Official says investors know of DR-Cafta trade deal’s guarantees

Santo Domingo.- Since last year foreign investors have filed complaints on issues as diverse as electrical distribution, expropriation and public works concessions, taking advantage of the legal guarantees established in the DR-Cafta trade deal, said the Minister of Industry and Commerce.

Jose Ramon Fadul said Thursday that the DR-Cafta has allowed foreign investors to become aware that the agreement provides them with rights and mechanisms to protect their investments.

“Therefore the priority of the agency in charge is to continue encouraging the adoption of the bill for a Law on Commercial Arbitration,” he said.

http://www.dominicantoday.com

Dominican high court ruling protects Bahia de las Aguilas

SANTO DOMINGO.- The Supreme Court upheld the Superior Land Court’s jurisdiction to hear the case of the hundreds of kilometers of registered lands expropriated in Bahia de las Aguilas beach, located in the southwest municipalities Enriquillo and Pedernales, a ruling that bolster it’s status as a protected area.

The high Court rejected the appeals filed by Jose Luis Guzmán Bencosme, Gilberto Jose, Miguel Nelson Fernandez Mancebo, Mantenimientos y Servicios Fernández, C. por A., Aquilino Antonio Méndez, Manuel Carvajal, Antonio Felix Perez and Manuel Carvajal, against the Superior Territories Court sentence of April 22, 2005.

The land-grab scandal of Bahia de las Aguilas, part of Jaragua National Park, began in the early 1990s when officials in the Administration of Joaquin Balaguer forged land deeds to take over nearly 15 kilometers of pristine beaches.

http://www.dominicantoday.com

Dominican Republic Renewable Resources Law Regulations Passed

President Leonel Fernandez recently enacted the much awaited Renewable Energy Bill No. 57-07 regulations. According to the local press, more than RD$3 billion pesos will soon be invested in the renewable energy market of the Dominican Republicwho attracted by incentives such as:

1- 100% exemption on import taxes for equipment and machinery to be used for renewable energy production.

2- 100% exemption on the value-added tax (ITBIS).

3- 100% exemption on income tax for ten years.

4- Reduction to 5% of the tax on foreign financed interest payments.

If you are interested in knowing more about how your company might benefit by investing in renewable energies in the Dominican republic please contact us at info@drlawyer.com or visit our website www.drlawyer.com

Dominican Customs Removes Tax

The Customs Department has removed the 10% tax of the value of the Cost, Insurance and Freight (CIF) on reshipments because the tax is illegal under the terms of the DR-CAFTA trade agreement. Listin Diario explains that the tax was contrary to article 3.8 on import and export restrictions, found in chapter 3 on National Market Access.

Dominican Visa Requirements Waived for Citizens of Several Countries.

Foreigners with up-to-date passports and visas issued by the European Union, the US, UK or Canada, as well as nationals from the countries listed below will have their Dominican Visa requirements waived and will be allowed to enter the country only by purchasing a tourist card at their port of entry.

Andorra, Bahrain, Belize, Botswana, Brunei, Cyprus, United Arab Emirates, Estonia, Fiji, Grenada, Guyana, Iceland, the North Marianas Islands, Marshall Islands, Solomon Islands, Kazakhstan, Kiribati, Kuwait, Latvia, Liechtenstein, Lithuania, Micronesia, Malaysia, Malta, Mauritius, Namibia, Nauru, Qatar, South Africa, Romania, Samoa, Seychelles, Singapore, Thailand, Tonga, Turkey, Tuvalu and Vanuatu.

European Union-Caribbean Economic Parnership Agreement reached

The Dominican Republic will benefit from aspects of regional preference that were introduced in the European Partnership Agreement between the European Union and Caricom and the Dominican Republic completed on 16 December 2007, in time for the 1 January 2008 implementation date. According to Ivan Ogando at the Ministry of Foreign Relations, the EPA will also facilitate the export of Dominican products to Caricom countries, far beyond what the FTA with Caricom had accomplished. The new agreement replaces the Cotonou Agreement that expires at the end of this year.

Ambassador Richard Bernal, chief negotiator for the Caribbean, described the EPA as historic in terms of content and precedent:"It will promote and deepen the economic ties between the two longest running integration processes in the world. It will enhance our trade in goods because the European Union is providing duty-free, quota-free access and we are liberalizing access to our market," he told a media conference on Sunday.

Interestingly, the agreement includes a provision that gives citizens of the Caribbean access to Europe's entertainment services market, for instance. This will allow musical performers and artistes to move into Europe to present their talent and to seize business opportunities. This is a novelty that was very difficult to achieve," said Deputy Director General for Trade of the EU Commission, Karl Falkenberg, who signed the document for the EU, told CANANews. The Caribbean Regional Negotiations Machinery office says that while the culmination of this negotiation process has come later than previously scheduled, CARIFORUM countries, by completing the EPA before the end of the year, have ensured that their product exports to the EU will not have to face Generalized System of Preferences (GSP) treatment or face Most Favored Nation (MFN) duties in 2008. As of 1 January 2008, with a temporary exception for rice and sugar, all CARIFORUM goods will be entitled to duty-free and quota-free access to the European Union. Importantly, CARIFORUM is the first group within the ACP to clinch a comprehensive agreement that covers not just goods but services, investment, and trade related issues such as innovation and intellectual property.

The major elements of the agreement concluded between the European Community and Cariforum countries are as follows:

1. Cariforum liberalizing 86.9% with 82.7% within the first 15 years. The agreement will result in the liberalization of 92% of Cariforum-EC trade;

2. A general moratorium of three years on all tariff lines except motor vehicles and parts and gasoline that will benefit from a 10-year grace period;

3. Other duties and charges are to be maintained during the first seven years and then phased out in years 8, 9 and 10.

4. In addition to the SP quotas, a transitional TRQ of 60,000 tonnes split evenly between CARIFORUM SP members and the Dominican Republic. In addition, a joint commitment to ensure that shortfalls of any CARIFORUM SP member will be reallocated to another CARIFORUM SP member;

5. Award of MFN treatment to major trading partner defined as countries garnering 1% and 1.5% of world merchandise exports and services.

6. In services, CARIFORUM LDCs and MDCs have committed to 65 and 75% respective sectorial coverage with a standstill clause and provisions for future liberalization. BAH and HAI will submit their respective liberalization schedules in six months;

7. CARIFORUM CSS in entertainment services will enjoy access without any restrictions in all EU Member States with the exception of Austria and Germany;

8. Joint Declarations on Development Cooperation, Bananas, Sugar Allocation and Traditional Agricultural Products; The JD on Development Cooperation includes a commitment to channel EPA support through the CARICOM Development Fund.

9. Regional preference to be awarded one, two and five years in the case of CARIFORUM MDCs, LDCs and Haiti, respectively.

10. The Trade Partnership for Sustainable Development (Development Chapter) includes support for infrastructure while the preamble of the Agreement states that full account should be taken of the CARICOM Development Vision.

Source: www.dr1.com

Dell Ordered to Pay US$3.6 Million for Breach of Contract

According to Dominican media reports, a Santo Domingo court sentenced the local Dell, Inc. subsidiary to pay RD$116.5 million (approximately US$3.6 million) in indemnification to Dominican information technology firm Xolutiva, S.A. The Dominican company sued Dell for RD$300 million for violating its rights as the Dell’s local representative. The Civil and Commercial Chamber ruled against Dell for violating Law 173 on International Representations, holding that Xolutiva represented Dell in the country since 1997, but Dell unilaterally decided not to renew the contract without due compensation. The court ordered Dell to close its operations in the Dominican Republic.