Subsector:
Industrial Classification:
Obligations Affected: Most-Favored-Nation Treatment (Article 12.3) National Treatment (Article 12.4)
Level of government: Central
Measures: Decree of the provisions to regulate the exploitation of works of intellectual nature by means of public communication and the participation of Salvadoran artists in public shows. Legislative Decree No. 239, dated June 9, 1983, published in the Official Gazette No. 111, Volume 279, dated June 15, 1983, Article 4. Decree No. 18, Substitution of Articles 1 and 4 of Legislative Decree No. 239, dated June 9, 1983, published in the Official Gazette No. 7, Volume 282, dated January 10, 1984.
Description: Cross-Border Trade in Services
Commercial advertisements used in the country's public media must be produced and recorded by 90 percent national elements.
At least 90 percent of the production and recording of any commercial advertisement to be used in the public media of El Salvador, whether television, radio broadcast and printed material, originating in El Salvador, must be done by companies organized under Salvadoran law.
Commercial advertisements produced or recorded by a company incorporated under the laws of a Central American country, may be used in the media of El Salvador, provided that such Party provides an appropriate similar treatment to commercial advertisements produced or recorded in El Salvador.
Commercial advertisements that do not meet the aforementioned requirements may be broadcast in the public media of El Salvador, if they are advertisements of international products, brands or services imported or produced in the country under license, and shall be subject to the payment of a single fee.
6. Sector: Communications Services: Television and Radio Broadcasting Services
Subsector:
Industrial Classification:
Obligations Affected: National Treatment (Article 11.4)
Level of government: Central
Measures: Telecommunications Law, Article 123.
Description: Investment
Concessions and licenses for free reception broadcasting services shall be granted to Salvadoran nationals born in El Salvador or to companies incorporated in accordance with Salvadoran laws. In the case of such companies, the capital stock must be constituted with at least 51 percent of the capital stock from Salvadorans.
7. Sector: Performing Arts
Subsector:
Industrial Classification:
Obligations Affected: National Treatment (Article 12.4)
Level of government: Central
Measures: Immigration Law, Articles 62-A and 62-B. Legislative Decree No. 382, dated May 29, 1970, published in the Official Gazette No. 64, Volume 227, dated April 10, 1970. Executive Decree No. 16 dated May 12, 1970, published in the Official Gazette No. 87, Volume 227, dated May 18, 1970.
Description: Cross-Border Trade in Services
No foreign artist may offer a performance of any kind without the express authorization of the Ministry of the Interior, which shall previously hear the illustrative opinion of the legally established union of artists in the field of work of the foreign artist, within 15 days of the request. Foreign artists shall pay in advance to the respective union a performance fee of 10 percent of the gross remuneration they receive in the country.
If advance payment is not possible, the artist will have to provide a sufficient surety in favor of the respective union.
No foreign artist or group of artists may perform in the country for more than 30 consecutive days or at intervals, within a period of one year from the first day of their performance.
An artist is any person who performs in El Salvador, either individually or in the company of another or others, for the performance of music, singing, dancing or reading or giving performances, either in person (live) before a large or small audience or by means of radio or television.
8. Sector: Circuses
Subsector:
Industrial Classification:
Obligations Affected: National Treatment (Article 12.4)
Level of government: Central
Measures: Decree No. 122 dated November 4, 1988, published in the Official Gazette No. 219, Volume 301, dated November 25, 1988, Article 3. Legislative Decree No. 382 dated May 29, 1970, published in the Official Gazette No. 64, Volume 227, dated April 10, 1970. Decree No. 193 dated March 8, 1989, published in the Official Gazette No. 54, Volume 302, dated March 17, 1989, Articles 1 and 2. Regulations for the Application of Legislative Decrees 122 and 193 Related to Circus Companies, Articles 1 and 2.
Description: Cross-Border Trade in Services
Foreign circuses or similar shows must pay to the respective Circus Artists Union the performance fee equivalent to 2.5 percent of the gross admission, which is collected daily at the box office. The fee must be paid in full through the withholding system.
All foreign circuses must be authorized by the corresponding Ministry and, once authorized, notify the Asociaci6n Salvadorefia de Empresarios Circenses (ASEC) and are obliged to pay the ASEC 3 percent of the gross ticket sales for each performance, as well as 10 percent of the total income obtained from the sale to the public of the circus of banners, caps, T-shirts, balloons, photographs and other objects. The foreign circus must provide sufficient surety in favor of the ASEC.
A foreign circus entering El Salvador may only work in the city of San Salvador for a period of 15 days, extendable only once for another 15 days.
A foreign circus that has performed in the country may only enter the country again after one year has elapsed from the date of its departure.
9. Sector: Performing Arts
Subsector:
Industrial Classification:
Obligations Affected: National Treatment (Article 12.4)
Level of government: Central
Measures: Decree of the provisions to regulate the exploitation of works of intellectual nature by means of public communication and the participation of Salvadoran artists in public shows. Legislative Decree No. 239, dated June 9, 1983, published in the Official Gazette No. 111, Volume 279, dated June 15, 1983. Decree No. 18, Substitution of Articles 1 and 4 of Legislative Decree No. 239, dated June 9, 1983, published in the Official Gazette No. 7, Volume 282, dated January 10, 1984.
Description: Cross-Border Trade in Services
In the case of public shows with the live participation of artists of any genre, the participation of Salvadoran nationals shall be equivalent to 20 percent of the number of foreign participants.
10. Sector: Shopping Centers and Free Establishments Tax-Free
Subsector:
Industrial Classification:
Obligations Affected: National Treatment (Articles 11.4 and 12.4) Local Presence (Article 12.5)
Level of government: Central
Measures: Constitution of the Republic of El Salvador, Article 95. Law for the Establishment of Free Stores in the Maritime Ports of El Salvador, Article 5.
Description: Investment and Cross-Border Trade in Services
Permits to organize commercial centers or establishments in the country's seaports shall be granted by the Minister of Finance. The location of the pavilions destined for such purpose shall be decided by the Autonomous Port Executive Commission (CEPA).
Natural or juridical persons may apply for the permits referred to in the preceding paragraph. The former must be Salvadoran, of legal age and of proven responsibility and honesty. In the concession of the permits, preference shall be given to the Salvadorans by birth and Salvadoran legal persons.
11. Sector: Transportation Services
Subsector: Maritime Transportation
Industrial Classification:
Obligations Affected: National Treatment (Article 12.4) Local Presence (Article 12.5)
Level of government: Central
Measures: General Maritime and Port Law, Articles 42 and 53.
Description:
Cross-Border Trade in Services
Navigation and cabotage trade between ports of the Republic are reserved for vessels flying the national flag, but not between Central American ports, but may also be exercised by foreign vessels subject to the same conditions imposed on those flying the national flag, being of course subject in everything to the laws and regulations of the Republic. In order to be considered as national vessels, they must fulfill the following conditions and requirements:
(a) to be enrolled;
(b) use the national flag;
(c) be commanded by captainor national or nationalized skippers; and
(d) have at least 90 percent of Salvadoran seafarers in its crew.
The owner of a vessel who wishes to register it must be a resident of the Republic.
No person may be a member of the crew of a vessel or naval artifact registered in the Salvadoran maritime registry, or exercise any profession, trade, or occupation in the port jurisdiction, or in any activity regulated or controlled by the Maritime Port Authority, if it is not authorized by it or registered in the respective section of the Salvadoran maritime registry.
The seamen who do not belong to any crew of traffic vessels and the loading laborers who form the guild, shall be in charge of the disembarkation and transshipment of foreign or national products, artifacts or merchandise in the authorized ports of the Republic.
12. Sector: Air Services: Specialized Air Services
Subsector:
Industrial Classification:
Obligations Affected: Most-Favored-Nation Treatment (Article 12.3) National Treatment (Article 12.4)
Level of government: Central
Measures: Organic Law of Civil Aviation, Articles 5, 89 and 92.
Description: Cross-Border Trade in Services
The provision of specialized air services requires prior authorization from the Civil Aviation Authority. The authorization by the Civil Aviation Authority is subject to reciprocity and must take into account consideration of the national air transportation policy.
13. Sector: Air Services: Aircraft Repair and Maintenance Services during which the Aircraft is taken out of Service and Specialized Air Service Pilots.
Subsector:
Industrial Classification:
Obligations Affected: Most-Favored-Nation Treatment (Article 12.3) National Treatment (Article 12.4)
Level of government: Central
Measures: Organic Law of Civil Aviation, Articles 39 and 40.
Description: Cross-Border Trade in Services
El Salvador applies reciprocity requirements when recognizing or validating licenses, certificates and authorizations issued by foreign aeronautical authorities to:
(a) technical personnel providing repair and maintenance services during the period when the aircraft is removed from service; and
(b) pilots and other technical personnel providing specialized air services.
14. Sector: Professional Services: Customs Brokers
Subsector:
Industrial Classification:
Obligations Affected: National Treatment (Articles 11.4 and 12.4) Most-Favored-Nation Treatment (Articles 11.5 and 12.3)
Level of government: Central
Measures: Customs Code Regulations Central American Uniform Customs Code, Article 76.
Description: Investment and Cross-Border Trade in Services
Only nationals of Central American countries may work as customs agents.
15. Sector: Construction and Related Engineering Services
Subsector:
Industrial Classification:
Obligations Affected: National Treatment (Articles 11.4 and 12.4) Most-Favored-Nation Treatment (Articles 11.5 and 12.3) Local Presence (Article 12.5)
Level of government: Central
Measures: Law of Incentives to National Construction Industry Companies, Legislative Decree No. 504, published in Official Gazette No. 167, Volume 308, dated July 9, 1990, amended by Legislative Decree No. 733, published in Official Gazette No. 80, Volume 311, dated April 23, 1991.
Description: Investment and Cross-Border Trade in Services
To develop activities of design, consulting; consulting and management of engineering or architectural projects, or any type of work or study regarding the construction of such projects, either before, during or after construction, a company whose majority capital is owned by foreigners ("foreign company"), must be contractually associated with a company legally registered, qualified and established in El Salvador ("Salvadoran company").
The foreign company must appoint a resident representative in El Salvador.
Additionally, an engineering or architectural project is subject to the following requirements:
(a) companies incorporated under the laws of El Salvador must have an investment in the project equivalent to at least 40 percent of the value of the project; and
(b) such firms must provide at least 30 percent of the technical staff and 90 percent of the administrative staff for the project.
For greater certainty, technical and administrative personnel does not include executive personnel.
The requirements of subsections (a) and (b) shall not apply:
(i) when the funds for the project come partially or totally from foreign governments or international organizations; or
(ii) to specific projects or grants for specialized technical cooperation.
Annex II. Future Actions
Explanatory Notes
1. A Party's Schedule sets out, in accordance with Articles 11.9 (Reservations and Exceptions) and 12.7 (Reservations and Exceptions), a Party's reservations with respect to specific sectors, subsectors, or activities for which that Party may maintain existing measures, or adopt new or more restrictive measures, that are inconsistent with the obligations established by:
(a) Articles 11.4 or 12.4 (National Treatment);
(b) Articles 11.5 or 12.3 (Most-Favored-Nation Treatment);
(c) Article 12.5 (Local Presence);
(d) Article 12.6 (Market Access);
(e) Article 11.7 (Performance Requirements); or
(f) Article 11.8 (Senior Management and Boards of Directors).
2. Each reservation in the Party List contains the following elements:
(a) Sector refers to the general sector for which the reservation has been made;
(b) Subsector refers to the specific sector for which the reservation has been made;
(c) Industrial Classification refers, where applicable, to the activity covered by the reservation, in accordance with national industrial classification codes;
(d) Obligations Affected specifies the obligation or obligations referred to in paragraph 1 on which the reservation has been made;
(e) Description indicates the scope of the sector, subsectors or activities covered by the reserve; and
(f) Measures in Force identifies, where relevant and for transparency purposes, the measures in force that apply to the sectors, subsectors or activities covered by the reserve.
3. Pursuant to Articles 11.9 (Reservations and Exceptions) and 12.7 (Reservations and Exceptions), the Articles of this Treaty specified in the Affected Obligations element of a reservation do not apply to the sectors, subsectors and activities in terms of the Description element of that reservation.
4. In interpreting a reservation in the List, all elements of the reservation shall be considered. The Description element shall prevail over the other elements.
5. For the purposes of Mexico's Schedule, CMAP shall mean the digits of the Mexican Classification of Activities and Products, as established in the National Institute of Statistics, Geography and Informatics, Mexican Classification of Activities and Products, 1994.
Annex II. Future Actions. List of Costa Rica
1. Sector: All Sectors
Subsector:
Industrial Classification:
Obligations Affected: Most-Favored-Nation Treatment (Articles 11.5 and 12.3)
Description: Investment and Cross-Border Trade in Services