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U.S. Department of State 
Dominican Republic Country Commercial Guide 
Office of the Coordinator for Business Affairs 
 
                          COUNTRY COMMERCIAL GUIDE 
                         FOR THE DOMINICAN REPUBLIC 
 
                              PREPARED BY 
                      AMERICAN EMBASSY SANTO DOMINGO 
                              JULY 1995 
 
 
 
 
I. EXECUTIVE SUMMARY  
 
II. ECONOMIC TRENDS AND OUTLOOK 
     - MAJOR TRENDS AND OUTLOOK                      
     - PRINCIPAL GROWTH SECTORS                      
     - GOVERNMENT ROLE IN THE ECONOMY                 
     - BALANCE OF PAYMENT SITUATION                
     - INFRASTRUCTURE SITUATION                      
 
III. POLITICAL ENVIRONMENT                           
     - NATURE OF  POLITICAL RELATIONSHIP WITH      
       THE U.S.                                    
     - MAJOR POLITICAL ISSUES AFFECTING BUSINESS      
       CLIMATE                                         
     - BRIEF SYNOPSIS OF POLITICAL SYSTEMS,  
       SCHEDULE FOR ELECTIONS, AND ORIENTATION 
       OF MAJOR POLITICAL PARTIES                     
 
IV. MARKETING U.S. PRODUCTS AND SERVICES            
     - DISTRIBUTION AND SALES CHANNELS                
     - USE OF AGENTS/DISTRIBUTORS, FINDING A      
       PARTNER                                         
     - FRANCHISING                                    
     - DIRECT MARKETING                               
     - JOINT VENTURES/LICENSING                     
     - STEPS TO ESTABLISHING AN OFFICE                
     - SELLING FACTORS/TECHNIQUES                     
     - ADVERTISING AND TRADE PROMOTION                
     - PRICING PRODUCT                               
     - SALES SERVICE/CUSTOMER SUPPORT                
     - SELLING TO THE GOVERNMENT                     
     - PROTECTING YOUR PRODUCT FROM IPR 
       INFRINGEMENT                                    
     - NEED FOR A LOCAL ATTORNEY                     
 
V. LEADING TRADE PROSPECTS FOR U.S. BUSINESS        
     - BEST PROSPECTS FOR NON-AGRICULTURAL GOODS 
       AND SERVICES                                    
     - BEST PROSPECTS FOR AGRICULTURAL PRODUCTS      
     - SIGNIFICANT INVESTMENT OPPORTUNITIES 
 
VI. TRADE REGULATIONS AND STANDARDS                 
     - TRADE BARRIERS, INCLUDING TARIFFS, NON- 
       TARIFF BARRIERS AND IMPORT TAXES                
     - CUSTOMS VALUATION                               
     - IMPORT LICENSES                               
     - EXPORT CONTROLS                               
     - IMPORT/EXPORT DOCUMENTATION                     
     - TEMPORARY ENTRY                               
     - LABELING, MARKING REQUIREMENTS                
     - PROHIBITED IMPORTS                          
     - STANDARDS                                    
     - FREE TRADE ZONES/WAREHOUSES                     
     - SPECIAL IMPORT PROVISIONS                     
     - MEMBERSHIP IN FREE TRADE ARRANGEMENTS           
 
VII. INVESTMENT CLIMATE                                
     A) OPENNESS TO FOREIGN INVESTMENT 
          - INVESTMENT BARRIERS 
     A1) CONVERSION AND TRANSFER POLICIES 
     A2) EXPROPRIATION AND COMPENSATION                
     A3) DISPUTE SETTLEMENT                          
     A4) POLITICAL VIOLENCE                          
     A5) PERFORMANCE REQUIREMENTS/INCENTIVES           
     A6) RIGHT TO PRIVATE OWNERSHIP AND           
         ESTABLISHMENT                               
     A7) PROTECTION OF PROPERTY RIGHTS                
     A8) REGULATORY SYSTEM:                          
     A)  LAWS AND PROCEDURES 
     B)  BILATERAL INVESTMENT AGREEMENTS 
     C)  OPIC AND OTHER INVESTMENT INSURANCE 
         PROGRAMS 
     D)  LABOR 
     E)  FOREIGN TRADE ZONES/FREE PORTS 
     F)  CAPITAL OUTFLOW POLICY 
     G)  MAJOR FOREIGN INVESTORS 

VIII. TRADE AND PROJECT FINANCING                      
     - BRIEF DESCRIPTION OF THE BANKING SYSTEM      
     - FOREIGN EXCHANGE CONTROLS AFFECTING            
       TRADING                                         
     - GENERAL FINANCING AVAILABILITY                
     - HOW TO FINANCE EXPORTS/METHODS OF PAYMENT      
     - TYPES OF AVAILABLE EXPORT FINANCING AND      
       INSURANCE                                    
     - PROJECT FINANCING AVAILABLE                     
     - LIST OF BANKS WITH CORRESPONDENT U.S. 
       BANKING ARRANGEMENTS                          

IX. BUSINESS TRAVEL                                
     - BUSINESS CUSTOMS                               
     - TRAVEL ADVISORY AND VISAS                     
     - HOLIDAYS                                    
     - BUSINESS INFRASTRUCTURE                     
 
APPENDICES 
 
A. COUNTRY DATA                                    
     1) POPULATION 
     2) POPULATION GROWTH RATE 
     3) RELIGION(S) 
     4) GOVERNMENT SYSTEM 
     5) LANGUAGE(S) 
     6) WORK WEEK 
 
B. DOMESTIC ECONOMY                                
     1) GDP 
     2) GDP GROWTH RATE 
     3) GDP PER CAPITA 
     4) GOVERNMENT SPENDING AS A PERCENT OF GDP 
     5) INFLATION 
     6) UNEMPLOYMENT 
     7) FOREIGN EXCHANGE RESERVES 
     8) AVERAGE EXCHANGE RATE FOR USD 1.00 
     9) DEBT SERVICE RATIO 
     10) U.S. ECONOMIC MILITARY/ECONOMIC ASSISTANCE 
 
C. TRADE                                               
     1) TOTAL COUNTRY EXPORT                          
     2) TOTAL COUNTRY IMPORTS                          
     3) U.S. EXPORTS TO D.R.                          
     4) U.S. IMPORTS FROM D.R.                     
 
D. INVESTMENT STATISTICS                               
 
E. U.S. AND COUNTRY CONTACTS                           
 
     - U.S. EMBASSY TRADE RELATED CONTACTS           
     - AMCHAM AND/OR BILATERAL BUSINESS COUNCILS 
     - COUNTRY TRADE OR INDUSTRY ASSOCIATIONS IN  
       KEY SECTORS                                     
     - COUNTRY GOVERNMENT OFFICES RELATING TO KEY 
       SECTORS AND\OR SIGNIFICANT TRADE RELATED 
       ACTIVITIES                                    
     - COUNTRY MARKET RESEARCH FIRMS                     
     - COUNTRY COMMERCIAL BANKS                     
     - MULTILATERAL DEVELOPMENT BANK OFFICES IN  
       COUNTRY 
 
F. MARKET RESEARCH                                     
 
G. TRADE EVENT SCHEDULE                               
 
 
 
THIS COUNTRY COMMERCIAL GUIDE (CCG) PRESENTS A COMPREHENSIVE LOOK AT THE 
DOMINICAN REPUBLIC'S COMMERCIAL ENVIRONMENT THROUGH ECONOMIC, POLITICAL 
AND MARKET ANALYSES. 
 
THE CCGS WERE ESTABLISHED BY RECOMMENDATION OF THE TRADE PROMOTION 
COORDINATING COMMITTEE (TPCC), A MULTI-AGENCY TASK FORCE, TO CONSOLIDATE 
VARIOUS REPORTING DOCUMENTS PREPARED FOR THE U.S. BUSINESS COMMUNITY.  
COUNTRY COMMERCIAL GUIDES ARE PREPARED ANNUALLY AT U.S. EMBASSIES 
THROUGH THE COMBINED EFFORTS OF SEVERAL U.S. GOVERNMENT AGENCIES. 
 

I.  EXECUTIVE SUMMARY 
 
THE DOMINICAN REPUBLIC OCCUPIES THE EASTERN TWO-THIRDS OF THE ISLAND OF 
HISPANIOLA, WHICH IT SHARES WITH HAITI.  THE COUNTRY HAS EXPERIENCED 
DYNAMIC AND ACCELERATED MODERNIZATION IN THE LAST DECADE.  ONCE 
PREDOMINANTLY AN AGRICULTURALLY BASED ECONOMY, THE COUNTRY NOW BOASTS 
WORLD-CLASS HOTELS AND RESORTS, INDUSTRIAL PARKS AND EXPORT-PROCESSING 
ZONES. 
 
THE DOMINICAN REPUBLIC'S MOST IMPORTANT RELATIONSHIP IS WITH THE U.S.  
GEOGRAPHIC PROXIMITY, A LARGE DOMINICAN EXPATRIATE COMMUNITY IN THE U.S. 
AS WELL AS STRATEGIC, TRADE AND INVESTMENT LINKAGES HAVE MADE RELATIONS 
BETWEEN THE TWO COUNTRIES CLOSE, AND AT TIMES CONTENTIOUS. 
 
IN AUGUST 1994, THE DOMINICAN CONSTITUTION WAS MODIFIED FOLLOWING AN 
AGREEMENT MADE AMONG DOMINICAN POLITICAL GROUPS.  THE AGREEMENT, KNOWN 
AS THE PACT FOR DEMOCRACY, WAS DESIGNED TO RESOLVE THE POLITICAL CRISIS 
THAT FOLLOWED THE MAY 1994 PRESIDENTIAL ELECTIONS, WHICH WERE MARRED BY 
SIGNIFICANT VOTING IRREGULARITIES; WIDESPREAD CHARGES OF FRAUD WERE 
VOICED BY OPPOSITION PARTY LEADERS AND INTERNATIONAL OBSERVERS.  AS A 
RESULT OF THE PACT FOR DEMOCRACY, PRESIDENT BALAGUER'S 4 YEAR TERM WAS 
REDUCED BY HALF AND NEW PRESIDENTIAL ELECTIONS ARE SCHEDULED FOR 1996. 
 
THE GENERAL BUSINESS CLIMATE IS ADVERSELY AFFECTED BY A HIGHLY 
CENTRALIZED REGULATORY AND ADMINISTRATIVE BUREAUCRACY CONTRIBUTING TO A 
SOMETIMES UNSTABLE OR CONFUSING BUSINESS ENVIRONMENT.  DOMINICAN AND 
FOREIGN EXECUTIVES COMPLAIN OF JUDICIAL AND ADMINISTRATIVE CORRUPTION 
AND SOME HAVE CHARGED THAT SUCH IRREGULARITIES AFFECT THE FAIR 
SETTLEMENT OF COMMERCIAL DISPUTES.  SEVERAL FOREIGN INVESTORS AND 
INTERNATIONAL COMPANIES HAVE OUTSTANDING TRADE AND INVESTMENT DISPUTES 
WITH THE DOMINICAN GOVERNMENT CONCERNING EXPROPRIATED PROPERTY OR NON-
FULFILLMENT OF PAYMENT OBLIGATIONS. 
 
THE COUNTRY ALSO FACES SERIOUS STRUCTURAL PROBLEMS RELATED TO HIGH 
LEVELS OF DEBT AND THE NEED TO IMPLEMENT DIFFICULT MARKET ACCESS, TRADE-
LIBERALIZING AND INVESTMENT REFORMS TO BE COMPETITIVE IN THE GLOBAL 
MARKETPLACE.  PRIVATIZATION OF THE NATIONAL DOMINICAN ELECTRICAL CORP. 
(CDE) HAS LONG BEEN PENDING.  MEANWHILE, BLACKOUTS OF MANY HOURS PER DAY 
ARE COSTLY TO BUSINESS AND INDUSTRY. 
 
WHILE ITS RECENT ECONOMIC PERFORMANCE HAS BEEN DISAPPOINTING THE 
DOMINICAN REPUBLIC IS THE SEVENTH LARGEST MARKET FOR U.S. EXPORTS IN THE 
WESTERN HEMISPHERE, GROWING BY 19% IN 1994 AND ABSORBING $2.7 BILLION OF 
U.S. PRODUCTS AND SERVICES. 
 
II.  ECONOMIC TRENDS AND OUTLOOK 
 
THIS REPORT WAS DRAFTED IN JUNE 1995. STATISTICS WERE AVAILABLE FOR THE 
PERIOD THROUGH MARCH 1995. 
 
MAJOR TRENDS AND OUTLOOK: 
 
AFTER SEVERAL YEARS OF ECONOMIC STABILITY AND LOW INFLATION, 
MACROECONOMIC PROBLEMS RETURNED TO THE DOMINICAN REPUBLIC IN 1994.  AS 
ELECTIONS APPROACHED, THE GOVERNMENT FINANCED A SIGNIFICANT INCREASE IN 
SPENDING VIA MONEY CREATION, LEADING TO A CONSUMER PRICE INDEX INCREASE 
OF 14 PERCENT IN 1994 (GRAPH 1).  IN AN EFFORT TO MAINTAIN EXCHANGE RATE 
STABILITY, THE DOMINICAN GOVERNMENT DREW DOWN ITS FOREIGN EXCHANGE 
RESERVES; BY AUGUST 1994 THESE RESERVES HAD DROPPED TO 270.6 MILLION 
DOLLARS FROM 736.1 MILLION DOLLARS IN JANUARY 1994. RESERVES NET OF 
SHORT-TERM OBLIGATIONS WERE NEGATIVE US$62.7 MILLION, CALLING INTO 
SERIOUS QUESTION THE GODR'S ABILITY TO SERVICE ITS FOREIGN DEBT 
OBLIGATIONS. 
 
AFTER THE PRESIDENTIAL INAUGURATION IN AUGUST 1994, PRESIDENT BALAGUER 
APPOINTED HECTOR VALDEZ ALBIZU AS CENTRAL BANK GOVERNOR.  HE IMMEDIATELY 
ANNOUNCED A SERIES OF STABILIZATION POLICIES. THE MOST IMPORTANT OF 
THESE WERE TO END CENTRAL BANK FINANCING OF THE GOVERNMENT BUDGET 
DEFICIT AND A COMMITMENT TO A POLICY OF MINI-DEVALUATIONS OF THE 
OFFICIAL EXCHANGE RATE TO KEEP IT IN LINE WITH THE MARKET RATE (THIS 
LATTER COMMITMENT HAS NOT BEEN FULFILLED). 
 
THE DOMINICAN REPUBLIC'S MACROECONOMIC SITUATION HAS IMPROVED SINCE 
THEN. CENTRAL BANK STATISTICS SHOW INFLATION SLOWING DURING THE FIRST 
QUARTER OF 1995. WHILE STILL LOW, CENTRAL BANK DOLLAR RESERVES HAVE BEEN 
INCREASING SIGNIFICANTLY (GRAPH 2). 
 
THERE ARE HOWEVER, REASONS FOR CONCERN. THE GOVERNMENT CONTINUES AN 
EXPENSIVE PUBLIC WORKS PROGRAM. WHILE NO LONGER FINANCED BY CENTRAL BANK 
MONEY CREATION, IT APPEARS THAT THE GOVERNMENT IS "FUNDING" THIS 
CONSTRUCTION BY ACCUMULATING DOMESTIC DEBTS TO CONTRACTORS AND 
SUPPLIERS. EVENTUAL REPAYMENT OF THE GOVERNMENT'S DOMESTIC CREDITORS 
COULD LEAD TO BUDGET DEFICITS AND CONSEQUENTIAL MONETARY EXPANSION.  THE 
GOVERNMENT IS APPARENTLY INADEQUATELY COMPENSATING THE CENTRAL BANK FOR 
FOREIGN DEBT PAYMENTS WHICH ALSO HAS AN INFLATIONARY IMPACT. 
 
IN JANUARY 1995, THE DOMINICAN BANKING SECTOR UNDERWENT A BANK RUN. 
WHILE SIGNIFICANT IMPROVEMENTS IN BANK SUPERVISION HAVE RECENTLY TAKEN 
PLACE, THE BANK RUN DEMONSTRATED THE FRAGILITY OF THE BOTH THE BANKING 
SYSTEM AND GOVERNMENT AGENCIES TASKED WITH ENSURING ITS CONTINUED 
STABILITY.   
 
DURING 1994 THE DOMINICAN REPUBLIC RAN SIZEABLE EXTERNAL DEFICITS IN 
BOTH THE CURRENT AND CAPITAL ACCOUNTS. THESE DEFICITS WERE FINANCED BY A 
REDUCTION IN CENTRAL BANK DOLLAR RESERVES.  BY EARLY 1995 MANY DOMINICAN 
BUSINESS LEADERS WERE PUBLICLY CALLING FOR A NEW STANDBY AGREEMENT WITH 
THE INTERNATIONAL MONETARY FUND. ALTHOUGH LENGTHY DISCUSSIONS WITH THE 
IMF WERE HELD, AN AGREEMENT WAS NOT SIGNED BECAUSE OF THE GOVERNMENT'S 
REFUSAL TO UNIFY THE OFFICIAL EXCHANGE RATE (12.87 PESOS PER DOLLAR) AND 
THE MARKET DETERMINED RATE (APPROXIMATELY 13.75 PESOS PER DOLLAR IN JUNE 
1995).   
 
DURING 1994, THE DOMINICAN REPUBLIC MADE SIGNIFICANT PROGRESS IN THE 
AREA OF FOREIGN DEBT. ON AUGUST 30, 1994, THE GOVERNMENT CLOSED A DEAL 
WITH COMMERCIAL BANK CREDITORS ON ITS $1.2 BILLION DEBT. DEBT TO FOREIGN 
GOVERNMENTS HAD EARLIER BEEN RESCHEDULED VIA A PARIS CLUB NEGOTIATION. 
IN THE COMMERCIAL DEBT AGREEMENT, THE DOMINICAN REPUBLIC RECEIVED 
SUBSTANTIAL DEBT REDUCTION VIA A COMBINATION OF BUY-BACK AND TREASURY-
BACKED BOND OPTIONS.  THE GOVERNMENT COMPLIED WITH THE TERMS OF THE 
COMMERCIAL BANK RESCHEDULING AND MOST OF THE PARIS CLUB CREDITORS ARE 
BEING PAID IN A TIMELY FASHION.  ONE EXCEPTION IS THE DEBT ARREARS OF 
ABOUT US$90 MILLION TO THE COMMODITY CREDIT CORPORATION (CCC), AN AGENCY 
OF THE US DEPARTMENT OF AGRICULTURE. 
 
CENTRAL BANK STATISTICS SHOW THE DOMINICAN ECONOMY GROWING AT A 4.3 
PERCENT RATE DURING 1994 AND 3.1 PERCENT (ANNUALIZED) DURING FIRST 
QUARTER 1995. THE GROWTH IS CONCENTRATED IN THE TOURISM, FREE TRADE ZONE 
AND MINERALS EXPORT SECTORS WITH SOME GROWTH IN AGRICULTURAL EXPORTS.  
THERE IS ANECDOTAL EVIDENCE THAT THE DOMESTIC ECONOMY IS NOT GROWING, AS 
FARMGATE PRICES FOR DOMESTICALLY CONSUMED PRODUCTS AND PRODUCTION ARE 
BOTH DECLINING.  
 
THE DOMINICAN REPUBLIC, HOWEVER, CURRENTLY RETAINS HIGH TARIFFS AND NON-
TARIFF BARRIERS.  THE MAXIMUM TARIFF BOUND AT THE WTO IS 40 PERCENT 
ALTHOUGH THE ACTUAL MAXIMUM TARIFF NOW IN FORCE IS ONLY 35 PERCENT.  
HOWEVER, TAXES, WHICH ARE ENFORCED RIGOROUSLY ON IMPORTS, TEND TO RAISE 
THE EFFECTIVE LEVEL OF TARIFF PROTECTION.  IN ADDITION, A VARIETY OF 
NON-TARIFF BARRIERS WHICH REST ON LONGSTANDING TRADITIONS IMPEDE 
IMPORTS.  FOR EXAMPLE, CUSTOMS WILL FREQUENTLY NOT ACCEPT THE INVOICE 
VALUE OF GOODS FOR VALUATION PURPOSES AND AGRICULTURAL IMPORTS MUST HAVE 
THE CONSENT OF THE AGRICULTURE OR COMMERCE MINISTRIES BEFORE THEY ARE 
PERMITTED INTO THE COUNTRY. THESE TRADE BARRIERS AND OTHERS TEND TO 
DISCOURAGE IMPORTS EVEN WHERE TARIFF LEVELS APPEAR TO BE RELATIVELY LOW.  
THE IMPORT BARRIERS ALSO TEND TO RAISE COSTS FOR FIRMS OPERATING IN THE 
DOMINICAN REPUBLIC. 
 
THE DIFFICULTIES OF IMPORTING GOODS HAVE ENCOURAGED DEVELOPMENT OF A 
SERIES OF PROTECTED INDUSTRIES IN THE DOMINICAN REPUBLIC WHICH COULD 
SUFFER SERIOUS DISLOCATIONS IN A FREE TRADE ENVIRONMENT.   THESE 
THREATENED SECTORS CAN BE COUNTED UPON TO DEFEND THEIR POSITION AGAINST 
FREE TRADE.  THE POLITICAL DIFFICULTIES THAT MAY ARISE AS THREATENED 
SECTORS STRUGGLE TO MAINTAIN THEIR POSITION IN THE EXISTING ECONOMY MAY 
DELAY THE TRANSITION TO FULL IMPLEMENTATION OF THE URUGUAY ROUND 
AGREEMENTS. 
 
THE NORTH AMERICAN FREE TRADE AGREEMENT POSES A CHALLENGE TO THE 
DOMINICAN REPUBLIC, AS THE LARGEST BENEFICIARY OF THE CARIBBEAN BASIN 
INITIATIVE.  MEXICO'S ENHANCED ACCESS AND PHYSICAL PROXIMITY TO THE US 
MARKET MAY MAKE IT MORE ATTRACTIVE TO FOREIGN INVESTORS AND US IMPORTERS 
THAN THE DOMINICAN REPUBLIC.  THE US CONGRESS IS CURRENTLY CONSIDERING 
LEGISLATION TO PROVIDE A TRANSITION PERIOD OF "NAFTA PARITY" FOR 
CARIBBEAN BASIN COUNTRIES, INCLUDING THE DOMINICAN REPUBLIC, UNTIL 2005 
WHEN THE URUGUAY ROUND ACCORDS WILL BE FULLY IMPLEMENTED AND A NEW 
HEMISPHERIC FREE TRADE AREA SHOULD BECOME A REALITY.  WITHOUT THIS 
LEGISLATION AND SADDLED WITH RISING COSTS IN A FIXED EXCHANGE RATE 
REGIME IN THE DOMINICAN REPUBLIC, SOME FIRMS WILL SHIFT PRODUCTION FROM 
THE DOMINICAN REPUBLIC TO MEXICO OR OTHER LOW COST PRODUCERS IN THE 
REGION WHICH HAVE GOOD ACCESS TO THE US MARKET.   
 
NEARLY TWO THIRDS OF THE DOMINICAN REPUBLIC'S MERCHANDISE TRADE IS WITH 
THE UNITED STATES.  TOURISM WHICH IS NOW A MAJOR REVENUE EARNER IS 
FOCUSSED ON EUROPEAN CLIENTS (ABOUT 70 PERCENT OF THE DOMINICAN 
REPUBLIC'S TOURISTS COME FROM THE EUROPEAN COMMUNITY).  THE OUTLOOK FOR 
THE DOMINICAN ECONOMY, THEREFORE, IS RELATED CLOSELY TO MARKETS IN THE 
US AND EUROPE.   
 
THE WEAK GOVERNMENT ECONOMIC POLICY MECHANISMS ARE A THREAT TO GROWTH.  
THE TENDENCY OF THE GOVERNMENT TO RESORT TO MONETARY EXPANSION TO 
FINANCE PUBLIC EXPENDITURES, THE WEAK MECHANISMS AVAILABLE TO THE 
CENTRAL BANK TO ADDRESS ECONOMIC PROBLEMS LEAVE THE COUNTRY VULNERABLE.  
THE COUNTRY'S POOR INTERNATIONAL CREDIT RATING MEANS FOREIGN CREDITORS 
WILL NOT BE PRESENT TO HELP FINANCE GROWTH.  ALTHOUGH GOVERNMENT 
INVESTMENT IS HIGH IT IS HEAVILY FOCUSSED ON PUBLIC WORKS, AND HUMAN 
CAPITAL INVESTMENT HAS RECEIVED A SMALL SHARE OF THE GDP, TRANSLATING 
INTO A WILLING BUT UNDER-EDUCATED WORK FORCE.  THIS WEAKENS THE 
COUNTRY'S ABILITY TO ATTRACT FOREIGN INVESTORS TO SUPPLY THE CAPITAL AND 
TECHNOLOGY NEEDED FOR SUSTAINED ECONOMIC GROWTH.  THEREFORE, THE 
EXTERNAL SECTOR MUST AGAIN BE RELIED UPON TO STIMULATE THE ECONOMY.   
 
FINALLY, AS OTHER CARIBBEAN BASIN COUNTRIES PARTICIPATE MORE FULLY IN 
THE TRADE LIBERALIZATION CURRENTLY SPREADING THROUGHOUT THE HEMISPHERE, 
IT WILL BE INCREASINGLY DIFFICULT TO KEEP THE DOMINICAN REPUBLIC 
COMPETITIVE AS A TRADING PARTNER UNLESS IT REDUCES TARIFF AND NON-TARIFF 
BARRIERS, KEEPS ITS EXCHANGE RATE AT MARKET DETERMINED LEVELS, AND 
IMPROVES ITS INTERNATIONAL CREDIT RATING. 
 
PRINCIPLE GROWTH SECTORS:  
 
SECTOR                 PCT. REAL GROWTH 1994 
 
AGRICULTURE               - 1.8 
MINING                     92.5 
MANUFACTURING               2.9 
CONSTRUCTION                6.6 
HOTELS BARS REST.          15.0 
 
(SOURCE: DR CENTRAL BANK) 
 
AGRICULTURAL PRODUCTION WAS AFFECTED BY A SEVERE DROUGHT. MINING SECTOR 
OUTPUT GREW SHARPLY DUE TO INCREASES IN WORLD NICKEL PRICES AND 
RESUMPTION OF PRODUCTION AT THE STATE-OWNED GOLD/SILVER MINE. GROWTH IN 
THE MANUFACTURING SECTOR WAS LED BY INCREASED OUTPUT FROM FREE TRADE 
ZONE COMPANIES (OUTPUT THERE GREW 7.4 PERCENT). CONSTRUCTION FIRMS 
BENEFITTED FROM HEAVY GOVERNMENT INVESTMENT IN PUBLIC WORKS AND 
INCREASING HOUSING CONSTRUCTION. GROWTH IN "HOTELS BARS AND RESTAURANTS" 
REFLECTS THE CONTINUING SUCCESS OF THE DR TOURIST INDUSTRY. 
 
GOVERNMENT ROLE IN THE ECONOMY: 
 
THE DOMINICAN GOVERNMENT HAS TRADITIONALLY PLAYED A LARGE ROLE IN THE 
COUNTRY'S ECONOMIC LIFE.  THE GOVERNMENT IS THE OWNER OF ALL PUBLIC 
UTILITIES EXCEPT TELECOMMUNICATIONS, AN INSURANCE COMPANY, THE COUNTRY'S 
LARGEST BANK, AND FACTORIES PRODUCING A VARIETY OF ITEMS.  WITH THE 
EXCEPTION OF THE INSURANCE COMPANY AND BANCO DE RESERVAS, VIRTUALLY ALL 
OF THESE FIRMS LOSE MONEY ROUTINELY.  THE DOMINICAN GOVERNMENT HAS NOT 
YET EMBRACED PRIVATIZATION.  MANY OF THE STATE OWNED ENTERPRISES MAY NOT 
BE SALEABLE TO THE PRIVATE SECTOR BECAUSE OF THEIR POOR OPERATING 
CONDITION.  THE LARGE GOVERNMENT PRESENCE IN THE ECONOMY AND A WEB OF 
COMPLICATED REGULATIONS MEANS THAT MANY ECONOMIC DECISIONS ARE 
POLITICIZED AND BUSINESSPERSONS SPEND TIME "LOBBYING" THE GOVERNMENT.  
FOREIGN BUSINESSES CAN BE AT A DISTINCT DISADVANTAGE IN THIS PROCESS.  
U.S. BUSINESSPERSONS OPERATING OVERSEAS ARE OBLIGATED TO ABIDE BY THE 
PROVISIONS OF THE U.S. FOREIGN CORRUPT PRACTICES ACT.  AT 15 PERCENT OF 
GDP, THE OVERALL TAX BURDEN IMPOSED BY THE GOVERNMENT IS NOT UNUSUALLY 
HIGH, BUT THE GOVERNMENT DEPENDS ON TAXES LEVIED ON IMPORTS FOR 40 
PERCENT ITS REVENUES.   
 
INSTITUTIONAL DIFFICULTIES COMMON TO DEVELOPING COUNTRIES ARE ALSO 
PRESENT.  BUSINESSES OFTEN FIND THAT THE LABOR FORCE IS GOOD BUT 
UNTRAINED.  IT CAN BE DIFFICULT TO OBTAIN AN EQUITABLE RESULT IN THE 
ANTIQUATED JUSTICE SYSTEM.  THE BANKING SYSTEM IS EXPENSIVE (UNSECURED 
BUSINESS LOANS CARRY INTEREST RATES OF OVER 25 PERCENT CURRENTLY) AND 
THERE IS NO DEPOSIT INSURANCE.  IN ADDITION, THE BANKING SYSTEM IS WEAK 
AND A MODERN REGULATORY FRAMEWORK FOR BANKS IS ONLY NOW BEING PUT IN 
PLACE. 
 
 
BALANCE OF PAYMENTS SITUATION:  
 
SINCE THE MID 1970'S THE DOMINICAN REPUBLIC HAS HAD A MERCHANDISE TRADE 
DEFICIT FINANCED BY A GROWING SURPLUS IN TOURISM, NOW THE COUNTRY'S 
LEADING FOREIGN EXCHANGE EARNER. THE TRADE DEFICIT IS ALSO FINANCED BY 
REMITTANCES SENT BY THE DOMINICAN REPUBLIC'S EXPATRIATE POPULATION 
(APPROXIMATELY ONE MILLION DOMINICANS RESIDE IN THE US). EARNINGS FROM 
THE FREE TRADE ZONES, WHICH ARE CATEGORIZED AS SERVICES FOR BALANCE OF 
PAYMENTS ACCOUNTING, ALSO ARE AN IMPORTANT CONTRIBUTOR. 
 
AFTER SEVERAL YEARS OF BALANCE OF PAYMENTS SURPLUSES, IN 1994 THE 
DOMINICAN REPUBLIC SUFFERED A BALANCE OF PAYMENTS DEFICIT. THERE WERE 
DEFICITS IN BOTH THE CURRENT AND CAPITAL ACCOUNTS. THE CURRENT ACCOUNT 
DEFICIT WAS APPROXIMATELY 2 PERCENT OF GDP. THE CAPITAL ACCOUNT DEFICIT 
WAS SLIGHTLY LARGER.  THE GOVERNMENT REFUSAL TO DEVALUE THE PESO AND THE 
1994 BUDGET DEFICIT EXACERBATED THE DETERIORATION IN THE BALANCE OF 
PAYMENTS.  THE TRAUMATIC EVENTS SURROUNDING THE 1994 PRESIDENTIAL  
ELECTION STIMULATED SOME CAPITAL FLIGHT AND THE FIRST PAYMENTS UNDER THE 
COMMERCIAL BANK RESCHEDULING DREW RESERVES DOWN. 
 
INFRASTRUCTURE SITUATION:  
 
THE SITUATION VARIES FROM POOR TO VERY GOOD DEPENDING ON THE SPECIFIC 
SECTOR AS FOLLOWS:  
 
--  COMPANIA DOMINICANA DE ELECTIRCIDAD THE STATE OWNED ELECTRICAL 
ENERGY SUPPLIER DOES NOT HAVE ENOUGH CAPACITY TO SUPPLY THE COUNTRY'S 
ELECTRICITY DEMAND.  LOAD SHEDDING IS A COMMON PRACTICE AND VIRTUALLY 
ALL INDUSTRIAL ENTERPRISES HAVE THEIR OWN BACK-UP POWER.  SOME LARGE 
FIRMS MAINTAIN COMPLETELY INDEPENDENT ELECTRICITY SUPPLIES.  DURING 1994 
THE GAP BETWEEN DEMAND AND AVAILABLE ELECTRIC POWER GREW.  THERE IS 
LITTLE PROSPECT FOR SIGNIFICANT IMPROVEMENT IN 1995-96.  A NEW 185 
MEGAWATT POWER PLANT HAS BEEN CONSTRUCTED BY US INVESTORS IN PUERTO 
PLATA, BUT GOVERNMENT OWNED POWER PLANTS IN THE REST OF THE COUNTRY ARE 
DETERIORATING. 
 
-  ROADS AND HIGHWAYS:  IN COMPARISON TO MOST DEVELOPING COUNTRIES, THE 
DOMINICAN REPUBLIC HAS AN EXTRAORDINARILY WELL DEVELOPED ROAD NETWORK.  
THE GOVERNMENT IS CARRYING OUT PROJECTS TO EXPAND THIS NETWORK EVEN 
FURTHER. NEVERTHELESS, AS IN MOST DEVELOPING COUNTRIES, SOME OF THE 
ROADS AND HIGHWAYS ARE CONSIDERED TO BE IN POOR AND DANGEROUS CONDITION.  
THE COST OF TRUCK TRANSPORTATION IS VERY HIGH.  TRUCKERS BELONG TO 
SYNDICATES THAT REGULATE PRICES. 
 
-- THERE ARE SEVEN INTERNATIONAL AIRPORTS IN THE DR; THEY ARE IN SANTO 
DOMINGO (2), PUERTO PLATA, LA ROMANA, PUNTA CANA, SANTIAGO, AND 
BARAHONA.  
 
-- MAJOR PORTS: SANTO DOMINGO AND OTHER MAJOR CITIES ARE SERVICED BY 
MODERN PORT FACILITIES. HAINA, LOCATED JUST OUTSIDE THE CAPITAL CITY, 
HAS A 2,600 FOOT LONG, 35 FOOT DRAFT WHARF, A 40 TON CONTAINER CRANE AND 
A 60 ACRE CONTAINER YARD. TRANSPORTATION TO MORE THAN A DOZEN U.S. PORTS 
IS AVAILABLE ON A WEEKLY BASIS. THERE IS ALSO DAILY FREIGHT SERVICE TO 
PUERTO RICO. OTHER PORTS ARE LOCATED IN THE CITIES OF LA ROMANA, BOCA 
CHICA, SAN PEDRO DE MACORIS AND PUERTO PLATA.  
 
-- THE DOMINICAN REPUBLIC HAS ONE OF THE MOST ADVANCED 
TELECOMMUNICATIONS NETWORKS IN LATIN AMERICA. SERVICES OFFERED BY THE 
TELEPHONE COMPANIES (CODETEL, TRICOM, AT&T, ALL AMERICAN CABLES AND 
RADIO, INC) INCLUDE: DIRECT DISTANCE DIALING, INTERNATIONAL DIRECT 
DISTANCE DIALING, LINE 800, ELECTRONIC MAIL, TELENET, CELLULAR MOBILE 
PHONES, FACSIMILE, NATIONAL PAGING SERVICES, ETC.  
 
-- MAJOR BUSINESS NEWSPAPERS AND BUSINESS OR SPECIALIZED MAGAZINES CAN 
BE PURCHASED LOCALLY. CABLE T.V. IS ALSO AVAILABLE LOCALLY IN MOST LARGE 
CITIES.  CABLE SYSTEMS GENERALLY SUBSCRIBE TO SOME U.S. AND EUROPEAN 
SERVICES.  DUE TO HIGH LEVELS OF ILLITERACY, RADIO AND TELEVISION ARE 
THE COMMUNICATION VEHICLES THAT REACH THE LARGEST NUMBERS OF DOMINICANS.  
 
III. POLITICAL ENVIRONMENT 
 
NATURE OF POLITICAL RELATIONSHIP WITH THE UNITED STATES: 
      
THE DOMINICAN REPUBLIC, WHICH SHARES THE ISLAND OF HISPANIOLA WITH 
HAITI, IS THE LARGEST DEMOCRACY IN THE CARIBBEAN.  IT HAS A LONG-
STANDING AND CLOSE RELATIONSHIP WITH THE UNITED STATES, ITS PRINCIPAL 
TRADING PARTNER AND LARGEST MARKET.  DOMINICANS ARE LARGELY PRO-U.S. 
POLITICAL AND ECONOMIC NATIONALISTS AT TIMES RESORT TO ANTI-AMERICAN 
RHETORIC AND CHARGES OF U.S. INTERFERENCE IN THE COUNTRY'S AFFAIRS.  THE 
DOMINICAN REPUBLIC'S FOREIGN POLICY, NONETHELESS, COINCIDES IN MOST 
ASPECTS WITH U.S. FOREIGN POLICY INTERESTS.  
 
MAJOR POLITICAL ISSUES AFFECTING BUSINESS CLIMATE: 
 
THE BUSINESS CLIMATE IS ADVERSELY AFFECTED BY A REGULATORY AND 
ADMINISTRATIVE SYSTEM WHERE POWER IS HIGHLY CENTRALIZED IN THE 
PRESIDENCY AND WHERE PUBLIC OFFICIALS AND EMPLOYEES HAVE UNCERTAIN 
TENURE AND RAPID TURNOVER.  THE SYSTEM IS ALSO MARKED BY A HIGH DEGREE 
OF ARBITRARINESS IN THE INTERPRETATION OF LAWS AND REGULATIONS.  THESE 
TRAITS CONTRIBUTE TO A SOMETIMES UNSTABLE OR CONFUSING REGULATORY 
ENVIRONMENT AND HAVE LED TO CRITICISMS THAT THE RULES OF THE GAME ARE 
CONSTANTLY CHANGING.  DOMINICAN AND FOREIGN BUSINESS LEADERS COMPLAIN OF 
JUDICIAL AND ADMINISTRATIVE CORRUPTION, AND SOME PERSONS HAVE CHARGED 
THAT CORRUPTION AFFECTS THE SETTLEMENT OF BUSINESS DISPUTES.  DOMINICAN 
EXPROPRIATION STANDARDS ARE AT VARIANCE WITH INTERNATIONAL NORMS.  
SEVERAL FOREIGN INVESTORS HAVE OUTSTANDING DISPUTES WITH THE DOMINICAN 
GOVERNMENT CONCERNING EXPROPRIATED PROPERTY OR OTHER NON-FULFILLMENT OF 
CONTRACTUAL OBLIGATIONS.  EVEN WHEN COMPENSATION HAS BEEN ORDERED, 
INVESTORS AND LENDERS OFTEN HAVE NOT RECEIVED PROMPT OR ADEQUATE 
PAYMENT.   
 
BRIEF SYNOPSIS OF POLITICAL SYSTEM, SCHEDULE FOR ELECTIONS, AND 
ORIENTATION OF MAJOR POLITICAL PARTIES: 
 
THE CONSTITUTION PROVIDES FOR A POPULARLY ELECTED PRESIDENT AND A 
BICAMERAL CONGRESS (COMPOSED OF 30 SENATORS AND 120 NATIONAL DEPUTIES).  
THE EXECUTIVE BRANCH, HEADED BY SEVEN-TERM PRESIDENT JOAQUIN BALAGUER, 
DOMINATES THE POLITICAL SYSTEM.  IN AUGUST 1994, THE CONSTITUTION WAS 
MODIFIED FOLLOWING AN AGREEMENT MADE AMONGST DOMINICAN POLITICAL GROUPS.  
THE AGREEMENT, KNOWN AS THE PACT FOR DEMOCRACY, WAS DESIGNED TO RESOLVE 
THE POLITICAL CRISIS THAT FOLLOWED THE MAY 1994 ELECTIONS WHICH WERE 
MARRED BY SIGNIFICANT IRREGULARITIES.  THE CHANGES INTER ALIA REDUCE 
BALAGUER'S SEVENTH TERM TO 24 MONTHS, PROHIBIT SUCCESSIVE PRESIDENTIAL 
RE-ELECTION, AND ASPIRE TO REFORM THE JUDICIAL SYSTEM.   
 
THE SUPREME COURT, APPOINTED BY THE PRESIDENT, HEADS A NOMINALLY 
INDEPENDENT JUDICIARY WHOSE MEMBERS ARE APPOINTED BY THE SENATE.  THE 
AUGUST CONSTITUTIONAL CHANGES PROVIDE FOR THE ESTABLISHMENT OF A 
NATIONAL JUDICIAL COUNCIL TO APPOINT THE MEMBERS OF THE SUPREME COURT.  
THESE JUDGES WOULD THEN BE EMPOWERED TO APPOINT THE COUNTRY'S OTHER 
JUDGES.  NEARLY ONE YEAR LATER HOWEVER, THE COUNTRY'S LEADING POLITICAL 
PARTIES REMAIN DEADLOCKED OVER THE COMPOSITION OF THE COUNCIL.   
 
PRESIDENTIAL ELECTIONS ARE SCHEDULED FOR MAY 1996.  THERE ARE NUMEROUS 
CANDIDATES VYING FOR THE NOMINATION OF BALAGUER'S REFORMIST SOCIAL 
CHRISTIAN PARTY (PRSC).  THE LEADING OPPOSITION GROUP IS THE SANTO 
DOMINGO ACCORD (ASD), ITS PRINCIPAL MEMBER BEING THE DOMINICAN 
REVOLUTIONARY PARTY (PRD).  THE THIRD LARGEST POLITICAL FORCE IN THE 
COUNTRY IS THE PARTY OF DOMINICAN LIBERATION (PLD).  OTHER POLITICAL 
PARTIES AND MOVEMENTS WILL ALSO POSTULATE CANDIDATES SEPARATELY OR IN 
ALLIANCES.   
 
IV.  MARKETING U.S. PRODUCTS AND SERVICES 
 
DISTRIBUTION AND SALES CHANNELS: 
 
THE BEST WAY FOR U.S. EXPORTERS TO PENETRATE THE DOMINICAN MARKET IS 
THROUGH IMPORTERS AND WHOLESALERS WHO ALSO OWN SEVERAL RETAIL OUTLETS.  
A DISTRIBUTION AGREEMENT IS NOT REQUIRED. 
 
USE OF AGENTS/DISTRIBUTORS - FINDING A PARTNER: 
 
ALTHOUGH THE USE OF AN AGENT OR A DISTRIBUTOR IS NOT REQUIRED, U.S. 
EXPORTERS WISHING TO MARKET A PRODUCT OR SERVICE IN THE DOMINICAN 
REPUBLIC ON A REGULAR BASIS, WITHOUT OPENING A BRANCH, SHOULD FIND AN 
AGENT OR A DISTRIBUTOR. 
 
THE DOMINICAN AGENT/DISTRIBUTOR LAW (LAW 173, APRIL 1966) IS DESIGNED TO 
PROTECT DOMINICAN CITIZENS WHO WORK AS AGENTS OR DISTRIBUTORS FOR 
FOREIGN COMPANIES.  BEFORE APPOINTING AN AGENT OR DISTRIBUTOR IN THE 
DOMINICAN REPUBLIC, U.S. FIRMS SHOULD SEEK LEGAL COUNSEL.  AGENTS AND 
DISTRIBUTORS OFTEN WILL HAVE THE RIGHT TO COMPENSATION LINKED TO ANNUAL 
SALES IF THE U.S. EXPORTER DECIDES TO TERMINATE THE RELATIONSHIP.  LAW 
173 IS COMPLICATED AND STRICTLY INTERPRETED. 
 
THE U.S. & FOREIGN COMMERCIAL SERVICE IN SANTO DOMINGO CAN HELP U.S. 
EXPORTERS FIND AGENTS AND DISTRIBUTORS THROUGH THE FOLLOWING SERVICES: 
 
-  AGENT DISTRIBUTOR SERVICE (ADS):  FCS STAFF WILL CONDUCT A SEARCH FOR 
SUITABLE REPRESENTATIVES AND PREPARE A REPORT LISTING FIRMS THAT HAVE 
READ CLIENT LITERATURE AND HAVE AGREED TO CONSIDER A BUSINESS 
RELATIONSHIP.  FEE: $250.00 
 
-  GOLDKEY SERVICE:  CONSISTS OF A SURVEY OF POTENTIAL  
REPRESENTATIVES OR CUSTOMERS BASED ON THE CLIENT'S REQUIREMENTS; PRE-
ARRANGED APPOINTMENTS WITH THESE PROSPECTS AND A BILINGUAL TRADE AIDE-
INTERPRETER-SECRETARY. FEES: (QUOTED IN US$)          
 
COUNTRY     FIRST DAY    EACH ADDITIONAL DAY 
BAHAMAS     $250          $150 
DOMINICAN 
REPUBLIC    $200          $125 
HAITI       $500          $400 
JAMAICA     $250          $150 
TRINIDAD    $200          $125          
           
- REP-FIND '95:  THIS EVENT IS HELD EVERY YEAR TO ASSIST U.S. EXPORTERS 
SEEKING AGENTS OR DISTRIBUTORS.   THE EVENT CONSISTS OF A DAY AND A HALF 
OF SPECIFIC APPOINTMENTS WITH POTENTIAL DOMINICAN DISTRIBUTORS. FUTURE 
EVENT DATES: NOVEMBER 9-10, 1995.  FEE: $1,200.00 
 
FRANCHISING: 
 
A RECENT PHENOMENON IN THE DOMINICAN REPUBLIC, FRANCHISING IS IN ITS 
EARLY STAGES, MOSTLY IN FOOD SERVICES.  PIZZA HUT, WENDY'S, DOMINOS 
PIZZA AND BURGER KING, AMONG OTHERS,  ARE IN OPERATION AND EXPANDING.  
IN NON-FOOD AREAS THERE IS A RADIO SHACK STORE AND A NUMBER OF BENNETON 
CLOTHING STORES.  THIS IS AN AREA OF OPPORTUNITY. 
 
DIRECT MARKETING: 
 
DIRECT MARKETING HAS MET WITH SOME SUCCESS FOR LOW COST LOCALLY PRODUCED 
SERVICES.  AVON, JAFRA AND AMWAY HAVE ESTABLISHED SUCCESSFUL FOREIGN 
OWNED DIRECT MARKETING ORGANIZATIONS. 
 
JOINT VENTURES/LICENSING: 
 
THERE IS A CONSIDERABLE AMOUNT OF JOINT VENTURE/LICENSING ACTIVITY IN 
THIS COUNTRY, INCLUDING MANUFACTURING AND SERVICES. 
 
STEPS TO ESTABLISHING AN OFFICE: 
 
REQUIREMENTS AND PROCEDURES- 
 
1. ARTICLES OF INCORPORATION (ESTATUTOS) IS THE BASIC DOCUMENT OF 
DOMINICAN COMPANIES.  IT IS SIGNED BY THE FOUNDERS OF THE COMPANY AND 
REPRESENTS A PRIVATE CONTRACT BETWEEN THE SIGNERS. 
 
2. A CERTIFICATION FROM THE TRADEMARK DEPARTMENT AT THE SECRETARIAT OF 
INDUSTRY AND COMMERCE MUST BE OBTAINED.  THE CERTIFICATION STATES THAT 
THE PROPOSED NAME IS AVAILABLE FOR USE. 
 
3. THE SHARES ISSUED BY THE COMPANY MUST BE FULLY SUBSCRIBED AND PAID.  
THE FOUNDER MUST MAKE A SWORN DECLARATION OF RECEIPT OF THE PAYMENTS 
BEFORE A NOTARY PUBLIC. 
 
4. A WRITTEN LIST OF THE INITIAL SHAREHOLDERS IS PREPARED BY THE 
FOUNDER(S) STATING THE NAMES, PERSONAL CIRCUMSTANCES, RESIDENCE OF EACH 
SHAREHOLDER, AND THE NUMBER OF SHARES SUBSCRIBED TO AND PAID FOR BY 
EACH. 
 
5. PAYMENT OF THE CAPITALIZATION TAX SHOULD BE MADE AT THE DEPARTMENT OF 
INTERNAL REVENUE (OFICINA DE RENTAS INTERNAS). 
 
6. A FIRST SHAREHOLDERS MEETING MUST BE HELD.  AT THE MEETING A WRITTEN 
LIST OF SHAREHOLDERS IN ATTENDANCE IS PREPARED.  THE ESTATUTOS AND THE 
DECLARATION MADE TO THE NOTARY ARE FORMALLY APPROVED.  IF SHARE PAYMENTS 
IN KIND ARE INVOLVED THE MEETING APPROVES AN INVENTORY AND ESTIMATE AND 
APPOINTS AN APPRAISER TO VERIFY THE ESTIMATE.  THE BOARD OF DIRECTORS 
AND OFFICERS OF THE COMPANY ARE ELECTED.  IF NO PAYMENTS IN KIND ARE 
INVOLVED, THE SHAREHOLDERS AUTHORIZE THE DEPOSIT OF DOCUMENTS AND THE 
PUBLICATION OF A NOTICE ANNOUNCING THE COMPANY'S FORMATION. 
 
7. WHEN PAYMENTS IN KIND ARE MADE FOR SHARES, A SECOND SHAREHOLDERS 
MEETING MUST BE HELD NO LESS THAN FIVE DAYS AFTER THE FIRST.  AT THIS 
MEETING THE APPRAISER'S REPORT IS APPROVED. 
 
8. THE ESTATUTOS, THE LIST OF SHAREHOLDERS, AND THE MINUTES OF THE FIRST 
AND SECOND (IF HELD) SHAREHOLDERS MEETINGS ARE REGISTERED AT THE CIVIL 
REGISTRY (OFICIALIA CIVIL). EVIDENCE THAT THE CAPITALIZATION TAX HAS 
BEEN PAID IS REQUIRED AT THIS TIME. 
 
9. AN AUTHORIZATION FOR THE DEPOSIT OF DOCUMENTS IS REQUIRED FROM THE 
GIFT AND ESTATE TAX SECTION OF THE INCOME TAX DEPARTMENT (LA SECCION DE 
IMPUESTOS A LA PROPIEDAD Y OBSEQUIOS DEL DEPARTAMENTO DE IMPUESTO SOBRE 
LA RENTA).  INTERNAL REVENUE STAMPS, A COPY OF THE ESTATUTOS AND THE 
LIST OF SHAREHOLDERS MUST ACCOMPANY THIS REQUEST. 
 
10. THE CIVIL AND COMMERCIAL COURT OF FIRST INSTANCE (CORTE CIVIL Y 
COMERCIAL DE PRIMERA INSTANCIA) AND THE JUSTICES OF PEACE (JUZGADOS DE 
PAZ) HAVING JURISDICTION OVER THE DOMICILE OF THE COMPANY AND ANY OF ITS 
BRANCHES MUST RECEIVE THE FOLLOWING DOCUMENTS: 
- THE ESTATUTOS 
- THE LIST OF SHAREHOLDERS 
- A COPY OF THE RECEIPT OF PAYMENT OF THE CAPITALIZATION TAX 
- AN ABSTRACT OF THE SWORN DECLARATION MADE TO THE NOTARY 
- THE LIST OF SHAREHOLDERS PRESENT AT THE SHAREHOLDERS MEETING(S) 
TOGETHER WITH THE RESOLUTIONS ADOPTED AND; 
- THE LETTER OF APPROVAL FROM THE INCOME TAX DEPARTMENT 
 
11. A NOTICE OF FORMATION OF THE COMPANY CONTAINING THE REQUIRED 
INFORMATION MUST BE PUBLISHED IN A GENERAL CIRCULATION NEWSPAPER. 
 
12. PRIOR TO STARTING ACTIVITIES, THE COMPANY MUST: 
 
- OBTAIN AN AUTHORIZATION TO START BUSINESS AND, IN THE CASE OF AN 
INDUSTRIAL OPERATION, OBTAIN A CERTIFICATE OF INDUSTRIAL REGISTRATION 
FROM THE SECRETARIAT OF STATE FOR INDUSTRY AND COMMERCE (SECRETARIA DE 
ESTADO DE INDUSTRIA Y COMERCIO). 
 
- REGISTER THE NAME OF THE COMPANY IN THE BUSINESS REGISTRY (REGISTRO 
MERCANTIL) MAINTAINED BY THE OFFICIAL CHAMBER OF COMMERCE, AGRICULTURE 
AND INDUSTRY. 
 
13. ALL PERSONS ENGAGED IN MANUFACTURING, SERVICE INDUSTRIES, OR 
DISTRIBUTION ARE REQUIRED TO OBTAIN AN OPERATING LICENSE (PATENTE).  
APPLICATION FORMS ARE AVAILABLE FROM INTERNAL REVENUE OFFICES.  THE FEE 
VARIES WIDELY DEPENDING UPON THE TYPE AND SIZE OF THE BUSINESS. 
 
SELLING FACTORS/TECHNIQUES: 
 
IN RETAIL SALES, DOMINICANS PREFER A CLOSE, HANDS ON PERSONAL ASSISTANCE 
AND SERVICE RELATIONSHIP.  IN SALES OF SERVICES AND MANUFACTURED GOODS, 
DOMINICANS RELY ON NETWORKING, CLOSE FAMILY AND PERSONAL RELATIONSHIPS, 
HENCE THE NEED FOR LOCAL AGENTS AND DISTRIBUTORS. 
 
ADVERTISING AND TRADE PROMOTION: 
 
MOST BUSINESSES IN THE DOMINICAN REPUBLIC USE THE MAJOR LOCAL 
NEWSPAPERS, TELEVISION CHANNELS AND RADIO STATIONS TO ADVERTISE THEIR 
PRODUCTS.  DUE TO HIGH ILLITERACY RATES, TELEVISION AND RADIO ARE THE 
MEDIA MOST USED FOR PRODUCTS MARKETED TO ALL SOCIAL CLASSES.  
 
COMPANIES IN THE DR ARE BECOMING AWARE OF THE BENEFITS OF PARTICIPATING 
IN EXHIBITION/TRADE PROMOTION SHOWS; THERE ARE MANY SMALL SCALE 
SECTOR/SPECIALIZED EXPOSITIONS FLOURISHING IN THE DOMINICAN REPUBLIC.  
TWO MAJOR EXHIBITIONS OF AMERICAN PRODUCTS AND SERVICES SPONSORED BY  
THE U.S. AND FOREIGN COMMERCIAL SERVICE SANTO DOMINGO ARE STAGED EVERY 
YEAR.  SEE APPENDIX G ON TRADE PROMOTION EVENTS. 
 
LIST OF MAJOR NEWSPAPERS AND PUBLISHERS: 
 
EDITORA EL LISTIN DIARIO 
MS. CARMEN CARVAJAL, ECONOMIC EDITOR 
CALLE PASEO DE LOS PERIODISTAS NO. 52 
ENSANCHE MIRAFLORES 
SANTO DOMINGO, DOM. REP. 
PHONE: (809) 686-6688  
FAX: (809) 686-6594 
 
EDITORA ULTIMA HORA (PART OF THE LISTIN DIARIO GROUP) 
MR. HECTOR LINARES, ECONOMIC EDITOR 
CALLE PASEO DE LOS PERIODISTAS NO. 52 
ENSANCHE MIRAFLORES 
SANTO DOMINGO, DOM. REP.  
PHONE: (809) 688-3361 
FAX: (809) 688-3019 
 
PERIODICO HOY 
MR. MARIO MENDEZ, ECONOMIC EDITOR  
AVE. SAN MARTIN NO. 236 
ENSANCHE LA FE 
SANTO DOMINGO, DOM. REP.  
PHONE: (809) 567-5442/566-1147 
FAX: (809) 567-2424 
 
PERIODICO EL NACIONAL (PART OF THE PERIODICO HOY GROUP) 
MR. EMILIO ORTIZ, ECONOMIC EDITOR 
AV. SAN MARTIN NO. 236 
SANTO DOMINGO, DOM. REP.  
PHONE: (809) 565-5581 
FAX: (809) 565-4190 
 
EDITORA EL CARIBE 
MR. RAFAEL SANG, ECONOMIC EDITOR 
AUTOPISTA DUARTE KM. 7 1/2 
SANTO DOMINGO, DOM. REP. 
PHONE: (809) 566-8161 
FAX: (809) 544-4003 
 
EDITORA EL GOLFO, S.A. (EL SIGLO) 
MR. CLAUDIO CABRERA, ECONOMIC EDITOR 
SAN ANTON NO. 2 
ZONA INDUSTRIAL DE HERRERA 
SANTO DOMINGO, DOM. REP.  
PHONE: (809) 530-1000 
FAX: (809) 530-8412 
 
SANTO DOMINGO NEWS (ENGLISH LANGUAGE PUBLICATION) 
EDITORA M.V. CONTIN, C. POR A. 
MS. DOLORES VICIOSO DE MORENO, CHIEF EDITOR 
AVE. GEORGE WASHINGTON KM. 10 ESQ. JUAN A. VICIOSO 
SANTO DOMINGO, DOM. REP.  
PHONE: (809) 535-7131 
FAX: (809) 535-0788 
 
PERIODICO EL NUEVO DIARIO 
MR. RAFAEL THOMAS JAIME, ECONOMIC EDITOR 
AV. FRANCIA NO. 41 ESQ. ROCCO COCHIA 
SANTO DOMINGO, DOM. REP.  
PHONE: (809) 687-7450 
FAX: (809) 687-3205 
 
EDITORA LA RAZON (LA NOTICIA) 
MR. FELIX REYNA, CHIEF EDITOR 
AV. INDEPENDENCIA, EDIF. RAHINTEL 
PARTE ATRAS, 2DA. PLANTA 
SANTO DOMINGO, DOM. REP.  
PHONE: (809) 535-0815 
FAX: (809) 532-0757 
 
PRICING PRODUCT: 
 
THIS IS A PRICE SENSITIVE MARKET WHERE THE PRICE IS OFTEN MORE IMPORTANT 
THAN QUALITY OR SERVICE.  HOWEVER, THIS ATTITUDE IS GRADUALLY CHANGING 
AND SOME NEW RETAIL OUTLETS CONCENTRATING ON QUALITY GOODS HAVE BEEN 
SUCCESSFUL. 
 
SALES SERVICE/CUSTOMER SUPPORT: 
 
THE DOMINICAN REPUBLIC IS WEAK IN THIS AREA.  WITH THE EXCEPTION OF A 
FEW LARGE FOREIGN OWNED COMPANIES, SALES SERVICE AND CUSTOMER SUPPORT IS 
STILL A DEVELOPING CONCEPT. 
 
SELLING TO THE GOVERNMENT: 
 
THE GOVERNMENT'S POOR CREDIT HISTORY, A TRACK RECORD OF PERSONAL 
FAVORITISM AND OPAQUE DECISION-MAKING MAKE GOVERNMENT SALES DIFFICULT 
AND RISKY.  HOWEVER, MANY OPPORTUNITIES EXIST WHEN PROJECT FINANCING IS 
FROM MULTILATERAL BANKS OR FOREIGN GOVERNMENT AID SOURCES WHERE THE 
BIDDING PROCESS IS OPEN AND PAYMENT IS GUARANTEED.  
 
PROTECTING YOUR PRODUCT FROM IPR INFRINGEMENT: 
 
IN ORDER TO PROTECT A PRODUCT FROM IPR INFRINGEMENT IT SHOULD BE 
REGISTERED AT THE LEGAL DEPARTMENT OF THE SECRETARIAT OF STATE FOR 
INDUSTRY AND COMMERCE.  THE  DEPARTMENT MAKES APPROVAL DECISIONS WITHIN 
THREE DAYS.  IF APPROVED, A LEGAL REGISTRATION SHOULD BE DONE THROUGH A 
LAWYER AND PUBLISHED IN A LOCAL NEWSPAPER.  AFTER THIS PROCESS IS 
CONCLUDED, THE COMPANY SHOULD PAY A FEE (PATENTE) TO THE SECRETARIAT OF 
STATE FOR FINANCE (SECRETARIA DE ESTADO DE FINANZAS). 
 
WHILE THE U.S. EMBASSY HAS BEEN SUCCESSFUL IN ASSISTING IN OBTAINING  
RESOLUTION OF SEVERAL IPR INFRINGEMENT CASES, ENFORCEMENT REMAINS 
QUESTIONABLE AND NEW CASES CONTINUE TO ARISE. 
 
NEED FOR A LOCAL ATTORNEY: 
 
A LOCAL ATTORNEY IS ALMOST ALWAYS NECESSARY WHEN DOING BUSINESS IN THE 
DOMINICAN REPUBLIC.  A LIST OF LAWYERS FOLLOWS:  
 
GRISOLIA & BOBADILLA 
MR. ANDRES E. BOBADILLA 
AV. JOHN F. KENNEDY AND LOPE DE VEGA 
EDIF. BANK OF NOVA SCOTIA 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 562-6100 
FAX:  (809) 562-7609 
 
BUFETE FIALLO CACERES, MEJIA-RICART 
MR. MARCIO MEJIA-RICART 
AVE. BOLIVAR NO. 74 
GAZCUE 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 687-3353/ 685-8446 
FAX:  (809) 682-0791 
 
HEADRICK, RIZIK, ALVAREZ Y FERNANDEZ 
MR. WILLIAM HEADRICK 
ELVIRA DE MENDOZA NO. 51 
ZONA UNIVERSITARIA 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 686-0404/685-4137/8 
FAX:  (809) 685-2936 
 
RUSSIN, VECCHI & HEREDIA BONETTI 
DR. LUIS HEREDIA BONETTI, OWNER AND MANAGER 
EL RECODO NO. 2 
EDIF. MONTE MIRADOR, 3ER. PISO 
BELLA VISTA 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 535-9511 
FAX:  (809) 535-6649/7517 
 
PELLERANO & HERRERA 
MR. JUAN MANUEL PELLERANO GOMEZ, PRESIDENT 
AV. JOHN F. KENNEDY NO. 10, ENS. MIRAFLORES 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 541-5200 
FAX:  (809) 567-0773 
 
CHAPTER V.  LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT 
  
BEST PROSPECTS FOR NON-AGRICULTURAL GOODS AND SERVICES:  
 
 
PART 1. 
 
1 - TELECOMMUNICATION EQUIPMENT (TEL) 
 
PART 2. NARRATIVE 
 
AFTER THE INTERCONNECTION AGREEMENT SIGNED BY COMPANIA DOMINICANA DE 
TELEFONOS (CODETEL) AND TRICOM, THE TWO MAJOR TELEPHONE COMPANIES IN THE 
COUNTRY, U.S. EXPORTS OF TELECOMMUNICATION EQUIPMENT EXCEEDED ALL 
ESTIMATES FOR 1994, REACHING US$45.3 MILLION, A 93 PERCENT INCREASE OVER 
1993 LEVELS.  THE TELECOMMUNICATION INDUSTRY IS DYNAMIC IN THE DOMINICAN 
REPUBLIC, ESPECIALLY IN THE TELEPHONE AND DATA SERVICES.  THE DOMINICAN 
REPUBLIC ENJOYS ADVANCED TELECOMMUNICATION CAPABILITIES WHEN COMPARED TO 
MANY OTHER LATIN AMERICAN COUNTRIES.  THE MOST PROMISING SUBSECTORS ARE:  
WIRE AND CABLE, SATELLITE SPACE & GROUND EQUIPMENT, AND TELEPHONE SETS. 
 
PART 3. DATA TABLE (MILLIONS OF US DOLLARS) 
                          1994     1995     1996 
A. TOTAL MARKET SIZE:     50.3     60.3     72.4 
B. TOTAL LOCAL PRODUCTION: -     -     - 
C. TOTAL EXPORTS:          -     -     - 
D. TOTAL IMPORTS:         50.3     60.3     72.4 
E. IMPORTS FROM THE U.S.: 45.3     54.4     65.2 
EXCHANGE RATE USED:       12.87 
THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES. 
PART 1. 
 
2 - AUTOMOBILES AND LIGHT TRUCKS/VANS (AUT) 
 
PART 2. NARRATIVE 
 
DECREE 66-94, OF MARCH 25, 1994, MODIFIED THE SELECTIVE CONSUMPTION TAX 
ON AUTOMOBILE IMPORTS.  THIS TAX WAS BASED ON ENGINE SIZE WHICH 
DISCRIMINATED AGAINST U.S. AUTOMOBILES.  UNDER THE NEW SYSTEM ENGINE 
SIZE IS NO LONGER TAKEN INTO ACCOUNT.  TAXES AND DUTIES ARE BASED SOLELY 
ON PRICE.  THE RESULT IS THAT THE COST OF IMPORTING AUTOMOBILES HAS BEEN 
REDUCED BY ABOUT 60%.  THIS LED TO A REDUCTION IN THE PRICE OF 
AUTOMOBILES, AND MARKET GROWTH FOR U.S. EXPORTS IN THIS SECTOR INCREASED 
BY 94% BETWEEN 1993 AND 1994 (FROM US$87 MILLION TO US$169 MILLION IN 
1994.) 
 
PART 3. DATA TABLE (MILLIONS OF US DOLLARS) 
-                          1994     1995     1996 
A. TOTAL MARKET SIZE:     563.0     650.0     750.0 
B. TOTAL LOCAL PRODUCTION:  -        -           - 
C. TOTAL EXPORTS:           -        -           - 
D. TOTAL IMPORTS:         563.0     650.0     750.0 
E. IMPORTS FROM THE U.S.:   169       195       225 
EXCHANGE RATE USED: 12.87 
THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES. 
 
 
PART 1. 
 
3 - AIR CONDITIONER PARTS & REFRIGERATOR (ACR) 
 
PART 2. NARRATIVE 
 
EVERY BUSINESS, TOURIST FACILITY AND MIDDLE CLASS FAMILY USES AIR 
CONDITIONERS.   AIR CONDITIONER AND REFRIGERATION PARTS ARE IN GREAT 
DEMAND IN THE DOMINICAN REPUBLIC BECAUSE OF THE HIGH PRICES OF NEW 
UNITS. 
 
PART 3. DATA TABLE (MILLIONS OF US DOLLARS) 
-                             1994     1995     1996 
A. TOTAL MARKET SIZE:          30.5     35.3     40.2 
B. TOTAL LOCAL PRODUCTION:      2.0      2.5      2.6 
C. TOTAL EXPORTS:                 -        -        - 
D. TOTAL IMPORTS:              28.5      32.8    37.6 
E. IMPORTS FROM THE U.S.:      22.8      26.2    30.1 
EXCHANGE RATE USED: 12.87 
THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES. 
 
PART 1. 
 
4 - MEDICAL EQUIPMENT (MED) 
 
PART 2. NARRATIVE 
 
THE GOVERNMENT OF THE DOMINICAN REPUBLIC HAS FORMED A NATIONAL HEALTH 
COMMISSION.  ITS FIRST PROJECT WILL BE THE PROCUREMENT OF MEDICAL AND 
SURGICAL EQUIPMENT AND SUPPLIES FOR 20 GOVERNMENT-OWNED HOSPITALS.  THE 
MOST PROMISING SUBSECTORS ARE:  SURGICAL/MEDICAL INSTRUMENTS AND 
SURGICAL APPLIANCES/SUPPLIES. 
 
 
PART 3. DATA TABLE (MILLIONS OF US DOLLARS) 
-                           1994     1995     1996 
A. TOTAL MARKET SIZE:      224.5     247.5     272.7 
B. TOTAL LOCAL PRODUCTION: 150.0     165.0     182.0 
C. TOTAL EXPORTS:          145.0     159.0     175.0 
D. TOTAL IMPORTS:          219.5     241.5     265.7 
E. IMPORTS FROM THE U.S.:  131.7     144.9     159.4 
EXCHANGE RATE USED: 12.87 
THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES. 
 
PART 1. 
 
5 - DRUGS & PHARMACEUTICAL (DRG) 
 
PART 2. NARRATIVE 
 
THE DOMINICAN MARKET FOR DRUGS AND PHARMACEUTICAL IS PROMISING, 
SUPPLYING APPROXIMATELY 1,200 DRUGSTORES, 400 PRIVATE CLINICS AND 140 
PUBLIC HOSPITALS.  THERE ARE NO IMPORT RESTRICTIONS ON DRUGS AND 
PHARMACEUTICALS.  THEY ARE EXEMPTED FROM ALL IMPORT DUTIES. 
 
PART 3. DATA TABLE (MILLIONS OF US DOLLARS) 
-                           1994     1995     1996 
A. TOTAL MARKET SIZE:       85.3     94.6     105.7 
B. TOTAL LOCAL PRODUCTION:  54.0     58.0      63.0 
C. TOTAL EXPORTS:           31.0     32.0      33.0 
D. TOTAL IMPORTS:           62.3     68.6      75.7 
E. IMPORTS FROM THE U.S.:   43.6     48.0      53.0 
EXCHANGE RATE USED: 12.87 
THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES. 
 
 
PART 1. 
 
6 - HOTEL & RESTAURANT EQUIPMENT (HTL) 
 
PART 2. NARRATIVE 
 
THE TOURISM INDUSTRY HAS GROWN RAPIDLY OVER THE LAST 10 YEARS.  MAJOR 
PURCHASERS FOR HOTEL AND RESTAURANT EQUIPMENT ARE THE 475 HOTELS, 460 
RESTAURANTS, 525 CAFETERIAS AND 85 PIZZA SHOPS AROUND THE COUNTRY. 
 
PART 3. DATA TABLE (MILLIONS OF US DOLLARS) 
-                            1994     1995     1996 
A. TOTAL MARKET SIZE:        22.2     24.4     26.8 
B. TOTAL LOCAL PRODUCTION:    0.7      0.7      0.8 
C. TOTAL EXPORTS:              -         -        - 
D. TOTAL IMPORTS:            21.5     23.7     26.0      
E. IMPORTS FROM THE U.S.:    12.9     14.2     15.6 
EXCHANGE RATE USED: 12.87 
THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES. 
 
PART 1. 
 
7 - HOUSEHOLD CONSUMER GOODS (HCG) 
 
PART 2. NARRATIVE 
 
INEFFICIENT LOCAL PRODUCERS HAVE CLOSED DOWN OPERATIONS AND AS A RESULT, 
OPPORTUNITIES FOR FOREIGN HOUSEHOLD APPLIANCE MANUFACTURERS HAVE GROWN 
IN THE DOMINICAN REPUBLIC.  THERE ARE TWO DISTINCTIVE SECTORS IN THE 
MARKET:  NEW HIGH QUALITY U.S. PRODUCTS AND USED/REFURBISHED (LOW COST) 
PRODUCTS FROM ASIA. 
 
THE MOST PROMISING SUBSECTORS ARE:  SOUND & T.V. EQUIPMENT AND HOUSEHOLD 
APPLIANCES. 
 
 
PART 3. DATA TABLE (MILLIONS OF US DOLLARS) 
-                            1994     1995     1996 
A. TOTAL MARKET SIZE:        23.4     25.5     27.7 
B. TOTAL LOCAL PRODUCTION:    8.0      8.5      9.0 
C. TOTAL EXPORTS:              -        -         - 
D. TOTAL IMPORTS:            15.4     17.0     18.7 
E. IMPORTS FROM THE U.S.:    10.8     11.9     13.1 
EXCHANGE RATE USED: 12.87 
THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES. 
 
PART 1. 
 
8 - ELECTRICAL POWER SYSTEMS (ELP) 
 
PART 2. NARRATIVE 
 
THIS SECTOR HAS GROWN FOR TWO REASONS: 1) THE INSTALLATION OF GENERATORS 
IN NEW INDUSTRIES AND HOTELS IN THE DOMINICAN REPUBLIC AND 2) 
REHABILITATION WORKS BEING PERFORMED ON THE TRANSMISSION LINES AT THE 
DOMINICAN ELECTRIC CORPORATION (CDE). 
 
PASSAGE OF THE ELECTRICAL ENERGY LAW, STILL BEING REVIEWED BY THE 
DOMINICAN CONGRESS, COULD CREATE SIGNIFICANT OPPORTUNITIES FOR U.S. 
FIRMS ENGAGED IN POWER GENERATION AND RELATED SERVICES. 
 
AMONG THE MOST PROMISING SUBSECTORS ARE ELECTRICAL APPARATUS, ELECTRIC 
TRANSFORMERS AND SWITCHES, ELECTRICAL METERS AND GENERATOR SETS. 
 
PART 3. DATA TABLE (MILLIONS OF US DOLLARS) 
-                            1994     1995     1996 
A. TOTAL MARKET SIZE:         198     208     218 
B. TOTAL LOCAL PRODUCTION:     -       -      - 
C. TOTAL EXPORTS:              -       -      - 
D. TOTAL IMPORTS:             198     208     218 
E. IMPORTS FROM THE U.S.:    99.0     104     109 
EXCHANGE RATE USED: 12.87 
THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES. 
 
PART 1. 
 
9 - AUTOMOTIVE PARTS AND SERVICE EQUIPMENT (APS) 
 
PART 2. NARRATIVE 
 
DUE TO DECREE 66-94 OF MARCH 1994, THE IMPORT TAXES FOR U.S. VEHICLES 
HAS BEEN REDUCED BY 60%.  THIS DECREASE LED TO MARKET GROWTH FOR THE 
AUTOMOBILE SECTOR AND SUBSEQUENTLY AN INCREASE IN THE IMPORTATION OF 
PARTS FOR AUTOMOBILES.  THE MOST PROMISING SUBSECTORS ARE:  AUTOMOTIVE 
SPARE PARTS AND AUTOMOTIVE ACCESSORIES. 
 
PART 3. DATA TABLE (MILLIONS OF US DOLLARS) 
-                          1994     1995     1996 
A. TOTAL MARKET SIZE:      51.6     54.4     57.1 
B. TOTAL LOCAL PRODUCTION:  2.3      2.5      2.7 
C. TOTAL EXPORTS:            -        -         - 
D. TOTAL IMPORTS:          49.3     51.9     54.4 
E. IMPORTS FROM THE U.S.:  13.3       14     14.7 
EXCHANGE RATE USED: 12.87 
THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES. 
  
PART 1. 
 
10 - TEXTILE MACHINERY (TXM) 
 
PART 2. NARRATIVE 
 
THERE IS A GROWING DEMAND FOR TEXTILE MACHINERY AND EQUIPMENT IN THE 
DOMINICAN REPUBLIC.  THE INCREASE IS PRIMARILY DUE TO A CONTINUOUS 
INCREASE OF APPAREL MANUFACTURERS IN THE D.R.  THERE ARE ALSO EUROPEAN 
MARKETS OPENING FOR DOMINICAN GARMENT PRODUCTS. 
 
PART 3. DATA TABLE (MILLIONS OF US DOLLARS) 
                             1994     1995     1996 
A. TOTAL MARKET SIZE:         34.6     36.3     38.1 
B. TOTAL LOCAL PRODUCTION:     -         -        - 
C. TOTAL EXPORTS:              -         -        - 
D. TOTAL IMPORTS:             34.6     36.3     38.1 
E. IMPORTS FROM THE U.S.:     24.2     25.4     26.7 
EXCHANGE RATE USED: 12.87 
 
BEST PROSPECTS FOR AGRICULTURAL GOODS: 
PART 1. 
WHEAT (000MT) P,S,& D CODE: 0410000 
PART 2. NARRATIVE 
THE DOMINICAN REPUBLIC HAS HISTORICALLY BEEN A GOOD MARKET FOR U.S. 
WHEAT.  HOWEVER, IN 1994, THE BULK OF THE MARKET WAS CAPTURED BY 
EUROPEAN EXPORTERS WHO WERE OFFERING HIGHLY SUBSIDIZED WHEAT.  DURING 
THE FIRST HALF OF 1995 MOST WHEAT IMPORTS WERE OF U.S. ORIGIN, BUT THIS 
COULD CHANGE IF EUROPEANS OFFER MORE SUBSIDIZED PRODUCT.  THE MAJOR 
IMPORTER, GOVERNMENT-OWNED MOLINOS, HAS HAD SERIOUS FINANCIAL PROBLEMS 
OF LATE.  THESE PROBLEMS, COMBINED WITH THE WTO-CONSISTENT PROCESS OF 
ELIMINATION OF IMPORT LICENSES AND TARIFFICATION AND INCREASED PRIVATE 
SECTOR WHEAT MILLING, SHOULD EXPEDITE LIBERALIZATION IN THIS SECTOR.  WE 
EXPECT TO SEE INCREASED IMPORTS OF WHEAT AND WHEAT FLOUR BY THE PRIVATE 
SECTOR. 
 
 
PART 3. DATA TABLE (IN TONS) 
                             1994     1995     1996 
 
TOTAL MARKET SIZE:         249,000     240,000     260,000 
 
TOTAL LOCAL PRODUCTION:      0            0             0 
 
TOTAL EXPORT:                0            0             0 
 
TOTAL IMPORTS:            249,000     240,000     260,000      
 
IMPORTS FROM THE U.S.:     32,000      20,000     190,000 
 
THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES 
 
 
PART 1. 
 
SOYBEAN MEAL (000MT) P,S, & D CODE:   0813100 
 
PART 2. NARRATIVE 
 
THE UNITED STATES IS THE PRINCIPAL SUPPLIER OF SOYBEAN MEAL TO THE 
DOMINICAN REPUBLIC, MAINLY BECAUSE OF COMPETITIVE PRICES AND LOW 
TRANSPORT COSTS.  LOCAL PRODUCTION CEASED WHEN THE COUNTRY'S SOLE 
SOLVENT EXTRACTION FACILITY CLOSED.  THE DOMINICAN POULTRY INDUSTRY IS 
THE MAJOR FEEDGRAIN USER, WITH A LESSER PERCENTAGE USED FOR SWINE AND 
DAIRY FEED. IMPORT LEVELS WILL CONTINUE TO DEPEND MAINLY UPON THE HEALTH 
OF THE POULTRY INDUSTRY. 
 
PART 3. DATA TABLE (IN TONS) 
 
                           1994     1995     1996 
 
TOTAL MARKET SIZE:       210,000     210,000     215,000 
 
TOTAL LOCAL PRODUCTION:     0           0           0 
 
TOTAL EXPORTS:              0           0           0 
 
TOTAL IMPORTS:          210,000     210,000     215,000      
 
IMPORTS FROM THE U.S.:  210,000     210,000     215,000 
 
THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES 
 
 
PART 1.  
 
CORN (000MT) P,S,& D CODE:     0813100      
 
PART 2. NARRATIVE 
 
CORN IS ANOTHER COMMODITY WHICH HAS STRONG DEMAND, IS SUPPLIED PRIMARILY 
BY THE UNITED STATES AND CONSUMED AS FEED BY THE POULTRY INDUSTRY.  
DOMINICAN GOVERNMENT OFFICIALS HAVE SUGGESTED THAT THEY NEED TO RESTRICT 
CORN IMPORTS TO PROVIDE PROTECTION TO DOMESTIC PRODUCERS OF FEEDGRAINS. 
SUCH RESTRICTIONS, AND INCREASES IN FEED PRICES, WOULD SERIOUSLY DAMAGE 
THE DR'S IMPORTANT POULTRY SECTOR AND ALSO RESULT IN INCREASED CONSUMER 
PRICES FOR POPULAR CHICKEN MEAT. 
 
PART 3. DATA TABLE (IN TONS) 
 
                            1994       1995         1996 
 
TOTAL MARKET SIZE:       656,000     665,000     670,000      
 
TOTAL LOCAL PRODUCTION:   36,000      40,000      40,000 
 
TOTAL EXPORTS:               0           0           0 
 
TOTAL IMPORTS:           620,000     625,000     630,000      
 
IMPORTS FROM THE U.S.:   560,000     565,000     570,000 
 
THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES 
 
NOTE: CARRY-OVER STOCK VARIES FROM YEAR TO YEAR       
 
 
PART 1. CONSUMER PRODUCTS ($THOUSAND) 
 
PART 2. NARRATIVE 
 
THE RAPID GROWTH WHICH CHARACTERIZED THE CONSUMER PRODUCT MARKET SINCE 
1990 APPEARS TO BE SLOWING DOWN.  FUTURE GROWTH OF THIS OVERALL SECTOR 
WILL DEPEND ON THE ABILITY OF THE "MIDDLE CLASS" TO PURCHASE HIGH VALUE 
PRODUCTS AND THE STRENGTH OF THE ECONOMY AS WE ENTER YET ANOTHER 
ELECTION YEAR.  HOWEVER, AS THE DOMINICAN REPUBLIC ELIMINATES ITS 
LICENSING PROCEDURES, IN ACCORDANCE WITH ITS WTO COMMITMENTS, 
OPPORTUNITIES FOR ADDITIONAL EXPORTS SHOULD INCREASE. 
 
PART 3. DATA TABLE (IN TONS) 
 
                              1994     1995     1996           
 
TOTAL IMPORTS FROM THE U.S. 
 
                            33,800     42,400     44,000 
 
MOST PROMISING SUBSECTORS       
 
--SNACK FOODS               9,800      9,000      10,000 
 
--POULTRY MEAT                600        500       1,200 
 
--RED MEATS                   800      1,200       1,500 
 
--DAIRY PRODUCTS           3,100       3,800       4,200 
 
--FRESH FRUITS             4,700       4,000       4,100 
 
--PROCESSED FRUIT & VEG & 
  JUICES                   9,200       9,200       9,500 
 
--WINE AND BEER            2,000       2,000       2,300      
 
THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES 
 
PART 1. 
 
LUMBER (MILLION BOARD FEET) P,S, & D CODE: 2482000 
 
PART 2. NARRATIVE 
 
THE DOMINICAN REPUBLIC WAS THE TOP FOREIGN MARKET FOR U.S. SOUTHERN PINE 
DURING THE LAST TWO YEARS AND EXPORT VALUE REACHED A NEW HIGH OF $56.4 
MILLION IN 1994.  PANEL PRODUCTS, INCLUDING PLYWOOD, RESULTED IN ANOTHER 
$5.0 OF U.S. EXPORTS TO THIS COUNTRY.  CONTINUED GROWTH OF THE 
CONSTRUCTION INDUSTRY, PARTICULARLY IN THE TOURIST SECTOR, HAS BEEN THE 
MAJOR FACTOR AFFECTING LUMBER CONSUMPTION. EFFORTS TO REPLACE IMPORTED 
WOOD PRODUCTS WITH DOMESTIC VARIETIES HAVE NOT YET BEEN SUCCESSFUL.  
HIGH TARIFFS AND TAXES CONTINUE TO BE A MAJOR OBSTACLE TO THE INDUSTRY'S 
GROWTH.                          
 
PART 3. DATA TABLE (IN TONS) 
 
                          1994     1995       1996 
 
TOTAL IMPORT MARKET:     115.0     117.0     117.0 
 
TOTAL LOCAL PRODUCTION:    N/A      N/A      N/A 
 
TOTAL EXPORTS:             0         0        0 
 
TOTAL IMPORTS:           115.0     117.0     117.0 
 
IMPORTS FROM THE U.S.:    87.0      90.0     105.0              
 
THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES      
 
 
PART 1. 
 
DAIRY COWS AND GENETICS 
 
PART 2. NARRATIVE 
 
THE LONG TERM PROSPECTS FOR INCREASED GENETIC EXPORTS TO THE DR ARE 
POSITIVE. FARMS ARE BECOMING LARGER AND MUST IMPORT GENETICS TO PRODUCE 
MILK WHICH IS AFFORDABLE TO CONSUMERS AND COMPETITIVE WITH ALTERNATIVE 
IMPORTS.  HOWEVER, THE SECTOR IS CURRENTLY DOMINATED BY CANADIAN 
SUPPLIERS. THE UNITED STATES HAS BEEN LOSING MARKET SHARE OVER THE PAST 
TWO YEARS.  U.S. EXPORTERS NEED TO MAKE MORE OF AN EFFORT TO MARKET 
THEIR GENETICS HERE.    
 
PART 3. DATA TABLE (IN TONS) 
 
BULL SEMEN ($ THOUSAND) 
 
                      1994     1995          1996 
 
TOTAL MARKET SIZE:     N/A 
 
TOTAL LOCAL PRODUCTION: N/A      
 
TOTAL EXPORTS:         0         0          0 
 
TOTAL IMPORTS:        N/A 
 
TOTAL IMPORTS U.S.:    76        80        100 
 
CATTLE 
                       1994      1995       1996 
 
TOTAL MARKET SIZE:     N/A 
 
TOTAL LOCAL PRODUCTION:     N/A 
 
TOTAL EXPORTS:           0         0        0            
 
TOTAL IMPORTS:     N/A 
 
TOTAL IMPORTS U.S.:     185       185      200       
 
THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES 
 
 
VI.  TRADE REGULATIONS AND STANDARDS 
 
TRADE BARRIERS, INCLUDING TARIFFS, NON-TARIFF BARRIERS AND IMPORT TAXES: 
 
THE DOMINICAN REPUBLIC HAS BEEN USING NON-TARIFF BARRIERS FOR 
AGRICULTURAL COMMODITIES AND FOOD PRODUCTS, INCLUDING "NO-OBJECTION" 
CERTIFICATES, AND/OR PRESIDENTIAL DECREES, WHICH PROTECTED DOMESTIC 
PRODUCERS FROM OUTSIDE COMPETITION.  PHYTOSANITARY AND ZOOSANITARY 
RESTRICTIONS WERE SOMETIMES BASED ON  UNSUBSTANTIATED HEALTH AND SAFETY 
CLAIMS.   
 
IN ACCORDANCE WITH WTO COMMITMENTS, THE DOMINICAN REPUBLIC HAS AGREED TO 
REDUCE TRADE BARRIERS, INCLUDING ARBITRARY LICENSING, AND TO USE TARIFFS 
TO CONTROL IMPORT LEVELS.  FOR AGRICULTURAL COMMODITIES, MAXIMUM TARIFF 
LEVELS WERE ESTABLISHED AT 40%.  HOWEVER, TARIFF LEVELS WILL REMAIN WELL 
BELOW THIS LEVEL FOR COMMODITIES WHICH DO NOT COMPETE WITH LOCALLY 
PRODUCED CROPS. 
 
THE GODR HAS ALSO PROMISED TO CONFORM WITH THE "SANITARY AND 
PHYTOSANITARY" MEASURES (SPS) OF THE WTO.  UNDER THE SPS AGREEMENT, 
COUNTRIES WILL REPLACE ARBITRARY DETERMINATIONS OF RISK LEVELS WITH 
SCIENTIFIC STANDARDS OF MEASUREMENT AND ESTABLISH LEGITIMATE IMPORT 
REGULATIONS TO ENSURE FOOD SAFETY FOR CONSUMERS.    
 
TAXES AND DUTIES FOR IMPORTED GOODS (AGRICULTURAL AND NON-AGRICULTURAL) 
ARE CALCULATED UPON THE "AD-VALOREM PRICE," I.E., CIF PRICE MULTIPLIED 
BY THE OFFICIAL FOREIGN EXCHANGE RATE (PRESENTLY US$1.00=RD$12.50).  ALL 
DUTIES AND TAXES ARE COLLECTED IN DOMINICAN PESOS.  THERE ARE GENERALLY 
FIVE TAXES ON IMPORTS EXCEPT FOR THOSE SUBJECT TO EXEMPTIONS 
PROVIDED BY LAW.  THE TAXES ARE: 
 
A)  ARANCEL:  THE BASIC IMPORT TAX WHICH CAN BE AS LOW AS 3% AND AS HIGH 
AS 35%. 
 
B) IMPUESTO SELECTIVO AL CONSUMO: A CONSUMPTION TAX FOR LUXURY IMPORTS;  
E.G., WINE & BEER, CIGARS AND CIGARETTES PAY 30 PERCENT.  FOR NON-
AGRICULTURAL GOODS THIS TAX FOR "NON-ESSENTIAL" GOODS RANGES BETWEEN 15-
60 PERCENT.  THIS TAX IS CALCULATED UPON THE CIF PRICE. 
 
C) ITBIS:  AN 8% TAX ON INDUSTRIALIZED GOODS AND SERVICES (IMPUESTO DE 
TRANSFERENCIA A LOS BIENES INDUSTRIALIZADOS Y SERVICIOS) FOR PROCESSED 
AGRICULTURAL GOODS AND ALL NON-AGRICULTURAL GOODS WHICH IS CALCULATED 
UPON THE CIF PRICE PLUS THE AMOUNT PAID FOR THE TAXES AND DUTIES 
PREVIOUSLY MENTIONED; AND 
 
D) IMPUESTO CAMBIARIO: 1.5% TAX WHICH MUST BE PAID TO THE CENTRAL BANK 
FOR THE PURCHASE OF FOREIGN EXCHANGE. 
 
EXAMPLE:  PRODUCT X 
  
A) CIF VALUE OF IMPORT IN US$     300.00 
 
B) CIF VALUE IN DOMINICAN PESOS (US$1-RD13.3)3,990.00 
 
C) SURCHARGE TAX (IMPUESTO CAMBIARIO, 1.5% OF B) 59.85 
 
D) TARIFF RATE PAID (EXAMPLE, 10% OF B)     399.00 
 
E) IMPUESTO SELECTIVO (LUXURY TAX) PAID 
   (30% OF B)     1,197.00 
 
F) INDUSTRIALIZED GOODS AND SERVICES TAX 
   ("ITBIS" 8% OF B PLUS C, D, AND E)      
   (3,990 + 399 + 1,197 + 59.85) (0.08)     451.67 
 
TOTAL TAXES     2,107.52 
 
EFFECTIVE TAX RATE     54 % 
 
CUSTOMS VALUATION: 
 
WITH ASSISTANCE FROM THE UNITED NATIONS DEVELOPMENT PROGRAM (UNDP) AND A 
TEAM FROM HARVARD UNIVERSITY, THE CUSTOMS SERVICE IMPLEMENTED A 
COMPUTERIZED VALUATION SYSTEM. 
 
IN ORDER TO COMPUTERIZE THE PROCESS, CUSTOMS ASKED FOR PRICE LISTS FROM 
ALL IMPORTERS.  SEVERAL DOMINICAN REPRESENTATIVES OF U.S. FIRMS HAVE 
COMPLAINED THAT CUSTOMS' VALUATIONS DO NOT REFLECT THE PRICES INDICATED 
ON THE MANUFACTURER'S LISTS.  CUSTOMS HAS REPLIED TO EMBASSY INQUIRIES 
STATING THAT ITS COMPUTERIZED LISTS WERE PREPARED TAKING THE PRICES 
PRESENTED BY THE IMPORTERS INTO CONSIDERATION AS WELL AS DISCUSSIONS 
WITH TRADE ASSOCIATIONS, THEN ESTABLISHING ITS OWN PRICES FOR EACH ITEM. 
 
THESE LISTS ARE NOT COMPLETE.  WHEN THE PRODUCT IS NOT FOUND IN THE 
LIST, THERE IS MORE DISCRETION LEFT TO THE INSPECTOR MAKING THE 
EVALUATION.  
 
IMPORT LICENSES: 
 
A) COMMERCE/INDUSTRY: 
IMPORT LICENSES ARE NOT REQUIRED FOR MOST PRODUCTS.  HOWEVER, IMPORT 
LICENSES ARE REQUIRED FOR PHARMACEUTICAL PRODUCTS AND AGRO-CHEMICALS.  
FOR PHARMACEUTICAL PRODUCTS A LICENSE MUST BE OBTAINED FOR EACH 
TRADEMARK/PRODUCT IMPORTED BY THE COMPANY, AT THE SECRETARIAT OF STATE 
FOR PUBLIC HEALTH.  IT IS VALID FOR A PERIOD OF 5 YEARS. 
 
AGRO-CHEMICALS AND FERTILIZERS REQUIRE AN IMPORT LICENSE FROM THE 
SECRETARIAT OF STATE FOR AGRICULTURE.  
 
B) AGRICULTURE: 
 
"NO OBJECTION" AND OTHER TYPE OF PERMITS ARE OFTEN REQUIRED TO IMPORT 
AGRICULTURAL COMMODITIES INTO THE DOMINICAN REPUBLIC.  PHYTOSANITARY 
CERTIFICATES ISSUED BY COMPETENT AUTHORITIES IN THE COUNTRY OF ORIGIN 
MUST ACCOMPANY LIVE PLANTS AND AGRICULTURAL MATERIAL USED IN PLANTING.  
IMPORTS OF ANIMALS NORMALLY REQUIRE CERTIFICATES OF ORIGIN AND OTHER 
VETERINARIAN DOCUMENTATION TO ASSURE THAT UNDESIRABLE DISEASES ARE NOT 
BROUGHT INTO THE COUNTRY.  THERE ARE NO QUOTAS ON AGRICULTURAL GOODS, 
BUT THE IMPORTATION OF FOOD AND AGRICULTURAL PRODUCTS DOES REQUIRE A 
LOCAL DISTRIBUTOR.  UNLESS OTHERWISE INDICATED, THE DOMINICAN REPUBLIC 
TENDS TO FOLLOW U.S. STANDARDS CONCERNING CHEMICAL TOLERANCES IN FOODS, 
PACKAGING AND LABELING REQUIREMENTS. 
 
EXPORT CONTROLS: 
 
A)  COMMERCE/INDUSTRY: 
 
NO EXPORT LICENSES ARE REQUIRED.  HOWEVER, THE SWORN DECLARATION OF 
EXPORTS (DECLARACION JURADA DE EXPORTACION) WHICH SHOULD BE PRESENTED AT 
THE PORT OF DEPARTURE.  FREE ZONE COMPANIES DO NOT NEED TO FILL OUT A 
DECLARATION, BUT SUBMIT A CERTIFICATE FROM THE NATIONAL FREE ZONE 
COUNCIL TO CEDOPEX FOR IT TO REGISTER THE EXPORTS. 
 
B)  AGRICULTURE: 
 
UNTIL 1993, LICENSES WERE REQUIRED FOR MOST AGRICULTURAL EXPORTS.  THE 
REQUIREMENT WAS LIFTED IN 1993.  DEPENDING UPON MARKET CONDITIONS THE 
DOMINICAN GOVERNMENT SOMETIMES SUBSIDIZES THE EXPORT OF RICE, COFFEE AND 
COCOA. 
 
IMPORT/EXPORT DOCUMENTATION: 
 
ALL IMPORTS INTO THE DOMINICAN REPUBLIC REQUIRE A CONSULAR INVOICE FROM 
A DOMINICAN OVERSEAS CONSULATE APPROVING THE TRANSACTION.  MANY U.S. 
EXPORTERS COMPLAIN THAT BECAUSE THERE IS NO STANDARD FEE FOR THE 
CONSULAR INVOICE THEY HAVE TO PAY AN ARBITRARILY-DETERMINED FEE FOR 
EVERY SHIPMENT TO THE DOMINICAN REPUBLIC.  HOWEVER, ALL GOODS ENTERING 
THE FREE TRADE ZONES THAT ARE DESTINED FOR RE-EXPORT ARE EXCUSED FROM 
THIS AND OTHER CUSTOMS REQUIREMENTS SUCH AS: ALL IMPORT LICENSES, 
REGISTRATION REQUIREMENTS, AND PAYMENT OF CUSTOMS DUTIES COMMERCIAL 
INVOICE BILL OF LANDING IF BY SHIP OR AIR-WAY BILL FOR AIR CARGO. 
 
TEMPORARY ENTRY: 
 
A)  COMMERCE/INDUSTRY: 
 
TEMPORARY ENTRY IS PERMITTED FOR EXHIBITION OR DEMONSTRATION PURPOSES.  
NO CUSTOMS DUTIES ARE PAID TO CUSTOMS AND THE GOODS MUST BE SHIPPED 
BACK.  IF THE COMPANY WISHES TO SELL THE PRODUCTS OR MACHINERY AFTER 
THIS TEMPORARY ENTRY HAS BEEN PERMITTED, IT ONLY HAS TO GO TO THE 
CUSTOMS OFFICE AT THE ORIGINAL PORT OF ENTRY AND PAY THE NECESSARY 
TARIFFS AND DUTIES.  
 
B)  AGRICULTURE: 
 
THERE ARE NO PROVISIONS FOR THE TEMPORARY ENTRY OF AGRICULTURAL 
PRODUCTS.  HOWEVER, AGRICULTURAL COMMODITIES AND FOOD PRODUCTS MAY BE 
IMPORTED UNDER BONDED WAREHOUSING AND FOR TRANSSHIPMENT. 
 
LABELING, MARKING REQUIREMENTS: 
 
THE DOMINICAN REPUBLIC DOES NOT HAVE LABELING REGULATIONS FOR PRODUCTS 
ENTERING THE COUNTRY.  THE DR TENDS TO FOLLOW U.S. STANDARDS AND 
REQUIREMENTS. 
 
PROHIBITED IMPORTS: 
 
NONE.  HOWEVER, OTHER IMPORT PERMISSIONS ARE USED TO EFFECTIVELY BAR THE 
IMPORTATION OF CERTAIN PRODUCTS, USUALLY FOR REASONS OF OVERSUPPLY IN 
THE COUNTRY.  AGRICULTURAL COMMODITIES IN WHICH THE DOMINICAN REPUBLIC 
IS CONSIDERED TO BE SELF-SUFFICIENT, SUCH AS GARLIC, ONION, POTATOES, 
PINTO BEANS, WHOLE POWDERED MILK (IN BULK) AND RICE, ARE OFTEN 
RESTRAINED, BUT WILL BE ALLOWED ENTRY DURING PERIODS OF DOMESTIC 
SHORTAGES. 
 
STANDARDS: 
 
THE DOMINICAN REPUBLIC TENDS TO FOLLOW U.S. STANDARDS AND REQUIREMENTS. 
 
FREE TRADE ZONES/WAREHOUSES: 
 
FREE ZONE OPERATORS (FZO) AND ENTERPRISES ARE ENTITLED TO 100% 
EXEMPTIONS FROM: 
- THE PAYMENT OF CORPORATE INCOME TAX 
 
- THE PAYMENT OF CONSTRUCTION TAXES, TAXES ON LOAN AGREEMENTS, AND ON 
THE RECORDING AND TRANSFER OF REAL PROPERTY FROM THE DATE OF FORMATION 
OF THE FZO. 
 
- THE PAYMENT OF THE TAX ON FORMATION OF CORPORATIONS AND ON THE 
INCREASE IN THEIR CAPITAL. 
 
- THE PAYMENT OF ANY MUNICIPAL TAXES WHICH MAY AFFECT THEIR ACTIVITIES. 
 
- THE PAYMENT OF IMPORT DUTIES AND RELATED TAXES ON RAW MATERIALS, 
EQUIPMENT, CONSTRUCTION MATERIALS, PARTS FOR BUILDINGS, OFFICE 
EQUIPMENT, ETC. DESTINED FOR CONSTRUCTION, PREPARATION OR OPERATION 
WITHIN THE FREE TRADE ZONE. 
 
- ALL TAXES ON EXPORTS OR RE-EXPORTS, EXCEPT FOR EXPORTS INTO THE LOCAL 
MARKET. 
 
- THE BUSINESS TAX (PATENTE) ON INVENTORY OR ASSETS AND OF THE TAX ON 
THE TRANSFER OF INDUSTRIALIZED GOODS AND SERVICES (ITBIS). 
 
- CONSULAR CHARGES ON IMPORTATION CONSIGNED TO FZO OR ENTERPRISES. 
 
- IMPORT DUTIES ON EQUIPMENT AND UTENSILS FOR THE INSTALLATION AND 
OPERATION OF CAFETERIAS, HEALTH SERVICES, MEDICAL ASSISTANCE, CHILD CARE 
CENTERS, ENTERTAINMENT OR AMENITIES OR OTHER EQUIPMENT FOR THE WELL-
BEING OF THE WORKING CLASS. 
 
- THE PAYMENT OF DUTIES ON THE IMPORTATION OF TRANSPORTATION EQUIPMENT, 
SUCH AS TRUCKS, GARBAGE TRUCKS, MICROBUSES, MINIBUSES FOR THE 
TRANSPORTATION OF EMPLOYEES TO AND FROM WORK, SUBJECT TO THE PRIOR 
APPROVAL, IN EACH CASE, OF THE NATIONAL FREE ZONE COUNCIL.  SUCH 
VEHICLES SHALL BE NON-TRANSFERABLE FOR A PERIOD OF AT LEAST FIVE YEARS. 
 
FIRMS LICENSED TO OPERATE IN THE FREE TRADE ZONE MAY: 
 
- INTRODUCE, STORE, UNPACK AND RE-PACK, RECYCLE, EXHIBIT, MANUFACTURE, 
MOUNT, ASSEMBLE, REFINE, PROCESS AND DEAL IN ANY TYPE OF PRODUCT, GOOD 
OR EQUIPMENT. 
 
- PROVIDE SERVICES, SUCH AS DESIGN, LAYOUT, MARKETING, 
TELECOMMUNICATIONS, PRINTING, DATA PROCESSING, TRANSLATION, SOFTWARE 
DEVELOPMENT AND ANY OTHER SIMILAR OR RELATED SERVICE. 
 
- INTRODUCE INTO THE FREE TRADE ZONE ANY AND ALL MACHINERY, EQUIPMENT, 
PARTS, AND TOOLS WHICH MAY BE NEEDED IN THEIR OPERATIONS. 
 
- TRANSFER MATERIALS, EQUIPMENT, MACHINERY, ETC. AS WELL AS LABOR AND 
SERVICES FROM ONE FREE TRADE ZONE ENTERPRISE TO ANOTHER OR BETWEEN 
ENTERPRISES OF DIFFERENT FREE TRADE ZONES, PROVIDED THE TRANSIT 
REGULATIONS FROM ONE FREE ZONE TO ANOTHER ARE COMPLIED WITH. 
 
 
SPECIAL IMPORT PROVISIONS: 
 
NONE 
 
MEMBERSHIP IN FREE TRADE ARRANGEMENTS: 
 
THE DOMINICAN REPUBLIC IS A MEMBER OF THE WORLD TRADE ORGANIZATION.   AT 
THE SUMMIT OF THE AMERICAS IN DECEMBER 1994 THE DOMINICAN REPUBLIC 
JOINED WITH OTHER WESTERN HEMISPHERE GOVERNMENTS IN COMMITTING ITSELF TO 
A FREE TRADE AGREEMENT FOR THE WESTERN HEMISPHERE BY THE YEAR 2005.  
 
 
VII.  INVESTMENT CLIMATE 
 
FOREIGN INVESTMENT IN THE DOMINICAN REPUBLIC FALLS INTO TWO MAIN 
CATEGORIES:  FREE TRADE ZONE INVESTMENT AND NON-ZONE INVESTMENT.  THE 
INFORMATION PROVIDED BELOW APPLIES TO INVESTMENTS OUTSIDE THE FREE TRADE 
ZONES (EXCEPT WHERE NOTED).  THE SITUATION IN THE FREE TRADE ZONES IS 
DESCRIBED IN PARAGRAPH (E). 
 
LAWS AND PROCEDURES: 
 
A)  OPENNESS TO FOREIGN INVESTMENT 
 
THE GOVERNMENT OFFICIALLY WELCOMES FOREIGN INVESTMENT AND HAS ENACTED 
LEGISLATION TO ENCOURAGE AND FACILITATE INVESTMENT.  NEVERTHELESS, 
SIGNIFICANT DE JURE AND DE FACTO BARRIERS TO FOREIGN INVESTMENT CONTINUE 
TO EXIST.  THIS INCLUDES AREAS WHERE DIRECT FOREIGN INVESTMENT IS 
RESTRICTED, OR IS PERMITTED ONLY UNDER JOINT-VENTURE ARRANGEMENTS.  A 
29% LIMIT ON FOREIGN INVESTMENT IS IN EFFECT FOR THE FORESTRY, MEDIA AND 
DOMESTIC TRANSPORTATION SECTORS WHILE THE LIMIT ON FOREIGN INVESTMENT IN 
THE FISHING, AGRICULTURE, POULTRY AND CATTLE, COMMERCIAL AND INVESTMENT 
BANKING AND INSURANCE SECTORS IS 49%. 
 
A1) CONVERSION AND TRANSFER POLICIES: 
 
A MARKET-BASED EXCHANGE RATE SYSTEM FOR MOST COMMERCIAL BANKING 
TRANSACTIONS EXISTS.  THE CENTRAL BANK USES THE MARKET-DETERMINED RATE 
OF EXCHANGE, WITH SOME EXCEPTIONS.  THE REFORMS ALSO PERMIT IMPORTERS TO 
OBTAIN HARD CURRENCY DIRECTLY FROM COMMERCIAL BANKS, INSTEAD OF ONLY 
FROM THE CENTRAL BANK.  ONE RESULT OF THIS MARKET-BASED SYSTEM IS THAT 
THERE IS CURRENTLY NO QUEUING FOR FOREIGN EXCHANGE.  ALTHOUGH BY LAW, 
THE CENTRAL BANK MUST RECEIVE ALL DOLLARS RESULTING FROM EXPORTS OF 
GOODS MANUFACTURED BY NON-FREE TRADE ZONE COMPANIES, IN PRACTICE THIS 
LAW IS APPLIED FLEXIBLY AND THE DOLLARS ARE TURNED INTO THE COMMERCIAL 
BANKING SYSTEM.  MOREOVER, FOR EXPORTERS OF NON-TRADITIONAL PRODUCTS 
(I.E., MANUFACTURED GOODS, PROCESSED AGRICULTURAL GOODS)AND THE TOURISM 
SECTOR THE DOLLARS CAN BE SOLD AT THE FREE MARKET RATE RATHER THAN THE 
CENTRAL BANK RATE. 
 
CAPITAL GAINS MAY BE REMITTED, BUT ONLY UP TO 2% OF REGISTERED CAPITAL 
ANNUALLY AND, CUMULATIVELY, ONLY UP TO 20% OF THE ORIGINAL INVESTMENT.  
CAPITAL INVESTMENTS MAY BE LIQUIDATED AND REPATRIATED, BUT ONLY IF THEY 
ARE REGISTERED INVESTMENTS AND ONLY UPON THE SALE OR LIQUIDATION OF THE 
ENTERPRISE (THESE RESTRICTIONS DO NOT APPLY TO FREE TRADE ZONE 
COMPANIES). 
 
ROYALTIES ARE PAID AS A PERCENTAGE OF TOTAL SALES.  ALL CONTRACTS THAT 
PROVIDE ROYALTY PAYMENTS MUST FIRST BE APPROVED BY THE FOREIGN 
INVESTMENT DIRECTORATE. 
 
A2)  EXPROPRIATION AND COMPENSATION: 
 
DOMINICAN EXPROPRIATION STANDARDS ARE AT VARIANCE WITH INTERNATIONAL 
NORMS.  SEVERAL US INVESTORS HAVE OUTSTANDING DISPUTES WITH THE 
DOMINICAN GOVERNMENT CONCERNING EXPROPRIATED PROPERTY.  IN SOME CASES 
THESE CLAIMS HAVE EXISTED FOR MANY YEARS.   INVESTORS AND LENDERS OFTEN 
HAVE NOT RECEIVED PROMPT OR ADEQUATE PAYMENT.  EVEN WHEN COMPENSATION 
HAS BEEN ORDERED, OR WHEN THE GOVERNMENT RECOGNIZES THE CLAIM, ACTUAL 
PAYMENT MAY BE EXTREMELY DIFFICULT TO OBTAIN.    
 
A3)  DISPUTE SETTLEMENT: 
 
ALL DR CRIMINAL AND CIVIL LEGISLATION IS BASED ON THE FRENCH SYSTEM 
(NAPOLEONIC CODE).  THE DOMINICAN REPUBLIC ALSO FOLLOWS THE "CALVO 
DOCTRINE," UNDER WHICH COMMERCIAL DISPUTES MUST BE SETTLED IN THE COURTS 
OF THE TERRITORY IN WHICH THEY OCCUR.  BOTH FREE TRADE ZONE AND NON-FREE 
TRADE ZONE COMPANIES FACE DISPUTE RESOLUTION PROBLEMS IN THE DOMINICAN 
REPUBLIC.  U.S. FIRMS BOUND BY THE FOREIGN CORRUPT PRACTICES ACT HAVE 
PARTICULAR DIFFICULTY ACCESSING JUSTICE WITHIN THE DOMINICAN SYSTEM. 
 
THE DOMINICAN REPUBLIC HAS NOT RECOGNIZED THE GENERAL RIGHT OF INVESTORS 
TO SUBMIT DISPUTES TO BINDING INTERNATIONAL ARBITRATION.  THE DR IS NOT 
A MEMBER OF THE INTERNATIONAL CENTER FOR THE SETTLEMENT OF INVESTMENT 
DISPUTES (ICSID, ALSO KNOWN AS THE WASHINGTON CONVENTION), NOR IS IT A 
MEMBER OF THE NEW YORK CONVENTION OF 1958 ON THE NEGOTIATION AND 
ENFORCEMENT OF FOREIGN ARBITRAL AWARDS.  THE GOVERNMENT HAS NOT RECENTLY 
ENTERED INTO BINDING ARBITRATION WITH FOREIGN PRIVATE CITIZENS. 
 
LAND TENURE ALSO POSES DIFFICULTIES.  ALTHOUGH NOT SPECIFIED IN LAW, THE 
GOVERNMENT CAN TAKE LAND WITHOUT COMPENSATION AND JUDICIAL PROCEDURES IN 
THE LAND COURTS ARE OFTEN OF UNEVEN QUALITY.  WHEN A JUDGEMENT IN FAVOR 
OF A FOREIGN INVESTOR IS RENDERED, THE JUDICIAL SYSTEM IS OFTEN UNABLE 
TO ENFORCE ITS DECISION.    
 
A NUMBER OF US INVESTORS, RANGING FROM LARGE FIRMS TO PRIVATE 
INDIVIDUALS, HAVE DISPUTES WITH THE DOMINICAN GOVERNMENT OVER 
COMPENSATION FOR VIOLATIONS OF DOMINICAN OR INTERNATIONAL LAW.  AS NOTED 
ABOVE THE DOMINICAN GOVERNMENT REFUSES TO ENGAGE IN INTERNATIONAL 
COMMERCIAL ARBITRATION OR TO NEGOTIATE A SETTLEMENT DIRECTLY WITH THESE 
FIRMS.  THE EMBASSY ESTIMATES THE TOTAL VALUE OF THESE CLAIMS AS AT 
LEAST US$31 MILLION.  THE CLAIMS FALL PRIMARILY INTO THREE CATEGORIES:  
REFUSAL TO LIVE UP TO THE TERMS OF A CONTRACT SIGNED WITH THE INVESTOR, 
EXPROPRIATION, AND FAILURE TO PAY FOR SUPPLIES OR EQUIPMENT.   
 
A4) POLITICAL VIOLENCE: 
 
THERE HAS BEEN NO POLITICAL VIOLENCE DIRECTED SPECIFICALLY AT FOREIGN 
FIRMS IN THE PAST 12 MONTHS.   
  
A5)  PERFORMANCE REQUIREMENTS/INCENTIVES: 
 
THERE ARE NO REQUIREMENTS THAT INVESTORS EXPORT A CERTAIN PERCENTAGE OF 
THEIR PRODUCTION.  FOREIGN COMPANIES ARE UNRESTRICTED IN THEIR ACCESS TO 
FOREIGN EXCHANGE.  LAW 69 REQUIRES LOCAL SOURCING WHEN COMPONENTS ARE OF 
APPROPRIATELY EQUAL COST AND QUALITY COMPARED TO IMPORTS. 
 
IN ADDITION, THERE ARE NO REQUIREMENTS THAT FOREIGN EQUITY BE REDUCED 
OVER TIME, OR THAT TECHNOLOGY BE TRANSFERRED ACCORDING TO CERTAIN TERMS.   
 
THE GOVERNMENT IMPOSES NO CONDITIONS ON INVESTMENT, SUCH AS REQUIRING 
LOCATION IN SPECIFIC GEOGRAPHICAL AREAS, OR SPECIFYING A REQUIRED 
PERCENTAGE OF LOCAL PARTICIPATION, OR DESIGNATING IMPORT/EXPORT 
REQUIREMENTS OR TARGETS.  THE DR LABOR CODE ESTABLISHES THAT 80 PERCENT 
OF THE LABOR FORCE OF A FOREIGN COMPANY, INCLUDING FREE TRADE ZONE 
COMPANIES, MUST BE COMPOSED OF DR NATIONALS (THE MANAGEMENT STAFF OF A 
FOREIGN COMPANY IS EXEMPT FROM THIS REGULATION). 
 
THE FOREIGN INVESTMENT LAW PROVIDES THAT LICENSING CONTRACTS FOR THE USE 
OF PATENTS OR TRADEMARKS, THE LEASING OF MACHINERY AND EQUIPMENT AND THE 
PROVISION OF TECHNICAL KNOW-HOW, MUST BE SUBMITTED FOR APPROVAL TO THE 
DIRECTORATE OF FOREIGN INVESTMENT.  IN DECIDING WHETHER TO APPROVE THESE 
CONTRACTS, THE DIRECTORATE ASSESSES THE CONTRIBUTION THE ARRANGEMENT 
WILL MAKE TO THE DOMINICAN ECONOMY. 
 
A6)  RIGHT TO PRIVATE OWNERSHIP AND ESTABLISHMENT: 
 
THE RIGHT OF FOREIGN PRIVATE ENTITIES TO ESTABLISH OR OWN BUSINESSES 
AND/OR TO ENGAGE IN REMUNERATIVE ACTIVITIES IS RESTRICTED FROM SPECIFIC 
AREAS, AS REPORTED ABOVE.  PRIVATE DOMESTIC INVESTORS GENERALLY HAVE A 
WIDER RANGE OF POSSIBILITIES THAN DO FOREIGN INVESTORS.  LITTLE PROGRESS 
HAS BEEN MADE TOWARD PRIVATIZATION OF PUBLIC ENTERPRISES. 
 
A7)  PROTECTION OF PROPERTY RIGHTS: 
 
IN ADDITION TO PROBLEMS WITH ENFORCEMENT OF CONTRACTUAL AND PROPERTY 
RIGHTS OUTLINED IN SECTION A4, PROTECTION OF INTELLECTUAL PROPERTY 
RIGHTS IS ALSO DEFICIENT.  DOMINICAN LAW PROVIDES FOR COPYRIGHT 
PROTECTION, BUT THE LAW IS INADEQUATELY ENFORCED. ALTHOUGH THE DOMINICAN 
GOVERNMENT HAS RECENTLY TAKEN SOME STEPS TO HELP REMEDY SHORTCOMINGS IN 
THIS AREA, PROTECTION OF INTELLECTUAL PROPERTY RIGHTS REMAINS 
PROBLEMATIC. 
 
ALL CONTRACTS WITH FOREIGNERS FOR THE USE OF TRADEMARKS, OR FOR THE USE 
OF SPECIALIZED TECHNICAL KNOWLEDGE, MUST BE SUBMITTED TO THE FOREIGN 
INVESTMENT DIRECTORATE FOR REGISTRATION.  THE DIRECTORATE IS PERMITTED 
TO DELAY OR EVEN TO DISAPPROVE THESE CONTRACTS. 
 
A8)  REGULATORY SYSTEM: 
 
DURING THE LAST TWO YEARS, THE GOVERNMENT HAS CARRIED OUT A MAJOR REFORM 
EFFORT AIMED AT IMPROVING THE TRANSPARENCY AND EFFECTIVENESS OF THE LAWS 
AFFECTING COMPETITION.  CUSTOMS REGULATIONS, TAX LAWS AND THE LABOR CODE 
HAVE BEEN REFORMED AND NEW IMPLEMENTING REGULATIONS ARE BEING DEVELOPED.  
BANKING LAWS ARE ALSO BEING REVAMPED.  HOWEVER, AS IN MOST DEVELOPING 
COUNTRIES, RED TAPE AND DIFFERENCES BETWEEN LAW AND ACTUAL PRACTICE 
REMAIN SIGNIFICANT PROBLEMS. 
 
(B)  BILATERAL INVESTMENT AGREEMENTS: 
 
THERE IS NO BILATERAL INVESTMENT AGREEMENT BETWEEN THE DOMINICAN 
REPUBLIC AND THE UNITED STATES.  THE DR HAS A BILATERAL INVESTMENT 
TREATY WITH SPAIN WHICH FALLS FAR SHORT OF WHAT IS USUALLY CONTAINED IN 
U.S. BILATERAL INVESTMENT TREATIES. 
 
(C) OPIC AND OTHER INVESTMENT INSURANCE PROGRAMS: 
 
THE OVERSEAS PRIVATE INVESTMENT CORPORATION IS ACTIVE IN THE DOMINICAN 
REPUBLIC WITH BOTH INSURANCE AND LOAN PROGRAMS. 
 
THE DOMINICAN GOVERNMENT HAS SIGNED THE MULTILATERAL INVESTMENT 
GUARANTEE AGENCY (MIGA) AGREEMENT.  AS YET THE MIGA HAS NOT BEEN 
INVOKED. 
 
(D)  LABOR: 
 
AN AMPLE LABOR SUPPLY IS AVAILABLE, ALTHOUGH THERE IS A SCARCITY OF 
SKILLED WORKERS AND TECHNICAL SUPERVISORS.  MOST U.S. EMPLOYERS HAVE 
FOUND THE LOCAL WORK FORCE COMPETENT, TRAINABLE, AND COOPERATIVE.  
FOREIGN EMPLOYERS ARE NOT SINGLED OUT WHEN LABOR COMPLAINTS ARE MADE.  
ABOUT 12% OF THE NATION'S WORK FORCE IS UNIONIZED.  THE LABOR CODE 
SPECIFIES THAT 20% OR MORE WORKERS IN A COMPANY MAY FORM A UNION.  
BEFORE A UNION MAY ENTER INTO A COLLECTIVE BARGAINING AGREEMENT OR CALL 
A STRIKE, IT MUST HAVE THE APPROVAL OF 51% OF THE COMPANY'S WORKERS.  
THE UNEMPLOYMENT RATE FOR THE DOMINICAN WORK FORCE IS APPROXIMATELY 30%; 
ANOTHER 20% ARE UNDEREMPLOYED.  TOURISM AND THE FREE TRADE ZONES ARE TWO 
IMPORTANT SECTORS IN THE DOMINICAN ECONOMY IN WHICH LOW TECH, LOW WAGE, 
HIGH TURNOVER JOBS PREDOMINATE. 
 
THE DOMINICAN LABOR CODE IS A COMPREHENSIVE PIECE OF LEGISLATION WHICH 
ESTABLISHES POLICIES AND PROCEDURES FOR ASPECTS OF EMPLOYER/EMPLOYEE 
RELATIONSHIPS RANGING FROM MINIMUM WAGE LEVELS, HOURS OF WORK, OVERTIME 
AND VACATION PAY, TO SEVERANCE PAY, CAUSES FOR TERMINATION, AND UNION 
REGISTRATION.  THE LABOR CODE ALSO SPECIFIES THAT 80% OF NON-MANAGEMENT 
WORKERS OF A COMPANY MUST BE DOMINICAN NATIONALS.  THE STANDARD WORKWEEK 
IS 44 HOURS.  MOST JOBS PAY SALARIES AT OR NEAR THE MINIMUM WAGE. 
 
DOMINICAN AND INTERNATIONAL LABOR ORGANIZATIONS HAVE CHARGED THAT THE 
DOMINICAN REPUBLIC DOES NOT ENFORCE COMPLIANCE WITH INTERNATIONALLY 
RECOGNIZED WORKER RIGHTS.  COMPLAINTS HAVE CENTERED ON THE FREE TRADE 
ZONES, WHERE UNIONS HAVE ACCUSED COMPANIES OF FAILING TO RESPECT THE 
RIGHT OF FREEDOM OF ASSOCIATION BY FIRING UNION ORGANIZERS AND WORKERS 
WHO JOIN UNIONS. 
 
THE NEW LABOR CODE, WHICH BECAME LAW IN JUNE, 1992, SIGNIFICANTLY 
STRENGTHENS WORKER RIGHTS CONCERNING FREEDOM OF ASSOCIATION, PROTECTION 
OF UNION OFFICIALS, AND THE RIGHT TO STRIKE. 
 
(E)  FOREIGN-TRADE ZONES/FREE PORTS: 
 
THE DOMINICAN REPUBLIC'S FREE TRADE ZONES ARE REGULATED BY LAW NUMBER 8-
90.  THIS LEGISLATION IS MANAGED BY THE FREE TRADE ZONE NATIONAL COUNCIL 
(CNZF IN ITS SPANISH ACRONYM).  THE CNZF IS JOINT PRIVATE 
SECTOR/GOVERNMENT BODY.  LAW 8-90 
PROVIDES FOR 100% EXEMPTION ON ALL KIND OF TAXES, DUTIES AND CHARGES 
AFFECTING PRODUCTIVE AND TRADE ACTIVITIES IN THE ZONES.  THESE 
INCENTIVES ARE FOR 20 YEARS FOR ZONES LOCATED NEAR THE DR-HAITI BORDER 
AND 15 YEARS FOR ZONES LOCATED IN THE REST OF THE COUNTRY.  THE FREE 
TRADE ZONE NATIONAL COUNCIL HAS DISCRETIONARY AUTHORITY TO EXTEND THE 
TIME LIMITS ON THESE INCENTIVES.  LAW 8-90 IDENTIFIES TWO CATEGORIES OF 
BENEFICIARIES: "OPERATORS," WHO WORK UNDER LICENSE TO PROVIDE FACILITIES 
(ROADS, BUILDINGS, UTILITY SERVICES);  AND "ENTERPRISES," COMPANIES 
WHICH ARE ENGAGED IN THE ACTUAL PRODUCTION OF GOODS AND SERVICES FOR 
EXPORT. 
 
PRIVATE INVESTMENT IS WELCOME FOR FUNDING OPERATORS AND/OR ENTERPRISES.  
HARD CURRENCY FLOWS FROM THE FREE TRADE ZONES ARE HANDLED VIA THE FREE 
FOREIGN EXCHANGE MARKET.  FOREIGN AND DOMINICAN FIRMS ARE AFFORDED THE 
SAME INVESTMENT OPPORTUNITIES (BOTH BY LAW AND IN PRACTICE).  STATISTICS 
AVAILABLE FROM THE FREE TRADE ZONES SHOW THAT TOTAL CUMULATIVE 
INVESTMENT INCREASED FROM US$512 MILLION IN 1990 TO US$631 MILLION IN 
1991.  DURING 1991, THE DOMESTIC CONTRIBUTION WAS 33% OF THE TOTAL 
INVESTMENT;  THE REST WAS FROM ABROAD. MOST OF THE FOREIGN INVESTMENT 
CAME FROM THE U.S. (47%), FOLLOWED BY COMPANIES REGISTERED IN PANAMA AND 
KOREA.  IN GENERAL, FIRMS OPERATING IN THE FREE TRADE ZONES EXPERIENCE 
FAR FEWER BUREAUCRATIC AND LEGAL PROBLEMS THAN DO FIRMS OPERATING 
OUTSIDE THE ZONES. 
 
FOR EXPORTERS/INVESTORS TO SEEK FURTHER INFORMATION WITH THE CNZF, THE  
CONTACT IS AS FOLLOWS: 
 
CONSEJO NACIONAL DE ZONAS FRANCAS 
LEOPOLDO NAVARRO NO. 61 
EDIF. SAN RAFAEL, PISO NO. 5 
SANTO DOMINGO, D.R. 
PHONE: (809) 686-8077 
FAX: (809) 686-8079 AND 688-0236 
CONTACT: ING. ACELIS ANGELES DE GLASS, EXECUTIVE DIRECTOR 
 
(F)  CAPITAL OUTFLOW POLICY: 
 
THE DOMINICAN REPUBLIC HAS NO SPECIFIC POLICY FOR CAPITAL OUTFLOW OR 
OUTBOUND DIRECT INVESTMENT AND THERE ARE NO LAWS PROVIDING INCENTIVES 
FOR INVESTMENT OVERSEAS BY DOMINICANS.  RELATIVELY SMALL INVESTMENTS BY 
DOMINICAN FIRMS OR INDIVIDUALS HAVE BEEN MADE IN THE US. 
 
(G)  MAJOR FOREIGN INVESTORS: 
 
FOLLOWING ARE THE TOP TEN NON-FREE TRADE ZONE COMPANIES REGISTERED AS 
FOREIGN BUSINESSES BY THE CENTRAL BANK OF THE DOMINICAN REPUBLIC AS OF 
APRIL 6, 1995: 
 
1.  COMPANIA DOMINICANA DE TELEFONOS (CODETEL):  THE MAIN TELEPHONE 
SERVICE PROVIDER HAS OPERATED IN THE DR FOR MORE THAN 40 YEARS. 
REGISTERED CAPITAL:  $370 MILLION. 
 
2.  CENTRAL ROMANA CORPORATION (U.S.):  A DIVERSIFIED OPERATION WHICH 
INCLUDES A HOTEL, SUGAR PLANTATIONS, A MILL AND A REAL ESTATE 
BUSINESSES, AMONG OTHER ACTIVITIES. 
REGISTERED CAPITAL: $92 MILLION. 
 
3.  E. LEON JIMENES, C. POR A. (A LOCAL PARTNER OF PHILLIP MORRIS, FROM 
THE U.S.):  THIS COMPANY PRODUCES CIGARETTES, CIGARS AND BEER. 
REGISTERED CAPITAL: $16.5 MILLION. 
 
4.  FALCONBRIDGE DOMINICANA (CANADA):  PROVIDES FERRO NICKEL FOR EXPORT 
MINING IN THE DR. 
REGISTERED CAPITAL: $15 MILLION. 
 
5.  SHELL COMPANY (HOLLAND/ENGLAND):  SHARES OWNERSHIP WITH THE 
DOMINICAN GOVERNMENT OF THE ONLY PETROLEUM REFINERY IN THE COUNTRY (50% 
EACH) AND IS A DISTRIBUTOR OF PETROLEUM BY-PRODUCTS IN THE DR. 
REGISTERED CAPITAL: $14 MILLION. 
 
6.  CITIBANK (U.S.):  THE BANK HAS OPERATED IN THE DR FOR MANY YEARS. 
REGISTERED CAPITAL: $13 MILLION. 
 
7.  ESSO STANDARD OIL (U.S.):  ESSO IS A LONG-TIME DISTRIBUTOR OF 
PETROLEUM BY-PRODUCTS. 
REGISTERED CAPITAL: $11 MILLION. 
 
8.  TEXACO CARIBBEAN (U.S.):  ANOTHER LONG-TIME DISTRIBUTOR OF PETROLEUM 
BY-PRODUCTS.  
REGISTERED CAPITAL: $10 MILLION. 
 
9.  COLGATE PALMOLIVE, INC. (U.S.):  A LEADING MANUFACTURER IN THE DR OF 
SOAPS AND TOOTHPASTE. 
REGISTERED CAPITAL: $9.5 MILLION. 
 
10.  BANK OF NOVA SCOTIA (CANADA):  ONE OF THE OLDEST FOREIGN COMMERCIAL 
BANKS IN THE DR. 
REGISTERED CAPITAL: $8 MILLION. 
 
NOTE: 
- CENTRAL BANK STATISTICS FAIL TO REFLECT THE US$35 MILLION INVESTMENT 
OF THE DOLE COMPANY (U.S.). 
- THE TELEPHONE COMPANY, CODETEL, IS A DOMINICAN CORPORATION, OWNED BY A 
CANADIAN SUBSIDIARY OF GTE (U.S.). 
 
 
 
VIII.  TRADE PROJECT FINANCING 
 
BRIEF DESCRIPTION OF THE BANKING SYSTEM: 
 
THE DOMINICAN FINANCIAL SYSTEM INCLUDES COMMERCIAL BANKS, MORTGAGE 
BANKS, SAVINGS AND LOAN ASSOCIATIONS, AND DEVELOPMENT BANKS.  THE 
CENTRAL BANK REGULATES THE MONEY SUPPLY AND CONTROLS OFFICIAL FOREIGN 
EXCHANGE RESERVES.   
 
NOTE: THERE IS NO DEPOSIT INSURANCE AT DOMINICAN FINANCIAL INSTITUTIONS. 
 
COMMERCIAL BANKS ARE THE MAIN SOURCES OF PRIVATE SECTOR FINANCING.  MOST 
COMMERCIAL LENDING IS IN THE FORM OF SHORT-TERM LINES OF CREDIT; SOME 
MEDIUM AND LONG-TERM FINANCING IS AVAILABLE, PRINCIPALLY FROM CENTRAL 
BANK DEVELOPMENT FUND RESOURCES.  MORTGAGE BANKS TRADITIONALLY HAVE 
PROVIDED MEDIUM AND LONG-TERM LOANS FOR THE CONSTRUCTION AND TOURISM 
SECTORS.  HOWEVER, DUE TO THE UNCERTAIN LENDING ENVIRONMENT, MEDIUM-
TERM, ANNUALLY RENEGOTIATED LOANS ARE MOST COMMON.  THE ONLY SERVICES 
PROVIDED BY SAVINGS AND LOAN ASSOCIATIONS ARE  MEDIUM AND LONG-TERM 
LOANS FOR RESIDENTIAL HOUSING; SAVINGS AND CD DEPOSITS MAY BE ACCEPTED. 
 
DEVELOPMENT BANKS, BOTH PUBLIC AND PRIVATE, OFFER MEDIUM AND LONG TERM 
LOANS TO FINANCE PROJECTS IN PRIORITY SECTORS, INCLUDING AGRICULTURE, 
TOURISM, INDUSTRY, SERVICES, AND TRANSPORTATION.  MOST SHORT-TERM 
FINANCING IS OFFERED THROUGH COMMERCIAL BANKS, NORMALLY IN THE FORM OF 
LINES OF CREDIT.  FINANCE COMPANIES (FINANCIERAS) PROVIDE SHORT AND 
MEDIUM-TERM LOANS TO COMMERCIAL AND INDUSTRIAL SECTORS.  THESE COMPANIES 
PROVIDE LOANS WHEN COMMERCIAL BANKS ARE UNABLE OR RELUCTANT TO DO SO.  
LONG-TERM LENDING IS RESTRICTED TO CENTRAL BANK FUNDS, DEVELOPMENT 
BANKS, MORTGAGE BANKS, AND SAVING AND LOAN ASSOCIATIONS.  FOREIGN 
COMPANIES CANNOT OBTAIN INTERNAL CREDIT FOR A PERIOD GREATER THAN ONE 
YEAR WITHOUT PRIOR APPROVAL FROM THE CENTRAL BANK (LAW 861, ARTICLE 28 
OF JULY 1978).  LAW 861 WHICH REGULATES FOREIGN INVESTMENT IS CURRENTLY 
UNDER REVIEW IN THE DOMINICAN LEGISLATURE. 
 
THE DOMINICAN FINANCIAL SYSTEM IS IN A MODERNIZATION PROCESS PROMPTED BY 
MULTILATERAL ORGANIZATIONS SUCH AS THE WORLD BANK, THE INTERNATIONAL 
MONETARY FUND AND THE INTERAMERICAN DEVELOPMENT BANK.  THIS REFORM SEEKS 
TO UPDATE THE DOMINICAN FINANCIAL STRUCTURE IN ORDER TO HAVE IT FUNCTION 
EFFECTIVELY AND SECURELY.  THE REFORM IS BEING CONSIDERED BY CONGRESS. 
 
ON DECEMBER 11, 1992, THE CENTRAL BANK ISSUED A RESOLUTION DICTATING THE 
PROCEDURAL GUIDELINES AND POLICIES FOR FINANCIAL INSTITUTIONS TO CONVERT 
TO MULTIBANKS.  THE CONCEPT OF MULTIBANK IS TO MERGE THE COMMERCIAL, 
DEVELOPMENT AND MORTGAGE BANKING FUNCTIONS INTO A SINGLE FINANCIAL 
INSTITUTION.  TO DATE, FIVE BANKS HAVE BEEN AUTHORIZED TO OPERATE UNDER 
THOSE TERMS: BANCO BHD, BANCO MERCANTIL, BANCO DEL COMERCIO AND BANCO 
GERENCIAL & FIDUCIARIO.  EIGHT ADDITIONAL BANKS HAVE SUBMITTED PROPOSALS 
AND ARE AWAITING FINAL APPROVAL. 
 
THIS RESTRUCTURING WOULD CONSOLIDATE RESOURCES IN A MORE EFFICIENT WAY 
OFFERING LEASING, FACTORING, INTERNATIONAL SERVICES, PROJECT LOANS AND 
CHECKING ACCOUNTS, AMONG OTHERS, IN A SINGLE OPERATIONAL UNIT.  
 
NOTE:  BECAUSE THE CURRENT SYSTEM IS IN PLACE ONLY BY RESOLUTION,  SOME 
CAUTIOUS BANKS HAVE DELAYED APPLYING FOR MULTIBANK STATUS UNTIL AFTER 
THE NEW LAW IS PASSED. 
 
ANOTHER PROJECT UNDERWAY ATTEMPTS TO MAINTAIN BETTER CONTROL AND 
SUPERVISION OF THE NEW FINANCIAL REGULATIONS. THE PROJECT IS 
RESTRUCTURING AND REVISING THE OPERATIONS OF THE GOVERNMENT OFFICE IN 
CHARGE OF SUPERVISING BANKING OPERATIONS IN THE DOMINICAN REPUBLIC 
(SUPERINTENDENCIA DE BANCOS).  TO DATE SIGNIFICANT IMPROVEMENTS HAVE 
BEEN MADE, BUT MUCH REMAINS TO BE DONE.   
 
FOREIGN EXCHANGE CONTROLS AFFECTING TRADING: 
 
IN JANUARY 1991, THE GOVERNMENT OF THE DOMINICAN REPUBLIC ENACTED A 
FOREIGN EXCHANGE SYSTEM WHEREIN THE PESO WAS ALLOWED TO FLOAT FOR MOST 
TRANSACTIONS ALTHOUGH THE FLOAT IS INFLUENCED BY CENTRAL BANK ACTIVITY.  
EXCEPT FOR A FEW OFFICIAL TRANSACTIONS SUCH AS PETROLEUM IMPORTS, THE 
CENTRAL BANK CEDED OPERATIONAL CONTROL OF FOREIGN EXCHANGE TRANSACTIONS 
TO THE COMMERCIAL BANKS.  AT THE SAME TIME, THE MONETARY BOARD OF THE 
CENTRAL BANK FLOATED THE INTEREST RATE FOR COMMERCIAL LENDING. 
 
GENERAL FINANCING AVAILABILITY: 
 
CURRENT MARKET RATES RANGE BETWEEN 30 AND 36 PERCENT WITH A 22 PERCENT 
RATE FOR PREFERRED CLIENTS.  EVEN THOUGH COMMERCIAL BANKS PRESENTLY 
ENJOY HIGH LIQUIDITY, INTEREST RATES HAVE REMAINED HIGH. 
 
 
 
HOW TO FINANCE EXPORTS/METHODS OF PAYMENT: 
 
THE MOST COMMON FORMS OF PAYMENT ARE LETTERS OF CREDIT, CASH (MOST 
DOMINICAN COMPANIES MAINTAIN DOLLAR ACCOUNTS ABROAD), AND SUPPLIER 
CREDIT WHEN A TRADING RELATIONSHIP HAS BEEN ESTABLISHED. 
 
TYPES OF AVAILABLE EXPORT FINANCING AND INSURANCE: 
 
U.S. EX-IM BANK FINANCING MAY BE AVAILABLE TO THE PRIVATE SECTOR. LOCAL 
FINANCING IS GENERALLY NOT AVAILABLE TO FOREIGN INVESTORS. 
 
PROJECT FINANCING AVAILABLE: 
 
FINANCING IS AVAILABLE FOR SPECIFIC PROJECTS FROM THE INTERAMERICAN 
DEVELOPMENT BANK, THE WORLD BANK, THE OVERSEAS PRIVATE INVESTMENT 
CORPORATION AND SECTION 936 FINANCING FROM PUERTO RICO. 
 
THE INTER-AMERICAN DEVELOPMENT BANK (IDB) PROVIDES FUNDING PRIMARILY TO 
PUBLIC SECTOR ENTITIES FOR THE DESIGN AND EXECUTION OF PROJECTS.  IDB 
PROJECTS AFFORD U.S. SUPPLIERS OF GOODS AND SERVICES SIGNIFICANT EXPORT 
OPPORTUNITIES, MAINLY IN THE TRANSPORTATION, ENVIRONMENT, HEALTH, 
EDUCATION, URBAN DEVELOPMENT, TOURISM, AGRICULTURE AND ENERGY SECTORS. 
 
THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (IBRD), A 
MEMBER OF THE WORLD BANK GROUP, GIVES LONG-TERM LOANS AT MARKET-RELATED 
RATES.  SUCH LOANS ARE GRANTED PRIMARILY TO DEVELOPING NATIONS. 
 
THE INTERNATIONAL DEVELOPMENT AGENCY (IDA), THE SOFT LOAN WINDOW OF THE 
WORLD BANK, LENDS TO THE POOREST OF THE DEVELOPING COUNTRIES.  BOTH THE 
IBRD AND IDA WORK TO PROMOTE BROAD BASED ECONOMIC GROWTH AND OPERATE 
UNDER THE SAME SET OF PROCUREMENT GUIDELINES.  THEIR PROJECTS FREQUENTLY 
FOCUS ON STRUCTURAL ADJUSTMENT, SECTORAL REFORM AND INDIVIDUAL PROJECT 
LENDING.  EACH PROJECT MAY COVER A WIDE VARIETY OF SECTORS AND CAN 
INVOLVE ANYWHERE FROM ONE TO HUNDREDS OF SEPARATE CONTRACTS PROVIDING 
EXPORT BUSINESS OPPORTUNITIES FOR SUPPLIERS WORLDWIDE. 
 
TYPICALLY THE WORLD BANK DOES NOT FINANCE THE ENTIRE COST OF A PROJECT.  
RATHER, IT FINANCES THE COMPONENTS OF A PROJECT PURCHASED WITH FOREIGN 
EXCHANGE, WHICH ON AVERAGE IS ABOUT 40 PERCENT THE TOTAL PROJECT COST.  
 
LIST OF BANKS WITH CORRESPONDENT U.S. BANKING ARRANGEMENTS: 
 
BANCO COMERCIAL BHD, S.A. 
ARQ. JOSE ANTONIO CARO, PRESIDENT 
LUIS F. THOMEN ESQ. WINSTON CHURCHILL 
TORRE BHD 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 541-3232 
FAX:  (809) 566-9569 
 
 
BANCOMERCIO DOMINICANO, S.A. 
JOSE URENA, PRESIDENT 
AVE. 27 DE FEBRERO ESQ. WINSTON CHURCHILL 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 545-5100 
FAX:  (809) 544-1298 
 
BANCO DEL EXTERIOR DOMINICANO, S.A. 
ELIAS F. ATALLAH, PRESIDENT 
AVE. ABRAHAM LINCOLN NO. 756, PIANTINI 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 565-5540 
FAX:  (809) 565-5547 
 
BANCO DE RESERVAS DE LA REPUBLICA DOMINICANA 
LIC. HECTOR VALDEZ ALBIZU, GENERAL ADMINISTRATOR 
ISABEL LA CATOLICA NO. 72 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 688-2241 
FAX:  (809) 685-0602 
 
BANCO GERENCIAL Y FIDUCIARIO DOMINICANO, S.A. 
DR. JESUS ENRIQUE ARMENTEROS, PRESIDENT 
AVE. 27 DE FEBRERO NO. 50, EL VERGEL 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 541-9400  
FAX:  (809) 567-6747 
 
BANCO INTERCONTINENTAL, S.A. 
MR. RAMON BAEZ FIGUEROA, PRESIDENT 
AVE. ABRAHAM LINCOLN, EDIF. ALICO, 1ER PISO 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 535-5500 
FAX:  (809) 532-2474 AND (809) 533-9532 
 
BANCO MERCANTIL, S.A. 
LIC. ANDRES A. AYBAR BAEZ, PRESIDENT 
AVE. BOLIVAR NO. 308 ESQ. JOSE JOAQUIN PEREZ 
GAZCUE 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 221-7151 
FAX:  (809) 688-0608 
 
BANCO METROPOLITANO, S.A. 
AGUSTIN VERDEJAS, PRESIDENT 
AVE. LOPE DE VEGA ESQ. GUSTAVO MEJIA RICART 
EDIF. GOICO CASTRO, ENS. NACO 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 562-4242 
FAX:  (809) 540-1566 
 
 
BANCO NACIONAL DE CREDITO, S.A. 
DR. MAXIMO PELLERANO, PRESIDENT 
JOHN F. KENNEDY ESQ. TIRADENTES 
ENS. NACO 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 540-4441 
FAX:  (809) 567-4698 
 
BANCO POPULAR DOMINICANO 
MANUEL ALEJANDRO GRULLON, PRESIDENT 
AV. JOHN F. KENNEDY NO. 20 
ESQ. MAXIMO GOMEZ, TORRE POPULAR 
11AVO. PISO 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 544-5900 
FAX:  (809) 544-5999 
 
CITIBANK, N.A. 
JUAN DE DIANOUS, GENERAL MANAGER 
AVE. JOHN F. KENNEDY NO. 1 ESQ. SAN MARTIN 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 566-5611 
FAX:  (809) 567-2255 
 
THE BANK OF NOVA SCOTIA 
ARIEL PEREZ, GENERAL VICE PRESIDENT 
IN THE DOM. REP. 
AVE. JOHN F. KENNEDY ESQ. LOPE DE VEGA 
ENS. NACO 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 544-1700 
FAX:  (809) 542-6302 
 
 
IX.  BUSINESS TRAVEL 
 
BUSINESS CUSTOMS: 
 
NORMAL BUSINESS ATTIRE IS THE RULE.  
 
BUSINESS HOURS ARE GENERALLY FROM 8:00 AM - 5:00 PM, MONDAY THROUGH 
FRIDAY.  GOVERNMENT OFFICES WORK FROM 7:30AM -2:30PM, MONDAY THROUGH 
FRIDAY.  SOME COMPANIES WORK SATURDAY MORNINGS.   
 
THE LUNCH HOUR IS FROM 12:00PM - 1:00PM OR 1:00PM - 2:00 PM.  LUNCH 
MEETINGS ARE COMMON, BUT BREAKFAST MEETINGS ARE NOT.  BUSINESS 
APPOINTMENTS ARE GENERALLY REQUIRED, BUT PUNCTUALITY IS NOT A PART OF 
DOMINICAN BUSINESS PRACTICES.   
MOST DOMINICAN BUSINESSPEOPLE SPEAK ENGLISH, BUT COMMUNICATION IN 
SPANISH IS DESIRABLE.   
 
BUSINESS CARDS ARE EXCHANGED. 
 
TRAVEL ADVISORY AND VISAS: 
 
AT THE TIME OF PUBLICATION NO TRAVEL ADVISORIES WERE IN EFFECT. HOWEVER, 
TRAVELLERS SHOULD CALL (202)647-5225 FOR CURRENT ADVISORIES.  VISAS ARE 
AVAILABLE AT ANY DOMINICAN CONSULATE IN THE UNITED STATES OR ITS EMBASSY 
IN WASHINGTON.  VISAS ARE NOT NECESSARY FOR U.S. CITIZENS WHO PURCHASE A 
TOURIST CARD FOR A FEE OF $10.00 AT THE AIRPORT OF DEPARTURE IN THE 
UNITED STATES OR UPON ARRIVAL IN THE DR.  THERE IS ALSO A DEPARTURE TAX 
OF $10.00. 
 
HOLIDAYS 1996: 
 
JANUARY 1     NEW YEAR'S 
JANUARY 6     EPIPHANY'S DAY 
JANUARY 21    OUR LADY OF GRACE 
JANUARY 26    DUARTE'S BIRTHDAY 
FEBRUARY 27   DOM. INDEPENDENCE 
APRIL 5       GOOD FRIDAY 
MAY 1         DOM. LABOR DAY 
MAY 3         CORPUS CHRISTI 
MAY 16        DOM. ELECTION DAY 
AUGUST 16     DOM. RESTORATION DAY 
SEPTEMBER 24  OUR LADY OF THE MERCEDES 
DECEMBER 25   CHRISTMAS DAY 
 
BUSINESS INFRASTRUCTURE: 
SEE UNDER SECTION II. ECONOMIC TRENDS AND OUTLOOK, ITEM ON 
INFRASTRUCTURE SITUATION. 
 
 
     APPENDICES 
 
A.  COUNTRY DATA  
 
1) POPULATION: 7.5 MILLION 
 
2) POPULATION GROWTH RATE: 2.5 PERCENT 
 
3) RELIGION(S): CATHOLIC 
 
4) GOVERNMENT SYSTEM: A REPRESENTATIVE DEMOCRACY.   
 
5) LANGUAGE(S): SPANISH.  ENGLISH IS WIDELY SPOKEN IN THE BUSINESS 
COMMUNITY. 
 
6) WORK WEEK: GOVERNMENT:  MONDAY-FRIDAY, 7:30 AM - 2:30 PM 
              PRIVATE SECTOR:  MONDAY-FRIDAY, 8:00 AM - 5:00 PM 
 
 
B.  DOMESTIC ECONOMY 
                           1994      1995       1996 (E) 
 
1) GDP                    8906.2        N/A          N/A 
2) GDP GROWTH RATE           4.3%       N/A          N/A 
3) GDP PER CAPITA         1158.0        N/A          N/A 
4) GOVERNMENT SPENDING 
   AS A PERCENT OF GDP      18.5%       15%          N/A 
5) INFLATION                12.0%        9%          N/A 
6) UNEMPLOYMENT             30.0%       30%          N/A 
7) FOREIGN EXCHANGE 
   RESERVES                380.0 1/     N/A          N/A      
8) AVERAGE EXCHANGE RATE       
   FOR USD                  1.00      12.5           N/A
9) DEBT SERVICE RATIO          6         6 
10) U.S. ECONOMIC MILITARY/      
    ECONOMIC ASSISTANCE      0.6       0.2 
 
1/ CENTRAL BANK OF THE DOMINICAN REPUBLIC STATISTICS AS OF DECEMBER 31, 
1994. 
 
C.  TRADE 
 
1) TOTAL COUNTRY EXPORT       636.8 1/      764.2      917.0 
2) TOTAL COUNTRY IMPORTS     2219.8 1/     2324.1     2433.3 
3) U.S. EXPORTS TO DR        2799.5 2/     3331.4     3964.5 
4) U.S. IMPORTS FROM DR      3093.9 2/     3582.7     4148.7 
 
1/ CENTRAL BANK OF THE DOMINICAN REPUBLIC STATISTICS.  THESE STATISTICS 
DO NOT INCLUDE FREE TRADE ZONE OPERATIONS. 
 
2/ U.S. DEPARTMENT OF COMMERCE STATISTICS INCLUDE FREE TRADE ZONE 
OPERATIONS. 
 
D.  INVESTMENT STATISTICS 
 
     CUMULATIVE AS OF DECEMBER 1993 
     (US$ MILLIONS) 
     (SOURCE: QUARTERLY BULLETIN, CENTRAL 
     BANK OF THE DOMINICAN REPUBLIC) 
 
MINING     19.9 
FOOD PRODUCTS     101.3 
BEVERAGE AND TOBACCO     16.9 
TEXTILES AND APPAREL     3.5 
CHEMICAL PRODUCTS     85.8 
TRANSPORTATION, COMMUNICATION & WAREHOUSE     370.1 
FINANCE, INSURANCE, REAL ESTATE,  
TRADE SERVICES & TOURISM     105.3 
METAL INDUSTRY (EQUIPMENT & MACHINERY)     21.4      
COMMERCE     46.8 
OTHER SERVICES     1.3 
 
TOTAL     772.3 
 
     FOREIGN INVESTMENT BY COUNTRY OF ORIGIN 
     CUMULATIVE AS OF  
(US$ MILLION) 
 
UNITED STATES OF AMERICA     213.01      
CANADA     411.62 
GREAT BRITAIN     22.11 
HOLLAND     17.95 
PANAMA     16.44      
SPAIN     10.53 
SWITZERLAND     7.26 
ITALY     6.06      
FRANCE     4.69      
GERMANY     2.83      
OTHERS     7.38 
 
TOTAL     719.89 
 
 
DURING THE LAST FEW YEARS NON-FREE TRADE ZONE FOREIGN INVESTMENT HAS 
GROWN MODERATELY.  FOR 1987, OFFICIAL DATA 
REPORTED TOTAL NON-FREE TRADE ZONE FOREIGN INVESTMENT OF US$458 MILLION.  
IN 1991, IT ROSE TO US$606 MILLION.  MOST OF THIS INVESTMENT IS IN THE 
TELECOMMUNICATIONS AND FOOD INDUSTRIES.  THE ABOVE TABLE SHOWS THE 
SOURCES OF NON-FREE TRADE ZONE FOREIGN INVESTMENT. 
 
DATA ON THE DOMINICAN REPUBLIC FROM U.S. DEPARTMENT OF COMMERCE, BUREAU 
OF ECONOMIC ANALYSIS SURVEY OF U.S. DIRECT INVESTMENT POSITION ABROAD 
(HISTORICAL COST BASIS): $1,020 MILLION IN 1993, UP FROM $779 MILLION IN 
1992, $661 MILLION IN 1991 AND $529 MILLION IN 1990. 
 
E.  U.S. AND COUNTRY CONTACTS 
 
U.S. EMBASSY TRADE RELATED CONTACTS: 
 
U.S. DEPT. OF COMMERCE/FOREIGN COMMERCIAL SERVICE 
ROBERT BUCALO, REGIONAL COMMERCIAL COUNSELOR  
U.S. EMBASSY 
CESAR NICOLAS PENSON WITH LEOPOLDO NAVARRO 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 221-2171 EXT. 356 AND 221-5328 
FAX:  (809) 688-4838 
 
U.S. DEPT. OF AGRICULTURE/FOREIGN AGRICULTURAL SERVICE 
SUSAN SCHAYES, AGRICULTURAL ATTACHE  
U.S. EMBASSY 
CESAR NICOLAS PENSON WITH LEOPOLDO NAVARRO 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 688-8090 
FAX:  (809) 685-4743 
 
 
COUNTRY GOVERNMENT OFFICES RELATING TO KEY SECTORS AND/OR SIGNIFICANT 
TRADE RELATED ACTIVITIES, E.G., CUSTOMS: 
 
SECRETARIA DE ESTADO DE INDUSTRIA Y COMERCIO 
LIC. JOSE RAMON GONZALEZ PEREZ, SECRETARY FOR INDUSTRY AND COMMERCE 
AVE. MEXICO 
EDIFICIO GUBERNAMENTAL 
JUAN PABLO DUARTE, PISO 7 
SANTO DOMINGO, DOM. REP. 
PHONE:  (809) 688-2449 AND 685-5171 
FAX:  (809) 686-1973 
(SECRETARIAT OF STATE FOR INDUSTRY AND COMMERCE) 
 
SECRETARIA DE ESTADO DE AGRICULTURA 
LIC. LUIS TORAL CORDOBA, SECRETARY OF STATE FOR AGRICULTURE 
KILOMETRO 6 1/2 
AUTOPISTA DUARTE 
JARDINES DEL NORTE 
SANTO DOMINGO, DOM. REP. 
PHONE: (809) 547-3888 
FAX: (809) 227-1186 
(SECRETARIAT OF STATE FOR AGRICULTURE) 
 
INSTITUTO DE ESTABILIZACION DE PRECIOS (INESPRE) 
GENERAL LEONCIO GARCIA GARCIA, EXECUTIVE DIRECTOR 
PLAZA INDEPENDENCIA 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 530-0871 
FAX:  (809) 530-0343 
(PRICE STABILIZATION INSTITUTE) 
 
CORPORACION DE EMPRESAS ESTATALES 
ING. PEDRO BRETON, GENERAL DIRECTOR 
AVE. ANTONIO DUVERGE 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 535-4291 
FAX:  (809) 533-5522 
(CORPORATION OF GOVERNMENT OWNED ENTERPRISES) 
 
INSTITUTO AZUCARERO DOMINICANO 
LIC. FEDERICO ECHENIQUE, GENERAL DIRECTOR 
JIMENEZ MOYA 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 532-9226 
FAX:  (809) 533-2402 
(DOMINICAN SUGAR INSTITUTE) 
 
PATRONATO NACIONAL DE GANADEROS 
MIGUEL ENEAS SAVINON, PRESIDENT 
CIUDAD GANADERA 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 535-7165 
FAX:  (809) 535-7167 
(NATIONAL LIVESTOCK PATRONAGE) 
 
INSTITUTO INTERAMERICANO DE CIENCIAS AGRICOLAS (IICA) 
LAWRENCE BOONE, REPRESENTATIVE 
FRAY CIPRIANO DE UTRERA ESQ. REPUBLICA DEL LIBANO 
CENTRO DE LOS HEROES 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 533-2797 
FAX:  (809) 532-5312 
(INTERAMERICAN INSTITUTE FOR AGRICULTURAL SCIENCES) 
 
BANCO AGRICOLA 
LIC. ADRIANO SANCHEZ ROA, ADMINISTRATOR 
AVE. INDEPENDENCIA 
SANTO DOMINGO, DOM. REP. 
(GODR DEVELOPMENT BANK) 
 
TELEPHONE:  (809) 535-8088 
FAX:  (809) 532-4645 
 
BANCO CENTRAL DE LA REPUBLICA DOMINICANA 
LIC. HECTOR VALDEZ ALBIZO, GOVERNOR 
LEOPOLDO NAVARRO 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 221-9111 
FAX:  (809) 686-7488 
(GODR CENTRAL BANK) 
 
 
 
CHAMBERS OF COMMERCE: 
 
CAMARA DE COMERCIO Y PRODUCCION DEL DISTRITO NACIONAL 
LIC. MILAGROS PUELLO, EXECUTIVE DIRECTOR 
ARZOBISPO NOUEL NO. 206 
SANTO DOMINGO, DOM. REP. 
PHONE:  (809) 682-2688 
FAX:  (809) 685-2228 
(SANTO DOMINGO CHAMBER OF COMMERCE) 
 
CAMARA AMERICANA DE COMERCIO DE LA REPUBLICA DOMINICANA 
ARTURO VALDEZ, EXECUTIVE VICE PRESIDENT 
AVE. WINSTON CHURCHILL ESQ. LUIS F. THOMEN 
TORRE BHD, 4TO. PISO 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 544-2222 
FAX:  (809) 544-0502 
(AMERICAN CHAMBER OF COMMERCE OF THE D.R.) 
 
COUNTRY TRADE ASSOCIATIONS OR INDUSTRY ASSOCIATIONS IN KEY SECTORS: 
 
JUNTA AGROEMPRESARIAL DOMINICANA (JAD) 
ING. OSMAR BENITEZ, EXECUTIVE VICE PRESIDENT 
EUCLIDES DE MORILLO NO. 51, ARROYO HONDO 
SANTO DOMINGO, DOM. REP.  
TELEPHONE:  (809) 563-6178 
FAX:  (809) 563-6181 
(DOMINICAN AGRIBUSINESS COUNCIL) 
 
ASOCIACION NACIONAL DE IMPORTADORES 
DR. ANDRES DAUHAJRE, SR., PRESIDENT 
ROBERTO PASTORIZA NO. 16 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 562-6909 
FAX:  (809) 541-2574 
(DOMINICAN IMPORTERS' ASSOCIATION) 
 
ASOCIACION DOMINICANA DE EXPORTADORES (ADOEXPO) 
LUIS RAFAEL PELLERANO, PRESIDENT 
WINSTON CHURCHILL NO. 5 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 532-6779 
FAX:  (809) 532-1926 
(DOMINICAN EXPORTERS' ASSOCIATION) 
 
ASOCIACION DE INDUSTRIAS DE LA REP. DOM. 
CELSO MARRANZINI, PRESIDENT 
APARTADO 850 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 532-5523 
FAX:  (809) 533-7520 
(ASSOCIATION OF INDUSTRIES OF THE D.R.) 
 
CONSEJO NACIONAL DE HOMBRES DE EMPRESAS 
LIC. JOSE MANUEL PALIZA, PRESIDENT 
AVE. ABRAHAM LINCOLN ESQ. JOHN F. KENNEDY 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 562-1666 
FAX:  (809) 544-1280 
(DOMINICAN BUSINESSMEN COUNCIL) 
 
FUNDACION DOMINICANA DE DESARROLLO 
DR. EDUARDO LA TORRE, EXECUTIVE DIRECTOR 
MERCEDES NO. 4, ZONA COLONIAL 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 688-8101 
FAX:  (809) 686-0430 
(DOMINICAN DEVELOPMENT FOUNDATION) 
 
FUNDACION DE DESARROLLO AGROPECUARIO, INC. (FDA) 
LIC. ALTAGRACIA RIVERA DE CASTILLO, EXECUTIVE DIRECTOR 
JOSE A. SOLER 50 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 544-0616 
FAX:  (809) 544-4727 
(AGRICULTURAL AND LIVESTOCK DEVELOPMENT FOUNDATION) 
 
COUNTRY MARKET RESEARCH FIRMS: 
 
ECOCARIBE, S.A. 
MANUEL COCCO, PRESIDENT 
AV. JOHN F. KENNEDY ESQ. LOPE DE VEGA 
EDIF. SCOTIABANK  
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 541-1090 
FAX:  (809) 567-7661 
 
TECNOAMERICA, S.A. 
PEDRO DELGADO MALAGON, PRESIDENT 
JOSE CONTRERAS NO. 34 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 686-6559 
FAX:  (809) 686-6559 
 
ASESORES ASOCIADOS, S.A. 
LIC. JOSE TABOADA GONZALEZ 
TETELO VARGAS NO. 23, ENS. NACO 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 566-8926 
FAX:  (809) 541-3262 
 
CODEINSA 
MR. MIGUEL GUZMAN, PRESIDENT 
CAYETANO RODRIGUEZ NO. 257, GAZCUE 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 689-6175 
FAX:  (809) 682-9254 
 
ORIENTACION MERCADOLOGICA, S.A. 
LIC. ALDO CONDE, DIRECTOR 
ENRIQUE HENRIQUEZ NO. 67, 3RD FLOOR 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 686-4252 AND 686-4243 
 
PROINVERSION 
MR. RAFAEL BLANCO CANTO 
AVE. TIRADENTES WITH GUSTAVO MEJIA RICART 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 562-7666 AND 562-6212 
 
SISTEMAS MERCADOLOGICOS, S.A. 
MR. GUILLERMO ASENCIO CHEVALIER, PRESIDENT 
AVE. ROMULO BETANCOURT NO. 1302 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 532-5769 
FAX:  (809) 532-0723 
 
READ AND ASSOCIATES 
LIC. AVELINA READ, PRESIDENT 
SAN MARTIN DE PORRES NO. 8-B, NACO 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 566-4157 
FAX:  (809) 562-4321 
 
MARKET PROBE 
HEIDY KORNER, PRESIDENT 
AV. BOLIVAR ESQ. CHURCHILL 
EDIFICIO BIENVENIDA, 2ND FLOOR 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 535-0280 
FAX:  (809) 535-0250 
 
MERCADESA 
RAFAEL ACEVEDO PEREZ, PRESIDENT 
WINSTON CHURCHILL ESQ. CHARLES SUMMER 
EDIF. PLAZA PARAISO, APT. 201 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 567-5321/567-5323 
FAX:  (809) 544-2503 
 
COUNTRY COMMERCIAL BANKS: 
 
CITIBANK, N.A. 
JUAN DE DIANOUS, GENERAL MANAGER 
AVE. JOHN F. KENNEDY NO. 1 ESQ. SAN MARTIN 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 566-5611 
FAX:  (809) 567-2255 
 
THE BANK OF NOVA SCOTIA 
ARIEL PEREZ, GENERAL VICE PRESIDENT 
IN THE DOM. REP. 
AVE. JOHN F. KENNEDY ESQ. LOPE DE VEGA 
ENS. NACO 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 544-1700 
FAX:  (809) 542-6302 
 
BANCO COMERCIAL BHD, S.A. 
ARQ. JOSE ANTONIO CARO, PRESIDENT 
LUIS F. THOMEN ESQ. WINSTON CHURCHILL 
TORRE BHD 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 541-3232 
FAX:  (809) 566-9569 
 
BANCO DEL COMERCIO DOMINICANO, S.A. 
JOSE URENA, PRESIDENT 
AVE. 27 DE FEBRERO ESQ. WINSTON CHURCHILL 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 545-5100 
FAX:  (809) 544-1298 
 
BANCO DEL EXTERIOR DOMINICANO, S.A. 
ELIAS F. ATALLAH, PRESIDENT 
AVE. ABRAHAM LINCOLN NO. 756, PIANTINI 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 565-5540 
FAX:  (809) 565-5547 
 
BANCO DE RESERVAS DE LA REPUBLICA DOMINICANA 
LIC. HECTOR VALDEZ ALBIZU, GENERAL ADMINISTRATOR 
ISABEL LA CATOLICA NO. 72 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 688-2241 
FAX:  (809) 685-0602 
 
BANCO DOMINICANO DEL PROGRESO, S.A. 
TOMAS PASTORIZA, PRESIDENT 
AVE. JOHN F. KENNEDY NO. 3, MIRAFLORES 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 563-3233 
FAX:  (809) 563-2455 
 
BANCO GERENCIAL Y FIDUCIARIO DOMINICANO, S.A. 
DR. JESUS ENRIQUE ARMENTEROS, PRESIDENT 
AVE. 27 DE FEBRERO NO. 50, EL VERGEL 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 541-9400  
FAX:  (809) 567-6747 
 
BANCO INTERCONTINENTAL, S.A. 
MR. RAMON BAEX FIGUEROA, PRESIDENT 
AVE. ABRAHAM LINCOLN, EDIF. ALICO, 1ER PISO 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 535-5500 
FAX:  (809) 532-2474 AND (809) 533-9532 
 
BANCO MERCANTIL, S.A. 
LIC. ANDRES A. AYBAR BAEZ, PRESIDENT 
AVENIDA ROBERTO PASTORIZA 303 
GAZCUE 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 221-7151 
FAX:  (809) 688-0608 
 
BANCO METROPOLITANO, S.A. 
AGUSTIN VERDEJAS, PRESIDENT 
AVE. LOPE DE VEGA ESQ. GUSTAVO MEJIA RICART 
EDIF. GOICO CASTRO, ENS. NACO 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 562-4242 
FAX:  (809) 540-1566 
 
BANCO NACIONAL DE CREDITO, S.A. 
DR. MAXIMO PELLERANO, PRESIDENT 
JOHN F. KENNEDY ESQ. TIRADENTES 
ENS. NACO 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 540-4441 
FAX:  (809) 567-4698 
 
BANCO POPULAR DOMINICANO 
MANUEL ALEJANDRO GRULLON, PRESIDENT 
AV. JOHN F. KENNEDY NO. 20 
ESQ. MAXIMO GOMEZ, TORRE POPULAR 
11AVO. PISO 
SANTO DOMINGO, DOM. REP. 
TELEPHONE:  (809) 544-5900 
FAX:  (809) 544-5999 
 
MULTILATERAL DEVELOPMENT BANK OFFICES IN COUNTRY: 
 
U.S. TRADE RELATED OFFICES: 
 
MULTILATERAL DEVELOPMENT BANK OFFICE 
BRENDA EBELING, DIRECTOR 
14TH AND CONSTITUTION, NW 
WASHINGTON, DC 20007 
TELEPHONE: (202) 482-3399 
FAX: (202) 482-5179 
 
TPCC TRADE INFORMATION CENTER NUMBER IN WASHINGTON: 1-800-USA-TRADE 
 
US DEPARTMENT OF AGRICULTURE 
FOREIGN AGRICULTURAL SERVICE 
TRADE ASSISTANCE AND PROMOTION OFFICE 
TELEPHONE: (202) 720-7420 
 
F. MARKET RESEARCH REPORTS  
 
I.  INDUSTRY SUBSECTOR ANALYSES OF FY '95 
 
ISA ON ANTIBIOTICS AND OVER THE COUNTER DRUGS  
ISA ON SURGICAL APPLIANCES AND SUPPLIES   
ISA ON FOOD PROCESSING EQUIPMENT AND PARTS  
ISA ON RESTAURANT EQUIPMENT  
ISA ON AUTOMOTIVE ACCESSORIES 
ISA ON AIR CONDITIONERS & PARTS 
ISA ON ELECTRICAL APPARATUS 
ISA ON PASSENGER CARS 
ISA ON SOUND & TELEVISION EQUIPMENT 
 
II.  PROPOSED LIST OF INDUSTRY SUBSECTOR ANALYSES FOR FY '96 
 
ISA ON TELEPHONE SETS AND MISCELLANEOUS TELECOMMUNICATIONS EQUIPMENT 
ISA ON VANS AND LIGHT TRUCKS 
ISA ON REFRIGERATION EQUIPMENT & PARTS 
ISA ON SURGICAL/MEDICAL INSTRUMENTS 
ISA ON HOUSEHOLD APPLIANCES 
ISA ON ELECTRIC TRANSFORMERS & SWITCHES 
ISA ON AUTOMOTIVE SPARE PARTS & SERVICE EQUIPMENT 
ISA ON FOOD PACKAGING EQUIPMENT & PARTS 
ISA ON INDUSTRIAL SEWING MACHINES & PRESSES 
 
III. AGRICULTURAL INDUSTRY SECTOR ANALYSES FOR FY '95 AND FY '96 
 
AGRICULTURAL SITUATION REPORT 
OILSEED AND PRODUCTS ANNUAL 
SUGAR ANNUAL  
TOBACCO ANNUAL 
LIVESTOCK ANNUAL 
COCOA ANNUAL 
 
 
NOTE: A COMPLETE LIST OF MARKET RESEARCH IS AVAILABLE ON THE NTDB 
 
G.  TRADE EVENT SCHEDULE 
 
1995 
NOVEMBER 8-9   REP-FIND '95      
               SANTO DOMINGO, D.R. 
               HORIZONTAL SHOW 
               U.S. PARTICIPANTS WILL BE RECRUITED AT POST 
 
1996 
MAY     MEDICAL & HEALTHCARE CATALOG SHOW 
        SANTO DOMINGO, D.R. 
        U.S. PARTICIPANTS WILL BE RECRUITED BY USDOC 
 
MAY  CONSUMER GOODS USA 
     SANTO DOMINGO, D.R. 
     U.S. PARTICIPANTS WILL BE RECRUITED BY USDOC 
 
JUNE           EXPO USA '96 
               SANTO DOMINGO, D.R. 
               HORIZONTAL SHOW 
               U.S. PARTICIPANTS WILL BE RECRUITED AT POST 
 
NOTE:  TRADE EVENT SCHEDULES MAY CHANGE, U.S. FIRMS SHOULD CONSULT THE 
EXPORT PROMOTION CALENDAR ON THE NTDB OR CONTACT THE POST FOR THE LATEST 
INFORMATION. 
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