Law Reformed Epz And Marketing.

Original Language Title: REFÓRMASE LEY DE ZONAS FRANCAS INDUSTRIALES Y DE COMERCIALIZACIÓN.

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Read the untranslated law here: http://www.asamblea.gob.sv/eparlamento/indice-legislativo/buscador-de-documentos-legislativos/reformase-ley-de-zonas-francas-industriales-y-de-comercializacion/archivo_documento_legislativo



1 DECREE No. 318

THE LEGISLATURE OF THE REPUBLIC OF EL SALVADOR, CONSIDERING
:
I. That pursuant to Article 101 of the Constitution, it is the duty of the State to ensure that
the economic order responds essentially to principles of social justice, which are designed to ensure that the inhabitants of the country an existence worthy of human beings.
II.- by Legislative Decree No. 405, dated September 3, 1998, published in the Official Gazette No. 176, Volume No. 340, 23
that same month and year, were issued Export Processing zones Act and Marketing, as an instrument of attracting investment and job creation.
III.- Free Zones and Inward deposits contribute to the growth of the national economy in terms of employment generation and production of wealth; so it is necessary to remain competitive.
IV.- That the State has an obligation to bring national legislation with the rules governing international trade in this area, with the aim of
provide legal certainty and security to all people.
THEREFORE,
in exercise of its constitutional powers and initiative of the President of the Republic, through the Minister of Economy
of MEPs: Othon Sigfrido Reyes Morales, Alberto Armando Romero Rodriguez, Francisco Roberto Lorenzana Durán, José Roberto D'Aubuisson Munguía, Lorena Guadalupe Peña Mendoza, Carmen Elena Calderón de Escalón, Jose Rafael Machuca Zelaya, Francisco José Zablah
Safie, Antonio Ernesto Angulo Milla, Dina Yamileth Argueta Avelar, Evelyn Batres Marta Araujo, Manuel Orlando Cabrera Candray, Edmundo Cabrera Yohalmo Chacon, Alejandrina Silvia Figueroa Castro, Ana Marina Castro Orellana, Dario Alejandro Argueta Girls, José Mena Alvaro Cornejo, Carlos Cortez
Hernandez, Blanca Coto Noemi Estrada, Alma Rosa Cruz Sailor, Raul Omar Cuellar Ana Vilma Albanez de Escobar, Silvia Estela Escobar Ostorga Lucia del Carmen Ayala Leon Antonio Echeverria Veliz, René Escalante Gustavo Zelaya, Emma Julia Fabian Hernandez, Felix Agreda Chachagua, Carmen Elena Figueroa
Rodriguez, Juan Manuel de Jesus Cornejo Flores, Flores Santiago Alfaro, Rinaldo José Garzona Villeda, Jesus Grande Guerra Iris Marisol Henriquez, Norma Guevara Ramirios Fidelia, Jose Wilfredo Guevara Diaz, Edilberto Hernandez Castillo, Wilfredo Iraheta Sanabria, Rafael Antonio Jarquín Larios, Karina Ivette Sosa
Lara, Benito Antonio Lara Fernandez, Audelia Guadalupe Lopez de Kleutgens, Hortensia Margarita Lopez Quintana, Jose Maximo Madriz Serrano, Martyr Arnoldo Marin Villanueva, Mario Marroquin Mejia, Rodolfo Antonio Martinez, Guillermo Francisco Mata Bennett, Douglas Leonardo Mejia Aviles, Juan Carlos Mendoza Portillo, Manuel Vicente Menjivar Esquivel, Heidy Carolina Saravia Look, Walter de Jesus

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Montejo Melgar, Rafael Tobar Ricardo Morán, yeymi Elizabett Muñoz Morán, José Gabriel Murillo Duarte, Oscar Ayala Ernesto Novoa, Sigifredo Ochoa Perez, Jose Serafin Orantes Rodriguez, Orestes Fredesman
Ortéz Andrade, Mariela Peña Pinto, Mario Antonio Ponce Lopez, Sergio Benigno Portillo Portillo, Jesus Nelson Quintanilla Gomez, Claudia Luz Ramirez Garcia, Carlos Armando Reyes Ramos, David Ernesto Reyes Molina, Adelmo Santos Rivas Rivas, Rivas Rubio Ronal Recinos, Jackeline Noemi Rivera Avalos, Wilver
Alexander Rivera Monge, Abilio Menjívar Orestes Rodriguez, Sonia Margarita Rodríguez Siguenza, Marcos Francisco Salazar Umaña, Mario Alberto Guerrero Tenorio, Abner Ivan Torres Ventura, Jaime Gilberto Valdés Hernández, Patricia Valdivieso Elena Gallardo, Mario Eduardo Valiente Ortiz Rivas Vaquerano Eugenio Donato
, Antonio Vasquez Guadalupe Martinez and David Edwin Victor Alejandro Zamora.
DECREES the following:
AMENDMENTS TO THE LAW OF FREE ZONES AND INDUSTRIAL MARKETING
Art. 1. Art 2 hereby replaced by the following:.
"Art. 2. For purposes of the application and interpretation of this Act, the following definitions apply:
a) Acceptance of the Goods Declaration: The date of registration in the computer system
the Directorate General of Customs , DGA, when you have paid and signed electronically, as appropriate. Should the Goods Declaration was not signed and paid electronically shall be deemed accepted at the time it is filed with the
customs authority and the customs official record that act in the computer system of the customs service;

B) Strategic Industrial activities: Those operations relating to the manufacture of vehicles, aircraft and marine vessels or the production of industrial goods from the use of nanotechnology; whose owners make a new investment in the country
not less than ten million dollars of the United States of America and are declared as such by means of Agreement issued by the Executive Branch in the Field of Economics;
C) Zone Manager: it is the natural or legal person directly responsible for the management, administration and management of the Free Zone;
D) Metropolitan Area: The are the following municipalities: Antiguo Cuscatlan, Santa Tecla, Apopa, Ayutuxtepeque, Cuscatancingo, Ciudad Delgado, Ilopango, Mejicanos Nejapa, San Marcos San Martin, Tonacatepeque, San Salvador and Soyapango;
E) Beneficiaries: Are Developers, Administrators and Users FTZ or authorized by DPA Agreement issued by the Executive Branch in the Field of Economics, for
activities permitted by this Act; as well as those users or DPA dedicated solely to supply the entire production, through a subcontract with other users or DPA Zona Franca, in order to add value to products;

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f) Marketer: The beneficiary that is dedicated to the tradition of goods to retailers or wholesale or the end consumer and has been authorized by the Ministry of Economy
;
G) Table Statement on Release: A document which integrates information and details of imports under the Free Trade Zone System and Temporary Admission for Inward, with their respective releases by compensating product where
it is found that the goods or compensating products shall have been re-exported or destined for any other legally authorized treatments. It includes balances of each Declaration of Goods;
H) Deposit for Inward or DPA: The area of ​​the country subject to a special customs treatment, in which goods can enter
suspension of import taxes to be subjected to a process transformation, processing, repair or other legally authorized for subsequent re-export and in which capital goods may remain indefinitely; whose holder has been authorized by the Ministry of Economy
to operate it and engage in any of the activities mentioned in Article 3 of this Act;
I) Waste: Are the resulting waste after the goods that are subject to a free trade
or DPA zone have undergone a process of improvement;
J) Developmentalist: is the natural or legal person who is dedicated to the establishment and development of
Free Zones, providing the same services and public and private infrastructure and industrial space needed for its proper functioning, with the order to sell or lease the lots or industrial buildings; approval of the Ministry of Economy and compliance
stages Prequalification and Authorization and Commencement of Operations covered by this Act;
K) Final Import or nationalization: It is the entry of goods from abroad for final use or consumption in the national customs territory, after complying with all customs formalities and payment of import duties and taxes;
L) Producer: The beneficiary is engaged in activities permitted by law in the manufacture, assembly or maquiladora manufacturing, processing or transformation of goods and
which has been authorized by the Ministry of Economy, through the respective Agreement;
M) Compensating products: Are the assets resulting from operations of incorporation,
processing, manufacturing, repair or any other activity improvement within a free zone or DPA;
N) Re-export: It is the regime that allows the exit of the customs territory of foreign goods arriving in the country and definitely not imported;
O) final Transfers: The shipment of goods with domain transfer between beneficiaries

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of the Act;
P) Secondments: The shipment of goods between a beneficiary of Law and one that may or may not beneficiary, provided that those goods have to return to the senders companies, within the period prescribed by law;
Q) User: is the natural or legal person authorized to enjoy the benefits of this Act by the Ministry of Economy to establish a business in a Free Trade Zone and

Operate, engaging in any of the activities mentioned in Article 3 of this Act;
R) Zone: The area of ​​the country in which it is allowed to enter goods
considered as if they were in the national customs territory with respect to taxes import and export, to be designed by nature, operations or processes permitted by this Act. "
Art. 2. Intercálase between the Arts. . 2 and 3, Article 2-A, as follows:
"Art. 2-A.- Create the Consultative Committee of Free Zones, hereinafter the Committee, composed of the Minister of Economy, Minister of Finance, Minister of Labour and Social Welfare, a representative of the business sector and a representative of the labor sector; in the case of the first three may appoint a representative.
The Committee shall be chaired by the Minister of Economy, and it shall:
a) Develop the respective rules for the election and appointment of representatives of business and labor;
B) Develop rules of functioning of that Committee;
C) Conduct calls for meeting of the Committee at least five days in advance.
The Committee shall have the following powers:
a) To recommend actions to facilitate operations, procedures and compliance with requirements by the beneficiaries of this Act;
B) recommend to the Ministry of Economy measures and actions necessary or convenient for the establishment, promotion and development of Free Trade Zones and DPA;
C) Refer labor policies that foster harmony and smooth development of relations worker-employer. "
Art. 3. Article 3 is hereby replaced by the following:.
"Art. 3. may be established and operate in FTZ companies whose owners are natural or legal persons engaged in:

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I. Production, assembly or maquila, manufacture, processing, processing or marketing of industrial goods, included in Chapter 3 and Chapters 25
hereinafter the Tariff System, SAC, except those who fall in Article 6 of this Act;
II. Fisheries marine species to be subject to industrial processing, such as prepared or preserved, derivatives or products; as well as their respective processing and marketing
;
III. Cultivation, processing and marketing of flora
produced under protected structures in greenhouses and laboratories that have the permit issued by the appropriate authority;
IV. Breeding and marketing of species of amphibians and reptiles in captivity, who have the permit issued by the appropriate authority;
V. Dehydrating ethyl alcohol.
They understood to be included in the activities mentioned in the preceding paragraph, those needed for production, are to develop the activity or related to them, such as: design, painting, cutting, stamping
, finishing, screen printing, embroidery , washing, ironing, quality control, recycling and repair. Such
service activities may only be borrowed among the beneficiaries of this
Act.
When the goods produced in free zones or DPA are sold to the customs
national territory for a purpose authorized producer, it must internalize the goods, paying duties and taxes on import on customs value, solely by the national component not incorporated into the final product. Sales to the domestic market
products will have the same treatment.
Marketers to make sales to the national customs territory, they should internalize the real
paying duties and taxes on import on customs value. In the case of goods purchased from a producer established in accordance with this Act, duties and import taxes are calculated on the customs value of the goods, excluding the value of said base component of national
incorporated into the final product, as long as the marketer demonstrate the value of such components.
In the case of internments referred to the two preceding paragraphs, the applicable tariff shall be the Most Favoured Nation (MFN). However, if the marketers made goods imports originating in third countries with which it has a Free Trade Agreement,

May apply preferential treatment, provided they show the customs authorities that the goods have not undergone any transformation in the country, which have remained at all times under customs control and meet the other requirements to enjoy tariff preferences.

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In any case the declared value of goods who enter the country may be less than the value with which the goods entered the Zona Franca or DPA, which in the case of raw materials and inputs
, it may not be less than the customs value established in the declaration of goods. In transactions, business documents, tax and accounting support should reflect the national value added by the processes of manufacturing, processing and repair to those who were subjected
such goods. For goods which have undergone transformation, the customs value shall include the cost of raw materials and manufacturing overhead.
Sales or purchases of goods necessary for the authorized activity, carried out between beneficiaries of the scheme established by this Act, shall not cause duties and taxes, including the tax on the transfer of Personal Property and Provision of Services; above, shall apply
in the case of the DPA, provided they are made within the legal term of the customs regime and under no circumstances transfers of goods to any title shall be considered as grounds for extending this period.
For sales of goods, the beneficiaries of this Act shall also check the customs authority solvency payment to the Salvadoran Social Security Institute and the various
Pension Fund Administrators, contributions and deductions from their workers, as well as the contributions made by the employer for the previous month next to that in which the sale takes place. Such verification shall be in accordance with Article 9-A of this Act. "
Art. 4.- hereby replaced Art 3-A, by the following:.
"Art. 3-A.- The natural or legal persons who are authorized under this Act to engage in marketing of industrial goods should be installed in free zones.
The goods to be traded should be subject to each of the following conditions:
a) Enter directly into the free zone;
B) not be subjected to any processing or preparation by the marketer;
C) be appropriated or intended benefits holder, who must prove the property through any of the following documents: accounting records, contracts and documents respective shipment.
Holders of marketing companies engaged in activities relating to handicrafts, textile industry, textile industry and garment manufacturing activities, may be established and operate from a
DPA, only when the goods marketing are destined to companies operating under this Act and that they are incorporated or used in the transformation processes, such as production, manufacturing, assembly and assembly, must submit to the regime
legally established, enter them to the facilities and meet DPA the provisions of subparagraphs b) and c) of this Article. "
Art. 5. To substitute the Art 5, by the following:.

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"Art. 5. They may rely on this law, natural or legal persons holding companies:
a) develop FTZ called developmentalist;
B) administer FTZ called administrators;
C) established in FTZ called Users;
D) whose establishments are declared Deposits for Inward. "
Art. 6. Article 6. hereby replaced by the following:.
"Art. 6. not eligible for the provisions of this Law, natural or legal persons
engage in the following activities:
a) Exploration, exploitation, processing and marketing of natural gas, oil and || | fuels and oil, grease and lubricants;
B) Production and sale of cement and clinker;
C) Marketing scrap or waste steel, iron and other ferrous and non-ferrous metals;
D) metallic and nonmetallic mineral products from the exploitation of the subsoil
Salvador;
E) involving processing and handling of explosives and radioactive materials;
F) The production or storage of goods which are qualified by the competent authorities to cause pollution, damage to health or the environment;

G) Production, assembly or maquila, manufacture, processing, processing or marketing sugar substitutes, derivatives and by-products; as well as any property that incorporates directly or indirectly
sugar substitutes, derivatives and by-products;
H) Production, assembly or maquila, manufacture, processing, processing or marketing
alcohol from any source, as well as any assets directly or indirectly incorporate alcohol any source except as provided in the Roman V, of Article 3 of this Act.;
I) Production, assembly or maquila, manufacture, processing, processing or marketing of bags or sacks, of man-made fibers;
J) Provision of food prepared or not, intended for employees or companies benefited from this Act and any other liberatory or suspension arrangement;
K) Import of machinery and equipment leasing purposes.

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Neither shall benefit from the provisions of this Act:
1) natural or legal persons who have been suspended or revoked them the benefits conferred by this Act;
2) societies listed as directors, legal representatives, directors Unique, partners or shareholders of these, who served in such positions or had equity in other companies to which they were suspended or revoked the
benefits conferred by it;
3) When the activities to be carried out involving an unlawful purpose, or may lead to drug
or damage to the health of people and animals, environmental pollution, pornography, gambling, production or marketing of weapons, accessories or explosive devices of any kind;
4) natural or legal persons, partners or shareholders of these, based on statements provided by the Ministry of Finance, through the General Directorates
Customs and Excise, customs duties have and / or tax firm in pending administrative headquarters to meet.
The provisions of paragraphs 1) and 2) of the preceding paragraph shall not apply where the suspension or revocation
has been voluntarily requested by the beneficiary of this Act and not the result of violations of the same. "|| | Art. 7. Article 7 hereby replaced by the following:.
"Art. 7. Natural or legal persons who invoke the provisions of this Act, shall
locate your company in a free zone or establishments where they operate DPA must be declared by the competent authority. "
Art . 8. hereby replaced Art 9-A, by the following:.
"Art. 9-A.- checking solvency payment institutions of welfare and social security, established for Users of Free Zones and Inward storage tanks will be carried out by using electronic communication networks whose security specifications will be
established by the Directorate General of Customs. This office will establish consultation mechanisms that facilitate online verification of compliance with these provisions.
In case of force majeure, the Directorate General of Customs shall adopt contingency measures to ensure continuity of operations, in coordination with those institutions. "
Art. 9. Article 10 hereby replaced by the following:.

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"Art. 10. developmental stages shall comply with the pre-qualification and authorization and commencement of operations, including the development of buildings and following areas:
1. BUILDING COMMON:
a) Administrative and Maintenance Offices;
B) US Customs and Fiscal Delegation: which must be properly equipped and located
in accordance with the requirements established by the Directorate General of Customs, through the regulation of this Act and meeting the reasonable needs for operation;
C) Monitoring and Control House: properly equipped in accordance with the requirements established by the Directorate General of Customs and separated from the Bureau of Customs and Fiscal Delegation, as well as private security industrial park, if any;
2. INDUSTRIAL BUILDINGS EACH SHIP:
a) Offices;
B) production or storage area;
C) Storage of raw materials and finished product;
D) loading and unloading zones;
E) Vehicle parking;
F) The number of health services as set out in the General Law on Risk Prevention in the Workplace, for both men and women;

G) infrastructure and basic referred to in this Act to services, the General Laws of Risk Prevention in the Workplace, Equal Opportunities for Persons with Disabilities and the Labour Code.
3. DEVELOPMENT:
a) A minimum length of ten blocks, of those new projects of Free Zones;
B) Green area: 30% of the total area including ecological green area, sports area;
C) streets, passages and pavements;
D) Parking for vehicles;
E) Parking containers;

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f) Perimeter fence;
G) Have a pedestrian and road access entry and exit. If you need more than one access, the Ministry of Economy shall request the opinion of the Directorate General of Customs, prior to authorization, which must be issued within a period not exceeding 20 working days.
4. OPTIONAL EDIFICACIONES:
a) Offices;
B) Office of Delegation of the Ministry of Labour and Social Welfare;
C) Clinic;
D) Bank;
E) Industrial Cafeteria.
The designs of each of the above elements are subject to the standards and specifications issued by the Department of Housing and Urban Development, VMVDU, the Planning Office of the Metropolitan Area of ​​San Salvador, OPAMSS or any other institution with similar powers according
appropriate.
Authorized developers may request an extension or reduction of the area of ​​their respective
free zone, provided they comply with the following:
a) The area which would be added must be adjacent or close to a radius more than five kilometers,
to be measured from the edge of the area previously authorized as Zona Franca, must obtain the appropriate permissions;
B) In the event that the property or properties that are intended to add are not owned by the applicant, it must be submitted with the corresponding request a document check and ensure legal tenancy. In it, the owner must expressly consent to
good or their property will be sympathetic to the regime or be obligated to comply with relevant legislation;
C) No reductions affecting infrastructure and minimum extent required by this Article shall be authorized;
D) The resulting area of ​​enlargement or reduction should be conditions that allow the area to secure the necessary mechanisms to control the entry and exit of goods, such as perimeter fencing, customs delegation and fiscal control booth and surveillance .
Prior to authorize the enlargement or reduction of the area, the Ministry of Economy shall have the opinion of the Directorate General of Customs, which must be issued within 20 working days of the date that has been required by that ministry. "

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Art. 10. S.11 hereby replaced by the following:.
"Art. 11. developmentalist duly authorized by the Agreement issued by the Executive Branch in the field of economics, according to the provisions set forth in Article 10 of this Law shall have the following rights
:

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a) Total exemption from income tax:
1) For the period of ten (10) years from the year start operations by the activity dedicated to Free Zones, if located in Area metropolitan;
2) For the period of fifteen (15) years from the year start operations by the activity dedicated to Free Zones, if located outside the metropolitan area.
From the thirteenth fiscal year, counted from the publication in the Official Journal of Agreement Qualification issued by the Ministry of Economy, profits or dividends, from the favored activity will be taxed at the income tax .
During the twelve fiscal years, counted from the publication in the Official Journal of Agreement Qualification issued by the Ministry of Economy, the exemption in the case of corporations shall apply to both the owner
Society Zone Franca, as partners or shareholders individually considered, regarding profits or dividends from the favored activity.
In both cases, the exemption in the case of corporations shall apply to both the company that owns the Zona Franca, as partners or shareholders individually considered, regarding profits or dividends from the favored activity.
If one or more members are legal persons, this right will be exclusive to them. This benefit may not move on its partners.
B) Total exemption from municipal taxes:

1) For the period of ten (10) years from the year start operations by the activity
dedicated to Free Zones, if located in the metropolitan area;
2) For the period of fifteen (15) years from the year start operations by the activity
dedicated to Free Zones, if located outside the metropolitan area.
The municipal councils, within their legal powers, in order to promote the development
of their respective municipalities may grant additional benefits to those laid down in this Act.
C) Total Tax Exemption transfer of Real Estate, for the acquisition of those
real estate to be used in the incentivized activity.
The developers have an additional period of five years for
exemptions to the payment of income tax and municipal tax law, provided that during the period of full exemption have invested in an expansion of the free trade zone that meets the following characteristics:
I. The total area of ​​enlargement be located within not more than five kilometers measured from the edge of the area previously authorized as Zona Franca;

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II. The surface of the extension is at least eight blocks;
III. That meets the minimum infrastructure requirements laid down in Article 10 of this Law. "
Art. 11. Article 13 hereby replaced by the following:.
"Art. 13. Managers should provide free zone or provide directly to it
companies operate the facilities for water supply, electricity and toilet train, coordinate the maintenance of all common services of the Zone, such as roads, fences, green areas and public lighting, promote the establishment of new investments in the area as well as
also ensure that the users of the area comply with legal and customs provisions, in coordination with the Attorney Delegation and customs established therein, must also issue the respective Operating Rules, subject to the approval of the Ministry of Economy. "
Art. 12.- Repealed Art. 14.
Art. 13.- Repealed Art. 15.
Art. 14.- Art 16 hereby replaced by the following:.
"Art. 16. Prior to the Ministry of Economy issued the Authorization Agreement to User FTZ, you must have the opinion of the Ministry of Finance, which must be issued within twenty (20) working days of the date on which has been required.
Not issued such opinion before established within the Ministry of Economy shall extend the aforementioned Agreement.
The Agreement granting authorization scheme of a User, shall contain at least: the name of the holder, the determination of the establishment in which the company will be located with its respective surface area; productive activity and the market is authorized; amount of initial investment in fixed assets and term
to comply and / or number of permanent jobs with which it will operate; where appropriate, the classification of strategic industrial activity; the rights and obligations granted and other requirements established by this Act. "
Art. 15.- S.17 hereby replaced by the following:.
"Art. 17. The owner of a user company FTZ properly authorized under this Act shall be entitled to:
a) Free admission to the Free Zone for the period conduct its operations in machinery, equipment, tools, spare parts and accessories, utensils and other equipment necessary for the execution of the authorized activity;
B) Free admission to the Free Zone for the period which they operate, raw materials, parts, components or elements, semi-finished products, intermediate products, packaging, labeling, packaging, samples and standards necessary for the implementation of activity

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authorized. Similarly, they can enter treatment under the above mentioned machinery, apparatus and equipment and any other goods that have to be used to repair by
beneficiaries, including exported products are reimported as refoulement;
C) Free admission for the period which they operate, lubricants, catalysts, reagents
, fuel and any other substance or material necessary for productive activity;
D) Total exemption from income tax on the authorized activity:
1. For a period of fifteen (15) years from the publication in the Official Journal
Agreement issued by the Ministry of Economy, if located in the metropolitan area.

Expiration of the period granted, the user shall be entitled to a partial exemption
following way:
Sixty percent exemption (60%) of the rate of income tax applicable
within ten (10) years following the expiration of the original deadline set for the exemption. Forty percent
exemption (40%) of the rate of income tax,
applicable during the ten (10) years following the expiration of the previous term.
2. For a period of twenty (20) years from the publication in the Official Journal
of Agreement issued by the Executive Branch in the Field of Economics, if located outside the metropolitan area.
Expiration of the period granted, the user shall be entitled to a partial exemption as follows:
Sixty percent exemption (60%) of the rate of income tax applicable during the fifteen (15) after the expiration of the original deadline for the exemption years. Forty percent
exemption (40%) rate of income tax, during the ten (10) years following the expiration of the previous term.
From the thirteenth fiscal year, counted from the publication in the Official Journal of Agreement Qualification issued by the Ministry of Economy, profits or dividends,
from the favored activity will be taxed with tax income.
During the twelve fiscal years, counted from the publication in the Official Journal of the Agreement
Qualification issued by the Ministry of Economy, the exemption in the case of companies will apply both to the user society as partners or individually considered, regarding profits or dividends from shareholders favored activity.

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If one or more members are legal persons, this right will be exclusive to them. This benefit may not move on its partners.
E) Total exemption from municipal taxes:
1. For a period of fifteen (15) years from the publication in the Official Journal of Agreement issued by the Executive Branch in the Field of Economics, if located in the metropolitan area.
Expiration of the period granted, the user shall be entitled to a partial exemption as follows:
Ninety percent exemption (90%) of municipal taxes during the ten (10) years following the expiration the original deadline for
exemption.
Seventy-five percent of exemption (75%) of municipal taxes,
onwards.
2. For a period of twenty (20) years from the publication in the Official Journal of Agreement issued by the Executive Branch in the Field of Economics, if located outside the metropolitan area
.
Expiration of the period granted, the user shall be entitled to a partial exemption
following way:
Ninety percent exemption (90%) of municipal taxes during
fifteen (15 ) following the expiry of the original deadline for the exemption years.
Seventy-five percent of exemption (75%) of municipal taxes, hereinafter.
The Municipal Councils, within their legal powers, in order to promote the development of their respective municipalities may grant additional benefits to those laid down in this Act.
F) Total tax exemption on transfer of property roots, those acquiring real estate to be used in the authorized activity.
Expiration of the period of total exemptions, users will have an additional period of five (5) years right, if it is found that during the last five (5) years from total relief, have increased their investment
100% on your initial investment. This increase in investment should be made in the purchase of land, construction of buildings and the purchase of machinery and equipment related to the unauthorized activity.

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The Ministry of Economy should be incorporated into the Agreement issued on the occasion of the authorization of a user, the detail of the goods that are not deemed necessary for the execution of the authorized activity
, with their respective tariff nomenclature , specific or general, using sections, chapters, headings or subheadings, as appropriate.
The user may request the Ministry of Economy modifications to detail in the preceding paragraph related goods, expressing the cause that motivates him. The Ministry will issue the respective Agreement, within twenty (20) working days prior opinion of the Ministry of Finance, which must render it

Within fifteen (15) working days from the date it has been required.
Once submitted the application to amend the detail of goods considered not necessary
for the execution of the activity of the company, the holder may import goods under the regime whose modification has requested suspension of payment duties and taxes during the period when the application is processed; if the order is granted, it will be rolled back to the date of registration of the respective
Declaration of Goods; if it is denied in whole or in part, the User must immediately pay the duties and taxes on goods whose modification is denied.
The Directorate General of Customs will implement the electronic means guaranteeing mechanized operation of the implementation detail not necessary goods, at the time of Teledespacho of goods declarations or equivalent as determined by the Directorate and its subsequent payment of duties and taxes on such property.
Free Zone Users should also check the customs authorities, solvency payment to the Salvadoran Social Security Institute and different
Administrators of Pension Funds, contributions and deductions to their corresponding workers to previous next month, as well as the contributions made by the employer, to one in which the import of goods is made. Such action shall be taken in accordance with Article
9-A of this Act.
Are excluded from the benefits contained in subparagraphs a), b) and c) of this Article, the acquisition of goods
and services: food and drinks, except bottled water; products containing snuff, alcoholic beverages, rental of property, furniture and household goods, luxury or luxury items, vehicles for transport of persons individually or collectively and
goods, services, hotels, in which case, your income free zones shall be subject to the presentation of the declaration of final goods to payment, if it comes to foreign goods or presentation of proof of tax credit or invoice final consumer, if they involve
purchases of such goods in the local market, which record that has paid the corresponding tax; unless the activity requires benefit of such goods or services for the production, assembly or maquila, manufacture, processing, processing or marketing, in which case
be made known to the Ministry of Economy when requesting the necessary authorization to operate , the Ministry must enter it in the respective Agreement issued by the User. "
Art. 16. Chapter III hereby added to the Article 17-A, as follows:.
"Art. 17-A.- The natural or legal persons applying to be classified as users of Zone

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Franca, in accordance with the provisions of this Act shall meet at least one of the following requirements:
a) Initial investment in fixed assets in an amount equal to or greater than five hundred thousand dollars of the United States of America (US $ 500,000.00), achievable in the first two years of operations;
B) operating with an equal or greater number fifty (50) permanent jobs, from the first year of operations;
C) operating with a number equal to or greater than five (5) permanent jobs, from the first year of operations, in the case of marketers.
When the Ministry of Economy determines that there has been compliance with the requirement set out in paragraph a) of this section, be revoked the User Authorization Agreement.
The revocation shall be declared by order issued by the Ministry of Economy and processed in accordance with the procedure laid down in Article 48 of this Law.
In the case of breach of paragraphs b) and c) of this article , will be suspended the rights set forth in Article 17 of this Law, until you remedy such failure; therefore, you must pay taxes during the period applicable to imports made and
other related taxes.
The suspension shall be declared by a resolution issued by the Ministry of Economy and
processed in accordance with the procedure that is established in Article 48 of this Law.
In both cases, the Ministry of Economy notified immediately to the Ministry of Finance for the corresponding effects
.
The natural or legal persons requesting qualify as Free Zone Users

To operate in greenhouses and laboratories must meet the following requirements:
a) Initial investment in fixed assets in an amount equal to or greater than one hundred thousand US dollars
United States of America (US $ 100,000) in the first year of operations;
B) operating with a number equal to or greater than fifteen (15) permanent jobs;
C) To have a minimum area of ​​five thousand (5,000) square meters, in the case of greenhouses and one thousand (1,000) square meters, in the case of laboratories;
D) Formal administrative and financial structure.
When the Ministry of Economy determine compliance with the requirement set out in paragraph a) of this section, be revoked the User Authorization Agreement.
The revocation shall be declared by a resolution issued by the Ministry of Economy and

18
will be processed in accordance with the procedure that is established in Article 48 of this Law.
In the case of breach of the provisions in paragraphs b), c) and d) described above, will be suspended the rights set out in Article 17 of this Law, until you remedy such failure; therefore, you must pay taxes during that period on imports
made and other related taxes. The period of suspension does not interrupt the computation of the total term benefits.
The suspension shall be declared by order issued by the Ministry of Economy and processed in accordance with the procedure laid down in Article 48 of this Law.
In both cases, the Ministry of Economy shall immediately notify the Ministry of Finance , for appropriate action. "
Art. 17. Chapter III hereby added to the Article 17-B, as follows:.
"Art. 17-B.- holders companies engaged in the manufacture of microprocessors; integrated circuits; parts for land, air and sea vehicles; computer parts or equipment and medical devices; equipment for power generation, to be installed in a free zone shall be entitled to an additional period of five years of full exemption from payment of income tax and municipal taxes
.
Those owners of companies whose industrial activity has been declared as strategic,
by Agreement issued by the Executive Branch in the Field of Economics and who are authorized to operate under the free zone regime, have a right term additional ten years of total exemption from payment of income tax and municipal taxes. "
Art. 18. Article 18 is hereby replaced by the following:.
"Art. 18. Natural or legal persons holding companies engaged in activities under the Romans and the second subparagraph of Article 3 and final paragraph of Article 3-A of this Act may request the Ministry of Economy that its establishment is
declared Deposit Refining Assets, DPA, provided that justify the technical reasons why it can not be located in a free zone; in addition, you shall meet the following requirements:
a) Location in areas of industrial vocation, qualified by the competent authority;
B) that its facilities comply with conditions of industrial, labor and environmental safety;
C) administrative and formal financial structure;
D) Buildings and other areas:
1) Administrative offices;

19
2) Office delegation customs and tax, properly equipped;
3) Stand control and surveillance;
4) Perimeter fence;
5) Green area: At least 20% of the total area.
E) Buildings Industrial Buildings:
1) Offices;
2) production or storage area;
3) Storage of raw materials and finished product;
4) loading and unloading zones;
5) necessary health services for men and women;
6) parking of vehicles and containers.
The area of ​​the buildings listed in paragraphs 1) to 5) of paragraph e) of this article,
must add as a whole at least eight hundred square meters.
In the case of species of reptiles and amphibians in captivity must comply only with the literal
b), c) and d) above; and operate in a minimum area of ​​five (5) blocks, described by the competent authority in land use.
The establishments which have been classified as DPA companies will be subject to the provisions of Article 3 of this Act.

To grant the authorization, the Ministry of Economy must have the opinion of the Ministry of Finance, which must be issued within 20 working days has been requested; if such authorization is not issued within aforementioned, the Ministry of Economy
shall extend the corresponding agreement.
The Agreement granting the rating of an establishment such as DPA must bear in
as applicable, the requirements specified in Article 16, second paragraph, of this Act. "
Art. 19. Article 19 is hereby replaced by the following:.
"Art. 19. The owner of a company whose establishment has been DPA declared shall be entitled to enjoy:

20
a) Total exemption for the period which they operate, the rights and duties on the import of machinery, equipment, tools, spare parts and accessories,
utensils and other equipment needed for production;
B) Introduction, with suspension of duties and taxes imposed
import raw materials, parts, components or elements, semi-finished products, intermediate products, packaging, labeling, packaging, samples and standards necessary for the execution of the activity authorized by the period which they operate. Similarly, they may
enter treatment under the above mentioned machinery, apparatus, equipment and any other goods that have to be used to repair the beneficiaries, including products exported to reoccupy as refoulement;
C) Total exemption from taxes levied on the importation, for the period which they operate, lubricants, catalysts, reagents, fuels and any other substances
or materials necessary for the production process, even if not is incorporated directly into the compensating product;
D) Total exemption from income tax on the authorized activity:
1) within ten (10) years from the publication in the Official Journal of Agreement issued by the Executive Body in the Field of Economics, if located in the Metropolitan area
.
Expiration of the period granted, the beneficiary is entitled to a partial exemption
following way:
Sixty percent exemption (60%) of the rate of income tax applicable
during the five (5) years following the expiration of the original deadline set for the exemption. Forty percent
exemption (40%) of the rate of income tax applicable during the ten (10) years following the expiration of the previous term.
2) within fifteen (15) years from the publication in the Official Journal of Agreement issued by the Executive Branch in the Field of Economics, if located outside the metropolitan area.
Expiration of the period granted, the user shall be entitled to a partial exemption as follows:
Sixty percent exemption (60%) of the rate of income tax applicable during the ten (10) years following the expiry of the period originally established
. Forty percent
exemption (40%) of income tax during the ten (10) years following the expiration of the previous term.

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From the thirteenth fiscal year, counted from the publication in the Official Journal of Agreement Qualification issued by the Ministry of Economy, profits or dividends,
from the favored activity will be taxed at the income tax.
During the twelve fiscal years, after publication in the Official Journal of the Agreement
Qualification issued by the Ministry of Economy, the exemption in the case of companies will apply both to the company holding, as partners or individually considered, regarding profits or dividends from shareholders favored activity.
If one or more members are legal persons, this benefit will be exclusive to them, which can not move on its partners.
E) Total exemption from municipal taxes:
1) within ten (10) years from the publication in the Official Journal of Agreement issued by the Executive Branch in the Field of Economics, if it is located in the Metropolitan area.
Expiration of the period granted, the beneficiary will be entitled to a partial exemption as follows:
Ninety percent exemption (90%) of municipal taxes, applicable during the first five (5) years following the deadline that was originally set.
Seventy-five percent of exemption (75%) of municipal taxes applicable on.

2) within fifteen (15) years from the publication in the Official Journal of Agreement issued by the Executive Branch in the Field of Economics, if located outside the metropolitan area
.
Expiration of the period granted, the beneficiary will be entitled to a partial exemption
follows:
Ninety percent exemption (90%) of municipal taxes, applicable during the
following the deadline originally established ten (10) years.
Seventy-five percent of exemption (75%) of municipal taxes applicable
onwards.
The Municipal Councils within its legal powers, in order to promote
the development of their respective municipalities, may provide additional benefits to this Act.
F) Total transfer tax exemption real estate, for the acquisition of those

22
goods to be used by the authorized activity.
For the importation of goods qualifying for exemption, as provided in this Act, qualified enterprises as deposit Inward not previously need approval process of the order, or the application and order duty free import by
so operation is authorized under the single presentation, in due form, the declaration of respective goods.
The Ministry of Economy should be incorporated into the Agreement issued on the occasion of the authorization of a DPA, the detail of the goods that are not deemed necessary for the execution of the authorized activity, with their respective tariff nomenclature, in particular or general, using sections
chapters, headings or subheadings, as appropriate.
DPA holder may request the Ministry of Economy modifications to the detail of goods
listed in the previous paragraph, expressing the cause that motivates him. The Ministry after appropriate assessment, issued the respective Agreement amending the above, within twenty (20) working days prior opinion of the Ministry of Finance, which must render it within fifteen (15) business days
counted from the date on which it has been requested.
Once submitted the application to amend the detail of goods considered not necessary for the execution of the activity of the company, the holder may import goods under the regime whose
modification has requested suspension of payment duties and taxes during the period when the application is processed; if the order is granted, it will be rolled back to the date of registration of the respective Declaration of Goods; if it is denied in whole or in part, the holder shall immediately pay
duties and taxes on goods whose modification is denied.
The Directorate General of Customs will implement the electronic means guaranteeing the operation of mechanized
implementation detail not necessary goods, at the time of Teledespacho of goods declarations or equivalent as determined by the Directorate and the consequent payment of duties and taxes on such property.
Holders companies whose establishments have been declared DPA, they shall check the customs authorities solvency payment to the Salvadoran Social Security Institute and different
Pension Fund Administrators, as well as the contributions made by the employer contributions and deductions from their workers the corresponding preceding that in which the sale or import of goods is made next month.
Such verification should be made in accordance with the provisions of Article 9-A of this Act.
Are excluded from the benefits contained in subparagraphs a), b) and c) of this Article, the acquisition
of the following goods and services: food and drinks, except bottled water; products containing snuff, alcoholic beverages, rental of property, furniture and household goods, luxury or luxury items, vehicles for transport of persons individually or collectively and
goods, services, hotels, in which case, your income to deposit Inward shall be subject to the presentation of the declaration of final payment goods, if it comes to foreign goods or presentation of proof of tax credit or invoice final consumer, if they involve purchases of such goods in the local market, which record that has been paid

2. 3

Corresponding tax; unless the activity requires benefit of such goods or services for the production, assembly or maquila, manufacture, processing, processing or marketing, in which case
will be made known by the Ministry of Economy when requesting the necessary authorization to operate , the Ministry of Economy must enter it in the respective Agreement which grants the DPA. "
Art. 20.- hereby added in Chapter IV, Article 19-A, as follows:.
"Art. 19-A.- The natural or legal persons applying to be classified as DPA, in accordance with the provisions of this Act shall meet at least one of the following requirements:
a) Initial investment in fixed assets in the amount equal to or greater than eight hundred thousand dollars of the United States of America (US $ 800,000), achievable in the first two years of operations. No initial investment accounted for as the acquisition of existing infrastructure;
B) Operate with a number equal to or greater than seventy-five (75) permanent jobs, from the first year of operations;
C) Operating with no less than fifteen (15) permanent jobs number from the first year of operations, in the case of marketers.
When the Ministry of Economy determine compliance with the requirement set out in paragraph a) of this section, be revoked the Authorization Agreement to DPA.
The revocation shall be declared by order issued by the Ministry of Economy and processed in accordance with the procedure laid down in Article 48 of this Law.
In the case of breach of paragraphs b) and c) above, DPA will suspend the rights set out in Article 19 of this Law, until you remedy such failure; therefore, you must pay taxes during the period applicable to imports made and
other related taxes.
The suspension shall be declared by order issued by the Ministry of Economy and
processed in accordance with the procedure laid down in Article 48 of this Law.
In both cases, the Ministry of Economy shall immediately notify the Ministry of Finance for the corresponding effects
. "
Art. 21.- hereby added in Chapter IV, Article 19-B, as follows:.
"Art. 19-B.- Legal persons applying to be classified as DPA to engage in activities related species of amphibians and reptiles in captivity, must meet the following requirements
:
a) Initial investment in fixed assets for not less than one hundred thousand US dollars of the United States of America (US $ 100,000) in the first year of operation amount;

24
b) Operating with no less than fifteen (15) permanent jobs in the first year of operations number;
C) Formal administrative and financial structure.
The natural or legal persons applying to be classified as DPA for the activities set out in Roman III) the first paragraph of Article 3 of this Act shall meet the requirements specified in the seventh paragraph of Article 17-A of this Law.
in both cases, when the Ministry of Economy determine compliance with the requirement set out in paragraph a) of this Article, be revoked the Authorization Agreement to DPA.
The revocation shall be declared by order issued by the Ministry of Economy and processed in accordance with the procedure laid down in Article 48 of this Law.
In the case of breach of paragraphs b) and c) is DPA will suspend the rights set out in Article 19 of this Law, until you remedy such failure; therefore, you must pay taxes
applicable for the duration of the suspension. The period of suspension does not interrupt the computation of the total term benefits.
The suspension shall be declared by order issued by the Ministry of Economy and
processed in accordance with the procedure laid down in Article 48 of this Law.
In both cases, the Ministry of Economy shall immediately notify the Ministry of Finance for the corresponding effects
. "
Art. 22.- hereby added to Chapter IV, Article 19 - C, as follows:
"Art. 19-C.- holders companies engaged in the manufacture of microprocessors; integrated circuits; parts for land, air and sea vehicles; parts or equipment
computer and medical devices; equipment for power generation to be installed in a DPA shall be entitled to an additional period of five years of full exemption from payment of income tax and municipal taxes.

Those owners of companies whose industrial activity has been declared as strategic by Agreement issued by the Executive Branch in the Field of Economics and who are authorized to operate as
DPA will have a period of ten additional years of law of total exemption from payment of income tax and municipal taxes. "
Art. 23. Article 20 is hereby replaced by the following:.
"Art. 20.- The machinery or equipment that has more than five years after it introduced
franchise or lien release by the beneficiaries of the Act may be transferred without payment of the corresponding taxes.
For this purpose, the beneficiary shall submit to the appropriate Customs Declaration

25
Commodity definitive import regime, annexing the goods declaration that the goods were initially introduced. If not checked the above, proceed
payment of duties and taxes in the case of entering the national customs territory. "
Art. 24. Article 22 is hereby replaced by the following:.
"Art. 22. The length of stay of goods entered for its improvement under Temporary Admission for Inward, will be up to twelve (12) months
non-renewable, counted from the acceptance of the declaration of goods.
The deadline for transfers is defined as follows:
a) For the definitive transfer: Up to twelve (12) months from the date on which the goods
first entered the regime temporary admission, through acceptance of the Declaration of Goods;
B) For temporary transfers: Up to six (6) months from the date of transfer of goods recorded in the document issued for that purpose; but which shall not exceed the total calculation of the period of twelve months in the case of the DPA;
C) For the definitive transfer of a free zone to a DPA: Up to twelve (12) months from the date of liquidation of the goods declaration canceling Free Zone System, for which the DPA should transmitting the Declaration of goods corresponding to the delegation
free zone to output them.
The provisions of paragraph b) of the preceding paragraph also applies to shipments by
Users of Free Zones.
Failure to meet the above deadlines will result in the obligation to pay the corresponding taxes
and penalties under the relevant legislation applicable to them.
The transfers will be made using the formats and physical and electronic means to be established by the Directorate General of Customs, by general administrative provisions. For those transfers that do not involve transfer of ownership, it must also be issued a Notice of Referral
.
It is special case in which there is no transfer of ownership, when moving to another
beneficiary is done by order of contractor duly verified.
For those goods as have admitted temporarily and does not involve transfer
domain, the respective contracts will determine their permanence under the Temporary Admission for Inward, which may not exceed twelve months.
The deadline for the formalization and / or confirmations to the beneficiaries of the Act shall

26
up to three business days after the entry of the goods, which must remain available to the Customs until the lift is granted under the provisions of the Uniform Customs Code
Centroamericano, CAUCA and its Regulations.
When temporary transfers generate qualified as users of free trade zones or DPA
to companies located within the national customs territory enterprises within permanence of such goods shall be two months.
The Directorate General of Customs may authorize in that users of the same free zone formalize their definitive transfers cumulatively, when the nature and volume of operations warrant. "

27
Art. 25. Article 23 is hereby replaced by the following:.
"Art. 23. The holder of a qualified person as Usuaria FTZ company may temporarily transfer goods to the national customs territory, in order that third parties subcontracted by him, perform processes that add value to property, complete processes
manufacturing, processing or repair of the goods.
Qualified as DPA companies may make temporary transfers of machinery and equipment

The national customs territory for repair. Only qualified companies as dedicated DPA related to handicrafts, textile, garment maquila or activities, may be authorized to perform other processes set forth in the preceding paragraph.
In both cases, such holder will be responsible for the payment of duties and taxes, if such goods did not enter again the user or DPA that referred them.
Transfers involve no extension of the deadline laid down in Article 22 of this Law.
Any shipment shall be made using the formats and physical and electronic means to be established by the Directorate General of Customs.
Order to make temporary transfers to national customs territory referred to in this article
, the user must notify once the relevant customs delegation and the DPA to the Directorate General of Customs, who will perform or cease to perform such operations. "
Art. 26. Article 24 is hereby replaced by the following:.
"Art. 24.- assets of the national customs territory may be temporarily exported to a Zona Franca
or DPA, in order that they may be subject to processing operations, manufacturing, processing, repairing or any other services required. The deadline for reimportation the national customs territory shall be six months from the date of entry
to the Zona Franca or DPA.
Such goods to be reimported into the national customs territory, they must pay duties and taxes
corresponding only to the part of non-national added value incorporated in the process. For purposes of this operation, the tariff Most Favored Nation (MFN) applies.
The shipment of goods referred to the above services, it shall be treated for tax purposes for temporary export for outward processing; however, they are carried out under cover of the form for that purpose shall establish the Directorate General of Customs. "
Art. 27. Article 25 is hereby replaced by the following:.
"Art. 25. Sales or transfers of goods and services necessary for the authorized activity, carried out by natural or legal persons established in the national customs territory to a user or a DPA Zona Franca, will be affected at a rate of zero percent tax on the transfer of movable property and the provision of services and also items will be applicable to them

28
76 and 77 of the Tax Law Transfer of Movable Property and Provision of Services. In no case they will be considered as necessary for their activities, goods and services referred to in the last paragraph of
Articles 17 and 19 of this Act, unless the exception under those provisions; accordingly, such property shall be assigned to the rate established in Article 54 of the Tax Law Transfer of Movable Property and Provision of Services.
In transfers of goods and services or other transactions entered into between a beneficiary of this law and natural or legal persons established in the national customs territory, they must be applied
market prices.
To this end, the Ministry of Finance, through the Directorate General of Internal Revenue,
in exercising their powers of control, may request the taxpayers mentioned in the preceding paragraph, to present detailed information operations performed and based on this, make appropriate adjustments in costs, deductions, income, profits, losses and any other
concept of operations declared by taxpayers, through the reliable determination of the price or value of transactions in which the taxpayer has acquired or alienated goods or services for which it will apply the procedure laid down in the Tax Code.
Those transactions performed beneficiaries of this Act, outside authorized in the respective scopes, cause duties and taxes on imports, the income tax, municipal taxes and the tax on the transfer of movable property
and the provision of services.
Operations domain transfer to the national customs territory of goods carried
by a Marketer, cause the transfer tax of movable property and the provision of services and will not apply the incentives established in Art. 17 d) and e) and Art. 19 d) and e), both of this Act. city tax is payable in the proportion resulting

Split its domestic market sales of total sales, in relation to its assets. "
Art. 28.- Art 26 hereby replaced by the following:.
"Art. 26. The products brought into the country under this Act may
mobilize the national customs territory, without payment of the respective duties and taxes, in the case of transfer between users of the Free Trade Zones; DPA; Users of the Free Trade and DPA or subcontracted third parties for the operations referred to in Article 23 of this Law Zones.
In the case of transfers between DPA or DPA free zones and free zones DPA must be made within the period specified in Article 22 of this Law.
Such a transfer, when its origin is in a free zone, will be requested through the relevant form, which will validate the operation with the sole signature of the customs authority outstanding.
When it comes to DPA, the transfer will be authorized by the Customs Special Agent Customs Agent or involved in the operation or the legal representative.

29
In the case of temporary transfers, will be the head of the authorized company that generates the transfer or his legal representative, responsible for the payment of duties and import taxes and other related charges
, once expired deadline set by law.
failure to comply will be punished in accordance with the provisions of Article 5, paragraph q) of the Special Law
Customs Infractions Punishment.
If you enter the goods after the deadline or that it fails to return, must submit the declaration of goods
payment and proceed with the disciplinary process where appropriate. If at the time of the return of the goods, the receiving user any closed operations, they must be made available to the Directorate General of Customs, for appropriate action, which
considered the provisions of Article 40 of this Law.
for the provisions of this Article, empowering the Directorate General of Customs, to develop
control tools and relevant facilitation. However these tools may be developed by beneficiaries and validated by the Directorate General of Customs. "
Art. 29.- Art.27 hereby replaced by the following:.
"Art. 27.- permission of the Ministry of Economy, raw materials and inputs
may be destined for final consumption in the national customs territory, paying import duties and taxes on the invoice value, which in the case of materials raw materials and inputs may not be less than the value of the Cost, Insurance and Freight (CIF by its acronym in English)
proportional stated in the Declaration of goods which were introduced such goods.
In the case of grants to the Government of the Republic and public or private institutions,
non-profit, humanitarian, educational or other services to the community character, tax exemption may be granted, upon qualification Ministry of Economy and exemption approved by the Legislature.
The beneficiary may sell to the domestic market waste and waste from their activity, paying duties and taxes due on the customs value.
Equal treatment apply to products and defective products.
When waste and scrap are allocated to solid waste landfills authorized
or a duly accredited by the environmental authorities for destruction company will not pay any duties and taxes. The Directorate General of Customs shall exercise the respective control.
In the case of goods which by their terms or state are not susceptible to industrial or commercial, such as use products and defective products may be destroyed upon application to the customs authority, in accordance with the CAUCA and its
Regulation.
The destruction will be done by account and cost of the person concerned in the presence of the customs authority, under the procedures established in the CAUCA and its Regulations. "

30
Art. 30.- hereby added to Chapter V, Article 27-A, as follows:.
"Art. 27-A.- The Customs Service granted facilitation and simplification of processes, the beneficiaries of this Act to help strengthen their controls and computer systems and have a system of online cancellation system. "
Art . 31.- Sustitúyense in Article 28, letters b) and n), plus, points p), q), r) and s).; modifying the letter k) and the last paragraph, as follows:

"B) maintain an electronic record of inputs, outputs and inventory balances and table showing discharge by imports available online
General Directorate of Customs. When the register may not be in line with the Directorate General of Customs, the beneficiary must register in electronic and magnetic media or any other means required by the Ministry of Finance, through the Directorate General of Customs, in accordance
applicable regulations, the movement of inventory table showing discharge by imports, import movement and all information relating to import, export, transit and transfers you make for the respective fiscal control,
which must be submitted using the same means, within twenty working days to the expiration of the fiscal year to the Directorate General of Customs, without prejudice need to submit it at its request;
K) Generate shipments governed in Arts. 23 and 26 of this Law, complying with the requirements set out in them and in the terms provided for in Article 22 of this Law;
N) In the case of the DPA, keep their facilities fully and completely defined and independent of any other company; if share physical spaces with others, they must have separate storage areas and operation and independent personnel,
so that there is no possibility of confusion of raw materials, production processes, or national customs and extra customs territory thus facilitating independence and control operations covered by this scheme. They must keep in the cellar, separate
properly, goods suspension arrangement of those nationalized when such goods are combined or mixed in the production process and keep track of inventory that allows to identify the product cleared for the purpose of
establish traceability of your destination;
P) Maintain records of costs by selling goods to the domestic market, when
duly authorized for this purpose and also complying with the payment of the corresponding taxes;
Q) In the case of Free Trade Zone Users, inform the Customs Service, within twenty working days after the end of the fiscal year on the outstanding property to cancel and may include this information in the record to which referred to in subparagraph b) of this Article;
R) Comply with the authorized destination of goods;
S) Keep a detailed record of inputs used in the production process in relation

31
compensating products and display such Registry, at the request of the General Customs Directorate, in exercising its powers of control in relation to the operations
under investigation.
The following are considered violations of this Act:
1. Minor violations: Failure to set out in subparagraphs a), c), f), g), h), i) and q); of this article;
2. Serious violations: Failure to the provisions of subparagraphs b), d), e), j), k), l), m), n) o), p) and s) of this section;
3. Very Serious violations: Failure to literal r) of this Article "
Art.. . 32.- hereby replaced in Article 30, paragraph c) and reformed the second paragraph, as follows:
"c) To provide temporary and update the computer and office equipment necessary for the Customs Delegation can provide service Users of the corresponding Free Trade Zone; as well as cover the costs involved in maintaining them, materials, supplies and
maintain continuous connectivity services information technology and communication (internet connectivity service), a secondary link main power plant, according to the volume and nature of operations, according to the requirements
set the Directorate General of customs to facilitate the exercise of their tax and customs function.
The Directors may apply to the Directorate General of Customs, when deemed necessary, extension of customs officers, as well as the extension of time the customs service, in which case the user concerned must cancel the Directorate costs || | required operation. For these purposes, the Ministry of Finance will issue the Executive Agreement by which regulate charging for extra services. When trading volume requires expanding the service to night hours, the administrator must

Build and adapt the necessary installations in the customs delegation to the rest of the customs staff. Requirements deemed necessary for better performance shall be regulated by administrative
general provisions issued by the Directorate General of Customs. "
Art. 33.- hereby replaced in Article 31, the first paragraph by the following:.
"Art. 31. Holders authorized to operate pursuant to this Act, which failed to meet the content of this, companies will be sanctioned administratively by the Ministry of Economy
, subject to tax penalties that may be applicable. "|| | Art. 34.- Intercálase between the Arts. 36 and 37, Article 36-A, as follows:.

32
"Art. 36-A.- In the case that the Ministry of Finance, through the General Directorates of Customs and Excise, finds serious infringements, as provided in Article 28 of this Law or
sales made to the local market , without payment of duties and taxes, notify the situation to the Ministry of Economy.
The Directorate General of Customs will grant the User of the Free Zone or DPA within 30 calendar days to regularize the situation detected, this period shall run from the day following the respective notification, in which it should noted that not solved the situation in
the time limit set, the Directorate General of customs shall as a precautionary suspension of access to their computer systems to measure customs operations.
The User of the Free Zone or DPA will be rehabilitated in their access to computer systems to rectify the situation detected. "
Art. 35.- Intercálase between the Arts. . 40 and 41, Article 40-A, as follows:
"Art. 40-A.- When a beneficiary of this Act, notify the definitive closure of operations to the General Customs
shall submit the information and documentation demonstrating cancellations of goods declarations by imports under the free zone regime or temporary admission for inward processing and payment of duties and taxes for goods covered in those who have not demonstrated their cancellation or discharge.
The closure or abandonment without notifying the Directorate General of Customs and without making cancellations imposes the customs procedure constitutes the crime of defrauding Customs Revenue,
sanctioned under Article 22 of the Special Law Punishment Infractions for Customs, without prejudice to civil and criminal liability giving rise.
This is without prejudice to the revocation of benefits rests with the Ministry of Economy. "
Art. 36.- S.44 hereby replaced by the following:.
"Art. 44. In the application, the applicant shall state the activity to which the customs regime
you want to avail, general characteristics of the company and its legal documentation and any other information set be devoted Regulation this Act.
the Ministry of Economy is empowered to issue rulings of general application, to determine the activities and authorized markets for producers and marketers referred to in this Law. "
Art. 37. Article 45 is hereby replaced by the following:.
"Art. 45.- The Ministry of Economy shall decide within 25 working days application User rating as Free Trade Zone and within 35 working days application to operate as DPA. It means comprised within the abovementioned time limits established for the opinion shall issue the Ministry of Finance.

33
For users who do not change their unauthorized activity, which are solvents to the pension and social security institutions and require
enlargements or reductions, temporary or permanent facilities or change location in both cases in the same free zone in which they operate, they must submit to the Ministry of Economy, a note signed by the legal representative or legal guardian; such signature must be submitted notarized and
note shall detail at least the location of the plant and the area to increase or decrease, annexing the plane location within the FTZ and its facilities and the lease or sale of the property, if any. The agreement shall be issued within a period not exceeding
ten (10) working days from the date of filing of the application.
Applications for DPA, where the preceding paragraph refers to must be processed

In accordance with the provisions of this Act and its Regulations.
Of any agreement issued by the Ministry of Economy under this Act shall
notify the Ministry of Finance and concerned by transcription of it. "
Art. 38.- Intercálase between the Arts. 45 and 46, Article 45-A, as follows:.
"Art. 45-A.- In those cases in which the Ministry of Finance should issue an opinion and not express, the Ministry of Economy decide as it deems appropriate. "
Art. 39. Article 50 is hereby replaced by the following:.
"Art. 50.- Once the resolution firm Economy Ministry to suspend or withdraw the benefits, the respective Agreement, which will notify the interested parties and the authorities concerned and sent
publish in the Official Journal will be issued. "
Art. 40.- hereby added to Chapter VIII, Article 54-B, as follows:.
"Art. 54-B.- Natural or legal persons prior to the entry into force of this Decree
have operated in the national customs territory and taxed income tax, can not benefit from this law.
De proceed likewise in the case of applicants who are the result of a merger or transformation of companies which were previously taxed the tax mentioned, in order to enjoy the rights of this Act.
When in the exercise of their powers of oversight, the Directorates-General Internal Revenue and Customs, acting jointly or separately, check that a beneficiary of Law
occasion of obtaining the status of access to the scheme, did any of the situations described in the preceding paragraphs, shall notify the Ministry of Economy for it to launch the procedure for revocation. Revoked the benefits, we will proceed to the payment of taxes and other related charges to which any, from the time it was authorized to operate

34
under this Act.
The Ministry of Economy will initiate the revocation procedure within fifteen (15) working days after receipt of the respective notification, which shall be processed in accordance with the provisions in articles 48 to 50 of this Law.
If it were to determine that there has been misuse of the enjoyment of such benefit in the cases described in the preceding paragraphs, shall not operate the expiry of the power of control and settlement of the tax
and accessories. "
Art. 41.- hereby added to Chapter VIII, Article 54-C, as follows:.
"Art. 54-C.- developmentalist and Managers Free Zones that are operating at the time of entry into force of this Decree, continue with the total exemptions until
the December 31, 2015 or until the deadline set in the respective Agreement, if that date is later. After this deadline, both developers and administrators, and partners or shareholders in the case of profits or dividends, enjoy additional five years in the same conditions and scope
set out in subparagraphs a) and b) of Article 11 this Act.
in the event that the same person performs the functions of Developmental and Free Zone Manager, it will enjoy both benefits.
The developers and administrators to referred to in this article have a term of five years additional exemption law, provided that during the period of the exemption
have invested in an expansion of the Free Zone that meets features set forth in the last paragraph of Article 11 of this Law. "
Art. 42.- hereby added to Chapter VIII, Article 54-D, as follows:.
"Art. 54-D.- holders qualify as Free Zone Users or DPA that the date of entry into force of this Decree are operating and whose activities are covered by Article 3 of this Act and its partners or shareholders in companies the case of profits or dividends distributed
shall enjoy full and partial exemptions from payment of income tax and municipal tax, within the terms, rates, terms and scope established, where appropriate, in paragraphs 2, literals d) and e) of Article 17 of this Act and shall comply only with any of the following requirements
:
a) have and maintain jobs in the company in a number not less than established in
appropriate, in articles 17-A and 19-A of this Act; or
b) have made investments in fixed assets was not less than one hundred thousand amount (US $ 100,000) dollars

United States of America, from the date of the act that authorized them, having to maintain a number of posts of work equivalent to average jobs in the last three calendar years, or equivalent to the average jobs the time elapsed since the date of authorization, whichever is lower.

35
For the verification of compliance with these requirements, the owner of the company has a period of six (6) months from the effective date of this Decree, which will keep inthe period
forth with their respective benefits Authorization Agreement Regime.
For the purposes of this Article, the owner of the company will present to the Ministry of Economy an affidavit affidavit, attaching the following documents: forms of the Salvadoran Social Security Institute or extended record by that institution, for the case of
subparagraphs a) and b) of this section; and the certificates issued by certified public accountant or external auditor of the accounting records for the case of item b). The owner of the company continue to enjoy the benefits established in their respective Authorization Agreement, until the Ministry of Economy
resolved as appropriate, without prejudice to the powers of that Ministry to suspend benefits in case of breach of the requirement jobs until remedy such failure; or revoke the same infringement the investment requirement. The period of suspension does not interrupt the computation of the total
term benefits. "
Art. 43.- hereby added to Chapter VIII, Article 54-E, as follows:.
"Art. 54- E. Users and DPA, that when the term of this Decree are operating and production activities which are comprised in Article 3 of this Act,
have a period of ninety (90) days from its effect, to apply to be qualified to perform marketing activities.
Being qualified, may be located adjacent to the producer's premises, regardless of the type of goods they market, fulfilling the provisions of subparagraphs a), b) and c) and paragraph 1) of paragraph d) of Article 18 of this law. in this case, enjoy total and partial exemptions
payment of income tax and municipal tax, within the terms, rates, terms and scope established in its case, in paragraph 2, the literal d) and e) of Article 17 of this Law, provided they comply with any of the following requirements:
i) Have and maintain jobs in the company for a number equal to or greater than five (5) jobs permanent, from the first year of operations; or
ii) they have made an investment in fixed assets for an achievable amount in the first year of not less than one hundred thousand (US $ 100,000) dollars of the United States of America
operations.
Those who have been authorized for marketing activities
accordance with the provisions of this article, I shall not apply Article 3-A, paragraph a), 17-A, 18, with except for the requirements stated in the second paragraph of this article and 19-a. "
Art. 44.- hereby added to Chapter VIII, Article 54-F, as follows:.
"Art. 54-F.- holders companies using free trade zones or DPA that the entry into

36
force of this Decree are not engaged in any of the activities included in Article 3 of this Act, as well as those that do not meet any of the requirements or not
timely submission of the application to which referred to in Art. 54-D of this Law may continue to operate and enjoy the benefits and incentives that were granted to him until 31 December 2015. After this date, will not enjoy the benefits.
In this case, users who are located in free zones, once the period of exemption expired, may continue to operate in the free zone in which they are situated,
enjoy any of the benefits established in this Act, to exhaust inventories to maintain, or a maximum of two years, whichever comes first. These Members shall comply with all tax and customs obligations applicable to companies operating under the regime of this Act, having the
Ministry of Finance through their addresses, set by administrative rules, the checks to be them applicable. In the same condition, they may stay in the Zona Franca those users who voluntarily give up the profits.

Accomplished any of the conditions in the preceding paragraph refers to not be able to operate in the free zone and should be removed. "
Art. . 45.- hereby added to Chapter VIII, Article 54-G, as follows:
"Art. 54- G.- Users of Free Zones and DPA that are operating at the time of entry into force of this Decree, shall have a period of six (6) months to request the Ministry of Economy the adequacy of its Agreement with regard the inclusion of tariff items not considered necessary
of authorized and other requirements established in the second paragraph of Article 16 of this Law activity.
the Economy Ministry will send a copy of the list of tariff items to the Directorate General of Customs to issue an opinion within a period not exceeding twenty working days from the date on which it has been requested.
Authorized For those companies that require changes in tariff headings after the suitability of the Agreement shall follow the procedure set out in paragraphs
fourth of Articles 17 and 19 of this Act.
Details of goods not necessary for the authorized activity will be implemented within
up to eighteen (18) months from the effective date of this Decree, as long as the Directorate General of Customs has implemented the computer means to ensure: || | 1) mechanized application in the Teledespacho of goods declarations or other means determined by the Directorate;
2) Payment of duties and taxes;
3) agility in operations.

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A and DPA Users who breach the obligation to request the readjustment of its agreements, the Directorate General of Customs shall suspend the computer systems
pursuant to the provisions of Article 36-A of this Act.
While there has been adequate Authorization Agreement Regime User or DPA, they
continue to operate in accordance with its corresponding Agreement issued by the Ministry of Economy, or where appropriate, in the timely document issued for the purpose by the Administrator of the Free Zone. "
Art. 46.- hereby added to Chapter VIII, Article 54-H, as follows:.
"Art. 54-H.- All applications are pending the entry into force of this Decree shall be resolved in accordance with current at the time of filing law. "
Art. 47.- This Decree shall enter into force eight days after its publication in the Official Journal.
GIVEN IN THE BLUE ROOM OF THE LEGISLATIVE PALACE: San Salvador, on the twentieth day of February of the year two thousand and thirteen.
OTHON Sigfrido Reyes Morales, president.
ALBERTO ROMERO ARMANDO RODRIGUEZ, GUILLERMO ANTONIO NAVARRETE GALLEGOS, FIRST VICE. SECOND VICE PRESIDENT.
MERINO JOSE FRANCISCO LOPEZ, FRANCISCO ROBERTO DURAN LORENZANA, THIRD VICE. FOURTH VICE.
JOSE ROBERTO D'Aubuisson MUNGUIA, FIFTH VICE.
PEÑA LORENA GUADALUPE MENDOZA, CARMEN ELENA CALDERON SOL DE ESCALON, First Secretary. Second Secretary.
SALGADO SANDRA MARLENE GARCIA, JOSE RAFAEL MACHUCA Zelaya, Third Secretary. Fourth secretary.
IRMA VASQUEZ PALACIOS LOURDES, MARGARITA ESCOBAR, FIFTH SECRETARY. SIXTH Secretariat. JOSE FRANCISCO
ZABLAH SAFIE, REYNALDO ANTONIO LOPEZ Cardoza seventh Secretary. EIGHTH SECRETARY.

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Presidential House: San Salvador, on the twenty seventh day of February in the year two thousand and thirteen.
PUBLISH, Carlos Mauricio Funes Cartagena
,
President of the Republic.
Jose Armando Flores German Economy Minister
.
OJ No. 41 TOMO No. 398 DATE: February 28, 2013
RM / EGCG 03/03/2013 TRANSITIONAL PROVISIONS
:
TRANSITIONAL PROVISION GRANTING NEW DEADLINE TO SET FORTH IN THE ARTS. 54-D INC. 2 and 54-E INC. 1, so that companies submit their application
QUALIFYING FOR MARKETING activities. DL No. 210, 3 DECEMBER 2015;
OJ No. 236, T. 409, 22 DECEMBER 2015 (VENCE 01/20/2016)

JQ 02/16/16 LEGISLATIVE INDEX