RESTRICTED  WORLD  TRADE  
ORGANIZATION  WT/TPR/S/190/DMA 
1 October 2007  
 
(07-4028) 
Trade Policy Review Body  
   
 
  
 
TRADE POLICY REVIEW 
 
Report by the Secretariat 
 
DOMINICA 
 
  
 
This report, prepared for the second Trad e Policy Review of Dominica, has been 
drawn up by the WTO Secretariat on its own responsibility.  The Secretariat has, 
as required by the Agreement establishing the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), sought clarification from Dominica on its trade policies and 
practices. 
 
Any technical questions arising from this report may be addressed to 
Mr. Angelo Silvy (tel. 022 739 5249), and Ms. Katie Waters (tel. 022 739 5067). 
 
Document WT/TPR/G/190/DMA contains the policy statement submitted by 
Dominica. 
 
 
Note: This report is subject to restricted circ ulation and press embargo until the end of the first 
 session of the meeting of the Trade Policy Review Body on Dominica. Dominica WT/TPR/S/190/DMA 
 Page iii 
 
 
CONTENTS 
 
 Page 
I. ECONOMIC ENVIRONMENT 1 
 (1) S TRUCTURE OF THE ECONOMY , OUTPUT , AND EMPLOYMENT  1 
 (2) F ISCAL POLICY  3 
 (3) M ONETARY AND EXCHANGE RATE POLICY  4 
 (4) B ALANCE OF PAYMENTS , TRADE AND INVESTMENT FLOWS  5 
 (5) O UTLOOK  7 
II. TRADE AND INVESTMENT POLICY FRAMEWORK 7 
 (1) G ENERAL CONSTITUTIONAL AND LEGAL FRAMEWORK  7 
 (2) T RADE POLICY FORMULATION AND IMPLEMENTATION  8 
 (3) F OREIGN INVESTMENT REGIME  9 
 (4) I NTERNATIONAL RELATIONS  11 
 (i) World Trade Organization 11 
 (ii) Preferential agreements and arrangements 12 
III. TRADE POLICIES AND PRACTICES BY MEASURE 13 
 (1) M EASURES DIRECTLY AFFECTING IMPORTS  13 
 (i) Customs procedures, documentation, and registration 13 
 (ii) Customs valuation 14 
 (iii) Rules of origin 14  (iv) Tariffs, and other charges on imports 15 
 (v) Other levies and charges 18 
 (vi) Import prohibitions, restrictions, and licensing 20  (vii) Contingency measures 22 
 (viii) Technical regulations and standards 23 
 (ix) Sanitary and phytosanitary measures 26 
 (2) M
EASURES DIRECTLY AFFECTING EXPORTS  27 
 (i) Documentation, export taxes, and restrictions 27 
 (ii) Export subsidies, financing, support, and promotion 27 
 (3) M EASURES AFFECTING PRODUCTION AND TRADE  28 
 (i) Legal framework for business and taxation 28 
 (ii) Incentives and assistance 30  (iii) Competition policy and regulatory issues 33 
 (iv) Government procurement 34 
 (v) Intellectual property rights 35 
IV. TRADE POLICIES BY SECTOR 38 
 (1) A
GRICULTURE  38 
 (2) M ANUFACTURING  39 
 (3) S ERVICES  40 
 (i) Main features 40  (ii) Telecommunications 40 WT/TPR/S/190/DMA Trade Policy Review 
Page iv 
 
 
 Page 
 (4) F INANCIAL SERVICES  42 
 (i) Onshore financial services 42 
 (ii) Offshore financial services 44  (iii) Air transport 45 
 (iv) Maritime transport 46 
 (v) Tourism 47  (vi) Professional services 49 
 (vii) Other offshore services 50 
REFERENCES   51 
APPENDIX TABLES  53 
 
TABLES 
 
I. ECONOMIC ENVIRONMENT 
 I.1 Basic macroeconomic indicators, 2000-06       1 
I.2 Balance of payments, 2001-06        5 
I.3 Investment flows, 2001-05         6  
II. TRADE AND INVESTMENT POLICY FRAMEWORK 
 II.1 Ministries and agencies d ealing with trade       8 
II.2 Notifications to the WTO, 2001-07        11 
 III. TRADE POLICIES AND PRACTICES BY MEASURE 
 
III.1 Structure of the tariff, 2006        15 III.2 Summary analysis of the MFN tariff, 2006       16 
III.3 Other taxes and levies on imports        19 
III.4 Goods subject to prohibitions, licensing, or other restrictions, 2007    21  
III.5 Goods under CARICOM Article 164 exceptions      23 
III.6 Credits and trade under the Fiscal Incentives Act No. 42 of 1974    31 III.7 Dominica's membership in international agreements on intellectual property rights   36 
 
IV. TRADE POLICIES BY SECTOR  
IV.1 Telecommunications statistics, 2002-06       41 
 
APPENDIX TABLES 
 
I. ECONOMIC ENVIRONMENT 
 
AI.1 Merchandise exports and re-exports by group of products, 2000-06    55 
AI.2 Merchandise imports by group of products, 2000-06      56 AI.3 Merchandise exports and re-exports by trading partner, 2000-06    57 
AI.4 Merchandise imports by trading partner, 2000-06      58 
 
 Dominica WT/TPR/S/190/DMA 
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I. ECONOMIC ENVIRONMENT 
(1) STRUCTURE OF THE ECONOMY , OUTPUT , AND EMPLOYMENT  
1. Services accounted for 66.2% of GDP in Domini ca in 2005, followed by agriculture (18.5%), 
manufacturing (8.1%), construction (8.4%), wate r and electricity for (6.4%), and mining and 
quarrying (0.9%).1  No employment or wage change statistics are available. 
2. Although the contribution of agriculture to GDP declined from 30% in the mid 1980s to 
18.5% in 2005, its share of GDP continues to be higher than in other OECS countries.  Moreover, 
agriculture still employs around one third of the labour  force and is an important earner of foreign 
exchange.  The banana industry has been declini ng since the 1990s for a number of reasons, among 
which are the erosion of preferential access to  its main export market, the United Kingdom, the 
changing demography of the farming community, high production costs, and low productivity.2  
Agricultural production includes dasheens, grapefruit, plantains, coconuts, coco a beans, coffee, sweet 
potatoes, mangoes, oranges, and limes. 
3. Dominica's growth performance continues to be  below the OECS average.  During the period 
under review, Dominica's economy overcame a major ec onomic crisis.  Output fell by some 10% in 
2001-02;  growth resumed in 2004 and 2005.  Gross capital formation declined sharply during the 
crisis but it has been recovering since 2003.  Pr ivate consumption held its contribution to GDP 
relatively stable during the period.  The shares of  both imports and exports fell as a consequence of 
the crisis, but, while the share of imports recovered with resumed economic growth, the share of exports continued to decline (Table I.1). 
Table I.1 
Basic macroeconomic indicators, 2000-06 
(EC$ and per cent) 
 2000 2001 2002 2003 2004 2005 2006
Real sector 
Nominal GDP at market prices (EC$ million) 732.2 718.6 688.1 709.7 770.1 810.7 860.0
GDP per capita, at market prices (EC$) 10,236 10,075 9,854 10,164 10,936 11,479 12,039
GDP per capita, at basic prices (EC$) .. .. 8,238 8,323 8,683 9,015 9,562
Real GDP at market prices (EC$ million) 537.5 517.4 496.6 507.4 539.3 557.3 583.0
Real GDP at basic prices (EC$ million) 456.4 437.4 415.2 415.6 428.2 442.7 463.0
GDP growth (real, at market prices) 0.6 -3.8 -4.0 2.2 6.3 3.3 4.6
GDP growth (real, at basic prices) 1.3 -4.2 -7.8 0.1 3.0 3.4 3.0
GDP components (% of GDP) 
Total consumption (% of GDP) 86.2 92.8 92.2 86.5 88.1 94.8 90.0
   Private consumption (% of GDP) 63.7 70.5 70.8 67.4 70.0 76.7 71.2
   Government consumption (% of GDP) 22.5 22.3 21.4 19.0 18.1 18.1 18.7
Gross capital formation  (% of GDP) 28.1 23.9 20.7 25.0 27.3 28.5 28.8
Transport equipment  (% of GDP) 5.0 3.1 3.8 3.4 3.5 5.2 4.5
Other equipment  (% of GDP) 7.0 4.4 4.1 7.1 8.6 7.8 8.0
Construction (% of GDP) 16.0 16.4 12.8 1.9 15.3 15.5 16.2
Exports of goods and services  (% of GDP) 53.3 50.5 48.4 45.0 45.6 41.9 44.2
  Goods 20.2 16.7 17.1 15.6 14.9 14.0 13.5
  Non-factor services 33.1 33.8 31.3 29.4 30.7 27.9 30.7
Table I.1 (cont'd)
                                                      
1 The totals do not add to 100% beca use it is necessary to subtract th e financial interm ediation services 
indirectly measured (FISIM),  including total property income receivable by financial intermediaries minus their 
total interest payable (ECCB, (2006). 
2 IMF (2006). WT/TPR/S/190/DMA Trade Policy Review 
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 2000 2001 2002 2003 2004 2005 2006
Imports (% of GDP) 67.5 62.3 61.3 56.5 61.0 65.2 63.0
  Goods 48.1 43.5 40.2 39.9 44.8 48.5 46.2
  Non-factor services 19.4 18.8 21.1 16.6 16.2 16.7 16.8
Gross national savings (% of GDP) 6.0 5.2 3.1 9.0 6.6 1.8 ..
Foreign savings (% of GDP) 22.1 18.7 18.9 20.3 20.8 25.9 23.4
Consumer price index (period average) 0.9 1.6 0.2 1.5 2.4 1.7 2.6
Consumer price index (end of period) 0.9 1.6 0.4 2.8 0.8 2.7 1.6
Implicit gross value added deflator (end period) 0.7 2.0 -0.2 0.9 2.1 1.9 1.4
 General government finance (% of GDP)  
Current revenue 34.4 28.2 28.0 28.8 30.5 31.5 31.3
  of which, tax revenue 29.2 22.7 23.5 25.3 26.6 28.3 28.8
      of which taxes on international trade 14.3 11.9 12.4 13.0 13.7 13.9 7.7
      of which 
             Consumption tax 8.0 6.9 7.5 7.4 7.3 7.1 1.2
             Import duties 4.0 3.0 2.8 3.0 3.3 3.4 3.3
             Service charge on imports 0.9 0.9 0.8 1.2 1.5 1.5 1.5
Current expenditure 36.2 33.1 30.2 32.6 30.3 29.3 28.4
Current account balance -1.8 -5.0 -2.1 -3.8 0.2 2.2 2.9
Primary balance 0.6 -4.0 -0.7 1.8 3.9 5.8 10.3
Overall fiscal balance (% of GDP) -5.3 -9.6 -5.1 -4.4 -1.5 2.6 6.3
Total public debt  (% of GDP) 112.0 127.4 131.9 131.2 119.2 117.3 110.0
Money and interest rates 
Money supply, M1 (end of period) -13.0 1.4 16.4 1.2 3.1 28.6 -3.5
Broad money, M2 (end of period) 5.2 8.7 6.9 0.9 6.0 6.8 9.6
Prime lending rate (% per annum) 9.5-10.5 9.5-10.5 8.5-10.5 8.5-10 8.5-10 8.5-10 8.5-10
Other lending rates 7.5-20.8 7.5-20.8 7.5-20.8 5-20.8 7.5-20 7.5-18.2 7.5-18.2
Savings rate 4-5.5 4-5.5 3-5.5 3-5.5 3-4.25 3-4.25 3-4.25
 
.. Not available. 
 
Source : Information provided by the authorities;  and ECCB (2006a), (2006b) and (2007b). 
4. The IMF considers that the roots of the 2001-02 economic crisis lie to a large extent in the 
expansionary fiscal policies of the preceding decade.3  As output growth declined in the 1990s, the 
authorities sought to prop-up activity by increasing public  spending.  As a result, the primary balance 
of the Central Government turned strongly nega tive in the mid-1990s, and public debt increased 
substantially.  A build-up in debt payment arrears was aggravated by extern al events, such as the 
adverse effects of a severe drought on agriculture  and of the 11 September 2001 terrorist attacks on 
the emergent tourism sector. 
5. To face the crisis, Dominica adopted a comprehensive adjustment strategy in mid 2002, the 
Economic Stabilization and Adjust ment Programme, supported by an  IMF Stand-By Arrangement;  
Dominica also received assistance from countries in the Caribbean region and from the ECCB.  In the 
2003/04 Budget address, the Government introduced a two-pronged strategy.  The first step would 
reduce the fiscal gap and engender additional extern al financial support, followed by structural 
measures to reinvigorate growth and ensure fiscal sustainability.  The adjustment programme was 
supported by an IMF three-year Poverty Reductio n and Growth Facility Programme (PRGF).  A 
central government primary balance of 3% of GDP was established as the objective for budgetary 
policies.  To meet this goal, the adjustment effo rt concentrated initially on measures to strengthen 
revenue, including the introduction of a stabilization levy of 4% on payroll income and a 5% sales tax 
on telecommunication services, adjustments in fuel pri ces to reflect international oil prices and ensure 
                                                      
3 IMF (2006). Dominica WT/TPR/S/190/DMA 
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annual revenue from the consumpti on tax equivalent to 0.6% of GDP, broadening the coverage of 
license fees, and limiting discretionary duty and tax exemptions on imports.4 
6. Expenditure measures concentrated on reducing th e wage bill, mainly implemented through a 
temporary 5% reduction of government employees salaries.  As fiscal performance improved and the 
tax base expanded, resulting in higher-than-anticipated  revenue collection, the Government started to 
remove some of the measures.  Measures to rati onalize government employment were introduced, and 
the stabilization levy was removed in the course of  the 2004/05 budget.  In 2005/06, the Government 
removed the 5% salary cut. 
7. Economic growth has been around or above 3% since 2004.  In general, growth since the 
recovery started has been driven mainly by expans ion in the services, with strong growth in wholesale 
and retail trade, telecommunicati ons, and construction, which re ceived a boost from public sector 
projects.  Output in manufacturing increased but in agriculture it was affected by a decrease in banana 
production, partly a result of unfavourable weather.  Foreign savings have been increasingly important 
in the financing of investment during the period un der review;  foreign savings accounted for 23.4% 
of GDP in 2006, while gross capital formation was 28.8%;  the gap was financed mainly through the 
surplus in public finances. 
8. There are no up-to-date national statistics on employment.  The authorities note, however, 
that the results of a labour survey conducted in 2 005 are expected by the end of 2007.  A recent IMF 
study estimated informal activity at some 34.2% of GDP.5 
9. Dominica's GDP per capita was some US$4,450 in 2006.  GDP per capita in terms of 
purchasing power, as estimated by the IM F was US$6,764.3 in the same year.6  Net aid per capita in 
2005 was estimated by the World Bank at US$409, the highest among OECS-WTO Members.7 
(2) FISCAL POLICY  
10. Fiscal policy, which is under the responsibility of the Ministry of Finance, is the main 
macroeconomic instrument actively used by the Do minican authorities to affect output because, like 
all other OECS-WTO Members, Dominica has no i ndependent monetary and exchange rate policy 
(see section (3) below).  As a result, the national authorities may only resort to fiscal policy to act on 
the economy as the main income stabilizer and counter the effect of external shocks.  As in other OECS countries, and due to the traditional high dependency on taxes on foreign trade for revenue, 
fiscal policy has a strong link with trade policy.  Tariffs and other taxes on international trade 
represented some 44% of total govern ment revenue in 2005.  The main single source of indirect tax 
revenue is the consumption tax, fo llowed by tariffs and customs charg es.  After the introduction of the 
VAT, however, the contribution of foreign trade tax es declined, mainly due to replacement of the 
consumption tax on imports by the VAT. 
11. As a result of the adjustment strategy, fiscal accounts have improved substantially since 2003:  
the primary balance swung from an average deficit of 1-4% of GDP in 2001-02 to a surplus of 10.3% 
in 2006.  Both higher revenues and lower spendi ng contributed to the improvement.  Revenue 
measures, aimed at broadening the tax base and impr oving the efficiency of the tax system, and the 
economic recovery have helped to increase revenue, while there has been a policy of restraint with 
                                                     
 
4 Commonwealth of Dominica (2006b). 
5 Vuletin (2007). 
6 IMF online information.  Viewed at:  http://w ww.imf.org/external/pubs/ft/weo/2007/01/data/ 
weoselgr.aspx. 
7 World Bank (2007). WT/TPR/S/190/DMA Trade Policy Review 
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respect to expenditure, including a reduction of the wage bill, and of investment spending not funded 
by grants.  However, investment outlays have  increased.  The IMF considers that the FY2006/07 
budget, based on a primary surplus target of 3% of  GDP, is consistent with medium-term fiscal and 
debt sustainability;  however, the IMF has urged th e authorities to accelerate the pace of structural 
reforms, including in the electricity sector, and en couraged them to progress further with the debt 
restructuring process.8 
12. A value-added tax was introduced on 1 March 2006, after three years of preparation.  Four 
taxes were eliminated with the introduction of  the VAT:  the consumption tax, sales tax, 
hotel occupancy tax, and entertainment tax.  Ne w excise tax legislation has also been introduced 
(Chapter III(3)(i)). 
13. The system of fiscal incentives for investment and import duty concession result in 
considerable revenue forgone (Chapter III(3)(ii)).   Curtailing concessions and making them more 
transparent, would help strengthen the otherwise fragile fiscal situation, and would enhance the 
investment regime's predictability and accountability. 
14. By mid 2003 public debt had reached the equiva lent of 127% of GDP, with debt servicing 
requirements representing about 25% of current revenue  or 8% of GDP.  To address this problem, in 
April 2004, the Government launched an offer to ex change outstanding debt to the private sector and 
bilateral creditors for medium- to long-term bonds carrying a lower interest rate.  In late 2006, 
agreements had been reached with creditors holding over 70% of the debt eligible for restructuring.  
Improved fiscal performance and debt restructuring r esulted in a decline of public debt to 110% of 
GDP in late 2006 and a reduction in interest cash outlays of some 50%. 
(3) MONETARY AND EXCHANGE RATE POLICY  
15. Dominica is a member of the Eastern Caribbean Currency Union (ECCU).  Monetary and 
exchange rate policy is hence de termined by the Monetary Council of the Eastern Caribbean Central 
Bank (ECCB).  The ECCB has been responsible fo r monetary policy for the whole OECS area since 
1976, keeping the EC dollar pegged to the U.S. dolla r at a rate of EC$2.70/US$1.  Movements in the 
EC dollar real effective exchange rate are related largely to changes in the value of the U.S. dollar vis-
à-vis  other major currencies.  As a consequence, th e EC dollar depreciated in real effective terms 
during the period under review. 
16. Both narrow money (M1) and quasi money have  been expanding since the economy resumed 
growth.  The growth of M1 is mainly associated  with a strong expansion in demand deposits, while 
the more moderate increase in quasi money reflect s an expansion in savings by private sector 
businesses and individuals.9  Domestic credit has also been expanding, to both the private sector and 
central government.  The composition of credit by economic activity shows increases in outstanding loans for manufacturing, tourism, construction, a nd personal use, but decreases for agriculture and 
distribution.  Liquidity in the commercial banking  system remained high during 2005 and 2006 (the 
ratio of loans and advances to total deposits was 58% in 2005). 
17. Commercial bank interest rate s were unchanged during 2005 and 2006:  rates on savings 
deposits ranged from 3% to 4.25% and rates on time  deposits from 1% to 6%.  Prime lending rates 
remained within the 8.5-10% range. 
                                                     
 
8 IMF (2006). 
9 ECCB (2006a). Dominica WT/TPR/S/190/DMA 
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18. The increase in the consumer price index was moderate over 2000-04, in the 0-2.5% range, 
although it picked up some in 20 05 and 2006, reflecting mainly higher food and energy prices. 
(4) BALANCE OF PAYMENTS , TRADE AND INVESTMENT FLOWS  
19. Dominica posts a structural deficit in its exte rnal current account;  th is declined somewhat 
during the crisis but increased again as of 2004, as growth resumed (Table I.2).  The merchandise 
trade balance is structurally negative, with imports  almost four times as large as exports.  In recent 
years, the share of exports to GDP has contr acted, while the share of imports has increased 
substantially, and in 2006 they represented 46% of GDP. 
20. The net travel component of the balance of payments in 2006 was US$58 million, or some 
18% of GDP.  Net investment income is widely ne gative, mostly due to substantial external debt 
interest payments.  Net foreign investment in flows have been increasing since 2003, and capital 
transfers remain significant, reflecting remittances from Dominicans living abroad.  The overall balance-of-payments position improved in 2006, influe nced by an expansion in inflows on the capital 
and financial account, recording a surplus of 1.6% of GDP in 2006. 
Table I.2 
Balance of payments, 2001-06  
(US$ million) 
 2001 2002 2003 2004 2005 2006 
Current account -49.7 -48.0 -53.4 -59.4 -77.8 -74.4 
Goods and services -44.5 -33.7 -39.2 -42.8 -69.7 -60.6 
Goods -71.3 -59.4 -71.9 -84.2 -102.4 -104.1 
Merchandise -72.3 -60.4 -72.9 -85.7 -103.9 -105.6 
   Exports  43.4 42.0 39.7 41.0 41.6 41.1 
   Imports -115.7 -102.4 -112.6 -126.7 -145.5 -146.7 
Goods procured in ports by carriers 1.0 0.9 1.0 1.5 1.5 1.5 
Services 26.8 25.7 32.7 41.3 32.8 43.6 
Transportation -13.9 -13.0 -14.9 -15.7 -22.8 -23.5 
Travel 37.2 36.4 43.4 51.4 47.3 58.0 
Insurance services -2.1 -2.9 -2.4 -3.9 -4.3 -4.4 
Other business services 7.1 7.5 9.5 9.7 13.7 14.6 
Government services -1.6 -2.2 -2.9 -0.2 -1.1 -1.1 
Income -22.7 -27.9 -27.0 -33.3 -28.0 -31.1 
Compensation of employees 1.4 0.6 0.6 1.6 1.4 1.4 
Investment income -24.1 -28.5 -27.6 -34.9 -29.4 -32.4 
Current transfers 17.5 13.6 12.8 16.7 19.7 17.2 
General government 5.9 1.0 0.4 -1.6 0.3 -3.0 
Other sectors 11.6 12.6 12.4 18.4 19.6 20.2 
Capital and financial account 53.2 60.6 56.2 53.6 92.3 87.9 
Capital account 18.0 20.5 18.8 26.8 18.3 42.5 
Capital transfers 18.0 20.5 18.8 26.8 18.3 42.5 
Financial account 35.2 40.1 37.4 26.7 74.0 45.3 
Direct investment 14.7 20.1 31.5 26.2 32.6 32.7 
Portfolio investment -0.2 12.1 3.5 -2.5 3.8 0.0 
Other investments 20.7 7.9 2.4 3.0 37.6 12.6 
Public sector long term 22.4 13.3 10.2 10.7 4.2 -5.6 
Commercial banks -10.0 -24.0 -34.1 -28.5 8.8 -12.4 
Other assets -5.0 -2.8 7.5 -1.9 -13.3 -4.8 
Other liabilitiesa 13.3 21.4 18.9 22.7 37.6 35.4 
Overall balance 3.4 12.5 2.7 -5.9 -14.8 13.4 
Financing -3.4 -12.5 -2.7 5.9 14.8 -13.4 
Change in government foreign asse ts -1.6 1.7 -0.5 0.4 -7.6 0.4 
Change in imputed reserves -1.9 -14.3 -2.2 5.5 -6.9 -13.9 
Table I.2 (cont'd)WT/TPR/S/190/DMA Trade Policy Review 
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 2001 2002 2003 2004 2005 2006 
Memorandum       
Current account balance (% GDP) -18.7 -18.9 -20.3 -20.8 -25.9 -23.4
Real effective exchange rate 3.7 -6.7 -6.3 -7.0 -3.5 ..
Estimated visitor expenditure (EC$ million) 125.4 123.3 141.2 163.7 154.0 183.9
Net imputed international reserves (US$ million) 43.6 45.5 47.8 42.2 49.19 62.9
Outstanding external public debt (% of GDP) 68.2 82.1 87.5 81.6 79.8 ..
Debt service ratio (% of exports of goods and services) 36.8 16.2 13.0 14.1 8.7 ..
 
.. Not available.  a Includes errors and omissions. 
 
Source : WTO Secretariat, based on ECCB (2006a) and (2007), Annual Economic and Financial Review 2005 and 
 2006 . 
21. Most of Dominica's exports take place under reciprocal or non-reciprocal preferential 
conditions.  Reflecting the decline in banana exports, exports of goods as a whole decreased at an 
annual average rate of 1.1% between 2001 and 2006.   The share of agricultural exports in total 
Dominican exports decreased during the period under re view, mainly due to the continued decline in 
banana exports (Table AI.1).  Ma nufactured exports maintained thei r share, accounting for some 59% 
of total exports in 2006.  By individual products , Dominica's main exports in 2006 were soaps, 
bananas and toothpaste.  Almost two thirds of imports are manufactured goods (SITC definition), 
mainly machinery and transport equipment, semi-m anufactures, chemicals, and other consumer goods 
other than textiles and clothing.  Fuel imports have increased considerably since 2000 as a result of 
high world prices;  they represented 15.5% of total imports in 2006, up from with 9.6% in 2000 
(Table AI.2). 
22. The United Kingdom remains the main singl e destination for Dominica's exports 
(Table AI.3).  There has been a substantial in crease of exports from Dominica to other OECS and 
CARICOM countries in the last ten years.  In 2005, CARICOM accounted for almost 60% of 
Dominica’s total exports, of which some 25% w as directed to other OECS countries.  The 
United States is the main source of Dominica’s im ports followed by the CARICOM (Table AI.4).  
Imports from CARICOM countries and Asia gained market share during the period under review, 
while imports from Europe lost market share. 
23. Foreign direct investment in Dominica totalled EC$232.8 million (US$86 million) in 
2001-05, compared to US$100 million in the 1995-99 peri od.  Investment was particularly important 
in hotel and tourism, which accounted for some 44% of the total, followed by agri-business (24.5%), 
light manufacturing (20.2%, main investments were in aluminium recycling and soaps), and services 
(2.2%, mostly telecommunications and related services) (Table I.3). 
Table I.3 
Investment flows, 2001-05 
Total investment EC$ million Name Number of 
projects Jobs 
2001-05 2001 2002 2003 2004 2005 
Hotel and tourism 54 3,354 101.85 36.00 21.33 16.25 14.22 14.1 
Agri-business 22 449 56.95 5.61 7.53 3.72 6.90 33.2 
Light manufacturing 35  603 47.14 13.51 14.58 15.22 1.84 1.99 
Services 23 348 26.87 3.04 6.97 11.16 2.70 3.00 
Total 134 4,754 232.81 58.16 50.41 46.34 25.65 52.25 
 
Source : Information provided by the authorities. Dominica WT/TPR/S/190/DMA 
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(5) OUTLOOK  
24. Over the 2007-10 period, the Government is ta rgeting economic growth of some 3%, an 
inflation rate of some 2% per year, a primary fi scal balance of 3% of GD P, and an overall fiscal 
deficit (after grants) of between 1.0% and 1.6% of GDP.10  Growth is expected to benefit from a 
reduction in the debt burden,  although a tight fiscal policy may act as a brake to growth.  The 
Government considers that improving export perfo rmance is critical for growth, and increasing 
international competitiveness is a major challenge in which private investment may play a major role.  
The Government is aiming at a gradual reducti on of the external current account deficit, 
acknowledging that this will mean increasing relianc e on domestic savings to finance investment. 
25. The IMF is expecting growth of some 3% for both 2007 and 2008 and a CPI increase of 1.5% 
in each of these years.11 
II. TRADE AND INVESTMENT POLICY FRAMEWORK 
(1) GENERAL CONSTITUTIONAL AND LEGAL FRAMEWORK  
26. The Commonwealth of Dominica (Dominica) achieved independence from Great Britain on 
3 November 1978.  Although Domini ca is a republic, it remains part of the British Commonwealth of 
Nations.  Dominica's Head of State is an executiv e President.  Candidates for the post of President 
may be nominated jointly by the Prime Minister a nd Parliamentary Leader of the Opposition, and in 
such cases the nominee will be appoin ted to the position of President without further formalities.  
Where there is no consensus between  the Prime Minister and Leader of the Opposition, the President 
is elected on the basis of a simple majority by secret ballot cast by members of the House of 
Assembly (the House).  In either case, the Presi dent will serve for a once-renewable term of five 
years.  The President appoints as Prime Minister an elected member of the House who appears likely 
to command the support of the majority of the other elected members. 
27. Although executive authority is vested in the Pr esident, it is actually exercised on his behalf 
by the Prime Minister and the Cabinet of Ministers.  The Cabinet is appointed by the President acting on the advice of the Prime Minister, who has exclusiv e authority to determine the scope of ministerial 
portfolios and designations.  Ministers are appointed from either elected members or from among 
those appointed as Senators;  however, no more than three Senators may be appointed to ministerial 
portfolios.  The Prime Minister and Cabinet have exclusive authority for signing and concluding trade 
treaties and agreements. 
28. Dominica's legislature is unicameral.  The House of Assembly has 30 members comprising 
one elected representative from each of the 21 constitu encies, and nine Senators, five of which are 
appointed on the advice of the Prime Minister and fo ur on the advice of the leader of the opposition.  
There is also a Speaker of the House.  Althoug h the Constitution requires parliamentary elections 
every five years, they can occur sooner.  All 21 elected members are elected through universal adult 
suffrage, by simple majority.  Elections in  Dominica were last held on 5 May 2005. 
29. In the hierarchy of domestic legislation, the C onstitution is the supreme law and all other laws 
must conform to it, or they are void to the extent  of any inconsistencies.  The law-making process 
starts with the introduction of bills in Parliament .  Members of Parliament and Ministers have the 
right to introduce bills.  Most bills are produced at  the request of a Ministry.  After introduction in 
Parliament, a bill goes through several stages:  it is presented and published in a first reading, debated 
                                                     
 
10 Commonwealth of Dominica (2006b). 
11 IMF online information.  Viewed at:  http ://www.imf.org/external/country/DMA/index.htm. WT/TPR/S/190/DMA Trade Policy Review 
Page 8 
 
 
in a second reading, examined and amended by a co mmittee, presented by the Speaker of the House, 
and accepted or rejected in a third reading.  Bills  become law only after receiving the assent of the 
President and publication in the official Government Gazette .  This procedure applies to all laws, 
including trade and trade-related laws. 
30. International agreements that ha ve not been incorporated into  domestic law cannot be invoked 
before the courts and have no direct effect under Dominican law, except if the relevant legislation 
expressly states otherwise.  Private individuals may not invoke WTO provisions directly before national courts. 
31. The legal system is based on English common law.  The administration of justice is vested in 
the judicial branch of Government, which functions  independently from the legislature and executive.  
There are three local levels of judiciary, and the Eastern Caribbean Court of Appeal.  Local courts 
deal with minor civil and criminal cases.  The Supreme Court deals with the more serious cases;  it adjudicates both in criminal and civil cases and on interpretation of the Constitution.  The Eastern 
Caribbean Court of Appeal is the first Court of A ppeal.  It is a constitutionally entrenched itinerant 
court shared by the countries who form the Organisation of Eastern Caribbean States.  The London-
based Judicial Committee of the Privy Council is  the final court of appeal for Dominica. 
32. Dominica joined the rest of CARICOM in ina ugurating the Caribbean Court of Justice (CCJ) 
in 2005.  Based in Trinidad and Tobago, the c ourt is established by treaty among CARICOM states 
with an exclusive and original jurisdiction to d eal with interpretation of the revised Treaty of 
Chaguaramas, and an appellate jurisdiction for dealing with domestic legal matters.  Although 
Dominica is committed by treaty obligation to the orig inal jurisdiction of the court, its accession to the 
court's appellate jurisdiction will require an amendm ent of the country's constitution, since Dominica 
would be obligated to abolish appeals to the Privy Council.  While the Government of Dominica has expressed an interest in acceding to the court's appellate jurisdiction, the Privy Council remains 
Dominica's final court of appeal. 
(2) T
RADE POLICY FORMULATION AND IMPLEMENTATION  
33. The Ministry of Foreign Affairs Trade and Labour formulates and coordinates national and 
international trade policy, while the Ministry of Fi nance and Planning is responsible for tariff issues 
(Table II.1). 
Table II.1  
Ministries and agencies dealing with trade  
Government Ministry/Agency Area of responsibility 
Ministry of Foreign Affairs Trade and Labour All trade issues, WTO coordination, OECS, CARICOM affairs, FTAA;  and price 
controls 
Ministry of Finance and Planning Economic planning and monitoring, regulation of financial sector, fiscal policy, debt 
management, loans negotiations, coordination with ECCB for monetary policy, trade 
facilitation, tariffs and other customs dutie s, import controls, and customs valuation 
Ministry of Tourism, Industry and Private Sector 
Relations Tourism policy formulation and implementa tion;  industry policy implementation 
and formulation 
Customs and Excise Division Trade facilitation, implementation of borde r taxes and measures 
The Bureau of Standards Development and implementation of standards 
Ministry of Agriculture, Fisheries  and the 
Environment Agricultural policy formulation and implementation and research 
 
Source : Information provided by the authorities. Dominica WT/TPR/S/190/DMA 
 Page 9 
 
 
34. Since the mid 1990s, Dominica's trade policies ha ve been aimed at gradually establishing an 
open trading environment while ensuring that dome stic producers become more competitive in order 
to face the increased competition that characterizes trade liberalization.  During the period, Dominica 
moved away from the use of quantitative restri ctions and import licences, through substantial 
tariffication of items on the Import Negative List.  The main objective of Dominica's trade policies 
has been to maximize exports and export earnings to  improve the country's balance of trade position.  
Dominica has pursued this objective through prog rammes and measures seeking to expand market 
share for exports, such as competitiveness-impr oving and marketing-assistance and promotion 
programmes.  This policy has remained broadly unchanged since 2001. 
35. Dominica has also been committed to securing the best "development-oriented" agreement it 
can in international trade negotiations, includi ng the Economic Partnership Agreement with the 
European Communities and in the Doha Development Round.12  Dominica’s key negotiating 
objective has been to obtain access for exports wh ile attempting to reduce the potential negative 
impact of some obligations, by advocating the need  for special and differential treatment, given what 
it regards as the vulnerabilities of its economy.13 
36. Dominica regards participation in the WTO as criti cal, in light of concerns about preference 
erosion and its effects on banana expor ts and on agriculture more generally.14  D o m i n i c a ' s  
engagement in the Doha Round, in particular, is ther efore viewed as a priority.  To this end Dominica 
has sought to deepen cooperation with OECS-W TO Members in order to overcome significant 
constraints in financial and human resources related to trade policy formulation and implementation.  
As a result, Dominica coordinates a number of trade policy issues with other OECS and CARICOM 
member States.  This is also tr ue for investment issues, foreign affairs, services, and competition 
policy.  There is a high level of functional c ooperation on agriculture between Dominica and other 
OECS-WTO Members. 
37. The authorities noted that Dominica's point of emphasis has not been so much market access, 
which the country has in the main markets of th e U.S., EC, and Canada, but ensuring that the 
development dimension is put at the centre of bot h the WTO and EPA negotiations.  They also noted 
that in addition to differentiate d treatment of member states, the development dimension embodies the 
critical aspect of securing development assistance to address concerns of domestic production capacity in order to turn opportunities for market access into actual access, and to build or strengthen 
capacity.  The authorities consider that gaining mark et access will not help the development process if 
Dominica cannot overcome its supply side constraints. 
(3) F
OREIGN INVESTMENT REGIME  
38. With one exception, foreign investment in Domi nica is not subject to any restrictions, and 
foreign investors receive national treatment.  The only restriction is a requirement for non-national 
investors to obtain an Alien Landholding Licence in order to purchase property for residential and 
commercial purposes. 
39. Under the Alien Landholding Act No. 17 of 1995,  non-nationals are allowed to acquire and 
hold up to one acre of land for residential purposes, and up to three acres of land for trade or business 
purposes, without an Alien Landholding Licence, except in areas prescribed by the Minister, by 
                                                      
12 DAAS online information.  Viewed at:  http://www.da-academy.org/savarin_oecs.html. 
13 DAAS online information.  Viewed at:  http://www.da-academy.org/savarin_oecs.html. 
14 DAAS online information.  Viewed at:  http://www.da-academy.org/savarin_oecs.html. WT/TPR/S/190/DMA Trade Policy Review 
Page 10 
 
 
Order, and published in the Gazette .15  In addition to the licence requirement, the landholder must pay 
a tax equivalent to 10% of the market value of the land to the Government.  Foreign investors can receive exemption from the provisions of the Alien Landholding Act if:  they are party to an agreement with the Government for financing the de velopment of housing, indus try, tourism, forestry, 
fisheries, or agriculture;  they embark on an undertak ing that has been declared  an approved enterprise 
under the provisions of the Fiscal Incentives Act;  a nd if it is in the public interest to do so.  All 
licences are subject to the submission of a satisfact ory application to Cabinet and the payment of 
licence fees. 
40. Dominica's investment policy has not changed substantially in the last decade.  Foreign 
investment policy is the responsibility of the Mini stry of Tourism, Industry and Private Sector 
Relations and Invest Dominica Authority.  The Gove rnment's strategy for the past 20 plus years has 
been attracting foreign investors by offering various incentive schemes;  some of this policy is guided by agreements and arrangements with the OECS and CARICOM.
16  Dominica's legislation governing 
fiscal and other incentives is similar to incentive-related legislation in a number of other OECS states.  A number of conditions apply to foreign investors with respect to their bona fides, the source of 
financing, the number of foreign employees with respect to local employees, the goods to be 
produced, and the markets targeted, among others. 
41. Foreign investors may hold up to 100% of an investment.  There are no restrictions on the 
repatriation of dividends for tota lly foreign-owned firms;  a mixed (foreign-domestic) company, the 
repatriation of profits is allowed to the extent of  the foreign participation in the company.  Unless 
granted an exemption under the Fiscal Incentives Act, foreign investment profits are subject to a 30% 
tax rate for both individuals and companies. 
42. Incentive regimes for foreign investors are govern ed chiefly by Fiscal Incentives Act, No. 42 
of 1973 (as amended), Hotel Aids Act Cap 85, Vol. 4 of the Revised Laws of Dominica, the Income 
Tax Act, Cap 61, Vol. 1 of the Revised Laws, and Value Added Tax Act No. 7 of 2005 
(see Chapter III(3)(ii)).  Although the Government  places particular emphasis on tourism, 
manufacturing, agri-processing and information t echnology, investment in any other sector of 
economic activity is welcome and ma y be eligible for incentives if the proposed investment meets 
policy and legislative requirements.  Horizontal in centives for foreign investor s are also in place with 
respect to exemptions from foreign exchange re mittance limitations under the Foreign Exchange 
Control Act. 
43. Dominica has active bilateral investment tr eaties with Germany and the United Kingdom.
17  It 
has double taxation treaties with Canada, the Un ited Kingdom, the United States, and arrangements 
with other CARICOM countries to prevent double taxa tion of income earned by CARICOM nationals 
in Dominica.18 
                                                      
15 Invest Dominica online information.  Viewed at:  http://www.investdominica.dm/alienlandholding 
license.cfm. 
16 See for example Article 68 of the Revised Treaty of Chaguaramas 2001. 
17 CTRC online information.  Viewed at:  http://ctr c.sice.oas.org/investment/bitsbycountry/dom_e.asp# 
Dominica. 
18 Invest Dominica online information.  Viewed at:  http://www.investdominica.dm/taxation.cfm. Dominica WT/TPR/S/190/DMA 
 Page 11 
 
 
(4) INTERNATIONAL RELATIONS  
(i) World Trade Organization 
44. Prior to independence, on 3 November 1978, Dominica applied GATT de facto as a member 
of the metropolitan territory of the United Kingdom.  Dominica became a GATT contracting party on 
20 April 1993, under Article XXVI:5(c) with its righ ts and obligations under GATT retroactive to the 
date of independence.  Dominica is an original WTO Member and applies at least MFN treatment to all its trading partners. 
45. Dominica is well advanced in  the process of incorporating the results of the Uruguay Round 
into domestic legislation (see Chapter III).  U nder the GATS, Dominica made initial commitments on 
tourism, recreational, communication, and financia l services;  it presented an offer in the extended 
negotiations on telecommunications, but did not partic ipate in the extended negotiations on financial 
services (see Chapter IV).  Dominica submitted an initial conditional offer in the services negotiations 
in the DDA in March 2005
19;  it has not submitted a revised offer. 
46. Dominica is hindered in its notification effort s by significant human resource limitations in 
the area of trade policy implementation. However, it has made some notifications to the WTO since 
2001 (Table II.2). 
Table II.2 
Notifications to the WTO, 2001-07 
WTO Agreement Periodicity Document symbol of most recent notification 
Import Licensing Procedures (Article 7.3) ad hoc G/LIC/N/3/DMA/2, 6 December 2006 
 
Services (Article V:7(a)) ad  hoc S/C/N/229, 19 February 2003 
 
Subsidies (Article 25) and GATT XVI:1 ad hoc G/ SCM/N/71/DMA, 20 March 2002 and Corr.1, 25 March 2002; 
G/SCM/N/95/DMA, 2 July 2003;  G/SCM/N/99/DMA, 2 July 2003; 
G/SCM/N/123/DMA, 5 July 2005;  G/SCM/N/128/DMA, 5 July 2005 
 
(Article 27.4) and document G/SCM/39 ad hoc G/SCM/N/74/DMA, 7 January 2002;  G/SCM/N/114/DMA, 5 July 2004; 
G/SCM/N/146/DMA, 6 July 2006 
 
Technical Barriers to Trade Article 10.6 ad hoc G/TBT/N/DMA/10, G/TBT/N/DMA/9, G/TBT/N/DMA/8, 
G/TBT/N/DMA/7, G/TBT/N/DMA/6, G/TBT/N/DMA/5 , 
G/TBT/N/DMA/4, G/TBT/N/DMA/3, G/TBT/N/DMA/2, G/TBT/N/DMA/1, 23 August 2005 
 
Source : WTO Secretariat. 
47. Dominica has not been either a complainant or defendant in any case before the Dispute 
Settlement Body.  It has, however, been a third pa rty in three cases (Europ ean Communities – Regime 
for the Importation, Sale a nd Distribution of Bananas20;  United States – Sections 301-310 of the 
Trade Act 197421;  and United States – Import Measures on Certain Products from the European 
Communities.22  In November 2006, Ecuador submitted a re quest for consultations under Article 21.5 
of the DSU and Article XXII of the GATT 1994.  Do minica has requested to join the consultations. 
                                                      
19 Summary of new services negotiations.  Available at:  http://www.wto.org/english/tratop_e/serv_e/s_ 
negs_e.htm. 
20 WT/DS27/78, 9 September 1997. 
21 WT/DS152/R, 22  December 1999. 
22 WT/DS165/AB/R, 11  December 2000. WT/TPR/S/190/DMA Trade Policy Review 
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48. In the Doha Round, Dominica has been a strong  proponent for the recognition of special and 
differential treatment for small and vulnerable econo mies, and has attempted to give impetus to the 
negotiations, principally through its membership of CARICOM and the ACP.  Dominica has also given support in the WTO to a joint request by sev eral developing countries for an extension of time 
(up to 2018) for granting export subsidies.  It rega rds this extension as necessary in order to become 
more fully integrated into the multilate ral trading system (see Chapter III(2)(ii)).
23 
(ii) Preferential agreements and arrangements 
49. Dominica participates in a number of regional and preferential trade arrangements:  the 
Caribbean Community (CARICOM and CARICO M Single Market and Economy (CSME);  the 
OECS;  the ACP-EC Revised Cotonou Agreement;  the U.S. Caribbean Basin Initiative (CBI);  the 
Canadian CARIBCAN;  and the Association of Caribbean States (ACS);  and is a beneficiary of the General System of Preferences of several industria l countries.  Among these, the ACP-EC Agreement, 
CARICOM, and the OECS have had the greatest im pact on the economy of Dominica.  The majority 
of Dominica's exports continue to go to th e United Kingdom and to other CARICOM countries 
(see Chapter I). 
50. Dominica is a founding member of CARICOM.  It  participated actively in negotiations aimed 
at revising the Treaty in order to establish the CARICOM Single Market and Economy (CSME).  While the process of drafting new protocols to am end the Treaty was completed in 2000, the process 
to establish the CSME reached maturity in 2003-04 , and Dominica together with a number of other 
member states commenced enactment of domestic legi slation and regulations to give effect to the 
Revised Treaty.
24 
51. Dominica is also a founding member of the OECS.  It enjoys a high level of functional 
cooperation with the OECS members on trade policy fo rmulation and negotiations in particular.  The 
OECS also facilitates cooperation in a number of re lated policy, areas, such as telecommunications, 
competition policy, and international relations. 
52. Dominica has traditionally regarded its partic ipation in regional trade arrangements as a 
springboard into the wider global economy.  In addition to the economic benefits from closer 
economic integration with CARICOM members, Do minica's participation in the OECS and in 
CARICOM has enabled it to share the human and technical resources of other member states;  benefit from greater political influence in a number of fora ;  and participate in a range of international 
negotiations through the Caribbean  regional negotiating machinery.  Membership in these regional 
organizations has been particularly important for Dominica in light of its limited human resources for 
trade policy formulation and negotiations.  Dominica  expects the regional institutional framework for 
trade policy formulation and implementation to stre ngthen with deeper integration at both the OECS 
and CARICOM levels.  It has traditionally rega rded regional trade liberalization as helpful 
preparation for liberalization at the multilateral level. 
53. Prior to the challenge of ACP preferences unde r the Cotonou and Lomé Agreements, at the 
DSB, Dominica's preferential exports of bananas accounted for more than 50% of Dominican exports 
and nearly 30% of its GDP.  This has been reduced  significantly in recent years, as preferences have 
been eroded.  Dominica is now engaged as part of CARIFORUM in negotiations with the EC to 
conclude a new trade agreement.  It hopes that th e agreement will provide greater access to European 
markets for exports. 
                                                     
 
23 WTO document G/SCM/W/535, 12 April 2006. 
24 WTO document S /C/N/229, 19 February 2003. Dominica WT/TPR/S/190/DMA 
 Page 13 
 
 
54. Dominica enjoys preferential access under the U.S. Caribbean Basin Initiative (CBI).  
Dominica also enjoys preferential access to the Canadian market through CARIBCAN, mainly for 
processed and fresh vegetables.  In the context of  Dominica's previous Review, the authorities noted 
that Dominica exports very little to the Unite d States under the CBI or to Canada under the 
CARIBCAN.  This position appears to have remained  the same during the period under review, with 
the United Kingdom and the rest of CARICOM representing the most important markets for Dominica's exports. 
55. Products from Dominica are eligible for the Generalized System of Preferences (GSP) 
schemes of Australia, Canada, the European Un ion, Japan, New Zealand, Switzerland and the 
United States.  The range of products varies according to each country's scheme. 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) M
EASURES DIRECTLY AFFECTING IMPORTS  
(i) Customs procedures, documentation, and registration 
56. Dominica is not a member of the World Custom s Organization.  The average time to clear 
customs is 48 hours.  Importers are not required to register per se, but any traders that do not have 
either a VAT identification number (the preferred identifier) or a tax identification number will be 
issued a trade code number by Customs.  Importers  may use the services of a licensed customs broker, 
but this is not a requirement. 
57. Physical inspection is required in many cases.  The authorities note that goods subject to low 
or no duty are not generally inspected, nor are ship ments by persons who are known to them.  Overall, 
around 65-70% of shipments are inspected, based on a risk assessment.  Import documents for 
vehicles, which are a high-duty item, tend to be subject to closer scrutiny. 
58. The Customs and Excise Division of the Ministry of Finance is responsible for the control and 
management of the cust oms clearance of goods.25  Up to 15 forms may be required for imports, 
depending on the type of transaction; but most imports typically require the submission of five 
documents.  Three documents are requi red for all imports:  an invoice relating to the customs value of 
the imported goods;  bill of lading/airway bill;  an d import value declaration form.  Depending on the 
nature of the import, the following may also be require d:  work sheets;  certificate of origin for goods 
from CARICOM members;  FT1 101 forms to obtain duty-free exemptions;  FT1 104 form to obtain duty-free exemptions for the vehicles of returning residents;  import licence and health permit;  
delivery note;  packing list;  insurance certificate;  contract of sale;  proof of payment;  proof of 
exportation of goods re-imported;  and proof of  warranty and exportation for goods under warranty 
that are imported. 
59. The import value declaration is required for a ll imports, with the exception of fresh fish 
caught by Dominican fishermen and landed by them  in their vessels;  pa ssengers' accompanied 
baggage;  and goods of a non-commerc ial nature of a value less than EC$500.  This declaration must 
be presented to Customs up to seven days after the goods have been landed, in the case of air 
transport, or 14 days in the case of maritime trans port, along with the invoice and the bill of lading, 
and all other documentation pertaining to payment for transport and related services, such as freight, 
insurance, and handling. 
                                                     
 
25 The operations of the Customs a nd Excise Division are governed, inter alia , by the Customs (Control 
and Management) Act chapter 69:01, the Customs Import and Export Tariffs Ordinance, the Value Added Tax Act 7 of 2005, the Excise Tax Act 8 of 2005, and the Supplies Control Act chapter 20:01. WT/TPR/S/190/DMA Trade Policy Review 
Page 14 
 
 
60. Since 1991, Customs has used ASYCUDA to pr ocess customs declarations electronically, 
although all import declarations and accompanying do cumentation must be submitted on paper.  The 
authorities state that funding and technical assistan ce is being sought to implement the ASYCUDA 
World programme, which will allow electronic filing of documents to customs.  Dominica does not 
use preshipment inspection. 
61. In the Budget Address for Fiscal Year 2006-07, pl ans were announced for the customs reform 
process.26  The reforms are aimed at improving efficiency, modernizing customs operations, and 
addressing complaints about delays and inefficiencies in the clearance of goods.27  Measures will 
include the introduction of updated technology, ch anging the staffing structure, and setting up a 
customs intelligence unit. 
(ii) Customs valuation 
62. Dominica did not invoke the special and differential treatment provisions in Article 20 of the 
Customs Valuation Agreement.  It notified Cu stoms (Control and Management) (Amendment) Act 
No. 16 of 1995, Chapter 69.01 of the revised laws of Dominica, to the Committee on Customs 
Valuation.28  Dominica has not responded to the WTO checklist of issues on customs valuation.29 
63. The 1995 Act incorporated the GATT Customs Va luation Code.  Consequently, the methods 
of valuation contained in the Agreement are us ed by Customs, in the order prescribed.  The 
transaction value is used for about 80-85% of ship ments.  Where there are concerns over the value 
declared, the transaction value is accepted while a post-import verification is carried out. 
64. No minimum prices are used for valuation pur poses.  However, reference prices based on 
international lists, catalogues, or previous import values, are used for about 5% of shipments.  
Vehicles and other high-duty items are more suscep tible to under-invoicing.  Dominica is developing a 
risk-management programme as part of the customs reform process;  an intelligence section will be 
established to enable the authorities to  conduct more in-depth investigations. 
65. Importers may challenge valuation decisions with the Customs Appeal Commissioners.  If 
unsatisfied by the decision of the Commissioners, th e importer may appeal to the High Court or the 
Eastern Caribbean Court of Appeal.  No cases  were brought before the Customs Appeal 
Commissioners during 2001-06.  The Customs A ppeal Commissioners have the powers of a 
subordinate court with respect to enforcement of  witnesses attendance, the hearing of evidence on 
oath, and punishment for contempt.  At appeal, th e Commissioners may increase, decrease, or confirm 
the amount of duty due. 
(iii) Rules of origin 
66. Dominica has notified its preferential rules of origin to the WTO30;  it has also notified that it 
does not have non-preferential rules of origin. 
67. In 1999, Dominica adopted the rules of origin introduced by CARICOM in 1998.  Duty-free 
treatment is accorded only if goods satisfying the or igin criteria are shipped directly between member 
                                                      
26 Commonwealth of Dominica (2006a). 
27 IMF (2007), p. 39, "Supplementary Memorandum of Economic Policies of The Government of 
Dominica". 
28 WTO document G/VAL/N/1/DMA/1, 12 September 2001. 
29 WTO document G/VAL/W/155, 26 September 2006. 
30 WTO document G/RO/N/24, 15 January 1999. Dominica WT/TPR/S/190/DMA 
 Page 15 
 
 
States.  Dominica, like other CARICOM members, w as expected to implement the rules of origin 
contained in the Amended Schedule I of the revi sed Treaty of Chaguaramas, based on the 2007 HS 
from 1 January 2007.  Dominica intends to bring the system on line in the first quarter of 2008.  The CARICOM Treaty contains a derogation facility to  the application of Common Market Rules of 
Origin. 
(iv) Tariffs, and other charges on imports 
68. Taxes on international transactions raised EC$112.5 million in 2005, accounting for 49.1% of 
the government’s tax revenue;  that share is pr ojected to have declined to 22.9% in 2006/07.
31  The 
main cause of this reduction is the replacement of  the consumption tax on imports with a value-added 
tax in 2006, (section (v)).  The consumption ta x on imports raised EC$56.6 million in 2004/05, 
providing 39.3% of government revenue;  its shar e of total revenue fell to 17.1% in 2005/06. 
(a) MFN applied tariff structure 
69. Dominica grants at least MFN treatment to all its trading partners.  It has applied the 
CARICOM Common External Tariff (CET) sinc e 1991.  The schedule has been based on the 
Harmonized Commodity Description and Coding System 1996 since 1 January 1999.  The tariff, as 
applied in 2006, comprises 6,479 tariff lines at the te n-digit level.  Dominica implemented the fourth 
and final phase of the CARICOM CET reductions on 1 July 2001.  Exceptions to the CET are 
included in Lists A, B, C and D, as well as in the Statutory Rules and Orders No. 25 of 1998, comprising tariffied items previously subject to quan titative restrictions and currently subject to tariffs 
as high as 165%. 
70. The highest rate applied on agricultural products is 150%, which corresponds to the final rate 
bound in the WTO.  In the case of industria l products, competing imports from non-CARICOM 
countries are subject to (non-CET) rates between 50% and 165%, for products not bound in the WTO.  
These products are no longer subject to quantitative restrictions or non-automatic licensing (with the 
exception of three products subject to non-automatic licensing (section (vi)).  Products facing the highest rate (165%) include enamels, paints, and va rnishes.  Duty-free treatment is accorded to 22% 
of tariff lines;  this percentage is somewhat lowe r than for other OECS countries.  Some 27.8% of 
tariff lines are subject to international peaks, a nd 7.9% to domestic peaks (Table III.1).  The only 
product subject to seasonal tariffs is potato es (HS 0701.90).  Tariff quotas are not used. 
Table III.1 
Structure of the tariff, 2006  
1. Total number of tariff lines 6,479 
2. Non- ad valorem  tariffs (% of all lines) 0.0 
3. Non- ad valorem  with no AVEs (% of all lines) 0.0 
4. Tariff quotas (% of all lines) 0.0 
5. Duty-free tariff lin es (% of all lines) 22.0 
6. Dutiable lines average tariff rate (%) 15.6 
7. Domestic tariff "peaks" (% of all lines)a 7.9 
8. International tariff "peaks" (% of all lines)b 27.8 
9. Bound tariff lines (% of all lines) 93.2 
 
a Domestic tariff peaks are defined as those exceed ing three times the overall average applied rate. 
b International tariff peaks are defined as those exceeding 15%. 
 Note: Based on the 2002 tariff. 
 
Source:  WTO Secretariat calculations, based on data provided by the authorities of Dominica. 
                                                      
31 Commonwealth of Dominica (2006a). WT/TPR/S/190/DMA Trade Policy Review 
Page 16 
 
 
71. A customs service charge (CSC) previously set at 2%, rose to 3% in 2003.  It is applied on the 
c.i.f. value of all imports (section (v)).  Exemp tions are provided for governmental imports, as well as 
imports by charitable organiza tions, and diplomatic missions. 
72. The simple average MFN tariff in 2006 was 12. 2% (Table III.2);  the average aggregate 
import duty increases to 15.2% if the CSC is incl uded.  The average MFN tariff for agricultural 
products (WTO definition), at 25.8%  (28.8% including the CSC), was well above the overall average.  
Beverages and spirits, fruit and vegetables, tobacco , and fish and fish products are subject to the 
highest average rates by WTO category.  The high est tariff rate (40%) is applied on a number of 
agricultural products.  Among manufactures, higher-tha n-average rates are imposed on miscellaneous 
non-agricultural products, textiles and clothing, chem icals and photographic supplies, and transport 
equipment.  The lower tariffs, by WTO category, are applied on non-electrical machinery, other 
agricultural products, petroleum,  metals, and dairy products. 
Table III.2 
Summary analysis of the MFN tariff, 2006  
 MFN 
    Coefficient of Final bound 
Description No. of Average Range variation average 
 lines (%) (%) (CV) (%) 
Total 6,479 12.2 0 - 165 1.6 61.6 
HS 01-24 1,137 27.6 0 - 150 1.2 116.5 
HS 25-97 5,342 8.9 0 - 165 1.5 51.1 
By WTO category      
WTO Agriculture 1,055 25.8 0 - 150 1.3 116.0 
   Animals and products thereof 152 19.0 0 - 40 0.8 114.5 
   Dairy products 24 6.3 0 - 20 1.0 100.0 
   Coffee and tea, cocoa, sugar etc. 170 22.1 0 - 135 1.1 116.2 
   Cut flowers, plants 56 8.9 0 - 40 1.6 108.0 
   Fruit and vegetables 259 31.9 0 - 135 0.9 114.5 
   Grains 29 15.0 0 - 40 0.8 127.6 
   Oil seeds, fats and oils and their products 98 16.5 0 - 40 1.2 117.3 
   Beverages and spirits 108 80.3 5 - 150 0.7 138.9 
   Tobacco 10 31.5 0 - 45 0.7 115.0 
   Other agricultural products n.e.s. 149 4.2 0 - 40 1.7 106.0 
WTO Non-agriculture (incl. petroleum) 5,424 9.5 0 - 165 1.4 50.1 
   WTO Non-agriculture (excl. petroleum) 5,398 9.6 0 - 165 1.4 50.1 
     Fish and fishery products 168 26.6 0 - 40 0.6 100.0 
     Mineral products, precious stones and precious metals 399 9.0 0 - 35 1.0 50.0 
     Metals 729 6.1 0 - 20 0.9 50.0 
     Chemicals and photographic supplies 1,031 10.0 0 - 165 2.3 50.2 
     Leather, rubber, footwear and travel goods 184 9.0 0 - 20 0.9 50.0 
     Wood, pulp, paper and furniture 328 9.1 0 - 40 0.9 50.0 
     Textiles and clot hing 979 10.6 0 - 30 0.8 50.0 
     Transport equipment 190 9.7 0 - 40 1.1 50.0 
     Non-electrical machinery 594 3.9 0 - 60 1.8 50.0 
     Electrical machinery 267 9.5 0 - 30 0.8 50.0 
     Non-agriculture articles n.e.s. 529 13.4 0 - 125 1.0 50.0 
   Petroleum 26 5.6 0 - 20 1.4 50.0 
By ISIC sector a      
Agriculture and fisheries 438 23.1 0 - 100 1.0 104.4 
Mining 114 6.9 0 - 35 1.3 50.0 
Manufacturing 5,926 11.5 0 - 165 1.7 59.0 
By HS section      
  01  Live animals & products 327 22.8 0 - 90 0.8 107.6 
  02  Vegetable products 402 22.0 0 - 135 1.1 113.7 
  03  Fats & oils 53 27.5 0 - 40 0.7 134.0 
  04  Prepared food etc. 355 38.5 0 - 150 1.2 122.1 
  05  Minerals 191 5.7 0 - 20 0.9 50.0 
Table III.2 (cont'd)  Dominica WT/TPR/S/190/DMA 
 Page 17 
 
 
 MFN 
    Coefficient of Final bound 
Description No. of Average Range variation average 
 lines (%) (%) (CV) (%) 
  06  Chemical & products 960 10.3 0 - 165 2.4 53.8 
  07  Plastics & rubber 257 7.7 0 - 100 1.2 50.0 
  08  Hides & skins 84 8.1 0 - 20 1.1 59.8 
  09  Wood & articles 124 9.2 0 - 20 0.7 50.0 
  10  Pulp, paper etc. 179 7.1 0 - 20 1.1 50.0 
  11  Textile & articles 963 10.1 0 - 20 0.8 51.4 
  12  Footwear, headgear 66 15.9 0 - 20 0.4 50.0 
  13  Articles of stone 183 9.5 0 - 20 0.7 50.0 
  14  Precious stones, etc. 62 17.4 0 - 35 0.8 50.0 
  15  Base metals & products 721 6.5 0 - 20 0.9 50.0 
  16  Machinery 895 6.0 0 - 60 1.3 50.0 
  17  Transport equipment 201 9.5 0 - 40 1.1 50.0 
  18  Precision equipment 249 9.3 0 - 30 0.9 50.0 
  19  Arms and ammunition 26 27.3 0 - 45 0.6 50.0 
  20  Miscellaneous manufactures 173 15.8 0 - 40 0.5 50.0 
  21  Works of art, etc. 8 20.0 20 - 20 0.0 50.0 
By stage of processing      
First stage of processing 847 18.3 0 - 135 1.2 88.0 
Semi-processed products 1,909 4.8 0 - 40 1.0 53.1 
Fully-processed products 3,723 14.6 0 - 165 1.5 60.7 
 
a ISIC (Rev.2) classification, excluding electricity (1 line). 
 
Note: Based on the 2002 tariff. 
 
Source:  WTO Secretariat estimates, based on data provided by the authorities of Dominica. 
73. Goods included in the CARICOM List of Cond itional Duty Exemptions to the CET may be 
imported at rates below the CET.  In the case of Do minica, this applies to most inputs for industrial 
production.  The List of Items Ineligible for Duty Exemption includes goods that may not be 
exempted in part from tariffs or in whole, nor imported at a reduced rate under incentives 
programmes.  As an LDC within CARICOM, Domi nica may import all inputs duty free instead of at 
the CET rate of 5%. 
74. The authorities note that tariffs on a number of products subject to tariffication have been 
lowered during the review period.  These reducti ons were made for various reasons:  because 
domestic production ceased (pasta, footwear);  to ensu re that total import charges fell below the 150% 
bound level (aerated beverages); and because the re gional circumstances for the production of oils and 
fats no longer warranted a tariff above the CET by  Dominica.  Among the most notable reductions, 
tariffs were lowered on footwear from 165% in 20 01 to 20% in 2006;  on uncooked pasta from 100% 
to 20%;  and on most oils from 60% to 40%.  Tariffs on aerated beverages declined slightly, from 
148% in 2001 to 145% in 2006. 
75. At the time of the previous Review, the au thorities envisaged a comprehensive reduction of 
tariffied rates over a period of seven years for ag ricultural items (until 2006), and five years (until 
2004) for all other products;  the delay was intende d to allow domestic producers to become more 
competitive during the period.  The envisaged reducti ons have not been impl emented, although rates 
on a few items have been reduced.  The authoriti es indicate that there are no plans to reduce the 
existing applied rates outside of obligations aris ing from trade negotiations such as the WTO Doha 
Round and the CARIFORUM-EC EPA. 
(b) Bound MFN tariffs 
76. Dominica had no tariff bindings in the GATT.  During the Uruguay Round, it bound all 
agricultural lines, with the exception of certain ite ms of domestic-production in terest to Dominica.  WT/TPR/S/190/DMA Trade Policy Review 
Page 18 
 
 
Some 93.2% of all tariff lines are bound.  The av erage bound tariff is 61.6%, five times the applied 
rate;  the bound rate for agricultural products (W TO definition) is 116%, while that for non-
agricultural goods is 50.1%. 
77. Agricultural products were bound at a ceiling le vel of 100%, with an implementation period 
of six years;  some exceptions were bound at 150%,  with an implementation period of ten years.  
Dominica bound its tariffs on imports of industrial produc ts (HS 25-97) at a uniform rate of 50% with 
a number of exceptions, which remained unbound.  The exceptions are generally products for which 
there is domestic production in Dominica.  Unbound products are also subject to import-licensing 
requirements. 
78. Dominica's applied tariff schedule does not contain any rates that exceed bindings in the 
WTO. 
79. Dominica left blank the column "other duties and charges" in its schedule, which in practice is 
equivalent to having entered "zero".32  Dominica applies a 3% customs service tax on most imports 
(section (1)(iv)(a) above). 
(c) Tariff and tax concessions 
80. Two of Dominica's incentives schemes also gr ant import duty concessions and exemptions for 
imports of goods to be used in approved industries.  Fiscal Incentives Act No. 42 of 1974 
(as amended) provides import duty relief on raw mate rials and inputs, materials, tools, plant, 
machinery and building materials, and the Hotel Aid Act, as amended by Hotel (Amendments) Aid 
Act No. 21 of 1991 provides for the duty-free importation of building materials and articles of hotel 
equipment for the construction or equipment of hotel s.  Governmental imports are exempt from duty. 
81. Certain organizations may apply for duty-free concessions through the National Development 
Cooperation (NDC).  Exemptions for charitable orga nizations go through the Ministry of Finance; 
among those with exemptions are the Dominica Infi rmary, Dominica Red Cross, the Grotto Home for 
the Aged, the Dominica Association of Disabled Pe rsons, Rotary Club, and the Christian Children 
Fund. Carnival Committees and carnival bands can apply through the NDC for initial approval, which 
is endorsed by the Ministry of Finance and Planning.  If duty-free exemptions are granted by the 
Ministry of Finance and Planning, these organizations  submit a master list (also subject to approval by 
the Ministry) to the NDC of all the goods and pr oducts they wish to import under the programme.  
This list is kept on file by the Fiscal Ince ntive Unit of the Customs and Excise Division. 
(d) Tariff preferences 
82. Dominica grants duty-free access on imports from other CARICOM countries, provided they 
meet the CARICOM rules of origin criteria.  Prefer ential imports are, however, subject to the customs 
service charge. 
(v) Other levies and charges 
83. In addition to customs duties, the Government levies a 3% customs service charge (CSC) on 
all imports, with the exception of goods importe d by the Government, goods imported by passengers 
as personal baggage or household and personal effects, and goods temporarily imported under the 
provisions of an international convention to whic h the Government of Dominica has acceded.  The 
charge is applied on the c.i.f. value of the customs declaration, and has its legal basis in the Customs 
                                                      
32 WTO document WT/DS302/R, 26 November 2004. Dominica WT/TPR/S/190/DMA 
 Page 19 
 
 
(Control and Management) Act, Cap 69.01 of the Laws  of Dominica, as amended by S.R.O. No. 41 of 
1985, and S.R.O. No. 51 of 1987. 
84. In addition to import tariffs and the CSC, Dominica imposes three other types of taxes on 
imports:  specific and ad valorem excise taxes on alcoholic beverages, tobacco products, motor 
vehicles, and fuels;  a value-added tax of 10-15% ;  and an environmental surcharge imposed at 
specific rates on some products and on an ad valorem basis on others (Table III.3). 
Table III.3 
Other taxes and levies on imports 
Excise tax 
Scope and rates: 
Goods subject to excise tax and their respective rates, are listed in the First Schedule of Excise Tax Act 8 of 2005:  
Alcoholic beverages and tobacco :  EC$1.25 per litre on HS 2203.00. 10-2203.00.90 (beer, stout, other);  EC$1.20 per litre on HS 22.04 
and 22.05 (wine and vermouth;  EC$0.28 per litre on HS 2206.00. 10, 2206.00.90 (shandy, other);  EC$8.50 per litre on HS 2208.20 .00, 
2208.50.00, 2208.60.00 (b randy, gin & Geneva, vodka);  EC$12.50 per litre on HS  2208.30.00 (whiskey);  EC$2.60 per litre on HS 
2208.40.00, 2208.70. 00, 2208.90.90 (rum & taffia, li queurs & cordials, other);  EC$22.00 per kg on tobacco products  
Fuels:   approved rates per gallon of fuel as obt ained from the Ministry of Trade and SRO No. 5 of 2006:  EC$0.45 per kg on petroleum 
gases (LPG) and other gaseous hydrocarbons  
Motor vehicles:   15% of the sum of the c.i.f. value, import duty, enviro nmental surcharge and customs se rvice charge (CSC) on motor 
vehicles HS 87.02 (motor vehicles for the transport of ten or more persons including the driver); 87.11 (motor cycles);  28% of  the sum of 
the c.i.f. value, import duty, environmental surcharge and CSC on motor vehicles HS 87.03 and 87. 04 (motor cars and motor vehic les for 
transport of goods)  
Exemptions:  Exemptions are listed in the Second Sc hedule of Excise Tax Act 8 of 2005: 
Non-alcoholic beverages;  alcohol and sp irits describes under Customs Tariff Heading 22.07;  aromatic bitters described under C ustom 
Tariff Headings 2208.90.10 & 2208.90. 20;  tobacco described under Customs Tariff Head ing 24.01;   gases in gaseous state descri bed 
under Customs Tariff Heading 2711.20.00;  l ubricating oils and greases described unde r the Customs Tariff Heading 2710.19.80;   motor 
vehicles, alcohol and tobacco imported by Diplomatic Missions, International Organizations and Personnel;  vehicles donated (as  a gift) 
to approved charitable organizations;  impor ts of building materials for churches w ho have met the following requirements as sp ecified in 
the regulations;  motor vehicles falling unde r HS 87.04 imported by approved farmers;   goods imported into Dominica for tempor ary use 
with the permission of the Comptroller of Customs  
Value-added tax 
Scope and rates: 
Based on c.i.f. value + import duty + environmental surcharge + custom s service charge + excise tax 
15% most goods;  0% fuel, flour, milk, rice,  sugar, certain agricultural and fishing inputs to the extent provided in regulatio ns, invalid 
carriages and orthopaedic appliances  
Exemptions: 
An unconditional gift of goods to approved charitable organizations and to the State;   new enterprises benefiting from incentiv es under 
the Fiscal Incentives Act, Hotels Aid Act and Consumption Tax Order in respect of capital investments for the initial investmen t up to 
commencement of operations;  goods from the approved list, importe d by the church, or obtained from locally registered manufact urers;  
imports of building materials for churches who have met the follo wing requirements as specified in the regulations;  vehicles p urchased 
by diplomats;  bona-fide unso licited goods not exceeding EC$75 in value;  goods imported by Dominicans returning home for perma nent 
residence;  goods imported by diplomatic missions, international organizations and mo tor vehicles, alcohol and tobacco imported  by 
personnel or diplomatic missions  
Environmental surcharge 
Scope and rates: 
Specific  
EC$3,000.00 per unit on motor vehicles over fi ve years old;   EC$10.00 per unit on used tyres;  EC$20.00 per unit on used refri gerators;  
EC$20.00 per unit on used freezers;  EC$10.00 per unit on electric accumulators (batteries) 
Based on c.i.f. value 1% on motor vehicles less than five years old;  1.5% on goods in containers made of plastic, gla ss, metal, paperboard or wood;  1% on all 
other goods  
Exemptions: 
Raw materials and packaging materials imported for use in the ma nufacture of goods by locally registered manufacturers;  raw ma terials 
and packaging materials imported for the purposes of the manufact ure of goods for export;  raw materials and packaging material s 
imported for use in the agriculture sector;  milk, sugar, flour , rice or pharmaceuticals;  goods imported by the Government;  g oods 
imported by military forces;   goods imported by diplomatic mi ssions, international organizati ons and personnel;  goods importe d into 
Dominica for temporary use with the permission of the Comptro ller of Customs;  goods imported by established and recognized 
charitable institutions  
Source:  Dominica Customs and Excise Division (undated), Handbook for Import and Export Procedures In the 
Commonwealth of Dominica .  Viewed at:  http://www.investdomin ica.dm/Customs%20Import%20and%20Export 
%20Procedures1.doc;  and informa tion supplied by the authorities.  WT/TPR/S/190/DMA Trade Policy Review 
Page 20 
 
 
85. Excise tax is levied on fuel, tobacco, alc ohol and motor vehicles at various rates in 
accordance with Excise Tax Act 8 of 2005.  Taxes apply to both imports a nd domestic products.  The 
tax on imported motor vehicles it is based on the c.i.f. value, including the import duty.  All other excise taxes on domestic and imported products are set at specific rates (Table III.3). 
86. VAT has been in place since March 2006, under the Value Added Tax Act No. 7 of 2005;  it 
is imposed at a general rate of 15%, but a reduced rate of 10% applies to hotel accommodation.  This 
tax replaced the consumption tax (2 0% on most goods), the sales tax (7.5% on all goods), the hotel 
occupancy tax (5%), and the entertainment tax.  Most exports, and fuel and a few basic commodities 
are zero rated.  Most social services, as well as agricultural and fishing inputs, are exempt. 
87. Tax reforms, including the introduction of the VAT, have been undertaken in part out of 
concern over the fiscal impact of trade liberalizati on.  In the Budget Address for Fiscal Year 2006/07, 
the government announced its intention to undertak e a comprehensive review of the experience under 
the VAT, one year after its implementation, taking into consideration the many concerns and queries 
raised, but that it would take no action that w ould weaken the VAT system or complicate its 
administration.  The review was expected to be completed by September 2007.
33 
(vi) Import prohibitions, restrictions, and licensing 
88. Some goods are prohibited from importation into  Dominica, as provided under schedules in 
Customs (Control and Management) Act No. 16 of 1995 .  The importation of goods listed in Part I of 
the Act's Fifth Schedule (Table III.4) is not permitt ed, while Part II of the Fifth Schedule contains 
goods that are permitted upon certain conditions contained in the law (Table III.4).  These 
prohibitions or restrictions are generally for hea lth and safety reasons, to safeguard the Dominican 
public, or to curb the illegal use and import of certain products. Goods or iginating from Iraq are 
prohibited. 
89. Dominica's import-licensing regime was notified to the WTO in 2001.34  Dominica responded 
to the WTO questionnaire on import-licensing procedures.35  The import-licensing system is regulated 
by the Supplies Control (Restricted Imports and Exports) Order, SRO No.14 of 2003.  It is 
administered by the Ministry of Foreign Affairs, Trade and Labour.  In add ition, permits are required 
from other government entities for imports of several categories of goods (Table III.4).  Statistics are not available on the number of licences requested or granted. 
90. Import licences are not required for most goods and products.  The Supplies Control 
(Restricted Imports and Exports) Order 14 of 2003 (Negative List) specifies four items for which 
licences are necessary when imported from a non- CARICOM country, and tw o additional products 
imported from any country other than a CARICOM LD C.  The licence must be obtained prior to the 
importation of any of these goods.  The authorities note that, with the exception of wheat flour, licences are issued to importers upon request.  Complete d application forms are sent to the Ministry of 
Foreign Affairs, Trade and Labour for approval, th rough the Consumer Affairs Division, processing is 
within 1-2 days and the licence is valid for six w eeks from the date of issue.  The validity period 
cannot be extended;  however, a new licence may be issued.  Upon importation, the importer is 
required to submit the approved licence, along with th e relevant customs declaration forms, to the 
Customs Department. 
                                                     
 
33 IMF (2007), SMEP, p. 42. 
34 WTO documents G/LIC/N/1/DMA/1, 23 February 2001, and G/LIC/N/3/DMA/1, 23 February 2001. 
35 WTO document G/LIC/N/3/DMA/2, 6 December 2006. Dominica WT/TPR/S/190/DMA 
 Page 21 
 
 
Table III.4 
Goods subject to prohibitions, li censing, or other restrictions, 2007 
Category Products Legal authority 
Prohibited goods All gold and silver articles of foreign manufacture bearing 
imitations of British assay marks, or British assay marks not 
complying with the standard indicated by the mark;  substandard 
coins of legal tender in Dominica;   counterfeit coins;  food unfit 
for human consumption;  indecent or obscene articles;  infected 
animals, or their carcasses, hides a nd skins;  pistols in the form of 
stylographic pens or pencils;  any goods bearing the coat of arms of Dominica;  shaving brushes manufactured in or exported from 
Japan;  and fictitious stamps Part I, Fifth 
Schedule, Customs 
(Control and 
Management) Act No. 16 of 1995 
Goods that may be imported in accordance with the conditions and restrictions prescribed in the law Arms and ammunition;  firework s;  cannabis;  gunpowder;  
imitation banknotes;  kerosene;  spirits;  tobacco;  tear gas;  cigarette-making appliances (either machine or paper);  and all other goods the importation of whic h is restricted by any other 
enactment  Part II, Fifth 
Schedule, Customs (Control and Management) 
Act No. 16 of 1995 
Goods that may be imported only under 
licence from the Ministry of Foreign 
Affairs, Trade and Labour Liquefied petroleum gas (butane and propane) except for domestic 
use; diesel, petroleum spirits, kerosene, aviation fuel, acetylene;  
oxygen;  sulphuric acid;  kero sene oil and other petroleum 
products with a flash point below 73 degrees F;  spirits and wine, 
unless specifically reported as such and unless (a) in a cask 
containing 5 gallons or more, (b ) in a demijohn containing one 
gallon or more, or (c) in glass or stone bottle properly packed in cases, each case containing one gallon or more, except as 
expressly permitted by the Comptroller, in writing 
Tobacco, cigarette, cigarillos or cigars, unless specifically reported 
as such and, unless imported by Parc el Post in whole and complete 
packages not less than 20 lbs net weight Noxious and 
Dangerous 
Substances Control 
Act No. 4 of 1982;  Customs Control 
and Management 
Act 
Import licence required from the Ministry of Foreign Affairs, Trade and Labour:  
goods from any non-member of 
CARICOM Potatoes, fresh or chilled; footw ear with upper straps of thongs 
assembled to the sole by means of plugs of rubber or plastic Schedule I of the 
Supplies Control 
(Restricted Imports 
and Exports) Order No. 14 of 2003 
Import licence required from the Ministry of Foreign Affairs, Trade and Labour:  goods from any country other than a 
CARICOM LDC (i.e., Belize or a Member 
State of the OECS) Wheat flour;  oxygen;  carbon dioxide;  candles of paraffin wax  Schedule II of the 
Supplies Control (Restricted Imports 
and Exports) Order 
No. 14 of 2003 
Licence from the Commissioner of Police Arms and am munition; gunpowder, blas ting powder, detonators, 
high explosives of any description; fireworks Firearms Act of 
1973 
Must be imported by the Government of Dominica Tear gas Customs Control 
and Management Act 
Permission of the Minister of Finance required Cigarette-making appliance, whether machine or paper Customs Control 
and Management Act 
Import permit from the Chief Veterinary Officer and a health permit from the country of origin (see section (2)(ix)) Live animals Animals Act Chap. 
61:02 
Table III.4 (cont'd) WT/TPR/S/190/DMA Trade Policy Review 
Page 22 
 
 
Category Products Legal authority 
Meat of animals, poultry or bird carc asses and parts thereof Animals Act Chap. 
61:02 Health certificate from the veterinary department, Ministry of Agriculture and 
certificate from country of origin 
(see section (2)(ix)) Plants, vegetables, fruit and plant products Plant Protection and 
Quarantine Act 
No. 19 of 1986 
Registration with Pesticide Control Board 
and import permit (see section (2)(ix)) Pesticides Plant Protection and 
Quarantine Act 
No. 19 of 1986 
Source : Dominica Customs and Ex cise Division (undated), Handbook for Import and Expor t Procedures in the 
Commonwealth of Dominica .  Viewed at:  http://www.investdomin ica.dm/Customs%20Import%20and%20Export 
%20Procedures1.doc, supplemented by additiona l information supplied by the authorities. 
91. In January 2006 at its twentieth meeting,  the CARICOM Council for Trade and Economic 
Development (COTED) approved a new set of tariffs to be applied by the lesser developed countries 
(LDCs) on items that require a licence due to ac tion under Article 164 (see below).  This includes 
wheat flour.  Dominica is in the process of implem enting the new rates and, in early 2007, stopped 
issuing licenses on wheat flour. 
92. Irish potatoes are no longer subject to seasonal im port restrictions.  Effective 1 July 2006, a 
seasonal tariff on potatoes was implemented:  potato imports "in-season" (i.e., from February to June 
inclusive in any year) attract a tariff of 150%;  and "off-season" potato imports (the rest of the year) attract a tariff of 10%. 
(vii) Contingency measures 
(a) Anti-dumping and countervailing measures 
93. Dominica notified its anti-dumping and counterva iling duty legislation to the WTO in 1999.
36  
No questions were asked by other WTO Members on th e basis of this notification.  The legislation 
was not amended following the adoption of the WT O Agreements on Anti-Dumping and on Subsidies 
and Countervailing Measures.  There is no record of use of measures of this type in Dominica.  There 
have never been any anti-dumping investigations requested, initiated, or acted upon in Dominica. 
94. Customs Duties (Dumping and Subsidies) Act No. 14 of 1959 regulates the use of anti-
dumping and countervailing measures.  The Act authorizes the imposition of duties where goods imported are considered dumped or subsidized, if it is  considered in the inter est of the State.  In 
accordance with the Act, the appli cation of duties is to be consis tent with the GATT 1947.  Duties 
chargeable under the Act are in  addition to customs duties. 
(b) Safeguards 
95. Dominica did not avail itself of the special saf eguard provisions of the WTO Agreement on 
Agriculture, nor of the right to use the transitiona l safeguard mechanism in the Agreement on Textiles 
and Clothing.  Dominica has notified the WTO that it does not have any legislation with respect to safeguards.
37  However, the authorities note that, at the multilateral level, Dominica follows WTO 
safeguard rules. 
                                                      
36 WTO document G/ADP/N/1/DMA/1 and G/SCM/N/1/DMA/1, (8 June 1999). 
37 WTO document G/SG/N/1/DMA/1, (12 November 1998). Dominica WT/TPR/S/190/DMA 
 Page 23 
 
 
96. The use of safeguards is permitted by CARICO M rules:  as a less developed country, 
Dominica may invoke the special provisions in Chap ter 7 of the Revised Treaty of Chaguaramas, in 
particular article 150, when necessary, to impo se safeguard measures.  Article 150 (Safeguard 
Measures) entitles a disadvantaged country to limit imports of goods from other Member States for up 
to three years, and to take such other measure s as COTED may authorize.  Dominica has not made 
use of any safeguard measures during the period of this Review. 
97. In January 2006, COTED agreed that under th e provisions of Article 164 of the Revised 
Treaty, tariff rates could be increased on a list of goods  (Table III.5).  It was further agreed that this 
decision would be reviewed after a period of five years.  The authorities indicate that Dominica is in 
the process of implementing the new rates.  In most  cases, the rates agreed by COTED are higher than 
those applied by Dominica in 2006, but  in a few cases, they are lower. 
Table III.5 
Goods under CARICOM Article 164 exceptions 
HS code Description Durati on MDC rates Third party Applied MFN 
rate (2006) 
2202.100 Aerated beverages 10 years 70% 100% 145% 
201.10 Waters; other waters 10 years 70% 100% 135% 
22.03 Beer 10 years 70% 100% 50-75% 
2202.90.20 Malt 10 years 70% 100% 60% 
34.06 Candles/paraffin wax 7 years 40% 50% 20-125% 
0910.50 Curry powder 5 years 30% 40% 40% 
19.02 Pasta 5 years 50%  100% 20% 
23.09 Animal feed 10 years 50% 100% 15-20% 
9401.60 /9403.60 Wooden furniture 10 years 40% 50% 40% 
8419.19 Solar water heaters 10 years 40% 50% 20-60% 
2804.40, 2811.21, 2901.292 Industrial gases/oxygen, carbon dioxide, 
acetylene 10 years 40% 50% 25% 
 
Source : Information provided by the authorities. 
(viii) Technical regulations and standards 
98. Dominica submitted a statement to the WTO in 2001 on the implementation and 
administration of the Agreement on Technical Barriers to Trade.38  Dominica has notified a series of 
technical regulations (compulsory standards) in ten notifications in 200539:  the subject matter 
included a code of practice for general principles of food hygiene;  a specification for labelling of 
brewery products;  and a specification for the limit on lead content in paints.  All of the notifications 
were made in advance of the entry into force of the regulations. 
99. Dominica Bureau of Standards (DBOS), establishe d by the Standards Act No. 4 of 1999, is 
responsible for developing standards and technical  regulations.  The DBOS, which has been notified 
as the national enquiry point for the TBT Agreement40, adopted the Code of Good Practice for the 
Preparation, Adoption and Applicati on of Standards on 13 September 2000.41  The DBOS is under the 
purview of the Ministry of Foreign Affairs, Trade and Marketing and is administered by the National 
Standards Council appointed by the Minister.  The Minister on the recommendation of the DBOS, may declare a specification or draft standard to be a national standard, i.e. formally adopted by the 
Government.  It may be compulsory (a technical regulation) or non-compulsory.  The authorities 
                                                     
 
38 WTO document G/TBT/2/Add.62, 28 February 2001. 
39 WTO documents G/TBT/N/DMA/1-10, 23 August 2005. 
40 WTO document G/TBT/ENQ/29, 12 March 2007. 
41 WTO document G/TBT/CS/2/Rev.13, 2 March 2007. WT/TPR/S/190/DMA Trade Policy Review 
Page 24 
 
 
indicate that these standards are prepared under the guidelines of Articles 2 and 4 of the TBT 
Agreement.  Specifications are made public and open for comment before becoming standards;  the 
same applies for revocations.  Every declaration, revocation, or variation of a standard must be 
published in the Gazette . 
100. The DBOS has been operating since 2000.  The Bureau promotes the general adoption and 
implementation of technical regula tions and standards, establishes or  designates testing facilities or 
laboratories, and provides for the examination and tes ting of goods.  The Bureau is also in charge of 
certifying that goods, services, processes, and prac tices conform with national, regional or 
international technical regulations and standards, and of declaring standards and keeping them under 
review.  The DBOS may also provide advice to manufacturers on quality control. 
101. The adoption or adaptation of technical regula tions and standards is prepared by four 
technical committees for:  food, food products and pr actices;  labelling and packaging;  manufacturing 
and chemical products;  and build ing and construction materials.42  Adoption/adaptation in Dominica 
is within the framework of the CARICOM Re gional Organisation for Standards and Quality 
(CROSQ).  One of CROSQ’s main objectives is the harmonization of standards within CARICOM. 
Standards adopted/adapted in Dominica are ther efore mainly standards approved by the COTED, 
based on recommendations from CROSQ.  Regional st andards, whenever available, are based on 
international standards and guidelines prepared by ISO, IEC, and CODEX.  If a standard does not 
exist at the regional level, Dominica undertakes th e process at the national level, but the standard 
becomes part of the regional programme. 
102. The authorities note that consultations among inter ested parties are encouraged in the process 
of adoption/adaptation of a technical regulation or  standard, and for technical regulations only, 
through the WTO notification process;  a 90 day comment  period is part of the procedure.  Standards 
are reviewed every five years and revised or withdrawn where necessary.  National standards, including technical regulations, are reviewed every five years.  The review or revision process is 
undertaken by the appropriate DBOS technical committ ee;  the reasons for the revision or withdrawal 
are documented.  No technical regulations or st andards were withdrawn during the review period. 
103. The DBOS has no mandatory certification of co nformity;  however, consideration is being 
given to implement a system based on third- party assessment in addition to inspection and 
certification.  The authorities note that mechanisms to check compliance with technical regulations for 
both domestic and imported products (e.g., spot checks in the dom estic market, customs inspections, 
or other) are being developed, and are intended to monitor compliance.  When implemented, 
certification will be based on a mixture of type appr oval and 100% testing, depending on the type of 
product.  The DBOS also intends to pursue activ ities in metrology and metrication.  The National 
Standards Compliance system proposed for monitori ng national standards involves:  inspection and 
testing of samples of goods traded;  market surve illance;  and third party assessment, especially where 
the Bureau has limited capacity to test products , or for products coming from CARICOM countries.  
The DBOS intends to monitor products against th e national standards at the ports of entry.  
Monitoring of locally manufactured products is th rough market surveillance and product certification. 
104. In accordance with the Standards Act, the Minister for Foreign Affairs, Trade and Marketing 
may declare a standard compulsory (i.e., a tec hnical regulation within the meaning of the TBT 
Agreement) or voluntary, upon recommendation of the DBOS.  The Bureau may recommend that it be 
made compulsory for reasons of consumer safety or  to protect against danger to health;  to prevent 
                                                     
 
42 Dominica Bureau of Standards online information, DBOS Technical Committees and Their Prime 
Functions .  Viewed at:  http://www.dominicastandards.org/dominica_bureau_of_standards_technical_ 
committees_and_their_prime_functions.php. Dominica WT/TPR/S/190/DMA 
 Page 25 
 
 
fraud arising from misleading advertisin g or labelling;  to ensure qualit y in goods produced for export;  
to ensure adequate information is given to the cons umer;  to ensure quality when the source of supply 
is restricted;  and generally to ensure the qua lity of goods and services.  This process provides 
opportunity for comment and notification to the WTO. 
105. The DBOS may request the testing of goods subject to a technical regulation.  If tested goods 
fail to conform to the regulation, domestic use or  export is prohibited unless the goods are marked as 
imperfect.  Moreover, upon application by the Minister, a High Court may order the producer to cease the production of a good that does not conform with a technical regulation. 
106. Limited testing services in agri-processing are pr ovided by the Produce Chemist Laboratory.  
In the context of Dominica's previous Review, it w as noted that the laboratory needed to be upgraded 
before it was competent to assess conformity to standards.  The Government has established a 
programme for a National Center of Testing Exce llence in Dominica which envisions capacities in 
microbiological, chemistry, metrology, physical, and environmental laboratories, based on international guidelines.  The project is at the fi nal design and preconstruction phase.  None of the 
existing labs are involved in assessing conformity w ith technical regulations and standards: it is 
anticipated that the infrastructure should be on the ground by the end of 2008.  The engineering 
laboratory of the Ministry of Housing, Land, Te lecommunications, Energy, and Ports also provides 
some testing services.  These are not, however, rela ted to procedures for assessing conformity with 
technical regulations or standards.  To the extent  that testing is conducted outside of Dominica, the 
DBOS prefers to use facilities in  other OECS member states. 
107. With respect to imports, the DBOS may order the inspection of goods for which a technical 
regulation has been declared in Dominica:  the goods may enter only after certification that the samples examined conform to the standard. 
108. The DBOS began its conformity-assessment activitie s in the first quarter of 2007, and is still 
in the process of establishment.  Goods may be allowed to enter Dominica if accompanied by a 
certificate of examination and compliance with th e standard, issued by a laboratory or similar 
institution in the country of origin that is recogni zed by the Bureau.  The Government has endorsed 11 
(one of which has two parts) national standards as compulsory standards;  all were notified to the 
WTO while they were still in th e comment phase.  A three-month grace period has been granted to 
persons involved in trade to conform to these re quirements. This also provided the Bureau the 
opportunity to establish its standards monitoring co mpliance system to effectively monitor these 
standards.  The Bureau recognizes certification fro m CARICOM Member countries that has a similar 
national compliance system to that of Dominica.  Additionally, products with a certification mark 
from British Standards Institution, Indian Bureau of  Standards, and Australian Bureau of Standards 
are recognized by Dominica. 
109. Eleven standards were adapted from existing re gional and international standards between 
2000 and 2006:  all were made compulsory (ten diff erent standards, one with  two parts), and hence 
became technical regulations.  The DBOS h as adopted 42 CARICOM standards, 26 voluntary 
national standards, and 11 technical regul ations (mandatory national standards).
43  Nine of these 
technical regulations refer to labelling (general pr inciples, pre-packaged foods, pre-packaged goods, 
electrical appliances, brewery products, cigarettes, and textiles);  there is also a code of hygiene 
practice for foods production and processing, and a li mit for lead in paint.  The DBOS maintains an 
inventory of standards and technical regulations. 
                                                      
43 DBOS online information.  Viewed at:  http://w ww.dominicastandards.org/ standards/question.php? 
qstId=55. WT/TPR/S/190/DMA Trade Policy Review 
Page 26 
 
 
(ix) Sanitary and phytosanitary measures 
110. Dominica has made no notifications under the SPS Agreement. 
111. Plant Protection and Quarantine Act No. 10 of 1986 regulates the import of plants, planting 
material, fruits, vegetables, plant products, soil, for phytosanitary reasons.  The importation of live 
animals and animal products, meat and meat produc ts, milk and milk products, is regulated by the 
Animals Act Chap 61:02.  Plant articles may re quire an import licence from the Minister of 
Agriculture and a phytosanitary certificate from the a ppropriate government department or agency in 
the exporting country.  In accordance  with the Plant Protection (Importation) Regulations, all imports 
of plants, soil, dung, living insects, non-marine i nvertebrate animals, and any accompanying container 
or wrapping material must enter Dominica through a designated port of entry and be subject to 
examination by officers of the Plant Protection Office.  Exceptions apply to dry hulled rice;  nuts; dried, candied, canned, or other processed fruit an d vegetables; roasted coffee; commercial yeast;  
cooked plant products;  and seed s of vegetables or ornamental plants from Canada, the 
United Kingdom, or the United States.  Domini ca has introduced SPS measures during the review 
period, but the authorities could not indicate the number of measures.  The authorities note that SPS 
measures in force are guided by standards provided by international standards setting bodies (ISSBs), 
in particular the IPPC and the OIE. 
112. Pesticide Control Act No. 15 of 1974 provides for controls on the importation, sale, storage, 
and use of pesticides.  Imports of pesticides re quire a licence from the Pesticide Control Board;  
licences from the relevant Minister are also required for imports of drugs. 
113. Dominica is a contracting party to the Interna tional Plant Protection Convention (IPPC), and a 
member of the Codex Alimentarius Commission, bu t is not a member or the World Organisation for 
Animal Health (OIE). 
114. The authorities note that trading partners are informed of new or modified national SPS 
regulations that could affect trade on a bilateral and peer-to-peer basis, through SPS enquiry points.  
The measures are not, however, notified at the multilateral level. 
115. Testing and inspection are conducted at the borde r and port of entry, where samples are taken 
and brought to the laboratory for confirmation.  This process is guided by ISPM #23 (2005) 
“Guidelines for inspection” as set out by the IPPC.  Two units of the Ministry of Agriculture perform 
tests: the Plant Protection and Quarantine Services, and the Produce Chemists Lab.  A new molecular lab was installed in 2005.  Some testing is also done  outside the country for pests that are outside the 
capacity of these facilities. 
116. Dominica has no rules regarding GMOs:  the Environmental Coordinating Unit has the 
authority to give advice.  A new plant protection act that is under development will cover GMOs and 
LMOs.  It will be a harmonized act in the CARI COM region, and may be approved at the regional 
level before the end of 2007.  It will be in line w ith the revised text of the IPPC, and would give the 
Plant Protection Unit sole authority to deal with th ese matters.  In some cases, this may lead to the 
imposition of restrictions. 
117. There are no recorded imports of GMO or hormone-fed animals.  The authorities could not 
indicate whether such imports would be subject to special procedures or restrictions. 
118. Dominica has not entered into any interna tional SPS agreements, but is monitoring 
developments in international negotiations on to this topic. Dominica WT/TPR/S/190/DMA 
 Page 27 
 
 
(2) MEASURES DIRECTLY AFFECTING EXPORTS  
(i) Documentation, export taxes, and restrictions 
119. Exporters are not required to register;  and no products are subject to export licensing. 
120. All exports require a customs declaration fo rm and commercial invoice.  Other documents 
may be required, depending on the t ype of goods and the destination, for example a certificate of 
origin, health certificate or permit, or a permit to export firearms or ammunition.  All export shipment 
documents are examined by customs at the port of ex it.  The authorities note that export verification is 
designed to prevent smuggling and ensure that th e appropriate certificate accompanies restricted 
goods.  Imports/exports of restricted goods have a st atutory presumption of denial in the absence of 
separate approval by Customs.  Part 2 of th e Fifth Schedule of the Customs (Control and 
Management) Act Chap. 69:01 lists a number of goods and products th at are restricted:  certain 
conditions must be met, and export warrants are requ ired in certain cases.  These instruments are used 
in order to collect taxes, compile statistics, and to verify information. 
121. A 3% customs service charge is due on any goods that are either:  re-exported from a 
government warehouse, private warehouse, and othe r premises under fiscal control;  or re-exported 
from transit.  There are also export royalties of EC $0.50/ton on sand and EC$0.45/ton on stone;  and 
an EC$1.50 stamp duty on re-exported good.  Data we re not available on the revenue from the export 
royalties. 
122. Exports of any wildlife (live or dead) or pa rts thereof are forbidden, in accordance with 
Section 32 of the Forestry and Wildlife Act.  This export prohibition is for the protection and 
conservation of wildlife in Dominica.  Export of all CITES-related products are prohibited. 
(ii) Export subsidies, financing, support, and promotion 
123. Dominica has not notified to the WTO whether it provides export subsidies on agricultural 
products. 
124. It has notified the Fiscal Incentives Act No. 42  of 1974 (as amended)  as providing export 
subsidies.44  The Act provides for, among other things, exemption from income tax on export profits 
for up to five years to any enterprise if export prof its amount to 10% or more of total profits;  export 
profits accrue from an approved product under the Ac t;  the enterprise is not already benefiting from 
exemptions during a tax holiday period;  and the enterprise is engaged in a non-traditional industry 
exporting a product not traditionally exported from Dominica (section (3)(ii) below).45 
125. In a decision of 27 October 2006, the Comm ittee on Subsidies and Countervailing Measures 
agreed to continue until 31 December 2007 the exte nsion and continuation granted in G/SCM/63 and 
Add.1-3 of the transition period, under Article 27.2( b) of the SCM Agreement, for the elimination of 
                                                      
44 WTO documents G/SCM/N/71/DMA, 20 March 2002, G/SCM/N/71/DMA/Corr. 1, 25 March 2002, 
G/SCM/N/74/DMA, 7 January 2002, G/SCM/N/99/DMA, 2 July 2003, G/SCM/N/114/DMA, 5 July 2004, 
G/SCM/N/128/DMA, 5 July 2005, G/ SCM/N/146/DMA, 27 July 2006, G/ SCM/Q3/DMA/1, 8 April 2002 to 
G/SCM/Q3/DMA/8, 14 September 2006, and G/SCM/Q4/DMA/6, 16 October 2006. 
45 WTO documents G/SCM/N/71/DMA, 20 March 2002, G/SCM/N/71/DMA/Corr. 1, 25 March 2002, 
G/SCM/N/74/DMA, 7 January 2002, G/SCM/N/99/DMA, 2 July 2003, G/SCM/N/114/DMA, 5 July 2004, 
G/SCM/N/128/DMA, 5 July 2005, G/ SCM/N/146/DMA, 27 July 2006, G/ SCM/Q3/DMA/1, 8 April 2002 to 
G/SCM/Q3/DMA/8, 14 September 2006, and G/SCM/Q4/DMA/6, 16 October 2006. WT/TPR/S/190/DMA Trade Policy Review 
Page 28 
 
 
export subsidies that take the form of full or par tial exemptions from import duties and internal taxes 
and that were in existence unde r the programme on 1 September 2001.46 
126. Dominica and the other OECS countries, together with eight other WTO Members, made a 
proposal in early 2006 that would extend export subsidies to 2018.47  In the view of these countries, 
export subsidies are necessary becau se they consider themselves to be "particularly vulnerable and 
unable to fully and better integrate into the multila teral trading system and benefit from the positive 
aspects of international liberalization".  In July 20 07, the General Council decided to extend the date 
for the dismantlement of export subsidies to end 2015.  Members benefiting from the extension must 
take, from 1 January 2008, the necessary internal st eps with a view to eliminating export subsidies 
under the programme before the end of the final two-year phase-out period.  In addition, from 
1 January 2008 and no later than 31 December 2009, the Member must notify each beneficiary under 
the programme indicating that no export subsidies w ithin the meaning of SCM Article 3.1(a) will be 
granted or maintained beyond the end of calendar year 2015.48 
127. Dominican manufacturing exporters may make use of the Eastern Caribbean Central Bank 
(ECCB), political and commercial risks insurance fac ilities against the risks involved in exporting on 
commercial terms.  The rates on loans from comm ercial banks under the guarantee schemes are 
generally lower than rates obtainable otherwise.  The ECCB also provides preshipment financing, 
offering competitive rates for purchases of raw mate rials and other working-capital needs, against 
confirmed export orders.  It also provides post-shipme nt financing, allowing exporters to convert trade 
receivables into cash to enhance working capital.  The ECCB may, alternatively, provide guarantees 
to commercial banks for advances to exporters of  non-traditional manufactured goods for the purchase 
of working capital, through its Export Credit Gu arantee Scheme.  Dominica has not used ECCB 
export financing guarantee schemes during the review  period.  Exporters may also receive export 
promotion support from the OECS Export Development Unit (EDU). 
128. The Market Support Service Department of the Dominica Export and Import Agency 
(DEXIA) is in charge of facilitating exports of agricultural, agri-processed, and manufactured goods 
(section (3)(iii)(c)).  Support is provided to expor ters in areas such as market research and market 
entry requirements;  product identification and devel opment;  participation in trade fairs, exhibitions, 
and promotions;  organization of trade missions;  organizational development;  financial risk 
development;  and training.  To meet market  entry requirements, DEXIA runs quality assurance 
programmes.  An action plan is e xpected to be completed in 2007, w ith a view to enhancing DEXIA’s 
efficiency, streamlining its f unctions, and improving accountability.49 
(3) MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Legal framework for business and taxation 
129. Foreign or local individuals wishing to establis h a business in Dominica have various options:  
sole proprietorships;  partnerships;  corporati ons;  joint ventures;  and international business 
companies.  Pre-existing external companies wishing to continue operations in Dominica must 
register.  All business undertakings with more th an 20 owners or shareholders are required to 
incorporate.  The Companies Act No. 21 of 1994  regulates company incorporation in Dominica.  
                                                      
46 WTO documents G/SCM/63/Add.4 and G/SCM/71/Add.4, 13 November 2006. 
47 WTO document G/SCM/W/535, 12 April 2006.  The eight other Members were Barbados, Belize, 
the Dominican Republic, El Salvador; Fiji, Jamaica, Mauritius, and Papua New Guinea. 
48 The proposal to extend the period is contained in WTO documents G/SCM/W/542, 2 July 2007 and 
G/SCM/W/535, G/SCM/W/542/Suppl.1, 9 July 2007. 
49 IMF (2007), SMEP, pp. 41 and 44. Dominica WT/TPR/S/190/DMA 
 Page 29 
 
 
Companies may be incorporated by sending signed articles of incorporation to the Registrar of 
Companies.  Other legislation regulating incorpor ation and the operation of enterprises in Dominica 
includes:  Alien Landholding Act No.17 of 1995;  th e Registration of Business Names Act (Chapter 
78:46);  and International Business Company Act No. 10 of 1996.  For companies registered under the 
Companies Act, the one-off registration fee (certificate of incorporation) is EC$750.  There is also an 
annual renewal licence fee that varies accordi ng to the share capital, from EC$200 to EC$700 plus 
EC$100 per EC$100,000 in additional shares.  A bus iness name can be registered for EC$100. 
130. Most businesses are required to obtain a trade or professional licence under the Trade and 
Professional Licence Act.  No trade licence is requi red for a business that trades solely in domestic 
goods.  The procedures and costs for a business licence va ry according to the type of business:  a store 
that sells alcoholic beverages in any form (on-sal e, off-sale, wholesalers, etc.) must obtain a licence 
from a magistrate, and pay an annual licensing fee of EC$100 to EC$1,000, depending on the size and 
nature of the business. 
131. The Government has identified the processes involved in the ownership, transfer, and 
registration of land as an area for reform.  In 2005, it appointed a Land Tenure and Administration 
Reform Task Force to oversee the process of improvi ng and modernizing the legislative, institutional, 
and administrative systems.  Based on recommendations emerging from this process, procedural changes were made in 2006 relating to the grant of st ate lands and the transfer of allocated lands.  The 
Task Force is still meeting regularly, and is deve loping additional recommendations with regard to 
procedures, automation, and other issues. 
132. The governing legislation for corporate taxation is the Income Tax Act (Chapter 67:01):  the 
corporate tax rate is 30%.  There is no capital gain s tax.  The withholding tax is assessed on a sliding 
scale, depending on the type of transaction:  rental payments in respect of immoveable property (25%, after deductions for expenses), divi dends (15%), rental payments in  respect of moveable property 
(20%), other payments to non-residents (25%), and fees payable to public entertainers (30%).  Land 
transfer taxes include an assurance fund fee (1%), a judicial fee (2.5%), a solicitor’s fee (3%, on 
which a 15% VAT is paid), and stamp duties (2 .5% on the vendor, 4% on the buyer).  Foreign 
investors are allowed to repatriate  100% of profits.  Effective 1 Janua ry 2008, the withholding tax will 
be made uniform at a range of 15% for the vari ous categories currently specified (see budget address 
of FY2007/2008. 
133. International Business Company Act No. 10 of  1996 regulates the establishment of offshore 
companies.  IBCs may be incorporated for any activ ity not explicitly prohibited by the International 
Company Act (mainly banks, insurance companies,  or indecent or illegal activities);  they are 
constituted as limited-liability companies in which shareholders or direct ors do not have personal 
liability in case of default. 
134. Dominica is among the 41 countries and other jurisdictions that the OECD identified in 2000 
countries as tax havens.  Dominica signed a Commitm ent Letter with the OECD on transparency and 
the exchange of information, and was removed fro m the "uncooperative" list.  Dominica committed to 
transparency measures, and to share information in criminal tax matters by January 2004, and in civil 
tax matters by January 2006. 
135. The Financial Intelligence Unit, established in 2001 as part of the Ministry of Legal Affairs, 
under Money Laundering Prevention Act No. 20 of 2000, investigates allegations of illegal activity.  
It refers matters to the Attorney General’s offi ce for prosecution through the Director of Public 
Prosecution.  During the review period one invest igation led to prosecuti on, conviction, and the 
imposition of the maximum fine.  The Financial Services Unit (FSU) of the Ministry of Finance will WT/TPR/S/190/DMA Trade Policy Review 
Page 30 
 
 
replace a unit that has been in place since 1996, ope rating as a regulatory body for offshore financial 
services.  The Exchange of Information Act author izes the FSU to give information to requesting 
countries on tax matters.  Legislation is under consideration in Parliame nt to provide the legal status 
for this institution. 
(ii) Incentives and assistance 
136. Like other OECS countries, Dominica grants  a number of investment incentives.  The 
Ministry of Tourism, Industry, and Private Sector Relations is responsible for the administration of 
these schemes.  In mid-2007 the bodies that directly administer these programmes were in transition.  
Two new agencies were expected to be operational by  mid 2007.  The Invest Dominica Authority Act, 
which was passed in Parliament in April 2007, pr ovides for the creation of a new Invest Dominica 
Authority, which will be responsible for  promotio n and stimulation of fore ign investment.  It will 
replace the Dominica National Development Corpora tion (NDC) in the administration of incentives 
schemes.  The new institution will operate on th e same basis as the NDC, in that it receives 
applications for incentive benefits and makes reco mmendations to the Gove rnment on the level and 
types of concessions to be granted.  The ultimate de cision-making authority will remain with Cabinet.  
According to the authorities, the new institution will have a more specific focus and more institutional 
resources than its predecessor.  Parliament also enacted in April 2007 the Discover Dominica Act of 
2007, which authorized the creation of a Discover Dominica Authority to focus on the marketing of Dominica as a tourism destination.  Like the Invest  Dominica Authority, this new institution will take 
over jurisdiction of programmes under the control of the NDC. 
137. Under Fiscal Incentives Act No. 42 of 1973 as am ended by Act No. 3 of 1992 and Act No. 3 
of 1994, a tax holiday of up to 15 years may be gr anted for the manufacture of approved products by 
approved enterprises, as follows:  (i) Group 1 enterp rises, in which local value is 50% or more of 
sales, up to 15 years;  (ii) Group 2 enterprises, in which local value is between 25% and 50% of sales, 
up to 12 years;  (iii) Group 3 enterprises, in which local value is between 10% and 25% of sales, up to 
10 years;  (iv) enclave enterprises, defined as tho se in which production is exclusively for export, up 
to 15 years;  and (v) capital intensive enterprises, de fined as those in which there is investment of not 
less than US$10 million, up to 15 years.  The aut horities nevertheless indicate that these guidelines 
are not used in the granting of incentives:  they  do not classify proposals into these groups, nor do 
they calculate the level of value-added of an inv estment.  Decisions are based on such considerations 
as employment generation, the amount of capital, and the sector involved.  Among the government's 
favoured sectors are hotels and ancillary services,  agri-business, manufacturing, information and 
communication technology, and any other sector that has the potential to provide employment.  The 
Ministry of Finance and Planning compiles a monthl y report on the value of revenue forgone by way 
of concession granted under the Fiscal Incentiv es Act and other Relevant Legislation. 
138. During the tax holiday, exemptions are available from income tax on export profits (by way 
of tax credits), and import duties on plant, equipm ent, machinery, spare parts, raw materials, or 
components thereof.  Any enterprise may be exempted from import duties during a tax holiday if local value-added accounts for at least 10% local valu e-added of the amount realized from sales.  
Exemptions from income tax on export profits are gran ted for up to five years to any enterprise if its 
export profits amount to 10% or more of total pr ofits, export profits accrue from an approved product, 
the enterprise is not already benefiting from ex emptions during a tax holiday period, and the 
enterprise is engaged in a non-traditional industry ex porting a product not traditionally exported from 
Dominica.  The authorities note that the legislati on speaks of local value added, the granting of 
incentives is predicted by the level of invest ment and employment generation in practice. Dominica WT/TPR/S/190/DMA 
 Page 31 
 
 
139. The 1992 amendment to the Act introduced the possi bility of obtaining an income tax credit 
for capital expenditures for the construction, acquis ition or improvement of assets by any person not 
enjoying an income tax holiday in  relation to the relevant activity.50  The Act also grants import duty 
exemptions on machinery, equipment, spare parts, building materials, raw and packaging materials, 
and others, as appropriate, to be used in eligible enterprises. 
140. The products benefiting from the income ta x credits on exports constitute almost 
US$18.5 million or 44% of Dominica’s total mercha ndise exports in 2005, and close to 300 persons 
are employed.  Only one company continues to be nefit from income tax credits on exports:  total 
investment by this company, which manufactur es soap, dental cream, and detergents, is 
EC$60 million (US$22 million). 
141. In the view of the authorities, the provision of  the export subsidy and other fiscal incentives 
under the programme constitutes a major deciding fact or in the continuation of investment, export 
earnings, and employment generation.  They state that the subsidy cannot be considered as trade-
distorting at the multilateral level, given Dominica 's very small share of world exports of these 
products (Table III.6). 
Table III.6 
Credits and trade under the Fisc al Incentives Act No. 42 of 1974 
Year Tax credits 
granted on 
exports 
(EC$’000) Production 
(EC$’000) Exports of 
subsidized 
products 
(EC$’000) Subsidized 
exports as a 
share of total 
exports (%) Imports of 
subsidized 
products 
(EC$’000) Subsidized 
imports as a 
share of total 
imports (%) 
1996 635 n.a. 53,847 38.9 4,224 1.2 
1997 444 n.a. 53,327 37.8 4,100 1.1 
1998 833 59,184 72,494 43.3 1,337 0.4 
1999 568 41,684 64,164 42.6 3,313 0.9 
2000 432 36,818 61,789 42.7 2,907 0.7 
2001 61 33,399 55,589 47.1 1,865 0.5 
2002 160 32,125 48,934 42.5 1,623 0.5 
2003 213 17,771 28,336 26.2 0,271 0.1 
2004 274 39,468 50,233 45.0 3,667 0.9 
2005 813 40,408 26,929 23.9 0,641 0.1 
 n.a. Not applicable. 
 
Source : Calculated from WTO document G/SCM/N/146/DMA, 6 July 2006. 
142. The authorities state that, while the percentage of local value-added should, according to the 
Fiscal Incentives Act, determine the length of the ta x holiday, in practice the source of raw materials, 
components, and parts is given very little consid eration in granting fiscal incentives.  Greater 
consideration is given to  employment generation.51  The authorities also note that the programme's 
export tax credit provision is one aspect that is in need of phasing out.  In 2002 only one company 
benefited from this incentive, which was to expire in  2005, and consideration was thus to be given to 
amend the Act to remove the provision.52  However, an extension of the incentives was granted to the 
company in 2005.  According to the authorities,  the current fiscal incentive programme will be 
modified within the framework of CARICOM.  Ne w harmonized fiscal incentive legislation is being 
prepared by CARICOM, and is expected to be completed by the end of 2008. 
143. The Aid to Development Enterprises Act also provides for relief from import duties on raw 
materials and inputs, materials, tools, plant, machinery, and building materials.  These goods must be 
                                                      
50 Fiscal Incentives (Amendment) Act No. 3 of 1992, Part II 1. 
51 WTO document G/SCM/Q3/DMA/7, 26 July 2002. 
52 WTO document G/SCM/Q3/DMA/5, 29 April 2002. WT/TPR/S/190/DMA Trade Policy Review 
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for use in manufacturing processes;  constructing, erecting or altering factories;  equipping hotels;  or 
goods packaging.  The Hotels Aid Act and Income Tax Act No. 37 of 1982  allow for a tax holiday of 
up to 20  years for approved hotel and resort developments (see Chapter IV(v)).  Companies registered 
under the International Business Companies Act are exempt from taxes, duties, and similar charges 
for 20  years from the date of incorporation.  In ge neral, approved projects are allowed exemptions 
from withholding taxes on divide nds and interest payments. 
144. The Customs Control and Management Act grants  the Cabinet power to confer customs duty 
relief on goods or classes or descrip tions of goods.  The relief may take the form of an exemption 
from duty;  or payment of a sum lower than the amount due, and may be made subject to certain 
conditions, including pos t-import conditions. 
145. A recent World Bank study observed that "the pervasive use of tax concessions" is a "key 
feature of the present tax system in Dominica and other OECS countries".53  It reported that during 
FY1999/00 to FY2002/03, revenue forgone by the Central Government in customs duties and 
consumption taxes due to tax concessions was on aver age 5% of GDP.  It found that if all exemptions 
under the Customs Control and Management Act were  repealed, a revenue gain of 1.9% of GDP 
would be expected, assuming zero elasticity of imports with respect to tariffs and consumption tax.  
The authorities indicate that the revenue forgone and the potential revenue gain from tax changes 
would now be lower than the World Bank projected  in that report because the consumption tax has 
since been replaced by the VAT. 
146. The Government of Dominica is committed to  reducing tax concessions and statutory 
exemptions.  According to the 2006 Supplementary Memorandum of Economic Po licies, this could be 
achieved through tax reforms that reduce the margin al tax burden and do not allow for exemptions, 
and through a regional approach to tax exemptions and fiscal incentives.54  Among Dominica's 
commitments to the International Monetary Fund is  that information on concessions granted will be 
published on a regular basis in the Official Gazette .55 
147. Dominican enterprises may receive concessiona ry credits funded or guaranteed by the 
Caribbean Development Bank (CDB) for projects be tween US$750,000 and US$5 million.  The rate 
for loans from ordinary capital resources is 6% (pub lic sector) or 8% (private sector) per year, with a 
repayment period of up to 22 years.  Loans from sp ecial fund resources are granted to Dominica at an 
annual interest rate of 2.5%, with a repaymen t period of 30 years, including a grace period of 
10 years.56 
148. Support through concessionary loans is also provided by the Agricultural and Industrial 
Development Bank (AID Bank), established in 1 982, with the mandate to promote economic 
development, both in the agricultural and industria l sectors, and to mob ilize resources for such 
development.  The AID Bank grants development loans to businesses and entrepreneurs for the 
establishment and development of production activities in  Dominica.  Interest ra tes are lower than for 
similar loans from commercial banks.  An action pl an for the AID Bank was completed in 2006 under 
which it would be reorganized to seek greater ope rational efficiency and accountability, and address 
                                                      
53 World Bank (2005), p. 32. 
54 IMF (2007), SMEP, p. 44. 
55 IMF (2007), SMEP, p. 41. 
56 Caribbean Development Bank online information.  Viewed at:  http://w ww.caribank.org/CDBWeb 
Pages.nsf/Basicinfo/$File/Basicinformation1.pdf?OpenElement. Dominica WT/TPR/S/190/DMA 
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identified weaknesses, for inst ance, in the audit practices, corporate governance, and loan 
underwriting standards.57 
149. The Ministry of Agriculture, DEXIA, the Domi nica Banana Producers Limited, the Inter-
American Institute for Cooperation in Agriculture  (IICA), and the Caribbean Agricultural Research 
and Development Institute (CARDI ) provide general services for the agriculture sector.  These 
include research, pest and disease control, traini ng, extension and advisory services, inspection 
services, marketing and promotion, and infrastructure services.  There are also some support programmes for diversification and fo r the development of agri-industries.  The agriculture sector also 
benefits from tax relief on most agricultural inputs.  This relief, which applied to the consumption tax, 
continues under the new VAT regime. 
150. Dominica has neither free zones nor legislation allowing for their establishment. 
(iii) Competition policy and regulatory issues 
(a) Competition policy 
151. Dominica does not have anti-trust legislation in  place, nor does it have a competition policy 
authority.  Under the revised Treaty of Chaguara mas, Chapter VIII provides for the enactment of 
harmonized competition policy legi slation in CARICOM members. 
152. Apart from utilities, there are no monopolies in Dominica. 
(b) Price controls 
153. Price controls are regulated by Supplies C ontrol Act No. 21 of 1979, implemented through 
Supplies Control Petroleum (Prices) Order (SRO) No. 16 of 1980, and its amendments;  Supplies 
Control Building Material (Cement) (Prices) Orde r (SRO) No. 19 of 1982;  and Supplies Control 
Order (SRO) No. 25 of 1986, all subject to amendment.  The Supplies Control Act authorizes the Minister responsible for trade to fix maximum prices for any goods. 
154. Dominica has eliminated price controls on many goods during the review period, a significant 
economic reform.  At the time of the previous report, more than 40 items were subject to the controls;  
that number has been cut to five items:  gasolin e, diesel, kerosene, liquefied petroleum gas, and 
cement.  Prices are adjusted every four weeks fo r the petroleum derivatives on the basis of average 
posted prices.  These price controls are set at a ma ximum, thus allowing companies to sell at lower 
prices if they choose.  For cement, adjustments are considered periodically, based on changes in 
import prices. 
(c) State-owned enterprises and privatization 
155. Pursuant to Article XVII:4(a) of the GATT 1994, Dominica notified to the WTO in 2001 that 
it maintains two state trading enterprises:  th e Dominica Import Export Agency (DEXIA) and 
Dominica Banana and Marketing Corporation (DBMC).
58 
156. The DBMC, a state-owned enterprise established in 1984, was wound up in 2002 with the 
divesture of its business assets and liabilities.  This  was in accordance with  the Dominica Banana 
Marketing Corporation (Divesture and Restructuring) Act No. 18 of 2002.  The industry was 
                                                      
57 IMF (2007), pp. 11-12. 
58 WTO document G/STR/N/4/DM A, G/STR/N/5/DMA, G/STR/N/6/DMA, 15 February 2001. WT/TPR/S/190/DMA Trade Policy Review 
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privatized and restructured, and a new company,  the Dominica Banana Producers Limited (DBPL), 
began operations on 1 August 2002.  The DBPL is ow ned by banana farmers and other private-sector 
interested parties.  In 2004, the DBPL was able to  pay a dividend to farmers.  It does not have a 
monopoly on the export of bananas, but it accounts for all exports of bananas to the European 
Communities (in cooperation with WIBDECO, th e Windward Islands Banana Development and 
Exporting Company). 
157. The DEXIA, established in 1986, is primarily responsible for the importation of basic food 
items and the promotion of Dominica's exports of agricultural produce (section (2)(ii)).  Under 
Dominica Export and Import Agency Act No. 14 of 1986, and Dominica Export and Import Agency 
(Amendment) Act No. 5 of 1993, DEXIA has the excl usive right to import sugar (brown and white 
sugar, except EEC No. 1 used by bottlers, and icing sugar), and bulk rice (wh ite and parboiled).  The 
private sector may import rice in packages of 10 kg or less.  There is also free competition among private traders with respect to icing sugar. 
158. DEXIA purchases the commodities over which it h as an exclusive right under competitive 
tender;  long-term contracts are generally negotia ted.  The quantities imported are based on previous 
years' consumption and/or estimated demands.  Th e mark-up on imports is determined by projecting 
an annual gross margin that will accommodate the administrative and operating cost of DEXIA's operations, given the contracted prices on commodities for the following financial year.  The Government announced plans in 2005 to restructure DEXIA, in order to improve its efficiency and 
accountability.  It is still seeking assistance to develop an action plan for restructuring DEXIA. 
159. There have been no other privatizati on activities during the review period. 
(iv) Government procurement 
160. Dominica is not a party to the WTO Plurilate ral Agreement on Government Procurement. 
161. Public finance figures indicate that public sect or current expenditure on goods and services 
totalled EC$45.9 million in 2006, some 6.8% of  nominal GDP, while capital expenditure totalled 
EC$84.1 million (12.4%). 
162. Dominica has no specific procurement office or board.  Most purchases are on a ministerial 
basis, although tenders boards may be established on an ad hoc  basis for large purchases (e.g., 
construction projects).  The authorities indicate that new procurement legislation is under 
consideration.  Based on examples from similar laws in other OECS countries, the new proposal is under development in the Ministry of Finance.  The initiative is still in the early stages of 
development, but a formal proposal might be presen ted to Parliament before the end of 2007.  The 
legislation will be based on best practices in the choice of modalities and other aspects of 
procurement. 
163. The current rules governing government procurem ent in Dominica are contained in Finance 
Administration Act No.4 of 1994.  Procurement fo r government agencies is centralized for large 
projects:  tenders must be submitted to govern ment tenders boards, established on an ad hoc  basis, 
which tend to base decisions on lowest price consider ations.  Procurement is open to all suppliers and 
no preferences are granted to domestic or region al suppliers. Tender notices are published in the 
Government Gazette .  The procurement of supplies is decided at agency level. 
164. Procurement for small amounts is decentralized.  In practice, there is no specified threshold 
between large and small projects.  For the procurement of supplies, local purchase orders are used in many cases and procurement is at ministry level;  quotations from three different local suppliers are Dominica WT/TPR/S/190/DMA 
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obtained, and the supplier is chosen on a price-compe titive basis.  In some cas es, decisions also take 
into account the quality and skill level of the bidder.  Preferences are not granted either to Dominican 
nationals or to other OECS or CARICOM countries.  This is generally not possible, however, for 
large projects as there may be no local firms capable of providing the necessary services.  Small and 
micro enterprises are favoured in community projects (e.g., a small road repair project). 
165. At present, most procurement is on the basis of a short-list and the prequalification of 
contractors.  Some bidding is done on the basis of publicized tenders.  Select ive tendering tends to be 
used for local community project s, where the communities themselves are invited to participate, 
however, according to the authorities, invitations ar e sent out to prequalified contractors in most 
cases;  and bids from non-invited contractors would al so be considered.  Open, publicized tendering is 
the norm for the largest contracts. 
166. Publicized tenders are published domestically , except when regional and international 
publication is required by a project’s funder (e.g., an international financial institution).  Even when a 
project is domestically pub lished, foreign suppliers of goods and services may still bid. 
167. Imports for government consumption are exempt from customs duties and from the 
consumption tax.  Imports of uncon ditional gifts of goods consigned to the state are also exempt from 
these charges. 
168. As a member of CARICOM, Dominica is participating in the development of a common 
policy framework on public procurement in a dvancing the CARICOM Single Market Economy. 
(v) Intellectual property rights 
169. In 2001, Dominica notified to the WTO its ma in intellectual property laws, and its new 
legislation with respect to geographical indicati ons, protection of layout-designs (topographies) of 
integrated circuits, protection of new plant varie ties, and marks, collective marks and trade names.59  
Dominica's IPR legislation was reviewed by the TRIPS Council in 2001.60  Dominica responded to 
questions posed by several WTO members, on issu es such as the types of intellectual property 
covered by its laws, the compliance of these laws with TRIPS provisions, the procedures followed in 
the granting of intellectual property rights, and the provisions for enforcement.61 
170. The two most significant reforms to Dominica’s in tellectual property laws in the review period 
were to the copyright legislation in 2003, and Dominica’s new status as a signatory to the WIPO 
Copyright Treaty. 
171. While new legislation was enacted in several areas during 1998-99 (i.e., within the period of 
the last Review), many of these laws have not yet en tered into effect.  The au thorities indicate that the 
regulations to bring into force the new acts on tr ade marks, patents, industrial designs, geographical 
indications, new plant varieties, and layout of integr ated circuits, were expected to be approved by 
Cabinet and gazetted by the end of the third quart er of 2007.  The establishment of an intellectual 
property office is still outstanding, and is under active discussion within Government.  While the 
                                                      
59 WTO documents IP/N/1/DMA/1, 13 June 20 01;  and IP/N/1/DMA/T/1, IP/N/1/DMA/P/2, 
IP/N/1/DMA/P/1, IP/N/1/DMA/L/1, IP /N/1/DMA/G/1, IP/N/1/DMA/D/1, and IP/N/1/DMA/C/1, 18 June 2001. 
60 WTO documents IP/Q/DMA/1, IP/Q2/DMA/1, IP/Q3/DMA/1, IP/Q4/DMA/1, 7 December 2001. 
61 Dominica’s responses are in WTO document IP/C /W/275/Rev.1, 8 October 2001.  The questions 
which were addressed to several WTO Members, came from Japan (IP/C/W/258, 27 April 2001), Canada 
(IP/C/W/261, 9 May 2001;  IP/C/W/261/Add.1, 13 June 2001), Switzerland (IP/C/W/263, 14 May 2001), the United States (IP/C/W/268, 31 May 2001), and the European Communities (IP/C/W/274, 12 June 2001). WT/TPR/S/190/DMA Trade Policy Review 
Page 36 
 
 
Patent Act No. 8 of 1999 provides for the establishmen t of a Registry of Companies and Intellectual 
Property, and of a Registrar, no decision has yet b een made regarding the establishment of such an 
office, nor its staffing and budget.  The administra tion of intellectual property laws remains in the 
hands of an official in the Ministry of Legal Affairs and Immigration, who serves as the acting 
registrar of intellectual property. 
172. Dominica is a member of the World Intellectual Property Organization (WIPO) and a 
signatory to a number of international agreemen ts on intellectual property rights (Table III.7). 
173. Dominica notified that the Ministry of Legal Af fairs, Immigration and Labour, is its national 
enquiry point with respect to international coope ration for the protection of intellectual property 
rights.  The Patents Act 1999  established the Companies and Intellectual Property Office;  though the 
office does not have a full complement of staff it is currently functioning.  The registration of patents, trade marks and industrial designs is administered by the Registry of Patents, Designs and Trade marks. 
Table III.7 
Dominica's membership in international agreements on intellectual property rights  
Convention/Agreement Date of membership 
The Convention Establishing the World Intellectual Property Orga nization (1970) 26 September 1998 
The Paris Convention for the Protection of Indus trial Property, Stockholm  Text (1883) 7 August 1999 
The Berne Convention for the Protection of Literary  and Artistic Works, Paris Text (1886) 7 August 1999 
The Patent Cooperation Treaty (1970) 7 August 1999 
International Convention for the Protection of Perf ormers, Producers of Phonograms, and Broadcasting 
Organizations (Rome Convention, 1961) 9 November 1999 
Nice Agreement Concerning the International Classificati on of Goods and Services for the Purposes of the 
Registration of Marks 8 September 2000 
 
Source : World Intellectual Property Organization. 
174. Data were not made available on the number of  trade marks, patents, and copyrights granted 
during the review period. 
(a) Trade marks 
175. New trade marks legislation, as provided in the Marks, Collective Marks and Trade Name Act 
No. 12 of 1999, has not yet entered into force.  Th is law will repeal the colonial-era Registration of 
United Kingdom Trade Marks, and the Merchandise Marks Act.  
176. Under the new legislation, the exclusive right  to a trade mark will be acquired through 
registration with the Registrar of Marks.  Trade marks are protected for a period of ten years renewable for consecutive similar periods  Non-use of a trade mark for a period of three years may 
entail the loss of the right to the exclusive use of the trade mark.  The Act provides for the right of 
priority of an earlier national or regional applicati on filed by the applicant in any State party to the 
Paris Convention or Member of the WTO.  The Act also specifies that the provisions of any 
international treaty in respect of marks and prot ection against unfair competition apply in Dominica 
and, in case of conflict with domestic legislation, pr evail over it.  The owner of a registered mark may 
grant licences with respect to it.  Collective marks may be registered and protected, but may not be the 
subject of a licence contract.  Acts of unfair comp etition are declared unlawfu l by Act No. 12 of 1999. Dominica WT/TPR/S/190/DMA 
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(b) Patents and industrial designs 
177. New patents legislation, as provided in the Patent s Act No. 8 of 1999, had not yet entered into 
force:  it is intended to replace section 91 of th e U.K. Patents and Designs Act of 1907.  The new 
patent legislation reflects the internationally accep ted criteria for registration of universal novelty, 
inventive step, and industrial applicability, along with a full search and examination procedure.  The 
period of protection for patents is 20 years.  There are no provisions for compulsory licensing. 
178. Similarly, the Industrial Designs Act No. 2 of 1998 has not yet entered into effect.  The Act 
provides that industrial designs may be registered if they are new prior to the date of filing, or the 
priority date of the application for registration.  Th e right to registration belongs by law to the creator, 
who is named as such in the registration of the indust rial design.  Protection is for five years from the 
filing date, renewable for two consecutive periods of five years. 
179. Dominican legislation establishes a right of prio rity for national, regional or international 
applications for patents or industrial designs file d in a country party to the Paris Convention or a 
WTO Member.  Although this Act repealed the United Kingdom Designs (Protection) Act, designs 
registered under the latter Act remain in fo rce for the unexpired period of protection. 
(c) Protection of layout-designs of integrated circuits 
180. Protection of Layout-Designs (Topographies) of Integrated Circuits Act No. 11 of 1999, which 
has not yet entered into force, will repeal the United Kingdom Designs (Protection) Act.  Under the new law, layout-designs must be original in order to be protected.  The right to registration belongs by law to the creator, and is transferable.  The term of  protection is ten years from the date of the first 
commercial exploitation, anywhere in the world, of the layout-design, or of the filing date for 
application for registration. 
(d) Protection of new plant varieties 
181. The Protection of New Plant Varieties Act No. 14 of 1999, which is not yet in force, will 
grant breeder's rights in respect of plant varieti es that are new, distinct, homogeneous, stable, and 
given a denomination that is acceptable for registration.   Applications for breeder's rights may be filed 
by citizens of Dominica, of a Contracting Party to  the International Convention for the Protection of 
New Varieties of Plants, or any other State that grants reciprocal treatment to Dominica.  Protection is for 25 years for vines, and forest, ornamental, and fruit trees, and 20 years for all other species. 
(e) Copyright 
182. Copyright Act No. 5 of 2003, which is not yet in force, will replace the Copyright (Dominica) 
Order, 1965, of the United Kingdom.  The new law pr ovides for the protection of literary and artistic 
works and for related matters.  Literary, drama tic, musical, and artistic works;  sound recordings, 
films, broadcasts or cable programmes;  and typ ographical arrangements of published editions will be 
protected by copyright provided th at such work is original and h as been written down, recorded or 
otherwise expressed in some material form.  Copyright  protection is for life plus 50 years.  According 
to the authorities, the Act’s enfo rcement regime is TRIPS-compliant. WT/TPR/S/190/DMA Trade Policy Review 
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(f) Enforcement 
183. Dominica submitted a response to the WTO checklis t on issues of enforcement in intellectual 
property.62 
184. The High Court has jurisdiction in cases of di spute relating to the application of all 
intellectual property rights.  Any pe rson who is aggrieved by a decisi on of the Registrar of Companies 
and Intellectual Property would have the right of appeal to the High Court.  Each piece of legislation 
includes provisions for criminal sanctions and de tails a minimum fine and/or a minimum term of 
imprisonment.  The following remedies may be orde red by the judicial authorities:  damages;  
injunctions;  seizure, forfeiture a nd destruction or disposal of infringing goods and material and 
implements used for their production;  and other reme dies.  Infringement of right may lead to a fine 
between EC$10,000 and EC$30,000, or to imprisonment for three to ten years, or both.  There is no 
provision requiring ex officio action by Customs o fficials.  All actions must be initiated by the 
copyright owner or exclusive licensee or by the owner (or authorized user) of the industrial property right. 
185. Customs authorities are not authorized to seize  goods that infringe marks to prevent them 
from entering the country, except in the case of c opyright, at the request of the right holder. 
IV. TRADE POLICIES BY SECTOR 
(1) A
GRICULTURE  
186. Agriculture, and specifically bananas, continu es to play a dominant role in the Dominican 
economy.  Dominica's non-banana crops include planta ins, citrus fruits, root crops and vegetables.  
The sector employs approximately a third of the lab our force and is an important foreign exchange 
earner.  The authorities have noted the positive potenti al impact of agriculture on poverty reduction in 
Dominica.63  Agriculture accounted for 18.5% of GDP in 2005, although the contribution of the sector 
to GDP has declined significantly  since the mid 1980s when it contributed up to 30%.  Reduced 
preferences and vulnerability to external shocks, su ch as frequent natural disasters, have contributed 
to the decline of the industry since Dominica's last TPR. 
187. The general performance of the agriculture sector  has declined steadily during the review 
period.  Agricultural output declined by 6.6% in 2001, and by 1% in 2002.64  Despite a slight 
resurgence in 2004, with growth of 3.5%, the sector contracted by  approximately 3.6% in 2005, 
mainly due to the performance of the banana industry65:  banana production fell by 16.7% to just 
under 11,000 tonnes.  This figure represents one fi fth of production levels  during the 1990s;  the 
contraction is consistent with the performance of th e sector in the five-year period to 2004, and is due 
to a range of factors, including a smaller farmer base  and natural disasters.  Output in the agriculture 
sector as a whole for 2006 however, increased by an estimated 1.6%, buoyed primarily by increases in 
banana production, which rose by approximately 5.4% due to slight increases in the grower base, 
more stable prices, and more favourable weather conditions.66  The total acreage under cultivation is 
estimated at around 3,000 hectares.67 
                                                      
62 WTO document IP/N/6/DMA/1, 30 May 2001. 
63 Commonwealth of Dominica (2006c). 
64 Caribbean Development Bank (2004). 
65 Caribbean Development Bank (2006). 
66 Caribbean Development Bank (2007). 
67 Caribbean Development Bank (2006). Dominica WT/TPR/S/190/DMA 
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188. Non-banana agricultural output has increased modes tly in recent years.  Livestock, forestry, 
and fisheries have all expande d since 2004, although growth in these subsectors has averaged 
approximately 1% in the last three years. 
189. Dominica's fishing sector is small and genera lly informal;  it employs an estimated 3,000 
fishers, but only 1,000 on a full-time basis.  The auth orities note that the majority of fishers operate on 
a part-time, subsistence basis, and that fish la ndings have amounted to no more than 1,400 tonnes 
annually during the period under review.  Domi nica is attempting to improve its fisheries 
infrastructure by development of a number of fi shing zones and upgrading facilities available to 
fishermen, as well as improving access to various t echnologies aimed at improving efficiency in the 
sector, and reducing waste and spoilage.  Policy e fforts to improve the economic potential of the 
fishing sector are in line with Dominica's integrated  development goals, including the sustainable use 
of its biological marine and coastal resources.68 
190. Dominica's average tariff on agricultural goods (W TO definition) is 25.8%, with the highest 
applied rate set at 150%.  This is also the bound ra te in some cases;  the final bound average in the 
agriculture sector is 116%.  Using the ISIC classi fication the average tariff on agriculture was 23.6% 
in 2006.  Dominica does not require trade licen ces for imports of most goods.  However, import 
licences are required for potatoes and wheat flour (C hapter III(1)).  Agricultural products constituted 
an average of 36.4% of Dominica's exports between 2000 and 2006 (Table AI.I). 
191. In 2006, a number of supermarkets in the United Kingdom announced that they would be 
purchasing bananas regularly from Dominica and ot her windward island banana  producing countries.  
The authorities in Dominica regard the arrangements as important for the sustainability of the banana 
industry.  In consultation with a range of stakehol ders and the World Bank and IMF, the authorities in 
Dominica are also attempting to promote growth in  the agriculture sector, primarily as part of an 
overall strategy to combat poverty.  The Govern ment has identified as me dium-term objectives, an 
increase in agricultural production and exports as a means to increase employment and agriculture-
related incomes.  The strategies for achieving these objectives include more aggressive pursuit of crop 
diversification; increased emphasis on trade facilitati on and investment in the sector;  and increasing 
research and development to assist farmers.69 
(2) MANUFACTURING  
192. Dominica produces relatively low value ma nufactured goods, with production revolving 
around, inter alia , agri-processing, some assembly of plastic  and metal goods, and textile production.  
Agri-industry includes beverage production using a variety of raw materials, including coconuts, 
citrus, and other fruits.  Dominica also produces some  chemicals, including dentals creams, as well as 
soaps and lotions.  
193. The performance of the manufacturing sector in Dominica has been inconsistent during the 
review period:  manufacturing contracted by 2.2%70 in 2002, but expanded consistently between 2004 
to 2006, by an average of 4.1%.71  Performance in the sector is dependant on the overall performance 
of one dominant player primarily producing dentals creams and soaps. 
194. Manufacturing is an important contributor to Dominica's exports, accounting for an estimated 
58.6% of the total in 2006 (Table AI.1).  Domini ca's average tariff for non-agricultural goods (WTO 
                                                      
68 Commonwealth of Dominica (2006c). 
69 Commonwealth of Dominica (2006c). 
70 Caribbean Development Bank (2004). 
71 Caribbean Development Bank (2007). WT/TPR/S/190/DMA Trade Policy Review 
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definition) was 9.5%.  The average tariff on manufactured goods was (ISIC) 11.5%, while tariffs 
range between 0-165% (Table III.2). 
195. The Dominican authorities are placing greater  policy emphasis on export promotion in 
manufacturing and other sectors, through a range of strategies, including the structures to conduct 
market research, and assisting local producers devel op business plans.  The principal agency for such 
programmes is DEXIA, a statutory or ganization responsible to the Ministry of Trade.  There are also a 
range of incentive schemes to promote investment in manufacturing (Chapter III (3)(ii)). 
(3) SERVICES  
(i) Main features 
196. Dominica made sector-specific commitments under the General Agreement on Trade in 
Services, in four of the 12 main service are as (20 out of the 160 services subsectors:  financial 
(reinsurance);  tourism and travel related (hotel  development); recreational, cultural and sporting 
(entertainment and sporting services);  and co mmunications (courier and telecommunications 
services).  Except in telecommunications, no market access or national treatment limitations have been scheduled on cross-border supply and cons umption abroad, unless the provision of the service 
was considered technically unfeasible.  In contrast, limitations on commercial presence were 
scheduled in most areas wher e commitments were undertaken. 
197. Dominica has scheduled horizontal market access limitations on commercial presence and 
movement of natural persons.  As for the former, foreign service providers are subject to a specific 
withholding tax on foreign investors and specific re gulations on landholding.  In addition Dominica 
reserves a number of small business opportunities fo r nationals, permitting fore ign suppliers only on 
the basis of an economic needs test.  As regards m ovement of natural persons, employment of foreign 
natural persons is normally limited to people with ma nagerial and technical skills that are in short 
supply or not available in Dominica.  Dominica  has not listed any Article II (MFN) exemptions.
72 
(ii) Telecommunications 
198. Dominica made GATS commitments on telecommunications services, including the 
competitive principles set out in the Reference Pape r under the Fourth Protocol, which entered into 
force on 27 June 2000.73  Dominica's GATS Schedule reserves commercial presence in voice 
telephony (both fixed and mobile), packet-switche d data transmission, circuit-switched data 
transmission, telex, telegraph, private-leased circuit,  and facsimile services for the exclusive operator.  
The supply of electronic mail, voice mail, on-line info rmation and data-base retrieval, electronic data 
interchange, Internet and internet access service s (except voice), enhanced value-added facsimile 
services and some other services is open to other s uppliers, provided the network of the exclusive 
operator is used to supply these services. 
199. Dominica's GATS commitments contrast with the considerably more open 
telecommunications market situation.  Th ere are no limits on foreign ownership of 
telecommunications companies.  Telecommunications  companies and consumers are not subject to 
any specific telecom taxes.  There are no sector-specific fiscal incentives in the sector. 
200. Telecommunications in Dominica is under the responsibility of the Minister for Housing, 
Lands, Telecommunications, Energy and Ports.  The National Telecommunications Regulatory 
                                                      
72 WTO document GATS/SC/27, 15 April 1994. 
73 WTO document GATS/SC/27/Suppl.1, 11 April 1997. Dominica WT/TPR/S/190/DMA 
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Commission of Dominica is responsible for regulating the sector.74  At the regional level, the Eastern 
Caribbean Telecommunications Authority (ECTEL) has an important advisory and policy-coordinating role (see Overview Report).  The main legislation governing the sector is the 
Telecommunications Act (No. 8, 2000,  as amended by Act No. 17 of 2001)
75, which is substantially 
the same as the respective telecommunications laws of the other OECS ECTEL-member states.  This 
law, inter alia , specifies criteria for the granting of a licence, universal service conditions that may be 
applied, and procedures for concluding interconn ection agreements (see Overview Report).  The 
Telecommunications (Retail Tariff) Regulations SR O 18 of 2004, stipulate that where there is 
effective competition in the telecommunications market, licensees may set tariffs.  The NTRC may 
designate services where there is insufficient comp etition as regulated services.  Within 30 days of 
such a designation, the telecommunications provi der must file an applicable tariff with the 
Commission for approval.  The tariffs for regulated services provided by Cable and Wireless in Dominica are determined in accordance with a Pri ce Cap Plan which was agreed between Cable and 
Wireless and the Government of Dominica.  There are harmonized Price Cap Plans in all the ECTEL 
States. 
201. Key changes since liberalization have been a major increase in mobile penetration (from 10% 
in 2002 to 84% in 2006) and a surge in foreign direct  investment in 2004 and 2005, which tailed off in 
2006.  There has been a gradual incr ease in internet penetration, but this remains low at 6.6%.  Local 
traffic from fixed lines has decreased slightly, while other indicators have remained reasonably stable 
(Table IV.1). 
Table IV.1 
Telecommunications statistics, 2002-06 (March) 
 2002 2003 2004 2005 2006 
Telecommunications revenues (EC$ million) 87 83 68 82 89 
Fixed line penetration (%) 32 34 35 30 28 
Mobile penetration (%) 10 18 33 62 84 
Internet penetration (%) 3 6 8 9 6.6 
Telecommunications investment (EC$ million) 13 8 27 44 16 
Employment in telecommunications 283 273 275 282 294 
Local traffic originating from a fi xed line (million minutes) .. 84 72 60 70 
International outgoing traffic (fixed and mobile) (million minutes) 9 9 8 10 13 
 
.. Not available. 
 
Source:  ECTEL. 
202. As at March 2006, eleven individual licences had been issued:  five for fixed-line services, 
three for public mobile services, and three for in ternet networks and services.  There was some 
consolidation in the mobile market with the ac quisition of Cingular Wireless by Digicel in 2005.76 
203. There are four providers of fixed-line services who, according to the authorities, are 
operational (Cable and Wireless;  Marpin Te lecoms and Broadcasting Company Ltd;  SAT 
Telecommunications Ltd;  and Orange Dominica Ltd77).  A fixed line service licence has also been 
granted to IRISTEL (DA) Inc., but this company had not yet begun operations as at July 2007.  Some 
                                                      
74 National Telecommunications Regulatory Commission of Dominica online information.  Viewed at:  
http://www.ectel.int/ntrcdm/index.htm. 
75 Telecommunications Act No. 8, 2000.  View ed at:  http://www.ectel.i nt/ntrcdm/Files/Laws, 
Regulations%20And%20Agreements/Telecommunications%20Act%208%202000.pdf. 
76 ECTEL (2006). 
77 As at July 2007 Orange Dominica Limited had installed some fixed-line public payphones, but had 
not yet started offering private fixed-line services. WT/TPR/S/190/DMA Trade Policy Review 
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local fixed line tariffs which are regulated by a Pri ce Cap Plan, have fallen.  According to ECTEL, as 
a result of the plan, off-peak tariffs for local fixe d-to-fixed-line calls have decreased by 20%, peak 
fixed-to-mobile tariffs have falle n by 7%, and off-peak fixed-to-mob ile tariffs have fallen by 8%.  
Tariff rates were not available. 
204. Certain other fixed-line tariffs have not change d since the introduction of the Price Cap Plan 
on 1 January 2005.  These included peak time local fixed-to-fixed line calls (EC$0.07 per minute);  international tariffs for calls to the United Stat es (EC$1.65 per minute);  fixed line calls to other 
ECTEL Member States (EC$0.50 per minute) and calls to non-member Caribbean islands (from 
EC$0.66 to EC$0.99 per minute).  The residential fixed line access charges have increased slightly, 
from EC$20 per month to EC$24 per month.  The aut horities confirmed that call-back and by-pass are 
not prohibited in Dominica. 
205. Competition has been introduced in the mob ile market with two additional licensees 
commencing operations in addition to Cable and Wireless (Digicel Dominica Ltd. and Orange 
Dominica Ltd.).  According to ECTEL more than 90%  of mobile subscribers have pre-paid mobile 
phones.  Tariffs for mobile-to-mobile ranged from EC$0.50 to EC$0.60 per minute for calls on the 
same network, to EC$0.85 for calls between networ ks in 2006.  Mobile-to-fixed tariffs ranged from 
EC$0.50 to EC$0.90 per minute.  As noted by the authorities, the growth in cellular use has been driven primarily by increases in th e availability of prepaid mobile services and affordable handsets. 
206. There are two providers of internet networks and services in Dominica (Cable and Wireless;  
Marpin Telecoms and Broadcasting Company Ltd).  SAT Telecommunications Ltd. has been granted 
a licence but had not started operations as at July 2007.  While internet penetration levels remain 
relatively low, there has been a marked shift from dial-up to high-speed internet access;  74% of 
subscribers had broadband access in 2006, compared  with 40% in March 2003.  This reflects the 
greater affordability of high speed internet access;  rates have declined by up to 50%. 
(4) F
INANCIAL SERVICES  
207. All on-shore and offshore financial services sector s, with the exception of domestic banks, are 
regulated by the Financial Services Unit.  This was established in 2004 through a Cabinet Decision.  
A bill is before Parliament to give th e FSU its formal authority and mandate. 
208. Dominica made GATS specific commitments on reinsurance services.  It has bound 
unrestricted market access and national treatment for cross-border supply and consumption abroad.  
Commercial presence is subject to the conditions set out in the Insurance Act (market access) and a 
withholding tax (national treatment), and the movement  of natural persons is subject to work permits 
and immigration regulations. 
(i) Onshore financial services 
(a) Banking 
209. The Eastern Caribbean Central Bank has sole responsibility for the regulation of domestic 
commercial banks. 
210. ECCB member countries have harmonized, in s ubstance, their national banking legislation, 
based upon a template Uniform Banking Act (see Over view Report).  The main legislation governing 
onshore banking services is Banking Act No. 16 of 2005.  The amendments to the Uniform Banking 
Act and hence the national Act (No. 16 of 2005), ar e to upgrade legislation in relation to the Basle Dominica WT/TPR/S/190/DMA 
 Page 43 
 
 
core principles.  These changes include strengthened oversight of financial institutions by the ECCB, 
and more stringent and systematic repor ting requirements for such institutions. 
211. Any person or business intending to carry out banking services in Dominica must obtain a 
licence from the Ministry of Finance, Planning and Overseas Nationals, and fulfil the licensing 
conditions (see Overview Report).  These include that  banks (local and foreig n financial institutions) 
must have a place of business in Dominica, which may be an office or a mobile office.  Dominican citizens and companies are not restricted from bo rrowing or placing deposits with banks abroad.  
Dominica no longer maintains exchange controls on capital and non-trade current transactions (see 
Chapter 1).  There are no limitations on foreign inv estment in onshore banks in Dominica.  Foreign-
owned banks licensed and incorporated in Dominica are subject to the same requirements as locally 
owned and incorporated banks and may provide the sa me services.  Foreign branches are required to 
provide a statement of no objection from their home regulatory authority.  There are no nationality or citizenship requirements for bank managers or directors. 
212. There are three branches of foreign-owned co mmercial banks operating in Dominica:  Bank 
of Nova Scotia;  First Caribbean Internati onal Bank (Barbados) Ltd.;  and RBC Royal Bank of 
Canada.  The National Bank of Dominica is wholly  locally owned and incorporated.  The Government 
of Dominica owns 48% of the shares of the National Development Bank.
78  In 2006, the weighted 
average spread between deposit and lending interest  rates was 5.8 percentage points (3.4 deposit, 
9.2 lending).79 
213. Dominica has one development bank, the Domini ca Agricultural, Industrial and Development 
Bank (AID).  The AID's main source of funds is  from the Caribbean Development Bank.  Its key 
areas of funding include:  agriculture, tourism, ma nufacturing, services, transportation, mortgage, and 
education.  It offers consumer lo ans as well as venture capital financing.80  According to the 
authorities, recent measures have been taken to strengthen the AID with respect to addressing non-
performing loans, and erosion of the bank's capital base, and to strengthening oversight and internal 
controls. 
214. There are 16 credit unions in operation in Dominica.81  Four provide checking account 
services for their members.  The Dominica Coopera tive Societies League Ltd (DCSLL) represents 
and provides a variety of services to all of Dominica's credit unions.82  According to the DCSLL, over 
70% of Dominica's population belongs to one of the credit unions, which accounted for around 25% 
of total financial sector loans and 30% of depos its.  The IMF has noted that credit union balance 
sheets have weakened over time, and that an in spection of the largest credit union, the Roseau 
Cooperative Credit Union (RCCU), generated concer ns about the level of non-performing assets, 
account handling practices, and the quality of the audit process.  The IMF further noted that the Financial Services Unit (FSU) would be work ing with the RCCU to address the identified 
shortcomings, and would carry out targeted inspections  of the other credit unions.  It advised that the 
FSU be provided with legal authority for dir ect supervision of the non-bank financial sector.
83  
                                                      
78 ECCB online information.  Viewed  at:  http://www.eccb-centralba nk.org/Financia l/fin_banks.asp. 
79 ECCB (2007). 
80 AID Bank online information.  Viewed  at:  http://www.aidbank.com/index.html. 
81 ECCB online information.  Viewed  at:  http://www.eccb-centralbank .org/Financial/fin _structure.asp. 
82 DCSLL online information.  Viewed at:  http://www.dcsll.org.  The services provided by the DCSLL 
are:  education and training;  advisory;  public relations/pro motions; representation/advocacy;  
supervision/fostering improved standards;  bonding and insurance;  central finance facility;  supplies;  and 
depository. 
83 IMF (2005). WT/TPR/S/190/DMA Trade Policy Review 
Page 44 
 
 
According to the authorities, amendments to the Co-operative Societies Ac t (No. 15 of 1996) and 
revised regulations have been dr afted but not yet implemented. 
(b) Insurance 
215. There are 19 registered insu rance companies in Dominica84 (up from 18 in 1999).  All but one 
are foreign-owned, mainly by companies located  in other Caribbean countries, Europe, and the 
United States.  Five provide long-term insurance, twelve provide general in surance, and two provide 
both long-term and general insurance.  There are no reinsurance companies re gistered in Dominica. 
216. The main legislation governing onshore insu rance is Insurance Act No.17 of 1974, as 
amended in 1990.  New insurance legislation,  which would be harmonized among all OECS 
countries, has been drafted but not yet enacted ( see Overview Report).  Supervision of insurance 
business is in the hands of the Supervisor of In surance within the Financial Services Unit of the 
Ministry of Finance. 
217. Insurance companies must put down a statutor y deposit, which is higher for foreign-owned 
companies than locally owned companies; and highe r for life insurance than general insurance.  
Deposit requirements for life insurance are:  EC$100,000 for foreign companies and EC$50,000 for 
local companies;  and for general insurance ar e:  EC$30,000 for foreign companies and EC$20,000 
for local companies, or, in each case, 30% of prem ium income from general insurance in Dominica 
during the financial year preceding the date of de posit, whichever is less.  Minimum paid-up capital 
requirements are not stipulated in the Insurance Act.   All other requirements apply equally to foreign 
and local companies.  There are no residency requi rements relating to directors or managers of 
insurance companies.  There is no legislation preventing Dominican citizens or companies from 
obtaining insurance coverage from firms located abroad. 
(ii) Offshore financial services 
218. Offshore banking in Dominica started in the mid 1990s.  Within the Ministry of Finance, the 
FSU is responsible for regulating o ffshore financial services.  The ma in legislation governing offshore 
banking is Offshore Banking Act No. 8 of 1996 (as ame nded by Act No. 2 of 1997;  No. 18 of 1999;  
and No. 16 of 2000). 
219. In June 2000, Dominica was identified as a non- cooperative jurisdiction by the Financial 
Action Task Force (FATF) (see Overview Report).  Among the main concerns identified were that:  
Dominica had outdated legislation on proceeds of crime, and mixed financial services legislation;  that company law provisions created obstacles to the identif ication of ownership;  and the offshore sector 
appeared to be largely unregulated.
85  In addition to changes to exis ting legislation, Dominica set up 
the Money Laundering Supervisory Authority (MSLA)  and the Financial Intelligence Unit in 2001 
and created an Offshore Advisory Council.  In  October 2002, the FATF removed Dominica from its 
list of non-cooperative countries. 
220. Dominica had one offshore bank, down from six in 2000.  According to the authorities, these 
bank closures were as a result of the FATF report and subsequent reforms. 
221. Offshore banks may only conduct banking business in currencies other than EC$.  Under the 
Offshore Banking Act, companies must have a physi cal presence in Dominica and two individuals as 
their authorized agent and alternate agent residing in the country; they must maintain a minimum 
                                                      
84 ECCB online information.  Viewed  at:  http://www.eccb-centralbank .org/Financial/fin _structure.asp. 
85 FATF (2000). Dominica WT/TPR/S/190/DMA 
 Page 45 
 
 
permanent capital of US$1 million or 5% of depos it liabilities, whichever is greater, as well as 
liquidity with a major international bank of at least 12% of total assets.  At the commencement of 
activities, the paid-up capital must be at least US $1 million in cash.  Offshor e banks are required to 
maintain a reserve fund to which they must transfer  not less than 25% of their yearly profit.  The 
annual licence fee for offshore banks is US$8,000. 
222. Offshore insurance companies are regulated by Exempt Insurance Act No. 14 of 1997  and 
the Exempt Insurance (Amendment) Act of 2000.   There are no licensed offshore insurance 
companies in Dominica. 
223. Under the Exempt Insurance Act, to benefit from the status of exempt insurance, a company 
must be incorporated in Dominica under the Companies Act 1994.86  All risks and premiums must 
originate from abroad, and shareholders must reside outside Dominica.  Some nationality 
requirements also apply:  at least one of the directors of the licensed company must be a resident citizen of Dominica.  Minimum paid-up capital must be US$100,000.  Various tax exemptions apply.  
The Exempt Insurance (Amendment) Act 2000, inter alia :  specifies the criteria the Minister should 
consider when deciding whether to issue or refuse a licence;  lays out the supervisory powers and 
duties of the Insurance Supervisor, and the Superv isor's rights to access information;  introduces 
penalty fees for the late or non-submission of audi ted financial statements;  and introduces special 
provisions on mutual assistance in criminal matters. 
(iii) Air transport 
224. In 2006, there were nearly 85, 000 air-passenger arrivals in Dominica.  Both of Dominica's 
airports, Melville Hall and Canefield, are owned by the Government.  Neither provides direct flights 
to major international destinations.  A project to expand Dominica's air transport infrastructure, the 
Air Access Improvement Programme, is under way w ith completion scheduled for June 2008.  It 
involves:  extending and upgrading the terminal building at Melville Hall airport to make it 
International Civil Aviation Organization (ICAO) compliant, and to satisfy post-2001 security 
requirements;  extending and lighting the runway ;  building sea defences;  introducing facilities to 
enable night landings as well as navigation ai ds and communication equipment;  and expanding 
parking facilities.  In addition, road transport from the airport is being upgraded.  The Government of 
Dominica sees these improvements as key to enhancing Dominica's tourism sector and thereby its economic growth.
87  A stated long-term objective of the G overnment is to work with the tourism 
industry on an international airport providing jet access.88 
225. In volume terms, the vast majority of Domini ca's cargo trade is shipped by sea.  In 2006, 
102,722 kg of cargo arrived by air, and 270,000 tons by sea. 
226. The main legislation governing air transport in Dominica is Civil Aviation Act No. 21 of 
2005. There are no foreign investment restrictions on ownership of domestically incorporated carriers.  
Currently, Dominica does not have any do mestically incorporated airlines. 
227. The Minister of Housing, Lands, Telecommunicati ons, Energy and Ports is responsible for air 
transport in Dominica.  At the regional level, safe ty and security oversight is provided by the Eastern 
Caribbean Civil Aviation Authority (ECCAA) (see Ov erview Report).  The Air Transport Licensing 
Board, which is part of the Ministry, advises the Mini ster in relation to applications for air transport 
licences as well as tariffs to be charged for air passenger and cargo transport.  Under the Civil 
                                                      
86 WTO (2001). 
87 Commonwealth of Dominica (2005). 
88 Ministry of Tourism and National Development Corporation (2005). WT/TPR/S/190/DMA Trade Policy Review 
Page 46 
 
 
Aviation Act (2005), licences are granted taking into acc ount factors such as the existence of other air 
services in the area, the period for which air transpor t services have been operated by the applicant or 
by other operators, safety, continuity, regularity and efficiency concerns, the financial resources of the 
applicant, and the type of aircraft to be used.  Although there are no specific nationality requirements, 
the Civil Aviation Act empowers the Minister in ch arge of civil aviation, to refuse an air service 
licence to any person who is not a citizen of Domi nica or a body incorporated in the Dominica and 
substantially controlled by citizens of Dominica.89 
228. Responsibility for airport administration lies with the Dominica Air and Sea Ports Authority 
(DASPA), established by the DASPA Act of 8 Dece mber, 2006.  Previously, airports were under the 
Airport Services Division within the Ministry of Housing, Telecommunications, Energy and Ports.  
The Authority is charged with providing a coordinate d and integrated system of airports, seaports, and 
port services and managing the assets, liabilities, r esources and functions of the ports within the 
overall policy of the Government.  The law, however, allows the Authority to contract out any of these responsibilities, with the authorization of the Minister:  in practice ground handling is provided 
by private local companies.  The authorities note that the DASPA is expected to provide greater 
operational efficiency in ports and airports, and to generate revenue;  thus they expect more joint 
partnerships with the private sector in the future. 
229. Dominica levies a travel tax on air tickets purchased, an embarkation duty on passengers 
leaving Dominica by air, and a security charge levied on passengers (see section(v)). 
230. Dominica is not a contracting party to the ICAO.  It has bilateral air services agreements with 
France;  CARICOM (the Multilateral Air Transport Agreement);  and the Netherlands.  Dominica has 
not made any GATS commitments on air transport services.
90 
(iv) Maritime transport 
231. In volume terms, the vast majority of Domini ca's cargo trade is shipped by sea.  In 2006, 
270,000 tons of cargo arrived by sea, compared with 102,722 kg by air.  The volume of sea cargo has 
grown gradually over the review period.91  In 2006, nearly 39,000 passengers arrived by sea (just 
under half of arrivals by air).  The Ministry of  Housing, Lands, Telecoms, Energy and Ports is 
responsible for maritime transportati on policy formulation and management. 
232. The International Maritime Act of 2000 establis hed an International Ships Registry, for 
commercial vessels providing international maritime services.  International business companies and foreign maritime corporations that fly the Dominican flag are not taxed on their income or assets.  
According to the authorities, there are 156 vessels re gistered in the International Ship Registry.  
Various fees and charges are levied on ships registered  on the international ship registry, including an 
initial, one-time registration fee of EC$3,500 fo r ships over 1,000 NT, and annual fees that vary 
according to the net tonnage of the vessel.
92  According to an agreemen t between the Government of 
the Commonwealth of Dominica and the Dominica Mariti me Registry Inc., the Government's return is 
13.5% of the gross revenues when the registry's gross revenues are under EC$10 million.  No figures 
were available on the revenue accruing to the Government from the registry. 
                                                      
89 WTO document WT/TPR/S/85/DMA, 7 May 2001. 
90 WTO document GATS/SC/27, 15 April 1994. 
91 The volume of sea cargo arrivals are:  219,378 tons in 2002;  236,218 tons in 2003;  247,334 tons in 
2004;  265,457 tons in 2005;  and 270,323 tons in 2006. 
92 These fees are EC$1,500 + EC$0.40/NT for less than 25,000 net tons, and EC$0.20/NT for over 
25,000 net tons.  All vessels of 1,000 NT and below have a first-year registration cap of EC$2,500.  Follow-on annual services fees have a EC$1,400 cap. Dominica WT/TPR/S/190/DMA 
 Page 47 
 
 
233. Dominica has around 65 domestic vessels.  Ov ersight responsibility for ships engaged in 
international trade, rests with  the Commonwealth of Dominica Ma ritime Administration (MARAD), 
which reports to the Minister of Finance and Planni ng.  Records relating to vessels are maintained at 
an office in the United States.  In 2005, Dominica  Maritime Registry Inc. (DMRI) also took over 
responsibility for the domestic ships register.93 
234. The ports of Dominica are owned and administered by the state-owned Dominica Air and Sea 
Ports Authority (DASPA), which has the authority to manage Dominica's ports and provide all port 
services.  The law establishing DASPA, opens the door for the Authority to contract out any of these 
responsibilities, with authorization of the Minist er.  Dominica has five ports:  Woodridge Bay 
Harbour and a ferry terminal, both in Roseau;  Longh ouse in Portsmouth;  Anse de Mai;  and Cabrits 
Cruise Ship Berth in Portsmouth.  As noted in the previous review of Dominica, cabotage services are 
open to foreigners.  According to the authorities, on average, 15 units are unloaded per hour at 
Dominica's commercial ports 
235. In 2003, the costs of freight as a percentage of the value of imports in Dominica was 7.4%.  
This is below the developing country average (9.1%).94 
236. Dominica levies head taxes (which includes an environmental fee) on cruise ship passengers;  
a travel tax on tickets purchased for vessels leaving Dominica; and an embarkation duty on passengers leaving Dominica (section (v) below). 
237. Dominica is a member of the International Maritime Organization (IMO) and participates in a 
number of its conventions.
95  The authorities note that over the re view period, investments have been 
made to bring the main ports into compliance with the International Ship and Port Facility Security 
Code (ISPS Code), and work is ongoing  with respect to other facilities. 
(v) Tourism 
238. Dominica has made GATS specific commitments on "hotel development", limited to hotels 
with a capacity in excess of 50 rooms.  Developm ent of hotels with a lower number of rooms is 
subject to an economic needs test. 
239. In 2006, Dominica attracted 83,916 tourists (sta yover);  the Caribbean was the main source of 
stayover tourists (46,579 tourists) followed by the United States (22,011).  Cruise passenger numbers 
reached nearly 380,000.  Visitor expenditur es in 2006 were estimated at EC$185.3 million.96 
240. The Minister of Tourism is responsible for policy formulation and implementation in the 
tourism sector.  Dominica's National Development Corporation (NDC) has responsibility for 
promoting Dominica as an investment location and as a tourist destination.97  The NDC however was 
expected to be replaced by two new agencies in mid 2007 (Chapter III(3)(ii)).  The Dominica Hotel 
and Tourism Association, and the Dominica Water S ports Association are private-sector associations 
in the tourism industry. 
                                                      
93 The Registration of Ships Act No. 42 of 1975, which governed the registration of ships in Dominica 
other than those registered under the International Maritime Act, has been repealed. 
94 UNCTAD (2005). 
95 For the complete list see IMO online informati on.  Viewed at:  http://www.imo.org/includes/ 
blastDataOnly.asp/data_id%3 D18214/status.xls. 
96 ECCB (2006a). 
97 The functions of the NDC are set out in the Article 11 of the National Development Corporation Act 
of 1988. WT/TPR/S/190/DMA Trade Policy Review 
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241. Tourism is seen as one of Dominica's future growth sectors.98  In January 2006, the 
Government adopted a national tourism policy, "Dominica Tourism 2010", as well as an action plan 
to implement the policy.99  This includes developing Dominica's niche for attracting tourists seeking 
nature-based, cultural and heritage, and soft-advent ure holidays.  Upgrading Dominica's domestic 
tourism infrastructure has been identified as a key ch allenge, particularly with respect to air access, 
but also with respect to roads and ports.  Improve d destination marketing and investment promotion 
policies are envisaged, as well as supportive polici es, such as human resources development and 
crime reduction.  Dominica has re ceived support to develop its tour ism capacity from donor agencies 
(mainly the EC, CDB and USAID) and international financial institutions.100 
242. Under the Hotels Aid Act (1991) and the Fiscal  Incentives Act, the Minister responsible for 
tourism may grant licences to investors constructing hotels (of not less than five bedrooms) to import building materials and articles of hotel equipment free of all customs duties.  Customs duties already paid may also be drawnback.  Imports for capita l investments, up until the commencement of the 
hotel's operations may also be exempt from VA T under the Value Added (Amendment) Act 2006.  
Under the Income Tax Act, No.37, 1982, as amended by Act No. 12 of 1997, income tax exemptions 
are available to property developers for the construc tion and extension of hotels;  this tax relief is 
available for a maximum of twenty years.  Tax re lief, may be granted subject to certain terms and 
conditions, for example, investment thresholds, and employment of Dominican nationals.  Most hotels 
and guest houses in Dominica are locally owned.  There has not been a big influx of foreign 
investment into hotel development, although the Go vernment is in active discussions with foreign 
investors regarding a major hotel and villa developm ent at Woodford Hill.  No figures were available 
on the revenue forgone by the Government as a result of the incentives provided. 
243. The Tourism (Regulations and Standards) Act (No. 19, 2005) provides for the creation of a 
Quality Assurance Unit to develop and monitor st andards for the tourist industry, and a licensing 
committee to assess applications for tourism services for submission to the Minister for approval. 
244. A number of tourism-related taxes and charg es are levied by the Government, including an 
embarkation of EC$55 on passengers leaving by air or sea (with a lower rate of EC$45 for 
nationals)
101;  a cruise passenger head tax of US$5;  a hotel room tax of 10% (levied under the Value 
Added Tax Act No. 17 of 2005);  and a travel tax of 7.5% on tickets (for travel by air and sea) 
purchased or issued in Dominica in respect of  a journey commencing anywhere, or purchased or 
issued anywhere in respect of a journey commenc ing in Dominica (Travel Tax Act 2003).  Figures on 
the amount of government revenue genera ted by these charges was not available. 
                                                      
98 OAS online information.  Viewed at:  http://w ww.oas.org/ TOURISM/incentives/dominica.rtf. 
99 Ministry of Tourism, Industry and Private Sector Relations online information.  Viewed at:  
http://tourismdominica.dm/documents.cfm. 
100 Projects under way included:  EC-Eco-tourism Development Programme, co-funded by the 
Government of Dominica;  CIDA-funded Nature Island  Standards of Excellence Ph ase II (CPEC project);  
Investment Opportunity Program funded by USAID and delivered by Carana Corporation;  CIDA-funded 
Financial Services Project – CPEC;  Upgrading of Eco-tourism Sites funded by CDB;  Republic of China – Tourism Marketing and Promotion Program, co-funded by the Government of Dominica;  Caribbean Regional 
Environmental Program (CREP), funded by the EC;  Small Tourism Enterprises (STEP) Project, funded by the 
OAS and USAID;  USAID-funded Green Globe 21 Destin ation Program;  Waitukubli National Trail Program, 
funded by the EC;  USAID-funded Caribbean Hotel Envi ronmental Management Initiative;  and EC Enterprise 
Development Fund.  Dominica Tourism 2010 Policy (January 2005), Viewed at:  http://tourismdominica.dm/ 
documents/DominicaNationalTourismPolicy ReportFinal.doc. 
101 Embarkation Duty (Amendment) Act No. 5 of 2004. Dominica WT/TPR/S/190/DMA 
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(vi) Professional services 
245. Dominica did not make any GATS specific commitments on professional services. 
246. According to the authorities, the Government has the exclusive power to legislate on the 
practice of professions.  There is no single law re gulating professional services:  there is legislation 
governing engineers, architects, lawyers, and doctors .  According to the authorities, no professions are 
specifically reserved for nationals by law, nor are there residency requirements for the practice of any profession.  No mutual recognition agreements have been signed. 
247. Since 2003, practicing engineers must be register ed by the Board of Engineering, established 
under Engineering Profession Act No. 22 of 2002; and pr acticing architects must be registered by the 
Board of Architecture, established under Architecture Profession Act No. 4 of 2003.  The Board of 
Engineering and the Board of Architecture have re gulatory responsibility for their professions and, 
inter alia , are mandated to assess qualifications and expe rience, and conduct examinations of persons 
applying for registration. 
248. Dominica does not yet have an accreditation body in place, however an Accreditation Act, 
which was passed in Parliament in 2006 (Act No. 13 of 2006), provides for the establishment of such 
a body, and sets out the process and procedures by which an institution or programme of higher 
education would be accredited.  The Trade and Pr ofessional Licences Act requires the payment of a 
specified fee for the practice of a scheduled list of  professions.  According to the authorities, this, 
however, is largely a revenue-generating measur e and is not tied to a regulatory objective. 
249. A number of steps are being taken at the nationa l and CARICOM levels to give effect to the 
requirements of Chapter III of the Revised Treaty of  Chaguaramas, which relates to the right to 
establishment and the provision of services within CA RICOM.  According to the authorities, a Draft 
Model Professionals Bill has been deve loped at the CARICOM level, which inter alia , deals with 
requirements and procedures for registration and licensing of certain services providers, including 
professional service providers.  This should form the framework for laws for specific professions to be transposed into national legislation. 
250. As the result of a CARICOM initiative to enha nce the free movement of skilled persons, 
professional service providers, by virtue of bei ng university graduates and CARICOM nationals may 
enter and work in Dominica without a work pe rmit under the Caribbean Community Skilled Nationals 
Act No. 30 of 1995.
102 
251. Dominica is a contracting party to the CA RICOM Agreement Establishing the Council for 
Legal Education (see Overview Report).  In 2003, Dominica enacted legislation (Act No. 2 of 2003) 
to give effect to the provisions of the Institute of Chartered Accountants of the Eastern Caribbean 
Agreement, and is now a member of the Institute;  a local chapter was set up in Dominica in 2006.  
The Institute does not yet have responsibilities fo r mandatory licensing of chartered accountants.  
Chartered accountants must be aff iliated with, and licensed, by intern ational accounting bodies, such 
as the ACCA and IFAC, and meet the required condi tions for registration to those bodies.  Dominica 
is also a member of the Regional Nursing Body  and the Caribbean Accreditation Authority for 
Education in Medicine and Other Health Professions (CAAM-HP). 
                                                      
102 As a result of an amendment to the Immigr ation and Passport Act in 2003, skilled CARICOM 
nationals covered by the Caribbean Community Skilled Na tionals Act are not required to obtain a work permit 
in Dominica. WT/TPR/S/190/DMA Trade Policy Review 
Page 50 
 
 
(vii) Other offshore services 
252. Offshore businesses in Dominica are regulated by the Financial Services Unit of the Ministry 
of Finance. 
253. The operations of offshore companies, other than banks and insurance companies, are 
regulated by International Business Company Act No . 10 of 1996.  Offshore companies are allowed to 
open bank accounts in Dominica, and do their acc ounting and hire professional and other services 
there.  They are also allowed to hold shares in ot her companies incorporated in Dominica through the 
International Business Company Act, or thro ugh the Companies Act.  Companies may be 
incorporated for any activity not explicitly prohibi ted by the International Business Company Act  
(mainly banks, insurance companies, or indecent or illegal activities);  they are constituted as limited-
liability companies in which shareholders or director s do not have personal liability in case of default.  
They must pay a registration of incorporation fee of US$90 and an annual renewal licence fee of US$150.  They are granted a 20-year tax holiday from th e date of incorporation,  and are not subject to 
the Exchange Control Ordinance.  There are 11, 796 international business companies registered in 
Dominica.  According to the authorities, EC$2.23 million in government revenue was generated from 
the offshore sector in 2006. 
 Dominica WT/TPR/S/190/DMA 
 Page 51 
 
 
REFERENCES 
 
Caribbean Development Bank (2004), Annual Country Report 2003 .  Viewed at: 
http://www.caribank.org/Publications.nsf/AR2003_P art1/$File/AR2003_Par t1.pdf?OpenElement. 
 
Caribbean Development Bank (2006), Annual Country Report 2005.  Viewed at: 
http://www.caribank.org/Publications.nsf/ERe view2005_dominica/$File/ECReview2005_dominica.p
df?OpenElement.  
Caribbean Development Bank (2007), Annual Country Report 2006.  Viewed at: 
http://www.caribank.org/AnReport.nsf/AER06- Dom/$File/AER2006_Dominica.pdf?OpenElement. 
 Commonwealth of Dominica (2005), Budget Address for the Fiscal Year 2006/2007:  "Towards 
Growth and Social Protection.  Viewed at:  http://www.daic.dm/docs/budget_address_2005.doc. 
 
Commonwealth of Dominica (2006a), Budget Address for the Fiscal Year 2006/2007: Enhancing the 
Investment Climate.  Viewed at:   http://www.daic.d m/docs/2006-07%20Budget%20Address.pdf. 
 Commonwealth of Dominica (2006b) Medium-Term Growth and Social Protection Strategy (GSPS),  
April.  Viewed at:  http://siteresources.worl dbank.org/INTPRS1/Resources/ Dominica_PRSP 
(April2006).pdf. 
 Commonwealth of Dominica (2006c), Poverty Reduction Strategy Paper .  Viewed at: 
http://www.imf.org/external/pubs/ft/scr/2006/cr06289.pdf.  ECCB (2006a), Annual Economic and Financial Report 2005 .  Viewed at:  http://www.eccb-
centralbank.org/PDF/AEFR%202005%20-%20Final%20Document.pdf. 
 ECCB (2006b), National Accounts Statistics 2006 .  Viewed at:  http://www.eccb-centralbank. 
org/PDF/NAC06.pdf.  
ECCB (2007), Annual Economic and Financial Review 2006 .  Viewed at:  http://www.eccb-
centralbank.org/ PDF/AEFR%202006%20-%20Final%20Document.pdf.  ECTEL (2006), Annual Telecommunications Sector Review .  Viewed at:  http://ectel.int/ectelnew-
2/Telecoms%20Market%20Data/Telecoms%20 Sector%20Review%202006.pdf. 
 
FATF (2000), Review to Identify Non-Cooperative Count ries or Territories:  Increasing The 
Worldwide Effectiveness of Anti-Money Laundering Measures. 
 
IMF (2005), Dominica:  2005 Article IV Consultation , IMF Country Report No. 05/384.  Viewed at:  
www.imf.org/external/pubs/ft/scr/2005/cr05384.pdf. 
 
IMF (2006), Dominica:  Sixth Review Under the Th ree-Year Arrangement Under the Poverty 
Reduction and Growth Facility and Financing Assurances Review –Staff Report;  and Press Release 
on the Executive Board Discussion .  Country Report No. 06/291.  Viewed at:  
http://www.imf.org/external/pubs/ft/scr/2006/cr06291.pdf. 
 
IMF (2007), Dominica: Seventh Review Under the Th ree-Year Arrangement Under the Poverty 
Reduction and Growth Facility and Financing Assurances Review–Staff Report;  and press Release 
on the Executive Board Discussion.  Country Report 07/1. WT/TPR/S/190/DMA Trade Policy Review 
Page 52 
 
 
Ministry of Tourism and National Development Corporation (2005), Dominica Tourism 2010 Policy .  
Viewed at:  http://tourismdominica.dm/documents /DominicaNationalTourismPolicyReportFinal.doc. 
 UNCTAD (2005), Étude Sur Les Transports Maritimes , Geneva. 
 
Vuletin, Guillermo, "The Size of the Informal Economy in the Caribbean", Eastern Caribbean 
Currency Union:  Selected Issues , IMF Country Report No. 07/97, March 2007.  Viewed at:  
http://www.imf. org/external/pubs/ft/scr/2007/cr0797.pdf.  
World Bank (2005), Dominica: OECS Fiscal Issues: Polici es to Achieve Fiscal Sustainability and 
Improve Efficiency and Equity of Public Expenditures,  Report No. 27467-DOM, Washington, D.C. 
 World Bank (2007), Dominica at a Glance .  Viewed at.  http://siteresources.worldbank. 
org/INTOECS/Resources/Dominica.AAG.pdf.  
WTO (2001), Trade Policy Review – OECS , Geneva. 
  
APPENDIX TABLES Dominica WT/TPR/S/190/DMA 
 Page 55 
 
 
Table AI.1 
Merchandise exports and re-expor ts by group of products, 2000-06 
(US$ million and per cent) 
Description 2000 2001 2002 2003 2004 2005 2006 
 (US$ million) 
Total 54 44 42 39 41 42 41 
 (% of total)  
Total primary products 41.8 41.0 42.6 39.7 42.4 40.1 41.4 
   Agriculture 37.8 36.9 39.1 35.5 37.0 33.7 34.6 
      Food 37.7 36.1 39.0 35.4 37.0 33.6 34.6 
         0573 Bananas (including plantains) , fresh or dried 25.2 21.9 22.7 18.3 21.4 19.5 21.3 
         0579 Fruit, fresh, dried, n.e.s. 1.6 2.2 2.3 2.8 2.8 3.1 3.1 
         0548 Vegetable products, roots, etc., n.e.s. 2.9 3.1 3.3 3.0 4.0 3.5 3.1 
         1110 Non-alcoholic bevera ge, n.e.s. 0.3 0.4 0.5 1.5 1.7 1.7 1.4 
         0984 Sauce, mixed seasonings and condiments 2.4 2.0 3.5 2.3 1.2 0.9 1.3 
         0571 Oranges, mandarins, citrus hybrids, fresh or dried 1.1 1.4 1.5 1.3 1.2 1.1 1.0 
         0572 Other citrus, fresh or dried 1.1 1.6 1.6 1.5 1.2 0.8 0.7 
         0545 Other fresh or chilled vegetables 0.7 0.8 0.5 0.7 0. 5 0.5 0.6 
         0599 Juices, other than citrus 0.5 0.4 0.4 0.5 0.7 0.4 0.6 
      Agricultural raw material 0.1 0.9 0.1 0.1 0.1 0.1 0.0 
   Mining 4.0 4.1 3.5 4.2 5.4 6.5 6.8 
      Ores and other minerals 4.0 4.1 3.5 4.2 5.4 6.5 6.7 
         2733 Sands, natural (excl. metal bear ing of division 28) 2.2 2.1 2.1 2.7 3.9 3.8 4.3 
         2734 Pebbles, gravel, etc. for c oncrete aggregates 1.9 2.0 1.3 1.6 1.4 2.7 2.4 
      Non-ferrous metals 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
      Fuels 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Manufactures 58.2 59.0 57.4 60.3 57.6 59.6 58.6 
   Iron and steel 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
   Chemicals 52.1 54.1 51.4 58.5 54.5 53.7 56.6 
         5541 Soap 25.2 26.4 24.1 27.8 27.0 23.9 25.2 
         5534 Preparations for oral or dental hygiene 13.7 14.6 13.2 15.8 13.5 13.6 13.4 
         5334 Paints and varnishes; plastics  in solution; etc. 3.2 2.8 2.8 3.6 4.6 7.0 6.9 
         5914 Disinfectants, rodenticides, et c. for retail sale 3.5 3.5 3.9 4.2 4.2 3.7 4.4 
         5542 Surface-active agents (e xcl. soap) 3.8 3.6 3.5 3.9 3. 3 3.4 3.9 
         5513 Essential oils;  resinoids; concentrates 2.0 2.0 2.8 2.4 1.2 1.2 2.0 
   Other semi-manufactures 1.3 1.7 0.2 0.1 0.4 0.5 0.4 
         6996 Articles iron or steel, n.e.s. 0.0 0.0 0.0 0.0 0.0 0.0 0.2 
         6353 Builders joinery/carpentry wood 0.0 0.0 0.0 0.0 0.0 0.0 0.1 
   Machinery and transport equipment 3.5 1.7 4.7 1.1 1.7 4.2 1.1 
      Power generating machines 1.0 0.0 1.7 0.1 0.1 0.1 0.0 
      Other non-electrical machinery 1.4 0.6 2.1 0.2 0.6 3.0 0.2 
         7422 Pumps for internal combustion piston engines 0.0 0.0 0.1 0.0 0.0 0.0 0.1 
         Agricultural machinery and tractors 0.0 0.0 0.0 0.0 0.0 0.1 0.0 
      Office machines & telecommunica tion equipment 0.5 0.3 0.2 0.1 0.1 0.2 0.3 
         7649 Parts and accessories fo r apparatus 0.1 0.1 0.1 0.1 0. 0 0.1 0.2 
         7643 Radio or television transm ission apparatus 0.0 0.1 0.0 0.0 0.0 0.0 0.1 
      Other electrical machines 0.2 0.2 0.2 0.1 0.1 0.0 0.1 
         7752 Household fridges a nd freezers 0.0 0.0 0. 0 0.0 0.0 0.0 0.1 
      Automotive products 0.4 0.4 0.4 0.5 0.7 0.5 0.4 
         7821 Goods vehicles 0.1 0.1 0.1 0.0 0.4 0.2 0.2 
         7822 Special purpose vehicles 0.0 0.0 0.0 0.2 0.0 0.0 0.2 
      Other transport equipment 0.1 0.1 0.1 0.0 0.0 0.3 0.0 
   Textiles 0.0 0.1 0.1 0.0 0. 0 0.0 0.0 
   Clothing 0.2 0.4 0.1 0.0 0.0 0.1 0.0 
   Other consumer goods 1.1 1.0 1.0 0.6 0.9 1.0 0.5 
         8932 Builders´ ware, plastics 0.0 0.0 0.0 0.0 0.0 0.0 0.3 
         8997 Basketware, etc., n.e.s., brooms, brushes, etc. 0.2 0.1 0.1 0.1 0.2 0.2 0.2 
Other 0.0 0.0 0.0 0.0 0.0 0.3 0.0 
 
Source:  UNSD, Comtrade database (SITC Rev.3). WT/TPR/S/190/DMA Trade Policy Review 
Page 56 
 
 
Table AI.2  
Merchandise imports by group of products, 2000-06 
(US$ million and per cent) 
Description 2000 2001 2002 2003 2004 2005 2006 
 (US$ million) 
Total 148 131 116 127 145 165 167 
 (% of total)  
Total primary products 33.1 34.6 35.8 36.4 35.1 34.2 38.6 
   Agriculture 23.2 24.4 25.9 25.2 23.7 20.4 22.9 
      Food 21.0 22.5 24.2 23.7 21.8 19.1 20.8 
         0123 Poultry, meat and offal 2.2 2.5 2.7 2.4 2.5 2.4 2.2 
         4113 Animal oils, fats, greases, n.e.s. 0.9 1.7 1.2 2.2 2.0 0.4 2.0 
         0222 Milk concentrated or sweetened 1.4 1.4 1.5 1.9 1.7 1.6 1.5 
         0461 Flour of wheat or of meslin 1.6 1.7 2.0 1.7 1.5 1.3 1.2 
         1110 Non-alcoholic bevera ge, n.e.s. 0.8 0.6 0.7 0.7 0.8 0.9 0.9 
         0989 Food preparations, n.e.s. 0.6 0.7 0.7 1.1 0.7 0.6 0.8 
         0484 Bread, baked goods 0.8 0.7 0.8 0.7 0.6 0.4 0.7 
         0819 Food waste, animal feeds n.e.s. 0.6 0.7 0.7 0.6 0.6 0.6 0.6 
         1123 Beer made from malt 0.7 0.8 0.8 0.7 0.6 0.6 0.6 
      Agricultural raw material 2.2 1.8 1.7 1.5 1.8 1.3 2.0 
         2482 Wood of coniferous 1.6 1.1 0.8 0.9 1.1 0.8 1.2 
   Mining 9.9 10.2 9.9 11.2 11.5 13.7 15.8 
      Ores and other minerals 0.2 0.2 0.3 0.2 0.2 0.2 0.1 
      Non-ferrous metals 0.1 0.1 0.2 0.2 0.2 0.3 0.2 
      Fuels 9.6 9.8 9.5 10.9 11.1 13.3 15.5 
Manufactures 66.9 65.4 64.2 63.5 64.8 63.9 61.3 
   Iron and steel 2.2 2.4 1.5 1.7 2.2 3.2 2.5 
         6741 Flat-rolled products, iron/st eel, zinc plated 0.7 0.6 0.5 0.4 0.4 0.7 0.7 
   Chemicals 12.3 11.5 12.9 11.4 11.1 11.3 12.2 
         5429 Medicaments, n.e.s. 0.9 1.1 1.3 1.1 1.1 1.8 2.1 
         5514 Mixtures of odoriferous substances 1.4 1.1 1.4 1.2 1.2 0.8 1.2 
         5542 Surface-active agents (e xcl. soap) 0.6 0.7 0.7 0.7 0. 7 0.7 0.6 
         5829 Other plates, sheets, film, stri p, of other plastics 0.3 0.3 0.2 0.2 0.3 0.2 0.6 
   Other semi-manufactures 14.1 15.7 14.1 13.9 13.4 10.6 11.7 
         6421 Packing containers, of paper,  paperboard, etc. 0.6 0.9 2.4 1.8 1.8 1.5 1.5 
         6612 Portland cement and similar hydraulic cements 1.3 1.4 1.6 1.8 1.5 1.3 1.1 
         6429 Articles of paper pulp, paper, etc., n.e.s. 0.6 0.6 0.8 0.8 0.6 0.5 1.0 
   Machinery and transport equipment 26.2 23.5 22.0 22.8 25.2 25.1 23.5 
      Power generating machines 1.4 0.7 1.2 0.9 0.9 1.4 0.9 
         7165 Generating sets 1.0 0.1 0.1 0.1 0.4 0.8 0.4 
      Other non-electrical machinery 6.0 6.6 3.5 3.9 4.1 4.2 5.8 
         7283 Other mineral working machines 0.4 0.4 0.3 0.5 0.1 0.2 1.4 
         7452 Dish washing machines (other than household) 0.1 0.1 0.1 0.1 0.1 0.0 0.7 
         7284 Machinery for particular industries, n.e.s. 0.5 0.1 0.1 0.2 0.0 0.0 0.7 
         Agricultural machinery and tractors 0.1 0.1 0.0 0.0 0.1 0.0 0.1 
      Office machines & telecommunica tion equipment 6.7 6.3 6.4 7.9 10.3 8.2 6.7 
         7643 Radio or television transm ission apparatus 0.5 0.7 0.9 2.2 2.4 2.1 2.1 
      Other electrical machines 3.2 3.4 3.7 3.7 3.2 3.3 3.4 
         7731 Insulated wire, cable etc.; optical fibre cables 0.7 0.8 0.7 0.8 0.6 0.7 0.8 
         7725 Switches, relays, fuses, fo r a voltage < 1000 V 0.3 0.5 0.5 0.7 0.4 0.8 0.6 
      Automotive products 8.3 5.6 5.9 5.4 5.9 7.3 5.7 
         7812 Motor vehicles for the transport of persons 2.8 2.4 2.4 2.2 2.4 2.6 2.2 
         7821 Goods vehicles 3.5 1.4 1.7 1.2 1.5 1.7 2.0 
      Other transport equipment 0.6 1.0 1.3 1.0 0.8 0.7 1.0 
   Textiles 0.9 1.0 1.1 1.0 1. 1 1.2 0.8 
   Clothing 1.2 1.5 2.1 1.5 1.7 1.8 1.5 
   Other consumer goods 10.0 9.8 10.5 11.3 10.0 10.7 9.0 
         8931 Plastics containers, stoppe rs, lids, etc. 1.9 1.2 1.3 1.3 1.3 1.5 1.2 
         8921 Printed books, pamphlets, maps, etc. 1.1 1.1 1.2 1.2 1.1 1.2 0.9 
Other 0.0 0.0 0.0 0.1 0.0 1.9 0.0 
 
Source: UNSD, Comtrade database (SITC Rev.3). Dominica WT/TPR/S/190/DMA 
 Page 57 
 
 
Table AI.3 
Merchandise exports and re-exports by trading partner, 2000-06 
(US$ million and per cent) 
Description 2000 2001 2002 2003 2004 2005 2006 
  (US$ million) 
Total 54 44 42 39 41 42 41 
  (% of total) 
  America 67.1 70.0 68.9 74.9 70.1 65.5 70.0 
    United States 7.4 6.1 9.2 6.3 4.5 4.5 4.5 
    Other America 59.6 63.9 59.7 68.6 65.6 61.0 65.4 
      Canada 0.1 0.4 0.2 0.2 0.1 0.2 0.1 
      Jamaica 23.9 23.2 21.4 22.8 20.2 12.7 15.1 
      Antigua and Barbuda 7.4 8.3 8.4 10.2 10.0 11.3 12.9 
      Trinidad and Tobago 5.2 5.7 4.6 6.5 7.4 9.0 7.6 
      Barbados 4.7 4.8 4.3 5.2 4.5 4.2 7.2 
      Guyana 6.3 7.1 6.8 8.4 6.2 6.3 6.9 
      St Lucia 2.9 3.8 2.8 3.4 4.0 6.8 4.3 
      St Kitts and Nevi s 3.8 3.2 3.3 3. 4 3.0 2.5 2.7 
      Suriname 0.9 1.2 1.3 1.6 1.8 2.0 2.4 
      Belize 0.0 0.0 0.0 1.0 1.9 1.1 1.3 
      St Vincent and the Grenadines 1.1 1.3 1.4 1.2 1.0 1.6 1.3 
      British Virgin Islands  0.4 0.7 0.5 0. 6 0.6 0.7 1.1 
      Grenada 0.7 0.7 0.7 0.7 0.7 0.8 0.7 
      Anguilla 0.1 0.1 0.0 0.2 0.4 0.5 0.7 
      Montserrat 0.6 0.6 0.6 0.7 0.7 0.8 0.5 
      Bahamas 0.1 0.1 0.3 0.2 0.2 0.4 0.2 
      Haiti 0.0 0.2 0.1 0.0 0.1 0.2 0.1 
      Bermuda 0.0 0.1 0.1 0.1 0.1 0.1 0.1 
  Europe 31.5 28.5 29.3 24.9 27.5 27.8 26.8 
    EC(25) 31.5 28.5 29.3 24.9 27.5 27.8 26.8 
      United Kingdom 24.0 21.1 22.6 15.8 18.0 16.5 18.5 
      France 7.5 7.4 6.7 9.1 9.6 10.8 8.3 
    EFTA 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
    Other Europe 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
  Africa 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
  Asia 0.0 0.4 0.0 0.0 0.2 0.0 0.2 
    China 0.0 0.0 0.0 0.0 0.0 0.0 0.1 
    Japan 0.0 0.1 0.0 0.0 0.2 0.0 0.0 
    Six East Asian Traders 0.0 0.0 0.0 0.0 0.0 0.0 0.1 
    Other Asia 0.0 0.4 0.0 0.0 0.0 0.0 0.0 
  Other 1.4 1.0 1.8 0.1 2.1 6.7 3.1 
      Areas n.e.s 1.4 1.0 1.8 0.1 2.1 6.7 3.1 
Memorandum:        
    EC(15) 31.5 28.5 29.3 24.9 27.5 27.8 26.8 
    ASEAN 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
    APEC 7.8 7.1 9.3 6.6 4.8 4.7 4.8 
       United States 7.4 6.1 9.2 6.3 4.5 4.5 4.5 
       China 0.0 0.0 0.0 0.0 0.0 0.0 0.1 
       Canada 0.1 0.4 0.2 0.2 0.1 0.2 0.1 
    MERCOSUR 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
 
Source:  UNSD, Comtrade database (SITC Rev.3). WT/TPR/S/190/DMA Trade Policy Review 
Page 58 
 
 
Table AI.4 
Merchandise imports by trading partner, 2000-06 
(US$ million and per cent) 
Description 2000 2001 2002 2003 2004 2005 2006 
  (US$ million) 
Total 148 131 116 127 145 165 167 
  (% of total) 
  America 75.8 74.1 76.9 78.6 75.9 76.7 77.0 
    United States 37.3 36.4 36.6 37.1 36.6 36.6 36.1 
    Other America 38.5 37.7 40.2 41.6 39.2 40.2 40.9 
      Canada 4.2 2.9 2.7 3.5 2.7 2.6 2.7 
      Trinidad and Tobago 16.3 17.4 17.6 18.2 18.1 20.5 22.1 
      Barbados 3.2 2.8 3.8 4.3 3.5 3.4 2.3 
      St Lucia 1.6 1.7 3.5 2.7 2.9 2.3 2.2 
      Grenada 1.1 1.4 0.8 0.4 0.5 0.7 1.4 
      Jamaica 1.2 1.4 1.3 1.2 1.3 1.6 1.3 
      Bolivarian Rep. of Venezuela 1.8 1.7 1.3 1.4 1.3 1.1 1.3 
      Guyana 1.2 1.3 1.2 1.2 1.3 1.0 1.3 
      St Vincent and the Grenadines 1.5 0.9 1.3 1.2 1.1 1.1 1.0 
  Europe 15.1 16.4 15.5 14.2 16.0 13.8 12.8 
    EC(25) 14.4 15.6 14.1 13.4 14.8 13.4 12.6 
      United Kingdom 7.7 10.1 8.6 7.6 6.6 6.8 5.7 
      France 1.9 1.7 2.1 2.4 5.0 2.4 2.7 
      Germany 1.0 0.7 0.7 0.6 0.7 1.0 1.6 
      The Netherlands 2.2 1.8 1.9 1.6 1.4 1.2 1.5 
    EFTA 0.4 0.7 0.7 0.4 0.7 0.3 0.1 
    Other Europe 0.3 0.1 0.7 0.4 0.4 0.0 0.0 
  Commonwealth of Independent States  (CIS) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
  Africa 0.0 0.2 0.1 0.2 0.1 0.3 0.2 
      South Africa 0.0 0.0 0.0 0.1 0.0 0.0 0.1 
  Middle East 0.1 0.1 0.1 0.0 0.1 0.0 0.0 
  Asia 8.5 8.6 6.6 6.3 7.3 8.4 9.1 
    China 0.5 0.8 0.7 0.9 1.2 2.2 3.9 
    Japan 6.3 6.3 4.1 3.9 4.7 4.6 4.0 
    Six East Asian Traders 1.5 1.2 1.4 1.2 0.8 1.1 0.8 
      Hong Kong, China 0.1 0.1 0.2 0.1 0.2 0.3 0.2 
      Korea, Rep. of 0.2 0.2 0.2 0.2 0.1 0.1 0.2 
    Other Asia 0.3 0.3 0.4 0.3 0.5 0.5 0.4 
      India 0.1 0.2 0.2 0.1 0.3 0.3 0.3 
  Other 0.5 0.6 0.8 0.7 0.7 0.8 0.7 
      Areas n.e.s 0.5 0.6 0.8 0.7 0.7 0.8 0.7 
M e m o r a n d u m :         
    EC(15) 14.3 15.5 14.1 13.4 14.8 13.4 12.6 
    ASEAN 0.3 0.3 0.6 0.3 0.3 0.5 0.4 
       Thailand 0.2 0.1 0.1 0.1 0.2 0.3 0.1 
       Singapore 0.0 0.0 0.0 0.0 0.0 0.1 0.1 
       Indonesia 0.0 0.0 0.0 0.0 0.1 0.0 0.1 
    APEC 50.6 48.3 46.3 47.2 47.1 47.9 48.2 
    MERCOSUR 0.7 0.7 1.0 1.4 1.4 1.4 1.0 
      Brazil 0.7 0.7 0.9 1.1 1.2 1.0 0.9 
      Argentina 0.0 0.0 0.1 0.2 0.2 0.4 0.1 
 
Source:  UNSD, Comtrade database (SITC Rev.3). 
 
__________