Dominican Republic - Central America - United States FTA (CAFTA-DR) (2004)
Categories

- Ley de Pesca, No. 5914, May 22, 1962, Arts. 15 (para. 1), and 19 (paras. a and b)

- Proyecto de Ley que crea el Consejo Dominicano de Pesca y Acuicultura, Art. 41

Description: Investment

Only natural persons residing in the Dominican Republic or enterprises organized under Dominican law may obtain fishing permits or fishing licenses.

To engage in maritime or fluvial fishing and hunting, an enterprise must be organized under Dominican law and 50 percent of its capital must be owned by Dominican nationals.

In order to obtain fishing permits, foreign-flag vessels must be previously authorized by the Marina de Guerra and the Direccién Nacional de Drogas.

Only Dominican nationals may engage in artisanal fishing within 54 nautical miles of the coast.

Sector: Educational Services

Obligations Concerned: Market Access (Article 11.4) Local Presence (Article 11.5)

Measures:

- Ley sobre Educacion Superior, Ciencia y Tecnologia, No. 139- 01, August 13, 2001, Art. 44

- Reglamento Orgdnico para las Instituciones Educativas, No. 66,97, May 28, 1999, Art. 19.2

Description: Cross-Border Services

To teach at any Education Center in the kindergarten, pre-school, elementary, intermediate, high school, technical, or university level, a foreign national must reside in the Dominican Republic.

The Secretaria de Estado de Educación Superior, Ciencia y Tecnologia (SEESCYT) may deny a request to create a new institution of higher learning or professional or technical institute if there is no economic need of such institution or institute.

For greater certainty, this entry does not apply to the supply of foreign language training, corporate, business, and industrial training programs, skill development programs, or educational consulting services, including technical support and development of curriculums and programs. It also does not apply to foreign educational institutions that offer their programs through institutions already established in the Dominican Republic.

Sector: Cooperative Associations

Obligations Concerned:  National Treatment (Article 10.3)

Measures:

- Ley sobre Asociaciones Cooperativas, No. 127-64, January 27, 1964, Arts. 1, 50, and 51

Description: Investment

Cooperatives are non-profit associations constituted by natural persons residing in the Dominican Republic or enterprises organized under the laws of the Dominican Republic.

They may accept foreign nationals residing in the Dominican

Republic as associates in a proportion not larger than 50 percent of the total membership and shares.

Sector: Lotteries

Obligations Concerned: Market Access (Article 11.4)

Measures: 

- Ley que Establece una Renta Pública bajo la Denominación de Lotería Nacional, No. 5158, June 25, 1959, Arts. 1, 2, and 3

Description: Cross-Border Services

The Loteria Nacional is the state enterprise that operates and manages the lottery of the Dominican Republic. A private enterprise currently holds an exclusive concession to provide electronic lottery services in the Dominican Republic.

Under Dominican law, a lottery is any system used to distribute prizes in money through raffles among people buying tickets for that purpose.

Sector: Retail Distribution of Pharmaceutical Products

Obligations Concerned: Market Access (Article 11.4)

Measures:

- Ley General de Salud, No. 42-01, March 8, 2001, Art. 103

Description: Cross-Border Services Pharmaceutical establishments shall be at a distance of at least 500 meters from each other. For purposes of this entry, pharmaceutical establishment means a pharmacy, drug store, or industrial pharmaceutical laboratory.

Sector: Services Incidental to Mining, Hydro-Electric Plant Construction and Management; Electricity Transmission, Marketing and Distribution Services; Public Irrigation Services; Management and Operation of Water Distribution and Waste Management Services; Airport and Port Construction, Operation and Management Services; and Operation of Lotteries

Obligations Concerned: Market Access (Article 11.4)

Existing Measures:

- Ley Minera de la República Dominicana, No. 146, June 4, 1971, Art. 3

- Ley General de Electricidad, No. 125-01, July 26, 2001, Art. 41 - Ley sobre el Dominio de Aguas Terrestre y Distribucién de Aguas Publicas, No. 5852, March 29, 1962, Arts. 17 and 18

- Ley que Crea el Instituto Nacional de Recursos Hidrdulicos (INDRHI), No. 6, September 8, 1964, Art. 4

- Ley que Estable una Renta Publica bajo la Denominacidén de Loteria Nacional, No. 5158, June 25, 1959, Arts. 1 and 3

Description: Cross-Border Services

In granting concessions to supply the following services:

- construction or temporary management of a hydro-electric power plant;

- construction or temporary management of an electric transmission project;

- distribution or marketing of electricity;

- irrigation services or construction, management, operation, or maintenance of water distribution or waste management services;

- construction, operation, or management of a port or airport;

- services incidental to mining; or

- operation of lotteries;

the Dominican Republic reserves the right to impose limitations on the number of service suppliers in the form of numerical quotas, monopolies, or exclusive service suppliers; or require supply of these services through a joint venture.

For greater certainty, any other conditions on the grant of such concession shall be otherwise consistent with the Agreement and services suppliers of the other Parties will be permitted to obtain such concessions.

Annex I. Schedule of El Salvador

Sector: All Sectors

Obligations Concerned: National Treatment (Article 10.3) Most-Favored-Nation Treatment (Article 10.4)

Level of Government: Central

Measures: Constitución de la República de El Salvador, Arts. 95 and 109

Description: Investment

Rural land may not be owned by a foreign person, including a branch of a foreign person, if the person is a national of a country or is organized under the law of a country that does not permit Salvadoran persons to own rural land, except in the case of land to be used for industrial plants.

An enterprise organized under Salvadoran law, a majority of whose capital is owned by foreign persons, or a majority of whose partners are foreign persons, is subject to the preceding paragraph.

Sector: All Sectors

Obligations Concerned: National Treatment (Article 10.3) Most-Favored-Nation Treatment (Article 10.4)

Level of Government: Central

Measures:

Constitución de la República de El Salvador, Arts. 95 and 115

Ley de Inversiones, Legislative Decree No. 732, Art. 7

Código de Comercio, Art. 6

Description: Investment

Only the following persons may engage in small scale commerce, industry, and the supply of services in El Salvador:

(a) Salvadoran nationals born in El Salvador; and

(b) nationals of Central American Parties.

An enterprise organized under Salvadoran law, a majority of whose capital is owned by foreign persons, or a majority of whose partners are foreign persons, may not establish a small scale enterprise to engage in small scale commerce, industry, and the supply of services ("small scale enterprise"). For purposes of this entry, a small scale enterprise is an enterprise with a capitalization not greater than 200,000 U.S. dollars.

Sector:  Cooperative Production Societies

Obligations Concerned: National Treatment (Article 10.3)

Level of Government: Central

Measures: Reglamento de la Ley General de Asociaciones Cooperativas, Title VI, Chapter 1, Art. 84

Description: Investment

In cooperative production societies, at least 75 percent of the total number of partners must be Salvadoran persons.

For purposes of this non-conforming measure, a branch of an enterprise that is not organized under Salvadoran law is not a Salvadoran person.

For greater certainty, a cooperative production society exists to provide certain benefits to its members including with respect to distribution, sales, management, and technical assistance. Its functions are not only economic but also social.

Sector: Duty-Free Commercial Centers and Establishments

Obligations Concerned: National Treatment (Article 10.3)

Level of Government:

Measures: Constitución de la República de El Salvador, Art. 95

Ley para el Establecimiento de Tiendas Libres en los Puertos Marítimos de El Salvador, Art. 5

Description: Investment

Only Salvadoran nationals born in El Salvador and enterprises organized under Salvadoran law may apply for a permit to establish duty-free commercial centers or establishments in El Salvador's seaports.

However, an enterprise organized under Salvadoran law, a majority of whose capital is owned by foreign persons, or a majority of whose partners are foreign persons, may not establish duty free commercial centers or establishments in El Salvador's seaports.

Sector: Air Services - Specialty Air Services

Obligations Concerned: Most-Favored-Nation Treatment (Article 11.3) National Treatment (Article 11.2)

Level of Government: Central

Measures: Ley Orgánica de Aviación Civil, Arts. 5, 89, and 92

Description: Cross-Border Services

The supply of specialty air services requires prior authorization from the Autoridad de Aviacién Civil. Authorization from the civil aviation authority is subject to reciprocity and must take into account national air transport policy.

Sector: Air Services - Aircraft Repair and Maintenance Services During which an Aircraft is Withdrawn from Service and Pilots of Specialty Air Services

Obligations Concerned: National Treatment (Article 11.2) Most-Favored-Nation Treatment (Article 11.3)

Level of Government: Central

Measures: Ley Orgánica de Aviación Civil, Arts. 39 and 40

Description: Cross-Border Services

El Salvador applies reciprocity requirements when determining whether to recognize or validate licenses, certificates, and permits issued by foreign air transport authorities to:

(a) technical staff supplying aircraft repair and maintenance services while an aircraft is withdrawn from service; and

(b) pilots and other technical staff supplying specialty air services.

Sector: Communications Services - Advertising and Promotional Services for Radio and Television

Obligations Concerned: Most-Favored-Nation Treatment (Article 11.3) National Treatment (Article 11.2)

Level of Government: Central

Measures:

Decreto de las disposiciones para regular la explotacidn de obras de naturaleza intelectual por medios de comunicacidn publica y la participacion de artistas salvadorefios en espectdculos piblicos, Legislative Decree No. 239, June 9, 1983, published in Diario Oficial No. 111, Vol. 279, June 15, 1983, Art. 4

Decree No. 18, Sustitución de los articulos 1 y 4 del Decreto Legislativo No. 239, June 9, 1983, published in Diario Oficial No. 7, Vol. 282, January 10, 1984

Description: Cross-Border Services

At least 90 percent of the production and recording of any commercial advertisement for use in El Salvador's public communications media, meaning over-the-air television and radio broadcasts and printed material that originate in El Salvador, must be carried out by enterprises organized under Salvadoran law.

A commercial advertisement produced or recorded by an enterprise organized under the law of another Central American Party may be used in the Salvadoran media, as long as similar treatment is extended by that Party to commercial advertisements produced or recorded in El Salvador.

The broadcast in El Salvador's public media of a commercial advertisement for an international product, brand, or service that has been imported into El Salvador or produced in El Salvador under license and does not satisfy the requirements referenced above will be permitted and may be subject to a one-time-fee.

Sector: Communications Services - Television and Radio Broadcasting Services

Obligations Concerned: National Treatment (Article 10.3)

Level of Government: Central

Measures: Ley de Telecomunicaciones, Art. 123

Description: Investment

Concessions and licenses for free reception broadcasting services shall only be granted to Salvadoran nationals born in El Salvador or enterprises organized under Salvadoran law whose equity capital is at least 51 percent owned by Salvadoran persons.

Sector: Performing Arts

Obligations Concerned:

Level of Government: National Treatment (Article 11.2)

Measures: Central

Ley de Migración, Arts. 62-A and 62-B

Legislative Decree No. 382, May 29, 1970, published in Diario Oficial No. 64,Vol. 227, April 10, 1970

Executive Decree No. 16, May 12,1970, published in Diario Oficial No. 87, Vol. 227, May 18, 1970, Art. 1

Description: Cross-Border Services

No foreign artist may give paid performances of any kind without the prior express authorization of the Ministerio de Gobernación, which shall first seek, within 15 days, the advisory opinion of the legally established craft union of the artistic field in which the artist is involved. Foreign artists shall pay, to the relevant union, a performance fee deposit of 10 percent of the gross income likely to be earned in the country. Where it is not possible to make the advance payment, the artist shall pay an adequate amount as a "security deposit" to the relevant union.

No foreign artist or group of artists may perform in the country for more than 30 days consecutively or intermittently within a year from the date of the first performance.

An artist is any person acting in El Salvador, individually or in a company consisting of one or more persons, to give performances in music, song, dance or readings, or to present shows, whether in person (i.e., live) or before a large or small audience or on radio or television.

Sector: Circuses

Obligations Concerned: National Treatment (Article 11.2)

Level of Government: Central

Measures:

Ley de Migración, Att. 62-C

Decree No. 122, November 4,1988, published in Diario Oficial No. 219, Vol. 301, November 25, 1988, Art. 3

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