Logistics Hub Law

By Guzmán Ariza, Attorneys at Law

The Dominican Republic Congress is currently considering a bill that would transform the country into a regional logistics hub. The bill, which is known as the Logistics Hub Law, would create a series of incentives for companies that invest in logistics infrastructure in the Dominican Republic. 

These incentives include tax breaks, customs duty exemptions, and access to government financing. The bill is also expected to streamline the process for obtaining permits and licenses for logistics projects. Among other benefits of the law are the reduction of the cost of maritime and air freight, the reduction of inventory costs, and the increase in the quantity and diversity of goods and inputs available for the international and local market.

The project also aims to establish a legal framework to regulate the operations of logistics centers, logistics center operating companies, and logistics operating companies.

The Dominican Republic is well-positioned to become a regional logistics hub due to its strategic location, its well-developed infrastructure, and its stable political and economic environment. The country is located in the center of the Caribbean Sea, making it an ideal location for transshipment of goods between North and South America. The Dominican Republic also has a well-developed network of ports, airports, and highways.

The country has also a new Customs Law, which includes guidelines from international organizations in the customs and international trade fields, such as the World Customs Organization and the World Trade Organization. Such law provied a more modern and consistent legal framework on the industry. 

The General Directorate of Customs (DGA) reported that logistics operations showed a growth of almost 140% in 2021, with 671,275 TEUs (container load unit) mobilized.