 2012. 
There are also three forms of administration of parks and free zones: publ ic, private, and joint. Public parks are 
managed by a government institut ion, the CNZFE or the Centre for Industrial Development and 
Competitiveness (PROINDUSTRIA). Private parks are mana ged by private companies or groups and joint parks 
are managed by non-profit-making organizations. In 2013, 67.3% of the parks were managed by the private 
sector, 27.3% by the public sector, an d only 5.5% were managed jointly.  
Source: Article 6 of Law No. 8-90, Article 36 of Law No. 253-12 and CNZFE (2014), Informe Estadístico del 
Sector Zonas Francas 2013. Viewed at: http://www.cnzfe.gob.do/images/transparencia/Estadisticas/InfEst2013Esp.pdf . 
3.110.  Law No. 253-12 (Article 36) also suspended the classification of special free zones 
provided by Law No. 8-90 so no new applicants ma y apply for this regime. This provision does not 
affect those companies already registered under this regime prior to entry into force of the law. 
For these companies, the special free-zone regime remains in effect (Box 3.3). 
3.111.  There has been little change in the activiti es carried out in free zones since the previous 
review. The main sectors of activity are still textiles (25.5% of exports from free zones in 2013), 
followed by medical and pharmaceutical prod ucts (24.5%), electrical goods (12.9%) and 
tobacco (11.6%).190 
3.112.  Between 2007 and 2008, a Fund for the Preservation and Creation of Jobs operated for 
a period of nine months191 allowing companies in free zones to receive compensation, subject to 
certain conditions, but it was abolished in 2008. 
3.2.4.2  Other export support programmes 
3.113.  In addition to the free-zone regime, the Dominican Republic has other mechanisms to 
promote exports by companies situated outside the free zones. Few of these mechanisms have 
                                               
186 Companies could sell up to 100% of their output on the domestic market subject to payment of the 
tariffs and duties applicable, provided that the national  content of the goods or services was at least 25% or 
they were not produced in the Dominican Republic. This  did not apply to companies in the textiles, footwear 
and leather subsectors, which could sell all their output on the dome stic market duty free (Article 17 of 
Law No. 8-90). 
187 Article 11 of Law No. 139-11. 
188 The authorities have indicated that the ex-factory value corresponds to the transaction value of the 
product. 
189 Article 11 of Law No. 8-90. 
190 CNZFE (2014). 
191 Decree No. 552-07 of 8 October 2007. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 74 - 
 
  undergone any major changes in practical terms si nce the previous review. The principal laws in 
this area are listed in Table 3.13. 
Table 3.13 Principal export support laws 
Legal framework Description Date of enactment 
Law No. 392-07  Law on Industrial Competitiveness and Innovation 4 December 2007 
Decree No. 674-12  Regulations implementing Law No. 392-07 7 December 2012 
Decree No. 556-08  Decree establishing the Regulations governing the special 
customs regime for the ma nufacturing industry  15 September 2008 
Law No. 84-99  Law on Export Revival and Promotion 6 August 1999 
Decree No. 213-00  Regulations implementing Law No. 84-99 22 May 2000 
Law No. 56-07 Law declaring the textiles, cl othing and accessories, hides 
and skins, footwear and leathe r manufacturing subsectors to 
be a national priority and creating a national regulatory 
regime for these industries 4 May 2007 
Law No. 28-01  Law creating a special border development zone in the 
provinces of Pedernales, Indepe ndencia, Elías Piña, Dajabón, 
Montecristi, Santiago Rodríguez and Bahoruco 1 February 2001 
Law No. 236-05  Law amending Law No. 28-01 on the Special Border 
Development Zone  19 May 2005  
Decree No. 539-05 Decree approving the Regulations implementing 
Law No. 28-01  28 September 2005 
Decree No. 496-02  Decree establishing the Regulations implementing 
Law No. 28-01 July 2002 
Source:  WTO Secretariat. 
3.114.  After the free-zone regime, the regime established by Law No. 392-07 of 2007 and 
administered by PROINDUSTRIA is no doubt the most important programme for the promotion and development of Dominican industry. The PROINDUSTRIA regime contains a component aimed at 
the export sector but has much broader coverage because it is intended for the manufacturing 
sector in general with the aim of improving the country's industrial competitiveness (Section 3.3.1.1). Under this regime, exporters recognized by PROINDUSTRIA have the right to refund of the tax on cheques, the ITBIS and th e ISC (on telecommunications, insurance and fuel) 
in a percentage equivalent to the percentage of their exports in total sales over a given period.
192 
In order to be eligible for Law No. 392-07, companies must be registered and meet certain requirements determined by PROINDUSTRIA. It should be emphasized that a company may not 
operate under the PROINDUSTRIA and free-zone regime simultaneously. 
3.115.  Law No. 392-07 of 2007 was complemented by other instruments (decrees, resolutions, 
rules, regulations) during the period 2008-2012,  of which the following two are particularly 
noteworthy: its implementing Regulations (D ecree No. 674-12 of 2012) and the Regulations 
governing the special customs regime for the manufacturing industry (Decree No. 556-08 of 2008). Neither of these two instruments has en tailed changes for exporters in practice. The 
authorities have indicated in particular that the special customs regime introduced by Law 
No. 392-07 to facilitate customs procedures for exporters and importers recognized by 
PROINDUSTRIA does not exist as such inasmuch as, in practice, the streamlined customs procedures apply to all exporters and importers.
193 Consequently, the Regulations for this regime 
issued in 2008 are not applied either (Decree No. 556-08).194 
3.116.  In addition to the PROINDUSTRIA programmes, exporting firms situated outside free zones 
are eligible for another three support schemes introduced by Law No. 84-99 of 1999195 and its 
                                               
192 Article 25 of Law No. 392-07. 
193 Ibid., Article 18. 
194 These Regulations were issued by Decree No. 556-08 of 15 September 2008. They specify various 
aspects of customs procedures and the establishment of a partial processing  system, which is provided for in 
Law No. 392-07 (Articles 26 and 27). Under this system, recognized companies may import into national territory raw materials that entered under a special customs regime or procedure (for example, the free-zone 
regimeor the temporary admission procedure) for proces sing without being required  to pay tariffs, provided 
that the processed goods re -enter the special regime/procedure wi thin a maximum renewable period of 
six months. 
195 Law No. 84-99 of 6 August 1999 on Export Revival and Promotion. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 75 - 
 
  implementing Regulations of 2000.196 These schemes are still in force and have not changed since 
the previous review. They consist of: (a) drawback fo r the refund of tariffs and other levies paid on 
imports of raw materials in general, as well as co ntainers, labels and packaging to be incorporated 
into goods for export; (b) compensation for up to 3% of the f.o.b. value of goods exported 
although it may not exceed the value of the cu stoms duty paid; and (c) temporary admission for 
inward processing that allows suspension of the payment of tariffs and the ITBIS on products imported for processing and re-export within 18 months, including products from free zones.
197 
The authorities have indicated that neither the refund mechanism nor the offset mechanism have 
been put into effect. 
3.117.  Another special customs regime for textiles and footwear remains in force and applies 
throughout Dominican territory, including free zones (Law No. 56-07) (Section 3.3.1). 
3.2.5  Financing, insurance and promotion 
3.118.  The Dominican Republic does not have any bank or financing institution exclusively 
reserved for exports. Nevertheless, in December 2014, a draft law was pending approval to make 
the National Bank for the Development of Housing and Industry (BNVF) into the Dominican Export 
Development Bank (BANDEX). The BNVF is currently a private-public bank which offers private and commercial products and services. Among these are multisectoral loans for production sectors, 
which include loans to SMEs, companies in free zones, and for post- and pre-shipment operations 
for exports. 
3.119.  PROINDUSTRIA is also authorized to lend money to firms either directly or through 
banking institutions in support of their manufacturing activities, although according to the 
authorities it has not yet done so.
198 During the period 2008-2014, PROINDUSTRIA had only 
one financing programme under which it managed funds for new firms through the Agricultural Bank at an annual rate of 8%, with a grace period of three months, and for a maximum amount of 
RD$1 million (or US$23,000).
199 This financing programme ceased to operate in 2012. 
3.120.  Regarding surety, Law No. 174-07 of 2007 (Art icle 1) authorizes the Ministry of Finance 
to guarantee loans granted by commercial banks to free zone companies in the textiles, 
clothing, hides and skins and footwear subsectors for an amount of up to RD$1.2 billion 
(or US$27.1 million).200 The authorities have indicated that this fund only operated in 2007 and 
guaranteed around 32 loans for an amount of US$31 million. Pursuant to Law No. 392-07 (Article 17), PROINDUSTRIA also had to set up a guarantee fund for loans granted by banking and 
non-banking financial intermediaries to SMEs in the manufacturing sector. By December 2014, 
this fund had not yet been set up. 
3.121.  In March 2009, the Dominican Republic cr eated a fund to promote the country's export 
offer and attract foreign direct investment, with the main objective of developing and 
implementing programmes and strategies to prom ote exports of goods and services and attract 
foreign direct investment.
201 The authorities have indicated that this fund was never put into 
operation. 
3.122.  The CEI-RD is the government body re sponsible for promoting Dominican exports and 
investment in the country. Its activities include technical assistance, market surveys and promotional fairs. In December 2014, the CEI-RD had two offices in the United States 
3.123.  In 2009, the Presidential Panel on Export Promotion (MPFE)
202 was created to replace the 
Presidential Council on Export Promotion. The MP FE is composed of public and private sector 
                                               
196 Regulations implementing Law No. 84-99, issued by Decree No. 213-00 of 22 May 2000. 
197 Articles 2, 6 and 8 of Law No. 84-99. 
198 Article 16 of Law No. 392-07. 
199 Online information from PROINDUSTRIA. Viewed at: 
http://incubatuproyecto.proindustria.gov .do/que-ofrecemos-/financiamiento.aspx . 
200 Law No. 174-07 of 17 July 2007 on the issue of  a financial guarantee for loans granted by 
commercial banks to companies in free zones. 
201 Decree No. 244-09 of 20 March 2009. 
202 Decree No. 174-09 of 10 March 2009. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 76 - 
 
  institutions and its main task is to evaluate export performance and develop a global policy. 
By December 2014, however, the MPFE was not yet operational. 
3.3  Measures affecting production and trade 3.3.1  Incentives 
3.124.  The Dominican Republic has various types of support programme to promote the 
manufacturing industry and the activities of SMEs, as well as companies situated in the country's border zones. These programmes include fiscal concessions, as well as facilitated access to 
financing. There have been some changes to the legislation on PROINDUSTRIA programmes and 
those aimed at SMEs since the previous review, although many of them are still at the implementation stage. 
3.3.1.1  Sectoral support programmes 
3.125.  After the free-zone regime, the regime established by Law No. 392-07 of 2007 and 
administered by PROINDUSTRIA is no doubt the most important programme for the promotion and development of Dominican industry. The aim of the PROINDUSTRIA regime is to promote the 
manufacturing industry by strengthening existing  companies, creating new ones and developing 
value chains by establishing industrial parks and estates. The PROINDUSTRIA regime is intended for the manufacturing sector in general but has a component aimed solely at the exporting 
manufacturing sector (Section 3.2.4.2). 
3.126.  Law No. 392-07
203 regulating the PROINDUSTRIA regime was complemented by other legal 
instruments (decrees, resolutions, rules, regulati ons) during the period 2008-2012, of which the 
following two are particularly noteworthy: its implementing Regulations (Decree No. 674-12 of 
2012) and the Regulations governing the special cu stoms regime for the manufacturing industry 
(Decree No. 556-08 of 2008). In 2012, the Do minican Republic issued the Regulations 
implementing Law No. 392-07, which mainly define the institutional framework for 
PROINDUSTRIA204, and in 2008 established the streamlined customs procedures to be applied 
under the special regime for Dominican industry (S ection 3.2.4). The authorities have indicated, 
however, that this special regime does not exist as such to the extent that, in practice, the trade 
facilitation measures apply to all exporters and importers and not just to those recognized by 
PROINDUSTRIA. Consequently, these regulations are not applied either. 
3.127.  At December 2014, the following were the main advantages accruing to companies under 
the PROINDUSTRIA regime pursuant to the Law (excluding those solely for the export sector, 
(Section 3.2.4)): (a) exemption from payment of the ITBIS on the import of certain raw 
materials205 and capital goods.206 In this connection, the authorities have indicated that, in the 
case of raw materials, this is not exemption from the ITBIS but rather deferred tax as the ITBIS is 
not paid at the time of purchase but at the time that the processed product is sold; (b) application 
of the same tax concessions (exemption from tariffs, selective taxes and the ITBIS) to the purchase of goods produced domestically as those granted if the goods had been imported under 
any incentive scheme
207; and (c) exemption from payment of tariffs and the ITBIS on the import 
of equipment and machinery, as well as construction taxes for recognized companies wishing to develop or set up in an industrial park.
208 Lastly, the PROINDUSTRIA regime provides for the 
creation of a partial processing regime under which recognized companies may import into 
national territory duty-free raw materials from a company under a special customs regime or 
procedure (for example, the free-zone regime or the temporary admission procedure) for processing, provided that the processed good s re-enter the special regime/procedure within 
                                               
203 Law No. 392-07 of 4 December 2007 on Comp etitiveness and Industrial Innovation. 
204 Regulations implementing Law No. 392-07, issued by Decree No. 674-12 of 7 December 2012. 
205 These raw materials are listed in Article 24 of Law No. 557-05 and Article 24 of Law No. 253-12. 
206 Article 20 of Law No. 392-07 and Article 4 of Decree No. 556-08. 
207 The incentive schemes defined by law include the free-zone regime(Law No. 8-90), the temporary 
admission for inward processing procedure (Law No. 84-90), the regime on tourism incentives 
(Law No. 158-01) and the border development regime (Law No. 28-01). 
208 Article 32 of Law No. 392-07. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 77 - 
 
  a maximum renewable period of six months.209 The authorities have, however, indicated that this 
mechanism is not yet operational. 
3.128.  Until 2013, recognized companies could also accelerate depreciation of the value of their 
machinery, deduct up to 50% for investment in machinery and equipment from their taxable 
income and exclude fixed assets purchased during this period from the tax base for asset tax.210 
The purpose of these benefits was to encourag e the modernization of their technology and 
machinery. In December 2014, the possibility of ex tending the benefits for a further five years was 
being discussed. 
3.129.  Law No. 392-07 also created industrial parks211 and industrial estates212 in order to group 
together companies and parks and create a production chain. 
3.130.  The textiles, footwear, leather and hides and skins subsectors are deemed to be a national 
priority for the Dominican Republic.213 Accordingly, the special customs regime for textiles, 
footwear and leather remains in force and applies throughout Dominican territory (Law No. 56-07).
214 Under this regime, imports or purchases of raw materials and machinery on 
the domestic market by companies in the textiles, footwear, leather and hides and skins 
manufacturing subsectors are exempt from the ITBIS, income tax (ISR) and other taxes payable. Companies under this regime situated in free zones may also sell all of their output on the 
domestic market duty free (subject to notification to the CNZFE). Furthermore, the majority of raw 
materials and inputs used by these subsectors benefit from a zero tariff.
215 
3.3.1.2  Support programmes for micro,  small and medium-sized enterprises 
3.131.  The Dominican Republic launched a new programme to promote the development of SMEs 
during the period 2008-2014. In December 2008, Law No. 488-08 established a regulatory regime 
for the development and competitiveness of micro, small and medium-sized enterprises (MSMEs).
216 In June 2012, its implementing Regulations were issued (Decree No. 284-12).217 
3.132.  The MIC's Vice-Ministry for the Promotion of Micro, Small and Medium-Sized Enterprises is 
responsible for administering and applying Law No. 488-08.218 Up until 2012, the competent 
government authority was the National Council for the Promotion of and Support for Micro, 
Small and Medium-Sized Enterprises (PROMIPYMES National Council).219 With the creation of the 
new Vice-Ministry, the Council disappeared as such and in 2013 became the Solidarity Bank (see below).
220 
3.133.  The Law seeks to facilitate access to loans for MSMEs through programmes with 
government authorities and private financing institutions, as well as through the creation of the 
Fund for Micro, Small and Medium-Sized Enterprises (FOMIPYMES)221 and a Credit Guarantee 
                                               
209 Articles 26 and 27 of Law No. 392-07 . 
210 Ibid., Article 50 . 
211 The law defines industrial parks as a "delimited perimeter authorized by the Board of Directors in 
which one or more industries operat e, interact and share services and common areas, with one promoter or 
operator". 
212 The law defines an industrial estate as "a group of  two or more parks, whet her free zones, industrial 
parks for small and medium-sized enterp rises or industries in general, composing a value chain, authorized by 
the Board of Directors, which agree to join together and act in common to strengthen negotiating capacity, share services, generate economies of scale and move towards the consolidation of a cluster". 
213 Law No. 56-07 of 4 May 2007. 
214 This regime has been in force since 2007 and, according to the authorities, excludes free zones. 
215 Article 3 of Law No. 56-07 containing the list of tariff lines to which a 0% rate applies. 
216 Law No. 488-08 of 19 December 2008. 
217 Regulations implementing Law No. 488-08, issued by Decree No. 284-12 of 11 June 2012. 
218 Information provided by the authorities. 
219 In 2007, Decree No. 238-97 of 16 May 1997 created the Programme for the Promotion of and 
Support for Micro, Small and Medium -Sized Enterprises (PROMIPYMES) and its Council. This Decree was 
amended by Decree No. 1182-01 of 14 December 2001, which established the National Council for the Promotion of and Support for Micro, Small and Medium-Sized Enterprises (PROMIPYMES). 
220 Information provided by the authorities. 
221 The FOMIPYMES will be financed by the Governme nt and by donations, loans and other income 
earned from providing its financ ial and non-financial services. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 78 - 
 
  Fund.222 By December 2014, neither of these Funds was operating and their regulations still had to 
be enacted. In 2013, the Solidarity Bank was cr eated, specializing in loans to micro and small 
enterprises without surety. Loans are also granted to SMEs through the National Reserve Foundation and the Reserve Bank. 
3.134.  The Law also covers, inter alia: the establishment of a taxation policy adapted to MSMEs; 
promotion of training workshops and technical assistance from the Vice-Ministry for the Promotion of Micro, Small and Medium-Sized Enterprise s; and encouraging MSMEs to take part in 
government procurement.
223 Regarding the latter point, when preparing their budgets, 
the authorities must reserve a certain percentage of their procurement and contracts exclusively for MSMEs through the corresponding selection pr ocedure. This percentage was originally 15%, 
but in 2012 it was increased to 20%.
224 The Law further provides for the creation of a single 
window for formalizing firms with the aim of facilitating and harmonizing procedures applicable to 
MSMEs, including registration for participation in public bidding procedures. This facility was launched in 2013.
225 
3.3.1.3  Regional development programmes 
3.135.  The Dominican Republic has two major programmes for the development of border 
provinces and provinces with tourism potential.  During the period 2008-2014, only the Tourism 
Development Programme was modified. 
3.136.  Up until 2013, the Tourism Development Programme granted tax exemptions to tourism 
companies seeking to set up in certain zones identified by the government as having tourism potential.
226 In December that year, the programme was extended to all regions with tourism 
potential and the duration of the benefits was increased from 10 to 15 years.227 Under this 
programme, firms are exempt from the ITBIS and duty on imports of machinery and equipment, 
the ISR and construction-related taxes. In order to benefit from this programme, firms must be 
approved by the Council for Tourism Development.228 
3.137.  The Programme for the Development of Border Zones229 grants a number of tax incentives 
to companies setting up in the seven border provin ces. Particularly noteworthy are exemption from 
payment of duty on imports of raw materials, machinery and equipment, the ITBIS on the 
purchase of goods and services in the national territory, the ISR and payment of the ISC (with the exception of that on alcohol and tobacco). This regime is to remain in effect until 2025.
230 In order to be eligible, companies must obtain an authorization from the Council for the 
Coordination of the Special Bord er Development Zone [ch 4???].231 
3.3.2  Competition policy and price controls 3.3.2.1  Competition policy 
3.138.  Competition policy in the Dominican Republic is mainly governed by Law No. 42-08 of 
2008
232, also known as the General Law on Competition, and by the Constitution of 2010 
(Article 50). Law No. 42-08 prohibits abuse of a dominant position, unfair competition and 
collusive practices that have a negative impact on  competition. The Constitution endorses the right 
                                               
222 Articles 8, 13 and 27 of Law No. 488-08. 
223 Ibid., Articles 17, 19, 25 and 28 . 
224 Article 5 of Decree No. 543-12 of 6 September 2012. 
225 Online information from FORMALIZATE. Viewed at: http://www.formalizate.gob.do . 
226 Law No. 158-01 of 9 October 2001 and its implementing Regulations, issued by 
Decrees No. 1125 -01 and No. 74-02 on 20 November 2001 and 29 January 2002, respectively. Law No. 158-01 was last amended on 13 December 2013 by Law No. 195-13. 
227 Articles 3 and 9 of Law No. 195-13 of 13 December 2013. 
228 The authorities have indicated that, in 2014, 127 projects were operating under this programme. 
229 Law No. 28-01 of 1 February 2001 and its implementing Regulations in Decree No. 496-02 
(of 2 July 2002) and approved by Decree No 539-05 of 28 September 2005. Law No. 28-01 was last amended on 19 May 2005 by Law No. 236-05. 
230 Article 5 of Law No. 28-01. 
231 The authorities have indicated that, in 2012, 110 firms were benefiting from the Programme for the 
Development of Border Zones, of which only  49 imported using the programme's benefits. 
232 General Law on Competition No. 42-08, enacted on 16 January 2008. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 79 - 
 
  to freedom of enterprise, trade and industry , and identifies the State as the guarantor 
of market contesta bility. These provisions reiterate some aspects of the 2002 Constitution but 
are more detailed.233 
3.139.  With the exception of the change in the Constitution, no other important modification to 
the legal framework for competition has been made since the previous review. During this period, 
all efforts focused on implementing Law No. 42-08, the preparation of its implementing Regulations and the creation of the Nati onal Competition Commission (hereinafter 
Pro Competencia). In December 2014, the implementing Regulations had already been drafted and 
put up for public consultation, but had not yet been finalized and approved. 
3.140.  Pro Competencia was established in 2009, but by December 2014 it was not yet 
operational.
234 It is responsible for implementing and applying competition legislation and is 
composed of a Board of Directors, its decision-m aking component, and an Executive Directorate, 
its technical arm (for investigations). The role of the Board of Directors is, inter alia , to enforce the 
law and to issue recommendations, resolutions and sanctions, whereas the Executive Directorate is 
responsible for receiving complaints and initiating investigations. In June 2011, Pro Competencia 
started to function in part with the appointment of the Board of Directors, but by December 2014 
the Executive Directorate still had to be appointed, so it was unable fully to fulfil its investigative 
role, inter alia.235 The authorities have indicated, however, that in December 2014 preliminary 
examinations of the competition situation in the country's markets had been initiated. 
3.141.  Pursuant to Law No. 42-08, investigations may be initiated ex officio (i.e. on the initiative 
of Pro Competencia) or following a complaint. After the investigation has been concluded, if 
prohibited practices are found, a penalty may be imposed depending on the seriousness of the act. 
3.142.  The authorities have indicated that in 2012 and 2013 cooperation agreements were signed 
with the competition authorities of Mexico, Peru and Spain. 
3.3.2.2   Price control 
3.143.  The Dominican Republic does not have any price controls other than those on sugar236, 
fuel237 and electricity. Electricity rates are subjec t to a State-financed stabilization mechanism 
(Section 4.3.1).238 Fuel prices are fixed each week and published on the MIC's website. 
3.3.3  State-owned enterp rises and privatization 
3.144.  The Dominican Republic did not submit any notifications to the WTO on the existence of 
State-owned enterprises according to the definition in Article XVII of the GATT 1994 over the 
period 2008-2014. It had not presented any notification prior to 2008 either. 
3.145.  The State's involvement in business in the Dominican Republic has continued to shrink 
since 2000. In 2014, the State participated in four companies or corporations in the agricultural, 
hydrocarbons and electricity sectors.239 
3.3.4  Government procurement 3.3.4.1  Legal and institutional framework 
3.146.  The procedures for government procurement and contracts are governed by Law 
No. 340-06
240, the amendments thereto (Law No. 449-06)241 and its current implementing 
                                               
233 Article 8 of the 2002 Constitution provides that the State shall guarantee "freedom of enterprise, 
trade and industry. Only monopolies for the benefit of the State or State institutions may be established. 
The law shall define the creation and organization of such monopolies". 
234 Pro Competencia was created pursuant to Law No. 42-08 as a decentralized government authority. 
235 Article 36 of Law No. 42-08. 
236 Article 4 of Law No. 619 of 16 February 1965. 
237 Law No. 112-00, enacted on 29 November 2000, and its implementing Regulations, enacted by 
Decree No. 307-01 of 2 March 2001. 
238 Decree No. 302-03 creating the Electricity Tariff Stabilization Fund, enacted on 31 March 2003. 
239 Information provided the Dominican authorities. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 80 - 
 
  Regulations, enacted in 2012242, which repealed the 2007 Regulations.243 The new Regulations 
contain much more detailed provisions on the organization of bidding procedures, which make for greater transparency and clarity at the operational level. In 2013, Decree No. 164-13
244 was also 
enacted, providing that Dominican government au thorities must reserve 20% of their budgets for 
contracts with Dominican MSMEs. 
3.147.  The Dominican Republic has also included a chapter on government procurement in the 
CAFTA-DR and its agreements with CARICOM, Central America and the EU. In these agreements, 
the Dominican Republic undertakes to grant national treatment to contractors from those 
countries, except in the case of CARICOM. It should be noted that the commitments under the CAFTA-DR are stronger than in the other agreements and led to important changes in Dominican legislation.
245 
3.148.  The Dominican Republic has not signed the WTO Agreement on Government Procurement 
and is not an observer at the Committee on Government Procurement. 
3.149.  At the institutional level, the Directorate-General of Government Procurement (DGCP), 
part of the Ministry of Finance, continues to be responsible for applying the legislation and drawing 
up the rules and policies on government procurement. The regulatory system is thus centralized in the DGCP, but at the operational level each entity organizes and awards its own contracts 
according to the provisions in the Law. 
3.150.  During the period 2008-2014, some changes occurred at the operational level. 
In August 2013, the Register of State Suppliers (RPE), provided for in Law No. 340-06
246, 
started to operate under the DGCP. This Register replaced those kept separately by each 
authority, and its organization is defined in the new Regulations (Articles 13 to 25). 
In February 2010, a website was introduced on which current procurement and contract procedures can be viewed. The new Regulations, inter alia, also identify the department in the 
contracting agency responsible for the organization, direction and conduct of bidding for each 
method of selection and establish the mandatory stages in the selection of suppliers.
247 
3.3.4.2  Procurement methods 
3.151.  Government spending has increased and, with it, opportunities for government 
procurement. In 2013, central government spending248 amounted to RD$97.4 billion, an increase 
of around 50% compared to 2007 (RD$64.3 billion).  Spending by the decentralized public sector 
amounted to RD$42.5 billion in 2010, the last year for which figures are available (compared to 
RD$22.4 billion in 2007).249 
3.152.  In order to take part in any selection procedure for government procurement and works 
contracts in the Dominican Republic, interested parties must first be registered in the RPE or 
submit an application for registration together with their bid.250 This does not apply to foreign 
persons or companies, which may take part in bidding without being registered in the RPE provided that they are not domiciled in the Dominican Republic. They only have to register if they 
are selected and prior to signing the contract.
251 In order to register in the RPE, foreign natural 
                                                                                                                                               
240 Law No. 340-06 on Procurement and Contracts for Goods, Services, Works and Concessions, enacted 
on 18 August 2006. 
241 Law No. 449-06, amending Law No. 340-06, enacted on 6 December 2006. 
242 Regulations implementing Law No. 340-06, issued by Decree No. 543-12 of 6 September 2012. 
243 The former Regulations implementing Law No. 340-06, issued by Decree No. 490-07 of 
30 August 2007. These Regulations were repealed in 2012. 
244 Decree No. 164-13, enacted on 10 June 2013. 
245 In fact, as a result of thes e commitments, the principal laws currently governing government 
procurement and contracts were approved: Law No. 340-06 and, subsequently, Law No. 449-06. 
246 Article 7 of Law No. 340-06. 
247 Article 20 of the Regulations implementing Law No. 340-06 (Decree No. 543-12). 
248 Central government spending includes expenditure on goods, services, equipment, machinery and 
construction. 
249 Data provided by the authorities. 
250 For procedures relating to lotteries for works,  price comparison, reverse auction and small-scale 
purchasing, bidders must first be registered in th e RPE (Article 13 of the implementing Regulations). 
251 Article 7 of Law No. 449-06 and Article 21 of its implementing Regulations (Decree No. 543-12). WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 81 - 
 
  persons and companies must submit the documents from their country of origin that 
are equivalent to those required for Dominican natural persons and companies, duly translated into Spanish and authenticated in accordance with The Hague Convention or by the Dominican Consulate in the country of origin, whichever applies. 
3.153.  The Dominican Republic has six types of mechanism for awarding contracts: (a) public 
bidding; (b) restricted bidding; (c) lotteries; (d) price comparison; (e) small-scale purchasing; and (f) reverse auction (Table 3.14). Essentially,  these mechanisms have not changed since the 
previous review, although the new Regulations go into more detail regarding the procedures, 
especially in the case of reverse auctions, which were not covered by the 2007 Regulations. 
Table 3.14 Bidding methods 
Type of bidding Definition 
Public bidding Public bidd ing consists of a public call for bids to enable interested parties to make 
their bids. In some cases, public  bidding may be international.  
Restricted bidding R e s t r i c t e d  b i d d i n g  c o n s i s t s  o f  a n  i n v i t a t i o n  t o  a t  l e a s t  f i v e  s u p p l i e r s .  I n  r e s t r i c t e d  
bidding, the number of suppliers is limited be cause of the special nature of the goods, 
services or works to be supplied. 
Price comparison and 
small-scale purchasing  Price comparison consists of an invitation to bid issued to all natural or legal persons 
registered in the RPE which may meet the requirements. This procedure only applies to the purchase of common goods with standard  specifications, the purchase of minor 
services and works. There is also a stream lined procedure for small-scale purchasing; 
in such cases, there is no minimum number of bidders. 
Reverse auction Reverse auction applies to the procurem ent of common goods with standard 
specifications and is carried out electronically, selecting the bidder offering the lowest 
price. Under this mechanism, a referenc e price is fixed on the basis of which 
participants propose lower bids. 
Lotteries for works  Drawing of lots consists of aw arding a contract for works randomly, subject to a 
predetermined design and price, to one of the participants which meet the necessary requirements for carrying out the work. For the lottery, contracting agencies must 
invite all possible suppliers registered in the RPE which are able to meet the requirements.  
Source: Article 16 of Law No. 340–06 and Articles 43, 46, 50 and 53 of its implementing Regulations. 
3.154.  Public bidding may be national or international and is usually the most common method. 
In 2014, it was estimated that some 70% of contracts would be awarded through public bidding.252 
International public bidding applies when: (a) the procurement or contract is covered by any of the 
treaties or agreements signed by the Dominican Republic; (b) national suppliers are unable to 
supply the goods or services or carry out the works that are the subject of the contract; 
or (c) national public bidding has been declared unsuccessful.253 In order to take part in this form 
of bidding, foreign suppliers must submit together with their bid legalized documents translated into Spanish proving that they are lawfully established in their country of origin. They must also 
forward documents proving that the product to be supplied is sold in the country of origin, and 
that the other requirements specified in the tender have been met.
254 These requirements are 
described in the new Regulations and are much more detailed than those in the former Regulations (Articles 21 and 58 of Decree No. 490-07). The call for bids is usually published at least 
30 working days before the opening of the bids for a period of two days in at least two national 
newspapers. For international bids, notices must also be put in foreign publications.
255 
3.155.  The Dominican Republic does not apply any margin of preference for Dominican goods. 
It does, however, have reserves for MSMEs (see below). 
3.156.  In the case of public works contracts, irrespective of the selection method, a foreign 
natural person or company may take part only if they are associated with a Dominican national or 
if their capital is jointly held, respectively.256 The Dominican Republic also applies the principle of 
reciprocity, according to which it gives foreign participants the same treatment as that which Dominican suppliers receive in their respective countries of origin as regards bidding, terms, 
                                               
252 Data provided by the authorities. 
253 Article 16 of Law No. 340-06. 
254 Article 34 of the Regulations implementing Law No. 340-06 (Decree No. 543-12). 
255 Article 18 of Law No. 340-06. 
256 Article 25 of the Regulations implementing Law No. 340-06 (Decree No. 543-12). WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 82 - 
 
  requirements and procedures.257 The authorities have indicated that this principle only applies to 
countries with which a trade agreement containing such commitments has been signed. 
3.157.  The selection methods are applied accordin g to thresholds and these are decided annually 
in light of the central government's income budget (Chart 3.3).258 In general, the selection method 
closest to the threshold and immediately below the estimated cost of the work, good or service 
that is the subject of the contract is followed . The thresholds are the same for procurement of 
goods or services. 
3.158.  The law does not allow contracts for goods or services or the fulfilment of works to be 
split up so as to prevent a type of selection process, unless the purpose is to enable the participation of MSMEs. In other cases, splitting up contracts is subject to penalties.
259 
3.159.  National or international public bidding is the only selection procedure allowed for awarding 
contracts for concessions.260 
Chart 3.3 Thresholds for determining the method of bidding, 2014 
 
Note:  Exchange rate RD$44.09 = US$1, at December 2014. 
Source: Resolution of the Directorate-General of Gove rnment Procurement in the Ministry of Finance of 
3 January 2014. 
3.3.4.3  Exceptions to the bidding methods 
3.160.  Law No. 340-06 provides for some exceptions to enable government authorities to procure 
goods, services or works without the need to go through a selection process. The exceptions apply to: (a) donations or loans from other States or international organizations as specified; 
(b) procurement using petty cash funds; (c) contracts between government authorities; 
(d) situations of urgency, security or national emergency; (e) carrying out or procuring scientific, 
technical, artistic or historical works; (f) situations in which there is only one supplier or a supplier 
                                               
257 Article 3 of Law No. 340-06. 
258 Ibid., Article 17. 
259 Ibid., Article 10, and Article 59 of the Law's implementing Regulations (Decree No. 543-12). 
260 Article 43 of Law No. 340-06. US$0.4 million  
(RD$16.8 millionUS$1.4 million  
(RD$62.8 million)  US$2.4 million 
(RD$104.7 million)  US$5.7 million  
(RD$251.3 million)  GOODS AND SERVICES  
Price 
comparison  
Small-scale 
purchasing Restricted bidding   
Public 
bidding  
US$1.9 thousand 
(RD$83.7 thousand )US$14.3 thousand
(RD$628.2 thousand)  US$76.0 thousand  
(RD$3,351 thousand)  US$77.2 thousand  
(RD$3,405 thousand)
10 20 30 40 50 60 70 80 US$ thousand  WORKS  
Restricted 
bidding 
Lottery 
Price 
comparison Public 
bidding 
1256
4
3US$ millionWT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 83 - 
 
  with exclusive rights to the goods or services to be procured; (g) procurement or contracts for 
installing foreign service offices; (h) situations in which finalization of a contract does not require more than 40% of the total cost of the projec t; (i) procurement intended to promote MSMEs; 
and (j) the purchase of advertising through social communication media.
261 
3.3.4.4  Incentives for participating in government procurement 
3.161.  In order to support activities by MSMEs and encourage their participation in government 
procurement and contracts, since 2008 the Dominican Republic has required that government 
authorities, when preparing their budgets, reserv e a certain percentage of their procurement and 
contracts exclusively for MSMEs. This percenta ge applies to all procurement and contracts 
(irrespective of the form of bidding) and was originally 15%262, but increased to 20% in 2012 
following the new implementing Regulations for Law No. 340-06.263 MSMEs may also make 
partial bids264 for the remaining 80% in order to expand their opportunities for participation. 
Moreover, in 2013, Decree No. 164-13 was issued establishing procedures under which procurement and contracts should be awarded to MSMEs. 
3.162.  In order to take part in the selection, MSMEs must be registered in the RPE and certified 
by the MIC in order to prove that they have MS ME status. Registration in the RPE may be done 
through the single window for formalization of MSMEs (Section 3.3.1.2).
265 
3.163.  Decree No. 164-13 also provides that pr ocurement and goods and services contracted 
from MSMEs must be of Dominican origin or produced in the Dominican Republic, wherever possible. Domestic origin or production is deemed to be: agricultural goods or livestock grown or bred in the country; manufactures in which the value of imported inputs does not exceed 
65% of the product's selling price; pharmaceutical products manufactured in laboratories 
established in the country; and consultancy with a national component of at least 70%.
266 
3.3.5  Intellectual property rights 
3.3.5.1  Legal framework 
3.164.  The Dominican Republic's legal framework fo r intellectual property is mainly governed by 
Law No. 20-00 on Industrial Property267, Law No. 65-00 on Copyright268, the amendments thereto 
(Laws No. 2-07, No. 424-06 and No. 493-06) and their implementing Regulations, as well as 
Law No. 450-06 on Protection of the Rights of Breeders of New Plant Varieties.269 None of these 
legal instruments was amended during the review period. The WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) and the regional trade agreements
270 also form part 
of the Dominican Republic's regulatory fram ework. The Dominican Republic has signed 
13 agreements within the framework of the Worl d Intellectual Property Organization (WIPO) 
(Section 3.3.5.4). 
                                               
261 Ibid., Article 6, and Articles 3 and 4 of the Law's implementing Regulations (Decree No. 543-12). 
262 Article 25 of Law No. 488-08. 
263 Article 5 of the Regulations implementing Law No. 340-06 (Decree No. 543-12). 
264 Under partial bids, a company may bid solely for the capacity it is able to offer; in other words, 
it does not have to bid for the total amount of the procurement contract or the tender. 
265 Article 11 of the Regulations implementing Law No. 340-06 (Decree No. 543-12). 
266 Articles 1 and 2 of Decree No. 164-13. 
267 Law No. 20-00 on Industrial Property, enacted on  4 April 2000, and its implementing Regulations, 
issued by Decree No. 599-01 of 1 June 2001. The Regulations were last amended by Decree No. 326-06, issued on 8 August 2006. The Law was amended by : (a) Law No. 424-06 on Implementation of the 
CAFTA-DR (issued on 14 November 2006 and in force since 1 March 2007); and (b) Law No. 493-06, amending Law No. 424-06 (issued on and in force since 22 December 2006). 
268 Law No. 65-00 on Copyright, enac ted on 21 August 2000, amendments thereto and its implementing 
Regulations, issued by Decree No. 362-01 of 14 March 2001. The Law was amended by: (a) Law No. 2-07 (issued on 30 December 2006 and in force since 8 Ja nuary 2007); (b) Law No. 424-06 on Implementation of 
the CAFTA-DR; and (c) Law No. 493-06, amending Law No. 424-06. 
269 Law No. 450-06 on Protection of the Rights of Breeders of New Plant Varieties, enacted on 
6 December 2006. 
270 All the trade agreements signed by the Dominica n Republic contain provisions on intellectual 
property, except for that with Panama. Among the agreements with intellectual property provisions, only the CAFTA-DR contains "far-reaching" provisions. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 84 - 
 
  3.165.  Dominican legislation to a large extent  reflects the commitments undertaken in the 
TRIPS Agreement and in the CAFTA-DR and the latter in some cases goes beyond the provisions in the TRIPS Agreement. For example, the Dominica n Republic grants rights which exceed the 
minimum periods determined in the TRIPS Agreement for trademarks (10 years rather than 7)
271, 
and copyright and related rights (lifetime plus  70 years rather than lifetime plus 50 years) 
(see Table A3.2).272 There are also special provisions on pharmaceuticals and agricultural 
chemicals, which impose protection of undisclosed information on data from clinical trials 
for 5 years for pharmaceuticals and 10 years for agricultural chemicals.273 It is not allowed to sell 
generic medicines whose components are protected by a valid patent without the consent of the 
patent holder; this means that there must be a link between patents and marketing permits (sanitary registration). This type of provision was the result of reform of the legislation following 
the signature of the CAFTA-DR.
274 
3.166.  Unlike the 2002 Constitution, the 2010 text explicitly recognizes and protects intellectual 
property rights as regards works, inventions, innovation, appellations, trademarks, distinctive 
signs and other products of the human intellect (Article 52). 
3.3.5.2  Institutional framework 3.167.  At the institutional level, the foremost auth ority for intellectual property matters is still the 
National Industrial Property Office (ONAPI). This  is a decentralized authority attached to the MIC 
and it deals with all industrial property-related matters, for example, patents and utility models, registration of industrial designs and distinctive signs. There is also a National Copyright Office 
(ONDA) attached to the Ministry of Culture, which is responsible for implementing the law on 
copyright. Its tasks include: keeping the register of  literary, artistic or scientific works, controlling 
utilization of protected literary material  and ensuring enforcement of the law. 
3.168.  As regards enforcement, the DGA is empowered to inspect and control imported or 
exported goods and goods in transit to ensure that they are not counterfeit and do not infringe any 
trademark right, copyright or any other intellectual property right (IPR). In August 2010, the Register of Owners of Intellectual Property Ri ghts was created in order to back up operations 
by the DGA relating to protection of trademarks and copyright.
275 Owners of IPRs protected by 
national or international legislation applied by the Dominican Republic may be registered in this Register. At the border, the DGA may suspend clearance of allegedly counterfeit, pirated or misleading goods in accordance with the legislat ion on the protection of copyright and related 
rights and trademark rights. 
3.3.5.3  Participation in the WTO 3.169.  The Dominican Republic notified its intellectual property legislation in 2002
276, which was 
examined by the TRIPS Council that same year.277 The Dominican Republic has not submitted any 
further notification since then and therefore the amendments to the principal laws are pending. The Dominican Republic accepted the Protocol amending the TRIPS Agreement in May 2013.
278 
The Protocol confirms the decision adopted by Members in 2003 specifying the possibility of 
extension under certain circumstances to allow a Member to produce pharmaceuticals under a compulsory licence and to export them to countries without any production capacity.
279 
The Protocol is due to enter into force for the Do minican Republic after it has been accepted by 
                                               
271 Article 81 of Law No. 20-00. 
272 Article 21 of Law No. 65-00, amended by Article 36 of Law No. 424-06. 
273 In this connection, the authorities have indicated that, pursuant to Article 2 of Law No. 424-06, in 
the Dominican Republic the term of a patent is 20 years, in principle not renewable, although it can be renewed under certain conditions, once only and for a peri od that is usually up to a maximum of three years. 
274 Following signature of the CAFTA- DR, the Dominican Republic had to adapt its legislation, which led 
to the 2006 amendments to the industrial property and copyright laws. 
275 General Rule No. 01-10 issued by the DGA on 4 August 2010. 
276 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, 
of 30 April 2002. 
277 WTO documents IP/Q/DOM/1, IP/Q2/DOM/1, IP/Q3/ DOM/1 and IP/Q4/DOM/1, of 25 February 2002. 
278 WTO document WT/Let/884 of 30 May 2013. 
279 WTO documents WT/L/540 of 2 September 2003 and WT/L/540/Corr.1 of 29 July 2005. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 85 - 
 
  two thirds of the Members. The original time limit was fixed at 1 December 2007, but was 
extended up until 31 December 2015.280 
3.170.  Under the Doha Round, the Dominican Republic plays an active role in the discussions on 
reforms regarding the protection of IPRs. Together with other Members, it has put forward 
proposals on issues such as the extension of protec tion of geographical indications to all products, 
and incorporation of the requirement to disclose the origin of genetic resources and traditional knowledge in relation to patents.
281 The Dominican Republic is also co-sponsor of the proposal on 
the establishment of a database for geographical indications of wines and spirits.282 
3.171.  Since 1995, the Dominican Republic has been a complainant once (in 2012) and 
a third party five times (in 2000 and 2012) in cases concerning the TRIPS Agreement examined under the WTO dispute settlement mechanism. With one exception (in 2000), they all concerned 
the case brought against Australia in relation to the plain packaging of tobacco.
283 The Dominican 
Republic has never been a defendant in ma tters relating to the TRIPS Agreement. 
3.3.5.4  Participation in other international initiatives 
3.172.  The Dominican Republic has signed 13 WIPO-administered treaties.284 In 2010, it ratified 
the Trademark Treaty, signed in 1994285, but has not yet ratified the Singapore Treaty, 
signed in 2006, or the Marrakesh Treaty to Facilitate Access to Published Works for Persons Who 
Are Blind, Visually Impaired or Otherwise Print Disabled, signed in June 2013. 
3.173.  Furthermore, all the trade agreements  signed by the Dominican Republic contain 
provisions on IPRs, except for that with Pa nama. Only the CAFTA-DR, however, contains 
substantive commitments on all categories of in tellectual property and enforcement procedures, 
which has resulted in numerous changes to the legislation and shaped the Dominican Republic's 
current intellectual property regime. Among these,  mention should be made of the amendments 
relating to protection of test data and infringement of intellectual property rights, copyright, 
trademarks or authors' rights and patents. 
 
                                               
280 WTO document WT/L/899 of 26 November 2013. 
281 WTO documents TN/C/W/52 of 19 July 2008, WT/GC/W/590 of 28 May 2008 and TN/C/W/59 of 
19 April 2011. 
282 WTO document TN/IP/W/10/Rev.4 of 31 March 2011. 
283 DS434, DS435, DS441, DS458, DS467: Australia — Certain Measures concerning Trademarks and 
other Plain Packaging Requirements Applicable to Tobacco Products and Packaging ; various complainants. 
284 These are: (1) the Madrid Agreement on Indicati ons of Source; (2) the Rome Convention; (3) the 
Berne Convention; (4) the WIPO Convention; (5) the Conven tion for the Protection of New Varieties of Plants 
(or UPOV Convention); (6) the Paris Convention; (7) the Budapest Treaty; (8) the Patent Cooperation Treaty; 
(9) the WIPO Copyright Treaty; (10) the WIPO Perfo rmances and Phonograms Tr eaty; (11) the Marrakesh 
Treaty to Facilitate Access to Publ ished Works for Persons Who Are Blind, Visually Impaired or Otherwise Print 
Disabled; (12) the Singapore Treaty; and (13) the Trad emark Treaty. The list of WIPO-administered treaties 
signed by the Dominican Republic can be viewed at: http://www.wipo.int/treaties/es/ShowResults.jsp?country 
_id=49C . 
285 This Treaty was ratified by Resolution No. 40-10 of 25 February 2010 and came into force on 
13 December 2011. WT/TPR/S/319/Rev.1 • Dominican Republic 
- 86 - 
 4  TRADE POLICIES BY SECTOR 
4.1  Agriculture 4.1.1  General characteristics 4.1.  During the review period, the agricultural sector in the Dominican Republic continued to 
decline in relative importance, although at a slower pace than in previous periods. Its share of 
current GDP was 5.6% in 2014, as compared with 6.4% in 2008. The authorities have pointed out that this is consistent with the general pattern of the Dominican economy, where certain sectors, 
particularly those involving services, have performed very strongly, outstripping agriculture. 
4.2.  The real value added of the agricultural sect or, including forestry and fishing, increased at an 
annual average rate of around 6.3% between 2008 and 2013. 
4.3.  The value of agricultural production rose from RD$23,435.5 million in 2008 to 
RD$31,825.9 million in 2013.
1 The main agricultural products include rice, bananas, tomatoes and 
so-called traditional export crops: sugar cane, coffee, cocoa and tobacco. The main livestock activities are chicken meat, egg and beef production (Table 4.1). Sugar production in the 
2012-2013 season amounted to 555,601 tonnes, or 1,884 tonnes more than the 2011-2012 
harvest, which yielded 553,717 tonnes.
2 
Table 4.1 Composition of agricultural GDPa, 2008-2013 
(RD$ million, period 2008-2013) 
 
2008 2009 2010 2011 2012 2013 Growth rate, 
annual average 
2008-2013 (%)  
Total agricultural sector 23,436 26,354  27,794  29,309  30,506  31,826 6.31 
Rice 1,704 1,857  2,007  1,856  1,717  1,865 1.82 
Traditional export cropsb 2,277 2,380  2,270  2,289  2,511  2,268 -0.8 
Other crops  5,871 7,967  8,622  9,691  10,586  11,460 14.31 
Livestock, forestry and fishing  13,583 14,150  14,895  15,474  15,692  16,233 3.63 
a  GDP in chained values, base year 1991. 
b  The traditional export crops in clude coffee berries, cocoa beans, tobacco and sugar cane products. 
Source:  Office of Agricu ltural Trade Agreements. 
4.4.  Despite its smaller share of GDP, the import ance of the agricultural sector as a generator 
of employment increased during the review period. In 2008, the sector was the country's 
fourth largest source of employment after "o ther services", wholesale and retail trade, 
and manufacturing. That year it employed 522,45 4 people or 12.3% of the total broadly defined 
economically active population. In 2013, agricult ure was the third largest source of employment, 
providing work for 580,969 people, still 12.3% of the broadly defined economically 
active population. 
4.5.  During the review period, the agricultural sector continued to receive support through various 
measures, including an average tariff higher than that for the economy as a whole. The volumes of 
chicken imports were well below the volume bound at the WTO, while in 2012 and 2013 the quotas 
for rice imports at the WTO quota rate were less than the volume bound. Sugar may only be imported if there is a shortfall in domestic production. 
                                               
1 Information provided by the authorities. Available on the website of the Central Bank of the Dominican 
Republic, " Estadísticas económicas: sector real ". Viewed at: http://www.bancentral.gov.d o/estadisticas.asp?a= 
Sector_Real . 
2 INAZUCAR (2014). WT/TPR/S/319/Rev.1 • Dominican Republic 
- 87 - 
 4.1.2  Institutional and policy framework 
4.6.  The Ministry of Agriculture3 is responsible for policy formulation and direction in the 
agricultural sector. The institutional and legal environment was established by Law No. 8 of 1965, 
which created what is now the Ministry, Law No . 4.990 of 1958, establishing the mechanisms 
necessary to regulate plant health, and Law No. 4.030 of 1955, establishing the mechanisms 
necessary to regulate animal health. Where the le gislation is concerned, no changes were made 
during the review period, except with regard to plant and animal health. During the period 
2008-2013, 7 statutes relating to animal health, 15 relating to plant health and 3 relating to food 
safety were approv ed (Table A4.1). 
4.7.  The Ministry of Agriculture is composed of  four Vice-Ministries, eight regional offices, 
a Directorate-General of Livestock and several subo rdinate entities, including the Agricultural Bank 
and the Dominican Agricultural Institute. The institutional changes that took place during the 
review period include the establishment of: (a) the Department of Organic Farming (DAO) of the Ministry of Agriculture (attached to the Vice-Ministry of Agricultural Extension and Training), 
under Resolution No. 18-2013; (b) the Department of Risk Management and Climate Change 
(attached to the Vice-Ministry of Agricultural Sector Planning), under Resolution No. 34-2011; 
and (c) the Directorate-General of Agricultural Risk (DIGERA), attached to the Office of the 
Minister of Agriculture, under Law No. 157-09. The National Council for Agriculture (CNA) 
is responsible for coordinating the joint action of the institutions that make up the agricultural sector.
4 In accordance with Decree No. 454-98, th e CNA is chaired by the Minister of 
Agriculture and advises the Ministry on the formulation of policy on agricultural, livestock and 
natural resources development, while providing su pport for agricultural programmes and projects. 
4.8.  The administration of WTO tariff quotas is the responsibility of the Commission for 
Agricultural Imports, which is composed of the Minister of Agriculture, who takes the chair, 
the Minister of Industry and Trade and the Dire ctor-General of Customs. The Vice-Ministry of 
Agricultural Sector Planning of the Ministry of Agriculture acts as the Commission's Executive Secretariat, with the administrative support of th e Office of Agricultural Trade Agreements (OTCA). 
T h e  O T C A  i s  t h e  d e p a r t m e n t  o f  t h e  M i n i s t r y  of Agriculture responsible for negotiating, 
implementing and administering commitments ente red into under agricultural trade agreements, 
notably, the WTO Agreement on Agriculture and the Free Trade Agreement between the 
United States, Central America and the Dominican Republic (CAFTA-DR). The OTCA also acts as 
the Executive Secretariat for the Commission for Agricultural Imports (see below) as regards 
the allocation and administration of CAFTA-DR tariff quotas, in coordination with the Directorate-General of Customs (DGA). The OTCA also provides the Executive Secretariat for the 
National Committee for the Application of Sanitary and Phytosanitary Measures (CNMSF).
5 
4.9.  The Dominican Sugar Institute (INAZUCAR) is the State body responsible for recommending 
measures to the Government on every aspect of national sugar policy and for overseeing 
compliance with those measures.6 The Dominican Coffee Council (CODOCAFE), a joint and 
decentralized autonomous body, is responsibl e for designing, planning and implementing 
Dominican coffee policy and cooperates with the Mi nistry of Agriculture and other agricultural 
sector institutions.7 The National Council for Agriculture and Forestry Research (CONIAF), 
a decentralized government institution, is in charge of the National Agricultural and Forestry 
Research System (SINIAF) and through its research fund offers financing for building scientific and 
technological capacity in public and private institutions.8 The National Livestock Production Council 
(CONAPROPE) advises the Government and government institutions on matters relating 
to livestock.9 
                                               
3 The Secretariat of State for Agriculture (SAE) became the Ministry of Agriculture in 2010. 
Decree No. 56-10 of 6 February 2010. 
4 Law No. 8 of 8 September 1965. 
5 Article 1 of Decree No. 515-05 and its implementing Regulations, approved on 29 May 2007, 
and online information from the OTCA. Viewed at: http://otcasea.gob.do/?page_id=65 . 
6 Law No. 618 of 16 February 1965 and online information from INAZUCAR. Viewed at: 
http://www.inazucar.gov.do/quienes_somos.htm . 
7 Law No. 79-00 of 25 September 2000. 
8 Online information from CONIAF. Viewed at: http://www.coniaf.org.do . 
9 CONAPROPE was established by Decree No. 351 of 16 October 1982. WT/TPR/S/319/Rev.1 • Dominican Republic 
- 88 - 
 4.10.  Sectoral policy has five strategic goals: (a) to institutionalize and/or consolidate the process 
of reform and modernization of the sector; (b) to improve its productivity and competitiveness; (c) to promote agricultural exports; (d) to boost the production of products for domestic consumption and strengthen internal marketing mechanisms; and (e) to develop rural 
infrastructure and services. In this connection, and within the context of this review, 
the Dominican authorities have pointed out that the agricultural sector support programmes implemented during the period 2007-2013 were primarily concerned with improving the sector's 
productivity and competitiveness and the quality and safety of agricultural produce. Development 
and support policies and initiatives for deriving gr eater benefit from international trade have also 
been implemented. To this end, during the peri od 2008-2013, the Government continued to invest 
in programmes for promoting crop and livestock production, assistance and technology transfer, 
animal and plant health, and research. 
4.1.3  Policy instruments 4.1.3.1  Border measures 
4.11.  The average MFN tariff rate applied to agriculture (ISIC definition) was 11.0% in 2014, 
slightly higher than the 10.7% recorded in 2008; the difference can be partly attributed to the change in tariff nomenclature. The average tariff applied to agriculture is 3.4 percentage points 
higher than the average for the manufacturing sect or (Section 3.1.4). The average tariff based on 
the WTO definition of agriculture was 14.2% in 2014, the same as in 2008. 
4.12.  In 1998, within the context of the renego tiation of its Schedule of Commitments under 
Article XXVIII of the GATT 1994, the Dominican Republic agreed to grant tariff quotas for imports 
of chicken meat, maize (corn), dried beans, ga rlic, onions, powdered milk, rice and sugar.
10 
In 2000, the Dominican Republic notified the WTO about the administration of these tariff quotas.
11 Since then, it has regularly been notifying imports of products subject to tariff quotas, 
most recently in February 2014.12 
4.13.  As shown in Table 4.2, the level of the MFN tariffs applied to the products subject to tariff 
quotas ranges between 40% and 99% (out-of- quota) and between 0% and 25% (in-quota). 
The annual average volumes imported at in-quota tariff rates during the period 2008-2012 
exceeded WTO bound volumes for four types of  products: garlic, onions, beans and sugar, 
whereas they were slightly below quota in the case of rice, maize (corn) and powdered milk (Table 4.2). Chicken meat continued to be the exception: the mean rate of utilization was on 
average 12.4% over the period 2008-2012, since domestic chicken production was able to meet 
most of the demand. 
4.14.  With the exception of sugar, responsibility  for administering tariff quotas rests with the 
Commission for Agricultural Imports. In the case of sugar, the Commission administers 30% of the 
quota (9,000 tonnes) in coordination with INAZUC AR, which is responsible for administering the 
remaining 70% (21,000 tonnes).
13 
4.15.  Decree No. 505-99 of 24 November 1999 governs the application of WTO tariff quotas. 
This Decree was recently amended by Decree No. 569-12 of 11 September 2012. Decree No. 505-99 authorized the Commission for Agricultural Imports, in cases of crisis, scarcity or a shortfall in domestic production, to increase the maximum level established for tariff quotas and, 
moreover, to determine the cases in which such an increase in quotas need not be accompanied 
by a corresponding increase in tariffs. 
                                               
10 WTO document G/MA/TAR/RS/54 of 3 November 1998. 
11 WTO document G/AG/N/DOM/6 of 4 February 2002. 
12 WTO document G/AG/N/DOM/22 of 4 February 2014. 
13 Decree No. 569-12 of 11 September 2012. WT/TPR/S/319/Rev.1 • Dominican Republic 
- 89 - 
 Table 4.2 Products included in MFN tariff quotas, 2008-2012 
(Tonnes and %) 
Product and HS heading  Applied MFN tariff rate 
(%) Bound tariff rate (%) 
Bound quota 
volume  
Average 
utilization rate 
(%) 
2008-2012a In-quota 
Out-of-quota 
In-quota 
Out-of-quota 
Chicken meat (0207.10, 
0207.21, 0207.41) 25 99 25 99 11,500 12.4 
Powdered milkb (0402.10, 
0402.21, 0402.29) 20 56 20 56 32,000 87.5 
Onions  (0703.10.00)  25 97 25 97 3,750 319.9 
Garlic (0703.20.00)  25 99 25 99 4,500 145.0 
Dried beans  (0713.31, 0713.32, 
0713.33) 25 89 25 89 18,000 127.2 
Maize (corn)  (1005) 0 0 5 40 1,091,000 95.9 
Rice     17,810 93.8 
1006.10.00 14 99 20 99   
1006.20.00 20 99 20 99   
Sugar     30,000 178.2 
1701.11.00 14 85 20 85   
1701.12.00, 1701.91.00, 
1701.99.00 20 85 20 85   
a The utilization rate is the actual import volume divided by the bound import quota. 
b Trading partners with reserved  access: European Union (70%), New Zealand (15%), other (15%). 
Source: WTO documents G/AG/N/DOM/17 of 22 July  2009 and G/AG/N/DOM/22 of 4 February 2014, and 
information provided by the authorities. 
4.16.  During the review period, the method of administering WTO tariff quotas was changed. 
Up until August 2012, quotas were assigned using the simultaneous examination method, 
which consisted in assigning the in-quota volume proportionally to importers who submitted an 
application not later than two months before the commencement of imports of the product in question.
14 The Commission for Agricultural Imports had to publish details of the awarding of 
import volumes in a national newspaper for each product subject to a tariff quota. Once tariff 
quotas had been allocated, the Commission issued  the corresponding import certificates through 
the Department of Agricultural and Livestock Promotion of the Secretariat of State for Agriculture 
(SAE). 
4.17.  Since September 2012, by virtue of De cree No. 569-12, there has been a change in the 
method of administering the tariff quotas of products included in the Technical Rectification of the Dominican Republic's Schedule XXIII. The new method of allocation is that of public auctions 
organized by the Agribusiness Exchange of the Do minican Republic (BARD), as ordered each year 
by the Commission for Agricultural Imports.
15 Decree No. 569-12 establishes a system of 
non-automatic import licences for awarding import quotas for seven of the Technical Rectification 
products, within the framework laid down in the WTO Agreement on Import Licensing Procedures, 
subject to the requirement to ensure that the licences do not have restrictive effects on the imports subject to them. For maize (corn) there is a system of automatic import licences for 
awarding the quota, based on historical import statistics recorded by the DGA and the OTCA. 
The authorities have pointed out that, in practice, historical import statistics are not being used for awarding maize (corn) quotas and that all applic ations are being approved and the corresponding 
import permits issued. It has to be verified that the charges generated by services costs arising 
out the auctions remain within the tariff binding level. 
                                               
14 Articles 5 and 7 of Decree No. 505-99. 
15 The BARD is a company affiliated with the Dominican Agribusiness Board, Inc. (JAD). Established 
under the Securities Market Law No. 19-00 and its implementing Regulations No. 729-04, it commenced 
operations in June 1997 under Decree No. 386-97 of 4 September 1997. The BARD was registered and 
authorized to operate by the Securities Supervisory Au thority (SIV), thereby strengthening the agricultural 
marketing process and making it more transparent and re liable and reducing intermediation, for the benefit of 
producers and consumers. Online in formation from the BARD. Viewed at: http://bard.jad.org.do . WT/TPR/S/319/Rev.1 • Dominican Republic 
- 90 - 
 4.18.  By November 2014, the BARD had held licen ce auctions for a total of RD$441,300 million. 
In 2012, it held: (a) one for onions in Septembe r (for RD$56.3 million); (b) one in November for 
powdered milk, dry pigeon peas, white beans, pinto beans, black beans, white onions and yellow onions, for a total of RD$63.3 million; and (c) on e in December for pinto beans, red onions and 
powdered milk, for a total of RD$10.7 million. Moreover, in 2013 it held: (a) one auction in May for 
powdered milk, for RD$17.6 million; (b) one in July for white onions, powdered milk, yellow onions, black beans, white beans, pint o beans and dry pigeon peas, for a total of 
RD$102 million; and (c) one in November for powdered milk, red onions, red beans and white 
onions, for a total of RD$25.5 million. In addition, in 2014 the BARD held four import licence auctions for a series of products from the basic basket: one in September for powdered milk (3,800 tonnes) and yellow onions (10,710 quintals) for a total of RD$30.8 million; one in October 
for sugar (9,000 tonnes), yellow onions (19,530 quintals) and white beans (5,000 quintals), 
for a total of RD$45.3 million; and two auctions in November, in each case for 30,000 quintals 
of red onions, for a total of RD$89.8 million.
16 
4.19.  SAE Resolution No. 24/2006 prohibits the Commission for Agricultural Imports from 
"granting or refusing import licences on the basis of sanitary or phytosanitary concerns, domestic purchase requirements or discretionary criteria".
17 
4.20.  By virtue of Decree No. 569-12 of 11 September 2012, INAZUCAR, working in coordination 
with the Commission for Agricultural Imports and the BARD, is responsible for administering the tariff quota for sugar, which is distributed as follows: up to a ceiling equivalent to 70% of the quota for the producers, with the remaining 30% being auctioned on the BARD for the commercial 
sector.
18 Sugar imports must be approved by INAZUCAR, in a resolution of its Board of Directors, 
if it can be shown that available stocks of domestically produced sugar are insufficient to meet the domestic demand, after fulfilment of the export quota for the preferential United States market. 
The in-quota tariff rate is applied to authorized sugar imports. 
4.21.  INAZUCAR may decide not to import sugar in a particular year if it does not consider it 
necessary. In fact, in the case of the 2012-2013 su gar season, INAZUCAR's Board of Directors did 
not consider it necessary to approve the importation of raw sugar, because production stocks were 
sufficient to meet the domestic demand, due mainly to a reduction of 46,424 tonnes in exports to the international market as compared with th e previous season and underutilization of the 
preferential quotas. In fact, out of the 180,248 tonnes assigned to the preferential markets of 
the United States and the European Union for the season 2012-2013 only 162,432 tonnes 
were taken up.
19 
4.22.  INAZUCAR prepares Multiannual Plans, within which Operating Plans are drawn up for each 
year. The Operating Plan for 2014 is aimed at meeting the domestic demand for sugar and 
molasses and fulfilling the quota for exports to the various international markets, while improving the technical aspects of the production of sugar cane and its byproducts. Accordingly, 
its objectives include a harvest of 4.99 million tonnes of cane for milling, the production of 
541,750 tonnes of raw sugar and the production of 34.9 million US gallons of molasses. 
4.23.  The Dominican Republic also applies tariff quotas to imports of agricultural products from 
some of its preferential partners. Decree No. 705-10 of 14 December 2010 governs the 
administration of the tariff quotas applied under  the CAFTA-DR The quotas established by the 
CAFTA-DR are additional to the WTO bound volumes. Quotas are applied to products from the United States, Nicaragua and Costa Rica (Table 4.3). Any Dominican natural or legal person may 
apply for a share of the quotas. In assigning volumes, three main factors are taken into account: 
the history of total imports of the good originating in the CAFTA-DR cosignatories made by the applicant during the last three consecutive years prior to the calendar year in which the 
tariff quota is available; the quantities applied for, provided they are commercially feasible; 
and the quantities available for traditional and new importers in the corresponding calendar year. 
                                               
16 Online information from the BARD. Viewed at: http://bard.jad.org.do . 
17 Article V of SAE Resolution No. 24/2006 of 22 November 2006. 
18 Article 7 of Decree No. 569-12 and INAZUCAR (2014). 
19 INAZUCAR (2014). WT/TPR/S/319/Rev.1 • Dominican Republic 
- 91 - 
 Table 4.3 Tariff quotas availabl e for 2015 under the CAFTA-DR 
(Tonnes and %)  
Products  HS headings  Quota volume In-quota tariff (%) 
United States  
Bovine meat 
(prime and select cuts)   0201.20.10, 0201.30.10, 
0202.20.10 2,000  0 
Beef, in irregular pieces, 
boneless  0202.30.10 400  0 
Pork cuts  0203.11.00, 0203.12.00, 
0203.19.00,0203.21.00, 
0203.22.00, 0203.29.10, 
0203.29.90 7,500  0 
Chicken thighs  0207.14.92 1,000 0 
Poultry meat  0207.26.12, 0207.27.10, 
0207.27.92, 0207.27.93 7,000  0  
Powdered milk  0402.10.00, 0402.10.90, 
0402.21.10, 0402.21.90, 0402.29.10, 0402.29.90 5,400  0 
Mozzarella cheese  0406.10.10 250  0 
Cheddar cheese  0406.90.20 250  0 
Ice cream, whether or not 
containing cocoa  2105.00.00 300  0 
Yogurt  0403.10.00 200  0 
Rice, hulled (brown) 1006.20.00 3,400  0 
Rice, semi-milled or wholly 
milled, whether or not polished or glazed  1006.30.00 13,600  0 
Beans  0713.31.00, 0713.32.00, 
0713.33.00 13,600  0 
Glucose  1702.30.21 2,400  0 
Pig fat (including lard), rendered  1501.00.10 1,000  0 
Nicaragua  
Chicken breasts  0207.13.91, 0207.14.91 443  10 
Onions and shallots  0703.10.00 375  7.5 
Beans  0713.31.00, 0713.32.00, 
0713.33.00 1,800  0  
Costa Rica  
Chicken breasts 0207.13.91, 0207.14.91 2,070  12.5 
Powdered milk  0402.10.00, 0402.10.90, 
0402.21.10, 0402.21.90, 0402.29.10, 0402.29.90 2,200 0 
Source:  Commission for Agricultural Imports. Convocatoria – Contingentes Arancelarios 2015. 
4.24.  Unused or returned quotas are announced and a new invitation is issued. This is published 
on the OTCA web page. 
4.25.  The Dominican Republic has not reserved  the right to apply the special agricultural 
safeguard for which the WTO Agreement on Agriculture provides. However, there is a special agricultural safeguard (SAS) within the context of the CAFTA-DR.
20 The SAS is activated from a 
certain import volume, starting from which the product is subject to the MFN tariff. The list of 
products subject to the SAS is published annuall y by the OTCA on its website. The products 
subject to the SAS in 2014 are listed in Table 4.4. 
                                               
20 Under the CAFTA-DR the Dominican Republic appl ies the SAS mechanism to a list of products 
originating exclusively in the United States (see Annex 3.15 to the CAFTA-DR and Article 1 of Decree No. 535-06). WT/TPR/S/319/Rev.1 • Dominican Republic 
- 92 - 
 Table 4.4 Special agricultural safeguard (SAS) CAFTA-DR, 2014 
(Tonnes and %) 
Products  HS headings Quota volume  SAS 
activation 
volume Tariff applicable 
when SAS is 
activated (%) 
Pork cuts  0203.11.00, 
0203.12.00, 0203.19.00, 0203.21.00, 0203.22.00, 
0203.29.10, 
0203.29.90 7,000  9,100 25.0 
Chicken thighs  0207.14.92 950 1,235 99.0  
Poultry meat  0207.26.12, 
0207.27.10, 0207.27.92, 0207.27.93 6,650 8,645 25.0 
   
 0272.71.90    
12.5 
Powdered milk  0402.10.00, 
0402.10.90, 
0402.21.10, 
0402.21.90, 
0402.29.10, 
0402.29.90 5,130  6,669 56.0  
Mozzarella cheese  0406.10.10 238 309 20.0  
Cheddar cheese  0406.90.20 238  309 17.0  
Other cheeses  0406.10.90, 
0406.12.00, 0406.30.00, 0406.40.00, 0406.90.10, 
0406.90.30, 
0406.90.90 238 309 11.0 
Beans  0713.31.00, 
0713.32.00, 
0713.33.00 13,040  16,952 75.65  
Potatoes, fresh  0701.90.00 N/A 643 12.5 
Onions  0703.10.00 N/A 1,608 82.45 
Garlic  0703.20.00 N/A 107 84.15 
Rice in the husk and broken rice  1006.10.00, 
1006.40.00 N/A 1,501 99.0 
Rice, hulled (brown)  1006.20.00 3,400  4,238 99.0  
Rice, semi-milled or wholly milled, 
whether or not polished or glazed  1006.30.00 13,600  16,952 99.0  
Glucose  1702.30.21 2,400  2,964 8.75  
Vegetable oils  1507.90.00, 
1512.29.00, 
1515.29.00, 
1517.10.00 N/A 6,859 17.0  
Corn syrup, with a high fructose 
content  1702.60.21, 
1702.60.29 N/A 107 17.0 
 
1702.50.00, 1702.60.10    
11.9 
N/A No quota applied. 
Source: Office of Agricultural Trade Agr eements. CAFTA-DR Special Safeguard 2014. 
4.26.  In 2004, exports of cocoa beans and cocoa bean products were subject to a "solidarity tax" 
of RD$4 per kilo (approximately US$117 per tonne). The authorities have pointed out that this 
measure was mutually agreed with the representati ves of the private sector and then approved by 
the National Cocoa Commission, which is chaired by the Minister of Agriculture. The tax is currently RD$0.50 per kilo. WT/TPR/S/319/Rev.1 • Dominican Republic 
- 93 - 
 4.1.3.2  Export subsidies 
4.27.  The Dominican Republic has notified the WT O that it did not grant any export subsidies for 
agricultural products during the period 2007-2012.21 
4.1.3.3  Domestic support 
4.28.  The Dominican Republic has regularly notified its domestic support measures to the WTO. 
Its latest notification concerning domestic support relates to 2012.22 In that year, domestic 
support amounted to RD$2,493.6 million (about US $58 million). Of this support: (a) 76% was for 
marketing services, in particular programmes for promoting the production of rice and other 
agricultural crops and increasing productivity; (b) 11.4% was for agricultural research (of which 81% went to the Dominican Agricultural and Forestry Research Institute (IDIAF) and the rest to the CONIAF); (c) 7.1% was for plant and animal health and inspection services; (d) 3.4% was for 
training services; (e) 1.7% for agricultural exte nsion services; and (f) 0.4% for infrastructure 
services. During the period 2008-2011, average annual domestic support was around 
RD$2,172 million (about US$50.5 million).
23 The Dominican Republic classified all the domestic 
support notified during that period  as falling within the green box. 
4.29.  In the General State Budget for 2014, public expenditure on the agricultural sector totalled 
RD$7,790 million (some US$180 million) or 1.6% of total public expenditure, below the 2.4% cited 
in the previous report for 2007.24 
4.30.  The Dominican Republic continues to apply the National Rice Pledging Programme, 
established by SAE Provisional Resolution No. 31-05 of 2 June 2005. That Resolution also created the Executive Unit for Pledges (UEPI) as the tec hnical and managerial agency responsible for the 
implementation of the programme, whose internal organization was approved by SEA Resolution 
No. 37-05 of 6 July 2005. The following participat e in the National Rice Pledging Programme: 
the State through the Ministry of Agriculture, the National Rice Commission (CONA), 
the UEPI, millers, commercial banks and financial institutions, officially authorized warehouses and 
insurance companies. 
4.31.  According to the authorities, the fundamental purpose of the National Rice Pledging 
Programme is to guarantee the stability of the rice market and achieve acceptable rates of return 
for participants in the rice subsector. The pledge consists in temporarily withdrawing any excess rice from the market to prevent an oversupply th at could depress selling prices. The authorities 
consider that this mechanism makes it possible to guarantee stable prices for the consumer and 
fair profit margins for the producers and millers or processors, and to promote the development of 
the subsector so as to be able to increase production until the domestic demand for rice can be fully met.
25 The States helps millers who choose to benefit from the programme with three 
contributions which make it possible partially to cover: (i) the interest on loans negotiated by the 
millers with financial institutions, (ii) the miller's storage costs and (iii) the cost of insuring the stocks stored. The programme is financed by co ntributions from the State and the millers who 
choose to benefit from the programme, with the latter contribution amounting to 0.5% of the 
amount of the loan agreed with the commercial bank. An important participant in the programme is the Reserve Bank of the Dominican Republic, which has allocated RD$5,000 million (US$116.3 million) for financing the 2014-2015 National Rice Pledging Programme.
26 
4.32.  For the purpose of implementing the Programme, in March of each year, the millers and 
producers negotiate a price band (consisting of a floor price and a ceiling price) within the framework of the CONA. Once the private sector  players have reached agreement on the price 
                                               
21 WTO documents G/AG/N/DOM/16 of 21 August 2008, G/AG/N/DOM/19 of 22 July 2009, 
and G/AG/N/DOM/21 of 15 August 2013. 
22 WTO document G/AG/N/DOM/23 of 5 February 2014. 
23 WTO documents G/AG/N/DOM/18 of 4 September 2009 and G/AG/N/DOM/20 of 5 July 2012. 
24 General State Budget Law for 2014. Viewed at: http://www.senado.gob.do/senado/Portals/0/ 
Documentos/Proyectos%20de%20Leyes/presupuesto2014.pdf . 
25 National Rice Pledging Programme. Viewed at: http://www.agricultura.gob.do/media/SyncCMSMedia/ 
3430/Programa-Nacional-Pignoracion-Arroz-2005.pdf . 
26 Online information from the Ministry of Agriculture, " Banco de Reservas asigna RD$5.000 millones 
para el programa de pignoración de arroz ". Viewed at: http://www.agricultura.gob.do/noticias/2014/04/banco-
de-reservas-asigna-rd$5-mil-millones-para-el-progra ma-de-pignoracion-de-arro z-/#sthash.UvTT0c8z.dpuf . WT/TPR/S/319/Rev.1 • Dominican Republic 
- 94 - 
 band, the CONA issues a resolution indicating, inter alia , the maximum volume of rice that can 
benefit from the programme for the year in question. The interest rate to be covered by the State under the programme is also announced each year. Millers are free to take out loans with any commercial bank. To benefit from the programme, the miller must obtain a rice warehousing 
certificate from a warehouse keeper in order to be able to apply for a loan from the commercial 
bank. The latter takes out insurance to guarantee the warehousing certificate with cover equivalent to the rice valued at the floor price of the price band and proceeds to grant the miller a 
loan for an amount equivalent to 80% of the value of the rice deposited in the warehouse. 
As already mentioned, the State pays part of the interest, the insurance and the warehousing costs. The programme lasts for seven months and, as rice is released, the stocks diminish and the government support for the millers decreases proporti onately. The stored rice is released once the 
principal of the loan has been paid off; it may be that only part of the loan is paid off, in which 
case only a corresponding proportion of the stored rice is released. 
4.33.  Within the context of the previous review , the authorities pointed out that the programme 
formed part of agricultural marketing policy an d constituted a support service with a minimum 
effect on production and trade, whose objective was to ensure that stocks were sufficient to achieve food security and to promote the developm ent of areas dedicated to the crops in question. 
However, the programme could distort the allocation of credit for investment, insofar as it favours 
one sector in particular by covering part of its financial costs. 
4.34.  The State also supports agricultural produc tion by distributing seed, providing mechanized 
soil preparation services and maintaining irrigati on systems. In 2008, the producers of dairy 
products benefited, for some months, from th e Programme of Direct Support for Livestock 
Farmers; these farmers received RD$3 for every litre of milk they produced.
27 This programme 
was implemented up until the end of 2008. 
4.1.3.4  Other measures 
4.35.  Under Law No. 526 of 11 December 1969 establishing the National Price Stabilization 
Institute, the latter is authorized to regulate the prices of agricultural products. However, at the 
end of 2014 the Institute was not setting the price of any product. The National Rice Commission 
sets the price at which rice is purchased from the producer. INAZUCAR sets the price caps for 
various kinds of sugar intended to be sold on the domestic market for direct consumption or industrial use.
28 For 2014, the prices for soft brown sugar sold by the producer to the wholesaler 
were set at RD$1,300 per 100 lbs; the prices charged by the wholesaler to the retailer at 
RD$1,430 per 100 lbs; and the prices charged by  the retailer to consumer at RD$1,600 per 
100 lbs. For refined sugar, the corresponding prices were RD$1,500, 1,635 and 1,800, 
respectively. 
4.36.  Credit for the agricultural sector increa sed at an annual average rate of 14.1% between 
2008 and 2013. In 2013, sector credit amounted  to RD$29,555 million (about US$687 million). 
In 2013, 52.9% of the loan portfolio was held by full-service banks and 39.4% by the Agricultural 
Bank (Table 4.5). 
Table 4.5 Credit for the agricultural sector, 2008-2013 
(RD$ million) 
Year Full-service 
banks  Savings and 
loan 
associations Savings 
and 
credit 
banks Credit 
corporations National 
Bank for 
Housing & 
Industry Agricultural  
Bank Total  
2008 6,655.8  286.8 369.2  56.0 176.3  7,736.1  15,280.2 
2009 7,394.5  653.2 500.8  33.5 185.3  7,849.3  16,616.6 
2010 11,912.5  719.9 818.9  15.6 253.6  7,619.3  21,340.0 
2011 15,642.8  194.7 1,318.2  7.8 673.0  7,307.1  25,143.6 
2012 17,655.9  413.4 1,480.0  12.5 1,284.2  6,829.7  27,675.7 
2013 15,636.3  336.8 387.1  16.6 1,538.0  11,640.0  29,554.7 
Source:  Banking Supervisory Authority of the Dominica n Republic, Ministry of Ag riculture, Department of 
Agricultural Economy. 
                                               
27 This programme is based on SAE Provisional Resolution No. 28-2007 of 18 December 2007. 
28 Law No. 619 of 16 February 1965 and Dominican Sugar Institute Resolution No. 01-2006 of 
24 October 2006. WT/TPR/S/319/Rev.1 • Dominican Republic 
- 95 - 
 4.37.  The loans granted by the Agricultural Ba nk may be short-term (less than 12 months), 
medium-term (between 12 and 36 months) or long-term (more than 36 months), depending on the project and the growth cycle of the crop, its reasonable marketing period and/or the capacity 
of the activity for generating income. The funds come from own resources, central government, 
special programmes and other domestic or international sources, whether or not subject to 
contractual arrangements. Financing is provided for production, cultivation, marketing and the purchase of machinery and equipment. The interest rate applicable to the various products is 
established by the Executive Board, in accordance with market trends and sectoral policies. Where 
loans to be granted from public resources are concer ned, the interest rate is negotiated by taking 
into consideration the prevailing situation in the financial market and the institution's weighted average deposit rate.
29 
4.38.  In November 2013 the Reserve Bank signed  a financing agreement for RD$440 million with 
the Dominican Association of Banana Producers (ADOBANANO). 
4.39.  IDIAF is the main public agricultural research institution. CONIAF is responsible for the 
formulation of agricultural research policy. It provides financing for developing scientific and 
technological capacity in public and privat e institutions. Between 2009 and 2012 annual average 
public expenditure on agricultural research amounted to RD$229.5 million (some US$5.3 million).30 
4.2  Fishing 
4.40.  Despite its being part of an island, the Dominican Republic's fisheries resources are not very 
extensive. The authorities have noted that this is mainly due to the existence of very limited ocean resources and a very narrow coastal shelf. The Domi nican Republic's fisheries trade is in deficit. 
In 2013, 36,890 tonnes of fish were imported wher eas domestic production amounted to only 
13,189 tonnes. The main sources of imports are China, the United States, Thailand, Norway, 
Canada and India. In terms of value, imports of fishery products amounted to US$115 million 
in 2013. Exports are very limited (in general between 100 and 500 tonnes per year) and consist 
mainly of lobster, octopus and ornamental fish. In 2013, their total value was a mere US$2.8 million. The principal markets are the United  States, the European Union, the United Arab 
Emirates and Hong Kong, China. 
4.41.  Responsibility for formulating and implem enting Dominican fishing and aquaculture policy 
lies with the Dominican Fisheries and Aquacultur e Council (CODOPESCA), a body created by the 
Fisheries Law or Law No. 307-04 of 3 December 2004 and endowed with legal personality, 
administrative autonomy and independent assets.
31 CODOPESCA began functioning in 2008. 
The Fisheries Law applies to all activities relating to the exploitation and/or extraction of existing 
marine and aquatic biological resources, whether or not for profit, and its objective is to establish 
a sustainable fisheries system in the Dominican Republic. 
4.42.  Under the Law, fishermen, fishery product exploitation and marketing companies, vessels 
and fishing gear must be registered with CODOPE SCA. To engage in fishing a fishing licence is 
required. To obtain such a licence it is necessary to be a recognized fisherman of Dominican 
nationality. Fishing licences are valid for two years and may be renewed for successive periods of the same duration. As of February 2015, 5,689 commercial fishing licences had been issued throughout the territory of the Republic. There are no licences in effect for recreational or scientific 
fishing. Each licence specifies the fishing activity for which it is granted and the place of operations 
i n  w h i c h  t h a t  a c t i v i t y  m a y  b e  c a r r i e d  o u t .  T o  c h a n g e  o r  m o v e  t h e  p l a c e  o f  o p e r a t i o n s  i t  i s  necessary to apply to CODOPESCA for the appropri ate permit. The granting and renewal of fishing 
licences depend on the state of the resources to be exploited under the licence. Licence renewals 
are given priority over the granting of new li cences. The granting and the renewal of fishing 
licences are subject to the payment of a f ee. Fishing licences are non-transferable. 
4.43.  To be used for fishing, Dominican flag ve ssels must have a fishing boat permit granted by 
CODOPESCA. Applicants must show that they are natural or legal persons in possession of a valid 
                                               
29 Online information from the Agricultural Bank. Viewed at: http://www.bagricola.gob.do/images/ 
stories/documentos/informacion_institucion al/institucion/ba_politica_de_credito.pdf . 
30 WTO documents G/AG/N/DOM/20 of 5 July 2012 and G/AG/N/DOM/23 of 5 February 2014. 
31 Online information from CODOPESCA. Viewed at: http://www.codopesca.gob.do/2013-05-18-04-20-
07/quienes-somos-mision-vision . WT/TPR/S/319/Rev.1 • Dominican Republic 
- 96 - 
 fishing licence. Vessels must also be duly registered with the Navy of the Dominican Republic and 
have an up-to-date ship's passport. Fishing boat permits are valid for two years and renewable for successive periods of the same duration. Each pe rmit specifies the type of vessel concerned, 
its size and power, the fishing activities for which the permit is granted and the place of 
operations. Foreign vessels may obtain a permit to operate in the Dominican Republic, in which 
case they must be authorized by, or hold a document of "no objection" from, the Dominican Navy and the National Drug Control Directorate and be registered in a competent port authorized by 
both organizations. If the natural or legal persons that operate the foreign vessel are domiciled in 
the Dominican Republic, the fishing boat permit is granted under the same legal conditions as apply to domestic fishing boats. In this case, all the members of the crew mu st be domiciled in the 
Dominican Republic and the catches must be unloa ded and marketed in the country. If the boats 
belong to States with which the Dominican Republic has concluded an agreement or other fishing 
arrangements, the fishing boat permit will be gran ted on the conditions set out in that agreement. 
Otherwise, the Law provides for a fishing boat permit to be granted on the conditions established 
for each vessel by CODOPESCA, provided that the foreign vessel's activities do not injure 
Dominican fishing interests. 
4.44.  To engage in aquaculture it is necessary to have CODOPESCA's authorization. If the activity 
is carried out in an area that is publicly owned, then in addition to this authorization the necessary 
administrative licences must also be obtained, in accordance with the legislation in force. Applications for authorization must be accompanied by an environmental impact assessment. 
4.45.  The marketing of fish and fishery products requires a marketing licence. To obtain such a 
licence it is necessary to specify the type and quantity of the product and its provenance and route 
of entry, and to provide a commercial invoice and a copy of the certificate of origin and health certificate. Obtaining this licence is a first step towards obtaining the Certificate of 
No Objection for the Export/Import of Fishery Products (as appropriate) required to export or 
import the products in question. 
4.46.  In principle, exports of fish in its natural state are subject to an  ad valorem  tax of 0.5% and 
exports of molluscs and crustaceans in their natural state to an ad valorem  tax of 5%. Processed 
fish and shellfish, together with aquaculture products, may be exported tax free.
32 Moreover, as an 
incentive to produce and export, the Fisheries Law provides for commercially produced aquaculture or sea-farming products to be free of tax for five years and for fish caught at sea, if it receives any 
value added, to be free of tax for three years. However, according to the authorities, this tax has 
never been applied (Section 3.2.2). Imports of all fishery products, whether processed or not, pay a special single ad valorem  tax of 0.5%, which is used to support the development of CODOPESCA. 
4.47.  Decree No. 40-13 declares the sustainable development of fishing and aquaculture to be a 
matter of high national priority and transfers to CODOPESCA the Model Aquaculture Production Station (EMPA), the Puerto Viejo de Azua Pilot Marine Shrimp Production Project, the Samaná 
Fishery Development Centre and the Presa de Hati llo reservoir fish farm. The Decree also created 
the Revolving Fund for the Promotion and Deve lopment of Fishing to finance materials and 
equipment for fishing and aquaculture, which was to have been managed by CODOPESCA. However, to date, no funds have been allocated or any operation initiated. 
4.3  Energy 
4.3.1  Electricity
33 
4.48.  In September 2014, the Dominican electr icity subsector had an installed capacity of 
3,298 MW, which is insufficient to satisfy the demand. During the review period, about 20% of the 
annual demand of the national grid (SENI) remain ed unsatisfied (Table 4.6). Generation continues 
to depend primarily on imported fuel oil, which in 2014 accounted for 49% of generation. In the 
same year, natural gas was the source of 20% of generation, while coal and renewable energy 
sources accounted for 10% and 21%, respectively. 
                                               
32 For the purposes of the Fisheries La w, fish and shellfish are considered to have been processed if they 
have been salted, dried, dehydrated, filleted, smoked, cured, preserved in brine and/or vinegar and/or packed 
in tins or glass containers. All other forms of preparation of the marine  species in question are regarded as the 
natural state. 
33 This section is concerned with the national grid . Self-generators and isolated systems are excluded. WT/TPR/S/319/Rev.1 • Dominican Republic 
- 97 - 
 Table 4.6 Supply and demand in the national grid, 2008-2014 
 2008 2009  2010  2011  2012 2013 2014  
Installed capacity (MW) 2,918.2  2,962.6  2,959.6  3,002.5  3,313.6  3,743.6  3,393.7  
Generation (GWh) 
Fuel oil (%) 
Natural gas (%) 
Coal (%) 
Renewables (%) 
Hydro 
Wind 11,750.9 
50.2 
20.7 
17.3 
11.8 
11.8 
0.0 11,529.2  
51.4 
19.4 
16.6 
12.6 
12.6 
0.0 12,271.6  
46.0 
27.2 
15.1 
11.7 
11.7 
0.0 12,478.3  
43.1 
30.0 
14.8 
12.1 
12.0 
0.1 13,848.3 
40.7 
30.7 
15.2 
13.4 
12.9 
0.5 13,850.9 
46.0 
24.4 
14.5 
15.1 
13.4 
1.7 10,026.1  
49.0 
20.0 
10.0 
21.0 
18.0 
3.0 
Purchased (GWh) 11,145 10,950  11,773  12,242  13,102 13,546 9,835  
Demand (GWh) 13,267 13,838  14,577  15,175  15,714 16,032 12,389  
Purchased/demand (%) 84.0 79.1  80.8 80.7 83.4 84.5 79.4  
Source: Dominican Corporation of State-owned Electricity Companies (CDEEE) (2013), Plan Estratégico 
2013-2016, CDEEE (2014), Informe de Desempeño, Augu st, and data provided by the authorities. 
4.49.  The power supply crisis in which the Dominican Republic remains immersed "constitutes the 
main challenge for national economic development"34 and, in 2010, six out of every ten 
Dominican businessmen believed that the electricity issue was hampering their activities.35 
Electricity rationing is a longstanding systemic problem caused by: (a) a generating system heavily dependent on imported fossil fuels, whose rising prices have driven up costs; (b) frozen electricity 
tariffs that fail to cover the costs; (c) dependence on subsidies and the prevalence of generalized 
subsidies; (d) a lack of investment in generating plant and in the maintenance of the transmission and distribution network; (e) high levels of  power losses experienced by the distribution 
companies (EDEs) (see below), which have provoked a reaction from the authorities to limit the 
losses; (f) certain liquidity problems of the distributors, which are obliging them to delay or 
suspend payments for power purchases and thus provoke power cuts; and (g) poor management on the part of the EDEs.
36 
4.50.  Over the years, a number of plans have been drawn up for modernizing the subsector. 
The current Electricity Sector Action Plan lays down various guidelines for the period 2010-2015, in particular, the simplification and more flexible application of the tariff system and the 
rationalization and targeting of subsidies.
37 
4.51.  The electricity market is governed by the General Law on Electricity (LGE)38 and there are 
three bodies with responsibility for its activi ties: (i) the National Energy Commission (CNE), 
presided over by the Ministry of Energy and Mining (MEM)39, which formulates electricity policy; 
(ii) the Electricity Supervisory Authority (SIE), attached to the Ministry of Energy and Mining40, 
the regulatory body for the electricity market; an d (iii) the Coordinating Agency, which coordinates 
the technical and commercial operations relating to the national grid. 
4.52.  Another important player in the electricity market is the Dominican Corporation of 
State-owned Electricity Companies (CDEEE), wh ich groups together the five State-owned 
electricity enterprises and is responsible for "leading and coordinating" the development policy of 
the State electricity subsector "without prejudice to the general functions of the National Energy 
Commission with respect to the electricity subsector as a whole".41 However, it is the CDEEE that 
"actually does the planning for the subsector"42 by furthering, for example, the expansion of 
                                               
34 CDEEE (2013). 
35 World Bank data for 2010 in: Dominican Electricity Industry Association (2012). 
36 CDEEE (2009 and 2013) and IADB and World Bank (2009). 
37 CDEEE (2009). 
38 Law No. 125-01 of 26 July 2001, as amended by Laws No. 186-07 and No. 100-13. See also Decree 
No. 555-02 of 19 July 2002, as amended by Decrees No. 749-02 and No. 494-07. 
39 Prior to 2013, the Ministry of Industry and Trade presided over the CNE. 
40 Prior to 2013, the year in which the Ministry of Energy and Mining was established, the SIE was not 
attached to any ministry. 
41 Decree No. 923-09 of 30 December 2009. The CD EEE also includes the Rural and Suburban 
Electrification Unit (UERS), which is responsible for carrying out electrification projects in rural and suburban 
areas. 
42 IADB and World Bank (2009). WT/TPR/S/319/Rev.1 • Dominican Republic 
- 98 - 
 generating capacity and the modification of the power grid.43 Under Law No. 100-13 creating the 
Ministry of Energy and Mining, the CDEEE was attached to the MEM and it was envisaged that the 
latter would assume the powers of the Corporation.  However, the implementation of this provision 
was postponed for five years by Law No. 142-13.44 Article 24 of this Law is valid until 2018, 
when it is expected that the MEM will take over  the functions of the CDEEE. The authorities have 
pointed out that the reason for postponing the ta keover of control of the CDEEE by the MEM was 
based on the fact that the CDEEE was in the proce ss of putting out to tender the construction of 
the Punta Catalina 720-MW thermal power station and seeking the corresponding financing. 
4.53.  The conditions of access to the electricit y market have not changed since 2008 (Chart 4.1). 
Generating activities are the only ones with private sector participation. Under the General Law on Electricity No. 125-01, the Dominican State has reserved for itself hydroelectric generation in 
excess of 5 MW and power transmission, through the Dominican Hydroelectric Generation 
Company (EGEHID) and the Dominican Power Transmission Company (ETED).
45 The private sector 
can invest in hydroelectric plants with a capacity equal to or less than 5 MW. Nevertheless, 
prior to the enactment of the General Law on Electricity No. 125-01, two isolated systems, 
"Consorcio Energético Punta Cana-Macao" and "Luz y Fuerza de Las Terrenas", both consisting of private consortia, had been authorized to operat e. Law No. 394-14 of 20 August 2014 authorizes 
the Dominican State, through the CDEEE, to partic ipate, directly or indirectly, as promoter, 
operator and/or owner in the generation of electricity. 
Chart 4.1 Access to the electricity market  
 
Note:  At present, electricity is distribute d and marketed through the companies EDENORTE 
Dominicana, S.A., EDESUR Dominicana, S.A. and Empresa Distribuidora de Electricidad, S.A. 
(EDEESTE), which are 100% State-owned. 
Source: LGE, Decree No. 555-02 and Law No. 57-07. 
4.54.  The SENI currently has 12 private and two semi-public46 generating companies 
engaged exclusively in power generation. The three distribution and marketing companies 
(EDENORTE, EDESUR and EDEESTE ) are 100% publicly owned. The private sector may be 
authorized to participate in the financing, construction or management of State monopoly 
projects.47 Moreover, there are independent private pr oducers who sell their output through the 
SENI.48 The CDEEE is responsible for the administration and applic ation of the energy supply 
contracts with these producers.49 
4.55.  Companies must be covered by a concession contract to be able to enter the electricity 
market.50 The provisional concession granted by the CNE gives the right to carry out project 
                                               
43 CDEEE (2009). 
44 Law No. 100-13 of 30 July 2013, as amended by Law No. 142-13. 
45 However, the authorities have pointed out that there is one company that has an exclusive 
transmission line, despite the legal ban. This is a company that generates its own power and is not integrated in the grid. 
46 EGE ITABO and EGE HAINA, which are 50.1%  privately owned and 49.9% State-owned. 
47 LGE, Article 131. 
48 The Dominican Republic's independent private producers are: Generadora San Felipe (180 MW) and 
Compañía Eléctrica de San Pedro de Macorís (CESPM) (300 MW). Of these, San Felipe is foreign-owned, while CESPM's shareholders are partly foreign an d partly from the Domi nican private sector. 
49 LGE, Article 138. 
50 LGE, Articles 10 and 42-51, and Articles 57-87 of Decree No. 555-02, as amended by Decrees 
No. 749-02 and No. 494-07. Transmission 
Dominican Power Transmission Company (ETED) Private participation prohibited  
Hydroelectric generation  
Dominican Hydroelectric Generation Company 
(EGEHID)  Private participation authorized 
Generation  
Hydroelectric generation in "mini" plants 
(installed capacity < 5 MW)  
Distribution  
Marketin g WT/TPR/S/319/Rev.1 • Dominican Republic 
- 99 - 
 feasibility studies for a period of 18 months. The final concession granted by the Government 
entitles the concession-holder to build an electrical plant and operate it for a period of 40 years (with the possibility of an extension). If there are several applications for the same final concession, the rights are awarded by competit ive bidding. Foreign investors are obliged to 
establish their legal domicile in the Dominican Republic in order to be able to sign the final 
concession contract. This is transferable, subject to the approval of the SIE. 
4.56.  Vertical integration in the subsector is not generally allowed, except in special cases of 
isolated systems that pre-existed the LGE. Howeve r, distribution companies may be authorized to 
operate generating plants, but only up to 15% of the SENI demand.
51 At present, there are no 
distribution companies with links to generating activities. The authorities have noted that the CDEEE does not operate as a vertically integrated enterprise, but coordinates the business 
management of five independent companies that participate in the electricity market. 
4.57.  Under the LGE, the purchase of electricity on the wholesale market must be divided up 
between the long-term contract market (80%) and the spot market (20%).
52 However, the data 
on EDE purchases since 2008 indicate that the EDEs have not abided by the rules, preferring to 
buy electricity through contracts. Only 10-15% of electricity is supplied through the spot market.53 
4.58.  Only customers whose monthly maximum demand exceeds 1 MW negotiate the purchase 
price for their electricity with the distribution and/or generating companies. The other customers 
("regulated customers") pay the electricity tariffs established each month by the SIE.54 The tariffs 
applicable to regulated customers have been frozen by the SIE since 2011.55 Within the context of 
its plan for modernizing the subsector, the Dominican Republic has undertaken to re-establish a 
flexible regime that allows tariffs to be adjusted automatically in accordance with the variations in 
international fossil fuel prices. No law that would make the electricity tariff more flexible has yet been promulgated. 
4.59.  The Dominican Republic maintains direct and indirect subsidy schemes for regulated 
customers, with the subsidies being channelled through cross subsidies
56, the Bonoluz Programme 
and the Electricity Tariff Stabilization Fund. 
4.60.  The Bonoluz Programme was introduced to replace the Blackout Reduction Programme 
(PRA) in 2009 with the aim of establishing a more efficient and more focused subsidy system.57 
Whereas the PRA was a subsidy granted to all customers in marginalized areas regardless of their socio-economic level
58, Bonoluz is targeted directly at low-income customers throughout the 
national territory. The monthly consumption su bsidized has been reduced from 700 kWh (PRA) 
to 100 kWh (Bonoluz).59 
4.61.  The Electricity Tariff Stabilization Fund (FETE) is a system of indirect subsidies for customers 
introduced in 2003 to prevent fluctuations in fossil fuel prices impacting on their bills.60 Under the 
FETE, the SIE manages two monthly tariffs: the indexed tariff granted to distributors and the customer tariff. The difference between the two dete rmines the amount of the subsidy paid to the 
distribution companies. At present, all tariffs are subsidized. Moreover, the State is developing the 
Punta Catalina coal-fired power station project with a capacity of 770 MW, with a view to 
promoting the diversification of the generating sy stem. It is anticipated that when this power 
                                               
51 LGE, Article 11. 
52 Ibid., Article 110. 
53 Energy purchase indicators in the CDEEE's annual Informes de Desempeño . Viewed at: 
http://transparencia.cdeee.gob.do/Informes.aspx . 
54 LGE; Articles 108 and 118. 
55 The electricity tariff was last amended in 2011, to allow an increase of 9%. 
56 Under the cross-subsidy system large consumers (more than 700 kWh per month) pay a tariff more 
than 100% higher than that paid by small consumers (300 kWh per month). Méndez (2010). 
57 Decree No. 421-09 of 30 May 2009. 
58 The PRA was criticized when it turned out that we ll-off households were rece iving the subsidy. It was 
estimated that only 44% of househol ds eligible for the PRA needed to benefit from the Programme. Online 
information from the World Bank. Viewed at: http://www.bancomundial.or g/es/region/lac/whats-
new?qterm=&displayconttype_exact=Resul ts&country_exact=Dominican+Republic . 
59 Social Policy Coordination Office (2012) and online information from the Social Subsidies 
Administrator. Viewed at: http://www.adess.gov.do/v2/P_SoloTexto.aspx?EntId=241 . 
60 Decree No. 302-03 of 31 March 2003. WT/TPR/S/319/Rev.1 • Dominican Republic 
- 100 - 
 station starts up, electricity costs, and hence the FE TE subsidy, will be reduced. This investment is 
part of the first pillar of the national strategy for the electricity subsector. In this connection, the authorities consider that the installation of the Punta Catalina thermal power station will lead to an annual reduction in the electricity subsidy of the order of US$450-500 million. The aim of the 
second pillar of the national strategy for the electricity subsector is to reduce distribution losses 
by 10% between 2012 and 2016. It is expected th a t  t h i s  w i l l  a l s o  h e l p  t o  r e d u c e  t h e  F E T E .  
In 2013, the State allocated 2.1% of GDP in subsidies to the electricity subsector. 
4.62.  At the same time, the State is continuing to compensate the EDEs for the operating deficit 
resulting from their high levels of energy losses. Some of the losses are technical in nature, but most are non-technical, including tampering with meters and unpaid bills.
61 During the review 
period, the EDEs' annual losses amounted to as much as 35% of the total energy purchased.62 
4.63.  In fact, the high level of losses, which the authorities estimate at 31.5% for 2014, is one of 
the main problems facing the Dominican electricity subsector. The Electricity Sector Action Plan aims to reduce losses to 10.5% by 2021. The Plan also envisages an increase in generation, 
through the construction of a new thermal power station and the conversion of oil-fired plants to 
natural gas. The authorities consider that this will also have a significant effect on the country's external accounts, since they calculate that th is replacement measure would reduce the annual 
import bill by US$800 to 900 million. The authorities also consider that further investment in 
distribution is required. 
4.3.2  Renewable energy 4.64.  The Dominican Republic maintains a system of incentives for the production of clean 
electricity and biofuels under Law No. 57-07 on Incentives for the Development of Renewable 
Energy Sources and its Special Regimes, which forms the basic legislative and regulatory framework for encouraging and regulating development and investment in projects that make use 
of some renewable source of energy.
63 The National Energy Commission (CNE) is responsible for 
administering this system. There was no change in the conditions of access to the renewable energies market during the review period. Clean electricity and biofuel producers must apply for a 
provisional and then a final concession to be able to operate in the Dominican Republic.
64 
4.65.  The incentives granted under Law No. 57-07, as originally enacted, include: (a) exemption 
from import duties on plant, machinery and acce ssories needed to produce energy from renewable 
sources; (b) exemption from income tax (ISR) for a period of 10 years from the commencement of 
operations, with a maximum time limit of 2020, on income derived from the generation and sale of 
electricity, hot water, steam, motive power, biofue ls or synthetic fuels, generated on the basis of 
renewable energy sources, and on income derived from the sale and installation of equipment, 
parts and systems produced in the national territory with a minimum value added of 35%, 
for companies whose installations have been approved by the CNE; (c) the reduction to 5% of the tax by way of payment of interest for external financing; and (d) a single income tax credit for 
firms that generate their own power amounting initially to up to 75% of the cost of investment in 
equipment, for a period of three years. 
4.66.  In 2012, the tax incentives were changed by eliminating exemption from the ISR and 
reducing the amount of the tax credit to 40% . For investors who availed themselves of the 
incentives regime before November 2012, exemption from the ISR continues to apply for a period 
of ten years or up to 2020. The other tax incentiv es have been maintained, in particular the total 
exemption from tariffs and other levies on impo rted plant and machinery needed to launch the 
project. It is estimated that in 2014 the revenue that went uncollected as a consequence of 
Law No. 57-07 amounted to about RD$400 million.
65 
                                               
61 International Commission for the Strategic Development of the Dominican Republic (2010). 
62 Energy loss indicators in the CDEEE's annual Informes de Desempeño . Viewed at: http:// 
transparencia.cdeee.gob.do/Informes.aspx . 
63 Law No. 57-07 of 24 April 2007, as amended by Law No. 253-12. See also Decree No. 02-08 of 
27 May 2008. 
64 Decree No. 02-08. 
65 Directorate-General of Internal Revenue (2013). WT/TPR/S/319/Rev.1 • Dominican Republic 
- 101 - 
 4.67.  Law No. 57-07 also guarantees a return on investment by establishing fixed selling prices 
for companies that generate electricity from renewable sources.66 According to the authorities, 
as of February 2015 these incentives had not been applied. Once a domestic market for biofuels has developed, their weekly prices will be determined by the MEM.
67 
4.68.  The MEM is authorized to determine the quotas for supplying the domestic market with 
biofuels, with preference being given to those pr oducers that use local raw materials. Imports of 
raw materials (or biofuels) are permitted, subject to quotas, in the event of a shortage on the 
domestic market.68 Import licences are issued by the MEM, on the recommendation of the CNE. 
Surplus biofuels may be exported once the domestic demand has been met.69 
4.3.3  Hydrocarbons 4.69.  The Dominican Republic strengthened th e institutional framework of the hydrocarbons 
subsector in 2013 by creating the MEM, which is taking over some of the relevant functions 
previously assigned to the Ministry of Industry an d Trade (MIC), in particular that of a regulatory 
body. However, the MIC continues to be responsible for the marketing of petroleum products.
70 
4.70.  The Dominican Republic is a net importer  of hydrocarbons. In general, fossil fuels and 
petroleum products may be freely imported and only imports intended for generating electricity need to be authorized by the National Energy Commission.
71 On the other hand, there are import 
quotas for liquefied petroleum gas (LPG) for th e purpose of ensuring that the market is 
permanently supplied.72 
4.71.  The Dominican Republic has a refining capacity of 51,000 barrels a day shared between 
2 refineries: Falconbridge Dominicana, a mining company with a refining capacity of 
16,000 barrels to cover its own requirements, and Refinería Dominicana de Petróleo SA 
(REFIDOMSA), a semi-public company73 with a refining capacity of 35,000 barrels, which supplies 
some 25% of the domestic demand. The remaining 75% is imported by REFIDOMSA itself and 
2 private-sector enterprises. The petroleum prod ucts are transported to the country's 852 petrol 
stations and 1,133 LPG stations by about 41 privat e operators, of which seven carry 57% of the 
total. The distribution sector is in the hands of 12 companies (9 Dominican and 3 foreign). 
The first three of these control 74.4% of sales to  the public. The storage infrastructure can hold 
3.5 million barrels. The Dominican Republic maintains average reserves of petroleum products equivalent to 21 days of consumption, with major differences between products (from 2  days for jet fuel to 47 days for fuel oil).
74 
4.72.  All natural gas is imported by a single private generating company, AES Andres.75 The gas is 
distributed through pipelines to generate electricity and by authorized companies for use in the industrial and automotive sector. 
4.73.  There was no change in the market access conditions for hydrocarbons during the review 
period. Under the Constitution, non-renewable natural resources belong to the Nation, but the private sector may explore and exploit hydrocarbon deposits under contract. Private companies 
must apply to the MEM for a permit (exploration) or a concession contract (exploitation). Permits 
and concession contracts must be approved by the National Congress. However, the Dominican 
Republic maintains a reservation with respect to foreign participation, prohibiting other 
                                               
66 For more information see Articles 108-112 of Decree No. 02-08. 
67 Articles 207-214 of Decree No. 02-08. 
68 Article 22 of Law No. 57-07 and Articles 232 and 234 of Decree No. 02-08. 
69 Article 25 of Law No. 57-07 and Article 227 of Decree No. 02-08. 
70 Law No. 100-13, of 30 July 2013, as amended by Law No. 142-13, of 30 September 2013. 
71 Article 9 of Law No. 112-00 of 1 November 2000, as amended by Laws No. 557-05, No. 495-06 and 
No. 253-12. LGE, Article 129. 
72 Chapter V of Decree No. 307-01 of 2 March 2001, as amended by Decree No. 176-04. 
73 REFIDOMSA is 51% State-owned, the remaining 49% being owned by Petróleos de Venezuela SA. 
74 IADB (2013) and ECLAC (2009 and 2014). 
75 IADB (2013). WT/TPR/S/319/Rev.1 • Dominican Republic 
- 102 - 
 governments from participating in the exploitati on/exploration of hydrocarbon deposits either 
directly or as partners or shareholders in companies that hold a permit or concession.76 
4.74.  Licences are required to import, store and transport petroleum products, as well as to 
operate petrol stations and fuel retail stations.77 The first two licences are granted by the MEM and 
the last two by the MIC. 
4.75.  The weekly consumer prices for certain hydrocarbons78 are fixed by the MIC as a function of 
international oil prices and the exchange rate. The Ministry also determines the distribution 
margins (Section 3.3.2.2).79 
4.76.  The State is required by law to subsidize the domestic use of LPG.80 In 2008, 
the generalized subsidy system was replaced by the Bonogaz for Households (BGH) programme, targeted exclusively at poor and lower middle-class households. The Bonogaz for Drivers (BGC) 
programme for drivers of vehicles that transport passengers was also introduced. The amount 
of the monthly subsidy is RD$228 for beneficiaries of the BGH and RD$3,420 for beneficiaries of the BGC.
81 
4.77.  The Dominican Republic taxes the domestic consumption of hydrocarbons produced locally 
or imported (Section 3.1.5.3).82 The tax has two components: (i) a specific component levied on 
the US gallon according to the type of hydrocarbon and adjusted quarterly in accordance with the 
inflation rate and (ii) an ad valorem  component levied on the import parity price fixed by the MIC. 
The ad valorem  component is 16%, except for jet fuel, which is 6.5%. Natural gas is exempt 
from the tax. 
4.78.  Exemptions from the tax on hydrocarbons are granted to electricity generating companies 
that sell their output to the national grid, to companies established in free zones or special border 
development zones (Section 3.2.4), to public  works contractors and mining concessions. 
In addition, the Directorate-General of Internal Reve nue points out that the specific rate of the tax 
has not been indexed on the inflation rate since June 2012, which has led to less revenue being 
collected.83 At the same time, there are systems for refunding or offsetting the hydrocarbons tax 
for regular diesel and natural gas.84 These refunds/offset measures benefit passenger and freight 
transport, the industrial sector and electricity generation, within certain monthly consumption 
limits. It is estimated that the revenue foregone as a consequence of these various concessions relating to the hydrocarbons tax amounted to 1.07% of GDP in 2014. 
4.4  Manufacturing 
4.4.1  General features 
4.79.  The manufacturing sector in the Dominican Re public is divided into two different categories: 
a local manufacturing sector, mainly oriented towards the domestic market, and another sector 
that operates under the free-zone regime, mainly oriented towards the outside world. Free-zone 
sales are an important generator of Dominican merchandise exports, accounting for a little over 50% of the latter in 2013, as well as of hard currency. 
4.80.  The manufacturing sector's share of GDP declined during the review period, from 23% in 
2007 to 20.3% in 2013. This despite the fact th at the sector's value added expanded by 32% 
                                               
76 Law No. 4532 of 30 August 1956, as amended by Law No. 4833 of 16 January 1958. Law No. 100-13, 
as amended by Law No. 142-13. 
77 Decree No. 307-01, as amended by Decree No. 176-04. 
78 LPG, gasoline, kerosene, jet fuel, diesel and fuel oil. Article 8 of Law No. 112-00, as amended by Laws 
No. 557-05, No. 495-06 and No. 253-12. 
79 Article 8 of Law No. 112-00. For more information on the fixing of margins see Chapter VI of Decree 
No. 307-01, as amended by Decree No. 176-04. 
80 Law No. 112-00 of 1 November 2000, as amended by Laws No. 557-05, No. 495-06 and No. 253-12. 
81 Social Policy Coordination Office (2012) and online information from the Social Subsidies 
Administrator. Viewed at: http://www.adess.gov.do/v2/P_SoloTexto.aspx?EntId=241 . 
82 Law No. 112-00 of 1 November 2000, as amended by Laws No. 557-05, No. 495-06 and No. 253-12. 
83 Directorate-General of Internal Revenue (2013). 
84 Decree No. 677-07 of 29 November 2007, as amended by Decree No. 77-08 (diesel). Decree 
No. 265-12 of 22 May 2012 (natural gas). WT/TPR/S/319/Rev.1 • Dominican Republic 
- 103 - 
 during the same period, due mainly to the fast er expansion of services and the exploitation 
of mines and quarries. The manufacturing sector provided 282,042 formal jobs in 2013. Dominican local manufacturing accounted for 87.6% of total manufacturing, while free-zone production accounted for 12.4%. Local manufacturing is quite diversified, the main item being 
beverages and tobacco, together with some of th e products classified under "Other manufacturing 
industries", such as dairy products; various food products; paints, varnishes and related products; rubber and plastic products; cement; and bars and rods of iron and steel. In the free-zone sector, 
a little over one third of production is concentrated in textiles and clothing (Table 4.7). 
Table 4.7 Structure and performance of  the manufacturing sector, 2008-2013 
(RD$ million and %) 
 2008 2009  2010  2011  2012  2013 % of total  
Local manufacturing 63,920.1 64,544.6  69,512.2  73,061.8  73,828.4  74,249.3 87.6  
Milling industry products 594.5 624.6  708.2  682.5  609.7  653.0 0.8 
Sugar 1,311.0 1,369.7  1,370.2  1,412.2  1,484.8  1,434.1 1.7 
Beverages and tobacco 8,016.3 7,305.0  8,178.5  8,274.6  9,044.5  8,860.2 10.4 
Oil refinery products 703.7 655.1  706.2  676.5  624.7  692.8 0.8 
Othera 53,294.7 54,590.3  58,549.1  62,015.9  62,064.6  62,609.2 73.8 
Free-zone 
manufacturing 10,223.7 8,730.6  9,030.5  10,307.9  10,275.9  10,547.0 12.4  
Textiles and clothing 4,440,5 3,345.9  3,278.1  3,738.5  3,700.0  3,865.6 4.6 
Other 5,783.2 5,384.8  5,752.4  6,569.4  6,575.9  6,681.4 7.9 
Total manufacturing 74,143.8 73,275.2  78,542.7  83,369.7  84,104.0  84,796.3 100.0  
% of GDP 22.4 21.4  21.3 21.6 21.0 20.3  
Total industrial 90,692.1 88,404.9  95,267.7  100,941.1  102,378.3  107,449.3  
% of GDP 27.4 25.8  25.8 26.2 25.6 25.8  
a Other manufacturing indu stries include the following main ca tegories: meat, meat products and 
processed fish; vegetable and anim al oils and fats; dairy products; pasta; miscellaneous food 
products; coffee; paints, varnishes and related products; rubber and plas tic products; cement; 
and bars and rods of iron and steel. 
Source:  PROINDUSTRIA, based on information fro m the Central Bank of the Dominican Republic. 
4.4.2  Legal framework and incentives 
4.81.  The manufacturing sector receives support through tariffs and incentives. The average MFN 
tariff applied to the manufacturing industry in  2014 was 7.6%, slightly lower than the average 
MFN tariff for the tariff universe as a whole, which was 7.8%. In the same year, the tariff applied 
to non-agricultural products (WTO definition) was 6.5%. The groups of manufactured products 
with an above-average tariff include food preparations (17.5%), footwear (16.7%) and 
miscellaneous manufactures articles (16.7%). The product groups subject to the lowest tariffs 
include products of the chemical or allied industries (2.3%) and machinery and mechanical appliances (3.4%). 
4.82.  The main legislation on manufacturing in general is Law No. 392-07 on Industrial 
Competitiveness and Innovation, which aims to promote the competitive development of the 
manufacturing industry by proposing support po licies and programmes that encourage industrial 
reorganization and innovation with a view to achieving greater diversification of domestic industry, 
industrial concatenation through the promotion of industrial parks and estates, and link-ups with 
international markets. The manufacturing sector is able to benefit from a series of tax incentives, apart from those provided for in Law No. 392-07 (see below), such as those envisaged in 
Law No. 28-01 on the border regime, Free Zones Law No. 8-90, Law No. 84-99 on Export Revival 
and Promotion and Law No. 56-07 on textile concatenation. However, the regimes are mutually exclusive and a company cannot avail itself of two of them at the same time. 
4.83.  Law No. 392-07 created the Centre for Industrial Development and Competitiveness 
(PROINDUSTRIA), which replaced the Industrial Promotion Corporation as the public entity 
responsible for promoting industrial competitivene ss. PROINDUSTRIA is a decentralized entity with 
functional autonomy and its purpose is to promote the competitive industrial development of 
manufacturing industry, by proposing support po licies and programmes that encourage industrial 
reorganization and innovation with a view to achieving greater diversification of the domestic industry. The Board of Directors of PROINDUSTRIA is the governing body responsible for proposing WT/TPR/S/319/Rev.1 • Dominican Republic 
- 104 - 
 and furthering policies for the development and modernization of the Dominican industrial sector.85 
In 2010, PROINDUSTRIA prepared a Strategic Plan for the period 2011-2015 in which it describes its goals and objectives.
86 
4.84.  Law No. 392-07 establishes a special customs regime for industry applicable to the import 
and export procedures of companies recognized as manufacturers by PROINDUSTRIA. For these 
purposes, the DGA has drawn up an industrial code which allows such companies to use an expedited procedure (within 24 hours). The DGA has a risk profiling programme which enables this 
expedited procedure to be applied to the compan ies recognized by PROINDUSTRIA, which are then 
subject to this single verification mechanism. 
4.85.  PROINDUSTRIA also helps manufacturing sect or enterprises to obtain financing through its 
PROINCUBE project, which promotes the establishment of new manufacturing businesses. 
PROINCUBE manages the funds that these businesses require through its programme with the 
Agricultural Bank, offering a preferential interest rate of 8% per annum and a three-month grace period, for a maximum am ount of RD$1 million.
87 Law No. 392-07 provides for PROINDUSTRIA to 
establish a guarantee fund for loans granted by financial intermediaries, both banking and 
non-banking, including PROINDUSTRIA itself, to cover the percentage of losses which the financial or credit entities estimate they will have to co ntend with over the whole of their SME portfolio. 
In February 2015, the guarantee fund had not yet b een set up. The authorities expect it to begin 
operating in the course of 2015. 
4.86.  Under Law No. 392-07, the Dominican manufacturing sector benefits from a series of tax 
exemptions, including exemption from payment of th e tax on the transfer of industrialized goods 
and services (ITBIS) on raw materials, industrial  machinery and capital goods for the industries 
listed in Article 24 of Law No. 557-05 of 13 December 2005, as well as the other capital goods and raw materials which benefit from a tariff rate of 0%.
88 However, 4% of the total amount of the 
ITBIS that remains uncollected as a result of the application of Article 24 continues to be 
transferred by the National Treasury to the account  registered by the DGA for that purpose. Under 
Law No. 392-07, legal persons, whether Dominican or foreign, recognized by PROINDUSTRIA as 
exporters to third-country markets are entitled to reimbursement of the ITBIS, the selective 
consumption tax (ISC) applied to telecommunications, insurance and fuels established by Law No. 495-06 and the tax on cheques, at a percentage corresponding to that represented by export income as a proportion of total sales income.
89 The Law provides for identical facilities to 
apply to the purchase of consumables produced on Dominican territory. 
4.87.  According to the Directorate-General of In ternal Revenue (DGII), in 2009 only 7.1% of the 
total number of economically active enterprises regi stered in the industries sector were benefiting 
from incentive laws.90 Estimates of the fiscal cost of applying the incentives regimes indicate that, 
in 2012, the benefits granted to free-zone enterp rises entailed the sacrif ice of RD$7,073.8 million 
(some US$160 million in 2014) in taxes or 0.28% of GDP. According to information provided by 
the authorities, in 2013, the benefits cost 0.9% of GDP for enterprises under the free-zone regime 
                                               
85 The Board of Directors of PROINDUSTRIA is compos ed of representatives of the public and private 
sectors, namely: the Minister of Industry and Trade, who acts as chairman; the Minister of the Economy, Planning and Development; the Execut ive Director of the Dominican Republ ic Export and In vestment Center 
(CEI-RD); the Executive Director of the National Co mpetitiveness Council (CNC); the Director-General of 
Customs, member; the Director-General of Internal Re venue (DGII); the Director-General of PROINDUSTRIA; 
the Director of the National Vocational Technical Trai ning Institute (INFOTEP); and five regular members and 
their alternates chosen to represent the industrial sector by the Dominican industrial associations and 
confirmed every two years. 
86 PROINDUSTRIA (2010). 
87 Online information from PROINDUSTRIA. Viewed at: http://incubatuproyecto.proindustria.gov.do/que-
ofrecemos-/finan ciamiento.aspx . 
88 The goods classified in the tariff subheadings id entified in Law No. 557-05 have been taxed at the 
zero rate in the customs tariff since the entry into force of the CAFTA-DR. 
89 Industrial Recognition is taken to mean the resolu tion by means of which PROINDUSTRIA authorizes a 
manufacturing industry to receive the benefits granted by Law No. 392-07. The requirements and the procedure necessary for a manufacturing  industry to avail itself of Industrial Recognition are contained in 
Resolution No. 154-26-2010 of 18 August 2010. To apply fo r Industrial Recognition, the applicant company 
must show that: (a) it is a manufacturing industry de dicated to the production of tangible and marketable 
goods; (b) that the industrial activity is carried out in a factory; and (c) that the in dustry is not benefiting from 
any special regime that offe rs exemption from the ISR. 
90 Directorate-General of Internal Revenue (2010). WT/TPR/S/319/Rev.1 • Dominican Republic 
- 105 - 
 (RD$23,461 million), 0.1% of GDP for the enterprises under the regime of Law No. 392-07, 
and 0.04% of GDP for the border development enterprises. 
4.4.3  Free-zone regime 4.88.  The free-zone regime in the Dominican Republic is governed by Law No. 8-90 on Free 
Export Zones, the purpose of which is to pr omote the establishment of such zones and the 
expansion of those that already exist, as well as to regulate their operation. The programme is intended, among other things, to help create jobs, train the labour force, promote social assistance 
programmes, maintain the balance of payments and institute regional community development 
programmes.
91 The National Council for Free Export Zones is the official authority responsible for 
overseeing compliance with Law No. 8-90. It is composed of representatives of the public and 
private sectors and its role is to promote, asse ss and approve the establishment of new businesses 
and the development of existing ones. 
4.89.  The Dominican Republic has regularly notified the WTO of its free-zone regime.92 With 
regard to the elimination of the export subsidy component, it has notified the WTO that in all 
resolutions and/or operating permits issued under the free-zone regime of Law No. 8-90 it is 
specified that the Dominican Republic reserves th e right to review and/or withdraw some of the 
incentives contained in that law as from 2015, in compliance with the Decision adopted by the 
WTO Committee on Subsidies and Countervailing Measures. It has also notified the 
commencement of an Action Plan with respect to the elimination of export subsidies, having submitted to the Congress of the Repub lic a draft Free Zones Law that envisages the 
complete elimination of export subsidies, in addition to the elimination of export performance 
requirements already effected by means of Law No. 139-11.
93 
4.90.  Enterprises manufacturing goods or providing services and operating under Law No. 8-90 
are exempt from payment of income tax and custom s duties on the importation and exportation of 
the raw materials, equipment and machinery used to produce these goods. Enterprises eligible for 
these benefits are entitled to a free-zone operat ing licence, normally for 15 years, except in the 
border region with Haiti where the licence is valid for a maximum of 20 years. Beyond this period, 
licence holders may apply for a renewal. 
4.91.  During the review period, Law No. 8-90 wa s twice amended, once by means of Article 11 of 
Law No. 139-11 of 24 June 2011, which amended Article 17 of Law No. 8-90 with respect to the performance requirements related with tariff exemptions in order that free zone enterprises may 
market goods and services on the local market . Thus, when sold on the domestic market, 
goods produced in free zones pay the corresponding import duty on the ex-factory value, plus services related with the movement of the cargo, and are also subject to the ISC (where any) and 
the ITBIS. It is also stipulated that, before transferring goods or services to the domestic market, 
free-zone enterprises must notify the National Council for Free Export Zones and submit a declaration to the DGA for the purpose of establishing the tax base and the taxpayer. 
In addition, when free-zone enterprises transfer goods or provide services to a natural or legal 
person in the Dominican Republic, they are subject to the payment of a charge of 2.5% by way of 
income tax on the value of the gross sales made on the domestic market. Law No. 253-12 of 9 November 2012 increased the charge to 3.5%. 
4.92.  At the end of 2013, there were 55 free zones with 602 enterprises employing more than 
144,000 people. In that year, the contribution of the free zones to total GDP was 3.2%. The value added in the free zones accounts for about one fi fth of the value added in the manufacturing 
sector operating outside them. However, the free zones make a significant contribution to exports 
(Table 4.8). 
                                               
91 WTO document G/SCM/N/275/DOM of 15 July 2014. 
92 Idem . 
93 Idem . WT/TPR/S/319/Rev.1 • Dominican Republic 
- 106 - 
 Table 4.8 Main free zone indicators, 2008-2013 
 2008  2009  2010  2011 2012 2013  
Enterprises 525  553 555 578 584 602  
Jobs 124,517  112,618  121,001  125,117 134,226 144,383  
Contribution to GDP (%) 3.6  3.0 3.0 3.2 3.1 3.2  
Investment (US$ million) 2,611.2  2,738.1  2,881.6  2,913.7 3,133.9 3,442.8  
Exports (US$ million) 4,354.1  3,793.5  4,217.6  4,884.5 4,940.1 5,029.0  
Source:  National Counc il for Free Export Zones. 
4.93.  In 2013, the cumulative total investment of the free zone enterprises amounted to 
US$3,442.8 million.94 It is estimated that about two thirds of investment corresponds to foreign 
capital, with the principal foreign investor being the United States. 
4.94.  In 2013, free-zone exports amounted to US$4,950.5 million or 52% of total merchandise 
exports.95 Clothing and textiles accounted for 25.5% of total exports, closely followed by medical 
and pharmaceutical products, with 24.5% (Table 4.9). Exports of the latter increased by some 
59% between 2007 and 2013, whereas those of clothing and textiles decreased. Due to the global 
crisis of 2008-2009, exports under this heading contracted significantly; in 2011 they began to recover, although in 2013 they had still not regained  their pre-crisis level. Activities in subsectors 
such as footwear and tobacco and tobacco products  grew more dynamic during the review period, 
whereas items such as jewellery and electrical and telecommunications equipment lost ground. 
Table 4.9 Free zone exports, by main activity, 2008-2014 
(US$ million) 
Activity 2008 2009  2010  2011  2012  2013 2014a % 2013  
Clothing and textiles 1,165.7 933.5  983.9  1,207.0  1.222,8  1.219,2 927.3 24.6 
Medical and 
pharmaceutical 
products 855.6 963.0  1,070.7  1,177.5  1,213,3  1,230,6 957.9 24.9 
Electrical products 794.7 565.5  581.6  603.9  638.7  658.2 558.4 13.3 
Jewellery 505.4 435.7  434.6  488.1  405.3  315.5 216.2 6.4 
Tobacco and 
tobacco products 429.9 403.1  381.6  396.4  475.8  531.7 392.4 10.7 
Footwear 234.7 201.0  312.8  375.4  406.5  422.2 323.7 8.5 
Other 368.1 291.7  375.7  435.1  443.9  573.2 520.0 11.6 
Total 4,354.1 3,793.5  4,103.4  4,687.3  4,806.4  4,950.5 3,895.9 100.0 
a January-September. 
Source:  Central Bank of the Dominican Republic. 
4.5  Services 
4.5.1  Financial services 4.5.1.1  Banking 
4.5.1.1.1  General features and prudential indicators 
4.95.  Private financial intermediation services ar e provided by: (i) entities established as limited 
companies, namely, full-service banks or credit entities, with the latter being either savings and 
credit banks or credit corporations; and (ii) non-joint-stock entities, namely, savings and loan 
associations or savings and credit cooperatives.
96 The savings and loan associations are mutual 
entities which the Monetary Board may authorize to convert into full-service banks or credit entities.
97 The savings and credit cooperatives are governed by Law No. 127-64 on Cooperative 
Associations of 27 January 1964 and are excluded from the scope of Law No. 183-02.98 
As of December 2014, there were 66 financial entities operating under the supervision of the 
                                               
94 Information provided by the Nation al Council for Free Export Zones. 
95 Data provided by the Central Bank of the Dominican Republic. 
96 Article 34 of Law No. 183-02. 
97 Ibid., Article 75, and Articles 37-39 of the Regulations on the opening and operation of financial 
intermediation entities and representative offices of 11 May 2004. 
98 Article 76 of Law No. 183-02. WT/TPR/S/319/Rev.1 • Dominican Republic 
- 107 - 
 Banking Supervisory Authority, consisting of 18 full-service banks, 19 savings and credit banks, 
the National Bank for the Development of Housing and Industry (BNVF), 18 credit corporations and 10 savings and loan associations. Of these financial intermediation institutions, 64 were private entities or cooperatives, one was public (the Reserve Bank) and 1 was semi-public (BNVF). 
In the same month, authorizations had been gr anted for the establishment of 12 representative 
offices of foreign banks. 
4.96.  During the review period, the banking syst em performed well despite the global financial 
crisis, partly due to the low level of exposure of the Dominican banking system to the international 
markets. In July 2014, total assets amounted to RD$1,219,933 million (US$27,561 million), of which 86.1% (US$23,742 million) was controlled by full-service banks, 10.9% by savings and loan associations, 1.6% by savings and cr edit banks, 1.0% by the BNVF, and 0.3% by 
credit corporations. 
4.97.  As indicated in the previous review, the banking system continues to display a high degree 
of concentration. In December 2014, the three leading institutions held 67.3% of total assets, 
while the 15 largest held 94.0%.
99 The expansion of total assets was driven by the dynamism of 
the loan portfolio, which recorded a substantial increase, the result of various liberalizing measures adopted by the Central Bank, including the freei ng of funds from the reserve requirement to 
finance the productive sectors (Section 1.1).
100 
4.98.  Some 8.9% of financial system assets are in the hands of foreign banks; this percentage 
goes up to 12.5% if Dominican banking with foreign capital participation is taken into account.101 
Three new banks with foreign capital were established in the Dominican Republic during the 
review period.102 
4.99.  The process of increase in the level of fina ncial intermediation continued to gather strength 
during the review period. The total assets of the financial system amounted to 43.9% of GDP 
in 2013, as compared with 36.1% in 2008. Financial system deposits increased from 28.9% of 
GDP in 2008 to 34.6% in December 2014, while the loan portfolio rose from 21.3% of GDP in 2008 to 26.1% in December 2014 (Table 4.10). 
Table 4.10 Banking system indicators 2008-2014  
 December  
2008  2009  2010  2011  2012 2013 2014  
 (RD$ billion) 
Total financial assets 597.7 675.4 777.0 890.2 970.9 1,102.6 1,219.9 
As % of GDP (at current prices)  36.1 39.1 39.3 40.0 40.9 43.1 43.9  
Financial system deposits 478.6 555.4 637.5 719.7 787.3 884.3 960.6 
Deposits as % of GDP 28.9  32.1 32.2 32.4 33.2 34.6 34.6  
Assets by type of entity         
Full-service banks 486.7 548.0 637.7 739.1 804.7 942.8 1,050.9 
                                               
99 As of December 2014, the concentration of total assets was distributed as follows: Reserve Bank of 
the Dominican Republic, 28.64%; Banco Popular, 22.68%; Banco BHD-León, 16.02%; Scotiabank, 4.67%; 
Asociación popular de Ahorros y Préstamos, 4.50%, Ba nco del Progreso, 3.45%; Asociación CIBAO de Ahorros 
y Préstamos, 2.69%; Banco Santa Cruz, 2.22%; Asociaci ón La Nacional de Ahorros y Préstamos, 1.94%; 
Citibank, 1.70%; Banco Múltiple Ademi, 1.33%; BA NESCO Banco Múltiple, 1.33%; BNVF, 0.97%; and Banco 
Múltiple BDI, 0.90%. Source: Ba nking Supervisory Authority. 
100 Banking Supervisory Authority (2013), Informes del Desempeño del Sistema Financiero Año 2013 , 
viewed at: http://www.sb.gob.do/node/210 , and Monetary Board Instructions of 8 May 2013. 
101 As of December 2014, there were eight foreign-owned banks: Scotiabank (Canada, with 4.67% of 
financial system assets); Citibank (United States, 1.70%); BANESCO (Venezuela, 1.33%); Promérica (Nicaragua, 0.74%); Banc américa (Bolivarian Republic of  Venezuela, 0.34%); Bellbank 
(Bolivarian Republic of Venezuela, 0.04%), LAFISE (Panama. 0.08%); and Empire (United States, 0.03%). 
The Dominican banks with foreign participation include: Banco Múltiple BHD-León, 16.02% of assets and a foreign capital participation of 19.18% (Banco Popu lar de Puerto Rico, 15.83%, International Finance 
Corporation (IFC), 3.35%); Banco Múltiple Ademi (1.33%), with a foreign capital participation of 10.43% (European Investment Bank (EIB)); Banco de Ahorro y Crédito ADOPEM (0.44%), with a foreign participation 
of 71.4% (Fundación Microfinanzas BBVA (Spain), 55. 6%, IFC 10% and BEI 5.77%); and Banco PERAVIA de 
Ahorro y Crédito (0.18%). 
102 Bellbank in 2008, Banesco in 2011 and LAFISE in 2012. WT/TPR/S/319/Rev.1 • Dominican Republic 
- 108 - 
  December  
2008  2009  2010  2011  2012 2013 2014  
Credit entities 
Savings and credit banks 
Credit corporations  
18.5 
2.3  
22.4 
2.4  
22.8 
2.3  
25.5 
2.6  
29.5 
2.8  
19.0 
3.2  
20.0 
3.8 
Savings and loan associations 77.9 86.8 96.4 107.0 117.0 123.7 133.4 
National Bank for the Development of 
Housing and Industry  12.2 15.8 17.9 16.0 16.9 14.0 11.8 
By composition, of which         
Loan portfolio  352.3 395.0 450.1 499.3 560.1 653.1 725.6 
Commercial loans 208.6 240.7 270.0 296.8 336.5 405.3 435.0 
Private sector 165.2  183.1  230.7  263.8  270.6 317.7 388.3 
Public sector 43.4  57.5 39.3 33.0 65.9 87.6 46.7 
Consumer loans 83.2 86.5 99.4 111.7 125.1 139.9 168.6 
Mortgage loans  60.6 67.8 80.6 90.8 98.5 107.9 122.0 
Loan portfolio as % of GDP 21.3 22.8 22.7 22.5 23.6 25.5 26.1 
 (%) 
Lending rate of the full-service 
banks        
Commercial loans  23.5 13.1 12.3 16.9 11.8 13.3 13.2  
Consumer loans  27.9 18.1 18.9 21.2 18.3 19.3 19.5 
Mortgage loans   22.2 11.5 12.9 15.0 12.2 12.8 12.2  
Microprudential indicators for the 
full-service banks        
Solvency ratio 13.4  13.8 12.9 14.6 15.8 14.8 14.0 
Average return on equity (ROE) 28.3 25.3 28.9 24.4 22.6 24.3 23.9 
Average return on assets (ROA) 2.7  2.8 2.6 2.4 2.2 2.3 2.3 
Financial intermediation margin 
(MIF)/earning assets 9.2 8.8 10.0 10.1 10.5 10.3 9.4 
% of earning assets 64.0  66.6 68.8 67.1 68.6 72.1 71.9 
Efficiencya 70.7 70.1 66.8 71.4 69.3 67.1 68.5 
Liquidity ratiob 31.1  28.0 26.2 26.3 25.1 25.0 26.7 
% past-due portfolio 3.4 4.0 2.9 2.6 3.2 1.9 1.3 
Provisions/past-due portfolio 137.0  114.8  126.1  118.8  100.5 153.6 210.3 
a Measured as the costs-to-income ratio. 
b Measured as the liquid asse ts-to-total deposits ratio. 
Source: Institutional statistics of the Banking Supervisory Authority, viewed at: 
http://www.sb.gob.do/e stadisticas-e-imformes , and Banking Supervisory Authority (various years), 
Informes del Desempeño del Si stema Financiero, viewed at: http://www.sb.gob.do/node/210 . 
4.100.  The microprudential indicators of the financial system remain at optimal levels, in 
particular, the solvency ratio comfortably exceed s the legal minimum of 10%, standing at 16.1% 
in December 2014 and at 14.0% for the full-service banks. In the same month the average return on equity (ROE) of the banks was 23.9%. The past -due loans ratio has stayed low, falling from 
3.2% in 2008 to 1.3% in 2014 and there are ample provisions for dealing with this past-due 
portfolio, as evidenced by the ratio of 210.3% in December 2014. In addition, most of the funding 
has come from domestic sources which, to a considerable extent, has insulated the Dominican financial sector from external shocks. The Dominican Republic was therefore able satisfactorily to 
withstand the impact of the global financial crisis and avoid contagion. Thus, although the 
above-mentioned indicators deteriorated slightly in 2008, since 2009 they have steadily improved. 
4.101.  During the review period, there was no si gnificant tendency for the financial system to 
become dollarized. In December 2014, 76% of financial system assets were in the national 
currency and 24.0% in foreign currency, as compared with 79.1% and 20.9%, respectively, in December 2008. At the same time, in December 2014, 70.1% of liabilities were in the national currency, as compared with 77.9% in December 2008. During the review period, the net foreign 
currency position went from -1.2% in December 2008 to -6% in December 2014, a movement that 
reflected the trend in exchange rates and interest rates. 
4.5.1.1.2  Regulatory framework 
4.102.  The regulatory framework of the banking system includes the Constitution
103, the Monetary 
and Financial Law No. 183-02 of 21 November 2002, the Law on Systemic Risk No. 92-04, the Law 
                                               
103 Articles 223-232 on the Monetary and Financial Regime. WT/TPR/S/319/Rev.1 • Dominican Republic 
- 109 - 
 on the Development of the Mortgage Market and Trusts No. 189-11, and 24 financial regulations 
issued by the Monetary Board.104 Under the Constitution, changes in the banking system's legal 
regime require the approval of two thirds of al l the members of the Senate and the Chamber of 
Deputies. An exception to this rule are changes pu t forward by the Executive, at the proposal of 
the Monetary Board, which must be approved by two thirds of those present in both chambers.105 
4.103.  The Monetary Board is the governing body  of the Monetary and Financial Administration, 
which is made up of the Central Bank and the Banking Supervisory Authority. The Board is 
responsible for formulating monetary, foreign exchange and financial policy for subsequent 
implementation by the Central Bank and for proposing changes in the monetary and financial system to the Executive, as well as for authorizing financial intermediation operators. The task of the Banking Supervisory Authority is to supervise the operations of the financial intermediation 
entities regulated by the Monetary and Financial Administration, with the exception of the savings 
and credit cooperatives (see below). The Cent ral Bank has exclusive responsibility for 
administering the payments and securities settlement system.
106 
4.104.  During the review period certain regulato ry aspects were modified through Resolutions of 
the Monetary Board and Circulars issued by the Central Bank and the Banking Supervisory Authority. For example, in 2013, provisions for the registration of repo operations with the Central 
Bank were adopted; draft credit card regulations and instructions for calculating the interest and 
commissions applicable were approved; instructions for applying the regulations on trusteeship and security agents and others on the preparat ion and presentation of strategic plans were 
approved; the Banking Subagent Regulations were approved; and the amount of consolidated debt 
in the financial system for the classification of  minor debtors was changed from RD$15 million to 
RD$25 million. In 2014, arrangements for the treatmen t of debtors affected by debt consolidation 
were published, microcredit regulations were approved and the Monetary Board approved a 
preliminary draft Law on Reciprocal Guarantee Companies whose purpose is to provide the micro, 
small and medium-sized enterprise (MSME) sector with a mechanism for facilitating their access to formal financing from the financial intermediation entities. 
4.105.  The regulatory framework of the Dominican financial system does not establish any special 
conditions or impose restrictions on the establishment of financial intermediation entities, whether domestic or foreign. Foreign investors must comply with the requirements of the Monetary and Financial Law and its implementing regulations. The commercial presence of foreign investors can 
take the following forms: (a) acquisition of shares in full-service banks and credit entities 
established in the Dominican Republic, (b) establishment of joint-stock financial intermediation entities, (c) establishment of subsidiaries or (d ) establishment of branches of banks set up in 
accordance with the legislation of other countries.
107 As of December 2014, there were eight 
financial entities controlled by foreign capital, of which six were subsidiaries of foreign banks established in accordance with Law No. 183-02 an d two were branches of banks established in 
accordance with the legislation of the country of origin. 
4.106.  To commence (or cease) local financial intermediation activities, domestic and foreign 
investors must submit an application for authorization to the Monetary Board, after first having it assessed by the Banking Supervisory Authority.
108 The Dominican Republic allows the 
establishment of subsidiaries and branches when the parent company is subject to consolidated 
supervision and located in a country with which it is possible to sign a coordination and information exchange agreement. For the purpose of ensu ring compliance with the prudential rules, 
the Monetary Board may impose operational limitations, for up to five years, on the newly 
formed entity. 
4.107.  Foreign-capital banks offer the same services and have to observe the same operating 
regulations and prudential rules as domestic entities.
109 The minimum paid-up capital requirement 
is RD$275 million (US$6.33 million) for full-service banks, RD$55 million (US$1.27 million) for 
                                               
104 Article 1 of Law No. 183-02. For the legal framework, see: http://www.sb.gob.do/marco-legal  or 
http://www.bancentral.gov.do/normativa/leyes . 
105 Article 232 of the Constitution and Article 9(i) of Law No. 183-02. 
106 Article 227 of the Constitution and Articles 5, 9(a), 15 and 19 of Law No. 183-02. 
107 Article 39 of Law No. 183-02 and Article 24 of the Regulations. 
108 Article 34 of Law No. 183-02 and Articles 5 and 20-22 of the Regulations. 
109 Articles 38 and 40-50 of Law No. 183-02 and Articles 23-29 of the Regulations. WT/TPR/S/319/Rev.1 • Dominican Republic 
- 110 - 
 savings and credit banks, RD$15 million for credit corporations, and RD$17 million for savings and 
loan associations.110 Moreover, under Monetary and Financial Law No. 183-02, full-service banks 
may invest up to 20% of their paid-up capital in support and related services entities and up to 10% in non-financial enterprises, while other operations such as investments in the capital of 
foreign financial entities require the prior authorization of the Monetary Board.
111 Under the 
prudential rules, full-service banks and credit entities must maintain a minimum solvency ratio of 10% and are subject to the legal reserve sy stem established by the Monetary Board.
112 
4.108.  Bank deposits are guaranteed for up to RD$500,000 from the resources of the 
Contingency Fund and up to 30% of the preferred debt obligations of the financial intermediation 
entity being dissolved.113 
4.109.  As already mentioned, foreign and domestic investors may gain access to the financial 
intermediation market by acquiring shares in existing full-service banks and credit entities and/or 
by establishing new entities. Investments of between 3% and 30% of the paid-up capital depend on the Banking Supervisory Authority having "no objection". Any change in the ownership 
structure that presupposes the acquisition of mo re than 30% of the paid-up capital must be 
authorized by the Monetary Board.
114 
4.110.  Entities located abroad may offer technica l, economic and financial advisory services for 
the purpose of linking domestic banking and financial activities with foreign entities through 
the establishment of representative offices pr eviously authorized by the Monetary Board.115 
As of July 2014, there were 12 representative offices of foreign financial entities established in the Dominican Republic. 
4.111.  The Dominican Republic has a semi-public financial intermediation entity that is 95% 
State-owned. The National Bank for the Promotion of Housing and Production (BNV) was set up as a second-tier bank for channelling resources to the productive sectors and promoting the 
secondary mortgage market by providing coverage for Insured Mortgage Promotion Insurance 
(FHA).
116 There is a preliminary draft law for transforming the BNV into the Dominican Export 
Development Bank (BANDEX), which would operate as a first- and second-tier bank with the aim 
of promoting and developing the export sector by channelling resources into the productive sectors 
that sustain Dominican exports.117 In October 2014, the Executive requested the Senate to return 
the draft Law on the Conversion of the Bank fo r the Promotion of Housing and Production (BNV) 
into the Dominican Export Development Bank (BANDEX), so that certain articles which, 
as suggested by various sectors, needed furthe r consideration and discussion could be reviewed. 
4.112.  The Dominican Republic has a State-owned financial intermediation entity, the Reserve 
Bank, created by Law No. 586 of 24 October 1941 as an autonomous State entity with its own 
assets, vested with legal personality, and authorized to enter into contracts and sue on its own 
behalf and in its own right. As of 31 December 2014 it ranked first among Dominican full-service 
banks, concentrating 28.64% of total financial syst em assets. The Reserve Bank is authorized to 
engage in general banking, subject to the regu latory framework established for the financial 
system, and thus provides retail services similar to  those provided by private full-service banks. 
Moreover, the Reserve Bank receives all the deposits  of the public sector institutions and pays all 
the cheques issued by the Government. 
                                               
110 In 2014, to improve the stability of the financial system, the minimum paid-up capital was increased, 
a two-year period being allowed for making the adjustment. Monetary Board Resolution No. 140410-05 of 10 April 2014. 
111 For more information see Articles 41 and 44 of Law No. 183-02. 
112 The level of reserves that must be maintained in the Central Bank is established in the Monetary 
Board Instructions of 8 May 2013. 
113 Article 64 of Law No. 183-02. 
114 Article 39 of Law No. 183-02 and Article 14 of the Regulations. 
115 Articles 35 and 39 of Law No. 183-02 and Article 30 of the Regulations. 
116 Article 74 of Law No. 183-02 and online information from the BNV. Viewed at: http://www.bnv. 
com.do/index.php?option=com_cont ent&view=article &id=51&Itemid=68 . 
117 Online information from the Office of the Pr esident of the Dominican Republic. Viewed at: 
http://www.presidencia.gob.do/tipo-de-noticias/banco -nacional-de-fomento-de-la-vivienda-y-la-producci % 
C3%B3n-bnv . WT/TPR/S/319/Rev.1 • Dominican Republic 
- 111 - 
 4.113.  During the review period, the Dominican authorities developed the supervision of the 
financial system. In 2009, the process of implem entation of the Risk-Based Supervision Model 
began with the adoption of the basic model of Canada's Office of the Superintendent of Financial Institutions (OSFI). In April 2010, the risk-based supervision model began actually to be applied 
with the assistance of the OSFI. The model is being applied uniformly to all the financial 
intermediation entities, with account for the particular characteristics, nature, size, complexity and risk profile of each. The authorities have pointed out that the new supervision model is improving 
the assessment of all the relevant risks, with a preventive approach that makes it possible to 
identify weaknesses in the entity's risk management and internal controls, so that the controls can be corrected and continuously improved. In additi on, this approach prioritizes the entity's most 
critical and vulnerable areas and continuously assesses their future viability, with a view to 
preventing and/or mitigating possible adverse situations that could put financial stability at risk. 
4.114.  In 2013, the Banking Supervisory Authority carried out a self-assessment of the Basel Core 
Principles, for the purpose of identifying the impr ovements needed to strengthen the regulatory 
framework of the financial system. Out of the 29 Co re Principles for Effective Banking Supervision, 
2 resulted in a "compliant", 21 in a "largely compliant", 5 in a "materially non-compliant" and 1 in a "non-compliant" rating. In accordance with these results, in 2013 the Banking 
Supervisory Authority began strengthening the regu latory framework of the financial system with 
an Action Plan that envisages the amendment of Monetary and Financial Law No. 183-02 and of 11 Regulations (assessment of assets, market risk, liquidity risk, capital adequacy, corporate governance, risk concentration, related party credit, etc.). So far, for the purpose of consulting the 
interested sectors, the Monetary Board has author ized the publication of the draft amendments to 
the Regulations on liquidity risk  and corporate governance and the Regulations on guidelines for 
integrated risk management. The Banking Superv isory Authority is drawing up implementing 
instructions for these regulations and amendments to the rest of the legislation, in accordance with 
the action plan developed. 
4.115.  Within the context of the WTO, the Dominican Republic has ratified the Fifth Protocol to the 
General Agreement on Trade in Services, but has made few commitments. In general, the 
Dominican Republic authorizes up to 49% foreign participation in the capital of domestic banking services entities. Moreover, for some deposit serv ices the establishment of financial entities is 
subject to evidence of economic necessity.
118 
4.5.1.1.3  International financial zone regime 
4.116.  The Dominican Republic permits the supply of extraterritorial financial intermediation 
services. Law No. 480-08 of 11 December 2008 create d the legal regime for the establishment of 
international financial zones (ZFI) througho ut Dominican territory. However, in 2010 the 
authorities indicated that the regulatory provisions would not be issued until reforms had been introduced to prevent the perception that the user s of ZFIs could be released from the provisions 
of the Law on Money Laundering and not have to report their suspicions to the Financial Analysis 
Unit.
119 The draft law amending Law No. 480-08 was approved by the Senate in December 2013. 
On 8 August 2014 Law No. 312-14 amending several articles of Law No. 480-08 was enacted.120 
4.117.  In accordance with this Law, the ZFIs  are governed by "the highest international 
standards" of supervision, good governance, integrity and transparency, in particular in the 
struggle against money laundering and the financing of terrorism.121 The establishment of a ZFI 
requires the authorization of the Executive, subject to a favourable report by the National Financial 
Zones Council.122 The Council is the body responsible for supervising the operation of the ZFIs and, 
in its turn, is subject to the administrative supervision of the Monetary Board. The Council is composed of five members from the private sector. 
4.118.  Under the Law, ZFI operators and users need a licence issued by the National 
Financial Zones Council. An operator must be a legal person with authorized domicile in the 
                                               
118 WTO/World Bank I-TIP Services Database. Viewed at: http://i-tip.wto.org/services/default.aspx . 
119 Caribbean Financial Action Task Force (2010). 
120 Viewed at: http://www.consultoria.gov.do/consulta/Default.aspx . 
121 Article 2 of Law No. 480-08. 
122 Ibid., Articles 6(a) and 36. WT/TPR/S/319/Rev.1 • Dominican Republic 
- 112 - 
 Dominican Republic and at least RD$100,000 in equity capital.123 Moreover, the Council grants 
licences to users only after having carried out a due diligence investigation to satisfy itself that they are financial entities with an international reputation, registered, licensed and subject to supervision.
124 In the course of its investigation, the Council assesses the reliability of the 
information provided by the users and may call for any further information it deems necessary to 
complete the investigation. 
4.119.  ZFI users may provide services only to customers not established in the 
Dominican Republic.125 They may not provide other services which are not financial services or 
other related activities or support services.126 Financial services and other activities are subject to 
the financial services regulations established by the National Financial Zone Council.127 
4.120.  Several tax incentives are available to ZFI operators and users: (a) total exemption, 
for a period of 30 years, from various taxes, for example, the telecommunications development 
tax and the ISC on telecommunications, (b) exemption from additional levies or taxes on the negotiated price of energy and power, (c) the tax- free purchase of fuel, (d) the inapplicability of 
the obligation to deposit and maintain in the Agricultural Bank the sums required from their 
lessees as advances to guarantee the payment of re nt, and (e) the possibility of repatriating their 
capital and the profits derived from their oper ations free of taxes and charges and in freely 
convertible currency.
128 
4.5.1.2  Insurance 4.121.  Between 2008 and 2013, the assets managed by the insurance companies recorded 
nominal growth of 71.6%, while premiums paid gr ew by 41.7%. Despite the increasing volume of 
premiums, the insurance penetration rate remained at a modest level of about 1.3% of GDP 
(Table 4.11). In 2012, the annual cost of insurance for Dominicans, or density rate, was RD$289,110 per capita. Out of the total premiums paid during the review period, 44% was ceded 
in reinsurance, mostly abroad. In December 2014, the insurance market consisted mainly of 
33 companies, of which 23 were Dominican and 10 foreign-owned.
129 The sector is highly 
concentrated, with the top 5 insurers contro lling 80% of the assets and premiums paid.130 
There are 134 reinsurance companies related with Dominican insurers, of which 2 are on 
Dominican territory and the rest abroad. 
Table 4.11 Insurance and reinsura nce market indicators, 2008-2013 
(RD$ billion, unless otherwise indicated) 
 2008 2009 2010 2011 2012 2013 
Assets 22.2 25.5  28.1 31.4 34.6 38.1 
Net premiums paid  21.8 23.2 24.8 26.8 29.2 30.9 
As % of GDP 1.4 1.4 1.3 1.3 1.3 1.2 
Personal insurance  3.6 4.6 5.1 5.9 6.9 7.8 
Life insurance  2.5 3.4 3.5 4.0 4.5 5.0 
General insurance  15.9 16.2 17.2 18.5 19.6 20.4 
Othera 2.3 2.4 2.5 2.4 2.8 2.7 
Reinsurance premiums ceded 8.8 9.9 10.7 12.3 13.3 14.2 
Abroad  7.4 8.4 9.0 10.8 11.7 12.5 
Locally 1.4 1.5 1.7 1.5 1.6 1.7 
a Including bonds. 
Source: Statistics of the Insura nce Supervisory Authority in Boletín Estadístico, viewed at: 
http://superseguros.gob.do/portal , and data provided by the authorities. 
                                               
123 Ibid., Article 39. 
124 Ibid., Articles 18(d) and 36. 
125 Ibid., Article 2. 
126 For more information, see Article 42 of Law No. 480-08. 
127 Ibid., Articles 51-52. 
128 Ibid., Articles 44-50. 
129 BMI Compañía de Seguros, S.A. and Cuna Mutual  Insurance Society Dominicana (United States); 
Bupa Dominicana, S.A. (United Kingdom); Mapfre-BHD Seguros, S.A. (Spain); Seguros Sura (Colombia); Scotia Seguros, S.A. (Canada); Bane sco Seguros S.R.L and Seguros Constitu ción, S.A. (Bolivarian Republic of 
Venezuela); and Worldwide Seguros, S.A. and General de Seguros, S.A. (Panama). 
130 Seguros Universal, Seguros Banreservas, MAPFRE  BHD Compañía de Seguros, La Colonial de 
Seguros and Seguros Sura. Insura nce Supervisory Authority (2013). WT/TPR/S/319/Rev.1 • Dominican Republic 
- 113 - 
 4.122.  The operations of the insurance and reinsurance companies and intermediaries are 
supervised and monitored by the Insurance Supervisory Authority, an entity attached to the Ministry of Finance and created and governed by Law No. 400 of 9 January 1969.
131 
4.123.  The insurance industry's legal regime is set out in Law No. 146-02 on Insurance and Bonds 
of 9 September 2002 and in the resolution s issued by the Supervisory Authority.132 
The Law doesnot have any regulations and during the review period it remained unchanged. In 2008, the United States Agency for International Development (USAID) provided the 
Supervisory Authority with technical assistance to support the revision of the Law and its 
alignment on the provisions of the free trade ag reement concluded with Central America and the 
United States (CAFTA-DR).
133 This led to the formulation of a preliminary draft revision and 
alignment of Law No. 146-02 which, at the end of 2014, was in process of being examined. 
4.124.  The Dominican Republic allows access to the insurance and reinsurance services market to 
foreign companies whose country of origin grants reciprocity to Dominican companies.134 
To operate locally, an insurer or reinsurer must apply to the Supervisory Authority for 
authorization. The requirements and the documents that need to be submitted vary with the 
nationality of the company. In addition to meeting the requirements imposed on Dominican 
companies, foreign firms must be set up as limited  companies. The company must be registered in 
accordance with the laws of the country and must establish a guarantee fund amounting to 
RD$8.5 million of its authorized capital. Foreign persons must own 51% of its capital in the form of registered shares and it must have offices open in the Dominican Republic, have operated in the insurance sector in its country of origin for more than five years, be located and maintain the 
minimum capital required in the Dominican Republic and provide, in Spanish, a certificate from the 
regulatory body in its country of origin showing that it is authorized to engage in the branches of insurance indicated in its application for authorization. It must also provide a certificate from its 
country of origin permitting it to operate in the Dominican Republic. The authorization process 
includes the examination of the application at a public hearing, the issuing and publication of the authorization resolution and the registration of the company.
135 
4.125.  Under the requirements laid down (see above), foreign insurance companies may not 
establish branches in the Dominican Republic. However, within the framework of the CAFTA-DR, the Dominican Republic undertook that, at the latest by 2011, all foreign insurance/reinsurance companies would be able to establish branches. As of November 2014, the Dominican Republic had 
still to implement this undertaking. In this connect ion, the authorities have pointed out that this is 
envisaged in the new preliminary draft Insurance Law. To allow branches to be established, the Dominican Republic may demand that they comply with the integrity and solvency requirements 
for insurers established as limited companies imposed by the Law on Insurance and Bonds.
136 
4.126.  There has been no change in the ma rket access conditions for intermediaries. 
Agents, brokers and experts must be licensed by the Supervisory Authority. There is an exception 
for insurance companies which may act as intermediaries without the need for a licence. 
Where natural persons are concerned, foreigners seeking to practise as intermediaries must be permanent residents and be able to demonstrate six years of residence before applying for the licence and after having obtained permanent residence. As of 31 December 2014, 
there were 770 insurance brokers, 3,052 agents , 51 adjusters and three reinsurance brokers 
operating in the country. 
4.127.  There are no restrictions on the activities that may be undertaken in the insurance sector. 
The same company may operate in both the general and personal branches.
137 An authorized 
company wishing to offer new products must apply for authorization to the Supervisory Authority, which has 30 days within which to rule.
138 
                                               
131 The Secretariat of State for Finance became th e Ministry of Finance in 2010 (Decree No. 56-10 of 
6 February 2010). 
132 Article 237 of Law No. 146-02. 
133 USAID (2008). 
134 Article 21 of Law No. 146-02. 
135 Ibid., Articles 12-35. 
136 Annex III of the List of Reservations of the Do minican Republic. Articles 159-167 of Law No. 146-02. 
137 The operations authorized within each branch  are contained in Article 10 of Law No. 146-02. 
138 Articles 16 and 22 of Law No. 146-02. WT/TPR/S/319/Rev.1 • Dominican Republic 
- 114 - 
 4.128.  In general, there is a local procurement obligation for certain insurance contracts, 
which must be concluded in the Dominican Republic  and have the prior approval of the Supervisory 
Authority to provide coverage there. This includ es the following insurance: (a) life and health, 
(b) property situated in the country and Dominican interests abroad, (c) ships' hulls, aircraft and 
motor vehicles licensed in the Dominican Republic or temporarily entering the country, and 
(d) import cargo transport. The local procurement obligation may be suspended if signed regional 
trade agreements so allow or where excess line insurance is concerned.139 The local procurement 
obligation does not apply to reinsurance operations. Foreign reinsurance companies authorized by 
the Supervisory Authority may carry out their activities without being established in the Dominican Republic. The ceding domestic company is responsible for handling the authorization request.
140 For the moment, the Supervisory Authority is not authorizing the supply of 
cross-border reinsurance services. The authorities have pointed out that these will be incorporated 
in a new Insurance Law, in accordance with the commitments made under the CAFTA-DR. 
4.129.  Insurance companies may set their premiums freely. However, the tariffs must be 
deposited with the Supervisory Authority for appr oval and evaluation. Once approved, the tariffs 
may not be changed unless re-deposited.141 If the technical parameters have not been established, 
the Supervisory Authority will not be able to carry out the evaluation process. The insurance 
companies submit their model policies for the Supervisory Authority's approval. These models 
consist of the form, the tariffs and the rules or conditions of the model contract-policy. The insurers must carry out actuarial studies for the purpose of determining the tariffs. 
4.130.  The Law on Insurance and Bonds authorizes mergers between insurance and reinsurance 
companies, subject to the approval of the Superv isory Authority. The merger will be recommended 
by the Supervisory Authority if the financial situation of a company is not such as to ensure the fulfilment of its obligations. After a merger, the co mpany that maintains the business is entitled to 
a tax credit of 1% of the amount of the premiums  collected in the last 12 months by the company 
or companies that has (have) ceased to operate. The time limit for making use of the credit is two years. Disputes between insured parties an d the insurer concerning insurance policies are 
submitted to an arbitration procedure before any court proceedings are initiated.
142 
4.131.  Premiums paid are subject to the ISC (16%). Agricultural policies are exempt from 
payment of the tax.143 The provision of insurance services  is exempt from payment of the 
ITBIS tax.144 
4.132.  The Dominican Republic has made few multilateral commitments in the area of insurance 
services, and current practice is considerably more liberal than the bindings under the GATS. 
For example, according to the commitments assumed under the GATS, foreign participation in 
domestic insurance and reinsurance companies is allowed only up to 49% of the capital.145 
However, the authorities have pointed out that the Dominican Republic is a member of the Association of Latin American Insurance Supervisors (ASSAL) and has undertaken commitments 
with respect to insurance services within that association. 
4.5.1.3  Securities market 4.133.  The principal legal instrument governing the securities market is the Securities Market Law 
No. 19-00, together with its implementing Regulations No. 664-12 of 7 December 2012. The scope 
of the Law extends to the public offering of securities, in both national and foreign currency, 
their issuers, the commodity exchanges and the secu rities market participants. The provisions of 
the Law and its Regulations also apply to any activity related with the public offering of securities. 
4.134.  The activities of the securities market in the Dominican Republic are regulated by the 
Securities Supervisory Authority (SIV). The SIV is an autonomous State institution, created by the 
                                               
139 Ibid., Article 6. 
140 Ibid., Articles 23-26. 
141 Ibid., Articles 89-93. 
142 Ibid., Article 105. 
143 Article 383 of the Tax Code (as of 19 February 2014). The Tax Code can be viewed at: 
http://www.dgii.gov.do/legislacion/codigoT ributario/Paginas/codigoTributario.aspx . 
144 Article 344 of the Tax Code (as of 19 February 2014). 
145 WTO/World Bank I-TIP Services Database. Viewed at: http://i-tip.wto.org/services/default.aspx . WT/TPR/S/319/Rev.1 • Dominican Republic 
- 115 - 
 Securities Market Law, with legal personality and its own assets, whose main functions are to 
promote, regulate and supervise the national securities market.146 
4.135.  As of 30 September 2014, the following were enrolled in the Securities and Commodities 
Market Register (RMVP): 23 external auditors, 8 investment fund management companies, 
1 commodity exchange, 1 stock exchange, 2 rating  agencies, 168 securities dealers (of which 89 
were active), 1 centralized securities depository , 1 public offering trust company, 26 securities 
issuers, 19 brokerage firms, and 2 securitization companies. 
4.136.  The securities market in the Dominican Republic is in its infancy. Its regulations were not 
approved until December 2012, and the level of activity is still quite limited. There is a single stock exchange, the Stock Exchange of the Dominican Re public (BVRD), which obtained a licence from 
the SIV in October 2003 and has been operating since 2005.
147 The BVRD deals only in bonds, not 
shares. As of 30 September 2014, on the primary market there were 16 peso issues in circulation 
with a value of RD$16,375.83 million (some US$375 million), of which 55.4% was accounted for by Banco Popular Dominicano securities. There were also in circulation three foreign-currency 
issues with a total value of US$150 million: 100% of the dollar issues correspond to securities 
issued by electricity subsector entities. On the secondary market, which is concerned with the transfer of bonds previously placed on the primar y market and provides liquidity for bond-holders, 
transactions amounted to RD$103,973.5 million (US$2,379 million) in national currency and 
133 million in foreign currency (US dollars).
148 Moreover, as of 30 September 2014, the SIV had 
approved four closed-end investment funds, two in September 2014, for a total RD$7.2 billion (US$165 million) and a single open-ended investment fund. However, by the end of 
November 2014, only the shares of one of the closed-end funds, the Fondo Nacional Pioneer 
United Renta Fija , totalling RD$2 billion, had been placed on the primary market.
149 
4.137.  The Securities Market Law specifies that the request for approval of a public offering must 
be accompanied by a prospectus which, among other things, contains economic and financial 
information for at least the three years of operatio n of the company prior to the request, as well as 
the characteristics and a risk assessment of the securi ties offered. Public offerings of securities by 
companies that do not meet the requirement of a three-year operating period must be registered 
by the SIV and specially regulated as a risk issue and may only be traded in special sessions of the exchange, after the investing public has been noti fied of the nature of the risk and the related 
uncertainty. Public offerings of securities issued by Dominican legal persons made outside the 
national territory must have received the prior approval of the SIV. Foreign legal persons that 
make a public offer of securities in the Dominican Republic on the primary market must establish corporate domicile in the country. Securities issued by foreign legal persons to be traded in the 
Dominican Republic on the secondary market must be traded through a local securities 
intermediary, which must produce a certificate of re gistration with the securities market regulator 
of the country of origin of the security. Issues of  securities organized by central government or the 
Central Bank do not require SIV approval; however, they must be entered in the Securities and 
Commodities Market Register. 
4.138.  The objective of the Strategic Plan 2013-2 015 is gradually to bring the securities market 
into a position that enables it to enjoy a high degree of liquidity, depth and transparency, under a 
form of supervision and a regulatory framework th at reduce the likelihood of mishaps that could 
undermine the socio-economic development of the Dominican Republic.
150 The Plan also aims 
to change the Securities Market Law and its Regulations; reformulate and create a set of rules 
that supports the provisions of the Law and its Regulations; and draw up rules for the 
commodities market. 
                                               
146 SIV online information. Viewed at: http://www.siv.gov.do/sobre-nosotros/-quienes-somos . 
147 BVRD online information. Viewed at: http://bvrd.com.do/quienes-somos . 
148 Securities Supervisory Authority of the Dominican Republic (2014). 
149 Closed-end investment funds have  a fixed duration and are made up of contributions from investors 
within a process involving a public offering of shares. The shares placed with the public are not directly redeemable by the fund, but must be bought and sold  on stock exchanges. In the case of mutual or 
open-ended funds, investors may join or leave at any time, so the amount of the assets and the value of the 
shares are variable. They are of indefinite duration and shares placed with the public are directly redeemable 
by the fund. 
150 Securities Supervisory Authority (2013). WT/TPR/S/319/Rev.1 • Dominican Republic 
- 116 - 
 4.5.2  Telecommunications 
4.139.  During the review period, the telecommunications subsector was one of the most dynamic 
in the Dominican economy. The main changes in the subsector during the period 2008-2014 include increases in the percentage of value added, foreign direct investment (FDI) flows, 
total telephone lines (fixed and mobile) and teledensity (fixed and mobile). Also noteworthy are 
the increases in total Internet accounts, the number of Internet users and coverage (access in rural areas), and penetration. The period 2008-2014 was also characterized by increased 
competition. Moreover, in 2014, the first internationa l invitation to tender for the exploitation of 
frequencies in the provision of mobile public telecommunications services in the history of the Dominican Republic was issued by the Dominican Telecommunications Institute (INDOTEL); as a result, the company CLARO was awarded 40 MHz in the 1700/2100 MHz bands, while the 
company Orange (Grupo Altice) was awarded 19MHz in the 900 MHz band, which yielded a total 
of US$70.5 million. 
4.140.  The segments with the greatest growth were mobile telephony and mobile broadband 
Internet (Table 4.12). The fixed telephony segmen t remained unchanged with a penetration index 
of around 10%. In September 2014, overall teledensity exceeded 93.4%, while the figure for mobile telephony was 81.2%; this result reflects the elimination of more than one million prepaid 
mobile lines with respect to which the providers were unable to verify the identity of the owner, 
after a weeding-out process ordered by INDOTEL.  The number of Internet accounts rose from 
300,000 in 2008 to 3.54 million in September 2014.
151 Although there was a decline in the levels 
of investment in 2011 and 2012, it is estimated that from January 2008 to December 2014 the 
telecommunications subsector received flows of FDI amounting to approximately US$1.35 billion, 
equivalent to 7.8% of the total, according to Central Bank data for the period 2008-2013. In the period from January to June 2014, the preliminary figure for FDI was US$168 million, 
making telecommunications the second most important activity for foreign investors. The largest 
investors are from Mexico, Luxembourg and the United States.
152 The funds are mainly being 
invested in new services such as wireless broadband, in extending coverage to rural areas, and in 
Internet Protocol (IP) telephony and television, together with LTE mobile services networks and 
satellite television. Acquisitions are also being made abroad, which explains the negative data for 2012. Although the mobile telephony network has spread throughout almost the entire country and the great majority of townships have 3G coverage, the authorities have noted that there are 
social sectors and areas which the universal service has still to reach. 
Table 4.12 Telecommunications indi cators, 2008-2014 (30 September)  
 2008  2009  2010  2011  2012 2013 2014  
Communications share of GDP 
(at current prices) (%)  2.0 2.1 
 1.9 
 1.8 
 1.7 
 1.7 
 1.6 
 
Communications share of GDP 
(at constant prices, 1991)  15.6 
 17.2 17.3 16.3 16.2 16.2 16.2 
Telecommunications sector value added 
(US$ million) 970 993 1,046 1,032 1,041 1,048 755 
Investment (US$ million) 
% total FDI  213.0 
7.4 180.5 
8.3 500.2 
26.4 53.6 
2.4 -21.2 
-0.7 187.8 
9.4 256.7 
8.4  
Telecommunications services  (Millions, unless otherwise indicated) 
Total number of lines 
Number of fixed lines 
Number of mobile lines 8.2 
1.0 
7.2 9.6 
1.0 
8.6 9.9 
1.0 
9.9 9.8 
1.0 
8.8 9.9 
1.0 
8.9 10.2 
1.0 
9.2 9.2 
1.1 
9.4 
Number of Internet accounts  
Broadband, fixed (%) Broadband, mobile (%) Other (%)  0.3 
67.5 13.1 19.4 0.4 
66.3 23.5 10.2 0.6 
56.2 39.1 
4.7 1.2 
32.7 65.2 
2.1 2.0 
20.9 77.5 
1.6 3.2 
14.2 83.2 
2.6 3.5 
14.0 83.3 
2.7 
Teledensity  (%) 
Total lines 
Fixed lines Mobile lines 88.3 
10.6 77.7 102.3 
10.3 92.0 104.5 
10.7 93.8 102.7 
11.2 91.5 102.9 
10.6 92.3 105.2 
11.2 94.1 106.6 
12.3 94.2 
                                               
151 Information provided by INDOTEL. 
152 CEI-RD (undated). WT/TPR/S/319/Rev.1 • Dominican Republic 
- 117 - 
  2008  2009  2010  2011  2012 2013 2014  
Internet 
Broadband, mobile (%)  3.5 
0.5 4.6 
1.1 6.6 
2.6 12.6 
8.2 21.2 
16.4 32.5 
27.0 35.6 
29.6 
Tariffs ($RD per minute) 
Fixed telephony .. .. .. 1.22 1.27 1.16 1.27 
Mobile telephony (prepaid) .. .. .. 7.09 6.10 7.22 6.29 
.. Not available. 
Source: Data provided by the Centra l Bank, INDOTEL and the National St atistics Office (ONE). Viewed at: 
http://www.bancentral.gov.do,  http://www.indotel.gob.do  and http://www.one.gob.do . 
4.141.  The State does not participate in telephone or Internet services companies. Foreign capital 
participation is permitted in all areas, with the sole exception of public broadcasting services, where control of the company must be in the hands of a Dominican national. At present, there are 
18 companies providing telephone services, 5 of which also offer Internet services. Six other 
companies provide Internet services, although ther e are others authorized to supply these services 
that are non-operational.
153 Claro (Mexico) is the largest provider with 69% of the fixed telephony 
market, 52% of mobile telephony and 64% of In ternet services. Tricom (Luxembourg) comes 
second in fixed telephony (23%), fourth in mobile telephony (4%) and third in Internet services (4%); Orange Dominicana (Luxembourg) is the second-largest provider in mobile telephony 
(37%), as well as in Internet services (31%); Trilogy (United States) is the third-largest provider 
in both fixed telephony (6%) and in mobile telephony (7%). To round off the composition of the subsector, the smallest percentage contribution s are those made by the providers Skymax with 
2% in fixed telephony, and Wind Telecom (Dominican Republic), with 1% in Internet services. 
The multinational group Altice entered the Domi nican market in 2014 with the acquisition of 
Tricom and Orange Dominicana. The share transfer  was approved by the regulatory body which, 
however, established a commission to investigate whether market conditions of free and fair 
competition were guaranteed.
154 Between January 2008 and June 2014 a total of 26 concessions 
were granted for the provision of public cablecasti ng services, 8 for the provision of public fixed 
telephony services, and 5 for the provision of telecommunications carrier services. 
4.142.  Within the framework of the National Development Strategy 2030 (END) approved by 
means of Law No. 1-12, the Dominican Republic has identified the goal of "achieving universal access and the productive use of information and communication technologies (ICT)". The idea is, among other things, to expand connectivity and broadband Internet access at affordable prices. 
The full realization of this objective depends upon improving the infrastructure by rolling out a 
fibre-optic trunk network in the final phase of planning.
155 The first National Public Sector 
Multiannual Plan linked with the END establishes a series of priority measures for the development 
of the subsector during the period 2013-2016, for example, enlarging the space within the 
radiofrequency spectrum for the use of wireless telephone and Internet networks.156 
4.143.  The regulatory framework for public telecommunications services comprises the General 
Law on Telecommunications (LGT) No. 153-98, which entered into force on 27 May 1998, and the 
regulations issued by INDOTEL's Board of Directors.157 During the review period, there were no 
changes in the LGT, which governs the installation, maintenance and operation of the network, the provision of services and the supply of tele communications equipment. However, a series of 
technical changes was implemented; these modified certain regulations, such as the General 
Regulations on Number Portability (implemented du ring the review period), the Regulations on the 
Telecommunications Development Fund (new regula tions were approved), the General Regulations 
on Interconnection and the General Regulation s on the Telephone Service. Implementing 
regulations were also approved for Law No. 126-02 on E-Commerce and Digital Documents and 
                                               
153 Online information from INDOTEL. Viewed at: http://www.indotel. gob.do/index.php /sector-de-las-
telecomunicaciones . 
154 Resolution No. 030-14 of the INDOTEL Board of Directors of 10 July 2014. 
155 Article 25 of Law No. 1-12 of 25 January 2012, and online information from INDOTEL. Viewed at: 
http://www.indotel.gob.do/index.php/cgblog/1626/INDOTEL-convoca-licitacion-proyecto-llevara-telefonia-
acceso-Internet-municipios-dist-municipales . 
156 National Public Sector Mult iannual Plan 2013-2016. Viewed at: http://economia.gob.do/mepyd/ 
publicacion/plan-nacional-plurianual-del-sector-publico-2013-2016 . 
157 Draft INDOTEL Regulations are subject to a publ ic consultation process prior to approval by 
Resolution (LGT, Article 93.1). The Regulations can be viewed at: http://www.indotel.gob.do/index.php/normativas . WT/TPR/S/319/Rev.1 • Dominican Republic 
- 118 - 
 Signatures, the Basic Technical Numbering Plan was amended, and the National Frequency 
Allocation Plan was approved by means of Decree No. 520-11. 
4.144.  INDOTEL is the body responsible for regu lating and supervising the development of the 
telecommunications market. The Institute is ma ndated to oversee the universal service, 
a framework of free and fair competition, the protec tion of customer rights and the efficient use of 
the radiofrequency spectrum.158 INDOTEL is also in charge of the implementation of the priority 
measures for the development of public telecommunications services set out in the National Public 
Sector Multiannual Plan 2013-2016 (see above). 
4.145.  The Dominican Republic conducts an active policy of universal access to 
telecommunications through INDOTEL, which has formulated a Social Policy on the Universal Service
159 and manages the Telecommunications Development Fund (FDT), which finances projects 
in low-income areas and projects that promote social inclusion.160 At present, the FDT is giving 
priority to financing projects to expand the infrastructure and use of broadband Internet. 
The Fund receives financial contributions from various sources, including the Contribution to 
Telecommunications Development (see below). Projects to be financed by the FDT are identified in 
INDOTEL's Biennial Project Plans.161 The implementation of the pr ojects is awarded to private 
sector enterprises on the basis of competitive bidding, in accordance with the Law on Government 
Procurement. Companies that fail to meet its requirements will not be able to participate in future 
tender proceedings.162 The Biennial Plan for 2014-2015 has nine projects budgeted at 
RD$3,180 million.163 
4.146.  The provision of telecommunications se rvices is authorized by INDOTEL through 
concessions (basic services) or registration in the Special Register (value added services). 
In addition, a licence is needed if the pr ovision of the service involves the use of the 
radiofrequency spectrum. During the review period , there were no changes in the requirements or 
procedures for granting these authorizations. Every concession application is subject to a public 
consultation process before the contract is signed, while licences are granted by means of competitive bidding due to the space limitations of  the radiofrequency spectrum. Licences remain 
valid for the same length of time as the concession (5 to 20 years
164) or the registration (5 years) 
with which they are linked. Concessions and licences are granted only to companies incorporated in the Dominican Republic. Companies registered in the Special Register may be established abroad, but must elect domicile in the Dominican Republic if the registration application is for 
services that are going to be provided directly  by the registration-holder to end users in the 
Dominican Republic.
165 
4.147.  Enrolment in the Special Register is also compulsory for companies that act as 
intermediaries and market, on their own behalf, se rvices they have contracted out to authorized 
enterprises. INDOTEL prohibits resale if it considers that the quality of the initial service will be lost.
166 
4.148.  The operators are left free to set consumer prices and agree amongst themselves on the 
interconnection charges and the accounting rate.167 The Institute may intervene in price setting if 
it considers that the market conditions are not such as to ensure effective and sustainable competition. Likewise, the Institute may set the interconnection charges if the operators fail to 
                                               
158 LGT, Article 76, Regulations on Free and Fair Competition for the Telecommunications Sector and 
General Regulations on the Telephone Service. 
159 Resolution of the INDOTEL Board of Directors No. 024-10 of 2 March 2010. 
160 LGT, Articles 43-44 and 49-50, FDT Regulations, and online information from INDOTEL. Viewed at: 
http://www.indotel.gob.do/index.php/indotel/fondo-de-desarrollo-de-las-telecomunicaciones . 
161 The Biennial Plans are approved by Resolution. The process of drawing up a Biennial Plan includes 
the publication of the draft Plan in a national newspa per and a public consultation  procedure. The Biennial 
Plans can be viewed at: http://www.indotel.gob.do/index.php/do cumentos/planes-bienales-documentos . 
162 LGT, Article 44, and Article 9.7 of the FDT Regulations. 
163 The Plan for 2014-2015 is contained in Resolution No. 001-14. 
164 The applicant company determines th e term of the conc ession contract. 
165 Article 30 of the Regulations on Concessions, Special Registrations and Licences for Providing 
Telecommunications Services in the Dominican Republic. 
166 LGT, Article 36, and Regulations on the Resa le of Public Telecommunications Services. 
167 The accounting rate is the tariff charged by the company that operates a country's telephone 
network for calls from another country. WT/TPR/S/319/Rev.1 • Dominican Republic 
- 119 - 
 agree. Interconnection agreements must be submitted to INDOTEL, which may raise objections. 
The Institute does not intervene in the setting of  accounting rates but it reviews the agreements 
reached.168 INDOTEL did not intervene in the setting of  consumer prices between 2008 and 2013. 
However, it did intervene in the case of co nnection charges. In 2011, INDOTEL amended the 
General Regulations on Interconnection and ordered the submission of reference interconnection 
bids and the alignment of interconnection contracts on the new provisions of the Regulations. In July 2012, the time allowed for the alignment and renegotiation of the contracts having expired, 
INDOTEL objected to the charges agreed by the main providers on the grounds that they might 
contain elements that would not ensure effective and sustainable competition. This measure was appealed by the providers until INDOTEL endorsed it  in January 2014, initiating its intervention in 
the determination of the interconnection charges in conformity with the procedure laid down 
in the Regulations on Service Tariffs and Costs. The authorities have indicated that this 
process is ongoing. 
4.149.  Telecommunications services are subject to three taxes. The Contribution to 
Telecommunications Development (CDT), intended to finance the Telecommunications 
Development Fund and INDOTEL (see above)
169, is a 2% tax levied on the gross amount of the 
end customer's invoice. The operators also pay CDT on the income obtained by deducting costs 
from earnings under the heading of international traffic.170 In addition to the CDT, the customers 
pay the ISC (10%) and the ITBIS, at a rate of 16% up until 2012, 18% in 2013 and 2014, and 16% again as from 2015.
171 The ITBIS and the ISC are not payable in international fixed 
and mobile incoming call traffic. The ITBIS is al so not payable by foreign customers in mobile 
roaming traffic. 
4.150.  The Dominican Republic has tax incentive laws for business customers. Export companies 
which benefit from Law No. 392-07 on Industrial Competitiveness and Innovation172 are entitled to 
request a refund of the ISC on telecommunications.173 Likewise, the Dominican Republic has 
enacted Law No. 480-08, under which the operators and users of international financial zones are totally exempt from the ISC on telecommunication s and from the CDT. The Law sets a limit of 
30 years on the exemption granted to the operators.
174 There are no other specific tax and/or tariff 
incentives available to telephone and Internet service providers. 
4.151.  The General Law on Telecommunications states that the telecommunications market is 
governed by the rules of free and fair competition and defines anti-competitive practices. 
Moreover, operators are prohibited from applying unequal conditions for equivalent services that 
place some competitors at a disadvantage relative to others.175 
4.152.  Disputes between providers and customers' complaints against operators are submitted to 
INDOTEL. In the case of disputes, INDOTEL's decisions may be appealed in the first instance to the 
Institute itself, in the second instance before the Tax and Administrative Tribunal, and in the third instance before the Supreme Court of Justice.
176 
4.153.  In 2008, accounting reports began to be received from the operators, which allowed 
INDOTEL to maintain a regulatory accounting system which it utilizes as a source of information for carrying out various studies and preventing cross subsidies and any other practice that might have an adverse effect on competition. All companies that offer more than one service on 
                                               
168 LGT, Articles 39-42 and 57, and Regula tions on Service Tariffs and Costs. 
169 Resolution No. 150-04, establishing the mechan ism for determining the percentage of the CDT 
intended for the FDT and for financing the regulatory bo dy, stipulates that the CDT percentages to be applied 
during the 12 months of each year for financing the oper ations of the regulatory body, as well as for financing 
FDT projects, are to be fixed as a function of the INDOTEL income and expenditure budget established and 
approved for each fiscal year. 
170 LGT, Articles 45-48, and Regulations on the Collection of the CDT. 
171 Online information from the DGII. Viewed at: http://www.dgii.gov.do/dgi i/principalesImpuestos/ 
Paginas/default.aspx . 
172 Implemented by Decree No. 674-12 of 7 December 2012. 
173 Article 25 of Law No. 392-07 of 4 December 2007. 
174 Articles 44-45 of Law No. 480-08 of 11 December 2008. 
175 LGT, Article 8. 
176 LGT, Article 79, Regulations on the Settlement of Disputes between Users and Providers of Public 
Telecommunications Services and Regulations on the Settlement of Disputes between Providers of Telecommunications Services. WT/TPR/S/319/Rev.1 • Dominican Republic 
- 120 - 
 concession are under a legal obligation to keep separate accounts. As no concession is required to 
provide value-added services (Article 35 of the LGT), the obligation to keep separate accounts does not apply in the case of this Article. 
4.154.  The process of introducing number portability in the Dominican Republic began in 2006 
with the approval of the Regulations on Number Portability, which gave operators three years to 
start up the service. Number portability has been implemented, among other reasons, to fulfil the 
commitment made by the Dominican Republic when it signed the CAFTA-DR.
177 
4.155.  Number portability in fixed and mobile telephony entered into force in 2009. 
Its introduction has been gradual, at both service and geographical levels. At the moment, customers can only port a number within the same service (mobile or fixed) and within the same geographical charging zone (in the case of fixed telephony). The administrative and technical costs 
of number portability are borne by the operators and recouped by means of a regulatory fee of 
RD$80 paid by each customer who opts for the service.
178 The impact of number portability on 
fixed and Internet telephony has led to a substantial reduction in tariffs. Although mobile tariffs 
have not fallen, number portability has also intensified competition between operators, which have 
multiplied their tariff plan offers. However, there is room to improve the time required to port a 
number, which usually exceeds that laid down (24-72 hours). Moreover, it is customary to commit 
customers to a long-term contract, which discourages use of the service. At present, INDOTEL is in 
process of amending the Regulations on Number Portability so as to improve this aspect. As of the end of 2013, a total of 204,157 numbers had been  ported since they entered into force. 
By June 2014 the total had risen to 232,315. 
4.156.  Within the framework of the WTO, the Domi nican Republic ratified the Fourth Protocol to 
the GATS on basic telecommunications services in 1998.
179 I n  i t s  S c h e d u l e  o f  C o m m i t m e n t s ,  
the Dominican Republic allows these services to be provided through commercial presence. 
Foreign companies must abide by the rules, which means that they must be incorporated in the 
Dominican Republic and hold a concessi on granted by INDOTEL (see above).180 Moreover, 
the Dominican Republic submitted an improved o ffer in which it undertook, among other things, 
to guarantee the interconnection of public telecommunications services and fair competition 
practices.181 In accordance with this offer, INDOTEL approved the General Regulations on 
Interconnection in 2002 and the Regulations on Free and Fair Competition for the Telecommunications Sector in 2005. 
4.5.3  Transport 
4.5.3.1  Air transport 4.157.  Air transport is of great importance for the Dominican Republic. It is estimated that 95% of 
visitors arrive in the country by air. Since 2008, air traffic at the eight Dominican international 
airports has steadily increased (Table 4.13) encouraged by a liberalized air transport policy (see below).
182 The Dominican Republic has an air connectivity which, in 2013, included 
226 scheduled routes and 584 charter routes. Passenger traffic is channelled mainly through the 
airports of Punta Cana, Las Américas (Santo Domingo) and Puerto Plata.183 Air cargo is handled 
                                               
177 According to Article 13.3.3 of the Treaty, "each Party will ensure that the providers of public 
telecommunications services on its te rritory offer number portability, to th e extent technically feasible, in a 
timely fashion and on reason able terms and conditions". 
178 In 2013, the Constitutional Court declared Resolution of the INDOTEL Board of Directors No. 080-09 
of 11 August 2009, establishing payment of the regulato ry fee for all customers, to be unconstitutional. The 
Court ordered the amendment of the Resolution and the refunding of the regulatory fee to the customers who had not made use of the service. Decision TC/0161/13 of the Constitutional Court of 12 September 2013. 
179 LGT, Article 118.3. 
180 Online information from the WTO. Viewed at: 
http://www.wto.org/spanish/tratop_s/serv_s/telecom_s/telecom_highlights_commit_exempt_s.htm#country , 
and WTO/World Bank I-TIP Services Database. Viewed at: http://i-tip.wto.org/services/default.aspx . 
181 Reference document viewed in WTO document GATS/SC/28/Suppl.2 of 11 April 1997, and online 
information from the WTO. Viewed at: http://www.wto.org/spanish/tratop_s/serv_s/telecom_s/tel23_s.htm . 
182 Cibao (Santiago province); Gregorio Luperón (Puerto Plata); La Isabela Joaquín Balaguer 
(Santo Domingo); Las Américas José Francisco Peña Gómez (Santo Domingo); Ca sa de Campo La Romana 
(La Romana); María Montés (Barahona); El Catey Presidente Juan Bosch (S amaná); and Punta Cana 
(La Altagracia). 
183 National Statistics Office data. Viewed at: http://www.one.gob.do . WT/TPR/S/319/Rev.1 • Dominican Republic 
- 121 - 
 mainly by the airports of Las Américas, Cibao (S antiago province), Puerto Plata and Punta Cana. 
The airports of Cibao and Punta Cana serve as ce ntres for both the collection and the export of 
goods. In addition, Punta Cana is used for exporting goods to non-traditional destinations by taking advantage of the significant number of charter flights it receives.
184 
Table 4.13 Air traffic, 2008-2013 
 2008 2009 2010 2011 2012 2013 
Aircraft (units)  68,533 74,779 76,402 77,891 81,270 .. 
Scheduled  54,115 61,866 61,142 63,731 68,186 .. 
Charter  14,418 12,913 15,260  14,160  13,084 .. 
Passengers (million)  8.9 9.0 9.5 8.8 10.4  10.5 
Embarked  4.4 4.5 4.9 4.4 5.3 .. 
Scheduled 3.3 3.7 4.1 3.7 4.4 .. 
Charter  1.2 0.8 0.8 0.7 0.9 .. 
Disembarked  4.4 4.5 4.6 4.4 5.2 .. 
Scheduled  3.2 3.7 3.8 3.7 4.4 .. 
Charter  1.2 0.8 0.8 0.7 0.9 .. 
Cargo (million pounds)  193.7 188.3 210.1 194.3 185.4 191.8 
.. Not available. 
Source: National Statistics Office. Viewed at: http://www.one.gob.do  and data provided by the 
Dominican authorities. 
4.158.  The foreign company Aeropuertos Dominicanos Siglo XXI (AERODOM) operates and 
manages the five public international airports185 on concession.186 The airports of Cibao, 
La Romana and Punta Cana are controlled by Dominican private capital. There are no restrictions on foreign participation in public airports or in their operation. There are no limitations on foreign 
participation in stopover services. 
4.159.  The Dominican Civil Aviation Institute (I DAC), an autonomous public body, and the Civil 
Aviation Board (JAC), a government agency, are the institutions responsible for overseeing air, transport.
187 IDAC acts as the regulatory body, as well as ensuring air safety by providing, among 
other things, navigation services. It is in char ge of supervising Article 205 of Law No. 491-06. 
The formulation of air transport policy is the resp onsibility of the JAC, which is composed of 
various government entities and representatives of  the private sector. The JAC is also authorized 
to negotiate and conclude agreements on air services. 
4.160.  The Dominican Republic has been liberaliz ing its commercial aviati on relations since 2004 
as a factor of vital importance for the development of tourism. Thus, the commercial aviation 
policy formally adopted on 23 August 2010 by JAC Resolution No. 180-(2010) establishes an 
open-skies policy under which sixth freedom traffic rights are granted for passenger and cargo flights (individually or in combination) and seventh freedom rights for cargo flights only. Within this policy framework, commercial cooperation, free determination of capacity, free pricing 
and multiple carrier designation are guaranteed. Ho wever, the authorities reserve the right to limit 
the number of operators on one or more specified routes. Foreign carriers are not permitted to provide cabotage services (see below). In 2013, the authorities pointed out that the policy 
pursued had made possible greater connectivity and a larger volume of passengers carried on 
scheduled flights.
188 
4.161.  Commercial aviation policy will seek to promote non-scheduled flights in support of 
tourism, as well as to expedite procedures and the clearance of air cargo. 
                                               
184 CNC (2013). 
185 Gregorio Luperón; La Isabela Joaquín Balagu er; Las Américas José Francisco Peña Gómez; 
María Montés; and El Catey Presidente Juan Bosch. 
186 The term of the concession, which began in 1999, is 30 years. 
187 Chapters II and XI of Law No. 491-06, as amended by Law No. 67-13. See also: 
http://www.idac.gob.do/  and http://www.jac.gob.do/index.php?lang=en . 
188 Working Paper A38-WP/187, "Commercial Aviation Policy of the Dominican Republic", of 
20 August 2013, submitted by the Dominican Republic to the Economic Commission of the ICAO. WT/TPR/S/319/Rev.1 • Dominican Republic 
- 122 - 
 4.162.  The regulatory framework for air transport is contained in Law No. 491-06 on Civil 
Aviation, which was amended in 2013.189 Other relevant legislation includes Law No. 188-11 on 
Airport and Civil Aviation Security, JAC Resolution No. 180-10 or Air Transport Policy of the Dominican Republic, Law No. 67-13, which amends various Articles of Law No. 491-06, and the 
Model Air Services Agreement of November 2013. 
4.163.  The principal change brought about in 2013  by Law No. 67-13 was the liberalization of the 
supply of air services with the introduction of a new provision into the domestic airline substantial 
ownership and effective control criterion. For the purposes of the Law on Civil Aviation, 
Dominican companies established in conformity with Dominican law were considered to be national enterprises if they possessed three cumulative characteristics: (a) 35% of the capital or substantial ownership was in the hands of Dominica ns and the board of directors was composed of 
Dominicans in the same proportion; (b) half plus one of the other executives were Dominicans; 
and (c) the principal place of business was in the Dominican Republic. As from 2013, under Law No. 67-13, airlines incorporated in the country with up to 100% foreign capital are also considered 
to be Dominican, provided that the investment ha s been authorized by the Executive and made by 
an airline of international repute.
190 
4.164.  In addition to amending the provisions re lating to the substantial ownership and effective 
control of airlines, Law No. 67-13 amended the Law on Civil Aviation with respect to the budgetary 
aspects and IDAC registrations, the commercial operation of Dominican aircraft in other States, and the hearing of appeals to a higher administrative authority by the JAC. 
4.165.  Scheduled international flights are operated in accordance with the air transport services 
agreements concluded or the principle of reciprocity. Charter flights are operated under the 
reciprocity regime. 
4.166.  The JAC is responsible for issuing operating licences to foreign carriers flying scheduled 
flights and special flight licences to those flying charter flights.
191 Operating licences are 
non-transferable and are granted for renewable period s of up to 10 years. The licence is issued for 
a specific route and is conditional upon final approval by the Executive. The granting of a licence 
requires the airline to open a branch in the Dominican Republic and to appoint a legal 
representative.192 In September 2014, some 53 foreign airlines held an operating licence, but only 
40 were operating regularly.193 
4.167.  Foreign operators not in possession of an operating licence must apply to the JAC for a 
special flight permit. The application is made through a company incorporated in the 
Dominican Republic and licensed by the Board itself as a consignee agent for the aircraft of foreign airline operators flying non-scheduled flights. A domestic airline may act as agent. The agent 
company is entitled to operate in the airports specified in its licence.
194 Since 2009, there have 
been no limitations on foreign participation in companies that provide agency services. Previously, these companies had to be Dominican-owned and under the control of Dominicans.
195 
In September 2014, 15 companies had obtained an  agent's licence, some of them majority 
foreign-owned.196 These agent companies were representing 112 non-scheduled operators. 
4.168.  There is no flag carrier airline in the Dominican Republic. As of July 2014, there were 
17 medium-capacity domestic airlines.197 Domestic airline operators need an economic 
authorization certificate (CEA) from the JAC and an airline operator certificate from IDAC. The CEA 
                                               
189 Law No. 491-06 of 22 December 2006, as amended by Law No. 67-13 of 3 April 2013. 
190 Articles 237-238 of Law No. 491-06, as amended by Law No. 67-13. 
191 Articles 214(g) and (i) of Law No. 491-06, as amended by Law No. 67-13. 
192 Articles 240-246 of Law No. 491-06, as amended by Law No. 67-13. See also the Manual de 
Requisitos JAC-001 , version 3.0. Viewed at: http://www.jac.gob.do /index.php?lang=en . 
193 Online information from the JAC. Viewed at: http://www.jac.gob.do /index.php?lang=en . 
194 Decree No. 832-09 of 7 November 2009, repealing Decree No. 751-02 of 19 September 2002. 
See also Manual de Requisitos JAC-001 , version 3.0. Viewed at: http://www.jac.gob.do/index.php?lang=en . 
195 Article 2 of Decree No. 751-02, repealed by Decree No. 832-09. 
196 Online information from the JAC. Viewed at: http://www.jac.gob.do /index.php?lang=en . 
197 Online information from the JAC, Viewed at: http://www.jac.gob.do /index.php?lang=en ; and 
Working Paper A38-WP/187, "Commercial Aviation Policy of the Dominican Republic", of 20 August 2013, 
submitted by the Dominican Republic to the Economic Commission of the ICAO. WT/TPR/S/319/Rev.1 • Dominican Republic 
- 123 - 
 is issued for a specified route, for a renewable period of ten years, and is conditional upon the 
approval of the Executive.198 
4.169.  Under the Law on Civil Aviation, domestic and cabotage flights are operated exclusively by 
domestic airlines. However, codeshare agreements with foreign airlines on domestic flights are 
permitted.199 In the case of cabotage air transport, domestic airlines must satisfy stricter criteria of 
substantial ownership and effective control. For air cabotage purposes, airlines that belong to Dominicans (51% of the capital), are under the co ntrol of Dominican executives (two thirds) and 
maintain effective control of their fleet are deemed to be Dominican.
200 
4.170.  The temporary employment of foreign aviation personnel by a domestic airline is 
authorized provided that there are no local pe rsonnel available. Moreover, it is subject to 
conditions of reciprocity.201 Domestic companies that offer only international air transport services 
must meet the same organizational requirements as the providers of cabotage services, except 
that foreign participation in their capital may be as much as 65%. 
4.171.  Dominican-registered aircraft may be maintained in a foreign workshop provided that the 
workshop has a certificate issued by the civil aviation authority of a Member State of the 
International Civil Aviation Organization and recognized or authenticated by IDAC.202 
4.172.  Foreign airlines with an operating lice nce may sell their products in the Dominican 
Republic. There are no restrictions on the number of  sales outlets. There are no limitations on the 
number of providers of computerized reservation sy stems or on the number of travel agencies to 
which they may provide their services. Nor are they  obliged to establish themselves in the country 
in order to offer their services. 
4.173.  The Executive fixes airport and aviation taxes.203 It is the responsibility of the IDAC to 
collect the aviation tax and share it out among various entities, namely, the Institute itself, the JAC and the Ministry of Tourism. The airport tax is collected wholly by the airports. In 2009, 
the authorities implemented measures, permanent or temporary, to reduce the impact of the taxes 
and thus promote air cargo transport and tourism.
204 However, high airport taxes, together with 
the price of fuel, were cited by the CNC in 2013 as  weaknesses of the air transport subsector in 
the Dominican Republic.205 
4.174.  During the review period, as part of th e process of air transport market liberalization, 
the Dominican Republic continued negotiating air transport services agreements. As of 
September 2014, it had signed 43 bilateral and 2 plurilateral agreements (Tables A4.2 and A4.3). 
The modalities of most of the bilateral instruments reflect the open-skies commercial aviation 
policy pursued by the Dominican Republic (see above). Within the context of the Multilateral Open-Skies Agreement for Member States of th e Latin American Civil Aviation Commission, 
the Dominican Republic has entered reservations with regard to the granting of traffic rights in 
accordance with the terms of its commercial aviation policy. Thus, it will not grant seventh-freedom rights to passenger traffic or ei ghth- and ninth-freedom rights to any type of 
operation. The Dominican authorities have also entered reservations with regard to the 
determination of "reasonable" charges on the airlines, on the grounds that it interferes "with the power of the State to impose the taxes and duties it considers appropriate". 
4.175.  Within the framework of its multilater al commitments, the Dominican Republic has 
undertaken not to impose limitations on cross-border supply, consumption abroad or investment 
with respect to maintenance and repair services for transport equipment, including aircraft. 
                                               
198 Articles 130-132 and 216-239 of Law No. 491-06, as amended by Law No. 67-13. See also the 
Manual de Requisitos JAC-001 , version 3.0. 
199 Working Paper A38-WP/187, "Commercial Aviation Policy of the Dominican Republic", of 
20 August 2013, submitted by the Dominican Republic to the Economic Commission of the ICAO. 
200 Articles 183 and 239 of Law No. 491-06, as amended by Law No. 67-13. 
201 Articles 120-123 of Law No. 491-06, as amended by Law No. 67-13. 
202 The requirements that these workshops must meet are set out in the Dominican Aeronautical 
Regulations issued by IDAC. 
203 The taxes currently in force are contained in Decree No. 655-08 of 17 October 2008. 
204 Decree No. 176-09 of 10 March 2009 and Decree No. 580-09 of 13 August 2009. 
205 CNC (2013). WT/TPR/S/319/Rev.1 • Dominican Republic 
- 124 - 
 4.5.3.2  Maritime transport and port activities 
4.5.3.2.1  Maritime transport 4.176.  It is estimated that 96% of the Dominican Republic's foreign trade volume is transported 
by sea.
206 At present, 14 shipping lines are providin g services in Dominican ports and operating 
on 26 routes. 
4.177.  The formulation of maritime transport po licy is the responsibility of the MIC and the 
Dominican Navy. The authorities have pointed out that a study has been carried out, jointly with 
the Inter-American Development Bank, to plan logistical policies in the Dominican Republic, 
including in the transport sector. The MIC grants licences to Dominican shipping lines, oversees compliance with the international maritime co nventions and registers and oversees ship 
mortgages.
207 To obtain a licence to operate, Dominican shipping lines must first register their 
vessels in accordance with the following procedure: (i) register as a company; (ii) pay the 
appropriate taxes for each vessel; and (iii) subject to inspection by the Dominican Navy, register each vessel and obtain a seaworthiness certificate from that organization. Shipping lines not 
established in the Dominican Republic must be re presented by a shipping agent accredited by the 
Ministries of Industry and Trade and Finance, as well as by the DGA and the Dominican Port Authority (APORDOM). Shipping agents must obta in a licence to act as a consignee agent or 
representative of domestic and international shipping lines. 
4.178.  The CNC advises on the need to extend routes to potential markets.
208 The tariffs for 
international maritime transport services are not subject to government approval. There are no estimates of maritime transport costs. The Dominican Republic has no provisions on 
maritime conferences. 
4.179.  The Dominican Republic does not have a national merchant fleet, apart from tugboats. 
As of 2013, there were 27 vessels flying the Dominican flag, including a crude oil tanker and 
seven general cargo vessels.
209 No limits are imposed on foreign participation in Dominican-flag 
vessels. However, the owners must be resident in the Dominican Republic. 
4.180.  Cabotage services are reserved for Dominican-flag vessels.210 If such vessels are not 
available, the Dominican ship owner is authorized temporarily to lease a foreign vessel to provide 
the service. The temporary permit is issued by the Office of the Naval Chief of Staff. The authorities have indicated that, in practice, given the high level of taxes and the limited flagging of Dominican vessels, foreign-flag vessels are allowed to provide cabotage services 
without needing a permit, provided that they obtain a seaworthiness certificate from the 
Dominican Navy. 
4.181.  The Dominican Republic has not undertaken any multilateral commitments in relation to 
maritime transport. 
4.5.3.2.2  Port activities 4.182.  During the review period, the total volume of cargo handled in Dominican ports remained 
stable at around 23 million tonnes (Table 4.14). The transhipment of goods accounted for 
a significant proportion of port activity, with 18. 6% of the total volume of cargo being transhipped 
in September 2014. Some 20.6% of the total cargo handled as at September 2014 was containerized. 
                                               
206 Online information from APORDOM. Viewed at: http://www.apordom.gov.do/sistema-portuario.html . 
207 Online information from the MIC. Viewed at: http://www.seic.gov.do/sobr e-el-mic/ministerio-de-
industria-y-comercio/funciones-generales.aspx . 
208 UNCTAD (2013) and CNC (2013). 
209 UNCTAD (2013). 
210 Article 56 of Law No. 3003 of 12 July 1951. WT/TPR/S/319/Rev.1 • Dominican Republic 
- 125 - 
 Table 4.14 Port operations, 2008-2014 (September) 
 2008 2009  2010  2011  2012  2013 2014  
 (million tonnes)  
Total cargo  23.3 22.7 23.6 25.8 23.2 25.4 20.1 
Foreign trade 18.5 16.5  17.7 19.7 18.1 19.4 16.4  
Imports  14.7 13.2 14.7 16.1 14.1 14.7 12.0 
Exports 3.8 3.3 3.1 3.6 4.0 4.6 4.4 
By type of cargo (% of foreign trade) 
Loose  11.9 11.1  12.8  11.5 10.4 11.7 9.5 
Containerized 26.2 26.6  26.4  29.3 21.1 21.2 20.6 
Solid bulk 28.1 26.1  26.2  23.6 18.9 20.1 24.8 
Liquid bulk  33.8 36.1  34.6  35.6 27.8 26.1 26.4 
 (million tonnes) 
Cargo in transit 4.8  6.2  5.9  6.1  5.1 6.1 3.8 
Entering  2.3  2.7  2.6  3.0 2.7 3.1 1.9 
Leaving  2.5  3.5  3.2  3.0 2.4 3.0 1.9 
 (TEU) 
Containers 1,138,471 1,262,943  1,636,869  1,479,455  630,190  1,446,402 945,738  
Foreign trade  704,733 674,045 745,718 923,047 493,211 821,932 621,786 
Imports 371,565 335,144 396,082 496,727 311,805 425,191 318,057 
Exports 333,168 338,901 349,636 426,321 181,406 396,741 303,729 
Transit  433,738  588,898  891,151 556,408 136,979 624,470 323,952 
Entering  218,439 296,896  347,115 243,069 79,099 307,305 161,629 
Leaving  215,299 292,002 544,036 313,339 57,880 317,165 162,323 
Other 
information         
No. of vesselsa 5,025 4,819 4,522 5,317 4,757 4,975 3,857 
No. of passengers 475,206 496,728 352,539 347,914 338,331 415,160 317,365 
a Freighter, bulk, tanker and passenger. 
Source: APORDOM statistics. Viewed at: http://www.apordom.gov.do/estadisticas 
1einstitucionales/operaciones 1eportuarias , APORDOM (various years), Memorias Institucionales, 
and data provided by th e Dominican authorities. 
4.183.  Port activities are governed by Law No. 70 of 17 December 1970 establishing APORDOM, 
which is the regulatory body for the port syst em. The draft General Law on Ports is now being 
finalized; this will replace Law No. 70 and establish a new legal framework in keeping with the 
current dynamics of international trade and encourage competitiveness.211 
4.184.  The State owns 10 of the country's 12 port s. The only private ports are La Romana and 
Multimodal Caucedo. Of the 10 State-owned po rts, 7 are operated and managed by APORDOM.212 
Three ports are operated and managed by the private sector on concession.213 APORDOM is 
authorized to grant concessions and to supervise th e operation of ports that have been put out on 
concession.214 There are no limitations on foreign participation in such ports. 
4.185.  The country's two largest ports are Cauced o and Río Haina, both operated by the private 
sector.215 Caucedo handles the majority of total cargo and container traffic. It is the main centre 
for transhipment operations. On the other hand, Río Haina handles a greater volume of foreign trade cargo.
216 Another port with appreciable container traffic is Puerto Plata, which benefits from 
being close to the free zones established in the Cibao region (13 provinces in the north of the 
                                               
211 Online information from the Presidential Commission  for Port Modernization and Security. Viewed at: 
http://www.cpmsp.gov.do/2011/10/concesion-puertos-expandiria-comercio-rd-y-aumentaria-recaudacion-
aduanera/  and http://www.cpmsp.gov.do/publicaciones/avanza-formulacion-ley-general-de-puertos-r-d . 
212 Arroyo Barril (Samaná province), Barahona, Boca  Chica (Santo Domingo province), Manzanillo 
(Monte Cristi province), Puerto Plata and San Pedro de  Macorís. In 2012, APORDOM took back the operation of 
the port of Manzanillo as a result of the annu lment of the concession contract. APORDOM (2013). 
213 Azua, Cabo Rojo (Pedernales pr ovince), Río Haina (Santo Domingo province) and Santo Domingo. 
The concession period is  10 years, renewable. 
214 Articles 4 and 8 of Law No. 70. 
215 During the review period, the State and the private sector signed an agreement on a semi-public 
company to operate the port of Rio Haina. 
216 APORDOM statistics. Viewed at: http://www.apordom.gov.do/estadisticas-institucionales/ 
operaciones-portuarias . WT/TPR/S/319/Rev.1 • Dominican Republic 
- 126 - 
 country). Where infrastructure is concerned, the port of Caucedo is the only one equipped for 
berthing post-Panamax vessels.217 
4.186.  The Dominican port system also includes terminals for cruise ships in the ports of 
La Romana, Puerto Plata218 and Santo Domingo219, as well as an anchorage in the port of 
Samaná.220 Since 2008, APORDOM has worked to increase  the number of tourists arriving by sea 
in accordance with the National Public Sector Multiannual Plan 2013-2016, which treats cruise ship tourism as an essential part of the diversif ication of the tourism offer (Section 4.5.4).
221 In 2014, 
APORDOM was supervising private investment projects, in particular the construction of a tourist 
terminal in the Bay of Maimón (Puerto Plata province) reserved for mooring cruise ships. This terminal, which involves an investment of approx imately US$65 million, will be capable of handling 
the simultaneous arrival of two vessels and 4, 000 passengers. Another project in the port of 
Samaná to build a port terminal for use as a disembarkation point for cruise ship passengers in the 
Bay of Samaná, with a total investment of US$9 million, is in the initial stage of development.
222 
The Dominican Republic is currently receiving visits from a dozen American and European cruise 
lines every year. In 2013, some 355 cruise ships carrying 415,160 passengers arrived in the 
country. In 2014, by September it had received visits from 335 cruise ships carrying 317,365 passengers. 
4.187.  Port services may be put out on concession.
223 At present, the only service being operated 
in this way is buoyage.224 The provision of towing services is reserved for Dominican vessels.225 
The authorities have confirmed that towing servic es are being provided by Dominican-flag vessels 
and that the companies providing the services are being granted a licence to operate in 
Dominican ports; each vessel must take out a US$500,000 insurance policy to cover damage 
suffered by ports, vessels or third parties. 
4.188.  The Government sets port charges. Dominican-flag vessels do not pay berthing fees and 
may obtain a discount of 50% on the port-stay charge if carrying out loading or unloading 
operations. Passenger vessels do not pay berthing fees either.226 
4.189.  The Dominican Republic applies the International Ship and Port Facility Security (ISPSP) 
Code. At present, six ports227, a cruise ship terminal228, the anchorage of the port of Samaná and 
three private fuel terminals are accredited as secure port zones.229 There are no entry limitations 
on any cargo vessel sailing from the Dominican Republic to other world ports.230 
                                               
217 IADB press release of 16 March 2013. Viewed at: http://www.iadb.org/es/no ticias/comunicados-de-
prensa/2013-03-16/coordinacion-de-logistica,10379.html . 
218 Cruise ship activity resumed in Puerto Plata in 2012. The port had not received any cruise ships since 
1986. El Nuevo Diario , 13 December 2012. Viewed at: http://www.elnuevodiario .com.do/app/article. 
aspx?id=312935 . 
219 Santo Domingo has two tourist terminals: Don Diego and Sansoucí. The latter was inaugurated 
in 2009. 
220 The vessels drop anchor in Cayo Levantado and the tourists are disembarked in Santa Bárbara. 
APORDOM (2013) and APORDOM communications. Viewed at: http://www.apordom.gov.do/comunicaciones.html . 
221 National Public Sector Mult iannual Plan 2013-2016. Viewed at: http://economia.gob.do/mepyd/ 
publicacion/plan-nacional-plurianual-del-sector-publico-2013-2016 . 
222 Online information from APORDOM. Viewed at: http://www.apordom.gov.do/proyectos-
programas.html  and APORDOM (2014). 
223 Article 8 of Law No. 70. 
224 Online information from APORDOM. Viewed at: http://www.apordom.gov.do/archivos/Tarifas.pdf . 
225 Article 56 of Law No. 3003. 
226 The tariffs in force are contained in Decree No. 572-99 of 30 December 1999, as amended by 
Decrees No. 519-02 of 5 July 2002, No. 534-04 of 16 June 1994 and No. 612-05 of 2 November 2005. Online information from APORDOM. Viewed at: http://www.apordom.gov.do/archivos/Tarifas.pdf . 
227 Boca Chica, La Romana, Manzanillo, Multim odal Caucedo, Río Haina and Santo Domingo. 
228 Sansoucí in the port of Santo Domingo. 
229 APORDOM communications. Viewed at: http://www.apordom.gov.do/comunicaciones/112-director-
de-apordom-dice-seguridad-en-los -puertos-es-una-prioridad.html . 
230 APORDOM (2013). WT/TPR/S/319/Rev.1 • Dominican Republic 
- 127 - 
 4.5.4  Tourism 
4.190.  Tourism makes a vital contribution to the Dominican economy. Between 2008 and 2013, 
the subsector recorded good results and ended by contributing 9.2% to GDP and 6.3% to employment (Table 4.15).
231 Furthermore, in 2014, the subsector made the second largest 
contribution to GDP and was the second largest source of hard currency. The Central Bank 
attributes tourism's good performance to the return  of more favourable economic conditions in the 
parts of the world from which most of the tourists come (North America and Europe232), to 
attractive offers from the tourism operators, and to effective promotion campaigns on the 
international markets.233 The liberalized air transport policy being pursued by the authorities is 
also making a key contribution to the development of tourism (Section 4.5.3.1). 
Table 4.15 Tourism indicators, 2008-2014  
 2008  2009  2010  2011  2012 2013 2014  
Contribution to GDPa (%)  10.1 9.5 9.2 9.1 8.9 9.2 8.7 
Contribution to services GDPa (%)  17.1 16.2 15.6 15.4 14.8 15.2 14.5 
Contribution to EAP (%) 5.8 5.7 6.0 5.8 5.9 6.3 6.2 
Income generated (US$ million) 4,165.9 4,048.8 4,209.1 4,436.1 4,736.3 5,124.8 5,798.4 
FDI (US$ million) 
% of total FDI  228.4 
8.0 186.0 
8.6 94.6 
5.0 107.8 
4.7 162.0 
5.2 256.5 
12.9 161.7 
13.7 
Tax income (RD$ million)b  4,364.4 4,343.1 4,910.2 5,081.1 5,552.1 5,978.8 7,108.9 
Tourist arrivalsc (million) 
Non-resident Dominicans 
Non-resident foreigners 4.0 
0.5 
3.5 4.0 
0.6 
3.4 4.1 
0.6 
3.5 4.3 
0.6 
3.7 4.6 
0.6 
4.0  4.7 
0.6 
4.1  5.2 
0.7 
4.5 
Average spendd (US$)  110.4 107.0 107.2 113.9 118.4 124.9 128.13 
Stayd (nights) 9.0 9.1 9.1 8.7 8.5 8.5 8.3 
Hotelse 705 710 714 725 789 .. 690 
Units 
Occupancy rate (%) 65,835 
70.4 67,575 
66.0 67,095 
66.6 66,348 
69.3 66,323 
70.3 68,542 
71.7 69,609 
74.6 
a At current prices. b  Includes foreign passenger exit tax, airport dues and tourist card fee. c By air. d Data for non-resident foreigners. e Tourism statistics published by the National Statistics Office. Viewed at: http://www.one.gob.do . 
Source: Economic statistics for the tourism subsector and the external sector compiled by the Central Bank, 
viewed at: http://www.bancentral.gov.do , and data provided by the authorities. 
4.191.  However, despite the subsector's good results, the Dominican Republic has lost ground in 
terms of the travel and tourism global competitiv eness index of the World Economic Forum (WEF). 
In 2013 it was in 86th place as compared with 72nd place in 2009.234 In the absence of national 
indicators, the CNC is urging the players in the tourism subsector to pay attention to the 
monitoring by the WEF.235 
4.192.  During the review period, there were no changes in the legal framework for tourism as set 
out in the Law on the Organization of Tourism No. 541 of 31 December 1969.236 For the purposes 
of the law, the Ministry of Tourism (MITUR)237 regulates tourism activities and implements 
government tourism policy. 
                                               
231 The Central Bank estimates the contribution of tourism to GDP, employment and income on the basis 
of data on the hotel, bar and restaurant subsector, whic h do not reflect the whole of the impact of tourism on 
Dominican economic activity. 
232 During the review period, a little more than ha lf the tourists came from North America and Europe. 
Some 30% of the total number of tourists came from th e United States. Central Bank statistics. Viewed at: 
http://www.bancentral.gov.do/publicaciones_eco nomicas/consulta/9/0/Estadísticas-Turisticas . 
233 Central Bank of the Dominican Republic (2012 and 2014c). 
234 World Economic Foru m (WEF) estimates in Travel & Tourism Competitiveness Reports . Viewed at: 
http://www.weforum.org/reports . 
235 CNC (2011). 
236 Law No. 541-69 of 31 December 1969, as amended by Law No. 84-79 of 26 December 1979. 
237 The Secretariat of State for Tourism became the Ministry of Tourism in 2010 (Decree No. 56-10 of 
6 February 2010). WT/TPR/S/319/Rev.1 • Dominican Republic 
- 128 - 
 4.193.  At present, tourism is mainly being developed in the coastal provinces, which can offer 
sunshine and beaches on the "everything included" model.238 The strategy is to move away from 
the enclave model to a diversified, competitive an d sustainable model that contributes more to the 
economy239 and the welfare of the local communities.240 During the review period, this strategic 
approach was shaped by both the National Systemic Competitiveness Plan241 and the National 
Development Strategy (END) 2030.242 For its part, the National Public Sector Multiannual Plan 
2013-2016, which is linked with the END 2030, lays down priority measures for supporting the 
diversification, competitiveness and sustainability of tourism.243 These are: (i) to create new 
tourism products (ecotourism, cultural tourism, cr uising (Section 4.5.3.2.2) and health tourism) 
and tourist areas, (ii) to create a single window for processing tourism projects, (iii) to offer investors new financing options, (iv) to implement aggressive promotion campaigns, (v) to 
encourage training in tourism, and (vi) to promote integrated tourism by supporting tourism 
clusters.
244 Thus, a project with the IADB to develop tourism in the Ciudad Colonial is in process of 
being implemented. The port terminal of Sans Souci has been put out on concession and rebuilt for 
the arrival of cruise ships in Santo Domingo. Investment in infrastructure for the development of 
health tourism is also being encouraged. Moreover, financing for SMEs and MSMEs that provide tourism services is being promoted, for example, by means of gradual increases in resources for 
national and international tourism promotion campaigns. Finally, the MITUR is encouraging the 
creation of tourism clusters throughout the country. 
4.194.  The State does not participate in tourism services enterprises. There are no limitations on 
foreign investment in tourism. Although the subsector continues to provide opportunities for 
foreign investors (Table 4.15), there was a notable decline in FDI during the review period with 
respect to the previous period (2001-2007). The Central Bank's statistics indicate that between 2008 and 2014 some 8.3% of total FDI was absorbed by tourism as compared with 23% in the 
previous period. To promote a recovery in FDI, in 2012, changes were made in the system of 
incentives for developing tourism (see below). In response, FDI flows increased by almost 60% in 2013 relative to 2012 (Table 4.15). The main foreign investors in tourism come from Spain, the 
United States and Canada. 
4.195.  The MITUR regulates and issues authorizatio ns for the provision of services for tourists.
245 
The modalities for the provision of these services are set out in the Law on the Organization of 
Tourism and various Regulations.246 To operate in the Dominican Republic, travel agencies and 
tour operators established abroad must appoint a local representative. A foreign guide may 
operate in the country only in exceptional cases, such as when there is no local guide to provide the service.
247 Drivers who transport tourists by road must be residents of the 
Dominican Republic.248 Providers of tourist guide, accommodation and transport services may not 
charge prices higher than those established by the MITUR and approved by the government.249 
                                               
238 The coastal provinces are Barahona, Montecristi, Samaná, Santo Domingo, La Altagracia, La Romana 
and Puerto Plata. The last three account for 70% of the accommodation supply. 
239 The daily spend per tourist, although it has increa sed (Table 4.15), is well below the levels observed 
in the region. 
240 CNC (2013) and IADB (2010). 
241 CNC (2010). 
242 Law No. 1-12 of 25 January 2012. 
243 National Public Sector Mult iannual Plan 2013-2016. Viewed at: 
http://economia.gob.do/mepyd/publicacion/plan- nacional-plurianual-del-sector-publico-2013-2016 . 
244 Currently, the Dominican Republic has ten tour ism clusters. Online information viewed at: 
http://www.cnc.gob.do/ cnc/?page_id=6970  and http://fodatur.com/que-es-fodatur#sobreclusters . 
245 Article 4 of Law No. 541-69, as amended by Law No. 84-79. Requirements for obtaining and 
renewing authorizations. Onli ne information viewed at: http://transparencia.sectur.gob.do/t/tr . 
246 Regulations No. 813-03 (gift shops), No. 814-03 (car rentals), No. 815-03 (travel agencies and tour 
operators), No. 816-03 (restaurant classification and standards), No. 817-03 (land passenger transport for 
tourists) and No. 818-03 (hotel classifi cation and standards). Viewed at: http://transparencia.sectur.gob.do/ 
t/tr/servicios/resoluciones-turisticas . 
247 Articles 18 and 23 of Law No. 541-69, as amended by Law No. 84-79. 
248 Article 11 of Regulations No. 817-03. 
249 Articles 4, 25 and 44 of Law No. 541-69, as amended by Law No. 84-79. 1984 Regulations No. 2.119 
(tourism transport tariff in Santo Domingo), No. 2.120 (tou rism transport tariff in Puerto Plata) and No. 2.121 
(guide tariff in Santo Domingo). WT/TPR/S/319/Rev.1 • Dominican Republic 
- 129 - 
 4.196.  Under Law No. 158-01250, the Dominican Republic offers tax and tariff incentives for the 
development of tourism projects. Investors must be  residents in the country and the projects must 
have the approval of the Council for Tourism Development (CONFOTUR).251 Foreign architects and 
engineers may participate in the projects throug h a firm established in the Dominican Republic.252 
4.197.  The incentives consist of total exemption from income tax and certain national and 
municipal taxes, as well as from customs duti es and other import charges (ITBIS). The tariff 
incentives apply only to imports of capital goods needed to launch the project, provided that those 
produced locally are not of "sufficient quality".253 The regime also allows companies to deduct up 
to 20% of the investment made from their net taxable income.254 In 2014, 33 companies were 
availing themselves of the incentives regime for tourism development. It is estimated that the tax 
and tariff concessions granted under Law No. 158-01 amounted to RD$2, 263 million in 2014; 
some 80% corresponded to exemptions from customs duties and the ITBIS.255 
4.198.  Law No. 195-13 of 13 November 2013 introduced substantial changes in the incentives 
regime. The geographical restriction that limited its scope to areas designated as tourism poles 
and demarcations was eliminated and the benefits of the regime were extended to the whole of 
Dominican territory, including the border provinces,  which have their own incentives regime (see 
below). In addition, the tax benefits were extended to a larger number of hotel facility remodelling 
projects and the period of exemption was increa sed from 10 to 15 years. The authorities report 
that the changes were introduced to enable the co untry to maintain conditions of competitiveness 
similar to those of regional tourist destinations with which it competes for FDI. The new regulatory framework was favourably received by the Hotels and Tourism Association of the 
Dominican Republic (ASONAHORES) as tending to improve competitiveness.
256 
4.199.  During the review period, the tourism serv ices companies that installed themselves in the 
border provinces benefited from tax and tariff exemptions and other facilities offered under Law 
No. 28-01 on the Special Border Development Zone (Section 3.3.1.3). The tax and tariff 
concessions for border development in 2014 are estimated at RD$1,079 million.257 I t s hould  b e  
pointed out that no tourism services provider in the border zone has applied for the incentives 
offered under Law No. 158-01 and its amendments. 
4.200.  In May 2014, the Senate of the Republic approved a draft law establishing an incentives 
regime for tourism enterprises that establish themselves in the border tourism and ecological corridor, and in March 2015 its approval by the Chamber of Deputies and promulgation by the 
Executive were pending.
258 
4.201.  The promotion campaigns on international markets are financed by the Official Tourism 
Promotion Fund administered by the MITUR with private-sector advice. The Fund obtains its 
                                               
250 Law No. 158-01 of 9 October 2001, as amended by Laws No. 184-02 of 23 November 2002, 
No. 318-04 of 23 December 2004, No. 253-12 of 9 November 2012, and No. 195-13 of 13 November 2013. Decrees No. 1125-01 of 20 November 2001 and No. 74-02 of 29 January 2002, as amended by Decree No. 835-08 of 12 December 2008. 
251 The application file is lodged with the Departme nt of Planning and Projects (DPP) of the MITUR, 
which acts as CONFOTUR's technical office. Articles 2 and 9-11 of Law No. 158-01, as amended by Laws No. 184-02, No. 318-04, No. 253-12 and No. 195-13. Online information from the DPP. Viewed at: http://www.dpp-sectur.gov.do . 
252 Article 14 of Law No. 158-01, as amended by Laws No. 184-02, No. 318-04, No. 253-12 and 
No. 195-13. 
253 MITUR's DPP periodically reviews the list of goods. Article 10 of Decree No. 1125-01, as amended by 
Decree No. 835-08. 
254 The amortization period do es not exceed five years. 
255 Directorate-General of Internal Revenue (2013). 
256 Online information from ASONAHORES. Viewed at: http://www.asonahores.com/noticias/2014/1/ 
asonahores-asegura-la-nuev a-ley-de-incentivos-atraer%C3 per ce ntA1-inversiones-y-promover%C3 per 
centA1-la-diversif icaci%C3%B3n.aspx . 
257 Directorate-General of Internal Revenue (2013). 
258 Initiative No. 01626-2013-SLO-SE. Viewed at: http://www.senado.gov.do/wfilemaster/lista_ 
expedientes.aspx?coleccion=53 . WT/TPR/S/319/Rev.1 • Dominican Republic 
- 130 - 
 resources from the revenue from the tourist card259 and a share of the aviation taxes.260 Tourism 
is also promoted through the Country Brand Strategy being conducted by the CNC.261 
4.202.  Under the GATS, the Dominican Republic guarantees market access and national treatment 
in hotel and restaurant services, but only market access in travel agency, tour operator and tourist 
guide services.262 
                                               
259 The tourist card is charged to those tourists who are exempt from a visa. There are some exceptions 
to payment depending on the agreements which the Do minican Republic may have. Online information from 
the Directorate-General of In ternal Revenue. Viewed at: 
http://www.dgii.gov.do/tarjetaTuristic a/sobreTarjetaT/Paginas/default.aspx . 
260 Article 19 of Law No. 158-01, as amended by Laws No. 184-02, No. 318-04, No. 253-12 and 
No. 195-13. 
261 CNC (2009). 
262 For more information see the WTO/World Ba nk I-TIP Services Database. Viewed at: 
http://i-tip.wto.org/services/default.aspx . WT/TPR/S/319/Rev.1 • Dominican Republic 
- 131 - 
 REFERENCES 
Dominican Electricity Industry Association (ADIE) (2012), Impacto del Sector de Generación 
Eléctrica . Viewed at: http://www.adie.org .do/index.php/estadisticas /impacto-del-sector-de-
generacion-electrica-completo . 
Dominican Port Authority (APORDOM) (2013), Memorias Institucionales 2012 . Viewed at: 
http://www.apordom.gov.do/archivos/Estrat egia-institucion/MEM ORIA_APORD OM_2012.pdf . 
APORDOM (2014), Memorias Institucionales 2013 . Viewed at: 
http://www.apordom.gov.do/archivos/Estr ategia-institucion/Memorias_2013.pdf . 
Central Bank of the Dominican Republic (2012), Informe de flujo turístico , December. Viewed at: 
http://www.bancentral.gov.do/pub licaciones_economicas/informe_t uristico/informe_turistico2012-
12.pdf . 
Central Bank of the Dominican Republic (2014a), Informe de Política Monetaria , November. Viewed 
at: http://www.bancentral.gov.do/publicaciones _economicas/infome_pm/Informepm2014-11.pdf . 
Central Bank of the Dominican Republic (2014b), Programa Monetario del Banco Central bajo 
Metas de Inflación 2015. Resumen Ejecutivo . Viewed at: 
http://www.bancentral.gov.do/polit ica_monetaria/resumen/resume n_ejecutivo_programa_moneta
rio2015.pdf . 
Central Bank of the Dominican Republic (2014c), Resultados preliminares de la economía 
dominicana , January-March. Viewed at: 
http://www.bancentral.gov.do/pub licaciones_economicas/infeco_pr eliminar/preliminares_enero_m
arzo2014.pdf . 
Central Bank of the Dominican Republic (2014d), Resumen Ejecutivo Programa Monetario 2015 . 
Viewed at: http://www.bancentral.gov.do/polit ica_monetaria/resumen/resume n_ejecutivo_programa_moneta
rio2015.pdf . 
Inter-American Development Bank (IADB) (2010), La ruta hacia el crecimiento sostenible en la 
República Dominicana , September. Viewed at: 
http://publications.iadb.org/bitstream/handle/11319/308/La_ruta_hacia_el_crecimiento_sostenibl
e_en_la_RD_final_web.pdf?sequence=1 . 
IADB (2013), Energy Dossier: Dominican Republic . Viewed at: 
http://publications.iadb.org/bitstream/handle/11319/3847/Dossier%20Energ%c3%a9tico%2001%
20-%20Republica%20Dominicana%20%28Web%29.pdf?sequence=1 . 
IADB and World Bank (2009), Plan de acción para modernizar el sector eléctrico en la República 
Dominicana . Viewed at: http://www-
wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2012/06/04/000425962_20120
604102457/Rendered/PDF/693090ESW0P11800v150130agosto0final.pdf . 
Dominican Corporation of State-owned Electricity Companies (CDEEE) (2009), Plan de Acción del 
Sector Eléctrico 2010-2015 , December. Viewed at: 
http://transparencia.cdeee.gob.do/Document os/Plan/Plan de Acci%C3%B3n Sector 2010-
2015.pdf . 
CDEEE (2013), Plan Estratégico 2013-2016 . Viewed at: 
http://transparencia.cdeee.gob.do/Documentos /PlanTrabajo/Plan Estratégico CDEEE 2013 - 
2016.pdf . 
Dominican Republic Export and Investment Center (CEI-RD) (undated), Comportamiento de la 
Inversión Extranjera Directa en la República Dominicana 2004-2010 . Viewed at: http://www.cei-
rd.gov.do/ceird/pdf/ied/intermerca/informe_ied_2004_2010.pdf . WT/TPR/S/319/Rev.1 • Dominican Republic 
- 132 - 
 Economic Commission for Latin America and the Caribbean (ECLAC) (2009), La República 
Dominicana en 2030: hacia una nación cohesionada . Viewed at: 
http://www.cepal.org/publicacione s/xml/0/37540/2009- LBC-104-web.pdf . 
ECLAC (2014), Centroamérica y República Dominicana: Estadísticas de hidrocarburos 2012 . 
Viewed at: 
http://www.cepal.org/publicaciones/xml/8/ 53238/CentramericayRepublicaDominicana.pdf . 
National Council for Free Export Zones (CNZFE) (2014), Informe Estadístico del Sector Zonas 
Francas 2013 . Viewed at: 
http://www.cnzfe.gob.do/images/transpar encia/Estadisticas /InfEst2013Esp.pdf . 
International Commission for the Strategic Development of the Dominican Republic (2010), 
República Dominicana 2010-2020 , November. Viewed at: 
http://www.attali.com/downloa d/RD_InformeFinal_ES.pdf . 
National Competitiveness Council (CNC) (2009), Boletín Informativo, Nº 3 . Viewed at: 
http://www.competitividad.org.do/wp-content /uploads/2009/09/a-competir-marca-pais.pdf . 
CNC (2010), Plan Nacional de Competitividad Sistémica de la República Dominicana . Viewed at: 
http://cnc.gov.do/cnc/wp-content/uploads/2010/08/pncs_competitividad.pdf . 
CNC (2011), Análisis sobre el Índice de Competitividad de Viajes y Turismo según el Foro 
Económico Mundial: Caso República Dominicana, 2011 . Viewed at: 
http://www.competitividad.org.do/wp-content /uploads/2009/01/analisis-wef-turistico-2011-
tvs.pdf . 
CNC (2013), Informe de Competitividad República Dominicana 2012 . Viewed at: 
http://www.cnc.gob.do/cnc/wp-content/uploads/ 2013/08/informe-comp etitividad-rep-dom-
2012.pdf . 
Directorate-General of Internal Revenue (DGII) (2010), Análisis del Sector Industrias , October. 
Viewed at: 
https://www.dgii.gov.do/pub licaciones/estudios/Documents/Secto rIndustrialResumenparapublicar.
pdf. 
DGII (2013), Gastos Tributarios en República Dominicana: Estimación para el Presupuesto General 
del Estado del año 2014 , September. Viewed at: 
http://www.dgii.gov.do/publicaciones/estu dios/Documents/GastoTributario2014.pdf . 
Directorate-General of Standards and Quality Systems (DIGENOR) (undated), Plan Estratégico 
Institucional 2011-2014 . Viewed at: 
http://www.indocal.gob.do/index.php/transpare ncia/category/planif icacion-estrategica . 
International Monetary Fund (IMF) (2009), Dominican Republic -- Letter of Intent, Memorandum of 
Economic and Financial Policies, and Technical Memorandum of Understanding , 6 October. Viewed 
at: http://www.imf.org/external/np/loi/2009/dom/100609.pdf . 
Social Policy Coordination Office (GCPS) (2012), Memorias 2004-2012 . Viewed at: 
http://www.gabsocial.gov.do/Portals /0/MemoriasdelGa bineteSocial.pdf . 
Caribbean Financial Action Task Force (2010), 4th Follow-Up Report: Dominican Republic , 
November. https://cfatf-
gafic.org/index.php?option=com_content&view=category&layout=blog&id=360&Itemid=545&lang
=es. 
Dominican Sugar Institute (INAZUCAR) (2014), Memoria Institucional año 2013 . Viewed at: 
http://www.inazucar.gov.do/MEMORIA 2013.pdf . WT/TPR/S/319/Rev.1 • Dominican Republic 
- 133 - 
 Méndez, F.A. (2010), "Política de subsidios en el sector eléctrico de la República Dominicana", 
Energía: desarrollos regulatorios en Iberoamérica , National Energy Commission of Spain. Viewed 
at: http://www.cnmc.es/Portals/0/Ficheros/Energia/Libros/coed_thomson_cne5.pdf . 
Ministry of Industry and Trade (MIC) (2013), "Plan de Acción 2013", Boletín Informativo , Edition 
No. 9, April. Viewed at: http://www.seic.gov.do/direcciones/c omercio-exterior /bolet%C3%ADn-
informativo/bolet%C3%ADn-no-9/plan-de-acci%C3%B3n-nacional-2013.aspx . 
Ministry of Finance (2014), Proyecto de Ley de Presupuesto General del Estado 2015 , September. 
Viewed at: http://www.digepres.com:1515/Publicacione s/Presupuesto 2015/Anexo 3 - Gastos 
Tributarios.pdf . 
Centre for Industrial Development and Competitiveness (PROINDUSTRIA) (2010), Plan Estratégico 
de PROINDUSTRIA 2011-2015 . Viewed at: http://www.proindustria.gov.do/media/203676/informe 
final plan estrategico de proindustria al 231110vf.pdf . 
Banking Supervisory Authority (SB) (2013), Informes del Desempeño del Sistema Financiero Año 
2013. Viewed at: http://www.sb.gob.do/node/210 . 
Insurance Supervisory Authority (SIS) (2013), Boletín Estadístico 2012 . Viewed at: 
http://superseguros.gob.do/porta l/index.php?option=com_joomdo c&task=cat_view&gid=41&Itemi
d=56 . 
Securities Supervisory Authority (SIV) (2013), Plan Estratégico 2013 – 2015 . Viewed at: 
http://www.siv.gov.do/media/ 29195/1.6.2%20Plan%20Estra tegico%20SIV %202013-2015.pdf . 
SIV (2014), Desempeño de la SIV y Comportamiento del Mercado de Valores , September. Viewed 
at: http://www.siv.gov.do/media/72339/In forme%20MV%20Septiembre%202014.pdf . 
United Nations Conference on Trad e and Development (UNCTAD) (2013), Review of Maritime 
Transport 2013 , UNCTAD/RMT/2013. Viewed at: 
http://unctad.org/en/publicationslibrary/rmt2013_en.pdf . 
US Agency for International Development (USAID) (2008), Propuesta de modificación de la Ley de 
Seguros de la República Dominicana de conformidad con los compromisos del DR-CAFTA , June. 
Viewed at: http://pdf.usaid.gov/ pdf_docs/PA00HPS1.pdf . 
 
  
  WT/TPR/S/319/Rev.1 • Dominican Republic  
 
- 134 - 5  APPENDIX TABLES 
Table A1. 1 Exports of consumer goods and re-exports, by product and HS section, 2009-2014a 
(US$ million and %) 
Description 2009  2010  2011  2012  2013  2014 
Total exports (US$ million) 5,529  6,824  8,506  9,079  9,582  9,928 
Exports of consumer goods, re-e xports (% of total exports) 31.2 38.2 43.4 45.2 46.8 47.1 
Free zones (% of total exports) 68.8 61.8 56.6 54.8 53.2 52.9 
 (US$ million) 
Total consumer exports and re-exports 1,726  2,604  3,689  4,107  4,483  4,679 
 (% of exports of consumer goods) 
1 - Live animals; animal products 0.7 2.1 2.7 2.4 1.6 1.3 
 0105 Live poultry, that is to say, fowls of the species Gallus domesticus , ducks, geese, turkeys and guinea 
fowls 0.1 0.2 0.3 0.3 0.2 0.3 
 0305 Fish, dried, salted or in brine; smoked fish, whether or not cooked before or during the smoking 
process; flours, meals and pellets of fish, fi t for human consumption 0.1 0.5 0.8 0.4 0.6 0.2 
2 - Vegetable products  13.5 16.6 19.5 16.3 15.1 13.0 
 0803 Bananas, including plantains, fresh or dried 6.3 6.7 9.0 6.8 6.9 7.1 
 1101 Wheat or meslin flour 0.5 3.2 5.0 3.2 3.3 1.9 
3 - Animal or vegetable fats and oils 0.8 0.8 0.7 1.1 0.8 0.9 
 1515 Other fixed vegetable fats and oils (including jo joba oil) and their fractions, whether or not refined, 
but not chemically modified 0.2 0.1 0.1 0.2 0.6 0.6 
4 - Prepared foodstuffs; beverages, spirits and vine gar; tobacco and manufacture d tobacco substitutes 27.9  25.0 19.7 18.4 13.7 14.4 
 2103 Sauces and preparations therefor; mixed condim ents and mixed seasonings; mustard flour and meal 
and prepared mustard 1.0 0.9 1.1 1.3 1.7 2.5 
 1801 Cocoa beans, whole or broken, raw or roasted 8.4 6.3 4.8 4.1 1.4 1.9 
 1701 Cane or beet sugar and chemically pure sucrose, in solid form 5.4 5.3 3.7 4.1 2.5 1.8 
 2208 Undenatured ethyl alcohol of an alcoholic strength by  volume of less than 80% vol.; spirits, liqueurs and  
other spirituous beverages 5.1 4.1 3.2 2.0 1.7 1.5 
 1905 Bread, pastry, cakes, biscuits and other bakers' wares, whether or not containing cocoa; communion 
wafers, empty cachets of a kind suit able for pharmaceutical use, seal ing wafers, rice paper and similar 
products 0.8 1.6 1.1 1.4 1.3 1.4 
5 - Mineral products 23.5 23.0 22.0 30.6 19.9 16.5 
 2710 Petroleum oils and oils obtained from bituminous minerals, other than crude; preparations not 
elsewhere specified or included, containing by weight 70% or more of petroleum oils or of oils obtained 
from bituminous minerals, these oils being the basic constituents of the preparations; waste oils 18.5 19.4 19.2 24.7 15.1 11.9 
 2523 Portland cement, aluminous cement, slag cement, supersulphate cement and similar hydraulic cements, 
whether or not coloured or in the form of clinkers 4.5 3.1 2.2 2.8 2.3 2.4 
 2603 Copper ores and concentrates 0.0 0.0 0.0 2.6 1.7 1.3 
6 - Products of the chemical or allied industries 5.8 6.0 3.7 4.2 3.5 3.4 
 3105 Mineral or chemical fertilisers containing two or three of the fertilising elem ents nitrogen, phosphorus 
and potassium; other fertilisers; goods of this Chapte r in tablets or similar forms or in packages of a 
gross weight not exceeding 10 kg 1.8 1.6 0.6 0.6 0.6 0.7 
 2932 Heterocyclic compounds with oxygen hetero-atom(s) only 1.0 0.8 0.4 0.6 0.5 0.4  
  WT/TPR/S/319/Rev.1 • Dominican Republic  
 
- 135 - Description 2009  2010  2011  2012  2013  2014 
7 - Plastics and articles thereof 5.1 4.1 3.8 3.6 3.8 5.1 
 3923 Articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, 
of plastics 1.8 1.4 0.9 1.4 1.2 1.6 
 3924 Tableware, kitchenware, other household articles and hygienic or toilet articles, of plastics 1.2 1.2 1.1 0.8 1.2 1.4 
 3921 Other plates, sheets, film, foil and strip, of plastics 0.1 0.1 0.1 0.2 0.3 0.6 
8 - Raw hides and skins, leathe r, furskins and articles ther eof; saddlery and harness 0.2  0.3 0.3 0.2 0.2 0.2 
9 - Wood and articles of wood; wood charcoal 0.2 0.3 0.2 0.2 0.1 0.2 
10 - Pulp of wood or of other fibrous cellulosic ma terial; paper and paperboard and articles thereof 1.5  1.6 1.4 1.3 1.1 1.5 
 4819 Cartons, boxes, cases, bags and other packing co ntainers, of paper, paperboard, cellulose wadding or 
webs of cellulose fibres; box files, letter trays, and simila r articles, of paper or paperboard of a kind 
used in offices, shops or the like 0.6 0.5 0.5 0.4 0.4 0.7 
 4707 Recovered (waste and scrap) paper or paperboard 0.3 0.3 0.3 0.3 0.3 0.3 
 4818 Toilet paper and similar paper, cellulose wadding or webs of cellulose fibres, of a kind used for 
household or sanitary purposes, in rolls of a wi dth not exceeding 36 cm, or cut to size or shape 0.2 0.3 0.2 0.2 0.2 0.2 
11 - Textiles and textile articles 0.8 1.2 0.5 0.4 0.3 0.4 
12 - Footwear, headgear, umbrellas, sun umbrellas, walking-st icks, seat-sticks, whips, ridi ng-crops and parts thereof; 
prepared feathers and articles made therewith 0.2 0.3 0.2 0.2 0.2 0.2 
13 - Articles of stone, plaste r, cement, asbestos, mica or similar materials; ceramic products; glass and glassware 0.9  0.6 0.5 0.6 0.5 0.6 
14 - Natural or cultured pearls, precious or semi-precious stones, precious metals 0.3  0.7 0.4 4.0 27.5 34.7 
 7108 Gold (including gold plated with platinum) unwrou ght or in semi-manufactured forms, or in powder form  0.0 0.0 0.1 3.8 25.7 33.5 
 7106 Silver (including silver plated with gold or plat inum), unwrought or in semi-manufactured forms, or in 
powder form 0.0 0.0 0.0 0.0 0.9 1.1 
15 - Base metals and articles of base metal 11.8 9.6 18.3 13.0 9.0 4.5 
 7214 Other bars and rods of iron or non-alloy steel, not further worked than forged, hot-rolled, hot-drawn or 
hot-extruded, but including those twisted after rolling 5.0 3.5 4.9 2.3 2.1 1.8 
 7204 Ferrous waste and scrap; remelting scrap ingots of iron or steel 1.2 0.9 1.3 1.0 0.8 0.8 
16 - Machinery and mechanical appliances; electrical equipment; parts thereof 3.0  2.9 2.3 2.2 1.7 2.1 
 8481 Taps, cocks, valves and similar appliances for pipes, boiler shells, tanks, vats or the like, including 
pressure-reducing valves and thermostatically controlled valves 0.0 0.0 0.0 0.1 0.3 0.4 
17 - Vehicles, aircraft, vessels and associated transport equipment 0.3  0.7 0.4 0.3 0.3 0.3 
 8704 Motor vehicles for the transport of goods 0.0 0.1 0.0 0.1 0.1 0.1 
 8903 Yachts and other vessels for pleasure or sports; rowing boats and canoes 0.0 0.0 0.0 0.0 0.0 0.1 
 8708 Parts and accessories of the motor vehicles of headings 87.01 to 87.05 0.1 0.0 0.1 0.1 0.1 0.1 
18 - Optical, photographic, cinematogr aphic, measuring, checking or prec ision instruments and apparatus 0.3  0.3 0.2 0.2 0.2 0.1 
19 - Arms and ammunition; parts and accessories thereof 0.0 0.0 0.0 0.0 0.0 0.0 
20 - Miscellaneous manufactured articles 0.8 0.9 0.5 0.7 0.6 0.6 
21 - Works of art, collecto rs' pieces and antiques 0.1 0.0 0.0 0.0 0.0 0.0 
Other 2.6 3.1 2.8 0.0 0.0 0.0 
a  Years 2008-2014 include temporary exports for outward processing. 
Source: WTO Secretariat estimates based on da ta provided by the Dominican authorities.  
  WT/TPR/S/319/Rev.1 • Dominican Republic  
 
- 136 - Table A1. 2 Merchandise exports from free zo nes, by product and HS section, 2009-2014 
(US$ million and %) 
Description 2009  2010  2011  2012  2013  2014 
Total exports from free zones (US$ million)  3,803  4,220  4,817  4,972  5,099  5,249 
 (% of exports) 
1 -  Live animals;  animal products 0.0 0.0 0.0 0.0 0.0 0.0 
2 -  Vegetable products 1.2 1.4 1.2 1.4 1.6 1.5 
 0804 Dates, figs, pineapples, avocados, guavas, mangoes and mangosteens, fresh or dried 0.2 0.2 0.2 0.3 0.4 0.4 
 0709 Other vegetables, fresh or chilled 0.2 0.2 0.3 0.3 0.4 0.4 
3 -  Animal or vegetable fats and oils 0.2 0.2 0.1 0.0 0.0 0.0 
4 -  Prepared foodstuffs; beverages, spirits and vine gar; tobacco and manufacture d tobacco substitutes 12.3  11.9 10.5 11.5 14.8 14.8 
 2402 Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes 7.3 7.2 7.1 8.1 9.8 9.7 
 1801 Cocoa beans, whole or broken, raw or roasted 0.0 0.0 0.0 0.0 1.9 2.3 
 2401 Unmanufactured tobacco; tobacco refuse 2.5 1.7 1.1 1.5 1.2 1.3 
5 -  Mineral products 0.1 0.1 0.1 0.0 0.0 0.0 
6 -  Products of the chemical or allied industries 1.9 3.4 3.9 8.6 8.0 7.2 
 3006 Pharmaceutical goods specified in Note 4 to this Chapter 0.3 0.2 0.1 6.1 5.5 4.3 
 3004 Medicaments (excluding goods of heading 30.02, 30.05 or 30.06) 0.3 0.3 0.6 0.1 0.1 0.8 
 3306 Preparations for oral or dental hygiene, including denture fixative pastes and powders; yarn used to clean 
between the teeth (dental floss), in individual retail packages 0.6 0.6 0.5 0.7 0.7 0.6 
7 - Plastics and articles thereof 5.2 5.0 5.4 4.0 3.0 3.0 
 3923 Articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics 0.7 0.8 0.6 0.9 0.7 0.7 
 3926 Other articles of plastics and articles of other materials of headings 39.01 to 39.14 3.7 3.2 3.5 1.2 0.6 0.6 
 3921 Other plates, sheets, film, foil and strip, of plastics 0.0 0.0 0.0 0.8 0.6 0.5 
8 -  Raw hides and skins, leat her, furskins and ar ticles thereof; saddlery and harness 0.4  0.8 0.7 0.5 0.4 0.6 
9 -  Wood and articles of wood; wood charcoal 0.1 0.1 0.0 0.0 0.0 0.0 
10 -  Pulp of wood or of other fibrous cellulosic ma terial; paper and paperboard and articles thereof 3.5  3.2 2.5 0.5 0.5 0.5 
11 -  Textiles and textile articles 24.2 22.8 26.1 26.2 25.5 24.6 
 6109 T-shirts, singlets and other vests, knitted or crocheted 2.1 1.9 4.0 5.7 4.9 5.9 
 6203 Men's or boys' suits, ensembles, jackets, blazers,  trousers, bib and brace overalls, breeches and shorts 
(other than swimwear) 2.5 2.1 2.4 2.8 3.0 3.4 
 5212 Other woven fabrics of cotton 0.0 0.0 0.0 3.2 3.7 3.3 
 6212 Brassieres, girdles, corsets, braces, suspenders, garters and similar articles and parts thereof, whether or not 
knitted or crocheted 1.9 1.7 1.9 1.9 1.8 2.8 
 5209 Woven fabrics of cotton, containing 85% or more by weight of cotton, weighing more than 200 g/m2 0.0 0.0 0.0 3.9 4.6 2.7 
12 -  Footwear, headgear, umbrellas, sun umbrellas, walking-st icks, seat-sticks, whips, ridi ng-crops and parts thereof; 
prepared feathers and articles made therewith 5.2 7.1 7.5 8.0 8.0 8.0 
 6405 Other footwear 4.1 5.5 5.5 2.6 1.9 4.3 
 6403 Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of leather 0.5 0.7 1.5 4.7 5.4 3.0 
13 -  Articles of stone, plas ter, cement, asbestos, mica or similar materials; ceramic products; glass and glassware 0.1  0.0 0.0 0.0 0.0 0.0 
14 -  Natural or cultured pearls, precious or semi-precious stones, precious metals 11.5  11.0 10.8 9.0 7.0 5.2 
 7113 Articles of jewellery and parts thereof, of precious metal or of metal clad with precious metal 10.6 10.5 10.2 7.0 5.5 4.7 
 7108 Gold (including gold plated with platinum) unwrou ght or in semi-manufactured forms, or in powder form 0.0 0.1 0.1 1.4 1.4 0.3  
  WT/TPR/S/319/Rev.1 • Dominican Republic  
 
- 137 - Description 2009  2010  2011  2012  2013  2014 
15 -  Base metals and articles of base metal 1.5 2.1 2.8 2.7 3.0 2.9 
 7404 Copper waste and scrap 0.3 0.3 0.4 0.7 0.9 0.8 
 7204 Ferrous waste and scrap; remelting scrap ingots of iron or steel 0.5 0.9 1.4 0.7 0.5 0.5 
16 -  Machinery and mechanical appliances; electrical equipment; parts thereof 15.0  13.9 12.6 12.4 11.8 13.2 
 8536 Electrical apparatus for switching or protecting electric al circuits, or for making connections to or in electrical 
circuits (for example, switches, re lays, fuses, surge suppressors, plugs,  sockets, lamp-holders and other 
connectors, junction boxes) 5.8 7.1 1.2 8.7 8.4 9.2 
17 -  Vehicles, aircraft, vessels and associated transport equipment 0.0 0.0 0.0 0.0 0.1 0.1 
18 -  Optical, photographic, cinemato graphic, measuring, checking or pr ecision instruments and apparatus 17.1  16.6 15.2 14.8 15.7 17.8 
 9018 Instruments and appliances used in medical, surgical , dental or veterinary sciences, including scintigraphic 
apparatus, other electro- medical apparatus and sight-testing instruments 16.7 16.3 14.9 13.9 14.7 16.6 
19 -  Arms and ammunition; parts and accessories thereof N/A 0.0 N/A N/A N/A N/A 
20 -  Miscellaneous manufactured articles 0.5 0.4 0.4 0.4 0.5 0.4 
21 -  Works of art, collec tors' pieces and antiques 0.0 0.0 0.0 0.0 0.0 0.0 
Other 0.0 0.0 N/A N/A N/A N/A 
N/A Not applicable. 
Source: WTO Secretariat estimates based on da ta provided by the Dominican authorities. 
  
  WT/TPR/S/319/Rev.1 • Dominican Republic  
 
- 138 - Table A1. 3 Merchandise imports (f.o.b.), by product and HS section, 2009-2014 
(US$ million and %) 
Description 2009  2010  2011  2012  2013  2014 
Total imports (f.o.b.)  (US$ million)  12,384  15,487  17,328  18,113  17,122  17,753 
 (% of imports) 
1 - Live animals; animal products 2.5 2.4 2.1 2.1 2.3 2.5 
2 - Vegetable products  5.0 4.6 4.9 4.2 4.1 3.9 
 1005  Maize (corn) 1.4 1.4 1.7 1.6 1.6 1.3 
 1001 Wheat and meslin 0.9 0.9 1.1 1.0 0.9 0.9 
 1208 Flours and meals of oil seeds or oleaginous fruits, other than those of mustard 1.3 1.0 0.8 0.3 0.5 0.5 
3 - Animal or vegetable fats and oils  and their cleavage products; prepared edible fats; animal or vegetable 
waxes 1.4 1.3 1.6 1.6 1.4 1.2 
 1507 Soya-bean oil and its fractions, whether or not refined, but not chemically modified 0.9 0.8 0.9 0.9 0.8 0.7 
4 - Prepared foodstuffs; beverages, spirits and vine gar; tobacco and manufactured tobacco substitutes 5.9  5.3 5.2 6.1 6.4 6.9 
 2401 Unmanufactured tobacco; tobacco refuse 1.3 0.9 0.9 0.9 1.0 0.9 
5 - Mineral products 22.5 22.4 27.4 27.1 26.1 23.1 
2710 Petroleum oils and oils obtained from bituminous minerals, other than crude; preparations not 
elsewhere specified or included, containing by weig ht 70% or more of petroleum oils or of oils 
obtained from bituminous minerals, these oils be ing the basic constituents of the preparations; 
waste oils 12.5 12.6 15.8 16.7 14.6 12.4 
 2709 Petroleum oils and oils obtained from bituminous minerals, crude 4.8 4.4 5.6 5.6 6.1 5.3 
 2711 Petroleum gases and other gaseous hydrocarbons 3.8 3.9 4.3 3.5 3.8 4.3 
6 -  Products of the chemical or allied industries 8.0 7.8 8.0 7.8 8.9 8.7 
 3004 Medicaments (excluding goods of heading 30.02, 30.05 or 30.06) consisting of mixed or unmixed 
products for therapeutic or prophyla ctic uses, put up in measured doses (including those in the form 
of transdermal administration systems) or  in forms or packings for retail sale 2.4 2.3 2.3 2.2 2.5 2.4 
7 -  Plastics and articles thereof; rubber and articles thereof 6.8  6.6 6.6 6.6 7.4 7.6 
 3926 Other articles of plastics and articles of other materials of headings 39.01 to 39.14 2.1 1.9 1.9 1.7 1.9 2.0 
 3923 Articles for the conveyance or packing of goods, of plastics; 
stoppers, lids, caps and ot her closures, of plastics 0.6 0.6 0.6 0.7 0.9 0.9 
8 - Raw hides and skins, leather, furskins and articles thereof; saddlery and harness;  travel goods, handbags 
and similar containers; articles of an imal gut (other than silk-worm gut) 0.6 0.7 0.9 0.8 0.8 1.0 
4104 Tanned or crust hides and skins of bovine (inclu ding buffalo) or equine animals, without hair on, 
whether or not split, but not further prepared 0.1 0.1 0.2 0.2 0.2 0.2 
4107 Leather further prepared after tanning or crusting, including parchment-dressed leather, of bovine 
(including buffalo) or equine animals, without hair  on, whether or not split, other than leather of 
heading 41.14 0.2 0.3 0.2 0.2 0.2 0.2 
9 - Wood and articles of wood; wood charcoal; cork and ar ticles of cork; manufactures of  straw, of esparto or of 
other plaiting materials; basketware and wickerwork 0.8 1.0 0.7 0.7 0.9 0.9 
10 - Pulp of wood or of other fibrous cellulosic mate rial; recovered (waste and scrap) paper or paperboard; 
paper and paperboard and articles thereof 3.3 3.5 2.9 2.5 2.7 2.8 
11 - Textiles and textile articles 7.6 6.9 6.7 6.3 6.8 7.6 
6310 Used or new rags, scrap twine, cordage, rope an d cables and worn out articles of twine, cordage, 
rope or cables, of textile materials 0.2 0.1 0.2 0.2 0.3 0.9  
  WT/TPR/S/319/Rev.1 • Dominican Republic  
 
- 139 - Description 2009  2010  2011  2012  2013  2014 
 5207 Cotton yarn (other than sewing thread) put up for retail sale 0.7 0.7 0.7 1.2 0.7 0.9 
 5205 Cotton yarn (other than sewing thread), containing 85% or more by weight of cotton, not put up for 
retail sale 0.2 1.0 1.4 0.4 0.6 0.7 
 5209 Woven fabrics of cotton, containing 85% or more by weight of cotton, weighing more than 200 g/m2 1.0 0.9 0.8 0.7 0.8 0.6 
12 - Footwear, headgear, umbrellas, s un umbrellas, walking-sticks, seat-sticks, whips, riding-crops and parts 
thereof; prepared feathers and articles made therew ith; artificial flowers; articles of human hair 1.1 1.1 0.9 1.0 1.1 1.0 
13 - Articles of stone, plaste r, cement, asbestos, mica or similar materials; ceramic products; glass and glassware 1.5  1.4 1.2 1.2 1.4 1.4 
14 - Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious 
metal and articles thereof; imitation jewellery; coin 2.1 1.7 1.6 1.4 1.5 1.7 
 7113  Articles of jewellery and parts thereof, of precious metal or of metal clad with precious metal 1.0 0.7 0.6 0.7 0.7 0.9 
 7108 Gold (including gold plated with platinum) unwr ought or in semi-manufactured forms, or in powder 
form 0.5 0.4 0.6 0.4 0.5 0.5 
15 - Base metals and articles of base metal 5.9 6.9 7.1 5.9 5.6 6.3 
 7206 Iron and non-alloy steel in ingots or other primary forms (excluding iron of heading 72.03) 1.1 1.2 0.9 0.8 0.7 0.8 
 7207 Semi-finished products of iron or non-alloy steel 0.0 0.2 1.3 0.7 0.6 0.7 
16 - Machinery and mechanical appliances; electrical equi pment; parts thereof; sound recorders and reproducers, 
television image and sound recorders and reproducers, and parts and accessories of such articles 16.8 17.0 14.0 15.0 14.2 13.9 
 8517 Telephone sets, including telephones for cellular networks or for other wireless networks; other 
apparatus for the transmission or reception of voic e, images or other data, including apparatus for 
communication in a wired or wireless network (suc h as a local or wide area network), other than 
transmission or reception apparatus of heading 84.43, 85.25, 85.27 or 85.28 2.3 2.5 1.7 1.6 1.9 1.7 
17 - Vehicles, aircraft, vessels and associated transport equipment 5.3  6.6 4.8 5.9 5.0 5.8 
 8703 Motor cars and other motor vehicles principally designed for the transport of persons 
(other than those of heading 87.02), including station wagons and racing cars 2.9 3.7 2.8 2.8 2.9 3.5 
18 - Optical, photographic, cinematograp hic, measuring, checking, precision, medical or surgical instruments and 
apparatus; clocks and watches; musical instruments; parts and accessories thereof 1.3 1.5 1.6 1.8 1.4 1.6 
19 - Arms and ammunition; parts and accessories thereof 0.1 0.1 0.0 0.1 0.1 0.2 
20 - Miscellaneous manufactured articles 1.7 1.5 1.5 1.8 1.8 1.9 
21 - Works of art, collecto rs' pieces and antiques 0.0 0.0 0.0 0.0 0.0 0.0 
Other 0.0 0.0 0.0 0.0 0.0 0.0 
Source: WTO Secretariat estimates based on da ta provided by the Dominican authorities. 
 WT/TPR/S/319/Rev.1 • Dominican Republic 
- 140 - 
 
 Table A1. 4 Exports of consumer goods and re-exports, by trading partner, 2009-2014 
(US$ million and %) 
Description 2009  2010  2011  2012 2013 2014  
Total exports (US$ million)  1,726  2,604  3,689  4,107 4,483 4,679  
 (% of exports) 
America 58.8  64.0 56.9 62.0 68.5 66.5  
 USA 28.1 20.2 19.5 19.3 16.6 19.3 
 Other America 30.8 43.8 37.4 42.6 51.9 47.3 
  Haiti 15.2 29.0 26.2 24.5 21.1 20.2 
  Canada 0.8 0.6 0.6 1.0 21.0 18.6 
  Venezuela, Boliva rian Republic of  0.6 0.8 1.8 0.6 1.1 1.9 
  Jamaica 2.3 1.8 1.2 1.4 0.9 0.9 
  Cuba 1.3 1.3 0.9 0.7 0.8 0.7 
  Trinidad and Tobago 0.6 0.5 0.5 1.1 0.5 0.6 
  Panama 1.2 0.7 0.5 0.9 0.4 0.5 
  Mexico 1.1 1.0 0.6 0.7 0.3 0.4 
  Colombia 0.2 0.2 0.3 0.2 0.5 0.4 
  Suriname 0.5 0.4 0.4 0.5 0.4 0.4 
Europe 15.7 14.4 15.4 11.7 12.5 15.2 
 EU(28) 15.6 14.3 14.9 11.4 11.7 10.0 
  United Kingdom 4.5 3.6 3.0 3.9 3.6 3.3 
  Spain 4.3 3.4 2.7 2.2 2.0 1.4 
  Belgium 2.1 2.4 1.9 1.5 1.7 1.1 
  Netherlands 1.9 2.3 2.4 0.9 0.5 0.9 
 EFTA 0.1 0.1 0.5 0.3 0.8 5.1 
  Switzerland and Liechtenstein  0.0 0.0 0.2 0.3 0.7 5.0 
 Other Europe 0.0 0.0 0.0 0.0 0.0 0.0 
Commonwealth of Independent States 0.2  0.1 0.0 0.0 0.0 0.0  
Africa 0.2 0.3 2.6 1.8 0.8 0.1 
 Nigeria 0.0 0.0 2.0 1.5 0.7 0.0 
Middle East 0.2 0.1 0.1 0.2 0.2 0.1 
 Israel 0.0 0.0 0.0 0.2 0.1 0.1 
Asia 5.6 5.0 9.8 9.6 5.4 5.7 
 China 3.5 2.8 7.1 7.2 3.4 2.1 
 Japan 0.1 0.1 0.7 0.4 0.3 0.0 
 Six East Asian Traders 1.0 1.4 1.0 1.3 1.3 0.7 
  Korea, Republic of  0.5 0.7 0.7 1.1 0.6 0.4 
  Chinese Taipei N/A N/A N/A N/A N/A 0.2 
  Malaysia 0.0 0.1 0.0 0.0 0.0 0.0 
  Thailand 0.0 0.1 0.2 0.2 0.2 0.0 
  Hong Kong, China  0.4 0.4 0.1 0.1 0.4 0.0 
  Singapore 0.0 0.1 0.0 0.0 0.0 0.0 
 Other Asia 0.9 0.7 0.9 0.7 0.4 2.8 
  India 0.4 0.4 0.0 0.0 0.1 2.7 
  Viet Nam 0.5 0.2 0.4 0.4 0.2 0.1 
Other 19.3  16.0 15.2 14.6 12.6 12.3  
N/A Not applicable. 
Source:  WTO Secretariat estimates based on da ta provided by the Dominican authorities. 
 WT/TPR/S/319/Rev.1 • Dominican Republic 
- 141 - 
 
 Table A1. 5 Merchandise exports from fr ee zones, by trading partner, 2009-2014 
(US$ million and %) 
Description 2009 2010 2011 2012 2013 2014 
Total exports (US$ million)  3,803  4,220  4,817  4,972 5,099 5,249  
 (% of exports) 
America 81.7  78.0 75.4 81.1 81.2 89.7  
 USA 68.3 66.2 62.8 68.5 67.5 75.7 
 Other America 13.4 11.8 12.6 12.6 13.7 14.0 
  Haiti 10.1 9.0 8.9 9.3 9.6 9.1 
  Canada 0.3 0.3 0.6 0.5 0.6 0.8 
  Venezuela, Boliva rian Republic of 0.3 0.2 0.3 0.3 0.5 0.6 
  Colombia 0.1 0.0 0.1 0.4 0.4 0.5 
  Nicaragua 0.1 0.1 0.2 0.2 0.4 0.4 
  Mexico 0.1 0.1 0.1 0.1 0.2 0.4 
Europe 6.1 5.7 5.4 5.4 6.6 6.5 
 EU(28) 5.8 5.4 5.3 5.3 6.4 6.2 
  Netherlands 1.8 1.7 2.6 1.8 2.3 2.4 
  Germany 1.0 0.8 0.6 1.1 1.6 1.6 
  Spain 0.4 0.4 0.3 0.4 0.6 0.5 
  Belgium 1.4 1.4 0.7 0.5 0.6 0.4 
  Italy 0.2 0.2 0.3 0.2 0.3 0.4 
 EFTA 0.2 0.2 0.1 0.1 0.2 0.3 
  Switzerland and Liechtenstein 0.2 0.2 0.1 0.1 0.2 0.3 
 Other Europe 0.0 0.0 0.0 0.0 0.0 0.0 
Commonwealth of Independent States 0.0 0.2 0.1 0.0 0.0 0.0 
Africa 0.1  0.1 0.1 0.1 0.1 0.1  
Middle East 0.1 0.1 0.1 0.1 0.1 0.3 
Asia 2.4  3.6 3.5 3.9 3.7 3.4  
 China 0.9 1.3 1.4 1.3 1.5 1.1 
 Japan 0.4 0.2 0.2 0.2 0.3 0.3 
 Six East Asian Traders 0.6 0.7 0.9 1.3 1.3 1.3 
  Korea, Republic of 0.1 0.3 0.4 0.7 0.6 0.6 
  Hong Kong, China 0.3 0.2 0.3 0.3 0.3 0.3 
  Singapore 0.1 0.1 0.1 0.2 0.3 0.2 
  Thailand 0.1 0.0 0.0 0.0 0.0 0.1 
  Chinese Taipei N/A N/A N/A N/A N/A 0.1 
  Malaysia 0.1 0.1 0.2 0.1 0.1 0.0 
 Other Asia 0.6 1.4 1.0 1.0 0.6 0.8 
  India 0.1 0.7 0.0 0.1 0.1 0.3 
  Australia 0.1 0.2 0.2 0.1 0.1 0.1 
  Bangladesh 0.1 0.1 0.1 0.0 0.1 0.1 
Other 9.6  12.3 15.4 9.4 8.4 0.0  
N/A Not applicable. 
Source: WTO Secretariat estimates based on da ta provided by the Dominican authorities. 
 WT/TPR/S/319/Rev.1 • Dominican Republic 
- 142 - 
 
 Table A1. 6 Merchandise imports (f.o .b.), by trading partner, 2009-2014 
(US$ million and %) 
Description 2009  2010  2011  2012 2013 2014  
Total imports (US$ million)  12,384  15,487  17,328  18,113 17,122 17,753  
 (% of imports) 
America 74.2  72.4 75.6 73.0 73.1 69.5  
 USA 41.8 40.7 40.5 38.4 38.4 41.0 
 Other America 32.4  31.7 35.0 34.6 34.6 28.5  
  Mexico 4.7 5.6 6.0 5.3 6.1 6.0 
  Venezuela, Bolivari an Republic of  6.5  6.1 6.9 6.7 6.4 5.2  
  Trinidad and Tobago 2.6 3.1 4.4 4.1 4.0 4.6 
  Brazil 2.4  2.2 2.3 2.8 2.6 2.0  
  Colombia 4.4 3.6 4.1 3.0 2.1 1.9 
  Canada 1.2  1.2 1.0 0.9 0.9 1.6  
  Costa Rica 1.6 1.5 1.3 1.3 1.4 1.3 
  Bahamas 1.2  1.8 0.9 1.9 2.1 0.9  
  Guatemala 0.9 0.9 0.7 0.6 0.7 0.9 
  Argentina 1.2  1.0 1.4 1.5 1.5 0.7  
Europe 11.2 10.1 9.7 11.4 9.8 10.4 
 EU(28) 10.4  9.3 9.0 10.7 9.0 9.5  
  Spain 2.2 1.8 2.2 3.0 2.2 2.5 
  Germany 2.1  1.7 1.6 1.6 1.8 1.6  
  Italy 1.5 1.3 1.1 1.4 1.2 1.3 
  France 0.8  0.8 0.9 0.8 0.8 0.9  
  United Kingdom 1.2 1.1 0.7 0.9 0.8 0.9 
 EFTA 0.6  0.6 0.5 0.5 0.5 0.6  
  Switzerland and Liechtenstein 0.3 0.3 0.3 0.2 0.2 0.3 
 Other Europe 0.2  0.2 0.2 0.2 0.3 0.3  
  Turkey 0.2 0.2 0.2 0.2 0.3 0.3 
Commonwealth of Independent States 0.2  0.1 0.1 0.1 0.1 0.6  
 Russian Federation 0.1 0.1 0.1 0.1 0.1 0.5 
Africa 0.1  0.1 0.1 0.2 0.2 0.1  
Middle East 0.2 0.2 0.2 0.5 0.3 0.2 
 Israel 0.2  0.1 0.1 0.1 0.3 0.1  
Asia 14.1 17.0 14.3 14.9 16.6 17.7 
 China 0.1  8.2 8.9 9.3 10.2 11.0  
 Japan 1.4 2.2 1.4 1.9 1.8 2.0 
 Six East Asian Traders 11.2  5.0 2.6 2.2 3.0 2.9  
  Korea, Republic of 0.5 0.9 0.8 0.9 1.4 1.4 
  Chinese Taipei 9.6  2.6 0.6 0.5 0.6 0.6  
  Hong Kong, China 0.3 0.3 0.4 0.3 0.4 0.4 
  Thailand 0.4  0.5 0.4 0.3 0.3 0.3  
  Malaysia 0.2 0.7 0.2 0.2 0.2 0.2 
  Singapore 0.1  0.1 0.1 0.1 0.1 0.1  
 Other Asia 1.5 1.6 1.5 1.4 1.5 1.8 
 India 0.5  0.7 0.6 0.6 0.7 0.8  
 Viet Nam 0.2 0.2 0.2 0.3 0.2 0.4 
 Indonesia 0.2  0.1 0.1 0.2 0.2 0.2  
Other 0.0 0.0 0.0 0.0 0.0 1.4 
Source:  WTO Secretariat estimates based on da ta provided by the Dominican authorities. 
   
  WT/TPR/S/319/Rev.1 • Dominican Republic  
 
- 143 - Table A2. 1 Notifications submitted under the WT O Agreements, 1 January 2008–31 December 2014 
Agreement Requirement Frequency WTO document 
(latest document if submitted regularly)  
General Agreement on Tariffs and Trade 
Article XXVIII:5  Modification of schedules (reserve the right to 
modify schedules for a three-year period) On a triennial basis G/MA/264 (09.11.2011) 
Article XXIV:7(a) Agreements establishing free-trade areas Ad hoc WT/REG305/N/1 (09.01.2012) 
WT/REG211/N/1 (21.01.2009) 
WT/REG255/N/1/Rev.1 (24.10.2008) 
General Agreement on Trade in Services 
Article III:4 and/or Article IV:2 Enquiry and contact points Once only  S/ENQ/78/Rev.10 (13.06.2008) 
Article V:7(a) Regional economic integration agreements Ad hoc  S/C/N/614 (09.01.2012) 
S/C/N/471 (21.01.2009) 
S/C/N/469/Rev.1 (24.10.2008) 
Agreement on Trade Facilitation 
Section II, Article 15 Commitments designated under Category A Once only WT/PCTF/N/DOM/1 (31.07.2014)  
Agreement on Agriculture  
Articles 10 and 18.2  Export subsidies (ES:1) On an annual basis G/AG/N/DOM/21 (15.08.2013) 
Article 18.2 Domestic support (DS:1) On an annual basis  G/AG/N/DOM/23 (05.02.2014) 
Article 18.2 Volume of imports under tariff quotas (MA:2)  On an annual basis G/AG/N/DOM/22 (04.02.2014) 
Agreement on Implementation of Article VI of the GATT 1994 (Anti-Dumping Agreement)  
Article 16.4 Anti-dumping actions On a semi-annual basis G/ADP/N/259/DOM (30.09.2014) 
Article 16.5  Investigating authority Once only, subsequently notification of 
changes G/ADP/N/14/Add.29 (22.04.2010) 
Article 18.5  Laws and regulations, and changes thereto Once only, subsequently notification of 
changes G/ADP/N/1/DOM/3/Suppl.1 (04.03.2009) 
Agreement on Preshipment Inspection  
Article 5  Laws and regulations Once only, subsequently notification of 
changes G/PSI/N/1/Add.15 (27.06.2011) 
Agreement on Import Licensing Procedures  
Article 7.3  Replies to questionnaire on import licencing 
procedures On an annual basis G/LIC/N/3/DOM/7 (15.08.2013) 
Agreement on the Application of Sanitary and Phytosanitary Measures  
Article 7 and Annex B Sanitary and phytosanitary regulations Once only, subsequently notification of 
changes G/SPS/N/DOM/4 (12.06.2008) 
G/SPS/N/DOM/60 (05.12.2014) 
G/SPS/N/EQV/DOM/ 1 (19.06.2008) 
Agreement on Technical Barriers to Trade  
Article 2.9 Technical regulations  Before or, in urgent  cases, immediately 
after a measure is taken G/TBT/N/DOM/52 (01.09.2009) 
G/TBT/N/DOM/220 (16.10.2013) 
Article 2.10 Technical regulations (urgent) Before or, in urgent  cases, immediately 
after a measure is taken G/TBT/N/DOM/197 (08.07.2013) 
G/TBT/N/DOM/182 (29.08.2012)   
  WT/TPR/S/319/Rev.1 • Dominican Republic  
 
- 144 - Agreement Requirement Frequency WTO document 
(latest document if submitted regularly)  
Articles 2.9 and 5.6 Technical regulations Before or, in urgent  cases, immediately 
after a measure is taken G/TBT/N/DOM/204 (08.07.2013) 
G/TBT/N/DOM/202 (08.07.2013) 
G/TBT/N/DOM/194 (08.07.2013) 
G/TBT/N/DOM/193 (08.07.2013) 
Article 5.6  Conformity assessment procedures Before or, in urgent  cases, immediately 
after a measure is taken G/TBT/N/DOM/122 (22.11.2011) 
G/TBT/N/DOM/213 (16.10.2013) 
Agreement on Safeguards  
Article 9.1, footnote 2  Non-application of safegu ard measures against a 
product originating in a developing country 
Member Ad hoc  G/SG/N/10/DOM/2 (03.11.2010) 
G/SG/N/11/DOM/2/Suppl.1 (03.11.2010) 
G/SG/N/8/DOM/2/Suppl.1 (03.11.2010) 
G/SG/N/11/DOM/2 (20.05.2010) 
G/SG/N/7/DOM/2 (20.05.2010) 
G/SG/N/8/DOM/2 (20.05.2010) 
G/SG/N/11/DOM/1 (06.04.2010) 
G/SG/N/7/DOM/1 (06.04.2010) 
G/SG/N/8/DOM/1 (06.04.2010)  
Article 12.1(a)  Safeguard measures  Upon initiating an investigatory process 
relating to serious injury or threat thereof G/SG/N/6/DOM/5 (10.03.2010) 
G/SG/N/6/DOM/4 (21.01.2010) 
G/SG/N/6/DOM/3 (14.01.2010) 
G/SG/N/6/DOM/2 (30.10.2009) 
G/SG/N/6/DOM/1 (11.05.2009) 
Article 12.1(b) Safeguard measures  Upon making a finding of serious injury or 
threat thereof G/SG/N/10/DOM/2 (03.11.2010) 
G/SG/N/11/DOM/2/Suppl.1 (03.11.2010) 
G/SG/N/8/DOM/2/Suppl.1 (03.11.2010) 
G/SG/N/11/DOM/2 (20.05.2010) 
G/SG/N/7/DOM/2 (20.05.2010) 
G/SG/N/8/DOM/2 (20.05.2010) 
G/SG/N/11/DOM/1 (06.04.2010) 
G/SG/N/7/DOM/1 (06.04.2010) 
G/SG/N/8/DOM/1 (06.04.2010) 
Article 12.1(c) Safeguard measures  Upon taking a decision to apply or extend 
a safeguard  measure  G/SG/N/10/DOM/2 (03.11.2010) 
G/SG/N/11/DOM/2/Suppl.1 (03.11.2010) 
G/SG/N/8/DOM/2/Suppl.1 (03.11.2010) 
 
Article 12.4  Provisional safeguard measures Before taking the provisional measure  G/SG/N/11/DOM/2 (20.05.2010) 
G/SG/N/7/DOM/2 (20.05.2010) 
G/SG/N/8/DOM/2 (20.05.2010) 
G/SG/N/11/DOM/1 (06.04.2010) 
G/SG/N/7/DOM/1 (06.04.2010) 
G/SG/N/8/DOM/1 (06.04.2010) 
Article 12.6  Laws and regulations, an d modifications thereto Once only, subsequently notification of 
changes G/SG/N/1/DOM/2/Suppl.1 (04.03.2009)   
  WT/TPR/S/319/Rev.1 • Dominican Republic  
 
- 145 - Agreement Requirement Frequency WTO document 
(latest document if submitted regularly)  
Not specified (withdrawal)  Termination of investigatory process  Ad hoc  G/SG/N/9/DOM/3 (27.05.2010) 
G/SG/N/9/DOM/2 (02.03.2010) 
G/SG/N/9/DOM/1 (13.01.2010) 
Agreement on Rules of Origin 
Annex II (paragraph 4) of the 
Agreement on Rules of Origin Preferential rules of origin Once only, subsequently notification of 
changes G/RO/N/88 (18.01.2013) 
Agreement on Subsidies and Countervailing Measures  
Article 25.1 and Article XVI:1 of 
the GATT  Any subsidy as defined in paragraph 1 of 
Article 1 of the Agreement, which is specific 
within the meaning of Article 2  On a triennial basis G/SCM/N/253/DOM (03.07.2013) 
G/SCM/N/260/DOM (03.07.2013) 
Article 25.11 Reports -  Actions taken with respect to 
countervailing duties On a semi-annual basis G/SCM/N/274 (23.06.2014) 
Article 25.12 Investigating authority Once, upon entry into force of the WTO 
Agreement; ad hoc as and when a Member 
establishes such authorities and procedures  G/SCM/N/18/Add.29 (22.04.2010) 
Article 27.4 and paragraph 2(a) 
and (c) of Decision WT/L/691 Subsidies: extension of the transition period for 
the elimination of export subsidies On an annual basis until the end of the 
transition period on 31.12.2015 G/SCM/N/275/DOM (15.07.2014) 
 
Article 32.6  Laws and regulations, and changes thereto Once only, subsequently notification of 
changes G/ADP/N/1/DOM/3/Suppl.1 (04.03.2009) 
G/SCM/N/1/DOM/2/Suppl.1 (04.03.2009) 
G/SG/N/1/DOM/2/Suppl.1 (04.03.2009) 
Source: WTO Secretariat. WT/TPR/S/319/Rev.1 • Dominican Republic 
 
- 146 - 
 
  Table A2. 2 WTO dispute settlement cases involving the Dominican Republic, 2008-2014 
(at 31 December)  
Participating 
Members  Case Request for 
consultations Status Documents 
Complaints filed by the Dominican Republic  
Australia Tobacco plain packaging 18.07.2012 Panel established and 
constituted in May 2014  WT/DS441 
Complaints filed against the Dominican Republic  
Costa Rica 
Guatemala 
Honduras 
El Salvador Safeguard measures on 
imports of polypropylene 
bags and tubular fabric 
 15.10.2010 
15.10.2010 
18.10.2010 
19.10.2010 Adoption of the Panel 
report in February 2012 WT/DS415 
WT/DS416 
WT/DS417 
WT/DS418 
Participation of the Dominican Republic as a third party (complainant/respondent)  
Indonesia/ 
United States Measures affecting the 
production and sale of 
clove cigarettes 07.04.2010 Adoption of the Panel 
report and the Appellate 
Body report in 
April 2012 WT/DS406 
Ukraine/Australia 
Honduras/Australia 
Cuba/Australia 
Indonesia/Australia Tobacco plain packaging 13.03.2012 
04.04.2012 
03.05.2013 
20.09.2013 Panel established and 
constituted in May 2014 WT/DS434 
WT/DS435 
WT/DS458 
WT/DS467 
Source: WTO Secretariat. 
   
  WT/TPR/S/319/Rev.1 • Dominican Republic  
- 147 - Table A3. 1 Customs procedures, 2014 
Type of 
procedure  Procedure and description 
Definitive  1. Definitive importation (or clearance for home  use): involves the entry of goods into the Dominican Republic for final use or co nsumption in the country 
(Articles 51 and 53 of Law No. 3489 of 14 February 1953). 
2. Outright exportation: involves the exit of domestic or imported goods from the Customs territory for final use or consumption a broad (Articles 125-129 
of Law No. 3489 of 14 February 1953). 
Transit  3.International or domestic transit of goods (Articles 135-139 of Law No. 3489 of 14 February 1953). 
Temporary 4. Temporary admission (importation) for re-exportation in the same state: involves the importation of certain goods into the Domi nican Republic, 
irrespective of their origin and without payment of import duties, for re-exportation. This procedure applies to professional e quipment (press, television 
or information technology equipment used for professional or bu siness activities), commercial samples, goods for exhibitions or  demonstrations, goods 
for sports purposes, machinery and equipment for conducting civi l works under contract with the Dominican Government (Resolutio n No. 68-06 of 
10 October 2006 issued by the Ministry of Finance, and General Standard No. 001-2014 of 26 November 2014 issued by the Director ate-General of 
Customs).  
5. Temporary exit (exportation): involves the exportation of Dominican goods for a limited period of time and their subsequent re- importation into the 
country in the same state (Articles 13(e) and 13(f) of Law No. 14-93, as amended by Law No. 146-00).  
Customs 
warehousing 6. Customs warehousing: enables imported goods to be stored in Cu stoms warehouses under Customs control, without payment of import  duties and 
taxes, for a period of six months (Article 3 of Law No. 456 of 3 January 1973). 
7. Warehousing for re-exportation: involves th e importation of certain foreign goods and their storage under Customs control in a location designated for 
this purpose, without payment of import duties and taxes, for a maximum period of 90 days before  re-exportation and upon paymen t of 1.5% of the 
c.i.f. value of the goods (Articles 1 and 17 of Decree No. 106-96 of 25 March 1996). 
8. Private warehousing: enables imported goods to be stored in private warehouses owned by the consignees, under Customs supervisi on, for a period of 
three months (extendable by up to nine additional months) and upon payment of the corresponding  warehousing fees (Articles 104- 113 of Law 
No. 3489 of 14 February 1953 and Law No. 338 of 1964 amending Articles 52 and 105 of Law No. 3489).  
Special 
procedures 9. Temporary admission (importation) for inward processing: involves  the entry into the Dominican Republic of certain goods from a broad or from free 
zones, without payment of import duties an d taxes, and their subsequent re-exportation within 18 months. Eligible imports inclu de inputs and 
intermediate goods, containers and packaging, and parts of machin ery or equipment used to proces s goods for export (Article 8 o f Law No. 84-99 of 
6 August 1999). 
10. Temporary exit (exportation) for outward processing: involves th e temporary exportation of domest ic or imported goods for manuf acturing, processing 
or repair abroad and their subsequent re-imp ortation, subject to the payment of duties or exemptions in accordance with the law  (Article 13 of Law 
No. 14-93, as amended by Law No. 146-00).  
11. Industrial free zone or services procedure: enables goods to be imported free of duties or other taxes. Such goods are therefor e not considered to be in 
the Dominican Republic (Law No. 8-90 of 15 January 1990). 
12. Commercial free zone procedure: allows for the importation of g oods exempt from import duties. Commercial free zones are port a nd airport zones, 
authorized by the Directorate-General of Customs to market fore ign and domestic goods that are exempt from the payment of impor t duties (Law 
No. 4315 of 22 October 1955). 
Source: WTO Secretariat, based on data provided by the Dominican authorities.   
  WT/TPR/S/319/Rev.1 • Dominican Republic  
- 148 - Table A3. 2 Overview of the protection of intellect ual property rights in the Dominican Republic, 2014 
 Legislation Scope Duration Main exclusions and limitations  Copyright and 
related rights Articles 2, 19, 21, 30-44 
of Law No. 65-00 and 
amendments thereto Original literary, artistic and scientific 
works susceptible of disclosure or 
reproduction by any medium and 
related, in particular, to literature, 
music, drama, dance, photography, 
architecture, audiovisual works, 
painting, radio and te levision broadcasts, 
computer programs and databases or 
compilations.  The life of the author and 70 years 
after his death. 
 
For works of joint authorship, 
photographs, audiovisual works, 
phonograms, computer programs 
and broadcasts, 70 years as of the 
date of the first publication or 
broadcast. The owner retains the right to prohibit the 
reproduction, alteration or distribution of the work 
covered by the copyright. 
No authorization is required for the reproduction of 
articles on current affairs in the press, in broadcasting 
or wire transmission unless it is expressly prohibited 
and provided that the source is cited; for reproduction 
for research purposes or repr oduction of a single copy 
of the work for personal us e and without gainful intent. 
 Patents Articles 1, 2, 27 and 41 
of Law No. 20-00 and 
amendments thereto 
under Law No. 424-06 Any invention susceptible of industrial 
application that is new and involves an 
inventive step. It may refer to a product 
or a process. 20 years as of the date of filing. 
 
The term is not renewable unless 
there has been unreasonable delay 
in granting the patent on the part 
of the authorities. The following may not be patented: scientific theories 
and mathematical methods,  economic or business 
plans, computer programs, surgical, therapeutic or 
diagnostic methods, live material present in nature, 
plants and animals (with the exception of 
micro-organisms) and biological procedures for their 
production; inventions that are contrary to human or 
animal health or life or susceptible of harming the 
environment. Utility 
models Articles 49, 51 and 53 
of Law No. 20-00 and 
amendments thereto 
under Laws No. 424-06 
and No. 493-06 Any new form, configuration or 
arrangement of elements of any device, 
instrument or mechan ism or other object 
that enables it to function better or gives 
it a technical advantage. 15 years as of the date of filing 
the application. Chemical, metallurgical pr ocedures, substances or 
compositions or those of any other type, and materials 
excluded from patent protection. Industrial designs Articles 54, 55, 58 and 
67 of Law No. 20-00 
and amendments 
thereto under Laws 
No. 424-06 and 
No. 493-06 Industrial designs that are new and 
original. 5 years as of the date of filing, 
renewable for a further two 5-year 
periods, against payment of the 
established fee. The following are excluded: (a) designs the aspect of 
which is dictated solely by technical considerations; 
(b) designs that must be reproduced exactly to enable 
the product in which the designs are incorporated to be 
assembled and connected with another product; 
(c) designs that  are contrary to public order or 
morality; (d) designs that incorporate a trademark or 
require the use of a work protected in the Dominican 
Republic; and (e) designs that require the use of 
distinctive signs of public interest such as the shield, 
flag and other national emblems.   
  WT/TPR/S/319/Rev.1 • Dominican Republic  
- 149 -  Legislation Scope Duration Main exclusions and limitations  Trademarks Articles 70, 73 and 81 
of Law No. 20-00 
and amendments 
thereto under Law 
No. 424-06 Protection is grante d to any sign or 
combination of signs susceptible of 
graphic representation and capable of 
distinguishing the prod ucts or services of 
a company. 10 years as of the date of filing the 
application: renewable for 
successive 10-year periods. The following, inter alia , may not be registered as 
trademarks: (a) generic names; (b) signs liable to 
mislead as to the characte ristics of products or 
services; (c) signs that reproduce or imitate a 
registered appellation of origin or include the name of a 
protected plant variety; (d) distinctive signs that are 
well-known in the country; and (e) signs that are 
identical or similar to trademarks or trade names 
registered by third persons. Geographical 
indications Articles 70, 124 and 
128 of Law No. 20-00 
and amendments 
thereto under Law 
No. 424-06 Signs or combinations of signs used to 
designate a product originating in a 
country, region, or particular area when 
a particular quality, reputation or other 
characteristic of the good is attributable 
to its geographical origin. Indefinite Protection is denied when the geographical indication 
is: (a) misleadingly similar to a trademark in the 
process of registration or a pre-existing trademark; 
(b) is the common or generi c name of a product; or 
(c) is contrary to public order or morality, or when it 
may mislead the public as to the origin, quality, 
source, characteristics or qualities of the product or 
service. Undisclosed 
information 
(including 
test data) Articles 178 and 181 of 
Law No. 20-00 and 
amendments thereto 
under No. 424-06 Undisclosed commercial information or 
business secrets held by a natural or 
legal person that may be used in any 
production, industrial or commercial 
activity and that is capable of being 
passed on to a third party. Indefinite 
 
Test data: pharmaceuticals 
(5 years) and agricultural 
chemicals (10 years). Protection is denied for information that is generally 
known or easily accessible in circles which normally 
deal with such information. New plant varieties Articles 7-8 and 24 of 
Law No. 450-06 Plant varieties that are new, distinct, 
homogenous and stable. 20 years as of the date of granting 
the breeder's right. 
 
For trees and vines, 25 years as of 
this date. The breeder's rights do not include the following: acts 
by individuals for non-commercial purposes, for 
experimental purposes or for the purpose of breeding 
other varieties, unless the variety is essentially derived 
from the protected variety. 
 
Whoever reserves and sows for his own use the 
product obtained from the cultivation of the protected 
variety does not infringe the plant breeder's right. 
 
Source: WTO Secretariat, based on legislation an d data provided by the Dominican authorities.   
  WT/TPR/S/319/Rev.1 • Dominican Republic  
- 150 - Table A4. 1 Legislation relating to plant and animal heal th and food safety, enacted during the review period 
ANIMAL HEALTH 
Legislation Date Subject  
Decree No. 51-2008 4 February 2008 Establishes the National Livestock Committee 
Resolution No. 29-2013 25 March 2013 Establishes the Executive Commission for the Surveillance of Avian Influenza and Control of Newcastle Disease 
Resolution No. 82-2013 29 November 2013 Establishes the National Livestock Traceability System of the Dominican Republic (SINAT -DO)  
Decree No. 174-08 24 March 2008 Strengthening of prevention, control and eradicat ion of exotic diseases in domestic animals  
Resolution No. 4-2008 
Resolution No. 6-2012 30 May 2008 
20 March 2012 Cancel registrations for the ma rketing and use in animals of certain chemical substances 
Decree No. 354-10 28 June 2010 Maximum residue limits for veterinary drugs in food of animal origin 
 
PLANT HEALTH 
Legislation Date Subject 
Resolution No. 06-2008  17 June 2008 Establishes a close season for the cultivation of au bergines (eggplants), melons, watermelons, cucumbers, okra, al l 
types of chilli peppers , winter squash, cotton and other plants 
Resolution No. 39-2008 29 September 2008 Prohibits the movement of planti ng materials for yautia plants 
Resolution No. 47-2008 2 December 2008 Establishes a Technical Committee for the management of citrus greening disease (Huanglo ngbing) 
Resolution No. 50-2009  21 February 2009 Prohibits the marketing and use of certain pesticides 
Resolution No. 26-2009 8 July 2009 Adopts the Manual of Quarantine  Procedures for Plants and Plant Products and By-products  
Regulation No. 244-10 27 April 2010 Maximum residue limits for pesticides in fruit, vegetables and related products 
Resolution No. 5-2011 18 January 2011 Eliminates the restricted use of the agrochemical paraquat  
Resolution No. 38-2011 7 June 2011 Establishes a close season for the cultivation of aubergines (eggplants), melons, watermelons, cucumbers and other 
plants proven to host whitefly and/or viruses 
Resolution No. 41-2011 26 July 2011 Establishes the Pest Risk Analysis Committee of the Department of Plant Health 
Resolution No. 61-2011 8 December 2011 Prohibits the marketing of certain pesticides 
Resolution No. 8-2012 25 May 2012 Removes paraquat from the list of products that cannot be imported, manufactured, marketed or  used in the 
Dominican Republic 
Resolution No. 31-2013 25 March 2013 Establishes a Phytosanitary Emergency Plan to help cont rol the increased population of Caribbean fruit fly  
Resolution No. 45-2013  17 June 2013 Establishes the Phytosanitary Diagnostic Unit for National Samples  
Decree No. 238-2013 15 August 2013 Regulations for the  phytosanitary certification of citrus propagation material 
Resolution No. 83-2013 9 December 2013 Prohibits the importation of cocoa plants, fruit, seeds etc. 
 
FOOD SAFETY  
Legislation Date Subject 
Decree No. 52-2008  4 February 2008 Establishes the regulations for the general application of ba sic rules of good agricultural  practices and good animal 
husbandry practices 
Resolution No. 10-2008  3 July 2008 Adopts the Regulatory Technical Guide for the Applic ation of Good Agricultural Pr actices and Good Manufacturing 
Practices in Production 
Decree No. 329-11  17 May 2011 Regulates the sanitary inspection of meat and meat products  
Source: WTO Secretariat.   
  WT/TPR/S/319/Rev.1 • Dominican Republic  
- 151 - Table A4. 2 Air service agreement modalities: plurilateral agreements  
Member  Year 
signed Freedoma 
Cooper-
ationb Clause: 
Statisticsc Fifth 
Seventh 
Eighth 
(cabotage) 
Ninth Designation Withholding Tariffs Capacity 
Air Transport Agreement among the Member States and Associate Members of the Association of Caribbean States  
Antigua and Barbuda; Bahamas; Barbados; 
Belize; Colombia; Costa Rica; Cuba; 
Dominican Republic; El Salvador; Grenada; 
Guatemala; Guyana; Haiti; Honduras; Jamaica; 
Mexico; Nicaragua; Panama; Saint Kitts and 
Nevis; Saint Vincent and the Grenadines; 
Santa Lucia; Suriname; Trinidad and Tobago; 
Venezuela, Bolivari an Republic of  2004 Yes No No No Yes Multiple Community of 
interest Country of 
origin Free 
determination No 
Multilateral Open Skies Agreement for the Members States of the Latin American Civil Aviation Commission  
Argentina; Aruba; Belize; Bolivia, Plurinational 
State of; Brazil; Chile; Colombia; Costa Rica; 
Cuba; Ecuador; El Salvador; Guatemala; 
Honduras; Jamaica; Mexico; Nicaragua; 
Panama; Paraguay; Peru; Uruguay; Venezuela, 
Bolivarian Republic of 2011 Yes Cargo No No Yes Multiple Principal place 
of business Free pricing Free 
determination Yes 
a Yes = Rights are granted,  but they are limited. 
b Yes = There are clauses permitting cooperation between airlines, such as code-sharing. c Yes = The agreement provides for an exchange of statistics. 
Source: WTO Secretariat, based on online data from the JAC, "Tables of agreements, version 7 of 23 June 2014". Viewed at: http://www.jac.gob.do /index.php?lang=en ; 
and data provided by  the authorities. WT/TPR/S/319/Rev.1 • Dominican Republic 
- 152 - 
  
  Table A4. 3 Air service agreement mo dalities: bilateral agreements  
Member Year 
signed Freedoma Clause  
Fifth Seventh  Eighth 
(cabotage) Tariffsb Capacityc 
Antigua and Barbuda  2014 .. Cargo No FP FD  
Argentina 2006 Yes No No .. PD 
Aruba  2014 Yes No No FP FD 
Austria  2007 Yes No No FP FD 
Belgium 1998 Yes No No DA PD 
Brazil  2009 Yes No No FP FD 
Canada 2008 Yes Cargo No FP FD  
Chile 2009 Yes Cargo No FP FD  
Colombia  2011 Yes No No CO .. 
Costa Rica  1998 Yes No No FP FD  
Cuba  2005 .. No No CO PD 
Ecuador  2014 .. No No .. .. 
El Salvador  1998 Yes No No FP FD  
France 1969 Yes No No FP FD 
Germany  1992 Yes No No FP FD 
Guatemala 1998 Yes No No .. .. 
Hungary 2003 .. No No FP FD 
Iceland 2009 Yes Cargo No FP FD 
India  2011 Yes No No FP  FD  
Israel  1999 .. No No FP FD 
Italy 1971 Yes No No FP FD 
Jamaica  2013 No No No .. PD 
Jordan 2009 .. No No FP FD 
Kuwait, the State of  2010 Yes No No FP FD 
Mexico  1994 Yes No No FP FD  
Netherlands 
Saint Martin  2010 
2013 Yes 
.. No 
Cargo No 
No FP 
FP FD 
FD 
Panama 2008 Yes Cargo No FP FD 
Paraguay 2010 Yes Cargo No FP FD 
Peru 2009 Yes No No FP FD 
Portugal  2012 .. No No .. .. 
Qatar  2012 Yes No No FP FD 
Russian Federation  2009 Yes No No FP FD 
Spain 2012 Yes No No FP ..  
Switzerland  2000 Yes No No FP FD 
Trinidad and Tobago  1992 Yes No No DA .. 
Turkey 2014 .. No No FP FD 
United Arab Emirates 
Dubai  2009 
2007 Yes 
Yes No 
No No 
No FP 
FP FD 
FD  
United Kingdom 2006 Yes No No FP FD 
United States  1949 Yes No No FP FD 
Uruguay  2009 Yes Cargo No FP FD 
Venezuela, Bolivarian Republic of  1970 .. No No .. .. 
.. Not available. 
a Yes = Rights, and even li mited rights, are granted. 
b DA = Double approval; FP = Free pricing; CO = Country of origin. c FD = Free determination;  PD = Predetermination. 
Source: WTO Secretariat, based on online data fro m the JAC, "Tables of agreements, version 7 of 
23 June 2014". Accessed at: http://www.jac.gob.do/index.php?lang=en ; and data provided by the 
authorities. 
 
__________