Salvadoran Exporters Demand Compensation for Removal of ‘Drawback’

The ‘Drawback’, a 6% incentive for Salvadoran exporters, was removed on January 1st.

Thursday, February 4, 2010

Exporters gathered at Coexport (Salvadoran Exporters Corporation) complain that the current proposal for promoting exports does not include a compensation for the removal of the incentive. They appreciate the inclusion of their suggestions for greater support to new exports, as well as increasing the number of exporting companies.

From Elsalvador.com: “The country’s exporters understand the need to comply with WTO dispositions, but believe they must be compensated for the costs they assume when selling abroad”.

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More on this topic

Delay in regulating Law for Production Promotion

December 2011

The regulation establishing export incentives for "draw back" substitutes is still pending approval in El Salvador.

During the inauguration of the Third Meeting of Exporters, the Exporters Corporation of El Salvador (Coexport) called on the Government to establish the dates for the entry into force of the regulations on the Law for the Promotion of Production, which establishes new incentives.

Salvadoran Authorities Propose New Measures to Foster Exports

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The government proposed a new strategy to promote exports, which includes 21 different programs.

One of the programs will provide bonds for companies implementing responsible labor practices, while another will reward companies producing under environmental rules.

Héctor Dada, Economy Minister, told Laprensagrafica.com that "we are not focusing just on increasing exports, but on fostering the production of exportable goods.

El Salvador Will Maintain Subsidy for Exporters

October 2009

Until there is a new incentive policy, the government will maintain the "drawback", a 6% reimbursement on exports outside Central America.

This new policy will be discussed by a technical commission composed by members of the Salvadoran Exporters Corporation and the Economy Ministry.

El Salvador: Call to Extend Exporter Refunds

May 2009

The export sector seeks a 4-year extension of the 6% refund, which expires at the end of 2010.

Both the Corporation of Exporters of El Salvador (COEXPORT) and the Salvadoran Association of Industrialists (ASI) are requesting a 4-year extension of the 6% refund or drawback for exporters from the new government.

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