The Dominican economy is characterized by its focus on the service sector, with constant growth in areas such as tourism, telecommunications, finance, and logistics. The implementation of Logistics Centers contributes to strengthening the service economy by offering modern and efficient infrastructure that reduces operating costs and improves the country's competitiveness.
Logistics Centers are a key tool for economic development and commercial integration in the DominicanRepublic. These spaces, strategically located in customs or nearby areas, allow for transportation, storage, and distribution activities. Their main objective is to optimize supply chains and facilitate both national and international trade.
The Dominican Republic has a privileged geographical position in the Caribbean, serving as a natural bridge between North America, South America, and Europe. This location allows it to offer efficient connectivity through its network of international ports and airports, facilitating trade and the distribution of goods in the region.
The country has 14seaports, 9 of which have the capacity to handle international cargo, consolidating its position as a strategic point for global trade. Additionally, it has several Logistics Centers that reinforce its infrastructure and distribution capacity.
This guide analyzes the regulatory provisions contained in General Standard 01-2019, Decree 262-15, andLaw 30-24, focusing on the benefits and opportunities these centers offer to strengthen the country's economic competitiveness.
Definition of LogisticsCenter:
The legal standard defines logistics centers as designated areas, generally located in customs or strategic areas, where activities related to the transportation, storage, distribution, and handling of goods are carried out. These areas are designed to facilitate trade both nationally and internationally and to optimize supply chains.
Specific Objectives ofLogistics Centers:
1.-Facilitate international and national trade by reducing operational costs and transit times for goods.
2.- Promote economic competitiveness by supporting exporters and importers with more agile and efficient processes.
3.- Attract foreign and local investment by developing modern infrastructure and favorable conditions for investment in the logistics sector.
4.- Generate employment and economic development by driving the growth of industries related to trade and logistics.
5.- Strengthen the country's position as a regional logistics hub by leveraging its strategic geographical location and connectivity with international markets.
6.- Ensure regulatory compliance and sustainability through efficient customs controls, environmental standards, and international standards.
Supply Chain Optimization:
Provides facilities for activities such as consolidation, de consolidation, storage, packaging, and labeling.
Tangible Benefits:
a.- Establishing in a Logistics Center in the Dominican Republic offers key economic advantages for companies seeking to optimize their operations and expand their reach in international markets.
b.- Goods entered into logistics centers are exempt from customs duties and taxes, and companies operating in Logistics Centers benefit from other tax exemptions such as income tax. Companies operating under the free zone regime enjoy additional benefits, such as exemption from income tax, property tax, and import and export duties.
c.- Access to modern and specialized infrastructure allows for a significant reduction in operating costs. The country has world-classports and airports, such as the DP World-Caucedo port and the Punta CanaInternational Airport, which facilitate logistics and international transportation.
d.- The Dominican Republic has excellent connectivity with more than 90 weekly vessels and nearly 280 daily flights to over 80 cities.
e.- Companies can take advantage of economies of scale by sharing services such as storage, transportation, and distribution with other operators within the same center, thereby reducing fixed and variable costs.Additionally, the simplification of customs processes and the digitization of procedures reduce administrative times and avoid unnecessary costs.
f.- Thanks to the country's strategic geographical position, companies can efficiently consolidate and redistribute goods to NorthAmerica, South America, and Europe, operating under a regional hub model that optimizes trade routes and improves delivery speed.
g.- The government of the Dominican Republic, through theExport and Investment Center of the Dominican Republic (CEI-RD), offers free advice and information, as well as assistance in obtaining government permits.
Legal Framework:
Law 30-24 creates a comprehensive legal framework that regulates the creation of Logistics Centers and Logistics Operating Companies.This law establishes the National Logistics Council as the governing body responsible for defining, approving, and supervising logistics policies. It also sets clear requirements for the establishment of these centers, including technical, economic, and environmental feasibility studies.
The General Directorate of Internal Taxes (DGII) regulates tax aspects related to logistics activities. Significant tax exemptions have already been incorporated into the legal statute to encourage investments in logistics infrastructure. Additionally, Law 11-92 (Tax Code) and Law 168-21(Customs Law) complement this framework by regulating international trade, logistics operations, and associated tax aspects.
Conclusion:
Logistics Centers in theDominican Republic represent a strategic pillar for the country's economic growth and competitiveness in international trade. Thanks to its privileged location, modern infrastructure, and favorable tax regime, these centers offer companies an ideal platform to optimize their operations, reduce logistics costs, and expand their reach in global markets.
The economic advantages of establishing in a Logistics Center are significant, including lower operating costs, efficient inventory management, access to tax and customs incentives, and greater connectivity with major regional markets. Additionally, the presence of regulatory bodies and the implementation of advanced technologies ensure agile and secure logistics processes, strengthening the country's position as a regional logistics hub.