Dominican Republic Enacts Law to Transform the Country into a Regional Logistics Hub

Companies with infrastructure for importing, exporting, dispatching, or shipping through electricity grids, pipelines, or facilities handling fuel for maritime and air cargo must meet special requirements outlined in Article 22 of the law.

Goods Entry/Controls

Logistics operating companies may handle all types of goods, except those prohibited by law for import, export, or commercialization.

Goods received by logistics operating companies may remain in these facilities for up to 12 months from the date of receipt, with the possibility of requesting an additional six months from the DGA. After the indicated period, the goods are deemed abandoned. Transferring goods between logistics companies does not reset or extend the storage period.

Goods entered into logistics operating companies are considered part of an international cargo terminal and are exempt from duties and taxes for up to 12 months from the receipt date. During this period, goods may be re-exported, consumed, or assigned to any customs regime authorized for the importer or permitted for the company’s operations.

Foreign-origin goods stored in logistics operating companies are not subject to external trade duties or taxes until submitted under a specific customs regime. Entry permits are generally not required unless deemed necessary by authorities for phytosanitary, zoosanitary, public health, or national security reasons.

Goods subjected to minimal or insufficient processes by logistics center operating companies or logistics operating companies must be nationalized before entering the local market, with a resident taxpayer holding a National Taxpayer Registry (RNC). These goods are subject to a 3.5% tax on gross sales value, except for goods exclusively subjected to logistics services like storage, inventory management, classification, packaging, repackaging, labeling, relabeling, wrapping, product splitting, refrigeration, re-exportation, separation, and transportation.

Tax Regime

Regarding tax benefits, Article 67 allows logistics centers to operate under the standard tax regime, the incentives of Law No. 8-90 on Free Zones, or the incentives of Law No. 12-21 for the Special Border Development Zone, encompassing certain provinces.

Companies wishing to apply for the incentives under Law No. 8-90 or the Border Development Law must obtain approval from the respective councils.

Logistics centers under the Free Zones regime are taxed at 3.5% on gross sales in the local market per Article 11 of Law No. 139-11, as amended by Law No. 253-12. For logistics operating companies, this 3.5% tax is only applied to the value of services rendered, excluding duties or tariffs.

Companies operating under the standard tax regime will be subject to the Dominican Tax Code’s provisions.

Implementation and Repeals

The implementing regulations for Law No. 30-24 must be issued within 120 days of its effective date, which began on August 1, 2024.

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