Download document: Law No. 30-24 on Logistics Centers
Objective
On July 30, Law No. 30-24 on Logistics Centers, Logistics Center Operating Companies, and Logistics Operating Companies was enacted to establish a legal framework for the development and promotion of the Dominican Republic as a Logistics Hub. The law also regulates activities conducted by logistics centers, logistics center operating companies, and logistics operating companies operating within the national territory.
Key Definitions
A logistics center refers to an area located in the primary customs jurisdictiArtículo HMM - centros y operadores logísticos (1)on or its extension, where logistics operating companies conduct activities related to the transportation, logistics, and distribution of goods for both international and domestic markets. These centers must be delimited areas with entry and exit points monitored, authorized, and controlled by personnel from the General Customs Directorate (DGA).
Logistics center operating companies are legal entities responsible for designing, constructing, maintaining, operating, and promoting the logistics center. They provide the infrastructure and equipment for the logistics centers and oversee the services that can be implemented and developed within them.
Logistics operating companies are legal entities that provide third parties with services such as storage, inventory management, classification, consolidation, deconsolidation, distribution of goods, packaging, repackaging, labeling, relabeling, wrapping, rewrapping, product splitting, refrigeration, re-exportation, separation, transportation, and other logistics activities that enhance business competitiveness. These companies cannot perform transformation or manufacturing processes similar to those allowed in industrial free zones; their activities must be limited to minimal processes.
National Logistics Council
The law mandates the creation of the National Logistics Council under the Ministry of Industry, Commerce, and MSMEs (MICM). This council will define and approve policies, strategies, and plans for the development of logistics centers, logistics center operating companies, and logistics operating companies.
Authorization
The authorization process for logistics centers, logistics center operating companies, and logistics operating companies involves submitting an installation request to the National Logistics Council. The council must issue an approval or rejection report within 90 calendar days. Approved reports will result in an authorization resolution detailing the technical and economic characteristics supporting the approval.
These licenses are granted indefinitely but can be suspended or revoked by the National Logistics Council in case of non-compliance with the law and its regulations, following administrative sanction procedures.
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.
Author:
Heiddy Moronta
Partner
