Level of government: Central
Measures: General Civil Aeronautics Law, Law No. 595.
Description: Investment and Cross-Border Trade in Services
To own a Nicaraguan-registered aircraft, the following is required:
1. be a Nicaraguan natural or juridical person;
in the case of several co-owners, the majority whose rights exceed half of the value of the aircraft, must maintain their real domicile in Nicaragua;
if it is a juridical person, company or association, to be constituted in accordance with the laws of the Republic or to have legal domicile in Nicaragua;
2. be a foreign natural person with permanent domicile in Nicaragua;
3. be a foreign person not domiciled in Nicaragua, as long as there is a contract of sale and purchase on credit or lease with or without purchase option. The inscription and registration are provisional.
The exploitation of national or internal air transportation services may only be carried out by Nicaraguan natural or juridical persons.
In the case of a legal entity that commercially exploits the national air transportation service, the president of the Board of Directors or Board of Directors must contain at least 51 percent of the directors of Nicaraguan origin.
Foreign airlines may not take passengers, cargo or correspondence for transportation within the national territory.
However, exceptionally, when there are reasons of general interest, the Aeronautical Authority may authorize such companies to perform such services. This regime of exception shall be all the more permissible in the case of Central American air carriers.
Aeronautical personnel working in national air transportation services must be Nicaraguan nationals.
For technical reasons, the Aeronautical Authority may exceptionally authorize a percentage of foreign personnel, establishing a gradual procedure for the replacement of foreign personnel by national personnel.
Foreign legal entities authorized to provide international air transportation services, directly or indirectly, must designate domicile and legal representative with broad powers of mandate and representation, who must have their permanent domicile in Nicaragua.
22. Sector: Transportation
Subsector: Air Transportation. Other complementary services for transportation by airway
Industrial Classification:
Obligations Affected: Most-Favored-Nation Treatment (Article 12.3) National Treatment (Article 12.4). Local Presence (Article 12.5)
Level of government: Central
Measures: General Civil Aeronautics Law, Law No. 595.
Description: Cross Border Trade in Services
To own a Nicaraguan registered aircraft that provides complementary services for air transportation, it is required to be a Nicaraguan natural or juridical person.
In order to perform aerial works in any of their specialties, persons or companies must obtain prior authorization from the Aeronautical Authority and comply with the applicable provisions, technical regulations and be subject to the following requirements, among others:
1. possesses technical and economic capacity according to the specialty in question;
2. operate with Nicaraguan-registered aircraft. The Aeronautical Authority may waive compliance with Nicaraguan nationality of the owner and the aircraft when, in the country, there are no companies or aircraft qualified to perform a particular specialty of aerial work.
23. Sector: Professional Services
Subsector:
Industrial Classification:
Obligations Affected: Most-Favored-Nation Treatment (Article 12.3) National Treatment (Article 12.4). Local Presence (Article 12.5)
Level of government: Central
Measures: Law for the Incorporation of Professionals in Nicaragua, Decree No. 132.
Description: Cross Border Trade in Services
Foreign professionals may practice in Nicaragua in the same manner and subject to the same conditions as Nicaraguans are allowed to practice in their country of origin.
Nicaragua agrees that, if the jurisdiction in a foreign country permits Nicaraguan nationals to apply for and receive the necessary licenses or certificates to practice a profession in such jurisdiction, a foreign national with a license or certificate to practice the profession in such jurisdiction shall also be permitted to apply for and receive a license or certificate necessary to practice in Nicaragua.
Additionally, the relevant professional association in Nicaragua will recognize a license granted by a foreign jurisdiction and allow the licensee to register with the association and practice the profession in Nicaragua based on the foreign license in the following cases:
(a) No academic institution in Nicaragua offers a curriculum that would allow the practice of the profession in Nicaragua;
(b) the licensee is a recognized expert in his profession; or
(c) enable the professional to practice in Nicaragua will further, through training, demonstration or other similar opportunity, the development of the profession in Nicaragua.
24. Sector: Public Accounting and Auditing Services Provided to Businesses.
Subsector:
Industrial Classification:
Obligations Affected: National Treatment (Article 12.4) Local Presence (Article 12.5)
Level of government: Central
Measures: Law for the Practice of Public Accountants. Law No. 6.
Description: Cross Border Trade in Services
Foreign firms of public accountants, auditors and accountants, individually or as a partnership, may practice the profession in Nicaragua, or any activity related to it, through a Nicaraguan firm or association of licensed public accountants.
25. Sector: Professional Services - Notary
Subsector:
Industrial Classification:
Obligations Affected: Most-Favored-Nation Treatment (Article 12.3) National Treatment (Article 12.4).
Level of government: Central
Measures: Classify into third Class the Incorporation of Professionals of November 19, 1938, published in The Gazette No. 267 of December 10, 1938. Notary Law, Annex to the Nicaraguan Code of Civil Procedure.
Description: Cross Border Trade in Services
Notaries public must be native Nicaraguans authorized by the Supreme Court of Justice to practice this profession.
Central Americans by birth authorized to practice law in Nicaragua who have at least five years of residence in Nicaragua may also obtain this authorization, provided that they are authorized to practice law in their country and that Nicaraguans are authorized to act as notaries public in their respective countries.
26. Sector: Customs Services
Subsector: Customs Brokers and Customs Agencies
Industrial Classification:
Obligations Affected: Most-Favored-Nation Treatment (Article 12.3) National Treatment (Article 12.4). Local Presence (Article 12.5)
Level of government: Central
Measure: Law that establishes Self-Dispatch for Import, Export and other Customs Regimes, Law No. 265.
Description: Cross Border Trade in Services
Only Nicaraguan citizens in full exercise of their rights or foreign nationals of a country that allows Nicaraguans to act as customs agents may be customs agents and obtain a license granted by the Ministry of Finance and Public Credit.
A company operating as a customs broker in Nicaragua must be organized under Nicaraguan law and at least one officer of the customs company must have a valid license.
27. Sector: Business services
Subsector: Research services. Research and experimental development services for natural sciences and engineering. Interdisciplinary research and experimental development services. Related consulting services, training and technology services
Industrial Classification:
Obligations Affected: National Treatment (Article 12.4) Local Presence (Article 12.5)
Level of government: Central
Measures: General Law on Exploitation of Our Wealth. Decree No. 316.
Description: Cross Border Trade in Services
Non-resident foreigners or their agents, even if they are resident in Nicaragua, who wish to conduct an investigation, will need a recognition permit.
The reconnaissance permit only entitles the holder to carry out preliminary investigations for the knowledge of the existence of natural resources, not to carry out works or acts for which only the holder of an exploitation license or an exploration or exploitation concession is entitled.
Every foreign licensee or license holder is obliged to maintain at all times in the Republic a representative with sufficient power of attorney.
28. Sector: Free Trade Zone Regime and Inward Processing Regime.
Subsector:
Industrial Classification:
Obligations Affected: Performance Requirements (Article 11.7)
Level of government: Central
Measures: Regulations of the Decree of Industrial Free Zones for Export, Decree No. 31-92. Regulation of the Decree of Industrial Free Export Zones, Decree No. 50-2005.
Description: Investment
For the establishment of Free Trade Zone user companies, they must be classified in the following categories:
(a) first category companies. It must add a minimum of 50 percent of domestic inputs to the value of its product and generate more than 100 jobs; or add a minimum of 40 percent of domestic inputs and generate more than 100 jobs; or add a minimum of 40 percent of domestic inputs and generate more than
150 jobs, or add a minimum of 30 percent domestic inputs and generate more than 200 jobs;
(b) second category companies. It must add to the value of its product a minimum of 30 percent of domestic inputs and generate more than 40 jobs or add a minimum of 20 percent domestic inputs and generate more than 100 jobs; or add less than 20 percent domestic inputs and generate more than 200 jobs;
(c) third category enterprises. It must add more than 30 percent of domestic inputs, but generate up to 40 jobs; or add less than 20 percent of the value of its production with domestic inputs and generate more than 100 jobs;
(d) fourth category company. It must add more than 10 percent of national inputs and generate more than 10 jobs. Companies belonging to this category will not enjoy tax exemptions for motor vehicles.
The company interested in introducing goods produced by the same to be consumed in the national customs territory, must previously request a permit from the Ministry of Development, Industry and Commerce (MIFIC) through the Technical Secretariat. The MIFIC may totally or partially approve or deny such request as long as it does not constitute an evident disadvantage for the national production, taking into account whether or not there is national production and if there is, the impact that the requested quantity has on this and if it contributes to substitute imports.
29. Sector: Real Estate Services
Subsector:
Industrial Classification:
Obligations Affected: Local Presence (Article 12.5)
Level of government: Central
Measures: Law No. 602, Real Estate Brokerage Law of Nicaragua. Decree No 94-2007, Regulation of the Nicaraguan Real Estate Brokerage Law.
Description: Cross Border Trade in Services
Persons applying for a real estate broker's license must be Nicaraguan citizens, or foreigners with legal permanent residence in Nicaragua and holding the corresponding residence card, without labor restriction.
Real Estate Brokerage Firms shall operate through licensed brokers and agents and shall be established in accordance with the laws of the country.
In the cases of international real estate brokerage firms, in order to exercise this activity in Nicaraguan territory, they must be represented by a national natural or juridical person of real estate brokers, who will be authorized to represent the international firm and exercise real estate brokerage in the country.
Annex I. Non-Conforming Measures. List of El Salvador
1. Sector: All Sectors
Subsector:
Industrial Classification:
Obligations Affected: National Treatment (Article 11.4) Most-Favored-Nation Treatment (Article 11.5)
Level of government: Central
Measures: Constitution of the Republic of El Salvador, Articles 95 and 109.
Description: Investment
A foreign person may not own rural property, including a branch of a foreign person, if the person is a national of a country or is incorporated under the laws of a country that does not allow Salvadoran nationals to own rural property, except in the case of land for industrial establishments.
A company incorporated under the laws of El Salvador, the majority of the capital of which is owned by foreign persons or the majority of the partners of which are foreign persons. foreigners, is subject to the preceding paragraph.
2. Sector: All Sectors
Subsector:
Industrial Classification:
Obligations Affected: National Treatment (Article 11.4) Most-Favored-Nation Treatment (Article 11.5)
Level of government: Central
Measures: Constitution of the Republic of El Salvador, Articles 95 and 115. Investment Law, Legislative Decree 732, Article 7.
Description: Investment
Trade, industry and the provision of small services are the exclusive patrimony of Salvadorans by birth and natural Central Americans. Consequently, foreign investors will not have access to such activities.
A company incorporated under Salvadoran law, the majority of whose capital is foreign-owned, or whose partners are majority foreigners, may not establish a company in small to engage in commerce, industry and the provision of small services.
3. Sector: All Sectors
Subsector:
Industrial Classification:
Obligations Affected: Most-Favored-Nation Treatment (Article 12.3) National Treatment (Article 12.4)
Level of government: Central
Measures: Labor Code, Articles 7 and 10.
Description: Cross-Border Trade in Services
Every employer is obliged to integrate the personnel of his company with at least 90 percent of Salvadoran workers. In special circumstances, the Ministry of Labor and Social Security may authorize the employment of more foreigners when it is difficult or impossible to replace them with Salvadorans, and employers are obliged to train Salvadoran personnel under the supervision and control of the aforementioned Ministry, for a period not to exceed 5 years.
4. Sector: Production Cooperative Societies
Subsector:
Industrial Classification:
Obligations Affected: National Treatment (Article 11.4)
Level of government: Central
Measures: Regulations of the General Law I, Title VI, Chapter I, Article 84.
Description: Investment
In production cooperative associations, at least three quarters of the number of members must be Salvadoran.
For purposes of this non-conforming measure, a branch of a company that has not been incorporated under Salvadoran law is not considered a Salvadoran person.
For greater certainty, a cooperative production association exists to provide certain benefits to its members, including distribution, sales, administration and technical assistance. Its functions are not only economic but also social.
5. Sector: Communications Services: Advertising and Marketing Services Radio and Television Promotion