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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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