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Dominican Free Zones Record-Breaking Exports Continue
By Guzmán Ariza, Attorneys at Law
Dominican free zones achieved a landmark export performance in May 2024, exceeding previous highs. According to data from the General Directorate of Customs, total exports reached a record-breaking US$814.7 million, surpassing April 2024's total by a significant 2.7%.
Daniel Liranzo, Executive Director of the National Council of Free Trade Zones for Export (CNZFE), emphasized the sector's exceptional export performance during the first five months of 2024. He highlighted the sector's growing export diversification, with several subsectors experiencing impressive growth compared to the same period in 2023:
-Jewelry: 14.7% export growth (January-May 2024 vs. January-May 2023)
-Cardboard, Printed & Stationery: 27.1% export growth
-Metals & Manufactured Goods: 5.5% export growth
-Agroindustrial Products: 3.6% export growth
Liranzo also acknowledged the continued strong performance of traditionally leading export subsectors:
-Medical & Pharmaceutical Products: 16.7% export growth
-Tobacco & Derivatives: 8.9% export growth
-Plastic Products: 3.6% export growth
-Government Initiatives Drive Growth:
Liranzo concluded by commending the Dominican government for its commitment to supporting free zones. Initiatives such as the Presidential Cabinet for the Development of Exports, the Zero Bureaucracy Program, and the Industrialization Plan have all contributed positively to the sector's dynamism.
The first Free Zone Park in the Dominican Republic was established in 1969, in the city of La Romana. Companies whose production is focused on exports can set up shop in Free Zone Parks and benefit from tax exemptions and other incentives as a result. The free zone sector is a key driver of the country’s development, creating jobs, generating foreign trade, and fostering technology transfer.
CNZFE delineates policies for the promotion and development of Free Trade Zones, as well as approving applications for operating licenses, with discretionary authority to extend the time limits on these incentives. CNZFE is comprised of representatives from the public and private sectors and is chaired by the Minister of Industry and Commerce.
As of December 2022, the country has 84 parks nationwide, mostly managed by the private sector or under a public-private agreement. 778 companies operate across these parks, employing 379,900 people, with a total accumulated investment of US$5.903 billion dollars in 2021, 80 % of which is of foreign origin.
Guzmán Ariza, Attorneys at Law
Guzmán Ariza is a leading full-service law firm in the Dominican Republic, consistently ranked among the country’s top-tier firms by the most prominent global legal directories such as Chambers and Partners and The Legal 500.
With ten strategically located offices across the nation's principal business and tourism hubs, we are uniquely positioned to support clients in seizing opportunities within the largest and fastest-growing economy in Central America and the Caribbean.
Our multilingual team is well-versed in advising international clients across a broad spectrum of practice areas. In the field of intellectual property, we offer robust counsel and representation in both commercial transactions and litigation. Our services cover trademark and trade name protection, copyright and patent registration and enforcement, as well as licensing, assignments, and the transfer of IP rights.
Guzmán Ariza is globally connected through active memberships in prominent international legal networks, enabling us to effectively support cross-border matters and multinational transactions.