The Dominican Republic WT/TPR/S/207 
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III. TRADE POLICIES BY MEASURE 
(1) OVERVIEW  
1. Since the previous Review in 2002, the Dominican Republic has adopted a number of 
measures to streamline customs procedures.  The si mple average MFN tariff applied is 7.5 per cent 
(14.2 per cent for agricultural products and 6.3 per cen t for other products).  The average bound rate is 
34.9 per cent.  During the period under review, the Dominican Republic maintained, and then 
abolished, an import fee and a transitional import su rcharge.  It applies tariff preferences under the 
DR-CAFTA, the Central American Common Market, and other preferential agreements. 
2. The Dominican Republic did not adopt any anti-dumping, countervailing or safeguard 
measures during the period under review.  Its lega l framework for the drafting and application of 
sanitary and phytosanitary measures is under review a nd it is making efforts to build up its capacity to 
notify these measures and technical regulations to the WTO. 
3. The Dominican Republic has notified the WTO of the export subsidies given under the Free 
Zones Law, which should be abolished by 2015 at th e latest.  In 2007, companies in free zones were 
allowed to export products of the textile, clothing  and footwear industries to national territory and 
some of the tax incentives given in the free zones were extended to companies in these industries in 
the territory of the Dominican Republic.  In the same year, new tax incentives were introduced in 
order to promote the competitiveness of domestic  industry and match the incentives given under the 
export promotion regimes.  There are also pr ogrammes in support of small and medium-sized 
enterprises, technological innovatio n and regional development. 
4. The Dominican Republic has not signed the WTO' s Agreement on Government Procurement.  
In 2006, new government procurement legisla tion was adopted.  In 2008 the General Law on 
Competition was enacted and will enter into force af ter the implementing authority has been set up.  
The Dominican Republic has adopted new laws to  improve the protection and enforcement of 
intellectual property rights, and in some instan ces these go beyond the commitments under the TRIPS 
Agreement. 
(2) MEASURES DIRECTLY AFFECTING IMPORTS  
(i) Procedures, documentation and registration 
5. Since the previous Review in 2002, the Domi nican Republic has adopted several measures to 
streamline customs procedures, facilitate trade and make it more predictable.  These include the 
elimination of consular invoices, introduction of the Declaración Única Aduanera  – DUA (Single 
Customs Declaration), electronic transmission of the declaration and other documents to the customs 
services, electronic payment of taxes, reduction of the time required for clearance and certification of ports.  Nevertheless, the authorities acknowledge the need to pursue the efforts to combat smuggling 
and other forms of illegal trade. 
6. In the Dominican Republic, customs pr ocedures are based on the Customs Law 
(Law No. 3489) of 12 February of 1953
1, Laws Nos. 226-06 and 227-06 of 21 June 2006, which give 
autonomy to the Dirección General de Aduanas  – DGA (Directorate-General of Customs) and the 
Dirección General de Impuestos Internos  – DGII (Directorate-General of Taxes), respectively, and 
                                                      
1 There have been 13 amendments to Law No. 3489 since it entered into force in 1953, the latest 
stemming from Law No. 226-06, which granted autonomy to the DGA and modified the time taken for customs clearance in order to bring it into line with the DR-CAFTA provisions. WT/TPR/S/207 Trade Policy Review 
Page 28 
 
 
the Free Zones Law No. 8-90 of 15 January 1990 and its implementing regulations (Decree 
No. 366-97) of 29 August 1997.  The customs legal framework also includes other legal instruments 
such as the Tariff Reform Law (No. 146-00), the Monetary and Financial Law (No. 183-02), Tax 
Reform Law No. 557-05, the Law on Industrial Competitiveness and Innovation (No. 392-07), 
together with several decrees and resolutions govern ing specific aspects of customs procedures and/or 
implementing the customs provisions in the trade agreements signed by the Dominican Republic. 
7. The DGA is the government body responsible  for facilitating and supervising the 
Dominican Republic's international trade.  Its task s include collecting foreign trade-related taxes, 
controlling tax evasion and illegal tr ade, and helping to build up  national security, health and 
environmental protection mechanisms.  Until 2006, the DGA came under the Ministry of Finance, but 
Law No. 226-06 gave it operational, budgetary, ad ministrative and technical autonomy and its own 
assets. 
8. Importers are not subject to any special com pulsory registration in the Dominican Republic.2  
Nevertheless, all companies and na tural persons, including importers, must be registered with the 
Registro Nacional de Contribuyentes – RNC (National Taxpayers Register), kept by the DGII. 
9. A declaration must be submitted to customs in order to import goods.  In September 2007, the 
DUA was introduced and will definitively replace the former import declaration and single export 
declaration forms once the process is complete.  The DUA allows taxpayers to determine their 
customs tax obligations themselves, to send this in formation to customs electronically and also to 
make the corresponding payments electronically.  The new form is also intended to facilitate 
statistical control of foreign trade operations a nd the exchange of information with other customs 
offices. 
10. The DUA must be accompanied by the commercial invoice, the transport documents (bill of 
lading if the goods are transported by sea or air waybill if they arrive by air), together with a certificate of origin for preferential imports.  In  addition, depending on the product in question, an 
import licence or authorization has to be submitted to gether with the relevant phytosanitary or animal 
health certificates. 
11. One important change since the previous Revi ew of the Dominican Republic is the abolition 
of consular invoices previously re quired for approval of all import tr ansactions.  This requirement was 
abolished by Law No. 226-06 of 21 June 2006. 
12. In the Dominican Republic it is not compulsory to  use the services of a customs agent in order 
to carry out foreign trade transactions is not com pulsory;  nevertheless, some 80 per cent of customs 
declarations are submitted through customs agen ts.  Law No. 84-05 of May 2005 lays down new 
requirements to make the agents' services more efficient. 
13. Imports are subject to inspection of document ation or physical inspection depending on the 
importer's risk profile.  Late in 2007, the Dominican  Republic introduced a risk analysis system that 
came into effect as a pilot programme in two ports  (Boca Chica and Caucedo) and will subsequently 
be extended to all primary customs zones, ports, airports and border posts.  The authorities have 
indicated that determining fiscal risk involves the following criteria:  the taxes applicable, the value 
and origin of the goods, the application of special  customs regimes, and the past history of the 
importer, including the level of compliance with its fiscal obligations.  As to the security risk, the 
parameters include the level of hazard presented by  the goods, the police record of the importer and 
                                                     
 
2 Registration of importers was annulled by Law No. 14-93 of 26 August 1993. The Dominican Republic WT/TPR/S/207 
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other operators, the origin of the goods and their po rt of shipment, financial and credit information, 
and security of the transport chain. 
14. According to data reported by the DGA's Pl anning Department, under the pilot programme 
operating in Boca Chica, 2.4 per cent of imports were subject to inspection of documents and 
82.8 per cent to physical inspection, while 15 per cen t went through express clearance, in other words, 
there was no inspection.3 
15. Prior to introducing the risk analysis system , an express clearance mechanism was introduced 
in customs offices for operators moving large volum es of imports and exports, based on pre-selection 
of some 120 companies.  These companies are subject to random verification at destination, clearance 
on credit and subsequent taxation.  The express clearance system comprises groups of businesses, 
commercial chains, multinationals and companies th at hold special concessions for mining works and 
operations, as well as enterprises operating under the free zone regime.  This procedure still applies in 
the port where there is the largest volume of operatio ns (Haina Oriental) and in other customs offices 
where the risk analysis system is not yet in operation. 
16. Once the corresponding import taxes and duties ha ve been paid, the goods are cleared.  Law 
No. 226-06 lays down a maximum period of one day for clearance.  If the goods are not cleared 
within one day for reasons attributable to the cust oms office, the importer does not have to pay the fee 
for customs services (see Section (2)(v) below).4  According to the authorities, under normal 
circumstances, goods are cleared within around six hours.5  Under normal circumstances means:  that 
all the logistical requirements for moving and clearing the goods have been met;  that the goods are 
not dangerous and do not require special laboratory t ests, fumigation or any other procedure prior to 
clearance;  and that the importer meets the clearance requirements. 
17. In addition to abolishing consular invoices, introducing the DUA and streamlining clearance, 
the Dominican Republic has taken a number of steps since 2002 to modernize customs in order to facilitate trade, while at the same time making customs operations more secure.  These include 
electronic transmission of declarations and comme rcial documents, including air cargo and maritime 
manifests;  electronic payment of taxes;  on-line certification of origin
6;  regulations on clearance of 
express dispatches7;  introduction of post-clearance contro l;  use of non-intrusive verification 
equipment (X-rays);  certification of ports under the Container Security Initiative (CSI) and under the 
International Maritime Safety Ma nagement Code;  and linking cust oms offices up with other public 
sector institutions.  According to the authorities, th ese measures have led to savings in time and costs 
for importers, more efficient tax coll ection and increasingly secure operations. 
18. Despite the above measures, the customs aut horities acknowledge that efforts to combat 
illegal trade must continue, particularly various ty pes of smuggling (the illega l introduction of goods, 
under-valuation, triangulation, incorrect tariff classi fication, piracy, are some of the unlawful acts).8  
For this purpose, Law No. 226-06 specifies th at tax evasion through smuggling is a crime and 
provides for imprisonment and fina ncial and administrative penalties for offenders.  The Law also 
gives the lower courts competence to hear case s of smuggling and impose the appropriate penalties.9  
                                                      
3 Results of application of the Express Clearan ce System, Boca Chica Authorities, for the period 
20 August 2007 to 21 January 2008. 
4 Law No. 226-06, Article 14, paragraph II. 
5 La Plana Digital (2007a). 
6 Law No. 126-02 on Electronic Trade and Digital Signatures of 14 August 2002. 
7 Decree No. 402-05 of  26 July 2005. 
8 Sánchez, Díaz, L. M. (2006). 
9 Law No. 226-06, Article 19. WT/TPR/S/207 Trade Policy Review 
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According to information provided by the authorities, from mid-2004 to January 2008, efforts to 
combat smuggling and other customs offences led to reassessments and fines amounting to 
RD$5.4 billion (some US$159.3 million), in addition to  the recovery of goods and in several cases 
terms of imprisonment for those responsible. 
19. Articles 178 to 189 of Law No. 3489, amended by  Law No. 226-06, lay down the procedures 
for complaints and appeals against decisions by th e customs authorities.  Importers, exporters or any 
other interested party may submit a written complain t to the Director-General of Customs within 
10 days, and the latter takes a first instance decision.  Appeals may be made to the Ministry of Finance against decisions by the Director-General of  Customs.  If the interested party does not agree 
with the decision taken by the Ministry of Finance, it may appeal to the Tax Administration Tribunal.  
In the final instance, the interested  party may appeal to the Supreme Court of Justice.  The authorities 
have indicated that, by the end of 2007, 22 appeals against decisions by the customs had been registered and submitted at the administrative level, ve ry few at the judicial level.  The appeals related 
mainly to tariff classification;  few of them concerned the origin or valuation of the goods. 
20. In October 2005, the Dominican Republic a nd the United States signed a Customs Mutual 
Assistance Agreement that allows customs official s in both countries to exchange information and 
documents with a view to preventing illegal cust oms acts.  The Agreement lays down the bases for 
cooperation and investigation in areas such as smugg ling and other types of commercial fraud, money 
laundering and security. 
21. The use of preshipment inspection services in fore ign trade transactions is not compulsory in 
the Dominican Republic. 
(ii) Customs valuation 
22. In July 2003, the Dominican Republic ceased to apply minimum values for various products 
for which it had been given a waiver from applyi ng the WTO Customs Valuation Agreement;  the 
authorities have indicated that, since then, the Do minican Republic has applied the procedures laid 
down in the Agreement.  At the same time, it has a system of "test values" for assessing the value of 
used goods.  It issues advance rulings on applicatio n of customs valuation criteria for imports under 
the DR-CAFTA and plans to extend these to all its imports. 
23. The Dominican Republic was given a transition pe riod in which to apply the provisions of the 
WTO Customs Valuation Agreement before 1 July 2001.
10  As of that date, with the entry into force 
of the Customs Valuation Regulations (Decree No . 667-01), the Dominican Republic has applied a 
valuation system based on the WTO Agreement.  Under these Regulations, the value of imported 
goods is the transaction value, meaning the price paid  or payable for the goods.  The transaction value 
is applied on a c.i.f. basis both for imports under th e MFN regime and preferential imports and is used 
for over 90 per cent of imports.  The remainder are s ubject to review and adjustment of the declared 
value by the customs authority for a number of different reasons. 
24. Tax Reform Law No. 147-00 provides that th e WTO Customs Valuation Agreement should 
apply to the valuation of goods that are the subject of foreign trade.11  The instruments composing 
Dominican legislation on customs valuation have been notified to the WTO.12 
                                                      
10 WTO document G/VAL/22 of 10 March 2000. 
11 Law No. 147-00 of 27 December 2000, Article 6. 
12 WTO document G/VAL/N/1/DOM/1 of 10 July 2001. The Dominican Republic WT/TPR/S/207 
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25. In July 2001, the Dominican Republic requested the WTO for a waiver to continue applying 
minimum import prices to a limited number of products for a period of two years.13  The request was 
approved in respect of 24 tariff subheadings, which in cluded:  milk and cream, semi-milled or wholly 
milled rice, cement clinkers, lubri cating oils, articles of plastic, used pneumatic tyres, diapers and 
sanitary towels, ceramic products, various househol d appliances, sound reproduction appliances and 
used vehicles, motor vehicles and tractors and parts thereof.14  The Dominican authorities have 
confirmed that minimum prices for these pr oducts were abolishe d on 1 July 2003. 
26. The Dominican Republic has a system of "refer ence values" whose objective is to draw the 
customs authorities' attention to any possible fiscal  risk caused by under valuation.  These values are 
based on studies on the trend in imported goods, inform ation derived from a posteriori controls and 
statistical monitoring of imports, and are regul arly updated by the DGA.  Pursuant to Decree 
No. 667-01, when it becomes necessary to delay th e definitive determination of the value, the 
importer may take delivery of the goods by paying tax on the declared value and depositing security for the difference between the declared valu e and the value estimated by the customs.
15  In 2001, rules 
were adopted to determine the range of tolerance and the guidelines for dealing with the guarantees 
according to the reference values.16  In May 2005, so as to streamline import transactions security was 
replaced by a legalized promissory note, which involves no direct costs for users. 
27. In July 2006, the DGA announced that adjustments would be ma de to the reference values 
because of the high levels of undervaluation encountered in import transactions. 
28. The Dominican Republic has a system of "test values" for assessing the value of used goods, 
based on estimates made by the customs authorities taking into account various sources of 
information and pursuant to Decree No. 667-01.  In th e case of used motor vehicles, there is a "special 
value" mechanism based on an interpretation of the World Customs Organization's Technical 
Committee on Customs Valuation, which leaves it up to each country to determine when a vehicle should be considered used. 
29. The customs authorities have the power to carry out post-entry inspections in order to verify 
the information contained in the cu stoms declaration.  A posteriori control of the value applies to 
selected imports on the basis of a risk profile and acco rding to estimates by the authorities it is carried 
out for 35 to 40 per cent of total customs operations. 
30. Pursuant to its DR-CAFTA co mmitments, the Dominican Republ ic issues advance rulings in 
writing on customs valuation criteria applicable to specific operations.
17  It is planned to extend the 
binding nature of advance rulings to a ll imports irrespective of their origin. 
(iii) Rules of origin 
31. The Dominican Republic does not apply any non-preferential rules of origin.18  The only rules 
of origin applied are those provided in its trad e agreements (with CARI COM, Central America, 
Panama and the DR-CAFTA (see Chapter II(4)(2)).  Since the previous Review, the 
                                                      
13 WTO document G/C/W/286 of 31 July 2001. 
14 WTO document WT/L/442 of 10 January 2002. 
15 Article 9 of Decree No. 667-01. 
16 Rule 02/2001 of 29 June 2001. 
17 DR-CAFTA, Articles 5.10 and 5.11. 
18 WTO document G/RO/N/9 of 19 April 1996. WT/TPR/S/207 Trade Policy Review 
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Dominican Republic has notified the WTO's Committee on Rules of Origin of the preferential rules of 
origin in its free trade agreements w ith CARICOM and with Central America.19 
32. The agreement with CARICOM defines the rules of origin for categories of products at the 
four-digit tariff level.  The majority of the products  and, where applicable, the inputs used must be 
wholly obtained within the territory of the Parties.  In general, non-origina ting materials used in the 
production process have to be specified.  Under this agreement, certificates of origin have to be 
authorized by government bodies, namely th e DGA in the case of the Dominican Republic. 
33. In the Free Trade Agreement with Central Ameri ca, as a general rule, the rules of origin are 
based on a change in tariff classification accordi ng to the Harmonized Commodity Description and 
Coding System (HS).  Rules on regional content and mixed rules also apply.  Certification by the 
importer, producer or exporter is re quired for issuing documents of origin. 
34. In the agreement with Panama, articles and pr oducts grown, produced or manufactured using 
domestic materials and raw materials and/or those imported from one of the Parties are considered to be products originating in the Parties.  Manuf actures with imported inputs that have undergone 
substantial transformation are also deemed to be originating if there is a change in the tariff 
classification, or regional content value or other re quirements laid down in the Regulations are met.  
The certificate of origin has to be authorized by the DGA. 
35. There is a general regime of origin appli cable to trade among all the Parties under the 
DR-CAFTA.  In addition, the Agreement prov ides for the alternative application of the 
Central American origin regime among Parties be longing to the CACM, special rules of origin 
between the Dominican Republic and a Central Ameri can country, and the provisional application of 
special rules for some products traded between  the Dominican Republic and the United States. 
36. Under this general regime, goods are deemed to  be originating if they meet any of the 
following criteria:  (i) the goods have been wholly obt ained or produced entirely in the territory of one 
or more of the Parties;  (ii) they have been produ ced entirely in the territory of one or more of the 
Parties exclusively from originating materials;  or (iii) they have been produ ced using non-originating 
materials that have undergone a change in tariff classifi cation in the territory of the parties or satisfy a 
regional content requirement.  The value of the re gional content is calculated using as a basis the 
value of originating materials (build-up method) or  the value of the non-originating materials (build-
down method).  For some products of the automoti ve industry, regional value is calculated on the 
basis of a costs method.  De minimis  criteria are also applied so that goods can be considered as 
originating if the value of the non-originating imports  does not exceed 10 per cent of the total value.  
The de minimis  provisions for agricultural products and textiles are different. 
37. The DR-CAFTA contains provisions on accumulation, which allow producers to accumulate 
their production with that of their suppliers in countries belonging to the Agreement, with the 
exception of sensitive products or those subject to tariff quotas, in which case accumulation only 
applies on a bilateral basis.  One innovative aspect  of the DR-CAFTA is that the possibility of 
accumulation is extended to Mexico and Canada in respect of certain textile products coming under 
Chapter 62 of the HS.  The rules of origin for tex tile and clothing products are set out in a separate 
chapter of the Agreement. 
38. Pursuant to the DR-CAFTA, im porters, exporters and producers alike may issue certificates 
of origin.  The Agreement also establishes procedures  for verifying origin (questionnaires, visits and 
inspections) which an importing party may apply.  In the Dominican Republic, the procedures for 
                                                     
 
19 WTO documents G/RO/N/39 of 22 April 2003 and G/RO/N/40 of 29 April 2003. The Dominican Republic WT/TPR/S/207 
 Page 33 
 
 
requesting preferential treatment from the DGA pursuant to the DR-CAFTA, as well as procedures for 
certification and verification of origin, are set out in Ministry of Finance Resolution No. 70-06 of 
October 2006. 
(iv) Tariffs 
39. Since the previous Review, the Dominican Re public has lowered its MFN tariffs, with the 
simple average falling from 8.6 per cent in 2002 to 7.5 per cent in 2008.  There has been a marked 
increase in the number of tariff lines that receive  duty-free treatment, from 13.4 per cent to 55 per cent 
over the same period.  This reflects the lifting of th e tariffs applied on a large number of inputs and 
capital goods not produced in the Dominican Republic .  Nevertheless, tariff dispersion has increased 
and probably also the effective protection given to certain products.  The Dominican Republic has 
bound all its tariffs, mostly at a rate  of 40 per cent.  The predictability given by this measure could be 
enhanced by closing the 28 percentage point gap be tween the average applied rate and the bound rate.  
The Dominican Republic has also liberalized its  trade regime selectively through preferential 
agreements with the United States, members of the Central American Common Market and 
CARICOM, and Panama. 
40. The Dominican Republic's tariff is containe d in Law No. 146-00 and amendments thereto.20  
Congress alone is empowered to modify tariffs.  Th e Tariff Analysis Commission is in charge of 
making recommendations on changes to tariffs app lied "in accordance with trends in the national 
economy and implementation of the free tr ade agreements signed by the country".21  The Commission 
is composed of the Ministries of Finance;  th e Economy, Planning and De velopment;  Industry and 
Trade;  and Agriculture;  as well as the Director-General of Customs. 
41. The Dominican Republic considers that lowering tariffs leads to "greater efficiency and 
competitiveness on the part of domestic producers a nd facilitates a higher rate of economic growth".22  
It also points out that lower tariffs "lead to an increase in purchasing power and in the general 
well-being of the Dominican population". 
42. The Dominican Republic applies MFN tariff tr eatment as a minimum to both WTO Members 
and non-Members. 
(a) Structure and levels 
43. This analysis refers to the tariff applied in ear ly 2008.  It is based on the HS and reflects the 
changes resulting from the Fourth Recommendation on the Amendment of the HS approved in 
June 2004 (HS 2007). 
44. The tariff comprises 6,752 eight-digit tariff lines (Table III.1).  All tariffs on imports are 
ad valorem .  There are no seasonal or variable tariffs.  The Dominican Republic applies tariff quotas 
to imports of poultry meat, maize, dried bean s, garlic, onions, powdere d milk, rice and sugar 
(see Chapter IV(2)(iii)). 
                                                      
20 Law No. 146-00 amends Law No. 14-93 of 1993, which approved the tariff. 
21 Article 5 of Law No. 146-00 of 27 December 2000. 
22 Preamble to Law No. 146-00. WT/TPR/S/207 Trade Policy Review 
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Table III.1 
Structure of MFN tariffs, 2002 and 2008 
(Percentage) 
 2002  2008  
1. Total number of tariff lines 6,726 6,752 
2. Non- ad valorem  tariffs (% of all tariff lines) 0.0 0.0 
3. Non- ad valorem tariffs with no AVEs (% of all tariff lines) 0.0 0.0 
4. Tariff quotas (% of all tariff lines) .. 0.4 
5. Duty-free tariff lines (% of all tariff lines) 13.4 54.5 
6. Average of lines exceeding zero (%) 10.0 16.4 
7. Domestic tariff "peaks" (% of all tariff lines)a 0.3 1.0 
8. International tariff "peaks" (% of all tariff lines)b 27.4 28.0 
9. Bound tariff lines (% of all tariff lines) 100.0 100.0 
.. Not available. 
a Domestic tariff peaks are defined as rates exceeding three times the overall simple average applied rate. 
b International tariff peaks are defi ned as rates exceeding 15 per cent. 
Source : WTO Secretariat estimates based on data provided  by the authorities of the Dominican Republic. 
45. The tariff comprises 12 rates ranging from 0 to 99 per cent.  If tariff quotas are excluded, 
there are seven rates ranging from 0 to 40 per cent.  The most common rate is zero per cent, which applies to 55 per cent of tariff lines, followed by 20 per cent (27 per cent of tariff lines). 
46. The simple average applied MFN tariff fell fro m 8.6 per cent in 2002 to 7.5 per cent in 2008 
(Table AIII.1).
23  The coefficient of variation rose from 0.9 per cent in 2002 to 1.3 per cent over the 
same period.  The simple average MFN tari ff on agricultural products according to the WTO 
definition is 14.2 per cent, while for other products it is 6.3 per cent.  The highest rates, between 
40 and 99 per cent, apply to 53 eight-digit tariff lin es concerning meat and edible offal, as well as 
products subject to tariff quotas. 
47. The decrease in the average MFN tariff a pplied between 2002 and 2008 mainly reflects the 
reduction to zero in March 2007 of the tariff rates a pplicable to some 2,900 eight-digit tariff lines that 
had previously been subject to rates of 3 or 8 per cent.24  The products covered by this measure are in 
the main inputs and capital goods not produced in the Dominican Republic.  Also in May 2007, the 
Dominican Republic reduced the tariffs applicable to around 150 tariff lines that had previously been subject to rates of 3 and 20 per cent and corres ponded to inputs and equi pment for the footwear, 
textiles and clothing sectors (see Chapter IV(4)).
25 
48. Although tariff escalation exists, it is not along th e usual lines:  the average tariff applied to 
finished products is higher than that on semi -processed products, but the average tariff on raw 
materials is higher than that on semi-processed products (Table AIII.1). 
49. The effective average tariff fell sharply be tween 2002 and 2007, from 9.4 per cent to 
5.3 per cent.26  In 2007, the revenue earned from tariffs amounted to RD$19.337 billion.  Although as 
                                                      
23 The Secretariat's estimates for 2002 do not take in to account the rates applied to products subject to 
tariff quotas.  Consequently, the estimates in this report are not strictly comparable to those contained in the 
Secretariat's previous report for the Review of the Dominican Republic's trade policy. 
24 Tax Reform Law No. 557-05 of 8 December 2005. 
25 Law No. 56-07 "which declares the following sectors to be of national priority:  the textile, clothing 
and accessories chain;  hides and skins, manufacture of leather footwear;  and esta blishes a national regulatory 
regime for these industries", of 4 May 2007. 
26 The effective tariff is the ratio between the value of the revenue earned from tariffs and the value of 
goods imports. The Dominican Republic WT/TPR/S/207 
 Page 35 
 
 
a percentage of GDP, revenue from tariffs fell from 2.3 per cent in 2002 to 1.4 per cent in 2007, its 
absolute nominal value increased at an average annual rate of 12 per cent over the same period. 
(b) Bindings 
50. The bindings in the Dominican Republic's concessi ons appear in a list that predates the entry 
into force of the Marrakesh Agreement and in Sc hedule XXIII annexed to th e General Agreement on 
Tariffs and Trade 1994.27  Since the end of the Uruguay Round, the Dominican Republic has 
renegotiated the bindings applicable to a number  of agricultural products in accordance with 
Article XXVIII of the General Agreement on Tariffs  and Trade 1994.  In November 1998, it notified 
that the renegotiation had been co mpleted.  The commitments arising out of the renegotiation came 
into effect in 1999 and were to be applied in final form as of 2004.28 
51. The WTO Secretariat has transposed the Domini can Republic's commitments into the HS 96.  
In mid-2008, the Committee on Market Access was c onsidering how to give legal effect to these 
changes. 
52. The Dominican Republic has bound all its tariffs  at 13 rates ranging from 5 to 99 per cent.  
Around two-thirds of the tariffs ha ve been bound at an average rate of 40 per cent.  The highest bound 
rates apply to rice, chicken meat and garlic ( 99 per cent), onions (97 per cent) and dried beans 
(89 per cent).  The average bound tariff is 34.9 per cent. 
53. The Secretariat was unable to identify any tari ff lines on which the applied rate exceeded the 
relevant bound rate.29 
(c) Preferential tariffs 
54. Pursuant to its trade agreements with CARI COM, Central America, the United States and 
Panama, the Dominican Republic gives preferential tariff treatment to goods that meet the origin 
requirements in those agreements (Table AIII.2). 
55. In 2007, the simple average tariff applied by  the Dominican Republic under the DR-CAFTA 
was 3.1 per cent.  Around 5,150 eight -digit tariff lines (76 per cent of  the total) are given duty-free 
treatment.  For the remainder, tariffs will gradually be phased out over periods of five to 20 years as 
of the entry into force of the Agreement.  The Dominican Republic has not excluded any product from 
the tariff elimination programme. 
56. The simple average tariff app lied under the Free Trade Agreem ent with Central America was 
0.4 per cent in 2007.  Around 98 per cent of tariff lines are given duty-free treatment.  The Dominican Republic has excluded the following fr om the liberalization programme:  alcoholic 
beverages, tobacco, beans, garlic, onions, rice, wheat  flour, coffee, sugar, chicken and powdered milk. 
57. Under the Free Trade Agreement with CARICOM,  the simple average tariff applied was 
1.9 per cent in 2007.  Duty-free treatment is given to 6,155 eight-digit tariff lines (91 per cent of the total).  The products excluded from the liberali zation programme by the Dominican Republic include 
                                                     
 
27 The schedule that predates the entry into force of the Marrakesh Agreement is contained in WTO 
document WT/Let/317 of 4 November 1999. 
28 WTO documents WT/Let/293 of 12 March 1999 and WT/Let/293, part 2, of 3 February 1999. 
29 In undertaking this analysis, th e Secretariat only took into account the tariff lines contained in the 
Consolidated Tariff Schedule of the Dominican Republic that are strictly comparable  to those in the HS 07. WT/TPR/S/207 Trade Policy Review 
Page 36 
 
 
beans, coconuts, sugar, dairy products, oils and fa ts, wheat flour, fish, fruit juices, garlic and onions, 
meat, rice, cement, various steel  products and tobacco products. 
58. In 2007, the simple average tariff applied by  the Dominican Republic under the agreement 
with Panama was 7.2 per cent.  Duty-free treatment is given to 3,777 eight-digit tariff lines, 97 lines 
more than those under the MFN tariff framework. 
(v) Other charges affecting imports 
59. In addition to tariffs, special fees for custom s services must be paid on imports of goods.  
Both domestic and imported goods are subject to the Impuesto sobre la Transferencia de Bienes 
Industrializados y Servicios  – ITBIS (Tax on the Transfer of Industrialized Goods and Services) and 
the Impuesto Selectivo al Consumo  – ISC (Selective Consumption Tax).  The Dominican Republic 
has abolished certain levies on imports since the previous Review, including the banking fee of 13 per cent of the c.i.f. value of imports payable on exchange of foreign currency. 
60. The customs service fee was in troduced by Law No. 226-06, which gave the DGA autonomy, 
in order to support its financing.  Law No. 424-06 (amending Law No. 226-06) provides that the customs service fees applied by the DGA must be specific, non- ad valorem , and must not serve to 
protect domestic goods indirectly or re present a levy on imports for tax purposes.
30  Presidential 
Decree No. 627-06 regulates the fees that can be le vied for customs services;   these depend on the 
units of weight and volume and are pa id in national currency at the official exchange rate in effect at 
the time the customs declaration is submitted (see Table III.2). 
Table III.2 
Customs service fees 
Type of charge Customs service fee (equivalent in RD$ ) 
20-foot containers US$75.00  
40 or 45-foot containers US$100.00 
Consolidated cargo 
(except express dispatch cargo) US$0.25 per kilo or fraction thereof, with a ceiling of US$60.00 for each bill of lading 
issued by the consolidator 
Loose or bulk goods US$0.50 per metric tonne, with a ceil ing of US$500.00 per bill of lading 
Motor vehicles, equipment and machinery US$100.00 per unit 
Express dispatches US$0.25 per kilo or fraction thereof cleared  at the customs with a ceiling of US$10.00 
for each waybill issued by the international express transport company 
Source : Presidential Decree No. 627-06 of 22 December 2006. 
61. In the Dominican Republic, the value added tax called the ITBIS applies to the domestic sale 
and import of goods and services, with some exceptions.  In September 2004, Law No. 288-04 
increased the ITBIS from 12 per cent to 16 per cent.  As regards imports, the taxable base is the 
c.i.f. value of the goods plus the customs duty and other levies payable on imports.  For domestic 
products, the tax is applied on the net selling price, plus auxiliary services provided by the seller such 
as transport, packaging, freight or financing interest, less the rebates and discounts given. 
62. The Tax Code, amended by Law No. 557-05 of  3 December 2005, specifies the goods exempt 
from payment of the ITBIS, which include fisheri es products, live animals, a number of agricultural 
products (for example, coffee, sugar, cereals, fruit,  vegetables and dairy products), agricultural inputs 
and capital goods, fuel, medicines, books a nd reviews, and educational material.31  Other goods 
                                                      
30 Law No. 424-06 of 20 November 2006, Article 72. 
31 Tax Code (Law No. 11-92), Article 343, and Law No. 557-05, Article 9. The Dominican Republic WT/TPR/S/207 
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exempt from the ITBIS are imports covered by th e temporary admission regime and imports of raw 
materials, inputs, machinery and equipment by  companies in the export free zones export. 
63. The tax legislation also provides for the appli cation of the ISC on domestic sales and imports 
of particular goods and services.32  Some of the products on which the ISC is levied are alcohol-based 
products and tobacco products, carpets, caviar, luxury watches, household appliances, electronic 
goods, jewellery and perfumes.  The rate of th e ISC depends on the product and ranges from 15 to 
130 per cent, the highest taxes being on t obacco products and alcoholic beverages. 
64. The taxable base for the ISC on imported products is the c.i.f. value of the goods, plus 
customs duty and any other tax applicable to impor ts, except the ITBIS.  For domestic products, the 
ISC is levied on the net selling price, including services provided by the seller such as packaging, 
freight and financing, less rebates and discounts. 
65. In the case of alcoholic products, alcoholic beve rages and beer, in addition to a 7.5 per cent 
ad valorem  tax on the retail price of the products, there ar e also specific rates of ISC per litre of pure 
alcohol.  Likewise, tobacco products are subject to a 20 per cent ad valorem  tax on the retail price, 
plus a specific amount that depends on the number of cigarettes per packet. 
66. During the period under review, the Dominican Republic maintained and then abolished, 
several levies and charges that substantially incr eased the taxes applied exclusively on imports.  For 
example, the "foreign exchange fee" of 4.75 per cent on transactions in foreign currency was 
introduced in 1991 and then changed into a fee on th e c.i.f. value of imports, increasing to 10 per cent 
in 2003 and 13 per cent at the end of 2004, for the purpose of dealing with the fiscal crisis in the 
country during those years.  Law No. 17-06 of February 2006 changed this fee into a "special 
transitional levy" of 13 per cent on the c.i.f. value of imports and or dered its elimination by 
30 June 2006. 
67. In addition, in 2004 a 2 per cent transiti onal surcharge for economic stabilization was 
collected on the c.i.f. value of imports.  Law No. 2- 04, which introduced this surcharge, provided that 
it should have a limited duration up to 31 December 2004. 
68. The "foreign exchange fee" and the transitiona l surcharge for economic stabilization were the 
subject of a dispute settlement procedure at th e WTO initiated by Honduras against various measures 
applied by the Dominican Republic to the import a nd sale of cigarettes.  The Panel which heard the 
dispute found that the "foreign exch ange fee" and the transitional surc harge were incons istent with the 
Dominican Republic's obligations under the GATT 1994 concerning "other duties or charges" set out 
in its schedule of concessions.  The Appellate Body confirmed these findings.33  The "foreign 
exchange fee" was also the subject of a request for consultations on the part of Costa Rica, although it 
did not lead to the establishment of a Panel.34 
69. Law No. 4-07 of 8 January 2007 put an end to the ISC on vehicles, private automobiles and 
other vehicles for the transport of persons, which a pplied according to the c.i.f. value of the imports 
and ranged from 0 to 80 per cent. 
                                                      
32 Tax Code, (Law No. 11-92), Title IV. 
33 WTO documents WT/DS302/R of 26 November 2004 and WT/DS302/AB/R of 25 April 2005. 
34 WTO document WT/DS333/1 of 19 September 2005. WT/TPR/S/207 Trade Policy Review 
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(vi) Import prohibitions, restrictions and licensing 
(a) Import prohibitions 
70. The Dominican Republic prohibits the import of some products in order to protect human and 
animal health and to preserve plants, as well as for environmental reasons, in accordance with its 
domestic legislation or international commitments.  The import prohibitions apply equally to all its 
trading partners. 
71. Law No. 4-07 of January 2007 (amending Laws No s. 12-01 and 147-00) prohibits the import 
of used motor vehicles more than five years old35 and heavy goods vehicles with a capacity exceeding 
5 tonnes and over 15 years old.  Law No. 4-07 also prohibits the import of used electrical household 
appliances.36  The authorities have indicated that th e purpose of these measures is environmental 
protection and energy efficiency.  The ban on impor ts of motorcycles was lifted by Law No. 12-01 of 
2001. 
72. Law No. 218 of 28 May 1984 prohibits the import of waste of human, animal or industrial 
origin, while Law No. 64-00 of 18 August 2000 on th e Environment and Natural Resources bans that 
of toxic waste.  Law No. 458 of 3 January 1973 prohi bits the import of used clothing for reasons of 
public health.  The import of narcotics is prohibited by Law No. 50-88 of 30 May 1988.  
Law No. 4990 of 26 August 1958 prohibits the import of  conifers for phytosanitary reasons (see also 
Section (2)(ix) below). 
(b) Import restrictions and licensing 
73. The import of some products is regulated by import licences in order to protect public 
security, the environment, flora, fauna and public he alth.  The products subject to import licensing are 
listed in Table III.3. 
74. For products and by-products of  plant or animal origin, import licences or "authorizations" are 
issued by the Secretaría de Estado de Agricultura  – SEA (Ministry of Agriculture) and must be 
accompanied by a phytosanitary or animal hea lth "no-objection permit", as appropriate (see 
Section (2)(ix) below). 
75. Pursuant to Decree No. 1288-04  of October 2004 giving effect to the CITES provisions at the 
domestic level, the import of plants and animals, their products, parts and by-products also requires a 
permit issued by the Secretaría de Estado de Medio Ambiente y Recursos Naturales – SEMARENA 
(Ministry of the Environment and Natural Resources). 
76. The Dominican Republic requires import licences for a number of agricultural products that 
are subject to WTO tariff quotas and tariff quotas ag reed within the DR-CAFTA framework, as well 
as other preferential agreements (see Chapter IV(2 )).  It has notified the WTO Import Licensing 
Committee of the procedures for tariff quotas for agricultural products.37 
                                                      
35 This prohibition concerns used vehicles of headings 8702 and 8703, and subheadings 8704.21 and 
8704.31 of the customs tariff. 
36 This prohibition includes, inter alia , television sets, air conditioners, refrigerators, microwave ovens, 
vacuum cleaners, washing machines and clothes dr yers, and domestic floor polishers and cleaners. 
37 WTO document G/LIC/N/3/DOM/2 of 4 May 2004. The Dominican Republic WT/TPR/S/207 
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Table III.3 
Products subject to import licences 
Product Authority granting the permit Legal instrument Date 
Substances for protecting plants and veterinary 
products SEA  Law. No. 4030-55 
Law No. 311-68 19 January 1955 
24 May 1968 
Bulbs and seeds, fruit, spices, live plants, fertilizers and pesticides, meat products, fish 
and crustaceans, live animals, products and 
by-products of animal origin SEA Law No. 4030-55 
Law No. 4990-58 
Law No. 311-68 
Law No. 8-65 19 January 1955 
27 August 1958 
24 May 1968 
8 September 1965 
Arms and ammunition Ministry of the Armed Forces Law No. 36-65 17 October 1965 
Cattle and fresh meat SEA Law No. 4990-58 
Law No. 278-66 27 August 1958 
29 June 1966 
Seeds SEA Law No. 4990-58 
Law No. 231-71 27 August 1958 
22 November 1971 
Import of telecommunications equipm ent Dominican Telecommunications 
Institute Law No. 153-98 27 May 1998 
Ozone-depleting gases and substances SEMARENA Law No. 64-00 
Law No. 311-68 18 August 2000 
24 May 1968 
Certain medicines for human and animal use 
and chemical products SESPAS/SEA Law No. 42-01 
Law No. 50-88 
Law No. 4030-55 8 March 2001 
30 May 1988 
19 January 1955 
Source : Authorities of the Dominican Republic. 
(vii) Contingency measures 
77. During the period under review, the Dominican  Republic did not adopt any contingency 
measures and this was regularly notified to the relevant WTO Committees.38  In mid-2008, however, 
it was setting up the institutional framework needed  for application of these measures and hoped to 
commence considering requests for protection when  the necessary components and resources were in 
place. 
78. The Law on Unfair Trade Practices and Safeguard Measures was enacted on 18 January 2002 
(Law No. 01-02);  prior to that date, the Dominican  Republic did not have an y domestic legislation on 
contingency measures.  Law No. 01-02 incorporat es the provisions of the WTO Agreements, lays 
down rules for investigations and the application of anti-dumping or countervailing duties on dumped 
imports or subsidies which cause or threaten to cau se serious injury to domestic industry, as well as 
safeguard measures in order to contend with any ma ssive increase in imports which cause or threaten 
to cause serious injury to the domestic industry. 
79. The Law provides that anti-dumping and counter vailing duties must be equivalent to the 
margin of dumping or amount of th e subsidy and may remain in effect for five years unless they are 
reviewed prior to that.39  Safeguard measures may be applied only in the amount and for the period 
necessary to remedy the serious injury or prevent th e threat thereof.  Their initial duration may not 
exceed four years and may be extended for up to eight years.40 
80. Pursuant to Law No. 01-02, the revenue gene rated by anti-dumping or countervailing duties 
may be invested in financing development programm es for the sector affected by the trade practices in 
                                                      
38 WTO documents G/ADP/N/132/Add.1/Rev.4 of 11 October 2007 and G/SCM/N/162/Add.1/Rev.1 
of 15 November 2007. 
39 Law No. 01-02, Article 54, paragraph II. 
40 Ibid., Articles 71 and 78. WT/TPR/S/207 Trade Policy Review 
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question.  Likewise, the sums yielded through the a pplication of a safeguard measure may be used to 
support the adjustment plan for the domestic industry concerned.41 
81. The Dominican legislation has been notif ied to the WTO Committees on Anti-Dumping 
Practices, Subsidies and Counter vailing Measures, and Safeguards42, and led to questions on the part 
of some Members.43  Some of the issues which genera ted interest were those concerning 
determination of normal value;  definition of injury , including the factors to be taken into account in 
the determination;  notification to the public;  provisional measures;  reviews;  defence of the 
interested parties and appeals procedures, as well as the possibility of using the funds generated by 
contingency measures to support th e domestic industry affected.  Th e Dominican Republic has not yet 
given the WTO the details of its investigating authority. 
82. Up to mid-2008, budgetary problems and other issues concerning technical capacity caused 
delays in establishing the Regulatory Commission on Unfair Trade Practices and Safeguard Measures 
and, ultimately, implementation of the relevant legi slation;  the implementing regulations for the Law 
have not been enacted either. 
83. Pursuant to Law No. 01-02, the Regulatory Comm ission is called on to act as the competent 
national authority for carrying out investigations a nd determining the application of anti-dumping or 
countervailing duties and safeguard  measures.  The Law provides that the Commission shall be 
composed of five members appointed by the Executiv e for a four-year term, subject to ratification by 
the National Congress.  In January 2008, the President  of the Republic issued a decree designating the 
five members of the Regulatory Commission, who se appointments were ratified and who took up 
their functions in mid-2008.44  Prior to this, the Secretaría de Estado de Industria y Comercio – SEIC 
(Ministry of Industry and Trade) had been given temporary responsibility for implementing 
Law No. 01-02 and had set up a Transitional Commiss ion composed of the Minister of Industry and 
Trade, as Chair, and the Ministers of Finance, Fo reign Affairs and Agriculture, together with the 
Director-General of Customs. 
(viii) Standards and technical regulations 
84. The Dominican standardization system has a legal framework for drawing up its own 
technical regulations and standards, although to a large extent these are based on the adoption of 
international standards.  Certain institutional, technical and economic shortcomings appear to limit the 
authorities' capacity to ensure compliance with t echnical regulations and to notify them within the 
multilaterally agreed time-frames. 
(a) Legal and institutional framework 
85. The basic legal framework governing the Domini can Republic's standardization system is 
composed of the Law on Standardization and Qualit y Systems (Law No. 602) of 20 May 1977 and the 
Law on Metrology (Law No. 3925) of 17 September 1954 and amendments thereto.  Other relevant 
laws are the Law on the Environment and Natural R esources (No. 64-00);  the General Law on Health 
(No. 42-01);  the General Law on Electricity (No. 125-01), its implementing regulations (No. 555-02) 
and amendments thereto (Decr ee No. 749-02);  the General Law on Telecommunications 
                                                      
41 Ibid., Articles 56 and 70. 
42 WTO documents G/ADP/N/1/DOM/3, G/SCM/N/1/ DOM/2 and G/SG/N/1/DOM/2 of 22 May 2002. 
43 The European Communities and the United States posed questions on Dominican legislation in WTO 
documents G/ADP/Q1/DOM/1 of 13 March 2003 and G/ADP/Q1/DOM/2 of 10 April 2003, respectively.  The 
replies by the Dominican Republic appear in document G/ADP/Q1/DOM/3 of 6 May 2003. 
44 Decree No. 43-08 of 23 January 2008. The Dominican Republic WT/TPR/S/207 
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(No. 153-98);  and the General Law on Consumer s' Rights (No. 358-05).  In addition, 
Decree No. 633-06 of December 2006 established the National Committee for Implementation of the 
WTO Agreement on Technical Barriers to Trade. 
86. The Dirección de Comercio Exterior y Administración de Tratados Comerciales 
Internacionales – DICOEX (Directorate of Foreign Trade and Administration of International Trade 
Agreements) under the SEIC acts as the enquiry poin t for the purposes of paragraphs 1 and 3 of 
Article 10 of the TBT Agreement45, a responsibility previously shared by several government 
bodies.46  In June 2003, the Dominican Republic submitted to the relevant WTO Committee a 
communication on the measures adopted for implementation and administration of the 
TBT Agreement.47 
87. The Comisión Nacional de Normas y Sistemas de Calidad – COMINNOR (National 
Commission for Standards and Quality Systems), est ablished under Law No. 602, is the government 
body responsible for defining standardization policy a nd approving the preparation and revision of the 
Dominican Republic's technical regulations and standards.  The COMINNOR is composed of several ministries and other government bodies
48, as well as private-sector and consumer associations. 
88. The Dirección General de Normas y Sistemas de Calidad  – DIGENOR (Directorate-General 
of Standards and Quality Systems), which is an ad ministrative part of the SEIC, is responsible for 
coordinating the preparation and application of tec hnical regulations and standards together with the 
competent bodies, as well as for implementing various provisions decided upon by the COMINNOR.  Another of its tasks is to draw up the National Standardization Plan.  The DIGENOR has various 
technical committees organized by industrial sector to assist it in its work.  It is responsible for 
notifying technical regulations to the WTO. 
89. The National Committee for Implementation of  the TBT Agreement is responsible for 
following up on the implementation of this instrument.  Its functions include notifying the WTO of the measures adopted by the Dominican Republic in  order to apply the TBT Agreement;  receiving 
notifications from other Members, transmitting these to the Dominican sectors concerned and 
following them up;  disseminating information on TBT Agreement-related matters at the national 
level;  and providing a forum for consultation with other Members on standardization-related issues.  
The Committee is composed of the DIGENOR, as chair, the DICOEX, and representatives of the SESPAS, the SEMARENA, the Ministry of Fore ign Affairs, the SEA, the CEI-RD, and the Instituto 
de Innovación en Biotecnología e Industria  – IIBI (Biotechnological and Industrial Innovation 
Institute). 
90. The Dominican Republic has notified the WTO that the government bodies which adopt 
technical regulations are the DIGENOR at the SEIC, the SEMARENA and the Ministry of Public Works and Communications.
49  Other bodies which may adopt technical regulations are the SEA, the 
SESPAS, the Dominican Telecommunications Institu te and the Superintendency of Electricity. 
                                                      
45 WTO document G/TBT/ENQ/31 of 29 October 2007. 
46 WTO (2002), Chapter III, paragraph 63. 
47 WTO document G/TBT/2/Add.74 of 30 June 2003. 
48 The government bodies belonging to the COMINNOR are:  the Central Bank, the Centro de 
Exportación e Inversión de la República Dominicana  – CEI-RD (Dominican Republic Export and Investment 
Center);  the SEIC, the Ministry of the Economy, Planning and Development, the Ministry of Public Works and 
Communications, the SEA, the Secretaría de Estado de la Salud Pública y Asistencia Social  – SESPAS 
(Ministry of Public Health and Social Welfare, and the Ministri es of Civil Defence and Labour. 
49 WTO document G/TBT/2/Add.74 of 30 June 2003. WT/TPR/S/207 Trade Policy Review 
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91. The Dominican Republic belongs to several inte rnational standardization organizations such 
as the CODEX Alimentarius, the ISO, the Pan- American Standards Commission (COPANT), the 
International Electrotechnical Commission (IEC) , the Inter-American Metrology System, the 
Inter-American Accreditation Cooperation (IAAC), the International Bureau of Weights and 
Measures (BIPM) and the Central American and Caribbean Standardization 
Commission (COMCANDOR). 
92. The authorities have indicated that there is  only one Mutual Recognition Agreement (MRA) 
concerning the registration of medicines with Honduras, and another is being negotiated with 
El Salvador. 
(b) Preparation, adoption and application of  technical regulations and standards 
93. In the Dominican Republic, both mandatory standards (technical regulations) and optional 
standards (standards) are known as Normas Dominicanas – NORDOMs (Dominican Standards) and 
require a single procedure for their preparation, approval and publication.  They must also be 
endorsed by the COMINNOR.  The Dominican Re public has notified that the DIGENOR has 
accepted the WTO's Code of Good Practice for th e Preparation, Adopti on and Application of 
Standards.50 
94. The Regulations governing Procedures for the Preparation, Approval, Publication and 
Dissemination of Dominican Standards (second revi sion of 2005), approved by Resolution No. 2 of 
6 March 1979, specifies the stages to be follo wing in adopting NORDOMs, which can be summarized 
as follows. 
95. The DIGENOR or any member of its techni cal committees draws up a proposal, which is 
submitted to the corresponding technical committee.51  The latter approves the proposal as a 
preliminary draft and makes it the subject of a public enquiry for a period of 60 days.  If no comments are received, the preliminary draft is approved an d becomes a draft;  if comments are received, the 
technical committee considers them and prepares a new preliminary draft that is once again the 
subject of a public enquiry for a period of 30 da ys.  After the committee has approved a preliminary 
draft and it becomes a draft text, this is transmitted to  the DIGENOR, and if the latter finds that it is in 
order it is sent to the COMINNOR for endorsement.  The Commission approves the draft, issues the 
corresponding resolution and formalizes the text eith er as a mandatory or optional standard.  Once the 
technical regulation or the standard has been a pproved, it is forthwith published in a national 
newspaper and comes into effect six months after publication. 
96. The DIGENOR may draw up a draft emergency standard when a particular product 
constitutes a risk for health or the safety of u sers and where there is no corresponding Dominican 
standard.  The draft must be submitted to the COMINNOR for approval as a "Dominican emergency 
standard".  Because of their nature, Dominican emer gency standards do not have to go through all the 
procedures applicable to ordinary standards.  They  are mandatory and remain in effect for one year, 
which may be extended through a decision by the COMINNOR.  Once an emergency standard has 
been approved, the DIGENOR must set up a tec hnical committee to prepare the corresponding draft 
standard following the usual procedure. 
                                                     
 
50 WTO document G/TBT/CS/N/87 of 13 January 1998.  See also WTO document 
G/TBT/CS/2/Rev.13 of 2 March 2007. 
51 Law No. 602 provides that initiatives on the preparation of a government standard or technical 
regulation may be submitted by producers or the consumers' sector. The Dominican Republic WT/TPR/S/207 
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97. Pursuant to the 2005 Regulations, NORDOMs must be reviewed every five years after their 
date of entry into force.  If the DIGENOR cons iders that a NORDOM should be revised before the 
five years have elapsed, it makes a request fo r review to the COMINNOR, together with an 
explanation of the technical problems posed by enfo rcement of the measure.  Interested producers and 
consumers, as well as other public sector bodies, ma y also request a review.  If the Commission so 
decides, it issues a decision approving the requ est for review.  The corresponding technical 
committees conduct the review, following the same stages as those for the normal procedure, 
including publication and a public enquiry.  The authorities have indicated that from 2005 up to 
mid-2008, 23 reviews were approved. 
98. At the request of the DIGENOR, the COMINNOR  may adopt the technical regulations of 
other countries or international organizations provi ded that their application has an impact on the 
protection of health, consumer safety or domestic or  foreign trade.  The adoption procedure consists 
of submitting the Spanish text of the international st andard or the national stan dard to be adopted to 
the COMINNOR, for its consideration and, where a ppropriate, its approval by means of a decision 
followed by publication. 
99. In January 2008, according to the Dominican  authorities, 626 NORDOMs were in effect 
(compared to 496 in December 1999), of whic h 169 (27 per cent) corresponded to technical 
regulations and the remainder to optional standards.  The authoriti es have also indicated that over 
50 per cent of the Dominican technical regulations and standards are based on or are identical to those of international organizations.  The vast majority of technical regulations concern foodstuffs;  other 
products subject to standardization include me dicines, electrical goods, cement and laboratory 
medicine, inter alia .  The DIGENOR keeps a catalogue of the NORDOMs, but there is no electronic 
data bank for public access.  A da tabase containing all Dominican t echnical regulations and standards 
is currently being created. 
100. During the period under review, the Dominican  Republic submitted to the WTO's Committee 
on Technical Barriers to Trade 51 notifications con cerning technical regulations (48) and conformity 
assessment procedures (3).
52  In four instances the notification referred to emergency measures.  In the 
case of 53 per cent of the notifications, particularly those submitted prior to July 2006, the entry into 
force of the NORDOM preceded their notification.  A ll the notifications refer to technical regulations 
already adopted.  For the purposes of this Revi ew, the Dominican authorities stated that the 
DIGENOR does not have enough qualified staff to ma ke the notifications within the time-limit laid 
down in the TBT Agreement. 
101. Over half the notifications concerned food products ( inter alia , dairy products, fish and 
shellfish, and fruit and vegetable products), health  and food safety being the grounds most frequently 
cited for their adoption.  Conformity assessment procedure notifications related to inspection, 
certification and laboratory testing systems for the im port and export of foodstuffs.  The DIGENOR is 
named as the responsible body in all cases. 
102. Pursuant to the General Law on Health (No.  42-01), the import (as well as the production, 
distribution and marketing) of medicines and cosmetics requires sanitary registration, granted by the SESPAS and an analysis of the samples prior to import.
53  Requests for registration of medicines may 
be made to the Department of Drugs and Pharmacies of the SESPAS by Dominican or foreign companies and registration must be granted or rejected within a period of 90 days.  If the SESPAS is 
unable to meet this deadline, it may designate re cognized reference laboratories to carry out the 
                                                     
 
52 WTO documents G/TBT/N/DOM/1 to G/TBT/N/DOM/51 of various dates. 
53 Law No. 42-01, Article 110. WT/TPR/S/207 Trade Policy Review 
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necessary tests and certify the product for which registration is being sought.54  The import of 
medicines not covered by a free sales certificate in the country of origin is not allowed.55 
(c) Conformity assessment 
103. The DIGENOR is the main body responsible for ensuring that Dominican and imported 
products comply with Dominican technical regulati ons.  It is responsible for certifying products 
through its Certification and Quality Department .  Products which comply with the Dominican 
technical regulations are certified with a "DIGENOR quality seal".  At the request of interested parties, the DIGENOR also issues quality certificat es for export products.  Other government bodies 
that certify products are the Directorate-General of Environmental Health of the SESPAS, the SEA 
and the SEMARENA.  There are no private certification bodies, nor are there any national conformity 
assessment regulations. 
104. Any importer seeking to introduce a product subject to a technical regulation into the 
Dominican Republic must make a sample availabl e to a laboratory recognized by the DIGENOR for 
testing.  As there is no metrology laboratory or any laboratory accredited under the ISO/IEC 17025 standards in the Dominican Republic, the vast majority  of testing is done in foreign laboratories.  The 
DIGENOR, therefore, accepts certificates and tests carried out by laboratories accredited by 
international organizations.  The authorities have i ndicated that approval is pending for the Law on 
the National Quality System, which provides fo r the establishment of a National Accreditation 
Authority and the Dominican Me trology Institute, as well as for the accreditation of national 
laboratories.  It was hoped that the preliminary draft of the Law on the National Quality System 
would be put before Congress at the end of 2008. 
105. According to information from the authorities, in mid-2008 there were six reference 
laboratories operating in the Dominican Republic with the capacity to carry out conformity 
assessment tests.  Of these, the following five were government-run:  the Central Veterinary 
Laboratory (LEVECEN), belonging to the SEA, the Do ctor Defilló Public Health Laboratory of the 
SESPAS, the IIBI, the Chemical Institute  of the Autonomous University of 
Santo Domingo (IQUASD) and the Microbiological a nd Parasitological Institute (IMPA).  The only 
private laboratory was that of the Junta Agroempresarial Dominicana – JAD (Association of 
Dominican Agro-Enterprises). 
106. For domestic products, verification of compliance with the NORDOMs takes place at the site 
of manufacture, while for imported pr oducts it is at the border.  The authorities have indicated that 
since the previous Review of the Dominican Re public, the DIGENOR has had a stronger presence in 
ports and airports, but it still needs to be reinforced at border posts. 
107. In the Dominican Republic, conformity assessment is carried out by a third party, in other 
words, through an organization that is independent of the supplier or the buyer.  There is no procedure 
based on a conformity declaration by the supplier. 
108. The limited infrastructure in testing laboratories, as well as institutional, technical and 
economic shortcomings appear to limit the DIGE NOR's ability to implement the standardization 
policy and ensure compliance with the technical regu lations, not only in respect of imported goods but 
also domestic products. 
                                                     
 
54 Ibid., Article 115, paragraphs II and VI. 
55 Ibid., Article 117, paragraph II. The Dominican Republic WT/TPR/S/207 
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(ix) Sanitary and phytosanitary measures 
109. The Dominican Republic's legal framework fo r sanitary and phytosanitary measures is 
currently being updated.  The country does not seem to possess the institu tional capacity to notify 
these measures within the periods laid down at the multilateral level;  since the establishment of the 
WTO it has made only five notifications concerning sanitary and phytosanitary measures. 
(a) Legal and institutional framework 
110. In the Dominican Republic, the SEA is respons ible for preparing, adopting and monitoring 
phytosanitary and animal health measures, togeth er with those on unprocessed foods.  The safety of 
processed foods is the responsibility of the SESPAS,  through its Food and Be verage Risk Control 
Department.  Within the SEA, phytosanitary matters come under the Departamento de Sanidad 
Vegetal  – DSV (Plant Health Department) and animal health controls are the responsibility of the 
Animal Health Department of th e Dirección General de Ganadería  – DIGEGA (Directorate-General 
of Livestock). 
111. In order to establish a comprehensive system for controlling food safety, in 2005, the 
Department of Food Safety was set up within the SE A.  Its functions include serving as a permanent 
link for these matters between the SEA, the SESPAS, the SEMARENA and the SEIC.  Its tasks also 
include directing and coordinating the National Programme for the Monitoring and Control of 
Residues and Food Hygiene.56 
112. Pursuant to the WTO Agreement on the App lication of Sanitary and Phytosanitary 
Measures (SPS Agreement), the Dominican Repub lic has notified that the SEA's Office of 
Agricultural Trade Agreements is the national e nquiry point and also the body responsible for 
notifications.57  The Dominican Republic has replied to the questionnaire (G/SPS/W/103/Rev.2) of the 
SPS Committee on the functioning of such servi ces (its replies may be consulted on the 
WTO Members' Internet site) and has submitted sev eral communications on the application of the 
SPS Agreement and the country's technical assistance needs.58 
113. The responsibilities of the National Committee for the Application of Sanitary and 
Phytosanitary Measures, established by Decr ee No. 515-05 of September 2005, include 
recommending policies and disseminating inform ation on the application of sanitary and 
phytosanitary measures in the Dominican Republic so that interested parties can be aware of them, 
also studying notifications of such measures by ot her countries and transmitting them to the relevant 
sectors, and participating in meetings of the SPS Committee.59 
114. The Dominican Republic is a member of the in ternational organizations referred to in the 
SPS Agreement, namely, the Codex Alimentarius Commission, the World Organisation for Animal 
Health (OIE) and the International Plant Protection C onvention (IPPC).  It also participates in regional 
organizations such as the Organismo Internacional Regi onal de Sanidad Agropecuaria  – OIRSA 
(International Regional Organization for Plant and An imal Health) and the Caribbean Plant Protection 
Commission (CPPC). 
                                                      
56 SEA Resolution No . 22/2006 of 12  December 2006. 
57 WTO documents G/SPS/ENQ/22 and G/SPS/NNA/12, both of 9 October 2007. 
58 WTO documents G/SPS/GEN/295/Add.33 and Corr.1 of 25 March and 1 May 2003, 
G/SPS/GEN/587 of 7 July 2005 and G/ SPS/GEN/691 of 10 April 2006. 
59 The Committee is composed of representatives of the SEA, the SESPAS, the SEIC (including 
DIGENOR and DICOEX), the SEMARENA, the Ministry  of Foreign Affairs, the National Council for 
Agriculture and the JAD.  Observers from international bodies also participate. WT/TPR/S/207 Trade Policy Review 
Page 46 
 
 
115. The Dominican Republic has signed phytosanitary agreements or protocols for the 
import/export of plant products with Canada, Chile, Cuba and Haiti.  It has also signed protocols with 
the United States on the import of various products  and, since November 2006, has recognized as 
equivalent the inspection system of the United States Food Safety and Inspection Service in 
connection with the import of products and by-p roducts of bovine animals, swine and poultry.60  With 
the exception of the latter, these agre ements have not been notified to the WTO.  The authorities have 
indicated that the Dominican Republic recognizes the disease-free zones identified by the OIE in 
countries from which it imports meat products .  In the Dominican Republic, there is no 
regionalization or compartmentalization. 
116. Dominican legislation on animal and plant health comprises a vast number of instruments, 
some of which date back several decades.  Vari ous proposals on updating agricultural legislation are 
currently going through the approval process.  Pl ant health is governed by Law No. 4990 on Plant 
Quarantine of 1958, which provides that a permit issu ed by the SEA must be obtained for the import 
of plants, fruit, seeds and any part of live or dead pl ants.  In practice, this permit provides the importer 
with guidance as to the phytosanitary requirement s with which the product imported must comply.  
Import procedures for products of plant origin are governed by the Manual of Quarantine Procedures 
published by a decision of the SEA in 2001.  Law No. 311 of 1968 makes the import and export of pesticides and insecticides subject to authorizati on, while Decree No. 217-91 of 1991 prohibits the 
import of 12 agricultural chemicals becau se they represent a risk for human health. 
117. The following are some of the major instrume nts governing animal health:  Decree No. 6775 
of 1950, which lays down rules for trade in animals and their by-products, and bans the import of 
livestock from countries where there is foot-and-m outh disease or rinderpest;  Law No. 4030 of 1955 
prohibits the import of animals with contagious  or hereditary diseases;  Law No. 218 of 1984 
prohibits the import of wastes of animal origin;  Decree No. 607 of 1987 prohibits the introduction of 
meat and dairy products without prior authorization in  order to prevent the entry of diseases and pests, 
and the purpose of Decree No. 607-05 is to combat and eradicate classical sw ine fever (CSF) in the 
Dominican Republic.  There is also a Manual of Procedures for the Import of Animals and Products 
of Animal Origin entering the Dominican Republic  (SEA Resolution No. 19/2006 of July 2006). 
118. Food safety is governed by the General Law on Health (No. 42-01) of February 2001, which 
lays down rules for safety in the production, prepara tion, storage, marketing, import and transport of 
foodstuffs.  These aspects are subject to regulati ons laid down by the SESPAS and to the NORDOMs 
drawn up in coordination with the DIGENOR and, in their absence, to the Codex Alimentarius 
standards.  Importers of foodstuffs must obtain a sanitary registration certificate and authorization 
from the SESPAS.  The import of foodstuffs that are prohibited for consumption or sale in the country 
of origin is not allowed.
61 
(b) Preparation and enforcement 
119. The measures taken to prevent the introduction of pests and diseases into the 
Dominican Republic and for the sanitary control of  foodstuffs are in the form of NORDOMs or 
phytosanitary and animal health no-objection permits (see below).  NORDOMs are drafted in 
accordance with the procedures menti oned in Section (2)(viii) above. 
120. In reply to a questionnaire from the SPS Committee in December 200662, the Dominican 
authorities stated that the preparation of sanita ry and phytosanitary regulations involved the 
                                                      
60 SEA Resolution No. 021/2006 ( bis) of 3 November 2006. 
61 Law No. 42-01, Articles 127 and 129. 
62 WTO document G/SPS/W/103/Rev.2. The Dominican Republic WT/TPR/S/207 
 Page 47 
 
 
government sector (the DSV and the Department of Animal Health, the DIGENOR and the National 
Codex Alimentarius Commission, inter alia ), the private sector (producers, processors of food 
products and academic institutions) and observers fro m international organizations.  It was pointed 
out, however, that notification prior to the prepara tion of a sanitary regulation is a new procedure in 
the Dominican Republic and only in recent years did notification begin at the international level. 
121. The phytosanitary measures in the Dominican  Republic are set out in the Manual of 
Quarantine Procedures, which is regularly updated.   The authorities have indicated that all these 
measures are based on the International Standards for Phytosanitary Measures (ISPM) of the IPPC 
and that ISPM-12 for the certification of products has been adopted, together with the IPPC's model 
phytosanitary certificate.  The authorities have lik ewise indicated that the national enquiry Service 
notified to the WTO provides information on specific measures at the request of interested parties 
within a period of three to four weeks. 
122. Up to June 2008, the Dominican Republic had s ubmitted five notifications to the WTO's SPS 
Committee:  one relating to tomato pests;  anothe r to guidelines for wood packaging material used in 
international trade (ISPM No. 15), the third to the model Phytosanitary Export Certificate issued by 
the Dominican Republic since March 2006.63  The fourth notification concerns regulations 
establishing basic rules of good agricultural practic e and good animal husbandry practice and the fifth 
to the recognition of equivalence of the inspection system of the Food Safety and Inspection Service 
of the United States Department of Agriculture for the purposes of importing products and by-products of the bovine animals, swine and poultry.
64 
123. The WTO Secretariat was unable to obtain a ny documentation on various aspects relating to 
transparency in the adoption of sanitary and phytosanitary (SPS) measures, including the following:  the mechanism for informing WTO Members of new draft SPS measures or amendments of measures 
that might affect trade;  the lapse in time be tween notification and entry into force of the 
SPS measures;  and the publications in which draf t SPS measures and the measures adopted appear.  
In this connection, the authorities indicated that SPS measures are drafted in coordination with the 
interested sectors and institutions and, once appr oved, are published both domestically and abroad.  
They acknowledged that notification of new measures occurred mainly at the bilateral level.  They 
also indicated that the mechanism used to in form WTO Members of new draft SPS measures or 
amendments thereto is through the SPS National Enquiry Point of the Office of Agricultural Trade Agreements of the SEA, which also acts as th e secretariat of the National Committee for the 
Application of Sanitary and Phytosanitary Measures.   This Office is working on the creation of an 
Internet site to publish notificati ons and facilitate interaction betw een interested sectors and national 
and international bodies.  In short, efforts ar e being made to reinforce the mechanisms for 
disseminating information and notifying SPS measures within the time-limits laid down in the 
WTO Agreement and in the bilateral and regi onal commitments of the Dominican Republic. 
124. During the period under review, one Dominican ph ytosanitary measure was discussed in the 
SPS Committee.  In June 2006, Canada declared that  its trade had been affected by the levels of 
tolerance laid down in the Dominican Republic for soil content for potato tubers, which were much 
lower than those indicated in the relevant intern ational standard and were not based on a risk 
                                                     
 
63 WTO documents G/SPS/N/DOM/1 of 14 April 1997, G/SPS/N/DOM/2 of 7 July 2006 and 
G/SPS/N/DOM/3 of 7 July 2006, respectively. 
64 WTO documents G/SPS/N/DOM/4 of 12 June 2008  and G/SPS/N/EQV/DOM/1 of 19 June 2008, 
respectively. WT/TPR/S/207 Trade Policy Review 
Page 48 
 
 
assessment.65  Although bilateral consultati ons were held, by mid-2008 the matter had not yet been 
resolved. 
125. Importers of products of plant and/ or animal origin do not have to be registered in any special 
register.  Nevertheless, imports of such products must be authorized by the SEA and accompanied by 
one or more phytosanitary or animal health "no- objection permits", in which the requirements to be 
met in order to import the product in question are set out. 
126. Importers of products or by-products of plant origin must request a phytosanitary 
no-objection permit issued by the Plant Health Department of the SEA.66  In the case of plants and 
flowers, importers must obtain an additional no-ob jection permit from the Biodiversity and Forestry 
Directorate of the SEMARENA, pursuant to the CITES Convention.67  To import seeds, the interested 
party much also request a no-objection permit from the SEA's Seed Department.  In the case of 
fertilizers and the raw materials for making them, importers must obtain the no-objection permit from the Land and Water Department of the SEA.  Pesticides require a no-objection permit from the 
DSV.
68 
127. Once the no-objection permit(s) required has been obtained, it is sent together with the 
commercial invoice to the Departamento de Promoción Agrícola y Ganadera  – DPAG (Department 
of Agricultural and Livestock Promotion), whic h issues an import authorization signed by the 
Minister of Agriculture.  All imports must also be accompanied by a phytosanitary certificate issued by the corresponding authority in the country of orig in showing that the product is free of pests or 
diseases.
69  Fruit may only enter through specified sea ports70 and must be transported in refrigerated 
trucks and kept in quarantine.  Fruit may not be imported from countries where " Ceratitis capitata " is 
present.71 
128. A no-objection permit from the Dirección General de Ganadería  – DIGEGA 
(Directorate-General of Livestock) is required for the import of products or by-products of animal 
origin.72  Once this has been obtained, it is sent t ogether with the commercial invoice to the DPAG, 
which issues an import authorization signed by the Minister of Agriculture.  Imports of products of 
plant origin to be used for animal consumpti on such as lucerne and soya bean flour require 
no-objection permits both from the DIGEGA and from th e DSV, as well as an authorization signed by 
the Minister.  Live animals, fertilized eggs and vaccines need a no-objection permit from the DIGEGA, while fisheries products require a no-obj ection permit from the Department of Fisheries 
Resources.  Products for veterinary use must be re gistered and authorized by the DIGEGA, with a 
certificate showing that they can be freely sold in  the country of origin;  other requirements are 
sanitary registration with the SESPAS and laborator y test results.  The import, sale and use of 
vaccines and anti-genes to prevent or diagnose brucellosis and tuberculosis are prohibited.
73 
129. For the purposes of this Review, the authorities have indicated that both phytosanitary and 
animal health no-objection permits involve a risk analysis. 
                                                      
65 WTO documents G/SPS/R/42 of 25 Septem ber 2006 and G/SPS/R/43 of 3 January 2007. 
66 Law No. 4990-58. 
67 Law No. 64-00. 
68 Law No. 311 and its Implementing Regulations No. 322-88. 
69 Law No. 4990-58. 
70 The ports are:  Santo Domingo, Haina Oriental , Boca Chica, Puerto Caucedo and Puerto Plata. 
71 Resolution No. 84/96 of 17 September 1996 regulating quarantine for the import of fruit into the 
Dominican Republic. 
72 Law No. 4030-55. 
73 Law No. 278 of 29 June 1996. The Dominican Republic WT/TPR/S/207 
 Page 49 
 
 
130. When a person seeks authorization to import a plant or animal product from a particular 
origin for which there are no predetermined phyt osanitary or animal health requirements, the 
Dominican authorities undertake a risk analysis of the product and ask for information from the 
competent authorities in the country of origin of th e product.  For plant health , the risk assessment is 
conducted by the Pest Risk Monitoring and Analysis Unit, set up in 200374 as part of the 
Plant Quarantine Division of the SEA.  The steps to be  followed in the pest risk analysis procedure are 
laid down in the Manual of Quarantine Procedures.  This indicates that when assessing the application 
of phytosanitary measures, the latter's cost-benefit ratio, effect on other existing regulatory measures, 
socio-economic impact and effectiveness in diminishi ng risk must be taken into account.  In the case 
of animal health, this task is the responsibility of  the Risk Analysis Unit of the DIGEGA's Department 
of Animal Health.  The authorities have indicated th at the international standards in the IPPC and the 
OIE guidelines are followed when undertaking risk analysis.  There is no fixed time-limit for 
completing risk analyses.  If an in situ  inspection is required, the costs of the analysis are borne by the 
importer.  According to information from the DSV, from early 2006 to mid-2008, 32 pest risk analyses were carried out. 
131. All imports of plant or animal products and by-products undergo physical inspection when 
entering Dominican territory.  The national quaran tine inspection standards and the international 
standards of the OIE and the IPPC are applied.  Ther e are inspection posts in ports, airports and at the 
border.  The Dominican Republic has 27 phytosan itary inspection centres and an equal number of 
animal health inspection posts, together with 14 internal transit inspection centres.  A commission 
composed of representatives of the SESPAS, the DSV and the Department of Animal Health of the 
SEA, and the customs and narcotics control authorities inspects foodstuffs. 
132. For animal health and food safety, the Dominican testing laboratories infrastructure comprises 
the LAVECEN and its regional laboratories, the public  health laboratory of the SESPAS and the IIBI.  
In the case of plant health, there are the post-entr y quarantine station of the SEA and the phytosanitary 
diagnostic pilot laboratory in Haina Oriental.  There are also laboratories such as those of the JAD and 
the Instituto Dominicano de Investi gaciones Agropecuarias y Forestales  – IDIAF (Dominican 
Agricultural and Forestry Research Institute) and some academic institutions (see Section (2)(viii) 
above). 
133. In 2006, the Dominican Republic became a signatory to the Cartegena Biosafety Protocol.  
The SEMARENA through the Bi osafety and Forestry Directorate, is responsible for coordinating the 
relevant national policy and for dr afting legislation and technical regulations concerning genetic 
resources and biosafety.  The Dominican Republic does not yet have any biosafety legislation, although a preliminary draft law is going through th e adoption process.  Current legislation does not 
allow the production, marketing or import of  genetically modified organisms (GMO). 
(3) M
EASURES DIRECTLY AFFECTING EXPORTS  
(i) Procedures, documentation and registration 
134. All export transactions, including those from free zones, require the submission of a single 
export form75 for which the CEI-RD is responsible in co llaboration with the DGA.  The information 
to be entered on the form includes the identity of th e exporter, the consignee, the carriers and, where 
applicable, the customs agent, together with a desc ription of the goods (tariff classification, quantity, 
weight and f.o.b. value in United States dollars).   The form must be accompanied by the commercial 
invoice, the transport documents, a sanitary, phytosan itary and/or animal health certificate, whichever 
                                                      
74 SEA Resolution No. 07/2003 of 18 March 2003. 
75 Decree No. 646 of 23 December 1996. WT/TPR/S/207 Trade Policy Review 
Page 50 
 
 
applies, and a certificate of origin for goods subj ect to preferential agreements or international 
conventions (for example, CITES). 
135. The Single Customs Declaration, introduced at the end of 2007, should replace the Single 
Export Form (and the import declaration) once it has come into general use (see Section 2(i) above). 
136. There is no compulsory registration of exporte rs.  Nevertheless, pursuant to Law No. 84-99 
on boosting and promoting exports (Section 3(iv) be low), exporters wishing to benefit from the 
incentives afforded by this Law must request thei r classification and an exporter's registration licence 
from the CEI-RD. 
137. Pursuant to the General Law on Health (No. 42-01), sanitary registration with the SESPAS is 
required for exporters of medicines, co smetics, and personal hygiene products.76  Likewise, under 
Decree No. 334-07 of July 2007, persons exporting scrap metal, scrap iron and other metallic waste 
must be registered with the CEI-RD if they are Dominican exporters and with the National Council of 
Free Export Zones if they are companies operating in such zones.  The purpose of registration is to 
ensure that these products are exported legally. 
138. Exporters seeking refund of the ITBIS paid on ra w materials and inputs incorporated in the 
products they export must be registered with the DGII of the Ministry of Finance. 
139. The Sistema de Ventanilla Única de Exportación  – SIVUCEX (one-stop window for foreign 
trade operations), created in 1998 in order to ce ntralize and streamline export formalities, was 
re-launched in 2005.  The CEI-RD, in coordination with the DGA, is responsible for its operation.  
The SIVUCEX is an automated system that allo ws exporters to conduct their export formalities, 
including obtaining the permits and certificates requi red by various bodies, electronically.  Exporters 
can also make electronic payments for the corresponding services through the Reserve Bank of the Dominican Republic.  It is hoped that the SIVUCEX will promote Dominican competitiveness by 
reducing the time taken and the operational costs in curred by exporters.  In connection with this 
Review, the authorities have indicated that, in Ja nuary 2008, a total of 66 exporting companies were 
using the system. 
140. In order to modernize export formalities, in  September 2006 the DGA and the CEI-RD signed 
an interinstitutional cooperation agreement under which the DGA undertook to collaborate with the 
CEI-RD in tasks relating to the administration and va lidation of the single export form and certificates 
of origin.  The DGA also collaborates in operating the SIVUCEX and in the procedures for payment 
of security and/or letters of indemnity under the temporary entry for inward processing regime.
77  In 
addition, for the purpose of developing and implementing the SIVUCEX, the CEI-RD has signed cooperation agreements with a number of government  institutions concerned by the export process. 
(ii) Export taxes and duties 
141. In order to protect marine resources, Decree No. 11-01 of November 2001 introduced levies 
on the export of fish, molluscs and live crustaceans.   The tax on fish is 0.03 Dominican pesos per 
kilogram (around US$0.0009 per kilogram), while for molluscs and live crustaceans it is 5 per cent 
ad valorem .  Pursuant to the Mining Law (No. 146) of June 1971, exports of mineral substances in 
their natural form or in the form of metalliferous  mineral concentrates is subject to a royalty or 
minimum tax of 5 per cent of the f.o.b. selling price;   this royalty can be credited against payment of 
income tax (ISR) for the same fiscal year. 
                                                     
 
76 Law No. 42-01, Article 110. 
77 Law No. 84-99. The Dominican Republic WT/TPR/S/207 
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142. Under Executive Decree No. 727-03 of 6 A ugust 2003 and subsequently pursuant to 
Law No. 1-04 of 6 January 2004, a contribución solidaria transitoria  – CST (transitional solidarity 
tax) of 5 per cent was imposed on gross revenue earned from exports of all Dominican goods and 
services.  Law No. 1-04 stipulated that the maximum duration of the CST should be six months as of 
its entry into force, after which it would automati cally cease to apply.  The CST remained in force 
until June 2004.  It is estimated that it gene rated RD$1.224 billion (some US$31 million) during its 
implementation period.  The resources generated by the CSD went to the Electricity Tariff 
Stabilization Fund in order to minimize the impact of the Dominican peso's devaluation on the price 
of electricity and liquefied gas. 
(iii) Export prohibitions and restrictions and licensing regime 
143. In the Dominican Republic, the export of some products can be prohibited for environmental, 
public health or food safety r easons.  Although exporters' licences have been abolished, some 
products are subject to special export licences or certificates. 
144. In order to protect public health and the envi ronment, the Dominican Republic prohibits the 
export of some products, including human blood and blood products (Law No. 56-1974), amber in its 
natural state (Law No. 65-1967), certain types of wood (Decrees Nos. 988, 728 and 4257), and sand, 
gravel and soil suitable for cultivation (Law No. 64-00).  In accordance with its CITES commitments, 
the Dominican Republic bans the export of tortoisesh ell in its natural raw state (Law No. 95 of 1967). 
145. Pursuant to Decree No. 377-92 of 18 December 1992, export licences as such were abolished.  
Nevertheless, the export of some products requires a special authorization, licence or certificate from 
certain institutions78, which in the majority of cases are issued in order to comply with requirements in 
the countries of destination. 
146. External sales of alcoholic beverages and ciga rettes require authorization by the DGII at the 
Ministry of Finance in order to benefit from exemption from the ISC.79  The export of certain minerals 
is subject to control and inspection by th e Directorate-General of Mining of the SEIC.80  
Pharmaceuticals, cosmetics and cleaning products re quire an export licence for chemical substances 
and precursors and/or an export licence for medicines containing controlled subs tances, issued by the 
SESPAS.81 
147. Phytosanitary certificates issued by the SEA are re quired for exports of oriental plants and 
other products of plant origin.82  The DIGEGA issues a licence and a sanitary certificate depending on 
the requirements in the country of destination fo r exports of animals and animal by-products, honey 
and its by-products, and veterinary products.83  Exports of marine species and products, as well as 
forest plants and animals, require a licen ce from the SEMARENA, in addition to the 
CITES certificate.84 
148. Exports of tobacco require a phytosanitary certificate issued by the SEA and a fumigation 
certificate issued by the Tobacco In stitute.  External sales of cocoa require a phytosanitary certificate 
                                                      
78 See the SIVUCEX Internet site at:  http://www.sivucex.gov.do. 
79 Regulation No. 79-03 and Article 366 of the Tax Code. 
80 Law No. 146-71. 
81 Law No. 42-01. 
82 Laws Nos. 4990-58 and 8-65. 
83 Law No. 4030-55. 
84 Decree No. 1288-04. WT/TPR/S/207 Trade Policy Review 
Page 52 
 
 
and a bean quality certificate issued by the SEA.85  Phytosanitary inspection and bean quality 
certificates, also issued by the SEA, are required for coffee exports, together with a certificate 
showing registration of the sales contract.86  Licences are also required fo r allocating export quotas for 
sugar, and are administered by the Instituto Nacional del Azúcar  – INAZUCAR (National Sugar 
Institute). 
(iv) Tariff and tax concessions 
149. The Dominican Republic has notified the WTO th at the tariff and tax concessions granted 
under the Free Zones Law include export subsidies and has undertaken to eliminate these by 2015 at the latest.  Under the DR-CAFTA, the Dominican  Republic undertook to eliminate all tariff 
exemptions subject to performance requirements by 2009.  In 2007, the Dominican Republic allowed 
companies in free zones to export to the Domini can Republic products made  by certain industries 
such as textiles, clothing and footwear, and extended some of the tax benefits given in the free zones 
to companies in these industries in the territory of the Dominican Republic.  Law No. 392-07 on 
Industrial Competitiveness and Industr ial Innovation, enacted at the end of 2007, gives tax facilities to 
other exporting companies established in the Dominican Republic. 
(a) Free zones 
150. In January 2002, the Dominican Republic notifie d the WTO of the subsidies granted pursuant 
to the Free Zones Law (No. 8-90 of 15 January 1990)  and requested an extension of the transition 
period allowed by the Agreement on Subsidies and Countervailing Measures (SCM Agreement)
87, 
citing the Ministerial Decision which allowed for th e possibility of extending that period for certain 
export subsidies provided by Members.88 
151. In September 2007, the Dominican Republic requ ested continuation of the extension relating 
to Law No. 8-9089, in accordance with the procedure adopted  by the General Council in favour of 
certain developing country Members.90  According to this procedure, the Members concerned 
undertook to eliminate export subsidies by 31 Dece mber 2015 at the latest and to submit an action 
plan for this purpose in 2010. 
152. In connection with this Review, the Dominican authorities have indicated that under 
Presidential Decree No. 468-06 (2006), a commission w as set up to adapt the legal framework for free 
zones to the provisions of the SCM Agreement.  In  May 2008, a draft law was finalized and submitted 
to the Executive for subsequent presentation to Congress.  Under the DR-CAFTA, the 
Dominican Republic undertook to eliminate tariff con cessions subject to performance requirements as 
of 31 December 2009. 
153. The Free Zones Law, together with its implementing regulations91, is the most important 
instrument for promoting Dominican exports.  Free zones are defined as geographical areas subject to 
                                                      
85 Law No. 4990 and Regulation No. 22-96 on grading and export procedures for cocoa beans. 
86 Law No. 4990 and Regulation No. 819-02 on the harvesting, processing, grading, export and 
manufacture of coffee. 
87 WTO document G/SCM/N/74/DOM of 8 January 2002. 
88 WTO document WT/MIN(01)/17 of 20 November 2001. 
89 WTO document G/SCM/N/163/DOM of 14 September 2007.  See also WTO document 
G/SCM/N/160/DOM of 5 July 2007, which contains an updating notification of subsidies under Law No. 8-90. 
90 WTO document WT/L/691 of 31 July 2007. 
91 Regulation No. 366-97 implementing of Law No. 8-90 of 29 August 1997, amended by 
Decree No. 721-04 of 3 August 2004. The Dominican Republic WT/TPR/S/207 
 Page 53 
 
 
special customs and fiscal controls in which co mpanies whose production or services are intended for 
foreign markets may set up.92 
154. Companies operating in free zones are given cust oms and tax incentives.  These include total 
exemption from the following taxes:  tariffs and ot her levies on the import of raw materials, inputs 
and equipment used for the establishment and operation of  such companies;  the ITBIS;  the ISR;  the 
tax on the incorporation of companies;  property tr ansfer tax;  municipal taxes and other special 
charges.93  The exemptions are given for a period of 20 years in free zones situated in border regions 
and for 15 years in free zones in the rest of  the country;  both periods may be extended. 
155. The body responsible for implementing Law No. 8-90 is the Consejo Nacional de Zonas 
Francas de Exportación  – CNZFE (National Council for Free Export Zones), composed of 
representatives of the public and private sectors.  Its tasks include evaluating free zones policy, 
promoting their development and making recommenda tions to the Executive.  The CNZFE is also 
responsible for examining and approving requests fo r the establishment of co mpanies in free zones 
and the corresponding extensions, as well as for regul ating relations between operators and companies 
in free zones.94  The operators are responsible for devel oping the physical and services infrastructure 
in the free zones and are also eligible fo r the benefits provided by Law No. 8-90. 
156. In addition to tax incentives, Law No. 8-90 contains provisions to facilitate customs 
procedures in companies set up in free zones.  For ex ample, it provides for a customs office to be set 
up in each free zone and establishes a customs sub-di rectorate, as well as a special core of customs 
guards, whose services are solely availa ble to companies in the free zones. 
157. Law No. 8-90 also provides that companies in free zones which set up in the border regions 
may obtain loans on preferential terms from the Cent ral Bank.  In connection with this Review, 
however, the authorities have stated that as at mi d-2008 no company in a free zone had benefited from 
this facility because the mechanism was not yet operating.  In 2003, the Programme for the financing 
of free zones was transferred from the Central Bank to the Banca Nacional de Fomento de la Vivienda 
y la Producción  – BNV (National Bank for the Promotion of  Housing and Production).  According to 
the authorities, there have been fewer operations  under this programme because of competition from 
the interest rates offered by the private financial sector. 
158. Subject to authorization from the CNZFE, companies in free zones may export up to 
20 per cent of their output to Dominican customs territory provided that they pay the tariffs and taxes applicable to similar imports.  Likewise, they may sell up to 100 per cent of their output on the 
domestic market if the goods and services have at  least 25 per cent national content or are not 
produced in the Dominican Republic, subject to payment of the corresponding tariffs and taxes.
95  
Import duties are calculated by the DGA and the ta x assessment base does not take into account the 
domestic components and value added utilized in the production of the goods in question. 
159. In 2007, Law No. 8-90 was amended to allo w companies in free zones to sell up to 
100 per cent of their output on the domestic market in the case of finished products of the textile and 
clothing, hides and skins and leather articles bran ches (see below).  Even though tariffs and other 
taxes payable at the border must be paid on products sold on the Dominican market by companies in free zones, the companies themselves are always ex empt from payment of domestic taxes such as the 
ISR and municipal taxes. 
                                                     
 
92 Law No. 8-90, Article 2. 
93 Ibid., Article 24. 
94 Ibid., Articles 19 and 20. 
95 Ibid., Article 24. WT/TPR/S/207 Trade Policy Review 
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160. As noted in the previous Review of the Dominican Republic, activities conducted in free 
zones generate the majority of its exports and ar e important sources of employment and investment 
(see also Chapter IV(4)).  By the end of 2007, 53 industrial parks were ope rating with 526 free zone 
companies, which in turn employed 128,000 workers.  In 2007, free zones generated exports 
amounting to US$4.563 billion, while their imports  totalled US$2.582 billion.  During the period 
under review, the share of exports from free zones in  comparison with the Dominican Republic's total 
exports gradually fell from 83.6 per cent in 2002 to 63 per cent in 2007.96  The authorities have 
indicated that free zones sell less than 3 per cent of their output on the domestic market. 
161. As regards the breakdown by branch of activity , companies in free zon es are mainly in the 
textile and clothing sector, which accounts for some 36 per cent of the companies.  In recent years, 
there has been some diversification to other sect ors such as services (11 per cent), trading companies 
(10 per cent), tobacco and tobacco products (9 pe r cent), electronic goods (5 per cent), jewellery 
(4 per cent), agro-industry (4 per cent) and me dical and pharmaceutical products (3 per cent) 
( Chapter IV(4)). 
162. A recent study by the Dominican authorities indi cates that the free zone sector is the one 
where the most tax revenue is foregone because of tax exemptions and other incentives, as well as tax 
evasion, and estimates the tax revenue fo regone at RD$10.160 b illion in 2008 (some 
US$299 million)97, that is, 4.4 per cent of total tax revenue in 2007. 
163. According to a study by a consulting firm, fre e zones have become less dynamic in recent 
years and their status as low-cost manufacturing centres has been eroded.98  This can be explained, 
inter alia , by pressure from international competition, mainly from countries in Central America and 
Asia, the high cost of production in terms of wag es, electricity and transport, and international 
competition from tax incentives for investment.  The sa me study reports that exports from free zones, 
adjusted for inflation, have fallen constantly si nce 2000, while the purchasing power of those working 
in the zones has dropped since 1998.99 
164. According to the Dominican authorities, the liberalization of quotas under the 
WTO Agreement on Textiles and Clothing has led to a cutback in employment in free zones, where 
some 60,000 jobs were lost between  2005 and 2007, the majority of them in the textile branch.100 
165. The Dominican Government is seeking to enhan ce the integration of free zone companies and 
local industry by developing indus trial links and supply chains.  Among the measures adopted for this 
purpose is Law No. 56-07 of 4 May 2007, which decl ares the textile, clothing and accessories, and 
hides and skins, footwear and leather articles br anches to be a national priority and establishes a 
regulatory regime for these industries applicable bot h to companies in free zones and those in the 
domestic market.  This Law extends some of the ta riff and tax incentives applicable to free zones to 
Dominican companies in the aforementioned branch es (zero tariff for imported inputs and equipment, 
exemption from the ISR, the ITBIS, and other tax es), and amends Law No. 8-90 to allow companies 
in free zones to export to Dominican territory free of duty up to 100 per cent of finished products in 
the textile, clothing and accessories, and hides and skins, footwear and leather articles branches 
(see Chapter IV, Section (4)). 
                                                      
96 Information provided by the Central Bank of the Dominican Republic.  Viewed at:  http://www. 
bancentral.gov.do/estadisticas_economicas/sector_extermo/bpagos.xls. 
97 Ministry of Finance (2007). 
98 OTF Group (2007), page 7. 
99 Ibid., page 6. 
100 Decree No. 552-07, creating the Employment Protection and Creation Fund with the aim of 
preventing job losses in free zones, of 8 October 2007. The Dominican Republic WT/TPR/S/207 
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166. Law No. 56-07 introduces another amendment to  the Free Zones Law (No. 8-90) concerning 
companies providing logistical services (for exam ple, consolidating and st oring goods) and marketing 
services.  Under this reform, goods imported by fre e zone companies engaged in providing these 
services may be sold on the domestic market, subject  to authorization by the CNZFE and subject to 
payment of the tariffs and taxes applicable. 
167. In the context of this Review, the authorities have indicated that by abolishing the local 
content requirements and restrictions on sales in the domestic market, as well as the export 
performance requirements, Law No. 56-07 represents a step forward in bringing domestic legislation 
into line with the Dominican Republic's  commitments under the SCM Agreement. 
(b) Concessions for Dominican exports 
168. In order to eliminate the anti-export bias caused by the payment of tariffs and other levies on 
inputs incorporated into products for export, Law No. 84-99 of 6 August 1999 on boosting and 
promoting exports and its impl ementing regulations (Decree No. 213-00 of 22 May 2000) establish 
three mechanisms to promote exports by  companies located outside free zones: 
- The return of customs duties and levies provides for the refund of tariffs and other 
levies paid on imports of raw materials, in termediate goods, inputs , containers, labels 
and packaging as long as they have been incorporated in goods for export. 
- The simplified compensation fo r customs levies allows exporters to obtain a cheque 
to the nominee or a tax compensation coupon for an amount of up to 3 per cent of the f.o.b. value of the goods exported, although it may not exceed the value of the 
customs duty paid. 
- The temporary admission for inward processing regime allows suspension of the 
payment of tariffs and the ITBIS on pr oducts imported for processing and re-export 
(within 18 months), including products from free zones.
101 
169. The CEI-RD administers the three mechanisms in cooperation with the DGA.  In general 
terms, according to data from the CEI-RD, the f.o.b. value of Dominican exports under 
Law No. 84-99 amounted to US$624 million in 2007. 
170. For the purposes of this Review, the authoriti es have stated that, in mid-2008, of these 
mechanisms were only used to a limited extent, inter alia , because over half of the 
Dominican Republic's tariff rates were zero and ther e was a lack of inter-institutional agreements to 
give effect to the compensation or refund of du ties provided by these mechanisms.  Moreover, the 
temporary admission for inward processing regime, although still operating, had lost some of its 
attraction because of the tax incentives given by Law No. 392-07. 
171. Law No. 392-07 on Industrial Competitiveness and Innovation of December 2007 provides 
that Dominican or foreign companies eligible  for programmes under this Law and approved by 
PROINDUSTRIA (see Section (4)(iii) below), which export to third parties, including those in the 
free zones, have the right to refund of th e following taxes:  the ITBIS, the ISC on 
telecommunications, insurance and fuel, and the tax on cheques, in an amount equal to the share of 
export earnings in total sales revenue for a specified period.  Law No. 392-07 partly came into effect 
                                                      
101 The temporary import regime also allowed suspension of the "foreign exchange fee" and the 
transitional tax of 2 per cent on imports when these charges were still in force. WT/TPR/S/207 Trade Policy Review 
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in mid-2008.  The DGII is responsible for ad ministering ITBIS refunds pursuant to General 
Rule 02-08, issued for this purpose in February 2008. 
(v) Export financing, insurance, guarantees and promotion 
172. The Dominican Republic does not have any official body specially responsible for the 
financing of exports.  This responsibility, which wa s previously entrusted to the Central Bank, was 
transferred to the BNV in 2003.102  The BNV has a programme to provi de exporters with financing for 
their short-term operations in the form of post-sh ipment loans.  The BNV finances this programme 
through its own funds an d channels these through instituciones financieras intermedianas  – IFIs 
(intermediate financing institutions). 
173. The post-shipment programme is intended to pr ovide exporters of any type of product with 
working capital.  Up to 90 per cent of the va lue of the banking documents covering the export 
transaction can be financed provided that the maximum amount of US$100,000 in Dominican pesos 
per shipment is not exceeded, using the Central Bank exchange rate on the date on which the loan was 
approved.  Loans are given at an average rate of interest of 12 per cent for a period of 90 days as of 
the date of disbursement of the funds to the IF Is. In 2007, the average active interest rate in 
commercial banks for loans of up to 90 days was 14.37 per cent.103 
174. The authorities have pointed out that although other official resources are available to 
exporters to finance their fixed assets, interest rates are high (18 to 22 per cent) and a large number of 
requirements and lengthy bureaucratic forma lities are required in order to obtain them. 
175. The Dominican Republic has no official e xport insurance or guarantees programmes, 
although in mid-2008 it was drawing up a proposal on export insurance. 
176. Since 2003, the CEI-RD has been the official body responsible for promoting Dominican 
exports, a role previously played by the CEDOPEX.  The CEI-RD's activities include organizing trade missions, fairs and exhibitions to promote the of fer of Dominican products;  identifying foreign 
demand and the requirements to be met by Dominican products in other markets;  technical assistance to exporters and support for their participation in international events;  and identifying Dominican 
products and companies with export potential.  Prom otion activities are aimed at domestic exports and 
those from free zones, even though in the future it is  planned to focus more on the latter.  Although all 
activities are promoted, the following sectors are deemed  to be priorities:  foodstuffs and beverages 
(agricultural, agro-industrial and organic products ), industrial goods (furniture, leather articles, 
footwear, textiles and cosmetics), and cultural industrie s (handicrafts, works of art, music and videos). 
177. Together with the customs authorities, the CEI-R D is also responsible for administering the 
mechanisms for refunds, compensation and tem porary admission provided in Law No. 84-99 on 
boosting and promoting exports in addition to t hose covered by preferential trade agreements. 
178. The CEI-RD is financed by a budget from the Government (40 per cent) and transfers from 
the DGA (60 per cent);  the latter are derived from the services provided by the CEI-RD for the sale 
of certificates of origin, which are paid directly  by the DGA and then transferred to the CEI-RD.  
According to information provided by the aut horities, from January to December 2007, the budget 
allocated to the Export Promotion Department and other areas related to promotion in the CEI-RD 
amounted to around RD$43.7 million (just over US$1.2 million). 
                                                     
 
102 Monetary and Financial Law No . 183-02 of 3 December 2002. 
103 Information from the Central Bank of the Dominican Republic.  Viewed at:  
http://www.bancentral.gov.do. The Dominican Republic WT/TPR/S/207 
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179. Decree No. 334-05 of June 2005 established the Presidential Council for the Promotion of 
Domestic Exports as a joint body comprising the government and private sectors.104  The Council's 
main objectives include the following:  to promote an  export-oriented culture, to help strengthen the 
CEI-RD, to eliminate the anti-export bias between the free zones and the domestic industry, to set up 
a modern system for a one-stop window for foreign tr ade, to promote export clusters, to reform the 
ports and customs service, and to su pport the National Competitiveness Plan. 
180. The private sector also has export promoti on activities, mainly through the ADOEXPO.  
These include technical, legal and administrati ve training programmes for exporters, the 
dissemination of trade information and market oppor tunities, and encouraging government authorities 
to adopt measures to promote the development of exports, such as tax incentives, access to financing 
and lowering transaction costs for operations.105 
(4) OTHER MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Establishment and taxation of enterprises 
181. In the Dominican Republic, setting up companies is essentially governed by the Commercial 
Code of 1884 and amendments thereto.  Other la ws relating to various aspects of enterprise creation 
are the Foreign Investment Law (Law No. 16-95), the Industrial Property Law (Law No. 20-00), the 
Law on Company Registration (Law No. 03-02), th e Tax Code (Law No. 11-92) and amendments 
thereto, the Law on the DGII (Law No. 227-06) and the Law on Industrial Competitiveness and 
Innovation (Law No. 392-07). 
182. The Commercial Code allows various types of  company to be set up:  public limited 
companies, general partnerships, joint partnerships , limited partnerships, part nerships limited by share 
capital, and joint ventures.  In most cases, companies are set up as public limited companies.106  
Pursuant to Article 56 of the Commercial Code, a mi nimum of seven shareholders is required to set 
up a public limited company and these may be either  Dominican citizens or foreigners, natural or 
legal persons.  With the exception of banking and insurance, the rules on capitalization are fairly 
flexible:  no minimum capital is required, but companies must be able to finance themselves on the 
basis of the debt/assets ratio they choose.  A draft law on commercial companies and individual 
businesses with limited liability, which includes new ty pes of company such as sole proprietorships 
and limited liability companies, has been approved by the Senate and was being considered by the 
Chamber of Deputies in mid-2008. 
183. Since July 2003, in order to set up a public limited company in which the majority 
shareholder is a foreign company, the following docum ents must be submitted in addition to the usual 
documentation required107:  a certificate attesting to the incorporation of the foreign shareholding 
company issued by the corresponding authority in its country of origin and legalized by the Dominican Consulate in that country together with a copy of the document giving the person responsible legal authority to represent the foreign company in the Dominican Republic. 
                                                     
 
104 The Council is composed of the CEI-RD, as chair, the SEIC, the Technical Secretariat of the 
President's Office and the Central Bank, toge ther with three members appointed by the Asociación Dominicana 
de Exportadores  – ADOEXPO (Dominican Ex porters' Association). 
105 Viewed at:  http://www.adoexpo.com. 
106 See Pellerano and Herrera (2007), and Dhimes and Marra (2005). 
107 Registration of the trade name;  list of shareholde rs with their identity card or passport numbers, the 
company's articles of incorporation, including the constituent assemblies and bank references. WT/TPR/S/207 Trade Policy Review 
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184. Foreign companies may operate in the Dominican  Republic through an agency, a subsidiary, a 
branch or a consortium (the latter form is used  for carrying out projects in which the Dominican 
Government participates).  With the exception of ba nking and insurance (see Chapter IV(5)(iii)), for 
the majority of economic activities having a lega l domicile in the Dominican Republic is not a 
mandatory requirement in order to operate, even though in practice companies frequently opt for this 
procedure.  Subsidiaries and branches of foreign companies are given the same fiscal treatment as 
Dominican enterprises. 
185. In general, the process of setting up a company includes the following steps:  registration of 
the company name with the National Industrial Property Office108;  payment of the incorporation 
tax109;  registration of the company with the Chambe r of Commerce and Production in the relevant 
jurisdiction110;  formalities at the DGII in respect of the National Taxpayers' Register111;  and 
registration of local employees with the Ministry of  Labour and the National Social Security Council.  
Where applicable, sanitary registration with th e SESPAS and an environmental permit from the 
SEMARENA are required112 and, in the case of industry, registration with the Center for Industrial 
Development and Competitiveness.113 
186. The time required to set up a company varies between two and three weeks and the costs 
depend on the company's registered capital, which is used as a basis to determ ine the capital taxes and 
the fee for registering the company.  A study by th e World Bank shows that, in 2007, 22 days were 
required to set up a public limited company in Santo Domingo (73 days in 2006) and the cost amounted to 31.1 per cent of the per capita GNI.
114 
187. With a view to streamlining procedures for th e creation of enterprises, in February 2008 the 
Consejo Nacional de la Competitividad – CNC (National Competitiveness Council) introduced a 
comprehensive virtual system called " Crea Tu Empresa ", which allows companies to be set up via the 
Internet.115  The aim is to shorten the time required to  set up a company in the Dominican Republic to 
78 hours, doing away with some formalities and vis its to each of the institutions involved in the 
process, with the exception of the Chamber of Commerce, which still requires the deposit of the 
original documents.  According to data from the au thorities, in May 2008 the site had registered over 
1,900 users and 35 new companies had been creat ed.  This system only concerns companies 
domiciled in the city of Santo Domingo, although cons ideration is being given to extending it to the 
rest of the country. 
188. The basis of the Dominican Republic's tax system  is essentially territorial, in other words, the 
revenue of enterprises or natural persons ear ned from economic activities conducted on Dominican 
territory, or from property situated in or utilized  for economic purposes in the country, is taxable in 
the Dominican Republic, irrespective of the nationalit y, domicile or residence of the persons involved 
in the operations.  The DGII is responsible for collecting taxes and applying tax legislation. 
189. Some of the principal taxes applicable to co mpanies in the Dominican Republic are the ISR, 
the assets tax, the company incorporation tax, and the real estate tax.  Tax is also deducted at source 
from dividends, interest and royalties of Dominican  origin paid to non-residents (Table III.4). 
                                                      
108 Law No. 20-00 of 8 May 2000. 
109 Law No. 11-92 of 31 May 1992, as amended by Law No. 173-07 on collecting tax revenue. 
110 Law No. 03-02 of 18 January 2002. 
111 Law No. 227-06 of 19 June 2006. 
112 Law No. 42-01 of 8 March 2001 and Law No. 64-00 of 25 July 2000, respectively. 
113 Law No. 392-07 of  4 December 2007. 
114 World Bank (2007). 
115 Information on line from the National Competitivenes s Council.  See:  http ://www.creatuempresa.gob.do The Dominican Republic WT/TPR/S/207 
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Table III.4 
Principal taxes applicable to companies and natural persons engaged in commercial and industrial activities 
Tax Legal framework and description Rate (%) 
Income tax 
(ISR) Law No. 11-92 of 31 May 1992 and amendments thereto;  Law No. 172-07 of 17 July 2007.  
The ISR applies to all income, earnings, profits or benefits, including capital gains, received 
by natural or legal persons resident in the country.  The tax is paid on the income from 
Dominican sources, as well as that from fore ign sources derived from  investment and gains 
from financial transactions.  Employers are ob liged to deduct and pay to the tax authorities a 
percentage of their employees' wages accord ing to the table of deductions from wages 
approved annually by the tax authorities. 25% on the net 
income of 
companies;  and 15-
25% on the net income of natural 
persons. 
Assets tax  Law No. 11-92 of 31 May 1999 and amendments thereto;  Law No. 557-05 of 
13 December 2005.  The tax applies to the asse ts of natural or legal persons having single 
proprietor businesses.  The total value of the assets (including real estate) appearing in the 
taxpayer's overall balance is taxed, not ad justed for inflation, after deductions for 
depreciation, amortization and a provision for irrecoverable debts.  Shares in other 
companies, land in rural areas, agricultural real  estate and taxes paid in advance are not 
included. 1% on the assets. 
Company 
incorporation 
tax Law No. 11-92 of 31 May 1992, as amended by Law No. 173-07.  The incorporation of 
public limited companies, limited liability compan ies and partnerships limited by shares is 
subject to a tax determined according to the co mpany's authorized capital.  A tax at the same 
rate is payable on increases in capital. 1% of the authorized 
registered capital but 
not less than 
RD$1,000 (some 
US$30). 
Deductions at source Law No. 11-92 of 31 May 1992 and amendments thereto.  Tax is deducted at source on 
payments abroad of;  (a) dividends, (b) inte rest and (c) royalties of Dominican origin.  
Natural or legal persons who pay or credit the accounts of persons not resident or domiciled 
in the Dominican Republic with  any such payments must deduct and transfer to the tax 
administration the amount of the corresponding tax. (a) 25 % 
(b) payments to non-
residents 25%;  
payments to financial institutions 
10% 
(c) 25% 
Real estate tax Law No. 11-92 of 31 May 1992 and amendmen ts thereto.  The tax is imposed on real estate 
used for commercial or industrial activities belonging  to natural or legal persons.  It is applied 
on the total value of the property as declar ed in the company's financial statements. 1% on the value of 
the property. 
Social security 
contributions Law No. 87-01 of 10 May 2001.  Employers must  deduct and pay contributions for their 
employees for the following:  (a) old age and disability insurance (pensions);  (b) family 
health insurance;  and (c) occupational risk insurance. (a) 2.88% 
(b) 3% 
(c) 1% – 1.6% of the employees' wages. 
Source : Ministry of Finance. 
(ii) Competition policy and pricing 
190. In January 2008, the General Law on Competition was enacted for the purpose of 
strengthening the legal and institutional framework for promoting competition.  Until then, there had 
been only limited measures to protect competition and they were spread over a number of legal 
instruments.  The new Law could be an important step forward in promoting the efficiency of the 
Dominican market because of its high level of concentration.  The Dominican Republic has price controls on electricity and certain agricultural pr oducts (see Chapter IV(2) and (3)).  The price of 
hydrocarbons is subject to a formula and varies acco rding to fluctuations on the international market. 
(a) Competition policy 
191. The Constitution of the Dominican Republic (Ar ticle 8) proclaims freedom of enterprise, 
trade and industry and prohibits monopolies, except State monopolies, which must be authorized by law.  Articles 419 and 420 of the Criminal Code impose penalties if free enterprise or competition 
comes under threat from price fixing, spreading of  rumours, or collusion among company executives.  
The Industrial Property Law and the Copyright Law specify various acts of unfair competition 
relating to intellectual property.  Law No. 358-05 (Consumer Law) protects the economic interests of 
consumers against discriminatory or abusive practices  on the part of suppliers  of goods or services.  WT/TPR/S/207 Trade Policy Review 
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There are also sectoral laws that deal with compet ition in regulated activities:  telecommunications, 
electricity, banking, insurance and securities. 
192. A recent study, published prior to the enactment  of the new Competition Law, underlined the 
high level of concentration in the Dominican Repub lic's market.  According to the study, this is 
attributable to the high cost of entry, the wea kness of policies against anti-competitive practices, 
inadequate control of corruption and enforcement of legislation, as well as the privileges given to 
specific sectors and companies, which created an  environment in which business prospects were 
based on personal and family relationships  and not on the stability of contracts.116  Although the 
limited size of the Dominican market could mean that there is no room for a large number of 
competitors, the study advocated th e need to adopt a competition law in order to prevent abuse of a 
dominant position and to promote market efficiency. 
193. One instrument that has been considered as limiting competition on the Dominican market is 
the Law on the Protection of Importers of Goods an d Products (Law No. 173 of 1966).  This Law 
applies to all contractual relations registered with  the Central Bank between a licensor and a licensee 
for the distribution of particular products and services in the Dominican Republic, providing for 
compensation for the licensee if the contract is term inated by the licensor.  This provision makes it 
more costly to change distributors and could affect their access to the market and subsequent expansion.
117 
194. The Law on Implementation of the DR-CAFTA  (No. 424-06 of November 2006) provides 
that Law No. 173 shall not apply to any contract signe d by a United States supplier as of the entry into 
force of the DR-CAFTA unless the contract specifi es that it is governed by the provisions of the 
aforementioned Law.  For contracts with suppliers from other DR-CAFTA countries and the rest of the world, Law No. 173 remains in effect. 
195. Following lengthy discussions with a view to reaching a consensus, at the end of 2007 the 
General Law on Competition was approved, and it was enacted on 16 January 2008 (Law No. 42-08).  
This Law establishes the Comisión Nacional de Defensa de la Competencia  – CNDC or 
Pro Competencia (National Competition Commission) , a decentralized body with administrative, 
technical and financial autonomy, to be res ponsible for enforcing the competition policy and 
legislation.  The Board of Directors of ProCompete ncia will be composed of five members appointed 
by the National Congress and proposed by the Ex ecutive.  Law No. 42-08 will come into force 
immediately after the members of the CNDC's Boar d of Directors have been appointed.  As at 
mid-2008, work on setting up the Commission was going ahead and it was hoped that the Law would 
enter into force in 2009 after a period for training the personnel. 
196. The purpose of Law No. 42-08 is to promote and protect effective competition in order to 
enhance the efficiency of markets for goods and services to the benefit of consumers.  It applies to all 
natural or legal persons under public or private law, whether Dominican citizens or foreigners, and to 
any acts, contracts or administrative provisions who se effect is to restrict competition.  The Law 
principally applies to all economic activities and subs idiarily to activities regulated by sectoral laws 
which contain provisions on competition. 
197. According to the new Law, express or ta cit concerted practices or anti-competitive 
agreements which unjustifiably raise market barriers are prohibited, for example:  pricing, colluding 
in public tendering procedures, dividing up the mark et, and limiting production.  Criteria are also 
defined in order to determine when conduct shou ld be considered anti-competitive, allowing for 
                                                     
 
116 Solano, A.F. (2007). 
117 Idem . The Dominican Republic WT/TPR/S/207 
 Page 61 
 
 
exceptions when it leads to greater economic effi ciency, innovation or productive investment.  The 
Law also prohibits the abuse of dominant positions, although it specifies that attaining or enhancing a 
dominant position on the market alone does not c onstitute a violation.  The Law also establishes 
criteria for determining the relevant market. 
198. Unlike the laws for regulated sectors (telecommuni cations, electricity, banking, insurance and 
securities), Law No. 42-08 does not contain any provisions on controlling mergers and does not require prior authorization for the merging or integration of businesses. 
199. The CNDC is empowered to review legal acts by the State that are contrary to free 
competition and to transmit public reports to the comp etent authorities, suggesting remedial measures.  
It also has authority to examine the impact on competition of subsidies and other State support given 
to public or private companies and to request their elimination or modification. 
200. Procedures for investigating and punishing acts prohibited by the Law are the responsibility 
of the CNDC's Executive Directorate, which can act eith er ex officio or at the request of a party.  Any 
person with a legitimate interest may present a reaso ned complaint denouncing an  alleged violation of 
the Law.  The CNDC decides whet her there has been any unlawful pr actice and, if this is the case, 
orders its cessation within a specified period and imposes a fine.  The CNDC is authorized to impose 
preventive measures such as cessation of an act deemed to be harmful to competition and the deposit 
of security to cover the injury.  Without prejudi ce to criminal and civil penalties, the CNDC may 
impose monetary sanctions, which vary accord ing to the seriousness of the offence. 
201. The Dominican Republic does not have any agre ements on cooperation with other countries 
in relation to competition, although it has such co mmitments under its free trade agreements.  For 
example, the agreement with the CACM contains  specific commitments on maintaining effective 
competition in markets, while the agreement with  the CARICOM obliges the States to implement a 
competition regime with broad scope.  The agreem ent with the European Union provides for the 
subsequent incorporation of provisions on compe tition policy (see also Chapter II(4)).  Although the 
DR-CAFTA does not contain any special chapter on  competition policy, it requires the parties to 
promote the conditions for fair competition in the area of free trade. 
(b) Price controls 
202. As at mid-2008, the Dominican Republic controlled the price of electricity (Chapter IV(3)), 
hydrocarbons, and some agricultural products (see Chapter IV(2)). 
203. Pursuant to Law No. 112-00 and its implementi ng regulations (No. 307-01), the price of 
hydrocarbons is fixed weekly in order to prevent abusive marketing margins.  The price is calculated 
on the basis of the Precio de Paridad de Importación  – PPI (Import Parity Price), which uses as a 
reference the international price of refined products published on the US Market Scan Gulf Coast 
exchange, the official average exchange rate of the Central Bank of the Dominican Republic and other 
cost elements applicable to imports (for example taxes and financial costs). 
204. The marketing margins are defined through SEIC de cisions and are added to the PPI in order 
to obtain the selling price to the public.  The margin s are calculated for each of the components of the 
marketing chain for hydrocarbons (importers, distributor s, retailers and transporters) on the basis of an 
analysis of earnings and costs by the SEIC together with the Ministry of Finance.  Prices are published on the SEIC's Internet site. 
205. Law No. 13 of 27 April 1963, which allowed pric e controls for certain basic articles and 
services in order to protect consumers, was repealed by Law No. 358-05. WT/TPR/S/207 Trade Policy Review 
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(iii) Incentives 
206. In 2007, the Dominican Republic introduced new tax incentives to promote the 
competitiveness of the domestic industry and to match the incentives given under export promotion 
regimes (see Section (3)(iv) above).  These new incentives are additional to other programmes to 
assist small and medium-sized enterprises, re search, technological innovation and regional 
development.  The programmes mainly consist of  tax incentives, financing on preferential terms, 
technical assistance and support for research.  There are no comprehensive estimates of the net economic benefits of these programmes, but it would be advantageous to carry out such studies in 
order to identify those programmes who se benefits justify their fiscal cost. 
(a) Tax incentives to promote competitiveness and integration of the domestic industry 
207. In December 2007, the Law on Industrial Co mpetitiveness and Innovation (Law No. 392-07) 
was enacted in order to promote the developmen t of manufacturing through support programmes to 
encourage industrial reform and i nnovation, production linkages and re lationships with international 
markets.  The Law established the Centro de Desarrollo y Competitividad Industrial  – 
PROINDUSTRIA (Center for Industrial Development and Competitiveness) to replace the 
Corporación de Fomento Industrial  – CFI (Industrial Promotion Corporation) as the governing body 
for the industrial sector, with government and private participation.  By mid-2008 the implementing regulations for Law No. 392-07 had not yet been published, although the DGII had issued rules and 
there were temporary decisions by the Council of PROINDUSTRIA in order to start implementing the 
law. 
208. Law No. 392-07 offers a number of incentives to  promote industrial reform and linkages 
among industries.  Enterprises must be approved in order to receive these incentives.  A PROINDUSTRIA Council Resolution (No. 01-2008 of  February 2008) lays down the requirements 
for seeking approval, which specify, inter alia , that the company must be formally incorporated, be 
active in manufacturing industry, be up to date in  its tax obligations and provide various documents 
and information on its activities.
118  By June 2008, around 100 companies had been approved.119 
209. In order to promote industrial modernization, for five years as of the date of entry into force 
of the Law, approved companies are allowed accelerat ed depreciation of the value of the machinery, 
equipment and technology bought.  They may also deduct from their net taxable income for the previous fiscal year up to 50 per cent of any in vestment in buying machinery, equipment and 
technology, and the fixed assets thus acquired are not considered to be part of the taxable base for the 
assets tax.  Companies approved under this Law are al so exempt from the obligation to deduct the ISR 
from foreign natural or legal persons providing  professional services related to innovation and 
technological development. 
210. Law No. 392-07 seeks to promote the integration of production chains by creating industrial 
parks where enterprises are grouped together by type of activity.  Enterprises authorized to develop an 
industrial park are wholly exempt from payment of  national and municipal ta xes related to building 
permits and taxes on imports  and other levies, including the ITBIS, on the equipment, materials and 
fixtures needed to put the industrial park into opera tion;  this exemption also applies to goods bought 
on the local market for the same purposes.  These in centives are given for starting up projects and are 
automatically suspended when operations commen ce.  The Law also promotes the creation of 
                                                     
 
118 The form to be used in seeking approval is available at:  http://www.proindustria.gov.do. 
119 Information on line from PROINDUSTRIA.  See:  http://www.proindustria.gov.do. The Dominican Republic WT/TPR/S/207 
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industrial districts, defined as groups of two or more  free zones, industrial parks of SMEs or industry 
in general, as well as the creation of clusters.120 
211. In order to expedite trade formalities, Law No . 392-07 provides for a sp ecial customs regime 
for approved companies, as well as exemption from paying to the DGA the ITBIS on raw materials, 
industrial machinery and capital goods covering a wi de category of goods listed in Tax Reform 
Law No. 557-05 of December 2005.  In addition, in order to give the approved industries incentives 
that match those provided under the free zone regime and other special regimes, it is established that 
facilities for buying foreign products, such as exem ption from tariffs, the ISC and the ITBIS allowed 
under these incentive regimes shall apply in exactly the same way to the purchase of consumable 
goods121 produced locally. 
212. Law No. 392-07 also provides for the creation of  a guarantee fund for loans granted through 
financial intermediaries, including PROINDUSTRIA , in order to cover losses in their small and 
medium-sized enterprise portfolios.  The fund will star t to operate within one year as of the date of 
publication of the Law. 
213. According to preliminary estimates by the aut horities, the fiscal cost of the incentives under 
Law No. 392-07 will range from RD$4.38 to RD$13.866 billion (US$12 9 to US$407 million), 
corresponding to between 0.43 and 1.35 per cent of the GDP for 2006.  The authorities have stated that these estimates take into account the fiscal im pact of around 20 mechanisms covered by the Law 
and that, in mid-2008, the only incentive being applied was non-payment of the ITBIS when certain products were imported, therefore, the real fiscal impact was much less. 
214. The National Competition Council (CNC), es tablished in Novemb er 2001 and ratified 
pursuant to Law No. 1-06 of January 2006, is respons ible for formulating and implementing strategies 
to enhance the competitiveness of key sectors of  the Dominican economy, namely, agro-industry, 
manufacturing, free zones, tourism and SMEs.  The CNC works through sectoral action committees composed of representatives of the government and private sectors, which undertake studies and 
define sectoral competitiveness strategies.
122  Through the Fondo Nacional de Competitividad  – 
FONDEC (National Competitiveness Fund) the CNC supports these strategies by providing 
specialized technical assistance and funds, mainly for the purpose of creating clusters.  The CNC also 
supports initiatives intended to improve the business climate. 
(b) Support for the development of micro, small and medium-sized enterprises 
215. The Dominican Republic promotes the developm ent of micro, small and medium-sized 
enterprises (MSMEs) through financial support, tr aining and technical assistance.  The National 
Council for the Promotion of and Support to Micro,  Small and Medium-Sized Enterprises, belonging 
to the SEIC, is responsible for drafting and coor dinating policy in this area and administers the 
PROMIPYME, one of the major programmes s upporting small enterprises.  The PROMIPYME 
provides comprehensive support, both financial a nd non-financial;  its services include commercial 
loans for working capital, for building and extending buildings and for purchasing machinery, 
equipment and vehicles for the business.  It also offers technical assistance, management training and consultancy services to companies. 
                                                     
 
120 The Law defines clusters as geographical concen trations of companies in a particular economic 
branch, specialized suppliers, companies offering serv ices, companies in linked economic branches and 
associated institutions which compete and cooperate in a specific economic field. 
121 Consumable goods are deemed to be those that ca nnot be used as intended without being consumed. 
122 The action taken by the CNC sectoral committees  can be viewed at:  http://www.cnc.gov.do. WT/TPR/S/207 Trade Policy Review 
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216. PROMIPYME loans are given to industrial,  agro-industrial, commercial and services 
enterprises.  The maximum amount of credit is RD $3 million (US$88,235);  the terms range from 6 to 
60 months, and the annual interest rates are 8 per cent for industry and agro -industry, 12 per cent for 
the business sector and 13.5 per cent for services.123  At the end of March 2008, the average active 
interest rates of the commercial banks for loans of up to 90 days and 91 to 180 days were 
13.38 per cent and 14.68 per cent, respectively.  The authorities have explained that the PROMIPYME's interest rates are subsidized by the Government with the aim of reviving the MSME 
sector, boosting employment and improving producti on capacity, particularly in the industrial and 
agro-industrial sector. 
217. The funds are channelled to companies through the IFIs in the form of second-tier loans, as 
well as through the financial platform of the Reserve  Bank as first-tier loans.  In 2007 as well, a loan 
window managed directly by the PROMIPYME was opened.  Over the period 2002-2007, the PROMIPYME granted financing to 39,486 compani es for a total amount of RD$4.468 billion (around 
US$131.4 million), broken down as follows:  trad e (59 per cent), industry and agro-industry 
(22 per cent) and services (19 per cent).
124 
218. The PROMIPYME is financed mainly from r esources derived from return on capital in its 
loan portfolio, allocations from the national budget, as well as the resources from other government 
institutions such as the captive fund  for enterprise reform and the Reserve Bank;  it also receives 
financing from external sources such as the Span ish International Coopera tion Agency and donations 
from Chinese Taipei. 
(c) Support for research and development 
219. The IIBI, established in 2005 (Decree No. 58-05)  is responsible for undertaking scientific 
research and promoting technological innovation to be applied in economic sectors with growth 
potential.  It provides support for companies in their conversion and mode rnization efforts through 
information services, training of human resources, te chnological development and consultancy.  The 
IIBI not only provides services to MSMEs but also to  large companies in s ectors such as the food 
industry, textiles, pharmaceuticals, cosmetics, agro -industry, ironworks and the furniture industry.  
The IIBI budget for 2008 was RD$86. 7 million (around US$2.5 million).125 
220. The IDIAF, established by Law No. 289, is the leading institution for agricultural research 
and development.  Its objective is to raise the technological level and producers' incomes by 
enhancing productivity, lowering the unit costs of  production, and value added in the agro-food 
chains.  The IDIAF provides training, technical as sistance and consultancy for the preparation of 
projects, as well as other services.  Its budget for 2008 was RD$230.8 million (some US$6.8 million).
126 
(d) Other support and instruments 
221. The Dominican Republic has a number of inst ruments to promote regional development, 
particularly in the border areas, through tariff a nd tax incentives.  Law No. 28-01 (February 2001) 
provides for exemptions from taxes and tariffs for companies established in seven border provinces.127  
                                                      
123 Information viewed on line 28 March 2008 at:  http://www.promipyme.gov.do. 
124 Data provided by the Dominican authorities. 
125 Ministry of Finance (2008b). 
126 Idem . 
127 The provinces of Pedernales, Independencia, Elías Piña, Dajabón, Montecristi, Santiago Rodríguez 
and Bahoruco. The Dominican Republic WT/TPR/S/207 
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These companies are given exemption from all tariffs and taxes and a 50 per cent reduction on fees 
for transit and use of ports and ai rports.  The tax reductions and reduced fees are given for a period of 
20 years as of the date on which the company starts  its operations, but not further than 2026.  Tariff 
exemptions are granted until 2021, irrespective of the year in which the company started up.  The 
Council for the Coordination of the Special Border  Development Zone is responsible for approving 
the establishment of companies eligible und er this regime.  A recent study by the 
Dominican Government estimated the fiscal cost of implementing this Law on border development to be RD$425.4 million in 2008 (some US$12.5 million)
128, corresponding to 0.18 per cent of tax of 
estimated tax revenue for 2008. 
222. The Tourism Development (Law No. 158-01  of 2001) and amendments thereto 
(Law No. 184-02 of November 2002) are intended to promote the development of tourism in priority 
regions (see Chapter IV(5)(vii)).  According to a stud y by the Dominican authoriti es, the fiscal cost of 
implementing the Tourism Development La w is estimated to be RD$1.066 billion 
(US$31.4 million)129, corresponding to 0.46 per cent of estimated tax revenue for 2008. 
223. Other instruments to promote industrial devel opment in specific geographical areas include 
Decree No. 947-01 of September 2001, which establish ed industrial mining parks in ten regions, and 
Law No. 117-01, which established the San Pedro de Macorís Free Trade, Industrial and Financial 
Zone as a separate customs territory with its own ad ministration.  The authorities have indicated that, 
by mid-2008, no company had utilized these instruments. 
(iv) State-owned enterprises and privatization 
224. According to the authorities, in the Dominican  Republic there are no State-owned enterprises 
with the exclusive right to engage in foreign trade,  although this has not been formally notified to the 
WTO.  The authorities have indicated that State- owned enterprises and those with government capital 
do not have any special privileges a nd compete with the private sector. 
225. The reorganization of Dominican State-owned en terprises started in 1997 with the enactment 
of the General Law on the Reform of State-owne d Enterprises (No. 141-97).  The Law provides for 
various forms of private capital participation:  capitalization, leasing and sale of assets.  The most 
common form is capitalization under which a private investor provides capital equal to the value of 
the company and the State holds 50 per cent of the shares.  The Comisión de Reforma de la Empresa 
Pública  – CREP (Commission on the Reform of State-owned Enterprises), established by 
Law No. 141-97 and coming under the Office of the President of the Republic, is the entity 
responsible for conducting and directin g reform in State-owned enterprises. 
226. All the enterprises subject to Law No. 141-97 underwent reform, most of which occurred 
between 1998 and 2000.  According to the author ities, since August 2000, a number of political 
factors have delayed the reforms not yet complete d and these were finally cancelled because of lack 
of interest in the market. 
227. During the period under review, the reform of State-owned enterprises mainly consisted of 
selling of assets and adopting of decisions of an institutional nature, and concerned the following 
enterprises;  Industria Nacional del Vidrio  – FAVIDRIO (National Glass Industry), Pinturas 
Dominicanas  – PIDOCA (Dominican Paints), Industria Nacional del Papel – INDUSPAPEL 
(National Paper Industry) and Compañía Dominicana de Aviación – CDA (Dominican Aviation 
Company).  According to data provided by the aut horities, during the period under review the revenue 
                                                      
128 Ministry of Finance (2007). 
129 Idem . WT/TPR/S/207 Trade Policy Review 
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generated by the sale of assets belonging to these companies amounted to around RD$5.9 million 
(some US$170,000). 
228. Some companies belonging to the  Corporación Dominicana de Empresas Estatales – 
CORDE (Dominican State-Owned Enterprises Corporation), which groups together State-owned 
manufacturing companies, were left out of the reform process or the process was not completed.  The 
CREP decided that the capitalization or leasing of these companies was not attractive because they 
lacked assets and had no commercial operations so they  were declared to be a public service and were 
dissolved.  The State still owns the companies s upplying water and sanitation to the cities of 
Santa Domingo and Santiago, as well as the Reserve  Bank, the Agricultural Bank and the Dominican 
Radio and Television Company. 
229. During the period under review, the Dominican  Government granted concessions to the 
private sector for the operation of certain ports and airports (see Chapter IV(5)(v)). 
(v) Government procurement 
230. The Dominican Republic has not signed the WTO Plurilateral Agreement on Government 
Procurement and does not take part as an obser ver in the competent Committee, although it has 
commitments in this respect under preferential agre ements.  In 2006, the Dominican Republic adopted 
a new law which, with a few exceptions, cove rs government procurement of goods services and 
public works, and concessions granted by the State.   The new legal framework does not discriminate 
between products/services or suppliers accordi ng to nationality, but it makes participation by 
foreigners in government procurem ent of public works subject to partnership with local suppliers.  
There are no official statistics on the contracts awarded by means of the various procurement 
methods, although some data indicate that prior to enforcement of the current legislation the vast 
majority of contracts were awarded directly. 
231. For the purposes of this Review, the authoriti es have indicated that accession to the WTO 
Plurilateral Agreement on Government  Procurement is not currently on the agenda and that they 
would like to have some statisti cal information to allow them to assess the Agreement's advantages 
for developing countries. 
232. According to data provided by the authorities,  procurement by the Dominican public sector, 
including the Central Government and the decen tralized and autonomous sector, amounted to 
RD$28.202 billion (around US$1,603 million) in 2002.  In  2006, the latest year for which final figures 
are available, government procurement tota lled RD$86.496 billion (some US$2,597 million), 
corresponding to 7.3 per cent of the GDP, of which 55 per cent was by the Central Government and 
45 per cent by the decentralized and autonomous sector.  Provisional figures for 2007 indicate that procurement by the Central Government amounted  to RD$57.169 billion (a round US$1,724 million), 
representing 53 per cent for goods and services, 4.5 per cent for machinery and equipment, and 42.8 per cent for construction.  There are no figures for the autonomous and decentralized sector 
for 2007. 
233. The Ministry of the Presidency, which has a la rge number of commissions and bodies, is the 
largest body in terms of volume of purchasing, accounting for 31 per cent of procurement and 
contracting by the Central Government in 20 06.  Other large purchasers are the SESPAS, the 
Ministries of Education, Finance and the Armed Forces. 
234. A joint study by the World Ba nk and the Inter-American Development Bank (IDB) prior to 
introduction of the relevant new Dominican legisl ation underlined the institutional and regulatory 
weaknesses in the administration of government proc urement in the Dominican Republic, particularly The Dominican Republic WT/TPR/S/207 
 Page 67 
 
 
the dispersion and obsolescence of th e rules, the broad margin of discr etion, the lack of transparency 
and the absence of any monitoring mechanism.  C onsequently, it recommended the adoption of a new 
legal framework for government procurement to promote transparency, efficiency and quality, 
consistent with best international practice, toge ther with the establishment of a regulatory unit for 
government procurement within the Ministry of Finance.130 
235. In August 2006, the Dominican Republic enacted Law No. 340-06 on government 
procurement of goods, public works and concessi ons, which was amended by Law No. 449-06 of 
6 December 2006.  The Regulations on the Purchasi ng and Contracting of Goods, Services and Public 
Works (No. 490-07) was published in August 2007.131  Law No. 322 of 1981 on the participation of 
foreign companies in public works for the Gove rnment was incorporated in Law No. 340-06 (see 
below).  These instruments are available to the pub lic on the Internet site of the Ministry of 
Finance.132 
236. Law No. 340-06 introduces the principles of e fficiency, free competition, economy, equity 
and transparency, and lays down rules on govern ment procurement of goods, works and services and 
the granting of concessions by the State.  Its sco pe includes all public-sector entities, namely, the 
Central Government, decentralized and autonomous institutions (both financ ial and non-financial), 
social security entities, municipal and national dist rict authorities, State-owned enterprises and any 
entity involved in procurement using government funds. 
237. The Law provides for several methods of awarding contracts.  Public bidding, which involves 
a mandatory public notice to an indefinite number of interested parties and may be either national or 
international.  Public bidding is  international in the following cases:   (i) when the procurement is 
covered by an international treaty;  (ii) when Do minican suppliers do not have sufficient capacity to 
provide the goods or services or carry out the works required;  or (iii) when a prior public bidding 
procedure at the national level has not yielded any results.133 
238. Selective bidding consists of an invitation to bid sent to a minimum of five suppliers when 
there can only be a limited number of bidders because of the special nature of the goods or services to 
be purchased or the work to be carried out.  Ot her methods include drawing lots (random award of 
contracts for works that are the subject of predeter mined designs or costs), price comparison (ordinary 
goods, small-scale services and minor works) and reve rse auction (procurement of ordinary goods 
using electronic means in which the contract goes to the lowest bid).134  There is also a streamlined 
procedure for small purchases.  For public works co ncessions, national or intern ational bidding is the 
only method of awarding the contract. 
239. The Law lays down thresholds in order to de termine which method must be applied for a 
particular contract and these are updated annually.135  In 2008, the thresholds applicable were the 
Dominican peso equivalent of the following amounts: 
                                                      
130 World Bank, IDB and Government of the Dominican Republic (2005). 
131 These instruments repeal Law No. 295 of 30 June 1966 and its implementing regulations, as well as 
Law No. 27-01 of 2 February 2001. 
132 Information from the Ministry of Finance on lin e.  See:  http://www.hacienda.gov.do/legislacion/ 
leyes.html. 
133 Law No. 449-06, Article 7. 
134 Idem . 
135 Ibid., Article 8. WT/TPR/S/207 Trade Policy Review 
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Table III.5 
Thresholds for determining the method of awarding contracts, 2008 
(US$, exchange rate RD$33.90 = US$1.00, January 2008) 
 Works Goods Services 
Public bidding 4,348,967 72,028 72,028 
Selective bidding 1,812,065 57,986 57,986 
Lottery 1,087,227 n.a. n.a. 
Price comparison 289,931 10,872 10,872 
Small purchases n.a. 1,450 1,450 
n.a. not applicable 
Source : Resolution of the Ministry of Finance's Directorate-Ge neral of Government Procurement, of 16 January 2008. 
240. The following are not covered by the Law:  cont racts related to loan agreements with other 
States or international organizations, government  loan transactions, government employment 
contracts, petty cash purchases and contracts betwee n government entities.  The following are also 
considered to be exceptions:  contracts that involve national security or emergency, purchases 
intended to promote the development of MSMEs, a nd buying advertising using social communication 
media, inter alia .136 
241. The authorities have indicated that there are no statistics on the number or value of 
procurement contracts by each method.  Other data, pr ior to enforcement of the new law, indicate that 
84 per cent of contracts were awarded directly.137 
242. The Law establishes as a criterion regulatory centralization but operational decentralization 
and designates the Dirección General de Contrataciones Públicas  – DGCP (Directorate-General of 
Government Procurement) in the Ministry of  Finance as the governing body for government 
procurement with responsibility for ensuring co mpliance with the Law, recommending relevant 
policies, establishing the methodology for annual pr ocurement plans and a catalogue of commonly 
used goods and services, inter alia . 
243. For public bidding procedures, the notice must be published on the Internet sites of the DGCP 
and the procuring entity and in at least two national newspapers for a period of two days.  The lapse of 
time between the publication and the date for opening th e bids must not be less than 30 working days 
as of the date following the last publication.  In  the case of international bidding, the notices must 
appear in foreign publications.  The invitation to take part in selective bidding must be published on 
the Internet sites of the procuring entity and the DGCP 20 working days prior to the date fixed for 
opening the bids.138  The authorities have stated that the time limits set by law for public and selective 
bidding procedures are fully applied in practice. 
244. Law No. 340-06 and its implementing regulations provide for the creation of a Register of 
Government Suppliers administered by the DGCP to  replace the registers previously kept by each 
entity.  Those interested in bidding must be listed on  the Register or submit a copy of their application 
for registration to the DGCP when they make a bid.   The requirements for registration apply to all 
suppliers taking part in public or selective bi dding, price comparison or lottery procedures.139  
                                                      
136 Ibid., Article 4. 
137 IDB (2007). 
138 Regulation No. 490-07, Article 44. 
139 Ibid., Article 11. The Dominican Republic WT/TPR/S/207 
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Applications for registration may be made at any time and the DGCP must reply within ten working 
days.140  The registration must be published on the DGCP's Internet site. 
245. Bids are opened in public and the names of the bidders, their guarantees and bids are read out.  
The contract is awarded to the bidder whose bid me ets the requirements previously laid down in the 
specifications and is judged the most appropriate in  the interests of the entity and the country, taking 
into account the cost, the quality and the suitability of the bidder.  The award of the contract is 
notified to all bidders within five working days.  The procuring entity must provide bidders who so 
request with information in writing concerning the evaluation of their bid.  Decisions on awarding 
contracts are published on the DGCP's Internet site. 
246. Law No. 340-06 does not provide for preference margins for bids by Dominican suppliers and 
does not discriminate among products/services or su ppliers according to nationality.  Nevertheless, 
the requirement laid down in Law No. 322 of 1981 has been incorporated requiring foreign suppliers 
wishing to bid for public works to do so in partne rship with a Dominican company or a company with 
mixed Dominican and foreign capital.  The foreign supplier's share in such a partnership may not 
exceed 50 per cent, but may be raised to 70 per cent depending on the avai lability of Dominican 
capital.  Moreover, 50 per cent of the work's manage rial posts must be held by Dominican citizens. 
247. Pursuant to Law No. 340-06, a supplier may make  a complaint or objection to the procuring 
entity at any stage of the procurement process and the latter must take a decision within not more than 
15 working days.  Appeals against decisions by the procuring entity may be lodged with the DGCP within ten days.  The DGCP is empowered to take  preventive measures, including suspension of the 
contract procedure or execution of the contract.  Di sputes that are not resolved by these means may be 
put before the Administrative Court or, if the parti es so decide may go to arbitration.  The authorities 
have indicated that since the Law came into force, three objections have been resolved by the DGCP, 
and in one instance this resulted in cancellation of the award of the contract. 
248. The Dominican Republic has commitments on government procurement under its free trade 
agreements.  In the case of the DR-CAFTA, United States suppliers are given national treatment for 
the procurement of goods and services by 22 entities of the Central Government, 15 decentralized or 
autonomous institutions and provincial governments.   As far as construction services are concerned 
the requirement on partnership with Dominican supp liers remains in force.  This requirement will 
gradually become more flexible with a view to its  possible elimination, subject to agreement, after 
15 years.  The Dominican Republic excluded pr ogrammes for MSMEs and social development 
programmes. 
249. Government procurement between the Dominican  Republic and Central American countries 
is covered by the rules laid down in an annex to  the DR-CAFTA, which reflects what previously 
appeared in the Agreement with the CACM.  C onstruction and public works concessions are excluded 
and there are bilateral lists of entities not  covered, with reciprocal exclusions. 
(vi) Protection of intellectual property 
250. During the period under review, the Dominican Re public adopted new legislation in order to 
improve the protection of intellectual property rights  and strengthen enforcement, partly as a result of 
its accession to the DR-CAFTA.  In  some cases, Dominican legislation goes beyond the commitments 
in the TRIPS Agreement, for example, in the case of copyright and industrial property. 
                                                     
 
140 Ibid., Article 8. WT/TPR/S/207 Trade Policy Review 
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251. The provisions in the WTO Agreement on Trade-Related Aspects of Intellectual Property 
Rights (TRIPS) have been incorporated in Domi nican legislation through the Industrial Property 
Law (No. 20-00 of May 2000) and its implementing regulations (No. 99-01 of June 2001), as well as 
the Copyright Law (No. 65-00 of August 2001) a nd its implementing regulations (No. 362-01 of 
March 2001).  These instruments ha ve been notified to the WTO.141  The Dominican Republic has 
replied to the checklist of issues on enforcement.142  The legislation, together with the replies on 
enforcement issues, were considered by  the TRIPS Council in August 2001.  The 
Dominican Republic has notified that its contact point  for intellectual property rights matters is the 
SEIC.143 
252. During the period under review, the Dominica n Republic amended its intellectual property 
legislation in order to bring it up to date and adap t it to its international commitments, mainly those 
under the DR-CAFTA.  These changes were  made by means of Law No. 424-06 of 
20 November 2006, which in turn was amende d by Law No. 93-06 of 22 December 2006 and by 
Law No. 2-07 of 8 January 2007.  On 6 December 2006, the Law on the Protection of Plant Breeders' Rights (No. 450-06) was enacted.  Notification of these laws to the WTO is still pending. 
253. Among the changes introduced by Law No. 424-06  in the industrial property sphere are the 
extension of the term of a patent when a delay is a ttributable to the authority, a term of protection for 
information submitted for approval of new pharmaceuticals (five years) and agricultural chemicals 
(ten years), the introduction of olfactory and so und marks for odours and sounds and new provisions 
on border measures, including an obligation on the DGA to act automatically to withhold the 
clearance of counterfeit goods. 
254. In the area of copyright, the main changes include the extension of the term of rights from 
50 to 70 years, clarification of the rights of pe rformers and producers of phonograms, and reinforced 
civil, criminal and administrative proceedings agai nst infringements of copyright, including giving 
competent judges the power to seize infringing goods  and destroy the equipment used to manufacture 
them.  The new Law also includes provisions on prohibitions relating to technological measures, 
information on management of rights and codi fied programme-carrying signals transmitted by 
satellite.  In this respect, Law No. 424-06 goes be yond the obligations in the TRIPS Agreement. 
255. The Dominican Republic is a member of the World Intellectual Property Organization 
(WIPO) and has signed several WIPO -administered intellectual property rights treaties, most of which 
were signed during the period under review (Table III. 6).  The Dominican Republic is not party to the 
following agreements:  the Patent Law Treaty, th e Hague Agreement Concerning the International 
Registration of Industrial Designs, the Madrid Ag reement Concerning the International Registration 
of Marks and the Lisbon Agreement for the Pr otection of Appellations of Origin and their 
International Registration, inter alia . 
256. The Oficina Nacional de la Propiedad Industrial  – ONAPI (National Industrial Property 
Office), within the SEIC, is responsible for granti ng and registering rights relating to patents, utility 
models, industrial designs and distinctive signs (inc luding trademarks and geographical indications).  
The Oficina Nacional de Derecho de Autor  – ONDA (National Copyright Office), belonging to the 
Ministry of Culture, is responsible for keeping the National Copyright Register for all protected works 
pursuant to the Copyright Law and amendments ther eto.  The SEA's Office for the Registration of 
                                                     
 
141 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. 
142 WTO document IP/N/6/DOM/1 of 21 June 2001. 
143 WTO document IP/N/3/Rev.9 of 8 November 2005. The Dominican Republic WT/TPR/S/207 
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Plant Varieties and Protection of Breeders' Rights, set up in 2006, is responsible for granting plant 
breeders' rights and for keeping the National Register of Varieties. 
Table III.6 
Participation by the Dominican Republic in WIPO-administered international treaties 
Agreement, convention or treaty (most recent act in which the Dominican Republic 
participates) Date of entry into force for the 
Dominican Republic 
Paris Convention for the Protection of I ndustrial Property (Stockholm) 11 July 1890 
Madrid Agreement for the Repression of False or Deceptive Indications of Source on Goods 6 April 1951 
Rome Convention for the Protection of Performe rs, Producers of Phonograms and Broadcasting 
Organizations 27 January 1987 
Berne Convention for the Protection of Literary  and Artistic Works (Paris) 24 December 1997 
Convention Establishing the World Intell ectual Property Organization 27 June 2000 
WIPO Performances and Phonograms Treaty 10 January 2006 
WIPO Copyright Treaty 10 January 2006 
Patent Cooperation Treaty 28 May 2007 
Convention for the Protection of New Vari eties of Plants (1978 Act) 16 June 2007 
Budapest Treaty on the International Recogniti on of the Deposit of Microorganisms for the 
Purposes of Patent Procedure 3 July 2007 
Trademark Law Treaty Signed on 28 October 1994 
Singapore Treaty on the Law of Trademarks  Signed on 28 March 2006 
Source : Information from WIPO on line.  See:  http://www.wipo.int/tr eaties/en/general/. 
257. The Dominican Republic's legislation covers a ll the principal elements contained in the 
TRIPS Agreement.  Table III.7 provides an overview of the protection of intellectual property rights 
in the Dominican Republic. 
258. The Dominican Republic allows parallel imports in connection with patents and trademarks.  
Pursuant to Law No. 20-00, a patent does not give the right to prevent the sale, rental, use, usufruct, importation or any other mode of marketing of a pr oduct protected by the patent or obtained by the 
patented process once that product has been introduced  into the commerce of any country, with the 
consent of the owner or a licensee or in any other lawful way.
144  Likewise, registration of a trademark 
does not give its owner the right to prevent third pa rties from using the trademark on lawfully marked 
products which the owner or other person with the owner's consent or  with economic ties to the owner 
of the trademark has introduced in to trade in the Dominican Republic  or abroad, provided that the 
products have not been altered.145  Parallel imports in relation to copyright are not allowed. 
259. No compulsory licences have been granted under Law No. 20-00. 
260. Both the Industrial Property Law and the Copy right Law, as well as the Law on the Protection 
of Plant Breeders' Rights, contain provisions on the enforcement of intellectual property rights that 
include administrative, judicial and criminal pro ceedings, as well as monetary sanctions and terms of 
imprisonment.  The Industrial Property Law (Article  174) and the Copyright Law (Article 185) also 
provide for the adoption of border measures agains t goods deemed to be counterfeit or liable to 
mislead and goods that infringe copyright or related rights, respectively. 
                                                      
144 Article 3 of Law No. 424-06, which amends Article 30 of Law No. 20-00. 
145 Law No. 20-00, Article 88. WT/TPR/S/207 Trade Policy Review 
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Table III.7 
Overview of the protection of intellectual prop erty rights in the Dominican Republic, 2008 
Subject Scope Term Special limitations and exclusions 
Copyright and 
related rights Original 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 television 
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. It is not considered that there has been 
infringement if the works are not used to obtain direct financial benefit or are used for 
educational or research purposes.  No 
authorization is required, inter alia , 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 reproduction of a single 
copy of the work for personal use and without 
gainful intent. 
The owner retains the right to prohibit the 
reproduction, alteration or distribution of the 
work covered by the copyright.
 
Patents 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. 
Compulsory licences may be granted if, 3 years 
after the granting of the patent or 4 years after its filing, the patent has not been worked or its 
exploitation has been suspended for a period of 
more than one year without justification. 
Licences may be granted for reasons of public 
interest in cases involving an emergency or 
national security. 
Utility models New forms or arrangements of 
elements of any object, instrument or 
mechanism that enable it to function better or give it a technical advantage.  
They are protected through patents. 15 years as of the date 
of filing the 
application. Chemical, metallurgical procedures, substances 
or compositions or those of any other type, and 
materials excluded from patent protection. 
Industrial designs Industrial designs that are new and 
susceptible of inco rporation in an 
industrial or handmade product. 5 years as of the date 
of filing, renewable for 
a further two 5-year 
periods. The following are excluded:  designs whose 
aspect is dictated solely by technical 
considerations and do not embody any arbitrary 
contribution on the part of the designer, elements of designs whose reproduction is 
necessary to enable the product incorporating 
the design to be assemb led or connected to 
another product of which it constitutes part.  
Designs which incorporate a trademark or 
require the use of a work protected in the Dominican Republic and the use of distinctive signs of public interest such as the shield, flag 
and other national em blems may not be 
protected either. 
   Table III.7 (cont'd) The Dominican Republic WT/TPR/S/207 
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Subject Scope Term Special limitations and exclusions 
Trademarks Any sign or combination of signs 
susceptible of graphic representation 
and capable of distinguishing the 
products or services of a company;  including collective marks, 
certification marks, trade names, 
labels and emblems. 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:  generic names, signs liable to 
mislead as to the characteristics of products or 
services, signs that reproduce or imitate a registered appellation of origin or include the 
name of a protected plant variety, distinctive 
signs that are well-known in the country and signs that are identical or similar to trademarks 
or trade names registered by third persons. 
Geographical indications 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 misleadingly similar to a trademark 
in the process of registration or a pre-existing trademark. 
A geographical indication may not be used in 
trade if it is false or mi sleading as to the origin 
of the product or service in question, 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) 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. Indefinitely.  Test 
data:  pharmaceuticals (5 years) and agricultural chemicals 
(10 years) Information that is general known or easily 
accessible in circles which normally deal with such information. 
New plant 
varieties 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. 
261. If there is an alleged infringement of indus trial property rights, the courts may order 
preventive measures, subject to a re quest by the interested party and if there is sufficient evidence of 
the offence or its likely occurren ce.  In the case of trademarks, the owner may request the customs 
authority to suspend clearance of the goods that are allegedly counterfeit or misleadingly similar 
provided that there is sufficient evidence.  The DGA may act ex officio and withhold clearance when 
it has reason to suspect that the goods infringe a trademark.146  The ONAPI plays no role in 
enforcement;  this is the responsibility of the Deputy Attorney-General for Intellectual Property 
Offences and the public prosecutors in the m unicipal districts of the Dominican Republic. 
262. With regard to infringement of copyright an d related rights, the owner may request the 
customs authority or the competent public prosecu tor's office to suspend clearance of the allegedly 
infringing goods, providing satisfactory informat ion and evidence.  The authorities may also 
automatically suspend clearance of the goods.  The competent court may order the destruction of 
goods subject to border measures.147  Together with the Office of the Attorney-General of the 
Republic, the ONDA takes part in action to ensure en forcement of copyright a nd related rights;  it has 
                                                      
146 Article 30 of Law No. 424-06 amending Article 174 of Law No. 20-00. 
147 Article 61 of Law No. 424-06 amending Article 185 of Law No. 65-00. WT/TPR/S/207 Trade Policy Review 
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the authority to carry out inspections, impose admi nistrative penalties and order preventive measures, 
including cessation of the illegal activity. 
263. According to data from the Intellectual Property Department of the DGA, during the period 
2002-2007 the majority of industrial property rights offences concerned the import of goods, such as 
clothing and accessories, bearing counterfeit internati onal trademarks.  According to information from 
the Office of the Attorney-General of the Republic, at the national level, the most common offences 
concern counterfeit tobacco, clothing and alcoholic beverages. 
264. As far as copyright is concerned, piracy of phonograms, videos and computer programmes 
still occurs frequently, and the authorities have st epped up the seizure and destruction of infringing 
goods.  According to data from the ONDA,  745,336 illegal units were destroyed148 during the period 
2000-2004.   
                                                     
 
148 Viewed at:  http://www.onda.gov.do/estadísticas.htm.