El Salvador WT/TPR/S/226 
 Page 23 
 
 
III. TRADE POLICIES, BY MEASURE 
(1) MEASURES AFFECTING IMPORTS  
(i) Customs procedures 
1. The time required to import goods has fallen from 30 days in 2006 to ten days in 2009.1  Of 
these ten days, two are for customs clearance.  Acco rding to figures provided by the authorities, the 
average time taken for customs cl earance is 22 hours for imports of goods subject to inspection.  
El Salvador is 57th out of 181 economies as regards the ease with which import and export formalities 
can be completed and their cost.2 
2. El Salvador's customs regime is based on the Uniform Central American Customs Code 
(CAUCA IV) and its implementing regulations (R ECAUCA IV) and on domestic legislation, 
including the Organic Law on th e Directorate-General of Cust oms, adopted in 2006, the Law 
streamlining customs procedures, amended in 2005 and 2006, and the Special Law on penalties for customs offences, amended in 2006. 
3. The Directorate-General of Customs (DGA) is responsible for applying the customs 
regulations
3 and is attached to the Ministry of Finance.  Customs regulations, including orders issued 
by the DGA, can be found on the DGA's website.4  The DGA has published a Guía Aduanera  
(Customs Manual), which explains customs procedures.5  El Salvador belongs to the World Customs 
Organization but has not signed the Revised Kyoto Convention on the Simplification and Harmonization of Customs Procedures. 
4. Importers must be registered with the DGA.
6  Inclusion in the register is automatic after 
completion of the requirements laid down in  the Law on the registration of importers.7  The use of a 
customs agent is optional for businesses, subject to authorization by the DGA.8 
5. Shippers of freight carried by sea must send the cargo manifest to Customs electronically9 at 
least 48 hours prior to arrival of the means of transport in the port of unloading, and for air freight at least two hours beforehand.
10  The authorities have indicated that the purpose of this requirement is to 
provide the DGA with information prior to arrival of the goods in Salvadoran customs territory.  No 
electronic manifest is required from those transporting freight by land. 
6. The goods declaration may be transmitted to Cu stoms before the goods arrive in the port of 
unloading.  It is also possible to pay import duties before the declaration is transmitted to Customs.  
                                                      
1 Online information from the World Bank, Doing Business:  Measuring business regulations .  Viewed 
at:  http://www.doingbusiness.org/E xploreTopics/TradingAcrossBorders 
2 Idem . 
3 Article 3 of the Organic Law on the Directorate-General of Custom s, Legislative Decree No. 903 of 
12 January 2006. 
4 Viewed at:  http://www.aduana.gob.sv 
5 USAID and DGA (2008), Guía Aduanera .  Viewed at:  http://www.aduana.gob.sv/index.php?option= 
com_content&task=view&id=8432&Itemid=34&show=1 
6 Article 1 of the Law on the registration of importers, Legislative Decree No. 224 of 
22 December 2000. 
7 Ibid., Article 7. 
8 Articles 9 of the Law streamlining customs procedures and 87 of RECAUCA IV. 
9 Article 2 of the Law streamlining customs procedures, Legislative Decree No. 906 of 2 March 1999. 
10 General administrative provisions DGA-016-2007 of 7 November 2007 and DGA-013-2008 of 
6 May 2008. WT/TPR/S/226 Trade Policy Review 
Page 24 
 
 
Both procedures may be conducted through Teled espacho, a computerized customs administration 
system that operates on the basis of the United Nations ASYCUDA++ scheme.  Customs must be 
given the originals of the invoice, the transport document and, where the goods so require, the import permit.  The original or a copy of the certificate of origin must also be submitted when goods are 
imported under a preferential trade agreement. 
7. No security has to be deposited for definitive imports.  El Salvador does not impose fees for 
customs services, with the exception of storage of the goods and parking for the means of transport. 
8. Any person "with a legitimate interest" may c onsult the DGA on any matter that might affect 
customs taxation.
11  The DGA's reply is not binding, except in  the case of an "advance decision" given 
in connection with one of El Salva dor's preferential trade agreements.12 
9. The DGA may require the imported goods to unde rgo physical or documentary inspection 
depending on the level of risk.  The criteria used by Customs to determine the level of risk include the 
tariff classification, the value, the amount, the origin, licensing requirements or restrictions, expiry of time-limits and any errors found in the transport documents.  The authorities have indicated that, at 
the end of 2009, 8.3 per cent of imports were subject  to physical inspection, compared to 23 per cent 
in 2006.  Approximately 4.3 per cent of  imports undergo documentary inspection. 
10. The DGA is authorized to conduct inspections sub sequent to clearance.  Importers must keep 
the relevant documents for the purpo se of ex post inspections for a period of four years from the date 
of clearance.
13  Some 1.1 per cent of goods declarations are subject to ex post inspection. 
11. Importers may contest decisions by Customs through administrative channels, lodging an 
"appeal for review" with the Director-General of  Customs, who must take a decision within the 
time-limits laid down in the Special Law on penalties for customs offences.  The appeals body is the 
Internal Revenue Appeals Court, whose rulings exhaust administrative channels.14  Between 2006 and 
2008, this Court issued 218 rulings on customs matters. 
12. At the end of 2008, the DGA introduced the Cu stoms Programme for Business Compliance 
(PACE), in which participation is  voluntary.  If a business wishes to participate in the PACE, its 
compliance with the taxation and customs regulati ons and its internal audit procedures must be 
evaluated and certified.  The benefits of particip ation in the PACE include a reduction in the number 
of shipments subject to review and streamlined  physical inspection procedures.  The DGA also 
appoints a "person responsible" for each particip ating business to follow up individually any 
shipments where there are delays in customs clear ance.  At the beginning of 2009, five businesses, 
whose imports accounted for around 3.5 per cent of the value of total imports, belonged to the 
PACE.15 
13. Since April 2007, a "single window for imports " has been operating in San Salvador.  The 
office is composed of officials from bodies involved in import formalities, including those responsible 
for issuing permits for the import of certain products  (see section (vi) below) .  This initiative has 
considerably shortened the average time taken to complete licensing formalities, from 20 days to one 
                                                      
11 Article 5 of the Law streamlining customs procedures. 
12 See General administrative provision DGA-015-2008 of 6 October 2008. 
13 Article 223 of RECAUCA IV. 
14 Law on the organization and functioning of the Internal Revenue Appeals Court, Legislative Decree 
No. 135 of 21 December 1991. 
15 Online information from the DGA, Estadísticas de empresas aprobadas en el Programa PACE .  
Viewed at:  http://www.aduana.gob.sv/index.php?op tion=com_content&task=view&id=9669&Itemid=297 El Salvador WT/TPR/S/226 
 Page 25 
 
 
day.16  El Salvador is planning to set up a "virtu al single window" through which users may complete 
import licensing formalities on line. 
14. Since 2004, El Salvador and Guatemala have had "integrated offices" in the land customs 
posts along their common border.17  Under this initiative, users may go directly to the customs post at 
the place where the goods are to be imported in order to complete the relevant formalities, without 
also having to go to the customs post at the point of export, as was previously the case.  The Members 
of the CACM have also set up "peripheral custom s posts" along the borders of their common customs 
territory.  Users of the peripheral customs posts ma y complete certain formalities with officials from 
the country of final destination of the goods.  El Sa lvador has officials in several peripheral customs 
posts, including those at Tecún Umán (Gua temala), Puerto Cortés (Honduras) and Peñas 
Blancas (Nicaragua).18 
15. According to the authorities, the DGA is maki ng efforts to combat corruption by prosecuting 
and, when necessary, dismissing officials who engage  in such practices.  The DGA has also drawn up 
"criteria for intervention" in order to lessen the discretionary powers of its officials. 
(ii) Customs valuation 
16. El Salvador has not notified its customs valua tion legislation to the WTO and has not replied 
to the checklist of issues on customs valuation.19 
17. In response to a request from El Salvador, the WTO General Council granted it a waiver to 
enable it to use minimum values for certain used goods until 7 March 2003 or 7 March 2005, depending on the goods in question.
20  In October 2004, El Salvador notified the WTO of the 
"technical criteria and methodology for determining minimum values".21  In connection with this 
Review, El Salvador has indicated that it does not apply minimum values to any product. 
18. El Salvador's valuation regime is based on CAUCA IV and its implementing regulations 
(RECAUCA IV), in force since August 2008. 
19. The customs value of imports is generally the transaction value, including the cost of 
insurance and shipping to the place of import and other c.i.f. charges.22  According to the authorities, 
the transaction value is the valuation method used for 95 per cent of imports.  Reversal of the order of 
the valuation methods provided in Articles 5 and 6 of the Customs Valuation Agreement at the 
request of the importer is not automatic but must be approved by Customs.23 
20. RECAUCA IV determines the criteria according to  which the interest paid under a financing 
agreement for the purchase of the imported goods is not considered by Customs to be part of the 
customs value.24  These criteria are the same as those la id down in the WTO Customs Valuation 
Agreement.  The DGA determines the customs value of computer media containing data or 
                                                      
16 USAID and DGA (2008). 
17 Online information from the Ministry of the Economy, Integración económica centroamericana:  
unión aduanera , March 2006.  Viewed at:  http://www.min ec.gob.sv/policom/default.asp?id=34&mnu=32 
18 SIECA (2007), Unión aduanera en cifras , October.  Viewed at:  http://www.sieca. org.gt/site/ 
VisorDocs.aspx?IDDOC=Cache/17990000002380/17990000002380.swf 
19 The checklist of issues is contained in WTO document G/VAL/5 of 13 October 1995. 
20 WTO document WT/L/476 of 12 July 2002. 
21 WTO documents WT/L/586 and G/VAL/N/4/SLV/2 of 20 October 2004. 
22 Article 188 of RECAUCA IV. 
23 WTO document WT/Let/14 of 24 April 1995. 
24 Article 190. WT/TPR/S/226 Trade Policy Review 
Page 26 
 
 
instructions on the basis of the cost of the co mputer medium and not on that of the data or 
instructions.25  In order to apply the transaction value me thod when there has been a series of sales 
prior to import, the customs value is based on "the  value corresponding to the latest transaction prior 
to submission of the declaration of the goods".26  Where necessary, Customs uses the exchange rates 
published on the Internet by the Cent ral Reserve Bank of El Salvador. 
21. Customs keeps a database with information on prices in order to conduct enquiries into the 
values declared.  It has published a "list of refere nce prices for the import of fruit and vegetables from 
Central America".27  According to the authorities, these refe rence prices are used to calculate the 
value of small volumes of goods imported by pe rsons who have no tax registration number or 
commercial invoice.  It also makes available to the public a tool fo r calculating the customs value of 
used vehicles imported from Canada or the United St ates of America according to the "method of last 
resort".28 
22. If it becomes necessary to postpone determinati on of the customs value of goods, the rules 
give the possibility of removing the goods from Customs subject to lodging of security.29  The amount 
of the security is equivalent to the amount of th e tariff duties and any other taxes determined on the 
basis of the Customs reference values. 
(iii) Rules of origin 
23. El Salvador has notified the WTO that it does not apply non-preferential rules of origin.30  It 
has also notified that it applies preferential rules of origin under its trade agreements with other 
Members of the CACM, Chile, the Dominican Republic, Mexico and Panama.31 
24. El Salvador's preferential trade agreements lay down specific rules of origin (Table AIII.1).  
These define the changes in tariff classification required in order to confer origin on goods that have 
not been wholly obtained or produced entirely in the territory of one of the signatory countries.  To a 
lesser extent, preferential rules of origin lay down criteria on regional value content that are either 
applied separately or in conjunction with a change in tariff classification. 
25. In general, origin is determined on the basis of  the certification by exporters or producers.  A 
certificate of origin issued under the trade agreemen t with Chinese Taipei must also be endorsed by 
the competent authority in the place of origin of the goods. 
(iv) Tariffs 
26. El Salvador's tariff policy is defined within the CACM framework.  It applies the Central 
American Import Tariff, which is contained in A nnex A to the Convention on the Central American 
Tariff and Customs Regime.  The Council of Minist ers for Economic Integration, composed of the 
                                                      
25 USAID and DGA (2008), Guía Aduanera .  Viewed at:  http://www.aduana.gob.sv/index.php? 
option=com_content&task=view&id=8432&Itemid=34&show=1 
26 Article 192 of RECAUCA IV. 
27 DGA Information Bulletin No. 3, Valor de transacción para la importación de frutas y verduras , of 
25 July 2006. 
28 DGA Information Bulletin No. 12, Importación de vehículos usados , of 17 October 2005. 
29 Article 202 of RECAUCA. 
30 WTO document G/RO/N/10 of 16 August 1996. 
31 WTO documents G/RO/N/11 and G/RO/N/43 of 10 September 1996 and 15 March 2004, 
respectively. El Salvador WT/TPR/S/226 
 Page 27 
 
 
Ministers of the Economy of the CACM member c ountries, is the only body empowered to amend the 
rates in the Central American Import Tariff. 
27. The Central American Import Tariff consists of the following basic rates:  zero per cent on 
raw materials, and intermediate  and capital goods not produced in the CACM;  5 per cent on raw 
materials produced in the CACM;  10 per cent on in termediate and capital goods produced in the 
CACM;  and 15 per cent on finished goods.32  The CACM member countries may apply other rates, 
but these must be approved by the Council of Ministers.  The Secretariat for Central American Economic Integration estimates that the rates applied to 95.7 per cent of the tariff lines in the Central 
American Import Tariff are harmonized among CACM member countries.
33 
28. The Central American Import Tariff is based on the Harmonized Commodity Description and 
Coding System (HS) and reflects the amendments appearing in the fourth Recommendation on amendment of the HS, approved in June 2004 (HS 2007).
34 
29. El Salvador gives both WTO Members and non-members MFN tariff treatment as a 
minimum. 
(a) Structure and levels 
30. The applied tariff as at early 2009 included 6, 564 eight-digit tariff lines (Table III.1).  
El Salvador has no seasonable or variable tariffs.  Since the previous Review in 2003, tariff quotas 
have been imposed on imports of Cheddar-type cheese in blocks or slabs (Chapter IV(1)). 
31. All the applied rates are ad valorem .  The tariff comprises 11 rates ranging from 0 to 164 per 
cent.  The most common rate is zero per cent, wh ich applies to some 47 per cent of tariff lines, 
followed by 15 per cent (around 20 per cent of tariff lines) and 10 per cent (some 16 per cent of tariff 
lines). 
Table III.1 
MFN tariff structure, 2009 
(Percentage) 
Total number of tariff lines 6,564 
Non- ad valorem  tariffs (% of all tariff lines) 0.0 
Tariff quotas (% of all tariff lines) 0.0 
Duty-free tariff lines (% of all tariff lines) 47.2 
Average of lines exceeding zero (%) 11.9 
Domestic tariff "peaks" (% of all tariff lines)a 2.8 
International tariff "peaks" (% of all tariff lines)b 2.8 
Bound tariff lines (% of all tariff lines) 100.0 
a Domestic tariff peaks are defined as rates exceeding three times the overall simple average applied rate. 
b International tariff peaks are defi ned as rates exceeding 15 per cent. 
Source : WTO Secretariat estimates based on data provided by the authorities of El Salvador. 
 
32. The simple average of MFN tariffs applied fell from 7.4 per cent in 2002 to 6.3 per cent in 
early 2009 (Table III.2).  This reflects to a large extent the marked decreas e in the average rates 
applied to textiles and their manufactures, from ar ound 18 per cent in 2002 to some 10 per cent in 
early 2009.  The coefficient of variation increased slightly over the same period, from 1.2 to 1.4. 
                                                      
32 Resolution No. 26-96 (COMRIEDRE IV) of 22 May 1996. 
33 SIECA (2009), La unión aduanera centroamericana , July.  Viewed at:  h ttp://www.sieca. org.gt/site/ 
Enlaces.aspx?ID=002005 
34 Resolution No. 180-2006 (COMIECO XXXIX) of 9 November 2006. WT/TPR/S/226 Trade Policy Review 
Page 28 
 
 
33. The simple average MFN tariff applied to agricultural products according to the 
WTO definition is 12.9 per cent, compared to 5.2 pe r cent for other products.  The average applied to 
agricultural products has increased by almost one percentage point since the previous Review of 
El Salvador because of the higher rates imposed  on chicken thighs, le gs and preparations 
(Chapter IV(1)).  A rate of 40 per cent appli es to around 70 tariff lines covering products such as 
sausages, dairy products, rice, sugar, rum and ethyl alcohol. 
Table III.2 
Breakdown of the MFN tariff, 2009 
MFN 
Description Number of
lines Average
(%) Range 
(%) Coefficient of 
variation 
(CV) Average 
bound 
tariff  
(%)a 
Total  6,564  6.3  0 – 164  1.4  37.0 
HS 01-24  1,003  13.3  0 – 164  1.2  43.7 
HS 25-97  5,561  5.0  0 – 30  1.2  35.8 
By WTO category      
Agricultural products  939  12.9  0 – 164  1.3  43.0 
 - Animals and animal products  127  29.0  0 – 164  1.1  55.3 
 - Dairy products  31  24.8  0 – 40  0.6  38.8 
 - Coffee and tea, cocoa, sugar, etc.  170  12.2  0 – 40  0.8  42.3 
 - Cut flowers and plants  59  5.8  0 – 15  1.2  30.7 
 - Fruit and vegetables  206  13.2  0 – 30  0.4  39.2 
 - Cereals  23  13.7  0 – 40  1.2  38.0 
 - Oilseeds, fats and oils and their products  94  5.2  0 – 15  1.1  48.6 
 - Alcoholic beverages and liquids   53  19.2  0 – 40  0.6  48.2 
 - Tobacco  19  7.4  0 – 30  1.0  74.0 
 - Other agricultural products n.e.s  157  3.6  0 – 15  1.4admi  36.2 
Non-agricultural products (including petroleum)  5,625  5.2  0 – 30  1.2  36.0 
 - Non-agricultural products (excluding petr oleum)  5,601  5.2  0 – 30  1.2  36.0 
 - Fish and fish products  157  9.6  0 – 15  0.6  44.8 
 - Minerals, precious stones and metals  372  5.0  0 – 15  1.2  37.6 
 - Metals  712  3.0  0 – 15  1.6  35.3 
 - Chemicals and photographic products  1,105  2.5  0 – 15  1.8  37.2 
 - Leather, rubber, footwear, and travel  articles  208  7.7  0 – 20  0.7  39.6 
 - Wood, wood pulp, paper and furniture  453  6.3  0 – 15  0.9  36.4 
 - Textiles and clothing  939  9.8  0 – 20  0.5  38.8 
 - Transport equipment  221  6.4  0 – 30  1.4  35.4 
 - Non-electrical machinery  587  1.4  0 – 15  2.8  30.8 
 - Electrical machinery  339  3.1  0 – 15  1.8  27.8 
 - Non-agricultural products n.e.s.  508  7.5  0 – 30  1.1  34.4 
 - Petroleum  24  4.2  0 – 15  1.2  40.0 
By ISIC sectorb      
Agriculture and fishing  411  8.1  0 – 40  0.9  37.4 
Mining  107  1.8  0 – 15  1.8  35.3 
Manufacturing  6,045  6.2  0 – 164  1.4  37.0 
By HS chapter      
 01 Live animals and animal products  299  16.1  0 – 164  1.3  46.7 
 02 Plant products  376  9.8  0 – 40  0.8  35.1 
 03 Fats and oils  54  7.3  0 – 15  0.9  63.7 
 04 Food preparations, etc.  274  16.4  0 – 164  1.0  48.5 
 05 Mineral products  178  2.7  0 – 15  1.5  36.6 
 06 Products of the chemical and related industries  961  2.0  0 – 15  2.1  36.4 
 07 Plastics and rubber  333  4.6  0 – 15  1.0  38.2 
 08 Hides and skins  108  8.3  0 – 15  0.7  41.4 
 09 Wood and articles of wood  138  7.9  0 – 15  0.6  33.0 
 10 Wood pulp, paper, etc.  294  5.1  0 – 15  1.1  37.3 
 11 Textiles and textile articles  920  9.6  0 – 20  0.5  38.7 
 12 Footwear, hats and other headg ear  64  13.1  0 – 20  0.3  41.8 
 13 Articles of stone  176  6.4  0 – 15  1.0  39.6 
 14 Precious stones, etc.  54  6.9  0 – 15  0.8  38.5 
 15 Base metals and articles of base  metal  698  3.3  0 – 15  1.5  35.9 
 16 Machinery and mechanical appliances  974  2.2  0 – 15  2.2  29.4 
 17 Transport material  234  6.2  0 – 30  1.5  35.6 
 18 Precision instruments  237  3.9  0 – 15  1.5  31.9 
 19 Arms and ammunition  21  30.0  30 – 30  0.0  40.0 
 20 Miscellaneous manufactured articles  162  10.7  0 – 15  0.5  39.4 El Salvador WT/TPR/S/226 
 Page 29 
 
 
MFN 
Description Number of
lines Average
(%) Range 
(%) Coefficient of 
variation 
(CV) Average 
bound 
tariff  
(%)a 
 21 Works of art, etc.  9  7.8  5 – 10  0.3  40.0 
By stage of processing      
First stage of processing  809  6.6  0 – 40  1.1  37.3 
Semi-processed products  2,182  4.0  0 – 40  1.3  36.5 
Fully processed products  3,573  7.6  0 – 164  1.4  37.3 
a The bound rates are given in the HS 2002 classification and the a pplied rates in that of the HS 2007;  consequently, there ma y be 
differences between the number of lines included in the breakdown. 
b ISIC (Rev. 2), excluding electricity (one line). 
Source : WTO Secretariat estimates based on data provided by the authorities. 
 
34. Tariff escalation exists, but does not follow the usual lines.  Even though the average tariff on 
finished goods is higher than that on semi-finished  goods, the average rate applied on raw materials is 
higher than that on semi-finished goods (Table III.2). 
35. The average effective tariff fell slightly betw een 2003 and 2008, from 3 per cent to 1.8 per 
cent.35  This level remains below the simple average of MFN tariffs and reflects the tariff concessions 
granted under preferential trade ag reements or incentive schemes. 
(b) Bindings 
36. The bindings in El Salvador's concessions appear in a list that precedes the Uruguay Round 
and in Schedule LXXXVII annexed to the GATT 1994.   The transposition of El Salvador's schedule 
of commitments to the HS 96 has been certified.36  Until 31 December 2009, El Salvador is covered 
by a collective waiver under which the General Co uncil suspended the application of the GATT 1994 
disciplines on binding to allow Members to apply the HS 2007 changes at the national level pending their incorporation into th eir schedules of concessions.
37 
37. In 2007, El Salvador renegotiated its sche dule of commitments in accordance with 
Article XXVIII of the GATT 1994 for certain poultry products (Chapter IV(1)). 
38. El Salvador bound all its tariffs at 32 rates ranging from 0 to 164.4 per cent.  Some 70 per 
cent of its tariff lines are bound at 40 per cent.  The average bound rate is 37 per cent. 
39. El Salvador grants concessions under the Minist erial Declaration on Trade in Information 
Technology Products.  At the end of 2009, this in strument was being ratified by El Salvador's 
Legislative Assembly. 
40. The Secretariat has not identified any tariff line where the applied rate exceeds the respective 
bound rate.38 
                                                      
35 The effective tariff is the ratio of the value of revenue earned from tariffs to the value of the imports 
of goods. 
36 WTO document WT/Let/467 of 16 April 2004. 
37 WTO document WT/L/745 of 22 December 2008. 
38 In conducting this analysis, the Secretariat only took into account th e tariff lines in El Salvador's 
revised tariff schedule that are strictly comparable with the HS 2007. WT/TPR/S/226 Trade Policy Review 
Page 30 
 
 
(c) Preferential tariffs 
41. Under preferential trade agreements with the other Members of the CACM, Chile, the 
United States of America, Mexico, Panama, the Dominican Republic and Chinese Taipei, El Salvador grants preferential tariff treatment for goods that me et the origin requirements in these agreements. 
42. Virtually all imports from Costa Rica, Guatem ala, Honduras and Nicaragua are subject to a 
tariff of zero per cent.  The exceptions are unr oasted coffee and cane sugar from any of these 
countries, roasted coffee from Costa Rica and distilled spirits and petroleum products from 
Honduras.
39  El Salvador applies MFN rates to all th ese products.  In addition, ethyl alcohol from 
Costa Rica or Honduras is subject to "import controls" (see also Chapter II(4)(ii)). 
43. The simple average tariff applied by El Salva dor to partners with which it has signed free 
trade agreements (FTAs) range from 1.3 per cent (C hile and Mexico) to 4.9 per cent (Chinese Taipei) 
(Table AIII.2).  At the beginning of 2009, El Salv ador applied a zero tariff on around 80 per cent of 
the tariff universe for all the partners with wh ich it had signed FTAs, except Chinese Taipei, for 
which the zero rate covered 57 per cent of the tariff universe. 
(v) Other charges affecting imports 
44. At each marketing stage, the import and sale of  the majority of goods and the supply of 
services are subject to the property transfer and services tax (known as value added tax (VAT))40, at a 
rate of 13 per cent.  The taxable base for imports is  the customs value plus tariff duties and any other 
taxes.41  For Salvadoran goods, the taxable base is th e selling price plus any other taxes applicable. 
45. Imports of machinery duly registered with the Di rectorate-General of Internal Taxation in the 
Ministry of Finance are exempt from VAT;  imports of buses and rental vehicles for public passenger 
transport are also exempt.  The services exempt fr om VAT include the follow ing:  public health, 
education, public land trans port of passengers, insurance and reinsurance, and banking. 
46. Since 2004, domestic and imported alcoholic beverages have been subject to a special tax 
determined according to the type of beverage and it s alcohol content (Table III.3).  This special tax 
applies to sales by the producer and to imports.  Prior to this, there was a special tax on alcoholic 
beverages amounting to C 0.05 for each percentage  of alcohol strength by volume per litre and a 
20 per cent ad valorem  tax on the retail price.42 
Table III.3 
Tax on alcoholic beverages, 2009 
Tariff heading Description Amount of the tax (US$/ 
percentage of alcohol 
strength by volume 
per litre) 
22.03.00.00 Beer made from malt  0.0825 
22.04.10.00 Sparkling wine  0.07 
22.04.21.00 
22.04.29.00 Other wine;  grape must with fermen tation prevented or arrested by the 
addition of alcohol  0.07 
22.04.30.00 Other grape must  0.07 
                                                      
39 Annex to Resolution No. 05-2006 (CEIE) of the Executive Committee for Economic Integration, 
16 June 2006. 
40 Title I of the Law on the tax on the transfer of property and the supply of services, Legislative 
Decree No. 296 of 31 July 1992. 
41 Article 48 of the Law on the prop erty transfer and services tax. 
42 See Chapter III(2)(v), Trade Policy Review:  El Salvador , WTO (2003), Geneva. El Salvador WT/TPR/S/226 
 Page 31 
 
 
Tariff heading Description Amount of the tax (US$/ 
percentage of alcohol 
strength by volume 
per litre) 
22.05.10.00 22.05.90.00 Vermouth and other wine fla voured with plants or aromatic substances  0.07 
22.06.00.00 Other fermented beverages, includi ng cider, perry and mead;  mixtures of 
fermented beverages and mixtures  of fermented beverages and 
non-alcoholic beverages  0.0825 
22.08.20.10 
22.08.20.90 Spirits of grape wine or grape marc  0.04 
22.08.30.10 
22.08.30.90 Whiskey  0.15 
22.08.40.10 Rum  0.05 
22.08.40.90 Other spirits obt ained by distillation after fermentation of sugar cane 
products  0.015 
22.08.50.00 Gin and geneva  0.14 
22.08.60.10 
22.08.60.90 Vodka  0.0325 
22.08.70.00 Liqueurs  0.14 
22.08.90.90 Other (spirits)  0.08 
Source : WTO Secretariat on the basis of the Law regulating the producti on and sale of alcohol an d alcoholic beverages. 
 
47. Both domestic and imported aerated beverages are subject to an ad valorem  tax of 10 per cent 
on the retail price, excluding VAT (Table III.4).43  This tax applies to sales by the producer and to 
imports. 
Table III.4 
Other taxes on specific products, 2009 
Tariff heading Description Amount of the tax 
Law on the taxation of plain or sweetened aerated beverages 
22.01.10.00 Mineral waters and aerated waters 10% 
22.01.90.00 Other (waters, not containi ng added sugar or any other sweetening 
matter or flavoured, ice and snow) 10% 
22.02.10.00 Waters, including mineral wa ters and aerated waters, containing 
added sugar or other sweeten ing matter or flavoured 10% 
22.02.90.10 Food preparations of the types included in Note 1(a) of Chapter 30, 
suitable for consumption as beverages 10% 
22.02.90.90 Other (non-alc oholic beverages) 10% 
Law on the taxation of tobacco products 
24.02.10.00 Cigars and cheroots, cont aining tobacco US$0.005 per unit + 39% 
24.02.20.00 Cigarettes, containi ng tobacco US$0.005 per unit + 39% 
24.02.90.00 Other (cigars, cheroot s and cigarettes of tobacco substitutes) US$0.005 per unit + 39% 
24.03.10.10 Handrolling tobacco for prep aring cigarettes US$0.005 per unit + 39% 
24.03.10.90 Other (smoking tobacco, wh ether or not containing tobacco 
substitutes in any proportion) US$0.005 per unit + 39% 
24.03.91.00 "Homogenized" or "reconstitu ted" tobacco US$0.005 per unit + 39% 
24.03.99.00 Other (tobacco and tobacco substitutes, processed;  tobacco 
extracts and juices) US$0.005 per unit + 39% 
Law on taxes for the control and regulation of firea rms, ammunition, explosives and similar articles 
36.01.00.00 Propellant powders 30% 
36.03.00.00 Safety fuses, detonating fu ses, percussion or detonating caps, 
igniters and electric detonators 30% 
36.04.10.00 Articles for fireworks 30% 
36.04.90.00 Other (signalling flares, ra in rockets and similar articles, 
firecrackers and other pyrotechnic articles) 30% 
93.02.00.00 Revolvers and pistols, othe r than those of headings 93.03 and 
93.04 30% 
93.03.10.00 Muzzle-loading firearms 30% 
93.03.20.00 Other sporting or hunting shotgu ns, with at least one smooth barrel 30% 
93.03.30.00 Other sporting or hunting shotguns 30% 
93.03.90.00 Other (firearms and artefacts which operate by the firing of an 
explosive charge) 30% 
                                                      
43 Article 1 of the Law on the taxation of plain or sweetened aerated beverages, Legislative Decree 
No. 641 of 7 March 1996. WT/TPR/S/226 Trade Policy Review 
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Tariff heading Description Amount of the tax 
93.05.10.00 Parts and accessories of revolvers or pistols 30% 
93.05.21.00 Shotgun barrels 30% 
93.05.29.00 Other (parts and accessories of shotguns) 30% 
93.05.99.00 Other (parts and accessories of articles of headings 93.01 to 93.04) 30% 
93.06.21.00 Cartridges 30% 
93.06.29.00 Other (pellets for air guns) 30% 
93.06.30 Other cartridges and parts thereof 30% 
93.06.90.00 Other (bombs, grenades, torpedoes, mines, missiles, etc.) 30% 
Source : WTO Secretariat based on the Ge neral administrative provisions  No. DGRA-004-2005 of 17 May 2005. 
 
48. A specific tax and an ad valorem  tax apply to both domestic and imported cigarettes and other 
tobacco products (Table III.4).44  These taxes apply to sales by the producer and to imports.  The 
specific tax amounts to US$0.005 on each cigarette or other tobacco product, while the ad valorem  
tax is 39 per cent.  The taxable base for domestic and imported products is the retail price, excluding 
VAT and the specific tax on tobacco products. 
49. A tax of 30 per cent applies to the sale of firearms, ammunition and pyrotechnic articles.45  
The taxable base is the selling price, excluding VAT.  Imports for personal use are also taxed.  The 
taxable base is the customs value plus tariff duti es and any other taxes applicable, including VAT. 
50. Until mid-2008, El Salvador taxed empty sacks and bags of synthetic fibre, whether produced 
domestically or imported, at 80 per cent.46  Legislative Decree No. 648, published in the Official 
Journal of 27 June 2008, abolished this tax. 
(vi) Prohibitions, restrictions and licensing 
51. El Salvador does not allow the import of certa in products (Table III.5).  The products 
prohibited include heavy passenger vehicles over ten years old.47  Previously, this prohibition applied 
to vehicles over 15 years old.48  It is also prohibited to import light passenger or freight vehicles over 
eight years old and heavy freight vehicles over 15 years old. 
Table III.5 
Import prohibitions, 2009 
Description 
Material that is subversive or doctrines contrary  to the State's political, social or economic order 
Material of an obscene character 
Films contrary to ethics and morals 
Abortifacient substances 
Slot machines 
Roulette games, game tables and any othe r prohibited games equipment or artefacts 
Opium with less than 9% of morphine, opium slag  and slash, and any artefacts for smoking opium 
Paper without the proper stamp for maki ng cigarettes, white or coloured, in pads, rolls, cylinders, booklets or tubes 
Machines and tools for fabricating coins 
Counterfeit currency 
                                                      
44 Article 1 of the Law on the taxation of tob acco products, Legislative Decree No. 539 of 
22 December 2004. 
45 Chapter III of the Law on taxes for the control and regulation of firearms, ammunition, explosives 
and similar articles, Legislative De cree No. 540 of 22 December 2004. 
46 See Chapter III(2)(v), Trade Policy Review:  El Salvador , WTO (2003), Geneva. 
47 Article 1 of the reforms to the Law on land transp ort, transit and highway safety, Legislative Decree 
No. 288 of 22 May 2007. 
48 Chapter III(2)(vii), Trade Policy Review:  El Salvador , WTO (2003), Geneva. El Salvador WT/TPR/S/226 
 Page 33 
 
 
Description 
Smooth silver coins of less than 0.900 of width 
Tokens of any type of metal or their alloys, that could circulate as coins 
Coffee bushes and coffee seeds for sowing  
Used motor vehicle over a certain number of years old 
Source : WTO Secretariat, on the basis of Legislative Decree No. 647 of 20 December 1990 and information provided by 
the authorities. 
 
52. There are 13 categories of goods that may only be imported by the State.49  The goods subject 
to this measure include implements of war, potassi um nitrate, stamped paper for cigarettes and raw 
sugar cane alcohol. 
53. In early 2004, El Salvador notified the WTO of the legal instruments containing information 
on import licensing procedures for goods subject to tariff quotas (Chapter IV(1)).50  It has not notified 
the sources for information on import licensing procedures for other goods, nor has it replied to the 
questionnaire on import licensing procedures.  In the context of its previous Review, El Salvador 
undertook to reply to the questionnaire and to s ubmit the relevant notifications on import licensing 
procedures "as soon as possible".51 
54. An import permit is required for the import of  certain goods (Table III.6).  The DGA has a 
system on the Internet to search for the im port requirements applicable to each product.52 
Table III.6 
Goods subject to import permits 
 Purpose of the 
permita Quantitative 
restrictionb Entity issuing the permit Legal basis 
Arms, ammunition and 
explosives Public safety Yes Ministry of National 
Defence Law on the control and regulation of 
firearms, ammunition, explosives 
and similar articles 
Pyrotechnic articles Public safe ty Yes Ministry of National 
Defence Law on the control and regulation of 
firearms, ammunition, explosives 
and similar articles 
Narcotics, psychotropic 
substances, aggregated products, precursors, chemical 
substances and veterinary and 
anaesthetic products Public health Yes Higher Council for Public 
Health Law regulating activities concerning 
drugs and Regulations on narcotics, psychotropic substances, precursors, 
chemical and aggregated substances 
and products 
Approximately 1,000 tariff lines 
(at the eight-digit level) 
covering products such as certain food preparations, 
chemicals and compounds, 
pharmaceuticals, fertilizers and perfumery preparations .. No Chemical/Pharmaceutical 
Supervisory Board Health Code and Regulations on 
proprietary drugs 
Alcohol Public health No Ministry of Public Health 
and Social Welfare Law regulating the production and 
sale of alcohol and alcoholic beverages 
Plants and animals and products thereof Sanitary and 
phytosanitary protection No Ministry of Agriculture 
and Livestock Law on plant and animal health 
Beverages, prepared foodstuffs 
and raw materials and food additives Public health No Minist ry of Public Health 
and Social Welfare Health Code 
                                                      
49 Article 5 of Legislative Decr ee No. 647 of 20 December 1990. 
50 WTO document G/LIC/N/1/SLV/1 of 3 February 2004. 
51 WTO document WT/TPR/M/111/Add.1 of 25 June 2003. 
52 DGA online information, Arancel electrónico DGA El Salvador .  Viewed at:  
http://appm.aduana.gob.sv/sacelectronico/Default.aspx WT/TPR/S/226 Trade Policy Review 
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 Purpose of the 
permita Quantitative 
restrictionb Entity issuing the permit Legal basis 
Chemical and 
chemical-biological products 
for agricultural use or for livestock or veterinary use Sanitary and 
phytosanitary 
protection No Ministry of Agriculture 
and Livestock Law on plant and animal health;  
Law on the control of pesticides, 
fertilizers and products for agricultural use;  and its 
implementing regulations 
Hydrocarbons Protection of the 
environment No Ministry of the Economy Law regulating the deposit, 
transport and distribution of petroleum products 
Sources and equipment generating ionizing radiation Public health No Minist ry of Public Health 
and Social Welfare Special regulations on radiological 
protection and safety 
Hazardous substances Public health and 
protection of the 
environment Yes Ministry of the 
Environment and Natural 
Resources Law on the environment and its 
implementing regulations 
Ozone-depleting substances Protection of the 
environment Yes Ministry of the 
Environment and Natural 
Resources Law on the environment and its 
implementing regulations 
Wildlife Protection of the 
environment Yes Ministry of the 
Environment and Natural 
Resources Law on the protection of wildlife 
.. Not available. 
a As indicated by the authorities in connection with this Review. 
b Refers to use of the permit as a way of controlling the volume of imports. 
Source : WTO Secretariat, on the basis of USAID, Directorate-General of  Customs (2008) and WTO (2003). 
 
55. In mid-2008, El Salvador abolished the licen sing regime used to control the volume of 
imports of sacks (bags) made from coarse fibre.53  The Ministry of the Economy issued import 
licences to users of such sack s according to the volume of demand and domestic production.54 
56. The import of some goods, for example, honey,  glucose syrup, malt extract, maize starch, 
gum Arabic and unrefined oils requires a permit fro m the Ministry of Public Health and Social 
Welfare (MSPAS) and a "visa" from the Chemi cal/Pharmaceutical Supervisory Board.  The 
authorities have indicated that the visa requirement al lows a register to be kept of all such products 
entering El Salvador.  Other products such as pure ethyl alcohol, kerosene and sulphuric acid also 
require a visa and an import authorization, both i ssued by the Higher Council for Public Health.  The 
import of disodium carbonate and potassium carbona te requires a visa issued by the Higher Council 
for Public Health and the Chemical/Pharmaceutical  Supervisory Board, as well as authorization from 
the MSPAS and the Higher Council for Public Health. 
57. Since the end of 2008, the import of around 70 products has no longer required a visa from 
the Chemical/Pharmaceutical Supervisory Board.55  Among the goods covered by this measure are 
engine oils, batteries for vehicles, water-based pain ts, cement, dyes, adhesives, liquefied petroleum 
gas, extinguishers, shoe polish, contact lenses , prostheses with no chemical substances, salt and 
hygiene products.  A visa from the Chemical/Pharm aceutical Supervisory Board is no longer required 
for the import of some foodstuffs, infant milk formula and veterinary medicines. 
58. A "single window for imports" has been opera ting in San Salvador since April 2007 and 
brings together officials from those bodies responsib le for issuing import permits (see section (1)(i) 
above). 
                                                      
53 Legislative Decree No. 648 of 27 June 2008. 
54 Idem . 
55 Information Bulletin No. DGA-024-2008, Productos que no requieren visado de la Junta de 
Vigilancia , of 19 November 2008. El Salvador WT/TPR/S/226 
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(vii) Contingency measures 
59. El Salvador has not applied any anti-dumping or countervailing measures since the previous 
Review.  It has not initiated any investigations in  relation to such measures and has not received any 
requests for investigation.  El Salvador h as submitted semi-annual reports to the WTO on 
anti-dumping and countervailing measures. 
60. In April 2008, El Salvador notified the WTO of  the Central American Regulations on Unfair 
Business Practices, approved in April 2007.56  The Committee on Anti-Dumping Practices 
(ADP Committee) and the Committee on Subsidies and Countervailing Measures (SCM Committee) examined this notification in October 2008 and May 2009.
57  The Regulations reflect the need "to 
update the regional regulations in accordance with the undertakings … within the framework of the 
World Trade Organization".58  In addition to these Regulations, the Agreement on Implementation of 
Article VI of the GATT 1994 and the Agreement on Subsidies and Countervailing Measures also 
form part of El Salvador's le gal framework for anti-dumping and countervailing measures and became 
domestic laws when the ratification of the Marra kesh Agreement was published in the Official 
Journal.59 
61. El Salvador does not exempt any preferential trading partner from the application of 
anti-dumping or countervailing measures. 
62. El Salvador has not applied any safeguard measu res since the previous Review.  It has not 
initiated any investigation in relation to such measures and has not received any requests for 
investigation. 
63. In March 2008, El Salvador notified the WT O of the Central American Regulations on 
Safeguard Measures, approved in April 2007.60  The WTO Committee on Safeguards examined this 
notification in October 2008 and May 2009.61  The Regulations reflect the need "to update the 
regional regulations in accordance with the undertak ings … within the framework of the World Trade 
Organization".62  In addition to these Regulations, the Agreem ent on Safeguards also forms part of the 
                                                      
56 WTO document G/ADP/N/1/SLV/3 and G/SCM/N/1/SLV/3 of 8 April 2008. 
57 El Salvador received questions from one Member (U nited States) concerning its notification.  The 
questions related to the application of the WTO rules an d regional rules;  access to the file;  the content of 
resolutions on imposition of measures;  the duration a nd review of measures;  procedures for initiating 
investigations;  and the submission of appeals (WTO document G/ADP/Q1/SLV/4-G/SCM/Q1/SLV/4 of 
9 October 2008).  El Salvador replied to these questi ons in November 2008 and received follow-up questions in 
March 2009;  the replies to the questions were circulated in May 2009 (WTO documents 
G/ADP/Q1/SLV/5-G/SCM/Q1/SLV/5 of 26 November  2008;  G/ADP/Q1/SLV/6-G/SCM/Q1/SLV/6 of 
25 March 2009;  and G/ADP/Q1/SLV/7-G/SCM/Q1/SLV/7 of 11 May 2009). 
58 Resolution No. 193-2007 (COMIECO-XLIV) of 24 April 2007. 
59 WTO documents G/ADP/N/1/SLV/1 of 24 March 1995 and G/SCM/N/1/SLV/1 of 27 March 1995. 
60 WTO document G/SG/N/1/SLV/3 of 10 March 2008. 
61 El Salvador received questions from one Member (U nited States) concerning this notification.  The 
questions related to the application of the WTO rules and their relation to the regional rules;  the functions of the investigating authority;  the conduct of visits to verify the information;  the duration, scope and review of the 
measures;  publication requirements;  and dissemination of semi-annual reports (WTO document 
G/SG/Q1/SLV/3 of 10 October 2008).  El Salvador replied to these questi ons in November 2008 and received 
follow-up questions in March 2009;  the replies to the questions were circulated in May 2009 (WTO documents 
G/SG/Q1/SLV/4 of 26 November 2008;  G/SG/Q1/SLV/5 of 24 March 2009;  and G/SG/Q1/SLV/6 of 
11 May 2009). 
62 Resolution No. 194-2007 (COMIECO-XLIV) of 24 April 2007. WT/TPR/S/226 Trade Policy Review 
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legal framework for safeguard measures and became domestic law when the ratification of the 
Marrakesh Agreement was publishe d in the Official Journal.63 
64. Pursuant to the Central American Regulations  on Safeguard Measures, El Salvador exempts 
the other Members of the CACM from the application of safeguard measures.64  Likewise, subject to 
certain criteria, El Salvador exempts most of its other preferential trading partners from the safeguard 
measures applied under WTO provisions.  In genera l, the criteria are that the imports of the 
preferential trading partners should not be "substantial" and should not contribute significantly to the 
injury. 
65. El Salvador may impose additional tariffs on 84 eight-digit tariff lines pursuant to the special 
safeguard provisions in the WTO Agreement on Agriculture (Chapter IV(1)). 
(viii) Technical regulations and standards 
66. In March 2004, El Salvador notified the WTO that  no special legislation was needed in order 
to apply the TBT Agreement inasmuch as followi ng ratification of the Marrakesh Agreement the 
WTO Agreements had become domestic laws, pur suant to the provisions in the Constitution.65  It also 
indicated that "[a]ll of El Salvador's state agen cies and the national authorities responsible for the 
implementation and administration of technical re gulations, standards and conformity assessment 
procedures have received copies of the Agreement on Technical Barriers to Trade (TBT Agreement) 
and been duly informed of the obligations arising therefrom".66  The latest notification from 
El Salvador on the application and administra tion of the TBT Agreement dates from March 2004. 
67. The enquiry point called for by Article 10.1 and 10.3 of the TBT Agreement is the Directorate 
for the Administration of Trade Agreements  (DATCO) in the Ministry of the Economy67, which is 
responsible for implementing the notifi cation provisions in the TBT Agreement.68 
68. Since the previous Review, no Member has rai sed concerns in the TBT Committee regarding 
El Salvador's technical regulations or conformity assessment procedures. 
69. El Salvador notified 114 technical regulations  and conformity assessment procedures between 
March 2003 and April 2009 (one notification in 2009, 13 in 2008, 11 in 2007, 24 in 2006, 20 in 2005, 
19 in 2004 and 26 in 2003).  Prior to that, it had notified 13 measures to the WTO.  Around one half 
of the notifications indicated that their purpose was to protect human he alth.  Other objectives 
frequently mentioned were the protection of cons umers and the environment.  Almost all the 
notifications gave a period of 60 days for submis sion of comments.  According to the authorities, 
El Salvador's technical regulations and conform ity assessment procedures are based on international 
standards and the recommendations of interna tional institutions working in the area of 
standardization. 
70. El Salvador has not notified any mutual recogn ition agreement on matters relating to technical 
regulations, conformity assessment procedures or standards. 
                                                      
63 WTO document G/SG/N/1/SLV/1 of 27 March 1995. 
64 Article 3 of the Central American Regulations on Safeguard Measures. 
65 WTO document G/TBT/2/Add.78 of 22 March 2004 and Article 144 of the Constitution of the 
Republic of El Salvador. 
66 WTO document G/TBT/2/Add.78 of 22 March 2004. 
67 WTO online information.  Viewed at:  http://www.wto.int/english/tratop_e/tbt_e/tbt_ 
enquiry_points_s.htm#e 
68 WTO document G/TBT/2/Add.78 of 22 March 2004. El Salvador WT/TPR/S/226 
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71. In its notification on the application and admini stration of the TBT Agreement, El Salvador 
identified the institutions which issue technical re gulations in El Salvador, namely, the National 
Science and Technology Council (CONACYT), the Ministry of the Environment and Natural 
Resources, the Ministry of Agriculture and Livest ock, the MSPAS, and the Ministry of Public 
Works.69  The Law on the National Science and Technology Council appoints CONACYT as the 
coordinator of the public and private bodies involv ed in drawing up technical regulations and 
conformity assessment procedures.70  Technical regulations or conformity assessment procedures 
drawn up by any institution are not valid unless th ey have undergone th e drafting and approval 
procedure laid down in the Law on the National Science and Technology Council.71 
72. The technical regulations, referred to as "manda tory Salvadoran standards" in the Law on the 
National Science and Technology Council, include re gulations concerning the international system of 
units, protection of the environment and "products, procedures and services that may affect the life, 
safety and integrity" of persons or other organisms.   Mandatory Salvadoran standards also include 
regulations that are "relevant to the economy or in the public interest."72 
73. The Law on the National Science and Technolog y Council determines the procedure for the 
drafting and approval of technical regulations.73  Committees set up by CONACYT's Board of 
Directors and composed of "appropriate persons" from the public and private sectors are responsible 
for preparing drafts of technical regulations.  Th e Law requires that draft technical regulations be 
submitted to CONACYT's Board of Directors befo re being transmitted to the Minister of the 
Economy for authorization in the form of an execu tive decision.  The Minister of the Economy may 
request that a draft technical regulation be revised within 15 days following its receipt.  The executive 
decisions by which technical regulations are approve d must be published in the Official Journal and 
the purpose of each technical regulation must be  published in a national newspaper with broad 
circulation. 
74. According to the authorities, CONACYT follows an  internal procedure based on the Code of 
Good Practice annexed to the TBT Agreement.  Th is procedure gives a minimum period of 60 days 
for holding public consultations on draft technical regulations.  Notification of the availability of the 
draft is published in a nationa l newspaper and the full text of the draft is published on 
CONACYT's website.  The authorities have also indi cated that, in practice, the time that elapses 
between the adoption of a technical regulati on and its entry into force is six months. 
75. The preparation and approval of conformity assessment procedures are subject to the same 
procedures as those for technical regulations. 
76. El Salvador keeps a public inventory of its technical regulations.74  In mid-2009, this 
inventory listed some 80 technical regulations, 44 of them issued since 2003.  Around one half of 
these fell within the category of "food technology".  Other categories that have a large number of 
technical regulations are "petroleum products" (1 4 per cent of all technical regulations), "the 
environment" (10 per cent) and "metrology" (9 per cent).  The authorities have indicated that 
approximately 15 technical regulations  have been annulled since 2003. 
                                                      
69 Idem . 
70 Law on the National Science and Technolo gy Council, Legislative Decree No. 287 of 
10 August 1992, Article 28. 
71 Ibid., Article 40. 
72 Ibid., Article 30. 
73 Ibid., Articles 32 to 40. 
74 Viewed at:  http://www.infoq.org.sv WT/TPR/S/226 Trade Policy Review 
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77. El Salvador applies 37 technical regulations developed and approved at the CACM level. 
78. CONACYT is empowered to accredit testing and calibration laboratories.75  It has accredited 
16 laboratories, four of them public and the remainder private.76  CONACYT publishes the fees for 
the accreditation of testing laboratories.  El Salva dor is not party either to the Mutual Recognition 
Agreement of the International Laboratory Accred itation Cooperation (ILAC) or to the Multilateral 
Recognition Agreement of the InterAme rican Accreditation Cooperation (IAAC). 
79. CONACYT has an accreditation programme for certification bodies.77  The authorities have 
indicated that, at the end of 2009, they were revising the guidelines for the recognition of accreditation of certification bodies issued by foreign institutions. 
80. El Salvador takes part in the activities of the International Organization for Standardization, 
the International Electrotechnical Commission, th e ILAC, the IAAC, the Pan-American Standards 
Commission, the Central American and Cari bbean Standardization Commission, and the 
Inter-American Metrology System. 
81. The Law on the National Science and Technolog y Council requires producers to prove once a 
year that their goods comply with the relevant technical regulations.
78  According to the authorities, in 
practice this provision only applies to certain produ cts.  Monitoring of compliance with technical 
regulations for both imported and Salvadoran goods takes place when the goods are already on the 
market. 
82. The same procedures as those for technical regul ations apply to the preparation and approval 
of standards referred to as "recommended Salvadoran standards" in the Law on the National Science 
and Technology Council, including the requirement s on publication in the Official Journal and 
approval by the Minister of the Economy.  Accordi ng to the authorities, there is a 60-day period for 
public consultation on draft standards as of notifica tion of their availability published in a national 
newspaper and publication of the full te xt of the draft on CONACYT's website. 
83. El Salvador notified the WTO that CONAC YT had accepted the Code of Good Practice 
annexed to the TBT Agreement.79  According to the Directory concerning the Code annexed to the 
TBT Agreement, CONACYT's work programme appears in the review El Salvador Ciencia y 
Tecnología  and is updated every quarter.80 
(ix) Sanitary and phytosanitary measures 
84. Through its Directorate-General of Plant a nd Animal Health (DGSVA), the Ministry of 
Agriculture and Livestock is responsible for san itary and phytosanitary measures applicable to 
imports of plants and animal s and their products, while the MSPAS, through its Food Hygiene 
Department, is responsible for san itary measures applicable to impor ts of foodstuffs.  The issue, 
                                                      
75 Article 28 of the Law on the National Science and Technology Council. 
76 CONACYT online information, Alcance de laboratorios acreditados .  Viewed at:  
http://www.conacyt.go b.sv/Alcance%20de%20 laboratorios.htm 
77 CONACYT (undated), Cinco años de gestión en ciencia, tecnología, innovación y calidad:  Junta 
Directiva 2002-07 .  Viewed at:  http://www.conacyt. gob.sv/Memoria%20CONACYT2007.pdf 
78 Article 76 of the Law on the National Science and Technology Council. 
79 WTO document G/TBT/CS/N/61 of 23 December 1996. 
80 ISO/IEC (2009), WTO TBT Standards Code Directory:  St andardizing bodies having accepted the 
WTO TBT Code of Good Practice for the Preparation, Adoption and Application of Standards , 28 February.  
Viewed at:  http://www.standards info.net/info/livelink/fetch/2000/148478/6301438/docs_wto/scd-en.pdf El Salvador WT/TPR/S/226 
 Page 39 
 
 
approval and implementation of sanitary and phytos anitary measures is mainly governed by the Law 
on plant and animal health, the Health Code a nd the Law on the National Science and Technology 
Council.  El Salvador also applies the Central Am erican Regulations on Sanitary and Phytosanitary 
Measures and Procedures, whose purpose is "to regulate sanitary and phytosanitary measures that may 
directly or indirectly affect trade among Stat es Parties and prevent them becoming unnecessary 
barriers to trade". 
85. El Salvador has designated the DATCO in the Ministry of the Economy, the DGSVA in the 
Ministry of Agriculture and Livestock, and th e Food Hygiene Department in the MSPAS as the 
national enquiry point.81  The DATCO is responsible for notifications under the SPS Agreement.82 
86. El Salvador is a member of the Codex Alimen tarius and the World Organisation for Animal 
Health-OIE, as well as being a contracting party to  the International Plant Protection Convention. 
87. Since the previous Review, one Member (U nited States) has expressed concern to the 
SPS Committee with regard to the requirements imposed  by El Salvador for the import of poultry and 
eggs.83  In April 2008, the SPS Committee was informed  that El Salvador and the United States were 
working together to resolve the issue.84  The authorities have indicated in connection with this Review 
that a mutually acceptable agreem ent has been reached with the United States on this issue.  
No Member has turned to the WT O's formal dispute settlement procedure in relation to questions 
concerning the sanitary and phytosanitary  measures applied by El Salvador. 
88. Two of the three measures appearing in the list of "measures contrary to intraregional free 
trade" published by the Secretariat for Central American Economic Integration are phytosanitary 
measures applied by El Salvador.  The measures in question concern imports of oranges from 
Honduras and broken or fragmented rice from Costa Rica.85  The authorities have indicated that this 
list has not been updated and that, by the end of  2009, only the measure concerning imports of 
Honduran oranges was still in effect. 
89. El Salvador has not notified any recognition of  equivalence for sanitary and phytosanitary 
measures since the previous Review.  It recognizes  the sanitary registration issued by Guatemala, 
Honduras and Nicaragua for foodstuffs  and beverages.  It also recognizes registration by the 
competent authorities in other CACM Members for fertilizers, pesticides and other agricultural 
inputs.86 
90. El Salvador does not allow the import of pl ants, animals or their products unless the 
DGSVA has issued an executive d ecree approving the "inspection systems, veterinary services, food 
safety and phytosanitary monitoring of pests a nd quarantine diseases" in the place of origin.87  For the 
purpose of this Review, the authorities have indicat ed that, when conducting sanitary evaluations, the 
DGSVA follows the criteria and procedures of th e World Organisation for Animal Health-OIE, the 
Codex Alimentarius and the International Plant Protection Convention.  The only bodies entitled to 
                                                      
81 WTO document G/SPS/ENQ/24 of 1 October 2008. 
82 WTO document G/SPS/NNA/14 of 1 October 2008. 
83 WTO document G/SPS/R/45 of 12 September 2007. 
84 WTO document G/SPS/R/49 of 18 June 2008. 
85 SIECA (2008), Medidas contrarias al libre comercio intraregional , 4 July.  Viewed at:  
http://www.sieca.org.gt/site/Vis orDocs.aspx?IDDOC=Cache/17990000002782/17990000002782.swf 
86 Article 21-Bis of the Law on the control of pestic ides, fertilizers and products for agricultural use, 
Legislative Decree No. 315 of 10 May 1973. 
87 Articles 2 and 13 of the Law on plant and an imal health, Legislative Decree No. 524 of 
18 December 1995. WT/TPR/S/226 Trade Policy Review 
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request a sanitary or phytosanitary evaluation are the competent national authorities in the country 
wishing to export to El Salvador. 
91. Based on the findings of its evaluation, the DGS VA may lay down sanitary or phytosanitary 
requirements as a condition for allowing import.  According to the authorities, these requirements 
depend on the level of risk for the product in qu estion and may involve certification issued by the 
exporting country, inspection at the point of entry,  or special treatment.  The regulations do not 
specify any time-limits for the sanitary or phytosanitary evaluation procedure. 
92. El Salvador does not apply any special registration requirements to importers of plants, 
animals or their products.  These imports are subject to  an import authorization issued by the Ministry 
of Agriculture and Livestock, and the form to be completed in order to obtain an authorization is 
available on line.88 
93. Under the Law on plant and animal health, the Ministry of Agriculture and Livestock has to 
determine the fees for inspection and quarantine services "on the basis of the real cost of the operation 
and the extent of the services".89 
94. The DGSVA keeps a database where the sanitary and phytosanitary requirements to be met 
for a particular product can be found.90  This database also shows the combinations of products and 
countries for which the DGSVA must undertake an evaluation before allowing import. 
95. The Health Code authorizes the MSPAS to de termine the minimum requirements to be met 
for foodstuffs that are imported  or produced in El Salvador.91  The elaboration and approval of these 
requirements are subject to the procedures applicab le to technical regulations (see section (1)(viii) 
above). 
96. El Salvador does not have any special registra tion requirements applicable to importers of 
foodstuffs and beverages, with the exception of al coholic beverages.  Imports of foodstuffs and 
beverages require authorization from the MSPAS.92  The requirements for obtaining an authorization 
can be found on the Internet and include the submissi on of a certificate of free sale issued by the 
competent authority in the country of origin of the foodstuffs or beverages.93 
97. Domestically produced or imported foodstuffs a nd beverages must be listed in the register 
kept by the MSPAS.94  The registration requirements can be found on the Internet and include the list 
of ingredients, the label and three samples of the product.95  Foodstuffs classified as low risk are given 
provisional registration within 48 hours following th e submission of an application and the other 
documents required by the regulations.  Th e list of low-risk foodstuffs appears in 
                                                      
88 Online information from the Ministry of Agriculture and Livestock, Sistema de información en 
sanidad agropecuaria - SISA .  Viewed at:  https://oas.mag.gob.sv/sisa/tramites.jsp 
89 Article 6. 
90 Online information from the Ministry of Agriculture and Livestock, Sistema de información en 
sanidad agropecuaria - SISA .  Viewed at:  https://oas.mag.gob.sv/sisa/tramites.jsp 
91 Health Code, Article 94. 
92 Ibid., Article 88. 
93 Online information from the MSPAS, Sistema de información de trámites en línea para la 
autorización de importación de alimentos, bebidas y sustancias químicas .  Viewed at:  
http://www.gaisa-mspas.gob.sv 
94 Article 95 of the Health Code. 
95 Online information from the MSPAS, Sistema de información de trámites en línea para la 
autorización de importación de alimentos, bebidas y sustancias químicas .  Viewed at:  
http://www.gaisa-mspas.gob.sv El Salvador WT/TPR/S/226 
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MSPAS Decision No. 1014.96  Provisional registration remains in effect for two months.  After this 
period, it must be replaced by definitive registration.   Nine national laboratories are authorized by the 
MSPAS to analyse the samples relating to app lications for the registration of foodstuffs.97 
98. El Salvador allows the import of genetically modified products provided that they comply 
with the Special Regulations on the safe handling of genetically modified organisms.98 
99. The MSPAS publishes the fees for authorization and registration formalities. 
100. El Salvador notified 41 sanitary and phyt osanitary measures between March 2003 and 
March 2009.  The vast majority of these gave a period  of 60 days in which to submit comments.  Only 
two were emergency notifications.  Around one half of the notifications concerned a standard laid 
down by one of the three standardization bodies sp ecifically mentioned in the SPS Agreement.  A 
further ten concerned national, fo reign or regional standards.  The remainder did not refer to any 
foreign standard. 
(2) MEASURES AFFECTING EXPORTS  
(i) Customs procedures 
101. The use of a customs agent to complete export formalities is optional.  Exporters must be 
listed in the register kept by the Export Pr ocessing Centre (CENTREX), whose purpose is to 
centralize, streamline and simplify export formalities.99  CENTREX has published the requirements 
for registration, which is immediate and automatic.100 
102. Exporters must register an "export application"  with CENTREX, irrespective of the product 
concerned.  For this purpose, they may use the In tegrated Foreign Trade System (SICEX) available on 
the Internet.101  SICEX is the single window linking exporters to CENTREX, Customs and other 
government bodies involved in export formalities.  Online registration of an export application is 
immediate and automatic.  Hard copies of th e goods declaration, the invoice and the shipping 
documents must be submitted to Customs in order to finalize export formalities. 
103. According to the authorities, if goods for export do not require physical inspection, customs 
clearance is virtually immediate.  Physical or  documentary inspections are conducted by Customs 
depending on the level of risk of the goods (secti on (1)(i)).  The proportion of exports subject to 
physical inspection is 4.3 per cent. 
                                                      
96 Decision No. 1014, Administrative regulations for the sanitary registration of processed foodstuffs 
and beverages classified as risk "C" and authorization for imports following special applications, of 
24 October 2008. 
97 Online information from the MSPAS, Sistema de información de trámites en línea para la 
autorización de importación de alimentos, bebidas y sustancias químicas .  Viewed at:  
http://www.gaisa-mspas.gob.sv 
98 Legislative Decree No. 78 of 1 July 2008. 
99 Online information from the Export Processing Ce ntre.  Viewed at:  http://www.centrex. gob.sv 
100 Idem .  Viewed at:  http://www.centrex.gob.sv/sc x_html/requisitos_registro_exportador.html 
101 See CENTREX (2009), Manual de usuario para autorizar exportaciones mediante el Sistema 
Integrado de Comercio Exterior (SICEX) , November.  Viewed at:  http://www.centrex.gob.sv WT/TPR/S/226 Trade Policy Review 
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(ii) Taxes and other charges 
104. El Salvador does not apply duties or other ta xes on exports.  VAT on exports is zero-rated.102  
Consequently, exporters may request a refund of VAT  paid on inputs or services used to produce the 
goods for export. 
(iii) Prohibitions, restrictions and licensing procedures 
105. El Salvador does not permit the export of lique fied petroleum gas in portable cylinders or 
used containers for liquefied petroleum gas.103  This measure applies under a programme subsidizing 
liquefied petroleum gas (Chapter IV(3)).  Since mid-2008, a licence has been required to export natural gas.  The Directorate of Hydrocarbons and Mining in the Ministry of the Economy grants 
licences provided that "domestic supplies are not affected".
104 
106. There is also a ban on the export of ferrous a nd non-ferrous waste and scrap of tariff headings 
HS 7204.1000, 7204.2900 and 7404.  This measure, which is a response to the increase in exports of 
products made from materials obtained by unlawfu l means, does not apply to those exporters 
registered with the DGA which export products deri ved "directly from [their] industrial processes".105 
107. Exports of fertilizers, pesticides and other ag ricultural inputs must be authorized by the 
Ministries of the Economy and of Agriculture a nd Livestock.  Both Ministries grant such 
authorizations provided that "domestic supplies are guaranteed".106 
108. Exports of cane sugar must be authorized by the Governing Board of the Salvadoran Sugar 
Agro-Industry Council.107  Authorization is contingent upon "the  obligation for refineries involved in 
sugar processing in El Salvador to supply the domesti c market as a priority".  A permit issued by the 
Salvadoran Coffee Council is required to export coffee.108 
109. Pursuant to its international commitments on th e environment and public health, El Salvador 
imposes prohibitions and restrictions on the export of certain goods. 
(iv) Tariff and tax concessions 
110. In January 2002, El Salvador notified the WTO of the programme applied under the Export 
Recovery Law, pursuant to Article 25 of the SCM Agreement.109  It also requested an extension of the 
transition period provided by Article 27.4 of the SCM Agreement in order to phase out this 
programme.110  In December 2002, the SCM Committee granted the extension until 
                                                      
102 Article 75 of the Law on the tax on the tran sfer of property and the supply of services. 
103 Article 8-B of the Law regulating the deposit, tr ansport and distribution of petroleum products, 
Legislative Decree No. 169 of 23 December 1970. 
104 Article 50 of the Law on natural gas, Legislative Decree No. 630 of 20 June 2008. 
105 Articles 1 and 2 of Legislative Decree No. 456 of 17 December 2007. 
106 Article 21 of the Law on the control of pesticides, fertilizers and products for agricultural use, 
Legislative Decree No. 315 of 10 May 1973. 
107 Article 20 of the Sugar Agro-Industry Production, Industrialization and Marketing Law, Legislative 
Decree No. 490 of 17 August 2001. 
108 Article 21 of Legislative Decree No. 353 of 19 October 1989. 
109 WTO document G/SCM/N/38/ SLV-G/SCM/N/48/SLV-G/SCM/N/60/SLV-G/SCM/N/71/SLV of 
10 January 2002. 
110 WTO document G/SCM/N/74/SLV/2 of 7 January 2002. El Salvador WT/TPR/S/226 
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31 December 2005.111  Subsequently, El Salvador submitted th ree notifications on the programme in 
question, covering the period from 1 July 2001 to 31 December 2004.112 
111. The Export Recovery Law has not been amended si nce the previous Review of El Salvador in 
2003.  It gives exporters a refund of 6 per cent of the f.o.b. value of their exports outside Central 
America.113  Exporters of minerals are not entitled to th e refund, while exporters of coffee and sugar 
have the right provided that not less than 30 per cent of the value added of their exports is of 
Salvadoran origin.  Exporters of "organic" and "gour met" coffee are not subject to this requirement.  
Exporters of cotton are not eligible for the refund. 
112. Between 2000 and 2004, the average annual amount refunded under the Export Recovery 
Law was US$15.4 million.114  Exports benefiting from the incentive under this Law accounted for 
7.8 per cent to 9.3 per cent of El Salvad or's total exports over the same period. 
113. In December 2001, El Salvador requested an ex tension of the transition period provided by 
Article 27.4 of the SCM Agreement in order to  phase out export subsidies under the programmes 
implemented within the framework of the Law on industrial and marketing free zones.115  In 
accordance with the procedure approved by th e SCM Committee for granting such extensions, 
El Salvador notified these programmes.116  The Committee granted annual extensions during the 
period 2003-2007 for the elimination of  export subsidies under these programmes.117 
114. In September 2007, El Salvador once again requested an extension under the Law on 
industrial and marketing free zones, in accordan ce with the procedure adopted by the General 
Council.118  According to this procedure, El Salva dor undertook to phase out export subsidies under 
the programmes implemented within the framework  of the Law on industrial and marketing free 
zones by 31 December 2015 at the latest and to su bmit an action plan for this purpose in 2010.  
Pursuant to the procedure approved by the Genera l Council, El Salvador notified these programmes in 
mid-2008.119  The SCM Committee granted annual extens ions during the period 2008-2009 for the 
elimination of export subsidies under these programmes. 
                                                      
111 WTO document G/SCM/99  of 18 December 2002. 
112 WTO documents G/SCM/N/99/SLV of 4 August 2003;  G/SCM/N/114/SLV of 2 July 2004;  and 
G/SCM/N/128/SLV of 4 July 2005. 
113 Articles 2 and 3 of the Export Recovery Law, Legislative Decree No. 460 of 18 April 1990. 
114 WTO document G/SCM/N/128/SLV of 4 July 2005. 
115 WTO document G/SCM/N/74/SLV/1 of 3 January 2002. 
116 WTO documents:  G/SCM/N/38/SLV/Suppl.1-G/SCM/N/48/SLV/Suppl.1- 
G/SCM/N/60/SLV/Suppl.1-G/SCM/N/71/SLV/Suppl .1, G/SCM/N/114/SLV,  G/SCM/N/123/SLV, 
G/SCM/N/146/SLV, G/SCM/N/155/SLV and G/SCM/N/177/SLV.  The procedure for granting the extensions 
provided by Article 27.4 to certain developing country Members appears in WTO document G/SCM/39 of 20 November 2001. 
117 WTO documents G/SCM/65 and G/SCM/65/Add.1-4. 
118 WTO document G/SCM/N/163/SLV of 17 September 2007.  The procedure for continuing the 
extensions granted to certain developing country Me mbers pursuant to Article 27.4 of the SCM Agreement 
during the transition period provided by Article 27.2(b) of the SCM Agreement appears in WTO document 
WT/L/691 of 31 July 2007. 
119 WTO document G/SCM/N/177/SLV of 7 July 2008. WT/TPR/S/226 Trade Policy Review 
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115. Since the previous Review of El Salvador, ther e have been five amendments to the Law on 
industrial and marketing free zones.120 
116. The Law on industrial and marketing free zon es allows businesses located in free zones or 
declared to be "inward processing warehouses" to im port equipment and inputs without paying tariffs 
or other import taxes.121  Under this Law, such businesses are also exempt from payment of income 
tax, the tax on transfer of real estate and muni cipal taxes on assets.  The incentives provided by the 
Law are granted as long as the business is operating a nd provided that the requirements laid down in 
the Law are met.  These incentives may not be comb ined with those under the Export Recovery Law. 
117. Some of the activities that are not eligible fo r the tax benefits and incentives provided under 
the Law on industrial and marketing free zones are:   exploration, exploitation and processing of 
natural gas, petroleum and petroleum fuels, oils , greases and lubricants;  production and marketing of 
cement and clinker;  marketing of metal waste a nd scrap;  exploitation of minerals;  and fishing, 
except for tuna for processing.122 
118. The Law on industrial and marketing free zones does not lay down any minimum export 
requirements.  Sales to the domestic market are subject to payment of tariffs and other taxes 
applicable to imports.123  The customs value is the c.i.f. value of the goods, except in the case of 
textiles and clothing, whose customs valu e excludes "the domestic added component".124  Likewise, at 
least half of the value of textiles and clothing inte nded for the domestic market must be of Salvadoran 
origin.125  The income earned from sales to the domest ic market is subject to income tax and 
municipal taxes. 
119. Agricultural products in Chapters 1 to 24 of the HS 2007 intended for the domestic market 
must also meet national content requirements and their processing comes under the Law on industrial and marketing free zones.  The value of sales of such products on the domestic market (as a 
proportion of each enterprise's total sales) may not  exceed the proportion of the Salvadoran content 
value in the value of sales to the domestic market. 
120. Enterprises benefiting from the Law on industrial and marketing free zones must meet the 
national regulations on hea lth and the environment and give thei r employees all the benefits laid down 
in the labour legislation.
126 
121. El Salvador's notifications to the WTO do not contain any information on the amount of the 
subsidies granted under the Law on industrial an d marketing free zones.  According to these 
notifications, net exports from free zones and inward processing warehouses amounted to 
US$564 million in 2007, compared to US$456 million in 2000 (see also Chapter IV(2)). 
                                                      
120 Legislative Decree No. 130 of 23 January 2004;  Legislative Decree No. 616 of 16 March 2005;  
Legislative Decree No. 858 of 9 December 2005;  Le gislative Decree No. 943 of  24 February 2006;  and 
Legislative Decree No. 483 of 20 December 2007. 
121 Articles 17 and 19 of the Law on industrial and ma rketing free zones, Legisl ative Decree No. 405 of 
23 September 1998. 
122 Law on industrial and marketing free zones, Article 6. 
123 Ibid., Article 3. 
124 Idem . 
125 Idem . 
126 Ibid., Article 29. El Salvador WT/TPR/S/226 
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122. In October 2007, the Legislative Assembly  approved the Law on international services.127  
This Law gives fiscal incentives to businesses e xporting services located in "parks" and service 
centres.  The activities giving the right to these incen tives include international distribution services;  
international logistics operations;  international call centres;  the d esign and development of software, 
and computer systems and programs;  research and de velopment;  repair and maintenance of aircraft 
and vessels;  support for administrative procedures;  and medical services.128  Firms providing repair 
and maintenance services for aircraft and vessels and call centres do not have to be located in a services park in order to be eligible for these incen tives but may operate in "service centres", that is to 
say, defined areas where there is only one firm.
129 
123. The incentives provided by the Law consist of ex emptions from:  tariffs and other taxes on 
imports of goods needed to supply the service in question;  income tax;  and municipal taxes on 
assets.  The incentives provided by the Law are granted as long as the business is operating and 
provided that the requirements laid down in the Law are met.  Imports of foodstuffs and beverages, 
tobacco, luxury goods, motor vehicles and some ot her goods are subject to payment of tariffs and 
other applicable taxes. 
124. The Law on international services allows busin esses established in service parks or centres to 
supply services to the domestic market.130  Firms which provide medical ser vices or repair or maintain 
vessels and aircraft are not allowed to do so.  Sale of services to the domestic market is subject to payment of income tax, VAT and the applicable municipal taxes. 
125. Firms providing support for administrative procedures must invest at least US$150,000 
during their first year of operation in order to be  eligible for the incentives provided by the Law on 
international services.
131  They must also provide at least ten permanent jobs and have signed a 
contract for at least one year with their client.  Suppliers of medical services must also meet minimum investment requirements.  The minimum amount in the case of firms providing medical services involving surgical operations is US$10 million, comp ared to US$3 million if the firm does not offer 
surgery. 
126. The Ministry of the Economy is responsible for authorizing the tax incentives provided in the 
Law on international services.  By August 2009, El  Salvador had not authorized any service park 
under the Law on international services.  Neverthel ess, 25 businesses have made use of the Law:  
13 of these are in free zones and are mainly engaged in  international logistics activities, while most of 
the other 12 are international call centres. 
127. The Law on tourism, approved in 2005, authorizes the Ministry of Finance to grant fiscal 
incentives to tourism businesses which invest in areas declared to be "projects of national tourist 
interest" by the Ministry responsible for tourism (section (3)(iii)).
132 
(v) Promotion, financing, insurance and guarantees 
128. Through the commercial banks, the Multisectoral Investment Bank (BMI), a public credit 
institution, offers loans for up to 365 da ys to finance exporters' working capital.133  The BMI's annual 
                                                      
127 Legislative Decree No. 431 of 25 October 2007. 
128 Law on international services, Article 5. 
129 Ibid., Article 24. 
130 Ibid., Article 8. 
131 Ibid., Article 23. 
132 Article 22 of the Law on tourism, Legislative Decree No. 899 of 20 December 2005. WT/TPR/S/226 Trade Policy Review 
Page 46 
 
 
interest rate for commercial banks granting this type  of loan is 5.75 per cent.  In 2007, the BMI 
granted loans totalling US$2.3 million to exporting firms.  Each bank determines th e rate of interest to 
be paid by the exporters. 
129. Under the "Export with guarantees" programme , the BMI guarantees certain commercial bank 
loans for companies which export to Ca nada and the United States of America.134  The loans 
guaranteed must be backed up by the commercial i nvoice issued by the exporter.  The amount of the 
guarantee is the amount of the commercial invoice and the cost is 1 per cent (plus VAT) of the 
amount of the invoice.  Between 2006 and mid-2009, the BMI had guaranteed approximately US$2.7 million. 
130. The Export Promotion Fund (FOEX) is a Ministry of the Economy programme giving 
financial assistance to small and medium-sized ente rprises for the promotion of their exports.  The 
authorities have indicated that the majority of the FOEX's resources come from  international grants.  
Firms with annual sales not exceeding US$7 million ar e eligible for assistance under the FOEX.  The 
amount of the financial support covers up to 70 per cent of the cost of the project.  Between 2002 and 
mid-2009, the amount disbursed under the FO EX amounted to some US$3.9 million. 
131. The National Export and Investment Promoti on Commission (CONADEI), attached to the 
Office of the President of the Republic, was set up in 2004 with the aim of encouraging growth and 
diversification of exports and attracting foreign investment.
135  CONADEI operates under the names 
of two previously existing bodies:  "Exporta El Salvador" and "PROESA".  When it was set up, CONADEI took over the assets of both these bodies (as well as those of the Foreign Trade Services 
Centre or "Trade Point El Salvador"). 
132. The principal activities of CONADEI are to disseminate information on foreign markets, 
develop export strategies and promote El Salvador's products abroad.
136  CONADEI also provides 
potential investors with information and gives assi stance for the establishment of businesses, as well 
as for completing formalities after they have been set up.137 
(3) OTHER MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Creation and taxation of businesses 
133. A recent study by the World Bank shows that the ease with which businesses can be created 
has made notable progress in El Salvador in r ecent years, although it suggests improvements as 
regards payment of taxation.  Businesses with Salvad oran or foreign capital domiciled in El Salvador 
are eligible for the same benefits. 
134. Trading companies in El Salvador are governed  by the Commercial Code (Legislative Decree 
No. 671 of 8 May 1970) and amendm ents thereto, the most recent of which was contained in 
Legislative Decree No. 641 of 26 June 2008.  Any Sa lvadoran or foreign firm wishing to operate in 
El Salvador, as well as its respective legal representatives, the members of the board of directors, individual traders and any changes to such entities, mu st be recorded in the Commercial Register.  In 
                                                                                                                                                                    
 
133 BMI online information, Pre y exportación de productos .  Viewed at:  
https://www.bmi.gob.sv/portal/page?_pagei d=38,89744&_dad=portal&_schema=PORTAL 
134 Ibid., Exporte con garantía .  Viewed at:  
https://www.bmi.gob.sv/portal/page?_pagei d=38,57336&_dad=portal&_schema=PORTAL 
135 Executive Decree No. 57 of 23 November 2004. 
136 Online information from Exporta El Salvad or.  Viewed at:  http://www.exporta.gob.sv 
137 Online information from PROESA.  Vi ewed at:  http://w ww.proesa.com.sv El Salvador WT/TPR/S/226 
 Page 47 
 
 
order to facilitate formalities for setting up busin esses, the National Registry Centre (CNR), the 
Ministries of Finance and Labour, and the Salvadoran Social Security Institute have jointly set up a 
single window for comprehensive services in the offi ces of the CNR's commercial registry, where the 
services provided by the various bodies are centralized.138 
135. The Commercial Code classifies businesses into pa rtnerships or corporations;  both types of 
business may have open-ended capital.  Partnershi ps may be:  general partnerships;  limited 
partnerships;  or limited liability companies.  Co rporations may be established as:  public limited 
companies;  or partnerships limited by share capita l.  There is a minimum capital requirement for 
setting up a company and, following the reforms introdu ced into the Commercial Code in 2008, this is 
US$2,000.  In the case of a public limited company, this capital must be fully paid up and at least 
5 per cent of the value of each share must be paid in cash.  The most common type of business is a 
public limited company. 
136. Foreign businesses may operate in El Salvador e ither by electing domicile in the country or 
setting up subsidiaries, which must be registered in  the Commercial Register.  No prior authorization 
is required to set up a foreign company.  The cap ital requirements are those mentioned above.  The 
company or subsidiary is subject to the laws and au thorities of El Salvador in respect of deeds, rights 
and obligations acquired in Salvadoran territory or having effect there.  The formalities are the same 
as those for Salvadoran companies. 
137. A company's legal representative may be a foreigner but if so the requirement is to reside in 
El Salvador and have resident status.  Resident stat us as an investor is given to foreign investors who 
invest more than 4,000 minimum monthly salaries.  Companies with foreign capital set up in 
El Salvador have the same obligations and in ge neral may obtain the same benefits as Salvadoran 
companies.  The income of Salvadoran companie s and companies with foreign capital domiciled in 
El Salvador is subject to a monthly 1.5 per cent withholding tax on their invoices.  For those 
companies not domiciled in El Salvador but opera ting there, the withholding tax is 20 per cent.  
Foreign companies may freely transfer capital and profits. 
138. The main taxes on business activities are:  in come tax, which amounts to 25 per cent of 
taxable income for legal persons, after deducting th e legal reserve, and up to 30 per cent of taxable 
income for natural persons;  social security contribu tions (7.5 per cent of gross salaries);  pension fund 
contributions (6.75 per cent of gross salaries);  othe r payroll taxes (1 per cent of gross salaries);  and 
capital gains tax (1 per cent of such gains) .  The basic VAT rate is 13 per cent. 
139. According to calculations by the World Bank,  in 2008 taxes as a whole in El Salvador 
amounted in practice to 34.9 per cent of profits, the lowest figure in Central America.139  This rate is 
noticeably lower than the average for all Latin American and Caribbean countries (48.6 per cent) or 
all OECD countries (45.3 per cent). 
140. In 2009, the World Bank ranked El Salvador 72nd out of 181 economies as regards "ease of 
doing business", a compound measurement taking into account various aspects of the regulations and 
business environment in a country.  The report showed  that there had been significant improvement as 
regards the procedures to be follo wed when setting up a business, and that eight procedures were 
required, which took an average of 17 days, compared to 9.7 procedures and 64.5 days on average for 
                                                      
138 Information available on the CNR's webs ite at:  http://www.e.cnr.gob.sv/portal/ 
139 Of this percentage, 17 percentage points correspon d to income tax (taking into account total profits), 
17.2 per cent to social security and health taxes, and the rest to other ta xes.  Online information from the World 
Bank.  Viewed at:  http://www.doingbusiness.org/ExploreTopics/Paying Taxes/ WT/TPR/S/226 Trade Policy Review 
Page 48 
 
 
Latin America and the Caribbean.140  Nevertheless, El Salvador's classification was lower as regards 
ease of paying taxes (124th out of 181 countries).141 
(ii) Competition policy and price controls 
141. Since the previous Review, El Salvador has made notable progress in its competition policy, 
both as regards the legislative and institutional frame works.  This is of special importance because 
small markets have a tendenc y towards concentration. 
(a) Competition policy 
142. Since the previous Review in 2003, El Salvador has introduced special legislation on 
competition.  This is contained in the Co mpetition Law (Legislative Decree No. 528 of 
26 November 2004, amended by Legislative De cree No. 436 of 18 October 2007) and in the 
implementing regulations for the Competition Law (Legislative Decree No. 126 of 5 December 2006, 
amended by Executive Decree No. 63 of 29 May 2008).  The Law came into force on 1 January 2006.  In addition, Article 110 of the C onstitution prohibits monopolistic pr actices in order to guarantee 
freedom to do business and to protect consumers,  and it provides that monopolies may only be 
authorized for the State or local authorities when th is is imperatively in the interests of society. 
143. The Competition Law prohibits agreements, pacts, arrangements, contracts between 
competitors and non-competitors, as well as acts be tween competitors and non-competitors, for the 
purpose of limiting or restricting competition or preventing access to the market by any economic operator.  The Law applies to all economic operato rs, whether natural or legal persons, State or 
municipal bodies, businesses in which the State h as a holding, cooperatives, or any other body 
involved in economic activities, with the exceptio n of those economic activities reserved by the 
Constitution and the legislation exclusively to the Stat e or local authorities.  In practice, the number of 
exceptions is limited.  For example, the treatment a nd disposal of solid waste is restricted to local 
authorities and, consequently, remains out side the scope of the Competition Law. 
144. The Competition Law established the Supervis ory Authority for Competition, a public body 
with its own legal status and assets and of a t echnical nature, with administrative and budgetary 
autonomy to carry out the responsibilities and duties de termined in the Law itself.  The Supervisory 
Authority deals with the Government through the Ministry of the Economy.
142  It has been operating 
since 2006 and its objective is to ensure  compliance with the Competition Law. 
145. The Competition Law specifies that the follo wing are anti-competitive practices between 
competitors and as such are prohibited:  (a) fixing prices or other terms of purchase or sale;  (b) fixing 
volumes of production;  (c) fixing prices in any form of public or private bidding procedure, with 
some exceptions;  and (d) dividing up the market.  Anti-competitive practices between 
non-competitors that are prohibited by the Law include:  (a) sale contingent upon the buyer 
purchasing other products from the supplier;  (b) tran sactions subject to the requirement not to use, 
purchase or sell goods or services normally offered to third parties or by third parties;  and 
(c) understandings among various economic opera tors;  in such cases it must be proved, inter alia , 
that the offender holds a dominant position in the market and that such practices have had or may 
                                                      
140 World Bank (2009), Doing Business 2009 .  Viewed on line at:  http://www.doingbusiness.org/ 
ExploreEconomies/?economyid=62. 
141 Idem . 
142 Further information on the activities of the Supervisory Authority can be found at:  
http://www.sc.gob.sv/Lasuper/index.htm El Salvador WT/TPR/S/226 
 Page 49 
 
 
have the effect of restricting competition and, in any event, the interests of consumers have suffered 
prejudice. 
146. In general, the Law does not allow abuse of a dominant position.  It also contains provisions 
on mergers.  Mergers that involve  the amalgamation of total asset s exceeding 50,000 minimum urban 
salaries (SMU, US$121.86 million in October 2009), or where total income exceeds 60,000 SMUs 
(US$146.23 million in October 2009) require prior au thorization from the Supervisory Authority for 
Competition, which has to examine whether the merg er would lead to a significant restriction of 
competition.  Nevertheless, the Supervisory Au thority may not refuse economic mergers if the 
interested parties show that there could be sizeable  gains in efficiency.  The Supervisory Authority 
must take a decision on the merger within a period not exceeding 90 calendar days from the day 
following that of submission of the application.  The decision must lay down the terms under which the economic merger is to take place.  In the absence  of such a decision, it will be understood that the 
economic merger may go ahead.  In the case of ec onomic mergers by economic operators subject to 
supervision by another entity (see Chapter IV(4)), the Supervisory Authority for Competition gives its 
opinion on their admissibility and this is binding. 
147. Proceedings before the Supervisory Authority may be initiated either ex officio  or following a 
complaint.  The head of the Authority may decree pr eventive measures if there is  an imminent risk for 
the market.  The decision giving a definitive ruling in  the proceedings may be subject to appeal, which 
must be lodged with the Governing Board of the Su pervisory Authority in writing.  A decision has to 
be taken on the appeal within a maximum period of ten working days subsequent to its receipt.  A 
judicial appeal may also be made. 
148. Violations of the Competition Law are punished by fines that depend on factors such as the 
seriousness of the offence or the prejudice cau sed.  Fines may exceed 5,000 SMUs (US$12.1 million 
in October 2009) only if the act committed is partic ularly serious.  In addition to economic sanctions, 
in its final decision the Supervisory Authority ma y order cessation of the anti-competitive practices 
within a specified period and may lay down the re quisite conditions and ob ligations, which may be 
structural or concern behaviour.  The same sanc tions may be imposed on economic operators who, 
although required to do so, did not request aut horization for a merger.  If an economic operator 
required to seek approval of an economic merger do es not comply with the terms of the final decision 
taken, the Supervisory Authority may impose a fine of up to 5,000 SMUs (US$12.1 million in 
October 2009) for each day of failure to comply with the decision.  Violations of competition 
regulations are no longer subject to penal sanctions. 
149. Between early 2006 and October 2009, the Supe rvisory Authority received 30 complaints 
concerning anti-competitive practices and initiated nine investigations ex officio .  In 17 of these cases, 
it was determined that the complaint was unfounde d and in seven that it was inadmissible;  in 
one case the complaint was withdrawn;  and in a nother the proceedings were suspended;  in 
two cases, a public policy recommendation was made;  and in two other cases fines were imposed.  In 
October 2009, the remaining cases were the subject of administrative proceedings or were being 
reviewed.  In one case against three oil companies, the maximum fine of US$852,000 was imposed for abuse of a dominant position for the purpose of re stricting competition in the market and for price 
discrimination.  In another important case, fi nes were imposed on two telecommunications 
companies.
143  The ex officio  cases mainly concerned the electricity, telecommunications and travel 
sectors.  In one electricity-related case, it was f ound that some companies had abused their dominant 
position and they were fined and required to cease  the anti-competitive practice immediately.  In 
another case concerning abuse of a dominant position, fines were imposed on two companies.  In the 
                                                      
143 Details of these cases and of the decisions taken by the Supervisory Authority can be viewed at:  
http://www.sc.gob.sv/P ublicaciones/index.htm WT/TPR/S/226 Trade Policy Review 
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other cases, one was closed (liquid fuels) and the other was the subject of a public policy 
recommendation (cable television). 
150. The Supervisory Authority also turns to punitive administrative proceedings, fining 
companies for their failure to cooperate in providing  information in the course of an investigation or 
in sectoral studies conducted by the Supervis ory Authority:  between 2006 and October 2009, 
seven companies in the telecommunications sector, three in the medicines sector and one sugar producer were fined for failing to cooperate. 
151. According to information from the Supervisor y Authority, between the end of 2006 and 
October 2009, requests were made for 27 economic mergers:  in eight of these cases the merger was 
authorized;  in one case it was decided that it did not require prior approval;  in 13 cases it was 
decided that the request was unfounded;  in three cases, it was considered inadmissible;  in one case 
the request was withdrawn;  and in another, it was dismissed;  lastly, two cases are still being decided.
144 
152. The Supervisory Authority for Competition has signed agreements or memorandums of 
understanding with similar competition institutions in the following countries:  Costa Rica, Chile, 
Honduras, Mexico, Nicaragua, Panama, Peru and Spain.145  The agreements with Costa Rica, 
Honduras, Nicaragua, Panama and Peru are agr eements to promote competition which imply 
coordination and cooperation among the agencies in th e signatory countries.  The agreements with the 
agencies in Chile, Mexico and Spain concern technical assistance.146 
153. The Supervisory Authority also undertakes s ectoral studies on competition:  between 2006 
and October 2009, it carried out ten such studies concer ning land transport of freight;  liquid fuels;  
medicines (two);  the electricity sector;  the poultry subsector;  liquefied gas;  telecommunications;  
the sugar industry;  and the dairy industry.147 
154. In a recent study on competition policy in El Sa lvador, the OECD indicated that this policy 
had been successfully initiated and that El Salvador's  experience could serve, at least in some form, as 
a model for an effective way of starting to implement a competition policy.148  The study also 
indicated that the Supervisory Authority had rapi dly developed an effective programme to protect 
competition and that its greatest challenge was to implement the Law successfully, particularly in 
combating cartels.  The OECD suggested, however, some adjustments to improve implementation of the Law.  The main recommendations of the study are:  (a) to focus on developing an anti-cartel 
programme;  (b) to implement a clemency programme as a tool for combating cartels;  (c) to modify 
the notification thresholds for economic mergers;  and (d) to achieve better interaction between policy 
to protect competition and policy to protect consumer s.  The OECD considered that, as El Salvador's 
economy was relatively small, the thresholds fo r economic mergers were high and it might happen 
                                                     
 
144 Detailed information on the Supervisory Author ity's review and decision in each of the cases 
examined can be viewed a t:  http://www.sc.go b.sv/Publicaciones/concentraciones.htm 
145 The institutions concerned are, by country:  Costa Rica (Commission to Promote Competition, 
agreement signed in November 2007);  Chile (Tribunal to Protect Free Competition and National Economic 
Prosecutor's Office, May 2007);  Honduras (Commission to Protect and Promote Competition, June 2008);  
Mexico (Federal Competition Commission, September 2007);  Panama (Consumer Protection and Competition Authority, September 2007);  Peru (National Institute for the Defence of Competition and the Protection of 
Intellectual Property (INDECOPI), August 2007);  and Spain (Competition Court, February 2007). 
146 Detailed information on these agreements can be  viewed at:  http://www. sc.gob.sv/Publicaciones/ 
convenios.htm 
147 These studies can be viewed at:  h ttp://www.sc.gob.sv/Estudios/estudios.htm 
148 OECD and Inter-American Development Bank (2008), Derecho y Política de la Competencia en 
El Salvador .  Peer review, Paris.  Viewed at:  http://www.oecd.org/dataoecd/8/52/41597186.pdf El Salvador WT/TPR/S/226 
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that a merger situated below the notification threshold was anti-competitive and prejudicial to 
consumers. 
(b) Price controls 
155. The Law on Consumer Protection gives the c onsumer ombudsman in the Ministry of the 
Economy the authority to determine and modify maxi mum prices for intermediate and final goods for 
use or for consumption and for services in cases of national emergency, provided that these are 
essential goods or services.  The authorities have indicated that this power was not used during the period under review. 
156. The National Aqueducts and Se wage Authority regulates water supply rates, while the 
General Supervisory Authority for Electricity an d Telecommunications regulates electricity and 
telephone rates. 
(iii) Incentives 
157. The incentives given by El Salvador to its production sector focus on programmes to promote 
exports, programmes in support of micro and small en terprises (MSEs), transfer of technology, and 
programmes to attract investment. 
158. El Salvador has notified the WTO SCM Comm ittee of the Free Zones and Inward Processing 
Warehouse Programme pursuant to Article XVI.1  of the GATT 1994 and Article 25 of the 
SCM Agreement.
149 
159. El Salvador's production sector has several fi nancing programmes available, including those 
listed in Table III.7.  The National Commission for Micro and Small Enterprises (CONAMYPE) is a 
body set up in 1996 by Executive Decree No. 48 and, since July 1999, it has come under the Ministry 
of the Economy.  Its objective is to facilitate, impr ove and promote access by MS Es to expert business 
development services and to give them the possib ility of obtaining loans, promoting mechanisms for 
this purpose.150  The Secretariat does not have any deta iled figures concerning the support given under 
each of these programmes. 
160. Businesses set up in El Salvador are also elig ible for the BMI programmes.  The BMI is a 
government body authorized to grant loans through in stitutions which finance investment projects in 
the private sector and to obtain loans from national or international institutions.  It may also guarantee 
obligations contracted by banks or financial institutions in order to obt ain financing.  In its day-to-day 
operations, the BMI gives credit to financial instituti ons so that they may transfer these resources to 
the final users, which then use them for perman ent increases in their working capital, technical 
training of personnel, the purchase of machinery or  equipment, and the building of facilities and 
physical infrastructure.151  The BMI's principal programmes are described in Table III.7. 
                                                      
149 WTO document G/SCM/N/186/SLV – G/SCM/N/192/SLV of 4 June 2009. 
150 CONAMYPE considers a micro enterprise to be a natural or legal person operating in the market 
and producing and/or selling goods or services on its own behalf, with an annual gross level of sales not 
exceeding US$100,000, and with up to ten paid employees.  A small ente rprise may have an annual gross level 
of sales not exceeding US$1 million a nd up to 50 paid employees.  The level of annual gross sales for a 
medium-sized enterprise is up to US$7 million and it may have up to 100 paid employees.  Information viewed 
at:  http://www.conamype.gob.sv/mipyme.php 
151 Online information from the Multisectoral Investment Bank (BMI).  Viewed at:  
https://www.bmi.gob.sv/portal/page?_pagei d=38,55286&_dad=portal&_schema=PORTAL WT/TPR/S/226 Trade Policy Review 
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Table III.7 
Financing programmes for technological develo pment, productivity and competitiveness 
Programme Description 
Competitive Resources Exchange 
(BRC), National Scheme of Alliances for Technological 
Innovation (SINALIT) The BRC is a SINALIT financing instrument that finances projects to generate and transfer 
agricultural, agro-industrial and forestry technology .  It focuses on financing projects submitted to 
SINALIT by organizations of producers, agro-indus trialists and traders who wish to improve their 
production, business and marketing technology. 
The SINALIT programme ended in December 2008. 
Individual Technical Assistance Fund (FAT), administered by CONAMYPE Economic support given to businesses by the Governme nt, with international cooperation, to enable 
them to purchase technical assistance or business c onsultancy services on an individual basis.  The 
incentive consists of a partial subsidy from the Government, corresponding to 80 per cent of the total 
cost of the services received.  The criteria for eligibility for the programme are:  owning a micro or 
small enterprise that has operated in the market for at least six months;  annual sales not exceeding C 6 million or the equivalent in United States dolla rs;  not more than 50 employees;  ability to pay 
20 per cent of the cost of the tec hnical assistance to be given;  possession of a facility for conducting 
the activities. The FAT may finance up to US$550 per enterprise. 
The support financed by the FAT comes from the G overnment and internati onal cooperation, mostly 
from EU cooperation funds. 
FAT Grupal Similar to the above, excep t that the Fund may finance up to a maximum of US$500 per enterprise. 
FAT Asociativo Co-financing provided by the Government to  a group of at least 5 and a maximum of 12 enterprises 
to allow them to have access to sp ecialized services for the purpose of creating associations intended 
to enhance their business competitiveness.  The requi rements are the same as those for the individual 
FAT.  Projects are divided into two stages:  Stag e 1:  technical assistance for creating associations, 
for which the FAT finances up to US$1,125 per enterp rise;  Stage 2:  implementation of the project, 
for which the FAT may finance up to  US$3,000 per enterprise, annually. 
BONOMYPE (CONAMYPE) This is a program me through which vouchers are given to businessmen with which they can buy 
training services from various suppliers. 
BMI - Agriculture 
BMI - Trade 
BMI - Construction 
BMI - Electricity, gas, water and 
sanitary services 
BMI - Manufacturing industry 
BMI - Mining and quarrying BMI - Services 
BMI - Transport, storage and 
communications 
BMI - Housing 
BMI - Other activities The BMI's credit lines aim to support development of the country's various economic sectors by 
providing the financial resources necessary to car ry out investment projects;  they range from 
covering the need for working capital to the pur chase of land for production purposes, financial 
support for students, the purchase of housing, a nd environmental rehabilit ation and conservation 
work. 
FOEX Ministry of the Economy The Export Promotion Fund (FOEX)  is a Ministry of the Econo my programme giving financial 
assistance to small and medium-sized enterprises fo r the promotion of their exports.  Most of its 
resources come from international grants.  Fi rms with a maximum of 100 employees and annual 
sales ranging between US$70,000 and US$7 million ar e eligible for assistance under the FOEX.  
The amount of the financial support covers 50 per cen t of the cost of the be neficiary enterprise's 
"export development plan".  Assistance is in the form of non-repayable co-financing of up to 70 per 
cent of the total cost of a pr oject or one-off initiative.  Be tween 2002 and mid-2009, the amount 
disbursed under the FOEX amount ed to some US$3.9 million. 
Source : WTO, on the basis of information provided by the Salvadoran authorities. 
 
161. In addition, the BMI runs several programmes intended to promote economic development, 
including the following:  the Industrial Building Trust Fund (FITEX) to promote the creation of industrial centres, the Private Free Zone Developm ent Programme, through which up to three quarters 
of the total cost of developing a free zone or the cost of purchasing or erecting industrial buildings in 
private free zones is financed;  and the Integrat ed Coffee-Growing Renewal Programme, to enhance 
the productivity of the coffee-growing sector and support its productive restructuring.  The BMI also 
has an export credit programme (see section (2)(v) above). 
162. In addition to the aforementioned progra mmes, during the period under review the 
BMI continued with the Programme for the Expansio n of Microcredit Coverage (PACM), initiated in 
September 2001 and terminated in  September 2006.  This programme , implemented by the BMI in 
coordination with CONAMYPE, allowed financial in stitutions to expand thei r coverage through an 
incentive scheme which included training in credit technology, computer equipment and payment to El Salvador WT/TPR/S/226 
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credit agencies.  Between 2001 and 2006, 81,181 loans were given for an amount of 
US$77.8 million.152 
163. Sectoral incentives are also provided for in the Law on international services (Decree No. 431 
of 11 October 2007) and in the Law on tourism (D ecree No. 899 of 10 December 2005).  The Law on 
international services provides for the creation of pa rks to provide certain services, for example, 
international call centres, information technology, or  the repair of aircraft and vessels.  Activities 
within these parks are free of income tax and VAT as well as import tariffs on the products needed to 
provide the various services.  The services must be intended for export or for businesses operating 
under the free-zone regime. 
164. Pursuant to the Law on tourism, investment of  US$50,000 or more in the tourism sector is 
exempt from income tax for ten years, a reduction of up to 50 per cent in municipal taxes for five years, and exemption from VAT and customs duty on imports of inputs and capital goods used for tourism projects.  The authorities have indicated that, by October 2009, 17 projects had been approved for incentives under the Law on tourism,  with investment for a total amount of 
US$38.5 million, and that six other projects were in the process of being approved. 
165. Moreover, businesses in El Salvador are eligib le for the programmes administered by the 
Central American Bank for Economic  Integration (CABEI).  The CABEI programmes, other than 
those primarily intended for exporters (section 2(iv) above), are mainly in support of micro and small 
enterprises, infrastructure, the energy sector, agri business and low-cost housing.  The interest rates 
applicable to the various programmes are determined  according to the market rates based on the Libor 
and are revised each quarter.  In the case of operati ons through intermediaries, the rate of interest 
charged to the final user by the intermedia ry institution depends on its own policies. 
166. Over the period 2003-2007, the CABEI disbursed  a total of US$1,829 million to El Salvador, 
equivalent to 27 per cent of total CABEI disbur sements during that period.  Of the resources 
mobilized in 2007 (US$471.7 milli on), 48.4 per cent went to the en ergy sector, 35.4 per cent to 
infrastructure, and 11.7 per cent for information t echnology and related activiti es, with the remainder 
going to other activities.
153  Three-quarters of this financing goes to the public sector.  Of the 
disbursements channelled through the banking system, amounting to US$154 million in 2007, 
49.1 per cent went to the financial sector, 22.8 per cent to infrastructure and 18 per cent to manufacturing, with 6.3 per cent for energy. 
(iv) State-owned enterprises and privatization 
167. According to the notification to the WTO, th e Salvadoran authorities have indicated that 
El Salvador has no State-trading enterprises w ithin the meaning of Article XVII of the GATT.
154 
168. During the period under review, the State's shar e in the economy remained modest as the 
majority of privatization had been accomplished prior to this period.  The Stat e continues to play an 
important role in only a few areas such as the suppl y of water and the management of ports, airports 
and railways, even though the railway sector is not in an active state of operation. 
                                                      
152 CONAMYPE (2007), Memoria Anual 2006 .  Viewed at:  http://www.conamype.gob.sv/ 
include/publicaciones/memo_2006.pdf 
153 Central American Bank for Economic Integration (CABEI, 2008), Annual Report 2007.  Viewed at:  
http://www.bcie. org/english/publicacion es/memorias_07.php 
154 WTO document G/STR/N/6/SLV of 7 March 2001. WT/TPR/S/226 Trade Policy Review 
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(v) Government procurement 
169. Since the previous Review, El Salvador has ma de notable progress in respect of government 
procurement, modernizing and stre ngthening the regulatory and instituti onal frameworks in this area.  
Its legislation does not contain any provisions gr anting more favourable treatment for goods, services 
or public works provided by national rather than  foreign suppliers, unless the bids are equal. 
170. El Salvador is not party to the WTO Plurila teral Agreement on Govern ment Procurement.  
The authorities have indicated that it does not plan to  participate as an observer in this Agreement. 
171. In 2008, current spending by the Centra l Government on goods and services totalled 
US$335.6 million, or 1.5 per cent of GDP, while the cost of investment attained US$210.8 million, or 
1 per cent of GDP.155  According to the information provided by the authorities, bidding procedures 
resulting in publication of the award of a contr act involved a total amount of US$1,026.8 million in 
2008, compared to US$496.6 million in 2007;  these incl ude bidding by invitation.  In the case of free 
bidding, in 2008 the amount was US$11.3 million and in 2007 US$10.6 million.  Public bidding was 
the procedure most commonly used and in 2008 it a pplied to 91.3 per cent of the contracts.  Some 
3.6 per cent of total contracts were awarded thr ough public bidding by invitation;  3.78 per cent 
through a public competition;  1.1 per cent by free bidding;  and 0.10 per cent by direct contracting.  
The authorities do not have any data on the percenta ge of contracts awarded to foreign suppliers. 
172. El Salvador's government proc urement legislation has been amended since the previous 
Review in 2003 by the introduction of certain mo difications and implemen ting regulations for the 
Government Procurement and Contracting Law (LACAP, Legislative Decree No. 868 of 
5 April 2000).  These reforms are contained in Legisl ative Decree No. 66 of 10 July 2003, Legislative 
Decree No. 222 of 4 December 2003, and Legislativ e Decrees Nos. 571 of 6 January 2005 and 909 of 
14 December 2005.  Government procurement is al so regulated through the implementing regulations 
for the LACAP, Executive Decree No. 98 of 20 Oc tober 2005.  The Law and its implementing 
regulations apply to all government bodies, in cluding municipal authorities and State-owned 
enterprises.  The Law's provisions do not apply to  procurement and contr acting financed through 
funds coming from international organizations, if this is stipulated in an agreement or treaty, or to 
agreements between State institutions themselves,  or to the contracting of personal services by 
institutions belonging to the Government. 
173. Neither the Law nor the implementing regulations  contain provisions that give different 
treatment for goods, services or public works supplied by  national or foreign suppliers, unless the bids 
are for an equal amount (see below) .  Foreigners may take part in any bidding procedure provided that 
they meet all the specified requirements. 
174. According to the provisions in the legislation,  government procurement in El Salvador is 
decentralized from an operational standpoint, even  though it must follow the regulatory guidelines 
laid down in the overall legislation.  Each public sector body is responsible for its own planning and 
makes its purchases on that basis and taking into  account the financial resources available.  The 
LACAP provides that the Government Procurem ent and Contracting Regulatory Unit (UNAC), 
attached to the Ministry of Finance, is res ponsible for proposing the annual procurement and 
contracting policy for government institutions, for carrying out regulatory tasks and for keeping a 
national register of government procurement and c ontracting.  In order to put into effect the 
UNAC regulations, each institution has an Institu tional Procurement and Contracting Unit (UACI) 
responsible for operational decentralization a nd for carrying out all activities concerning the 
procurement and contracting of works, goods and services. 
                                                      
155 Online information from COMPRASAL.  Viewed at:  http://www.comprasal.sv El Salvador WT/TPR/S/226 
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175. According to the LACAP, the following are th e government procurement methods utilized in 
El Salvador:  (i) public bidding or competition;  (ii) public bidding or competition by invitation;  
(iii) free bidding;  (iv) direct contracting;  a nd (v) the equity market.  Contracting through public 
bidding and public bidding by invitation apply to  the procurement of goods and services and to 
building works;  contracting by competition or public competition by invitation applies to 
procurement of consultancy services.  Free bidding is the procedure by which, in order to meet their 
everyday needs, institutions purchase goods or services available to the public directly from 
warehouses, factories or sales outlets, whether nationa l or international.  Direct contracting is the 
method by which an institution directly contracts a natural or legal person without going through a 
bidding or competition procedure;  the Law provides that competition criteria must be respected and 
that the decision must be contained in a reasoned resolution issued by the person responsible for the 
institution and justified by one of the reasons provided for in the Law.156  Contracting on the equity 
market means those operations that take place on the st ock exchange when this is in the public interest 
and it is conducted through stockbrokers, who act on the El Salvador commodity stock exchange 
(BOLPROES).157 
176. The decision on the method of contracting to be u sed, with the exception of direct contracting, 
depends on the amount of the contract:  (i) a public  bidding procedure must be followed for amounts 
exceeding the equivalent of US$131, 826 (October 2009);  (ii) public bidding by invitation may be 
used for amounts ranging from US$16,608 to US$131,8 26;  and (iii) free bidding may be used for 
amounts less than the equivalent of US$16,608;  there is no limit for direct contracting.158  T h e  
maximum amounts for contracting consultants are less in the case of public competition (amount 
exceeding 200 SMUs) and public competition by i nvitation (between 80 and 200 SMUs).  The 
LACAP does not specify amounts for the use of contracting through the equity market. 
177. In the case of public bidding or public competition by invitation, a list of bidders is drawn up, 
with a minimum of four invitations to national or  foreign natural or lega l persons, who are publicly 
invited to participate in order to ensure competitive prices.  Suppliers may be in the UACI's database, 
but this is not a requirement in order to participate. 
178. Bids are evaluated from the technical, economic and financial standpoints by a bid evaluation 
commission in each UACI, taking into account the evaluation criteria laid down in the bidding conditions.  The regulations provide that biddi ng or competition conditions should set out clear, 
objective and measurable evaluation criteria that are rele vant to the subject of the contract, in order to 
lessen discretionality.  The evaluation criteria must be explained in the conditions in an 
                                                     
 
156 The direct contracting procedure may only be approved in one of the following situations:  (a) if this 
is required for reasons of protection of industrial or intellectual property rights or when the professional, technical or artistic expertise that is the subject of the contractual obligations does not permit a bidding 
procedure;  (b) if a bidding procedure or competition has not been successful for the second time;  (c) because 
the contract awarded has been annulled and for reasons of urgency there is no time for a new bidding procedure;  (d) in the case of ancillary works, services or supplies or accessories or  parts or spare parts for existing 
equipment or other equipment previously purchased for which there is no other source;  (e) in the case of 
purchase of war equipment or implements, previously approved by the Minister of National Defence and 
endorsed by the President of the Republic;  (f) for emergency reasons (a situation in which postponement or 
deferral would seriously endanger the general interest);  an d (g) in cases of emergency arising from war, disaster 
or serious disturbances. 
157 Law on the products and services exchange, Legislative Decree No. 33 of 19 June 1997. 
158 The Law specifies the amounts in terms of monthly minimum urban salaries (SMU):  public 
bidding, 635 SMUs;  public bidding by invitation, from 80 to 635 SMUs;  free bidding, less than 80 SMUs 
provided there is a comparison of quality and price between at least three bidders (this requirement does not 
apply to procurement or contracting that does not exceed the equivalent of 10 SMUs).  In February 2009, the monthly minimum urban salary was US$207.60. WT/TPR/S/226 Trade Policy Review 
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understandable way;  the bidder must know in adva nce how bids are to be evaluated and what 
procedure will be followed to establish the order of  the bidders.  For the financial evaluation, 
minimum values have to be determined for the in dicators to be evaluated depending on the type of 
goods, services or works required.  Bids are opened in public.  The bidding or competition conditions 
must allow equal treatment, under the same conditions, for all parties interested in taking part in the 
process, without any clauses that are discriminatory or  benefit one of the bidders to the detriment of 
the others.  In bidding or competition by invitation, any bidder may participate, even if he is not 
registered or has not publicly been invited to bid. 
179. Pursuant to the legislation, each of the cont racting methods provided in the Law allows the 
participation of both natio nal and foreign contractor s.  Nevertheless, if when assessing which is the 
best offer it transpires that there is no difference in the price and compliance with the criteria laid 
down in the conditions between goods produced in El  Salvador and those produced abroad, the bid 
evaluation commission must give preference to the Sa lvadoran bid.  In the case of contracting covered 
by FTAs which contain provisions on government procurement, the procedures laid down in the 
agreement in question apply. 
180. The Law provides that each UACI must keep a register of all the contracting carried out over 
the previous ten years so that it can be evaluated and monitored by the competent bodies and authorities. 
181. Information on all contracts can be found on COMPRASAL's web page.
159  According to 
information for the year 2008, 154 entities particip ated in COMPRASAL by publishing invitations to 
tender and compete, 250 entities published their a nnual procurement progra mme and 129 published 
their free contracting procedures.  The authorities' objective is to be able to develop a government 
procurement system that acts as a business centre bringing together suppl y and demand for works, 
goods and services in the interests of contractors a nd suppliers, without any geographical limits.  The 
information module (MODDIV) available to the pu blic since October 2005 contains information on 
government procurement and contracting. 
182. Invitations to tender or compete and the cont racts awarded must be published in national 
newspapers and, moreover, for those entities with  Internet access, they may be published on the 
COMPRASAL system.  Institutions belonging to CO MPRASAL must publish their invitations on this 
system.  The information contained in procurement doc uments is available to the public after award of 
the contract has been notified. 
183. Pursuant to the Law, the results of any contracti ng must be notified to interested parties at the 
latest within 72 business hours of the relevant d ecision and entities belonging to COMPRASAL must 
publish decisions on the system.  Interested parties may lodge an appeal for review in writing within 
five working days of the date following the notifica tion.  A decision on the appeal has to be taken by 
the same official to whom the appeal was submitt ed within 15 working days following its acceptance, 
on the basis of the recommendation to be made by a special high-level commission appointed by this 
official. 
184. El Salvador's contracting policy is incorpor ated in an annual plan, known as the Annual 
Policy for Procurement and Contracting by Governme nt Institutions, which must be approved by the 
Council of Ministers.160  The Ministry of Finance, through the UNAC, must ensure compliance with 
this policy, the overall objective of which is to he lp ensure that government institutions procure and 
                                                      
159 http://www.comprasal.gob.sv 
160 The plan for 2008 can be viewed on the Ministry of Finance website at:  
http://www.mh.gob.sv/moddiv/HTML/docs/politica2008.pdf El Salvador WT/TPR/S/226 
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contract in a systematic, transparent, efficient a nd appropriate way, making rational use of resources 
and guaranteeing equitable free competition.  The annual procurement and contracting policy serves 
as a model document that allows the various institu tions to engage in procurement.  To meet the 
provisions in the annual policy, each UACI draws up its annual procurement and contracting plan, 
which it transmits to the UNAC and publishes usi ng widely disseminated communications media, 
including COMPRASAL and each institution's webpag e.  This annual plan may be amended in the 
course of the financial year in the light of cha nges in work programmes or budgetary adjustments 
caused by institutional priorities or contingencies. 
185. Government procurement is one of  the areas in which El Salvador and its preferential partners 
have undertaken reciprocal commitments.  Unde r the free trade agreements signed with Chile, 
Colombia, the Dominican Republic and Panama, El Sa lvador undertook to give suppliers originating 
in the contracting countries national treatment for the procurement of goods and services covered by 
these agreements.161  There are also provisions on government procurement in the 
CAFTA-DR framework. 
186. A recent joint study by the World Bank a nd the Inter-American Development Bank 
highlighted the significant improvement represented by the LACAP over the previous procurement 
law inasmuch as it comprehensively standardizes the regulations on public sector procurement and 
promotes competition in an open and transparent ma nner.  Nevertheless, the report emphasized that, 
in spite of all these efforts, consolidation of th e procurement processes established by the Law had not 
been accomplished to the same degree in all public agencies, particularly certain municipalities.  The 
report recommends a strategic implementation plan  to consolidate modernization of the public 
procurement process in a coordinated and effective manner.162 
187. Among the recommendations in the report are the n eed to join efforts to ensure that the 
UNAC has the resources and capacity required to carry  out its functions and to modernize government 
procurement.  It also recommends that the UACI be  strengthened and that a st rategy be developed for 
an electronic procurement system, laying special emphasis on transparency, by setting up a 
management information system that covers a ll government procurement-related information. 
(vi) Protection of intellectual property 
188. All the aspects covered in the TRIPS Agreement are regulated in El Salvador.  During the 
period under review, El Salvador extended the term  of copyright protection from 50 to 70 years, as 
well as the term of patent protec tion for pharmaceuticals, and amended its legislation to bring it into 
line with its international commitments.  Improveme nts were also made as regards enforcement. 
189. The WTO Agreement on Trade-Related Asp ects of Intellectual Property Rights 
(TRIPS Agreement) was incorporated into El Salv ador's legislation through ratification of the 
Marrakesh Agreement and came into force in El Salvador on 1 January 2000.  El Salvador is a 
member of the World Intellectual Property Organiza tion (WIPO) and has signed several international 
agreements on the protection of in tellectual property rights (IPRs) (Table III.8).  El Salvador does not, 
                                                      
161 Chapter XII of the Free-Trade  Agreement between Central America and the Dominican Republic;  
Chapter 16 of the Free-Trade Agreement between Centra l America and Chile;  and Chapter 16 of the Free-Trade 
Agreement between Central America and Panama. 
162 World Bank and Inter-Ameri can Development Bank (2006), Republic of El Salvador:  Country 
Procurement Assessment Report , Report No. 29315-SV, May 2006.  Viewed at:  http://www-wds.worldbank.org 
/external/default/WDSContentSer ver/WDSP/IB/2007/10/05/00310607_20071005102117/Rendered/INDEX/ 
2931150Voptmzd.text WT/TPR/S/226 Trade Policy Review 
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however, participate in some other WIPO-administered treaties.163  During the period under review, 
El Salvador signed four new international treaties, all of which had come into force by the end of 
2008.164 
Table III.8 
Intellectual property treaties in force in El Salvador, 2009 
International treaty Date of ratification 
Convention establishing the World Intellectual Property Organization (WIPO)  September 1979 
Copyright and related rights  
Rome Convention for the Protection of Performers, Producers of Phonograms 
and Broadcasting Organizations  (Rome Convention, 1961)  June 1979 
Berne Convention for the Protection of Lite rary and Artistic Works  February 1994 
Geneva Convention for the Protection of Producers of Phonograms against 
Unauthorized Duplication of their Phonograms (Geneva Convention, 1971)  February 1979 
WIPO Performances and Phonograms Treaty (WPPT, 1996)  May 2002 
WIPO Copyright Treaty (WCT, 1996)  March 2002 
Trademark Law Treaty  November 2008 
Trademarks and other distinctive signs  
Paris Convention for the Protection of Industrial Property  February 1994 
Patents, industrial designs and utility models  
Paris Convention for the Protection of Industrial Property  August 1998 
Patent Cooperation Treaty  August 2006 
Other  
Budapest Treaty (Deposit of Microorganisms)  August 2006 
Nairobi Treaty (Protection of th e Olympic Symbol)  October 1984 
Brussels Convention Relating to the Dist ribution of Programme-Carrying Signals 
Transmitted by Satellite  July 2008 
Source : WIPO. 
 
190. The provisions in the TRIPS Agreement have been incorporated into El Salvador's legislation 
(Table III.9).  In some cases, including copyright, El Salvador gives rights that exceed the minimum 
periods laid down in the Agreement.  The main chan ges to Salvadoran intellectual property legislation 
during the period under review concern the amendm ents introduced by Legislative Decrees Nos. 912 
and 913 of 14 December 2005, as well as Legisl ative Decrees Nos. 985 and 986 of 17 March 2006. 
191. The Law on uniform procedures for the submission,  examination and registration or filing of 
instruments in the registers of real estate a nd mortgages, corporate property, commerce, and 
intellectual property, enacted by Decree No. 257 of 17 June 2004, harmonized the procedures to be 
carried out for the various registers administered by the CNR when submitting, examining, registering, filing or withdrawing instruments that must be registered or filed in such offices. 
192. El Salvador has notified the Members of the WT O of its laws and regul ations on IPRs and has 
provided information on its nationa l enforcement system.  In 2000, the TRIPS Council examined 
El Salvador's legislation on IPRs.
165  During the period under review, the WTO was notified of the 
Law on Trademarks and Other Distinctive Signs.166 
                                                      
163 For example, the Madrid Agreemen t for the Repression of False or Deceptive Indications of Source 
on Goods, and the Lisbon Agreement for the Protection of Appellations of Origin and Their International 
Registration. 
164 These are:  the Patent Cooper ation Treaty (1970), which came into force in August 2006;  the 
Budapest Treaty on the International Recognition of the Deposit of Microorganisms for the Purposes of Patent 
Procedure (1980), which also came into force in Au gust 2006;  the Trademark Law Treaty (1994), in force since 
November 2008;  and the Brussels Convention Relating to the Distribution of Programme-Carrying Signals Transmitted by Satellite (Brussels Convention), in force since July 2008. 
165 The questions put to El Salvador and the corresp onding replies in connection with this examination 
appear in WTO document IP/Q/SLV/1 of 18 August 2000. 
166 WTO document IP/N/1/SLV/I/6 of 18 August 2004. El Salvador WT/TPR/S/226 
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193. El Salvador has notified the WTO that DATCO in  the Ministry of the Economy is the contact 
point specified in Article 69 of the TRIPS Agreement.167 
194. The Ministry of the Economy is responsible  for drafting and implementing Salvadoran 
intellectual property policies.  The Intellectual Property Register, which comes under the CNR, a 
decentralized institution belonging to the Minist ry of the Economy pursuant to Executive Decree 
No. 6 of June 1999, is responsible for monitoring pr otection of IPRs and for keeping the registers of 
trademarks and other distinctiv e signs, patents and copyright.168  The Directorate of Intellectual 
Property in the Ministry of the Economy is responsib le at the administrative level for identifying and 
deciding on all matters relating to patents, utilit y models, industrial designs, the registration of 
trademarks, trade names, advertising expressions or  slogans, emblems, appellations of origin and 
geographical indications, as well as for matters re lating to copyright and related rights.  Any 
objections to the registration of distinctive commercial signs are sent to the Directorate. 
195. El Salvador has also undertaken commitments on IPRs in the various free trade agreements it 
has signed, notably CAFTA-DR, the agreement between Central America and the Dominican Republic, the agreement between Mexico and the Re publics of El Salvador, Guatemala and Honduras, 
as well as the free trade agreement between Central America and Panama. 
196. The Intellectual Property Law (LPI) and the La w on Trademarks and Other Distinctive Signs 
(LMOSD) are El Salvador's principal legisla tion on IPRs.  Legislative Decree No. 912 of 
14 December 2005, the reforms of the Law on the Pr omotion and Protection of Intellectual Property, 
and Legislative Decree No. 985 of 17 March 2006, introduced amendments to El Salvador's 
legislation, including the extension of the terms of  protection for copyright and related rights, which 
increased from the author's lifetime plus 50 years to the lifetime plus 70 years (for the benefit of the 
author) (for the owners).  In addition, the provisions of the WIPO Copyright Treaty (1996) and the WIPO Performances and Phonograms Treaty (1996) have  been implemented in order to give authors, 
performers and producers of phonograms adequate pr otection of their rights in the light of new 
technology.  The term of protection for industrial designs was also changed from a renewable term of 
five years to a non-renewable term of ten year s to make it consistent with that in the 
TRIPS Agreement (Table III.9). 
Table III.9 
Summary of protection of IP Rs in El Salvador, 2009 
Legislation Term Scope 
Copyright and related rights  
Intellectual Property Law, Legislative 
Decree No. 604 of 15 July 1993;  
Implementing Regulations for the Law on the Promotion and Protection of 
Intellectual Property, Executive Decree 
No. 35 of 28 September 1994;  Reforms to the Law on the Promotion and Protection of Intellectual Property, 
Legislative Decree No. 912 of 
14 December 2005 and Legislative Decree No. 985 of 17 March 2006. Protection is granted 
throughout the lifetime of 
the author plus 70 years after his death.  Computer 
programs, collective and 
audiovisual works are protected for 70 years as of the date of their disclosure. Scope:  Artistic, literary and audiovisual works and computer 
programs.  The copyright holder's economic rights include the 
right to authorize or prohibit distribution to the public of the original or copies of the works, whether by sale, rental, hire, 
loan or any other manner.  Special provisions apply to computer 
programs and databases, audiovi sual and three-dimensional 
works of art, musical compositions and newspaper articles.  Protection is given irrespective of any registration formality.  
El Salvador does not provide an y exceptions or exemptions 
from national treatment for foreigners publishing their works in El Salvador.  The Law applies i ndiscriminately to Salvadorans 
and foreigners. 
                                                      
167 WTO document IP/N/3/Rev.10 of 16 May 2008. 
168 CNR online information.  Viewed at:  http://www.cnr.gob.sv/ quienes_somos.aspx WT/TPR/S/226 Trade Policy Review 
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Legislation Term Scope 
Patents  
Intellectual Property Law, Legislative 
Decree No. 604 of 15 July 1993;  Implementing Regulations for the Law on 
the Promotion and Protection of 
Intellectual Property, Executive Decree No. 35 of 28 September 1994;  Reforms 
to the Law on the Promotion and 
Protection of Intellectual Property, Legislative Decree No. 912 of 
14 December 2005 and Legislative 
Decree No. 985 of 17 March 2006.
 Protection gives the inventor or applicant exclusive rights within El Salvador for a 
non-renewable term of 
20 years as of the date of filing of the application in 
the Intellectual Property 
Register of the CNR. Scope:  The LPI provides for the right to obtain protection for 
an invention, utility model or industrial design, an invention 
meaning any product or process applicable in practice to the 
solution of a specific technical problem.  An invention may be 
patented if it is new, represents an inventive step and is capable 
of industrial application.  C ontractual licences for working a 
patent only have legal effects agai nst third parties if they have 
been registered. The following may not be patent ed:  discoveries, scientific 
theories and mathematical methods;  economic plans, principles 
or methods for advertising or business, those pertaining to 
purely mental or intellectual activities or to games;  methods for 
treatment of the human or animal body by surgery, therapy or 
diagnosis;  except for products intended to put any of these methods into practice;  and inventions whose publication or 
industrial or commercial appli cation would be contrary to 
public order or morality. 
Industrial designs and utility models 
The same legislation as that for pa tents. 10 years as of the date of 
filing the application, non-renewable. Industrial designs are protected on the basis of the provisions in 
the LPI and amendments thereto.  Such protection does not exclude or affect protection that may be available to such designs under other legal provisions , in particular those relating 
to copyright.  There is no pr otection for industrial designs 
which are not considered to be new, that is to say, merely differ in minor or secondary respects from other earlier designs or 
merely refer or apply to another category of products;  
protection is not granted either  to designs whose disclosure 
would be contrary to public order or morality. 
Layout-designs of integrated circuits 
There is no relevant national legislation.   
Trademarks  
Law on Trademarks and Other Distinctive 
Signs, Legislative Decree No. 868 of 6 June 2002;  Legislative Decree No. 913 
of 14 December 2005, Legislative Decree 
No. 986 of 17 March 2006. The right to exclusive use of 
a trademark is granted for 10 years and may be 
renewed indefinitely for 
successive 10-year periods.  Any visually perceptible proprietary, figurative or 
three-dimensional sign capable of distinguishing products or services.  The owner of a trademark is entitled to oppose 
registration of an identical or similar sign, to prevent its use and 
to request the authorities to pr ohibit or suspend imports of 
products that make use of such signs. 
Geographical indications  
Law on Trademarks and Other Distinctive 
Signs, Legislative Decree No. 868 of 
6 June 2002;  amended by Legislative 
Decree No. 913 of 14 December 2005, Legislative Decree No. 986 of 
17 March 2006. 10 years.  
Undisclosed information (including test data) 
The LPI defines and protects industrial or 
trade secrets and test data.  The protection 
applies whether or not the secrets are 
fixed on a material medium and no registration is required. Indefinitely in the case of 
industrial or trade secrets.  
In the case of test data, 
protection is given through a legal provision which 
determines time limits for 
protection, 5 years for pharmaceuticals and 
10 years for agricultural 
chemicals.  Undisclosed information is protected if it complies with the 
requirements of 
Article 181-A of the LPI. The submission of undisclosed information is required by the 
competent administrative authority as a condition for approving 
the marketing of pharmaceuticals or  agricultural chemicals that 
use new chemical substances.  Criteria are laid down for the protection of such data against unfair commercial use and 
against disclosure. 
There are exceptions regarding di sclosure when the authority 
deems it necessary to protect the public or when measures have 
been taken to ensure that the data are protected against unfair 
commercial use. 
If any undisclosed informa tion regarding safety and 
effectiveness submitted to an authority in order to obtain 
marketing approval is disclosed by the said authority, such 
information shall continue to be  protected against any unfair 
commercial use. El Salvador WT/TPR/S/226 
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Legislation Term Scope 
New varieties of plants 
Intellectual Property Law, Legislative 
Decree No. 604 of 15 July 1993;  Implementing Regulations for the Law on 
the Promotion and Protection of 
Intellectual Property, Executive Decree No. 35 of 28 September 1994;  Reforms 
to the Law on the Promotion and 
Protection of Intellectual Property, Legislative Decree No. 912 of 
14 December 2005 and Legislative 
Decree No. 985 of 17 March 2006. 20 years. In the special case of new plant varieties, the criteria of an 
inventive step and capable of industrial application must be 
met. 
Source : WTO Secretariat. 
 
197. The LPI protects all literary, artistic and scientific  works, irrespective of their mode or form 
of expression, provided that they are original, and it separates moral rights from economic rights.  Contracts for theatrical and musical performances are protected.  In general, the LPI provides that, in 
the case of copyright, the holder of the right is entitled to import, export or authorize the import or 
export of lawfully produced copies of his works and may also prevent their parallel import.  
El Salvador's legislation recognizes the principle of  protection of copyright without any registration 
formality.  It does not provide for any exceptions or  exemptions from national treatment for foreigners 
who publish their works in El Salvador.  The amen dments introduced in 2005 and 2006 have added 
provisions that prohibit the infringement of codifi ed programme-carrying satellite signals without the 
consent of their legitimate distributor and have included a new chapter in the LPI containing 
provisions on effective technological measures, incl uding exceptions to protecti on in order to promote 
the transfer of technology. 
198. The LPI provides for the right to obtain protecti on for an invention, utility model or industrial 
design.  Industrial designs are protected pursuant to the LPI provisions for a term of ten years as of the date of filing the application, without any possib ility of renewal.  The 2005 amendment modified the 
special provisions in the LPI which determined a lesser  term of protection, 15 years, for patents for 
pharmaceuticals, harmonizing the terms of protection with those in the TRIPS Agreement.  The LPI also provides that the term of 20 years for pate nts may be extended if, for reasons attributable to 
the Registry, granting of the patent has been delayed over a certain number of years. 
199. The LPI also allows for the granting of com pulsory licences.  A compulsory licence may be 
granted to work a patent in declared cases of em ergency or national security and for as long as these 
persist, provided that this is necessary to meet th e basic needs of the popul ation.  Such licences are 
neither transferable nor exclusive and are granted by  the competent court, which determines adequate 
remuneration depending on the circumstances of each case.  The scope of the licence, its term and the 
acts for which it is granted must be limited to the purposes for which it was granted.  A compulsory 
licence is only granted in order to supply th e domestic market.  If the patent protects any 
semiconductor technology, a compulsory licence may only be granted for non-commercial public use 
or to remedy a practice declared to be anti-compe titive during the procedure applicable.  At the end of 
2008, El Salvador had not granted any compulsory licences. 
200. In September 2006, El Salvador accepted the am endment "Decision on the implementation of 
paragraph 6 of the Doha Declaration on the TR IPS Agreement and Public Health", amending the 
TRIPS Agreement in order to give more flexibility to those countries that do not have the capacity to 
manufacture pharmaceuticals, allowing them to import patented medicines under compulsory 
licences. WT/TPR/S/226 Trade Policy Review 
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201. New plant varieties can only be protected th rough patents.  El Salvador has no special 
legislation on layout-designs of integrated circu its and directly applies the provisions in the 
TRIPS Agreement.  The LPI defines and protects i ndustrial or commercial secrets and test data.  
Regarding the provision in Article 39.3 of the TRIPS Agreement concerning pharmaceutical or 
agricultural chemical products for which undisclosed test or other data have been submitted, the 
origination of which involves a considerable e ffort, these data are protected against any unfair 
commercial use for a period of five years in the case of pharmaceutical products and ten years for agricultural chemical products, as of the date of approval for their sale in El Salvador.  Such undisclosed information is protected against any discl osure, except where this is necessary to protect 
the public or measures are taken to guarantee prot ection of the data against any unfair commercial 
use. 
202. Trademarks and other distinctive signs are protected under the LMOSD, which also protects 
geographical indications and appellatio ns of origin.  The holder of a licensing contract for a foreign 
trademark registered as such in the Register ma y prevent parallel imports for commercial purposes of 
the products covered by the trademark that is the s ubject of the licence.  The amendments made to the 
LMOSD have seen the inclusion of recognition of sound, olfactive and certifi cation marks as types of 
signs that may constitute trademarks.  Provisions  have also been included on the national entity 
responsible for administering domain names on the In ternet at the upper level of the country code 
(.sv), in order to combat cybernetic piracy  of trademarks.  The provisions determine, inter alia , the 
obligation to settle disputes on the basis of the Uniform Domain Name Dispute Resolution Policy and 
to give public access on line to the database on registrations. 
203. During the period under review, El Salvador has pursued its efforts to ensure compliance with 
IPR legislation, in particular through the In tellectual Property Unit in the Office of the 
Attorney-General of the Republic, the Directorate- General of Customs, the National Civilian Police 
Force and other bodies responsible for the enforcem ent of IPRs.  The CNR's Intellectual Property 
Registry is responsible for administrative pro ceedings concerning enforcement of IPRs;  civil 
proceedings are heard before the commercial courts. 
204. Regarding enforcement, civil proceedings brought  by owners of rights are heard before the 
commercial courts.  Civil sanctions may consist of the following:  immediate cessation of the 
infringing act;  preventive embargo, withholding or deposit of the infringing objects;  ban on 
importing the infringing products, materials or media;  and compensation for damages. 
205. According to the provisions in force, those infringing IPRs may be punished by terms of 
imprisonment of two to four years.  In cases of aggr avated infringement of copyright or related rights, 
the penalty may rise to six years of imprisonment.