WORLD TRADE ORGANIZATION
ORGANISATION MONDIALE DU COMMERCE
ORGANIZACIÓN MUNDIAL DEL COMERCIOWT/TPR/M/105/Add.1
22 January 2003
(03-0348)
Trade Policy Review Body
7 and 9 October 2002Original: English/
               anglais/
               inglés
TRADE POLICY REVIEW
DOMINICAN REPUBLIC
Minutes of Meeting
Addendum
Chairperson:  H.E. Ms Amina Chawahir Mohamed (Kenya)
This document contains the advance written questions, and replies provided by the Dominican
Republic.1
__________________________________________________________________________________
Organe d'examen des politiques commerciales
7 et 9 Octobre 2002
EXAMEN DES POLITIQUES COMMERCIALES
LA RÉPUBLIQUE DOMINICAINE
Compte rendu de la réunion
Addendum
Président:  S.E.  Mme Amina Chawahir Mohamed (Kenya)
Le présent document contient les questions écrites communiquées à l'avance et les réponses
fournies par la Republique Dominicaine.1
__________________________________________________________________________________
Órgano de Examen de las Políticas Comerciales
7 y 9 de octubre de 2002
EXAMEN DE LAS POLÍTICAS COMERCIALES
LA REPÚBLICA DOMINICANA
Acta de la reunión
Addendum
Presidente:  Excma. Sra. Ami na Chawahir Mohamed (Kenya)
En el presente documento figuran las preguntas presentadas anticipadamente por escrito,
junto con las respuestas facilitadas por la República Dominicana.1
                                                     
1 In English only./En anglais seulement./En inglés solamente.WT/TPR/M/105/Add.1
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ADVANCE WRITTEN QUESTIONS BY MEMBERS AND REPLIES PROVIDED BY THE
DOMINICAN REPUBLIC
I. ECONOMIC ENVIRONMENT (UNITED STATES)
1. Has the foreign exchange fee affecting the value of imports (Secretariat's report, part I,
paragraph 12) been eliminated?  If not, when will it be eliminated?
2. During 1999, the commission of 1.75% applied to foreign exchange transactions by resolution
of the Monetary Board was increased to 5.0% due to the fall in income generated by the differentialon fuel prices to pay the public external debt.  In 2001, the commission was reduced to 4.75%, and a
programme for its phased reduction is required under the draft Monetary and Finance Law.
II. CONSULAR INVOICE (CHINESE TAIPEI, REPUBLIC OF KOREA, BRAZIL)
3. The Dominican Republic requires that the impo rt customs declaration must be accompanied
by a consular invoice.  Please clarify if a consular invoice is required for all imports and explain thepurpose of such requirement.
4. Not all foreign transactions require a consular invoice.  For example, it is not required for
FTAs with Central America and CARICOM, free zones, express despatches up to a value of
US$2,000, international purchases and sales by electronic means up to that value.
5. On 30 August 2000, Presidential Decree No. 661-00 declared the abolition of consular
invoices to be very much in the national interest.  The Decree also established an inter-institutional
commission chaired by the Legal Adviser to the Ministry of Foreign Relations, the Ministry of
Finance and the Directorate-General of Customs, for the purpose of preparing a preliminary draft law
on the abolition of consular invoices which is at present being examined by the Special Committee
appointed by the Chamber of Deputies.
6. In addition, consular invoices are not required under the preliminary draft Customs Law,
which repeals the Customs Regulations Law, No. 3489 of 14 February 1953.
III. INTELLECTUAL PROPERTY RIGHTS (CHINESE TAIPEI, COSTA RICA,
UNITED STATES)
7. We understand that the Dominican Republic has adopted new legislation to enhance the
protection of intellectual property rights.  Please indicate whether the Dominican Republic is
adopting any measures to strengthen its IPR enforcement.
8. The Dominican Republic has indeed aligned its legislation with international agreements on
protection of intellectual property, especially the Agreement on Trade-Related Aspects of Intellectual
Property (TRIPS), for which new rules have been introduced, for more effective application notably:
- Decree 362-01 of 14 March 2001, which regulates the application of Law 65-00 on Copyright
and Related Rights and contains new provisions enabling the National Copyright Office toperform more effectively its supervisory and inspection functions with respect to activities
which may give rise to copyright and related rights.
- Decree 599-01 of 15 June 2001, which regulates the application of the Industrial Property
Law, No. 20-00 (which repeals Decree No. 408 of 11 August 2000).WT/TPR/M/105/Add.1
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- Decree 303-01, which established the National Commission for the Protection of Intellectual
Property Rights, in order to coordinate national policy on preventing infringement ofintellectual property laws.  One of the chief results of the work of this Commission was
the creation of an intellectual property department in the Attorney-General's Office, which
coordinates the work of the Public Prosecutor's Office at the national level.
9. With respect to compliance, it should be note d that the National Copyright Office signed an
agreement with the Dominican Telecommunications  Institute (INDOTEL) to underta ke joint actions
to ensure respect for copyright by broadcasting bodies such as television, including cable television.
In addition, in collaboration with the Intellectual  Property Department in the Attorney-General's
Office, both the National Copyright Office and the National Industrial Property Office have carried
out inspections and anti-piracy operations, seizure of illicit material, seizure of computers using
unlicensed software, illicit videograms and phonograms, parabolic antennae and copies of workspublished without the author's permission.
10. In June 2001, Dominican legislation was reviewed by the TRIPS Council, in response to the
questions raised by all the Members and the WTO enforcement questionnaire, and figures were given
for the number of inspections and anti-piracy operations carried out by the Dominican authorities up
to the date of that review.
IV. MARITIME TRANSPORT (CHINESE TAIPEI)
11. Lines 1 and 2 of paragraph 120 indicate that maritime cabotage as well as pushing and
towing services may be provided only by Dominican enterprises.  It seems that foreigners are not
allowed to provide these services.  However, in lines 3 and 4 of the same paragraph it says that the
Dominican Republic's GATS commitments provide for national treatment in modes 1, 2 and 3 on
maritime cabotage, pushing and towing services.  There is a contradiction here.  Please clarify this in
consistency.
12. The Dominican Republic does not  have any WTO commitments in this sector, since it
withdrew its offer under the Uruguay Round due to  the breakdown of negotiations in 1996 (see WTO
Secretariat Note No.S/L/27 of 30 July 1996).  However, it is important to note that Dominican
maritime legislation allows foreign ships to register temporarily, for a period of  six months, with the
Harbourmaster's Office, a department of the Dominican Navy (which acts as the maritime policeauthority), simply on presentation of a fiscal bond for the temporary admission of the maritime vessel,
which is returned as soon as the temporary registration expires.
V. TARIFF STRUCTURE (COSTA RICA, EUROPEAN UNION, JAPAN, BRAZIL)
13. Is the government aware of a proposed law to in crease import duties of a number of products,
including spirits, from 20 to 40% as "compensatio n" for ISC equalization at 35% and, if so, as this
might not be seen as a positive step in future tr ade relations by the EU, what is the government's
position on the issue?
14. The Dominican Government is not aware of any proposal by the government authorities to
increase tariffs from 20 to 40%.
15. While non-agricultural goods were bound at a general ceiling rate of 40% in the Uruguay
Round, applied tariff rates on non-agricultural products, excluding petroleum, are currently at an
average tariff of 7.9%.  Since such a big gap between applied and bound rates can undermine the
predictability of market access conditions, Japan requests the Dominican Republic to reduce the gapWT/TPR/M/105/Add.1
Page 5
by decreasing its bound rates during the market access negotiations.  Please provide the view of the
Dominican Republic in this respect.
16. The Dominican tariff system has been modified twice in the last decade.  As a result of these
reforms, the tariff structure is simpler and the effective average tariff protection is lower.  The last
tariff reform in the Dominican Republic reduced the average applied tariff from 17.8% in 1996 to
8.6% in 2001, the standard deviation from 10.2% to 8.0% and the rates from 9 to 5.  This simple
analysis shows that the level of effective protection in the country has diminished.  Consequently, therange of tariffs was reduced from 0-35% to 0-20%.
17. As can be seen, our tariff system has been fundamentally changed as a result of the adoption
of an open trade policy.  In regional terms, we have one of the lowest average tariff rates.  With
respect to the present disparity between the bound ceiling and the applied MFN tariff, the Dominican
Republic will evaluate how it can be reduced in accordance with the arrangements to be agreed in thetariff negotiations.
18. (Paragraph 44).  In January 2001, the uniform rate  of Impuesto Selectivo al Consumo (ISC)
was adjusted to introduce a 10% tax differential in favour of rum, the vast majority of which is
produced locally in the Republic, and against all other spirits, the majority of which are imported.
GATT Article III requires internal taxation to be applied similarly to directly competitive andsubstitutable products, so as not to afford protection to domestic production.  The jurisprudence
resulting from three recent WTO dispute settlement cases concerning taxation of alcoholic beverages,
brought successfully by the EU against Japan, Korea and Chile, confirms this principle.
19. In light of the above, could the government confirm that it intends to adopt a rectification
modifying the tax differential existing between ru m and other spirits (10% ISC), bringing ISC parity
to all spirits at 35%, thereby restoring the present arrangements to consistency with international
WTO obligations, at an early date?
20. The Dominican authorities have submitted a draft fiscal reform to the National Congress and,
among other things, it amends Article 375 of Law 11-92 (Tax Code) as amended by Law No. 147-00
on tax reform, such that goods transferred by producers or imported which are subject to different
rates of Selective Consumption Tax (ISC), especially goods in tariff subheadings 2208.20 to 2208.90
will be standardized at a single rate of 35%.
VI. FREE ZONES (COSTA RICA, EUROPEAN UNION, UNITED STATES)
21. The Dominican Republic's FTZ law contains provisions which constitute prohibited subsidies
under Article 3 of the WTO Agreement on Subsidies and Countervailing Measures.  The Dominican
Republic has notified these subsidies to the WTO.   In November 2001, the Ministerial Conference
directed the Committee on Subsidies and Countervail ing Measures to transition period for developing
countries to eliminate export subsidy measures, such as those notified by the Dominican Republic.
22. What steps has the Government taken to eliminate those measures, and when does the
Government expect to complete the process of eliminating them?
23. Some 85% of the Dominican Republic's total exports came from the free-trade zones.
Multilateral obligations require that this regime and all exports subsidies be phased out.  Whatmeasures has the Dominican Republic taken towards phasing out its free-trade zones?WT/TPR/M/105/Add.1
Page 6
24. The Dominican Republic, with the assistance of international agencies, is engaged in studies
of all aspects concerning the future of free zones w ith a view to determining, in the light of their
social impact, especially on employment, the balance of payments, investment and consequent
transfer of technology, what changes are possible to a mechanism which has contributed enormously
to the country's economic development.
25. In this respect, the extension which was requested under Article 27.4 of the WTO Agreement
on Subsidies and Countervailing Measures and appr oved by the Ministerial Conference in Doha up to
2007, will be used by the Dominican authorities to carry out the necessary reforms in order to phase
out practices incompatible with that Agreement.  At  present, it is too early to give details of the
measures to be taken by the Dominican Government in this regard.
26. Furthermore, aware of the importance of this issue, the Dominican Republic has requested
non-reimbursable technical assistance from the IADB to undertake appropriate studies oncompetitiveness in this sector.  Likewise, the newly-created National Council on Competition is
responsible for evaluating the transformation of the free zone system in line with our obligations to
the WTO (ASCM and Agreement on Textiles).
27. What instruments or procedures are used to ensure that the companies in the free zones are
complying with this legislation?
28. Free zones are regulated and supervised by the National Council for Free Trade Zones and all
government authorities concerned with their operations, such as the Directorate-General of Customs.
29. How many companies are located in the bor der area and what are their activities?
30. At present there are four manufacturing companies located on the border with Haiti.
31. Please provide further details on the Dominican Republic's export finance programmes and
research assistance activities, as described in the Secretariat's report (part IV, paragraph 73).
32. The DEFINPRO Fund provides financing for various economic sectors, such as agriculture
and livestock, tourism and small industry.  In the specific case of free zones, it has the following
programmes:  DEFINPRO Financial Support for the Establishment of Industrial Free-zone Estates,
the objective of which is to finance the establishment of industrial free zones in cities where they do
not at present exist, or to enlarge existing ones, so as to help create new jobs and stimulate economic
activity in the regions concerned.
33. Financing for eligible activities is intended to establish industrial free zones in regions of the
country where they do not exist at present, or enlarge existing ones, or second phase construction in
different locations under the same administration.  Investment includes land development costs,
industrial buildings and administrative office buildings, among others.  It covers up to 75% of the
eligible amount.  The amount is US$5 million or the equivalent in pesos.  The repayment terms are:buildings - up to ten (10) years, including a grace period of up to four (4) years;  infrastructure - up to
fifteen (15) years, including a grace period of up to five (5) years.  The interest rate is 12.56% per
annum (variable) throughout the country.
34. DEFINPRO Financial Support for Enterprises in Free  zones:  is another programme is to
encourage domestic investment in industrial enterprises located or to be located in the country's freezones.  The resources under this programme are intended to provide additional financing for private
initiatives in the country's industry and agro-industry.  Investment eligible for financing includesWT/TPR/M/105/Add.1
Page 7
purchase of machinery, equipment and spares and start-up capital for the installation of these
industries.  Cover is up to 70% of the total investment.  The repayment term is up to five (5) years,including a grace period of up to one (1) year and the interest rate is 12.56% per annum (variable).
35. It should be explained that financing programmes for free zones and exports rely on foreign
resources and repayment is in dollars, which is why the interest rates for these programmes are four or
five percentage points above international market interest rates.
36. We are concerned that the economic reforms the Dominican Republic has made have not
addressed the sectoral divergences between FTZs and the domestic economy that were noted in
the 1996 TPR.  The Secretariat also states (paragraph 106) that FTZs constitute the Dominican
Republic's most important instrument of export promotion.
37. Given the success of the FTZ's, has the Government considered changing the laws and
regulations which govern the domestic economy, in order to reduce the divergence, and reproduce theeconomic success of the FTZ's on a national scale?
38. The Executive in Decree 101-01 of 2001, created a commission to amend Law 8-90 on free
zones.  The objectives of this commission include adapting Law 8-90 to the new global trends and
domestic economic realities.  In addition, Decree No. 1091 of 11 April 2001 created the National
Council on Competition, which will consist of an advisory board and joint groups with members fromthe private and public sectors to promote the efficient use of resources.  One of the Council's functions
will be to make domestic industry more competitive and initiate change in the pattern of free zones
and tourism.  The textiles sector in free zones is promoting the formation of productive clusters to
allow better integration upstream, using locally produced inputs.
39. Is this financing programme described in  the Secretariat's report (part III,
paragraphs 118-120) only available to exporters?
40. The financing programme described in paragraphs 118-120 is only for exports.  It is financed
from external resources and repayment is in United States dollars, which is why the interest rates
described in those paragraphs are four or five percentage points above international market interest
rates.  Hence there is no preferential interest rate.
41. Can the Dominican Republic please provide further information with regard to the duty
drawback scheme described in the Secretariat's report (part III, paragraph 113)?  In particular,please explain whether the duty drawback programme is operated in accordance with Annex II of the
SCM Agreement.
42. It should be noted that these drawback schemes are not yet operating in the Dominican
Republic, since the mechanisms are still being developed.
43. Title I of the Law on the Revitalization and Pr omotion of Exports (Law 84-99) of 6 August
1999 provides for the drawback of customs duties and taxes.  Article 2 provides for the drawback of
customs duties and taxes paid on raw materials, inputs, intermediate goods, labels, containers and
packaging imported by the exporter himself or third parties (indirectly), when they have been
incorporated in goods for export, or when those products are re-exported in the same condition as they
entered the Dominican customs territory.  In any cas e, the amount of the drawback will not exceed the
amount of duties paid when the goods were imported.WT/TPR/M/105/Add.1
Page 8
44. It will for the Dominican Export Promotion Centre (CEDOPEX) to determine the quantities
of raw materials, intermediate goods and inputs incorporated directly or indirectly in obtaining,processing, manufacturing or producing a final expor ted product and, consequently, to calculate the
appropriate amount of drawback.
45. In addition, Title II establishes a simplified arrangement for compensation of customs duties.
Thus, Article 6 states that national or foreign natu ral or legal persons who own enterprises that export
goods shall have the right to compensation for customs duties paid in advance up to an amount notexceeding three per cent (3.0%) of the f.o.b. value of the exported goods.  The percentage of
simplified compensation for duties shall be fixed by Executive decree, in the range of 0% to 3% of the
f.o.b. value of the exported goods, in accordance with and directly related to any variations in the
average tariff rate.  The percentage fixed initially may be revised subsequently every 12 months.  In
no circumstances and for no reason may the amount of compensation or drawback to which Article 6refers exceed the amount of the customs duty paid in advance.
VII. TEXTILES SECTOR (COSTA RICA)
46. The Dominican Republic has retained its right to use the transitional safeguard on products
covered by the Annex to the Agreement on Textiles and Clothing.  Has the Dominican Republic used
this safeguard?
47. Paragraph 54:  The Dominican Republic has not used the right to apply the transitional
safeguard on products covered by the Annex to the Agreement on Textiles and Clothing.
48. Could the Dominican Republic please explain in greater detail the export quota allocation
system for textiles?
49. Exporters of textiles subject to a quota regime must obtain a permit from the special Textile
Coordinator, who is appointed by the National Counc il for Free Trade Zones.  The quota for textile
exports is assigned by the Textile Commission of the National Council for Free Trade Zones, inaccordance with the Regulations on Textile Quota Allocation (Resolution No. 235-97-A) of 12
December 1997 (Chapter IV(4)).  The Commission is composed of representatives of the public and
private sector.  Past export activity is the main criterion for the allocation of quotas.
VIII.  COMPETITION LAW (DISCUSSANT)
50. In Part III, paragraph 146 of the Secretariat's report, it states that the Dominican Republic
does not have a legal framework for competition policy, although competition provisions are part of
various individual regulations contained in the Constitution, the Penal Code, the Copyright Law, and
the Industrial Property Law, etc.  What is the position of the Dominican Republic on a possible
multilateral framework for competition which incorporates the basic principles of the WTO?
51. Does the Dominican Republic have any international technical cooperation agreement?  As
regards technical assistance, which main points should be included in a possible multilateral
agreement on competition policy?
52. The Dominican Government prepared a preliminary draft Law on Market Regulation.  The
Technical Secretariat of the Presidency, as the coordinating body for competition policy, indicates the
following key elements of this preliminary draft law on Market Regulation:WT/TPR/M/105/Add.1
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- The creation of a regulatory institution for the Market Regulation Code.  This will be the
Market Regulation Institute (INORME), with legal personality under public law and it willhave its own capital, and administrative, technical and financial independence.  Its functions
will be governed by the provisions of the Code and the regulations thereto.
- Consumer information and education.  This Code will provide consumers with clear, reliable
and timely information on products and services offered for sale and will safeguard economic
interests.  The Code introduces general information and regulations to guarantee consumers'rights.
- The general content of this legislation is of crucial importance to true and effective
competition, so as to protect consumers in a sustainable manner.
- The Code also guarantees and introduces protection of health and safety, compensation for
injury, right to representation and association, obligations and responsibilities of suppliers,and includes current legislation on copyright and industrial property.
53. With respect to the entry into force of the Ma rket Regulation Code, consultations are still in
progress with civil society in pursuit of a consensus to allow this preliminary draft Law to be
submitted formally to Congress.
54. The Government hopes and believes that the impact of this law on  international trade will be
beneficial, with effective competition legislation the State can protect and ensure the enjoyment of
constitutional prerogatives, through appropriate measures based on legislation.  In this regard, it is
important to make it clear that this legislation will govern all competitive commercial and industrial
activities, the international commitments assumed in the WTO and the applicable constitutional rules.
55. As for the possibility of a multilateral agreement on competition policy, we recognize the
arguments in favour of a multilateral framework to enhance the contribution of a competition policy
which contains the basic WTO principles to international trade and development.  In this regard, theDominican Republic is considering what the most appropriate modalities of negotiations for such a
multilateral framework would be.
IX. LAW ON UNFAIR TRADE PRACTICES (COSTA RICA)
56. Reference is made to the fact that the Law on Unfair Trade Practices and Safeguard Measures
seeks to complement the provisions of international treaties, notably WTO rules, on the imposition ofanti-dumping or countervailing duties or the adoption of safeguard measures.  The same paragraph
states that:  "Anti-dumping and countervailing duties are to be equivalent to the margin of dumping or
subsidization … ".  Does this mean that the said Law precludes the possibility of imposing
countervailing duties that are less than the amount of the subsidy as stipulated in Article 19.2 of the
WTO Agreement on Subsidies and Countervailing Measures, or of imposing anti-dumping duties lessthan the margin of dumping in accordance with Article 9.1 of the WTO Anti-Dumping Agreement.
57. How, and in what specific areas, does this law build on the Agreement on Subsidies and
Countervailing Measures and the WTO Anti-Dumping Agreement?
58. Law No. 1-02 does not rule out the possibility of imposing countervailing measures lower
than the margin of subsidy (or dumping).  Article 46 states:  "The provisional measures shall beapplied for the shortest possible time, which may not exceed four months or, by decision of the
Commission at the request of domestic exporters who represent a significant percentage of the tradeWT/TPR/M/105/Add.1
Page 10
in question, for a period not exceeding six months.  When in the course of an investigation, the
authorities determine that a provisional duty lo wer than the margin of dumping or subsidy is
sufficient, these periods may be increased to six and nine months respectively".
59. In Chapter II, the Law specifies essential factors for determining the existence of subsidies,
based on the relevant provisions of the WTO Agreement on Subsidies and Countervailing Measures
and the general provisions.  Chapter III provides for determination of injury and Title III lays down
the procedure.  Under Article 6 of the Law, any situation not covered thereunder shall be governed bythe above-mentioned Agreement.
60. Reference is made to the fact that the Law on Unfair Practices and Safeguard Measures
provides that revenue from anti-dumping or countervailing duties may be used to finance programmes
for the development of the enterprises affected by the trade practices in question, and that monies
collected as part of a safeguard measure may also be allocated to support the adjustment plan of anaffected domestic industry.  Considering that this  type of provision could lead to an increase in
unjustified applications for the initiation of an investigation, does the Law in question include
provisions for penalizing such applications?
61. The purpose of the Law, under Article 2, is to establish rules and procedures to prevent and
remedy injury that may be caused to a branch of domestic industry by unfair international tradepractices, and to adopt appropriate temporary measures to deal with an increase in imports in such
quantities and under such conditions that they cause, or threaten to cause, material injury to national
producers of like goods, based on the provisions of the WTO Agreements.
62. These Agreements and the Law clearly establish the requirements to be satisfied by requests
from interested parties or ex officio proceedings for the national authority to decide to initiate an
investigation.  These provisions require the inves tigating authority to examine requests in order to
determine whether there are sufficient grounds for initiating the investigation and to safeguard the
rules of procedure, transparency and objectivity.  Ultimately, the decision of the authority will be
based on consideration of whether the request satisfies the requirements laid down in the WTO
Agreements and the Law, and that decision is not concerned with the motivations of the parties.
63. The optional measures laid down in Articles 56 and 70 of the Law would have to be evaluated
in terms of the rules and procedures specific to this complementary component of the Law, whichdoes not affect the independence of the procedures indicated above.
X. FREE TRADE AGREEMENTS (DISCUSSANT, EUROPEAN UNION)
64. Paragraph 36:  The Dominican Republic benefits from the Cotonou and the GSP system.  It
will therefore take part in the forthcoming EPAs.  We would like to know if the Dominican Republic
uses the GSP system granted by the EC at all or not?   And if it is useful in terms of product coverage
compared to Cotonou, or not?  What would be the main barriers that Dominican exporters are facing
entering the EU market, under the GSP?
65. As a developing country, the Dominican Republic is a beneficiary of preferences under the
GSPs of several industrialized countries, includin g the European Union, the United States, Japan and
Canada, among others.  However, in the case of  the European Union, the GSP is used for fewer
products.  Dominican exporters prefer to use the Lome IV certificate of origin (EUR-1), now
Cotonou, because the exemptions are clearly defined in terms of the criteria of origin set out in that
Agreement.  The main problems concern certain primary products such as sugar, textiles, among
others.WT/TPR/M/105/Add.1
Page 11
66. Could the government give some informatio n on the scope and status of the bilateral
agreements foreseen respectively with Haiti and C uba?  How is it foreseen to coordinate them with
the FTA concluded with CARICOM?
67. Although talks on trade agreements have not yet begun with the Governments of Cuba and
Haiti, they are expected to be partial scope agreements, i.e. with a limited list of specific products that
will be entirely free of duty.  However, as indicated earlier, contacts have already been made with
Canada for a free trade agreement, and with Venezuela and Panama for other partial scopeagreements.  None of them interfere with the FTAs already signed with CARICOM and Central
America;  indeed they complement them, since the trade liberalization contemplated in the latter
agreements relates to goods in general, with few and limited exceptions.
XI. GOVERNMENT PROCUREMENT (EUROPEAN UNION, BRAZIL, CANADA)
68. In view of the FTAA negotiations, the FTA with CARICOM and the  Dominican Republic's
intention to accede to the GPA/WTO, how does the country intend to conciliate the national treatment
commitment established in those ag reements with the Law No. 27-01?
69. The Dominican Republic is examining the possibility of acceding to the WTO plurilateral
Agreement on Government Procurement although it is not known when this decision will be taken.  In
any case, the Dominican Government is structuring a transparent and efficient system of governmentprocurement to prevent abuse of the procedures.  Law 27-01 is a first step in regulating this area.  In
addition, all laws, regulations and procedures for the purchase of goods and contracting of services by
the State are being reviewed with technical assistance from international bodies to produce a modern
legislative framework consistent with international standards.
70. Paragraph 85 of Part III states that the total value of public procurement increased from
5.5 billion pesos in 1995 to 10.0 billion pesos in 1999, dropping to 6.6 billion pesos a year later.  This
shows a rise in public sector procurement between 1995 and 1999 and a fall in 2000.  Please explainthe decrease of 3.4 billion pesos in government procurement from 1999 to 2000 and whether the data
includes procurement at all levels of government.
71. The decline in government procurement was due to measures adopted by the Government to
reduce public spending.  These figures relate only to central government procurement and contracts.
72. Paragraph 86 states that preference must be given to Dominican Republic suppliers.  Please
explain what kind of preference is given to Dominican Republic suppliers and how this is determined.
Please also indicate where this information can be found.
73. Law 295, which is the law that governs the matter, does not stipulate what type of preference
is given to domestic suppliers, but in many cases the Government implements domestic procurement
policies.  The Dominican Government is working on the preparation of a Government Procurement
Website which will publish information in procedures, preferences, prices, etc.
74. Law 295 does not apply to purchases by public enterprises.  Could the Dominican Republic
explain what rules apply and how procurement by these enterprises is conducted.  Paragraph 86
describes the existence of a Government Supply Commission.  Please provide information on the
structure and responsibilities of this Commission.
75. Procurement by State enterprises is the responsibility of the Government Supply Commission,
based on recommendations by the Directorate- General of Government Supply.  The SupplyWT/TPR/M/105/Add.1
Page 12
Commission is responsible for approving systems and procedures for procurement and contracts for
goods and services and monitoring proper compliance.
76. The Directorate-General of Government Supply is responsible for proposing policies and
rules for the procurement of goods and services to the Commission;  designing and introducing
common procedures within the system;  ensuring the proper application of the procedures;  and
finally, organizing and administering the Prices and Contracts Information System database.  Lastly,
the operational units in each ministry or entity carry out purchasing and contracting.
77. Paragraph 90 refers to the fact that decisions made by the contracting authorities can be
appealed by suppliers.  Please explain the appeal procedure.
78. Decree 262-98 provides for appeals against a decision.  The appellant must appeal to the same
body that made the decision.  In order to be admissible and justified, the appeal must follow the rules
of procedure for appeals.  If the appeal is declar ed admissible, the contracting authority must notify
that fact to the party awarded the contract within 48 hours.  The party awarded the contract must
respond to the appeal within three working days from notification of the admissibility of the appeal.
The contracting authority must settle the dispute wi thin 15 working days from the date of response to
the appeal.
79. The decision by the contracting authority exhausts administrative recourse.  However, it may
be challenged in the administrative litigation system.  This has the effect of suspending the decision
and must be published within three working days following its notification.
XII. SERVICES (COSTA RICA, JAPAN, CANADA, EUROPEAN UNION, UNITED
STATES, BRAZIL)
80. It is mentioned that recent changes have made policy more liberal than the commitments
made by the  Dominican Republic under GATS.  What are the sectors and measures subject to
changes?
81. The sector where more liberal policies apply is telecommunications.  Since the enactment of
the Telecommunications Law, No. 153 of 27 May 1998, the Dominican Telecommunications Institute
(INDOTEL) was set up as the regulatory authority for the sector, under a system of free competition.
This law is one of the most important legal instruments in competition law and regulation of the
telecommunications market, and is a suitable legal framework to stimulate competition in one of themost dynamic sectors of the national economy.
82. The most important changes in the sector are:  in voice telephone services (CCP7521),
packet-switched and circuit-switched data transm ission (CCP7523), mobile maritime and air-to-
ground telecommunication services (CCP75299), connection and interconnection services (CCP7543
and CCP7545).
83. From a horizontal perspective, given that commercial presence is one of the modes of supply
of services, market access for all services sectors in the Dominican Republic is guaranteed by the
enactment and application of the Foreign Investment Law, No. 16-95, and the regulations thereunder
issued in 1996 and amended in 1997, which abolished all exceptions to national treatment, covered
previously restricted sectors and eliminated limitations on remittance of capital and profits.
84. Although in paragraph 95 it states that foreign banks and their subsidiaries and branches are
subject to the same legal regulatory framework as  Dominican-owned banks, we understand that theWT/TPR/M/105/Add.1
Page 13
Central Bank of the  Dominican Republic has recently proposed a new Monetary and Financial Law
for the financial sector, which will affect the calculation of the single borrower limit of foreignbanks as head office capital can no longer be used.  What is the status of the proposal?  What is the
justification for basing the lending limit on branch "capital" rather than global capital?  The
proposal appears to provide domestic banks with an advantage not available to foreign branch banks.
Please explain how the proposal is consiste nt with the national treatment obligations.
85. The Monetary and Finance Law gives legal force to the measures adopted by the Monetary
Board, which establish prudential, market-oriented banking standards, the Dominican Republic being
one of the few Latin-American countries with this kind of standard.  Among other key provisions, this
law allows the formation of banks with 100% foreign capital in addition to the existing branches of
foreign banks and mixed or joint venture investments with national capital.
86. The draft Law as a whole was agreed with the financial sector, including branches of foreign
banks.  The law provides transitional arrangements to allow foreign branches to adjust to these
national banking regulations.  The banks will have a capital-based limit on lending to individuals,
companies and groups.  Thus, treatment for the entire banking sector is equalized, by preventing
branches of foreign banks treating their head office capital as their own paid-up capital.
87. The Dominican Republic is requested to bind commitments which reflect changes in the trade
policy on services.
88. The Dominican Republic is evaluating existing commitments under the GATS and is
reviewing its legislation to see whether there is any possibility of making more general commitments.
All this involves a process of further thought and discussion, which we call "internal negotiation",
which is necessary before entering into any further commitments in the light of new developments.
89. When is the Dominican Republic considering ratifying the Fifth Protocol to the GATS?
90. The Fifth Protocol on financial services was passed by the Senate of the Dominican Republic
on 1 October 2002.  It will be examined in the Chamber of Deputies in the second week of October.
This means it could be approved this October.
91. The Dominican Republic's Schedule of Commitments covers a range of services under the
GATS Agreement.  There are no commitments for the following services:  postal services, courier
services, construction services, distribution services.  What, if any, are the current market access andnational treatment limitations in place for these sectors?
92. Construction sector and distribution:  Following the enactment of the Foreign Investment
Law, No. 16-95, all restrictions or discriminatory measures relating to commercial presence were
amended and do not apply in practice.
93. Postal and courier services:  Private courier services are regulated by Customs Law No. 3489,
which does not cover all the activities in that sector.  However, the draft Customs Law does contain
provisions on all activities in this sector.  Decree No. 107-98, which sets out the regulations on
importation and exportation by courier, currently regulates these activities.  An analysis of Postal
Communications Law No. 40 and Law No. 307, which established the Dominican Postal Institute,
shows that there are no limitations on market access and national treatment.  Various foreign postaland courier services, such as DHL, TNT, Federal Express and UPS are currently established in the
Dominican Republic.WT/TPR/M/105/Add.1
Page 14
XIII.  CUSTOMS VALUATION AND SYSTEM OF MINIMUM PRICES (THE REPUBLIC
OF KOREA, UNITED STATES, BRAZIL)
94. The Dominican Government has maintained the minimum import price system in customs
valuation on 24 products including motor vehicles, and this system will remain in effect until June
2003.  Due to procedural problems, this system has the possibility of working as an obstacle to trade.
We hope that the minimum import price system will be  abolished as early as possible.  What is the
view of the Dominican Government on this?
95. The principal method of valuation used in the Dominican Republic is transaction value, which
covers 6,698 tariff subheadings, i.e. 98.6% of all tariffs.  Minimum values apply only to used
vehicles. The minimum import price system was es tablished and approved in accordance with the
WTO Agreement on Customs Valuation.  These products are subject to minimum prices because they
represent a considerable proportion of customs revenues and, as indicated, they will expire in June2003.  The operating difficulties in the system can be resolved by legal recourse under the Dominican
Customs Law:  application for review, in hierarchical order, to the Ministry of Finance, the
Administrative Litigation Court and finally the Supreme Court of Justice.  The Directorate-General of
Customs may be consulted directly by importers of goods subject to minimum prices.
96. In January 2002, the General Council decided in favour of the Dominican Republic for an
extension in the application of minimum prices for certain goods until 1 July 2003.  What is the
methodology for the application of minimum values?
97. In accordance with point 3 of the decision referred to, the Dominican Government will
complete the process of phasing out the list of minimum values by 1 July 2003 as planned.  On 30
November 2001, the Dominican Republic submitted to the WTO Market Access Division the
methodology used by the Dominican Customs Authoriti es to calculate the minimum values applied to
the products contained in Annex I to Draft Decision G/C/W/310, adopted by the WTO Council forTrade in Goods on 17 October 2001.  The information on minimum values was published in a
national newspaper in the Dominican Republic on 26 November 2001.  The rules of origin agreed
under the agreements with Central America and CARICOM will be submitted shortly.
98. Could you inform us if the customs value de claration (DVA) is required for imports over
US$2,000 in order to determine the value of the im ported products.  How is this consistent with
Article VII of GATT 94?
99. The customs valuation declaration (DVA) is required to obtain additional information about
the nature of a transaction that is not sufficient ly clear from the commercial invoice.  Thus, the
importer is required to provide a written declaration of the matters covered by the invoice, and any
supporting commercial documents.
100. Importers are required to indicate on the declaration form, in addition to the invoice price,
whether any other payment has been made or will be made, whether the importer is related to the
foreign supplier, whether any part of the proceeds of subsequent sales will be returned directly or
indirectly to the seller, etc.  The declaration must also state, if applicable, whether the goods have
been sold.
101. For goods imported under special customs regimes, such as exemption and suspension, a
DVA is not required, since the fiscal risk in the case of free zones is nil and in the case of suspension
and drawback schemes, it is unnecessary, since they are  under tight customs control.WT/TPR/M/105/Add.1
Page 15
XIV. FACILITATION OF TRADE (EUROPEAN UNION)
102. Could the Dominican Republic provide us with some information on its efforts to simplify and
update customs procedures?  We would be interest ed to know the Dominican Republic's technical
assistance needs in the area of facilitation of trade import and export procedures.
103. The Dominican Republic was one of the first countries in the Caribbean to implement the
eight trade facilitation measures approved at the fifth FTAA Ministerial Meeting in Toronto, Canada.
At present we are receiving technical assistance from the Multilateral Investment Fund of the Inter-American Development Bank (FOMIN/IADB) for the application of importer and exporter profiles
based on risk assessment.
104. The Dominican Customs Authorities apply the practices recommended under that agreement,
as they consider that they contribute to the objective of efficient customs management and the
maintenance of a streamlined and predictable customs procedures for users of the customs service.
105. The Dominican Republic is not yet a member  of the World Customs Organization and
therefore is not a signatory to the Kyoto C onvention on the Simplification and Harmonization of
Customs Procedures.
XV. FOREIGN INVESTMENT (COSTA RICA, CANADA, EUROPEAN UNION, UNITED
STATES)
106. The Secretariat's report notes that foreign investors in the Dominican Republic must register
their investments with the Central Bank within 90 days of making an investment.  Does this rule apply
to national investors?
107. Law No. 16-95 eliminated practically all exceptions to the regime of national treatment.  This
legal framework is a considerable stimulus to the flow of foreign capital into the Dominican Republic,
which in aggregate over the period 1996-2001 totalled US$4,706 million, growing at a cumulative
annual rate of 65.5%.  Registration of foreign investment with the Central Bank is required underArticle 4 of Law No. 16-95.  However, this registration is for statistical purposes, to obtain balance of
payments data (balance of income and capital).
108. The Secretariat Report notes that foreign investments that are susceptible to affecting the eco-
system must submit a certificate outlining how any en vironmental damage will be repaired.  Does this
process also apply to domestic investors?
109. Domestic investors  must comply with environment-related procedures laid down in
Dominican law.
110. The Dominican Republic's Law on the Environment and Natural Resources outlines the
process for conducting an environmental impact study for touristic development projects.  Are
environmental impact studies required in other sectors?  Are all proposed investments subject to sucha study?
111. Environmental impact studies are required in all sectors which affect the environment.  The
Law on the Environment and Natural Resources No. 64-00 of 18 August 2000, Title II, Article 38,
provides that all new activities that have a potential environmental impact are subject to the system
of environmental impact assessment.  An environmental impact study or a declaration is required.WT/TPR/M/105/Add.1
Page 16
Existing installations must undergo an evaluation in the form of an environmental report in order to
obtain an operating licence.
112. What are the main differences between the investment regime applied to nationals and the
rules applied to foreigners under the Foreign Investment Law?
113. The Foreign Investment Law is very broad and seeks to give national treatment to all
foreigners.  However, there are exceptions in some sectors such as construction, insurance and
banking.  In banking, legislation has been drafted to liberalize the sector.
114. In order to ensure continued foreign investment to the Dominican Republic, what are the
measures taken by the Government to improve the legal and contractual certainty of overseas
investors?
115. We note that under the Dealer Protection Law (Law 173), foreign supplier companies
wishing to terminate importation and distribution contracts with local Dominican Republicdistribution companies are subject to substantial termination indemnities.  Furthermore, these
termination indemnities are applicable only to foreign supplier companies and not to local
supplier companies, giving rise to a discriminati on between foreign and local suppliers.  In these
circumstances, is the Government considering revising the existing legislation in order to ensure
national treatment between foreign and local suppliers, as required under GATT Article III:4?
116. Article 12 of the Dominican Foreign Investment Law, No. 16-95, provides that foreign
natural and legal persons, like nationals, may engage in the Dominican Republic in the promotion or
management of imports, sales, leasing or any other form of dealing in or exploitation of goods or
products of foreign origin manufactured abroad or in the country, whether as agent, representative,
commission agent, exclusive distributor, concessionaire or in any other capacity.  However, if the
natural or legal person who is to engage in that activity has a contractual relationship with the local
concessionaires, he must agree in writing and provide in advance full and fair compensation forinjury and damages for termination of contract based on the factors and in the manner described in
Article III of this Law.
117. This means, according to the literal interpretati on of the law, that there is no discriminatory
treatment between a national and a foreign supplier when a contract for representation is rescinded.
Moreover, the Dominican Government has every intention of adapting this legislation to internationalstandards, without detracting from the acquired rights of concessionaires.
118. It appears that foreign investors can remit, without approval from the Central Bank, the total
amount of invested capital, dividends and fees fr om technological transfers and royalty contracts.
What kind of requirements exists for investment with regard to technological transfers and royalty
contracts?
119. Article 2(ii) of the Foreign Investment Law, No. 16-95, defines intangible technological
inputs as resources derived from technology such as patents, product models, industrial processes or
services, technical assistance and specialist knowledge, management support and franchises.  The
regulations on applying this Law determine the general regime applicable to technology, including
areas which allow capitalization of intangible technical inputs.
120. Article 6 of Regulation No. 380-96 of November 1996, in application of the Foreign
Investment Law, No.16-95, on transfer of technology,  provides that applications for registration ofWT/TPR/M/105/Add.1
Page 17
contracts for the transfer of technology with the Central Bank must be accompanied by a copy of the
contracts and documentary evidence that the transferor has proper title to the technology in question.
121. With respect to remittances, it should be explained that within sixty (60) days after effecting
the remittance of the royalty abroad, the concessi onaire must submit the following to the Central
Bank:
(a) A copy of the foreign currency sale form duly stamped by the banking institution that sold the
foreign exchange, which must be authorized to carry out foreign exchange transactions;
(b) documentary evidence of payment of the licensor's tax liabilities in the Dominican Republic;
(c) communication from the concessionaire showing in detail the calculation of the amount of
royalties paid;  and
(d) acknowledgement from the licensor firm that it received the royalties shown in the
documentation.
122. What is the process for obtaining a certificate from the competent ministry or agency when a
foreign investment may affect the eco-system?  Under what conditions would an investor not receive
the certificate?
123. Under the Law on the Environment and Natural Resources (Law No. 64-00) of 18 August
2000, the production, transport and marketing of explosive, harmful, inflammable, radioactive, toxic,or otherwise dangerous substances require the presentation of an environmental impact assessment.
The Law also establishes the procedure for environment impact assessment.  See Article 38 of the
Law.
124. An application for an environmental impact certificate will be refused if the following basic
requirements are not satisfied:  environmental impact declaration, strategic environmental impact
assessment, environmental impact study, environmental report, environmental audits and public
consultations.
125. To what extent do the Dominican Republic foreign investment agreements include market-
access commitments?
126. The Dominican Republic has concluded bilateral investment promotion and protection
agreements with Spain (1996), Ecuador (1999), Fr ance (1999), the People's Republic of China (1999),
Cuba (1999), Argentina (2000), Chile (2000),  Finland (2001), CARICO M (1998) and Central
America (1998).  Each of them generally applies national treatment, transparency and non-
discrimination as a fundamental principle.
127. With respect to the regulations on government pr ocurement from local suppliers, please give
details of the type of preference given to local suppliers.
128. Government procurement accounts for only 2.3% of current GDP in pesos during 1996-2001.
The drop in 2000 compared with 1999 was 1.5 billion pesos, mainly due to global allocations, gross
capital formation, reductions in military spending and allocations to decentralized government
agencies.WT/TPR/M/105/Add.1
Page 18
XVI. QUALITY STANDARDS AND SYSTEMS (COSTA RICA, CANADA, EUROPEAN
UNION)
129. Please indicate the number of private sect or representatives, the number of consumer
association representatives, and the total number of persons currently sitting on the National
Commission on Norms and Quality Systems.  What is the process used by the National Commission in
order to take decisions?
130. The private sector has four representatives out of a total of 14 persons in the National
Commission on Norms and Quality Systems.  The Co mmission is chaired by the Minister of Industry
and Trade.
The decision-making process is as follows:
(a) Prior agenda;  (b) approval of agenda;  (c) knowledge of subjects to be discussed;
and (d) voting and recommendations.  Voting may be immediate or the matter maybe referred to the technical committee for in-depth evaluation.  Approval is by
consensus.
131. Why has DIGENOR not submitted notifications under the WTO Agreement on Technical
Barriers to Trade?
132. It should first be noted that the Dominican Republic has been exceptionally disciplined in
applying the Agreements on Sanitary and Phytosanitary Measures and Technical Barriers to Trade,
since it has consistently applied criteria harmonized with international organizations, as a result of
which it has not engaged in practices and procedures that might hinder the flow of trade with the rest
of the world.  The regulations are applied only to those imported goods that might affect or harm
human, animal or plant life, the general and working environment or in order to preserve natural
resources under the Agreements on Sanitary and Phytosanitary Measures and Technical Barriers to
Trade.
133. The Government of the Dominican Republic is studying which existing legislation should be
notified to the WTO.  In this respect, consideration will be given to seeking technical assistance to
ensure that DIGENOR officials are more familiar with the WTO Agreement on Technical Barriers to
Trade so as to better comply with the notification obligations.
134. Part III, paragraph 66.  This paragraph refers to a process for developing technical
regulations and standards.  Is the process for technical regulations and standards the same?
135. The paragraph refers to standards, which are the responsibility of DIGENOR.  Technical
regulations are the responsibility of the ministries.
136. Where is a provisional norm published?  Is this public readily accessible to other WTO
Members?  Please indicate if comments are accepted on draft regulations from foreign parties?  Alsoplease describe the process followed when comments are received and considered.
137. There are no provisional norms.  Therefore none are published.  Comments on draft
regulations are accepted but none have been received to date.WT/TPR/M/105/Add.1
Page 19
138. Does the Dominican Republic simultaneously notify its appropriate enquiry point at the time
of publication of a draft regulation in order to ensure that foreign parties are given a minimum60 day period for comments?
139. National bodies concerned with the formulation and application of norms publish them in
national newspapers.
140. Part III, paragraphs 62 to 70.  What percentage of the technical regulations in force in the
Dominican Republic are based on international standards set by organizations that are recognized bythe WTO?  For what products are there technical regulations that are not based on international
standards?  For what products are there technical regulations based on environmental protection?
Are there any mechanisms for the control of technical requirements at the border?  Is there any
legislation relating to the certification of organic products and their accreditors?  Is the
precautionary principle applied in the area of food safety?
141. Over 80% of tradable goods are subject to regulations based on international standards set by
ISO.  The majority of products are subject to technical regulations based on protection of the
environment.  There are mechanisms for the control of technical requirements at national ports and
airports.  There are regulations related to the certification of organic products and their accreditors.
The precautionary principle in food safety is applied in the Dominican Republic.
XVII.  AGRICULTURE AND LIVESTOCK SECTORS (TARIFF QUOTAS, PROCEDURES
FOR IMPORTATION OF AGRICULTURAL PRODUCTS, SANITARY AND
PHYTOSANITARY MEASURES) (COSTA RICA, CANADA, EUROPEAN UNION,
NEW ZEALAND, UNITED STATES, BRAZIL)
142. In the information provided, the authorities indicated an interest in reducing the level of
protection.  Can a reduction similar to the rest be expected for products which, owing to their
sensitivity, maintain a WTO bound tariff of more than 40%, or will they receive different treatmentafter 2004?
143. The sensitive products which have a tariff over 40% (only when the tariff quota exceeds
certain import volumes) were the subject of a technical rectification agreed with the WTO.  The
Dominican Republic will evaluate the treatment of such products in the light of the modalities adopted
for the agricultural negotiations.
144. Who is responsible for administering tariff quotas?  On the basis of what criteria are they
allocated?  At what intervals are the quantities to which the quotas will apply fixed?  Is there any
special type of concession that is granted to a particular supplier for any specific reason?  Is it
granted by country or by enterprise, or is it done on a first-come, first-served basis?  Could the
Dominican Republic please explain the legal basis for the administration of quotas – a law, decree,directive, etc.?  If so, could a copy be provided?
145. Decree 505-99 of 24 November 1999 created th e Agricultural Imports Commission, which
administers the tariff quotas, and consists of the Ministry of Agriculture, which presides, the
Ministry of Trade and Industry and the Director ate-General of Customs.  The Commission prepared
the document entitled "Technical Document Desc ribing the Methodology Applied to Determine the
Annual Import for Schedule of the Eight Products under the Technical Rectification", taking into
account the sowing, harvest and production seasons and the period of deficit for each product in the
rectification (notified to the WTO Secretariat).WT/TPR/M/105/Add.1
Page 20
146. The criterion for allocating tariff quotas is first-come first-served.  The quantities are fixed
annually.  The only exception to this method is the quota for powdered milk, for during thenegotiation of the Technical Rectification it was agreed to allocate the quota of countries supplying
powdered milk in the following proportion:  70% to the European Union, 15% to New Zealand and
the remaining 15% to other suppliers.
147. The European Union 70% is administered acco rding to the fiscal calendar of the European
Community, which is from 1 July to 30 June each year, starting in July 2000, when the quota wasintroduced, while the remaining 30% are governed by the official calendar of the Dominican
Republic, i.e. January to December.
148. The import licence or certificate is only assigned to powdered milk from the European Union
and this mechanism is operated by the European Union itself.  We are therefore unaware of the
procedures concerned.
149. Access to quotas for the other products, and the 30% of powdered milk, is by application, on
a first-come first-served basis, taking account of traditional importers and the quota for each product.
150. What types permits are required for agricultural products to enter the Dominican Republic
and what do they cost?  Is there an institution in which an exporter from another country can carry
out all the formalities and obtain the permits to export agricultural products to the DominicanRepublic?
151. The Dominican Republic only requires sanitary and phytosanitary permits for the importation
of agricultural products and these are issued free of charge by the Ministry of Agriculture.
152. On the basis of what procedures does the Dominican Republic recognize other countries'
sanitary and phytosanitary measures to be equivalent?
153. Based on the procedures defined by the CODEX Alimentarius and the International Office of
Epizootics (OIE).
154. For which sanitary and phytosanitary measures and for the control of which products
specifically have mutual recognition agreements been established between the Dominican Republic
and Canada, Chile, Cuba and Haiti?
155. The Dominican Republic has signed sanitary and phytosanitary cooperation agreements with
the Governments of Canada, Cuba, Chile and Haiti for the purpose of exchanging technicalinformation on pests and diseases in our countries.  They particularly concern the following products:
Chile - fruit and timber;  Canada - fruit, plants and timber;  Cuba - fruit, plants and timber;  and Haiti -
fruit and livestock.
156. What is the procedure for issuing sanitary import permits for agricultural products?  Is prior
inspection at origin required at each industrial plant or unit requesting a sanitary import permit?
157. The procedure for granting sanitary permits is as follows:  the importer requests a "no-
objection" sanitary permit from the Ministry of Agriculture (Department of Plant Health or
Directorate-General of Livestock, as appropriate).  The competent authorities determine whether or
not prior inspection at origin is required, and proceed accordingly to issue the appropriate permit.WT/TPR/M/105/Add.1
Page 21
158. From which diseases subject to control by the authorities of the Ministry of Agriculture has
the Dominican Republic been declared free?  Have these declarations been recognized by othercountries?
159. The Dominican Republic is free of foot and mouth disease, African swine fever and bovine
spongiform encephalitis.  See OIE report.
160. Does the Dominican Republic grant benefits such as those under free-zone regimes to
agricultural enterprises?
161. No.
162. How steadily is the type of assistance described in this paragraph applied?  Who sets the
minimum price?  Is the incentive based on the harvest or the area under cultivation?  Is it granted
when the excess production is the result of increased imports due to lower international prices?  What
was the amount spent by the Government over the past year for this type of assistance?
163. Only in exceptional economic circumstances.
- It is set by the Ministry of Agriculture.- It is only given in special circumstances of over-production.
-N o .
- It cannot be quantified because it is not defined as a State agricultural policy, but ad hoc
measures in cases of force majeure .
164. Are these measures notified to the Committee on Agriculture as belonging to any specific
category, for example as a development measure, gree n box programme or restricted measure?  If so,
what are the technical grounds for doing so?
165. Yes, they are notified as development and/or green box measures.  General fiscal incentives
are not applied to the agricultural sector other than tariff liberalization of inputs used in production.
These were notified to the WTO Committee on Agriculture after the Uruguay Round.
166. What is the Dominican Republic's schedule for completing the revision of its sanitary and
phytosanitary regulations?
167. For the agricultural sector, the sanitary and phytosanitary measures will be completed in
December 2002.
168. Can the Dominican Government indicate the pr ecise import regime applicable to EC exports
of pork derivate products from Spain.  Why is the regime different from that applied for other EU
countries?
169. The authorities of the Dominican Republic apply the same import policy to products from the
European Union.  In the past, specific preventive policies were applied for pork products of Europeanorigin, especially from Spain, due to sanitary problems.WT/TPR/M/105/Add.1
Page 22
170. Has the problem of import restrictions in July and August been resolved?
171. The Government confirms that the calendar for milk imports of milk for the summer months
(July and August) was not applied.
172. Are export licences issued by the European Community in countries other than the country of
origin of the product accepted?
173. The Dominican authorities has clarified and implemented the commitments under the
Memorandum of Understanding, which allows the use of export licences issued in any EuropeanUnion country.
174. Has the problem of delays in the issue of "no-objection" sanitary permits for imports been
resolved?
175. The appropriate authorities have recommended importers to request sanitary permits before
loading at the place of origin.
176. What measures is the Dominican Government taking to achieve self-sufficiency in milk and
pork meat?
177. The national authorities have set a long-term target for production of various strategic food
security items, including milk and pork meat, and are implementing various programmes to that end.
178. What consideration has the Dominican Republic given to the impact of tariff and non-tariff
barriers on end-users, both processors and consumers?
179. The Dominican Republic only applies barriers at the border to imported goods through its
tariff system.  The non-tariff barriers refer to the provisions of Article XX(b) to protect human, animal
and plant life as well as those relating to the environment.
180. In view of the Dominican Republic's commitment to lower effective protection, what measures
are being taken by the authorities to ensure that th e flow of imports of agricultural imports is not
impeded?
181. The national authorities are working through the National Trade Negotiations Commission to
eliminate all types of barriers to imports of agricultural goods.
182. Please explain the administrative formalities required for the importation of agricultural
products, provide information on the public notification procedure and indicate whether these
administrative procedures comply with WTO obligations and the WTO Agreement on ImportLicensing Procedures.
183. The Dominican Government does not require import licences for agricultural products, other
than those under the Technical Rectification, fo r which automatic licences are issued, valid for
60 days and published in the national press.  This was notified to the WTO Committee on Agriculture
in February 2002.  The Dominican Republic maintains a system of tariff quotas for only eightproducts under the universal tariff which are deemed sensitive in relation to the country's agrarian
economy, as notified to the WTO by the national authorities in February 2002.  That notification set
out a programme of progressive tariff reduction.WT/TPR/M/105/Add.1
Page 23
184. What led the Dominican Republic to reconsider its bound tariff for some agricultural
products under GATT Article XXVIII after the end of the Uruguay Round?
185. The authorities in the Dominican Republic introduced a process of technical rectification to
modify the tariff ceiling which had been fixed, and to use temporary protection instruments for the
most sensitive products in the agrarian economy, as did the majority of member countries before
signing the Uruguay Round Agreements.
186. What were the modifications introduced in the Dominican Schedule?
187. For sensitive products, the Dominican Republic prepared and was allowed a modification to
Schedule XXIII under a process of technical rectification to include products such as rice, sugar,
garlic, onions, chicken meat, green beans and milk in a temporary protection scheme.
188. What effect did these modifications have on imports?
189. The tariff quotas established have not affected the level of imports, because the quotas
allowed were sufficiently large to satisfy local demand.
190. Could the Dominican Government provide data on the tariff lines renegotiated?
191. The negotiated tariff lines are annexed on page 35 of the report of the WTO Secretariat.
192. What products are still subject to non-automatic import licences?  Is any kind of prior
registration required to obtain an import licence?
193. The Dominican Republic maintains automatic import licences for the food products included
in the Technical Rectification.  Registration of importers is not required for the issue of licences.  The
Dominican Republic only requires sanitary and phytosanitary permits for the import of agriculturalproducts and these are issued free of charge.
194. Section II, Chapter 2, part (ii), paragraph 8.  The Dominican Republic will determine the
treatment of these products after 2004, depending on the negotiations modalities under discussion in
the WTO Committee on Agriculture.
195. Decree 505-99 of 24 November 1999 contained regulations on the administration of tariff
quotas, and there have been no serious complaints about it up to now.  The Dominican Republic
administers the tariff quota for products covered by the technical rectification in a transparent manner.
New Zealand has been assigned a quota, without ha ving any historical right to it.  The Dominican
Republic will determine the treatment of these products in the new round of negotiations, in the lightof the negotiation modalities under discussion in the WTO Committee on Agriculture.
196. Paragraph 17: How steadily is the type of assistance described in this paragraph applied?
Who sets the minimum price?  Is the incentive based on the harvest or the area under cultivation?  Is
it granted when the excess production is the result of increased imports due to lower internationalprices?  What was the amount spent by the Government over the past year for this type of assistance?
197. This kind of support through minimum prices is provided permanently on a weekly basis
through producers' markets.  The minimum price is set by INESPRE and the producers' associations.
The price is based on the harvest and is granted without any specification.  In 2001, the Government
paid approximately US$11.84 million for this purpose.WT/TPR/M/105/Add.1
Page 24
XVIII.  PRIVATIZATION OF STATE ENTERPRISES (COSTA RICA)
198. The State is reported to remain involved in the provision of services as owner of banks,
maritime ports, and hotels.  Is the Government of the Dominican Republic taking, or consideringtaking, any steps to eliminate Government participation in these sectors?
199. Official policy with respect to State enterprises was established in the Public Enterprises
Reform Law, No.141-97.  The majority of these enterp rises have now been transferred to the private
sector and the idea is to complete the process in the future, with the exception of the Reserve Bank of
the Dominican Republic, which operates as a private bank and complies with all the laws andregulations like the other commercial banks.
XIX. ELECTRONIC COMMERCE (COSTA RICA)
200. The Dominican Industrial Technology Institute  and the Dominican Agricultural and Forestry
Research Institute are engaged in a number of ini tiatives to stimulate technological development of
the country's productive sectors.  What other initiatives are being taken at the government or private-
sector level to stimulate the participation of small and medium enterprises in electronic commerce
and in the use of information technology?  Are there any statistics showing the percentage of tradethat is being carried out electronically?
201. Since 5 September 2002, the Dominican Repub lic has had an Electronic Commerce Law,
based on the Model Law of the United Nations Commission on International Trade Law
(UNCITRAL) which, among other things, recognizes  digital signatures and electronic documents as
legally binding.  These aspects are essential to the development of a national development strategythat relies on technology and promotes the concept of electronic government and which envisages
programmes to stimulate the development of electronic commerce strategies for small and medium-
sized enterprises.
202. In 1997, the Dominican Government created a programme of financial support for small and
medium-sized enterprises.  The new administration has extended its scope to include technology andtraining.
203. The Dominican Republic is an active participan t in multilateral initiatives designed to use
information and communication technology in support of national development.  Specifically, the
Dominican Republic, under the coordination of th e Dominican Telecommunications Institute, will
host the Latin American and Caribbean Regional preparatory Conference for the World Summit onthe Information Society.  This regional conference will be held in the Dominican Republic in January
2003, prior to the Summit in Geneva in December 2003.
204. The tasks of the regional conference are to carry out a regional evaluation of the specific
constraints faced by the region, and those stemming from global developments in information and
communication technologies, as well as an assessment of the opportunities and challenges todeveloping countries to reduce the digital divide.  Another task of the regional conference is to
establish a platform for dialogue and contributions from all sectors and interested parties both in the
private sector and civil society.  The Dominican Republic does not have statistics on percentages of
electronic commerce.
205. One of the main challenges for countries in the electronic commerce area is unquestionably
to provide a quality infrastructure and expand access to the Internet by reducing connection costs so
that the different users of this service can enjoy the benefits it offers.  While in the DominicanWT/TPR/M/105/Add.1
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Republic, service providers are free to set prices or rates for telecommunication services, there are
also cases where the Dominican Telecommunications Institute (INDOTEL) can intervene in thesetting of prices.  In view of this fact and cons idering that INDOTEL is responsible for supervising
service providers, what is the policy for the setting of prices or rates for Internet connection?
206. The pricing policy for public telecommunications services in the Dominican Republic is
applied by the Dominican Telecommunications Institute and is governed by Articles 30 and 49 of the
Telecommunications Law, No. 153-98.
207. Article 39 establishes the principle of price freedom, "except where it is determined in a
particular case that their market conditions are not sufficient to ensure effective and sustainable
competition as a result of practices which restrict competition.  Only in such circumstances shall the
regulatory body set prices."  For this reason, enterprises set the prices of their products and have their
own costing methods to determine the final price of  their services, and only in the above-mentioned
case can INDOTEL fix the prices.
208. In addition, Article 40 establishes the mechanism for setting the rates, as laid down in the
"Regulations on rates and costs".  These Regulations are currently being prepared with the assistance
and cooperation of the private telecommunications sector.
209. At the same time, we are working on a draft law on free and fair competition aimed at
establishing the parameters of fair, effective and sustainable competition in this sector.  The draft law
will provide INDOTEL with the tools to analyse cases of restrictive competitive practices, among
other things.
210. Thus, with both these instruments, INDOTEL will have the tools to determine whether it is
necessary to intervene under Article 39 and will have the methodology for establishing rates where
necessary.
211. Law 153-98 of 27 May 1998, Article 42, provides that connection charges shall be freely
agreed between concessionaire companies operating in Dominican territory.  At the same time,
INDOTEL shall ensure that charges are not discri minatory and ensure effective and sustainable
competition.  In the event of disagreement between the parties, it may intervene in setting prices,
giving reasons for its decision, based on cost parameters which include a reasonable return on
investment, calculated in accordance with the "Regulations on Service Rates and Costs".
212. It is important that the benefits of information technology should be accessible to the majority
of the population, and any measures that would contri bute to making such technology more expensive
would prevent that goal from being achieved.  Bearing in mind that Members have committed
themselves to a temporary moratorium with respect to electronic transactions, we would like to know
what tariff treatment electronically traded products currently receive.
213. During the Ministerial Conferences in Geneva and Doha, the Members undertook not to
impose customs duties on electronic trading.  The Dominican Republic is honouring that commitment.
XX. LABOUR STANDARDS (UNITED STATES)
214. The Dominican Republic considers that the WTO is not the appropriate forum for discussing
this subject.  However, we urge interested Memb ers to formulate their concerns within the framework
of the International Labour Organization.WT/TPR/M/105/Add.1
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XXI. MEASURES AFFECTING IMPORTS AND OTHER CHARGES (BRAZIL, UNITED
STATES)
215. The Dominican Republic maintains specific consumption taxes levied at rates ranging from
15% to 60%.  The Selective Consumption Tax is app lied to the c.i.f. value of imported goods and also
to the production value of domestic goods.
216. The Dominican Republic applies a value-added tax (ITBIS) at a rate of 12% on the cost of
production and the selective consumption tax is collected by Customs.
217. The taxable base to which the Selective Consumption Tax is applied is calculated by the same
method for both national and imported products, under Article 367(b) and (c) of Law No. 147-00 of
27 December 2000, which amends the Tax Code, Law 11-92.  This is the price of the last transaction
in the selling process, i.e. is a kind of value-added tax which ultimately falls on the consumer of the
goods concerned.
218. In order to apply the ITBIS, in the case of products subject to the Selective Consumption Tax,
the latter is included in the taxable base to which the ITBIS is applied.  It is applied in the same way
to both domestically produced and imported goods, and therefore does not contravene the provisions
of Article III of the GATT 1994.  The ITBIS is a tax on consumption like the Selective Consumption
Tax.  The former applies generally apart from a limited list of exempt goods, while the latter appliesto conspicuous consumption or luxury goods, alcoholic drinks and tobacco, which are subject to rates
of 15% to 60%.  In the case of motor vehicles, the range is from 0% to 80% depending on the value of
the vehicle.
XXII.  TELECOMMUNICATIONS (COSTA RICA, UNITED STATES, BRAZIL)
219. The Dominican Republic recently proposed instituting a mandatory floor for telephone call
charges.  The increase was about 50%.  We understand that the implementation of this provision has
been postponed until next January.
220. According to INDOTEL's Rsolution No. 84-02, the implementation will start 1st January
2003.
221. Is the Dominican Republic considering revisions of this rule in the meantime?
222. Yes.  The decision includes a first review of the termination rate cost for January 2004.
According to the decision, in no case may the price revised on that date be greater than US$0.075.The second review shall take place in June 2004.
223. How does the Dominican Republic regard this rule as consistent with the WTO goals of
ensuring cost-based interconnection rates and the ITU recommendations on cost-based settlement
rates?
224. The Dominican Republic, as largely expressed in INDOTEL's Board of Directors' Resolution
No. 84-02, understands that the rule is fully consistent with WTO goals ensuring cost-based
interconnection rates, ITU recommendations on that matter, as well as with all Dominican Republic
commitments before the WTO.  Also, INDOTEL has expressed that its Resolution is fully consistent
with US FCC Benchmark Order.WT/TPR/M/105/Add.1
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225. What is the reason for this regulation when the market seems to be producing reasonable
charges?
226. Resolutions 43-02 and 84-02 explained the unreasonableness of having rates below costs, as
it was found by studies made locally.  The impact of that unreasonable situation was harming
the Dominican Republic's legal objectives of fair, sustainable competition, as well as balance-of-
payments equilibrium, which the country has the right to protect, according to WTO principles.
227. Will the Dominican Republic have an open process setting rates and identifying the cost
methodology?
228. The Dominican Republic has conducted a transparent process of enacting both Resolutions, as
is described in both their texts.  Moreover, it has been open to explaining its criteria, as it has done
with some of the American carriers and authorities that have requested it;  this criteria is basically
supported by well-known FCC Benchmark Order a nd ITU Recommendation D.140, as well as local
law dispositions.
XXIII.  OTHER PRACTICES AFFECTING PRODUCTION AND TRADE (UNITED
STATES)
229. As stated in the Secretariat's report (part III, paragraph 131), the Dominican Industrial
Technology Institute (INDOTEC) promotes research  and development geared towards the industrial
sector.  Can you please explain how INDOTEC prom otes research and development?  Also, can you
please explain what types of companies within th e industrial sector receive benefits from INDOTEC?
230. The Dominican Technology Institute in the Central Bank sells various kinds of services to the
country's production sector with the aim of increasing industrial productivity and competitiveness,
basically micro, small and medium-sized enterprises, including:  Coordination of Research and
Development (INDES):  This programme focuses on environmental impact studies, environmental
audits, evaluations, ecological studies in general at the request of the tourist, public, mining,electricity, industrial and business sectors.
231. Coordination of Analytical Services (SERAN):  This programme consists of laboratory
analysis services in food, medicines, textiles, water, geo-chemicals, construction materials, among
others.  The particular importance of the textiles laboratory should be highlighted, at it is unique in the
Dominican Republic in providing services to both domestic and foreign enterprises  and is equippedwith the latest technology to satisfy today's market.  INDOTEC's laboratories are working to enhance
service quality standards to achieve ISO accreditation.
232. Coordination of Technical Assistance and Consultancy (SERTEC).  Comprehensive
diagnostic studies are carried out under this programme to identify needs for services to increase
industrial productivity.  These services include certification of raw materials, machinery andequipment evaluation and sanitary inspection of food plants and rationalization of processes, technical
training, investment project profiles, identification of investment opportunities and project
formulation and evaluation.
233. Integrated Technological Assistance Programme (PRATI).  The objective of this programme
is to enhance the competitiveness of domestic micro, small and medium-sized industry, throughspecific advice and enterprise capacity-building projects.  The work includes strategic planning,
production, operations, marketing, sales, finance, etc.WT/TPR/M/105/Add.1
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234. Technical Information and Training Services (SITEC).  This programme provides specialist
information in technical areas, and its purpose is to contribute to the human resources training forbusiness, teaching and research.  It also publishes a science and technology journal and a technicalnews bulletin.  We reiterate that INDOTEC's services are sold to the domestic production sector.
XXIV.  MINING AND ENERGY (UNITED STATES)
235. Does the Dominican Republic maintain policy measures that are inconsistent with national
treatment in the following sectors?  These se ctors are classified as unbound in the Dominican
Republic's GATS Schedule:
- Services incidental to mining
- Related scientific, and technical consulting services
- Services incidental to energy distribution236. Mining services can be provided only under mode 3 of the General Agreement on Trade in
Services (GATS).  In this respect, under the Foreign Investment Law, No. 16-95, the Dominican
Republic allows the commercial presence of foreign companies in all services sectors, including
mining.  In fact, the country at present has major foreign investment in this sector from the United
States and Canada.  To engage in mining, foreign companies have only to satisfy the requirements on
protection of the environment contained in the Environment and Natural Resources Law No. 64-00 of
18 August 2002.
237. Does the Dominican Republic permit foreign participation in the transmission and
distribution of electric power and natural gas?  Has the Dominican Republic implemented anymeasures to introduce competitive marketing of electric power and natural gas?
238. The Electricity Law permits foreign investment in distribution and all forms of generation of
electricity with the exception of hydro-electric ener gy.  The latter, as well as energy transmission, are
reserved to the State (for cost reasons and by mutual agreement with the private sector concerned).
The Law does not provide for different treatment of foreign-owned companies.  There is no
requirement under the Electricity Law for authorization to generate electricity, but generatingcompanies which supply electricity to the transmission system over a certain power threshold require
a technical permit issue by the Electricity Syst em Coordinating Body (whose members are fully
representative of the sector).  Prices can be set freely, except in the case of transmission anddistribution subject to authorization.
239. The Electricity Law guarantees the institutio nal and regulatory framework to ensure the
process of reform and provides greater investme nt security.  Above all, it contributes to the
restructuring of the high and inflexible electricity charges to consumers  which gave rise to the 1999
reform.  During the capitalization process in the Dominican Republic, energy generation is beingcarried out by two foreign consortia which joined with the State and linked up with twelve
independent producers operating before the process was initiated.  Two companies are responsible for
energy distribution.  The Dominican State, through the Dominican Electricity Corporation, produces
hydro-electric energy and is responsible for transmission.  Consequently, both generation and
distribution are in the hands of capitalized companies, under Law 147-97 on the capitalization of Stateenterprises which concluded contracts with the State.  With respect to fuels, private companies are
free to import gas or other fuels.
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