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.
Reduction Schedule: None
Sector: Recreational, cultural and sporting services (except audiovisual services).
Subsector: Entertainment services (including theater, bands and orchestras and circuses).
Industrial Classification: CPC 96194. Circus, amusement park and other similar amusement services.
Type of Reservation: National Treatment (Article 10-04)
Level of Govemment: National
Measures: Decree No. 122, dated November 4, 1988, published in the Official Gazette No. 219, Volume 301, dated November 25, 1988, Article 3. Decree No. 193, dated March 8, 1989, published in the Official Gazette No. 54, Volume 302, dated November 17, 1989, Articles 1 and 2 Regulations for the Application of Legislative Decrees 122 and 193 Related to Circus Enterprises, Articles 1 and 2
Description: Cross-border services
Every foreign circus that enters and wishes to work in the national territory must request before the Ministry of the Interior, the corresponding authorization, which once granted must be made known to the Salvadoran Association of Circus Entrepreneurs (ASEC), before the circus begins its presentations. In the case of foreign circuses or similar shows, the performance fee shall be 2.5% of the gross admission, which is collected daily at the box office, to be settled and paid by the withholding system. Every foreign circus is obliged to provide to the ASEC, 3% of the gross income obtained from the sale of tickets for each presentation as well as 10% of the total income obtained from the sale to the public within the circus, of banners, caps, t-shirts, balloons, photographs and other kinds of objects. The foreign circus must provide sufficient surety in favor of the ASEC. Any foreign circus entering the country may only work in the city of San Salvador for a period of 15 days, extendable only once for another 15 days and must request the corresponding authorization from the Ministry of the Interior, which upon issuing it must immediately communicate it, before the circus authorized by the ASEC begins its presentation. A foreign circus that has performed in the country may only re-enter after at least one year has elapsed from the date of departure.
Reduction Schedule: None
Sector: Recreational, cultural and sporting services (except audiovisual services).
Subsector: Entertainment services (including theater, bands and orchestras and circuses).
Industrial Classification: CPC 96191. artistic services of theatrical producers, theater troupes, theater singers, bands and orchestras. CPC 96192 - Services provided by authors, composers, sculptors, entertainers and other artists on an individual basis CPC 96194 - Circus, amusement park and other similar amusement services. CPC 96199. Other entertainment services n.e.c.
Type of Reservation: National Treatment (Article 10-04) Performance requirements (Article 14-07)
Level of Govemment: National
Measures: Decree of provisions to regulate the exploitation of works of an 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 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 Services and Investment
In the case of public shows with the live participation of artists of any genre, the participation of nationals shall be 20% of the foreigners performing therein.
Reduction Schedule: None
Sector: Transportation services
Subsector: Maritime transport services
Industrial Classification: CPC 7211. Passenger Transportation CPC 7212. Freight transportation CPC 7213. Boat rental with crew CPC 7214. Towing and towing services. CPC 745. Support services related to maritime transportation.
Type of Reservation: National treatment (Article 10- 04) Local presence (Article 10- 05).
Level of Govemment: National
Measures: Navigation and Marine Law, Articles 10, 19, 20, 26, 27 and 32. Marine Regulatory Law, Articles 87, 89, 93, 94, 97, 97, 114, 128 and 129
Description: Cross-border 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 subject in all respects to the laws and regulations of the Republic. In order to be considered as national, the vessels must fulfill the following conditions and requirements: a) be registered; b) use the national flag; c) be commanded by national or nationalized captains or patrons; d) have in their crew not less than 80% of Salvadoran seamen. The owner of a vessel who wishes to register it, must be a resident of the Republic.
The sailors 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.
Reduction Schedule: None
Sector: Air transport services
Subsector: Specialized air services
Industrial Classification:
Type of Reservation: National treatment (Article 10-04) Most favored nation treatment (Article 10-03).
Level of Govemment: National
Measures: Civil Aeronautics Law, Articles 60, 71 and 72.
Description: Cross-border services
Authorization is required to develop specialized air services; when these are of a permanent nature, an operating permit is required. These are subject to economic necessity tests, reciprocity and national air policy.
Reduction Schedule: None
Sector: Air transport services
Subsector: Support services related to air transportation
Industrial Classification: CPC 746. Services auxiliary to air transport. CPC 8868. Maintenance (aircraft repair and maintenance services during the period in which an aircraft is removed from service). - Pilots, co-pilots
Type of Reservation: National Treatment (Article 10-04) Most-Favored-Nation Treatment (Article 10-03)
Level of Govemment: National
Measures: Civil Aeronautics Law, Articles 22, 23 and 115.
Description: Cross-border services
The validation or recognition of licenses, certificates and authorizations issued by foreign aeronautical authorities for aeronautical technical personnel on board aircraft or on the ground will be carried out based on the principles of reciprocity.
Companies that have their bases of operations in El Salvador must operate their aircraft with pilots in command and co-pilots of Salvadoran nationality; foreign pilots may be hired, provided there Is reciprocity and they comply with the requirements established by the legislation in force.
Companies that at the date of establishing their bases of operations in El Salvador are operating with foreigners as pilots in command and co- pilots, may continue using their services as long as they meet the legal requirements for the granting of their licenses.
Reduction Schedule: None
Section B.
Annex I List of El Salvador Section B
Sector: Business services
Subsector: Professional services
Industrial Classification: CPC 862. accounting, auditing and bookkeeping services. CPC 86302. Corporate tax preparation and review services
Type of Reservation: National Treatment (Article 14-04) Performance requirements (Article 14-07) Senior Management and Boards of Directors (Article 14- 08)
Level of Govemment: National
Measures in force: Code of Commerce
Description: Investment
El Salvador reserves the right to adopt or maintain any measure with respect to investment in accounting, auditing and bookkeeping services as well as corporate tax preparation and review services.
Deadline: 2 years from the entry into force of this treaty.
Sector: Construction services
Subsector: Construction work
Industrial Classification: CPC 511. pre-construction work on building sites and construction CPC 512. Construction of buildings CPC 513. General construction work on civil engineering works CPC 514. Assembly and installation of prefabricated buildings CPC 515. Specialized construction work CPC 516. Installation work CPC 517. Finishing work on buildings
Type of Reservation: National Treatment (Article 14-04) Performance requirements (Article 14-07) Senior Management and Boards of Directors (Article 14- 08)
Level of Govemment: National
Measures in force:
Description: Investment
El Salvador reserves the right to adopt or maintain any measure with respect to the investment related to the construction works listed in the industrial classification element.
Deadline: 2 years from the entry into force of this treaty.
Sector: Transportation services
Subsector: Road transport services
Industrial Classification: CPC 7121. Other regular passenger transportation CPC 7122. Other non-scheduled passenger transportation CPC 7123. Freight transportation CPC 7124. Commercial vehicle rental with driver CPC 7441. Bus station services
Type of Reservation: National Treatment (Article 14-04) Performance requirements (Article 14-07) Senior Management and Boards of Directors (Article 14- 08)
Level of Govemment: National
Measures in force:
Description: Investment
El Salvador reserves the right to adopt or maintain any measure with respect to investment in the land transportation services subsector, limited to other scheduled passenger transportation, other non- scheduled passenger transportation, freight transportation, commercial vehicle rental with driver, and bus station services.
Deadline: 2 years from the entry into force of this treaty.
Annex I. Schedule of Guatemala
Sector: All sectors
Subsector:
Industrial Classification:
Type of Reservation: National Treatment (Article 14-04)
Level of Govemment: National
Measures: Decree No. 118-96 amending Decrees No. 38-71 and 48-72, Articles 1 and 2.
Description: Investment
They may only be beneficiaries of national lands, in the Department of Petén, by means of adjudication in property, lease or usufruct, the Guatemalans of origin, who are not owners of rustic real estate in any part of the national territory larger than 45 hectares and/or of industrial, mining or commercial enterprises that allow them the necessary means for their own subsistence and that of their families. Legal entities whose capital stock is 100% owned by persons who meet the requirements listed in the preceding paragraph may also be beneficiaries of land allotments in the Department of Petén.
Reduction Schedule: None
Sector: All sectors
Subsector:
Industrial Classification:
Type of Reservation: National Treatment (Article 14-04)
Level of Govemment: National
Measures: Supplementary Titling Law, Decree 49-79, Article 2.
Description: Investment
Only natural Guatemalans may obtain supplementary title to real estate; in the case of juridical persons, these must be composed of a majority or totally of Guatemalans, a circumstance that must be proven when making the respective request.
Reduction Schedule: None
Sector: All sectors
Subsector:
Industrial Classification:
Type of Reservation: National Treatment (Article 14-04)
Level of Govemment: National
Measures: Political Constitution of the Republic of Guatemala, Article 122.
Description: Investment
Foreigners need authorization from the Executive, to acquire in property, real estate located in urban areas and property on which there are rights registered in the General Register of Property, prior to March 1, 1956, located in: a) A three-kilometer strip of land along the oceans; b) 200 meters around the shores of the lakes; c) 100 meters on each side of the banks of navigable rivers; and d) 50 meters around fountains and springs that supply water to the population.
Reduction Schedule: None
Sector: All sectors
Subsector:
Industrial Classification:
Type of Reservation: National Treatment (Article 14-04)
Level of Govemment: National
Measures: Political Constitution of the Republic of Guatemala, Article 123. Ley Reguladora de las Areas de Reservas Territoriales del Estado de Guatemala, Decree 126-97, Article 5.
Description: Investment
Only Guatemalans of origin, or corporations whose partners have the same status, may be owners or possessors of real estate located in the 15 kilometers wide strip along the borders, measured from the dividing line. Urban properties and rights registered prior to March 1, 1956 are exempted.
The State may lease real estate located within the territorial reserve areas of the State to natural or juridical persons; in the case of the latter that are legally constituted in Guatemala.
Reduction Schedule: None
Sector: All sectors
Subsector:
Industrial Classification:
Type of Reservation: National Treatment (Article 14-04)
Level of Govemment: National
Measures: Commercial Code, Decree 2-70 and its amendments, contained in Decree 62-95, Article 215.
Description: Investment
In order for a company legally incorporated under foreign laws (foreign company) to establish itself in the country or have branches or agencies therein, it must constitute an assigned capital for its operations in the Republic and a bond in favor of third parties for a reasonable amount, not less than the equivalent in Quetzals of 50 thousand United States dollars, which shall be fixed by the Commercial Registry, which must remain in force during all the time that such company operates in the country.
Reduction Schedule: None
Sector: Forestry
Subsector:
Industrial Classification: CPC. 31 Timber extraction CPC. 88140 Services related to agriculture and timber extraction.
Type of Reservation: National Treatment (Article 14-04)
Level of Govemment: National
Measures: Political Constitution of the Republic of Guatemala, Article 126.
Description: investment The exploitation of all forest resources and their renewal shall correspond exclusively to Guatemalan persons, individuals or legal entities.
Reduction Schedule: None
Sector: Business services
Subsector: Professional services
Industrial Classification: CPC. 861 Legal Services (applies only to Notaries)