In El Salvador, it is proposed that the law discussed in the Assembly, considers the reduction of minimum requirements for investments made in special economic zones, to compensate for the disadvantages of lack of productive activity in the area.
In July 2018, the Executive Branch presented to the Legislative Assembly the draft Law on Special Economic Zones (LZEE), which is being analyzed by the Economy Commission.
From October 1 to 3, Guatemala will be hosting a Conference on Free Zones of the Americas, where topics such as the potential and benefits of companies in the sector will be discussed.
From a statement issued by the Association of Free Zones of the Americas:
Guatemala, September 19, 2018.- The Association of Free Zones of the Americas - AZFA - together with the Santo Tomas de Castilla Free Zone, Chamber of Industry, Chamber of Commerce and the Ministry of Economy, presented the twenty-second Conference for Free Zones of the Americas to be held from October 1 to 3 at Hotel Casa Santo Domingo, in Antigua Guatemala.
With the modification of the Free Zones Law, it will now be possible to accumulate up to 25 samples which do not have a commercial value in a single declaration.
Jaime Campos, executive director of the Regulatory Improvement Organization, told Elmundo.sv that the reform "...'will help the investment climate in the country' because the reform introduces the concept of the 'accumulated goods declaration', which will allow imports or exports of up to 25 samples in a single declaration."
Grupo Aristos has announced plans to invest $75 million over five years in the construction of two new industrial buildings and an office at the American Industrial Park.
The company expects to start construction of the new industrial buildings next year, once the paperwork and necessary permits have been completed.Edwin Escobar, executive director of American Industrial Park, told Elsalvador.com that"... although everything is moving along, it is not going at the speed they want, because 'time spent on red tape is too slow," explained the executive. "
Ten companies have already shown interest in setting up in the logistics center to be developed in Tocumen, whose business plan and regulations for a free zone could be ready in September.
Among the activities that will be developed by the companies operating in the logistics park are packing and repacking, as well as product manufacturing and other complementary activities.
The 50 companies already operating at Tocumen's airport facilities will be able to access free trade zone incentives if the request made by the administration of the terminal is approved.
The documentation was submitted to the National Commission of Free Zones at the Ministry of Trade and Industry (MITI), and there will be a 30 day period to review and approve the application.
A study by PROCOMER indicates that for every dollar exonerated in the period between 2010 and 2014, companies in the free zone regime generated $5.7 on average for the country.
From the executive summary of the study by PROCOMER entitled "Free Zone Balance 2010-2014":
4. Country Net Profit (CNP) for the operation of the Free Trade Zone Regime (FZR) reached an average of US $2.556 billion a year in 2010-2014.
From November 4th to 6th a conference will be held in Managua attended by users of free zones, industrial parks and representatives from customs, exporters and freight forwarders in the region.
Association of Free Zones:
The XIX Conference of Free Zones of the Americas will take place on 4 to 6 of November in Managua, Nicaragua.
The event is being organized by the National Commission of Free Zones of Nicaragua and ProNicaragua at the Hilton Hotel.
If free zones -with their tax breaks and other privileges- are good for the economy, why isn't the entire country made into a free zone?
EDITORIAL
Why not provide companies founded with Central America capital the same benefits and privileges enjoyed by foreign firms operating under free zone regimes? The job creation and contribution to the economy that can be made by companies in free zones because they enjoy these privileges should be able to come from business founded with Central American capital as well, which in contrast to foreign firms, have to deal with excessive regulations and bureaucracy in the States of Central America.
From 12 to 14 November representatives from free zones in Latin America will be gathering together in Panama City to discuss issues such as changes in legislation and the role of free zones in the logistics chain.
The topics to be discussed range from innovation and new business in free zones and industries to changes to key legislation for the creation of logistic nodes.
A market of one billion consumers has been opened up to products that are manufactured, processed, assembled or finished in Panamanian Free Trade Zones, without requirements for having value added locally.
Companies under the free zone regime in Panama are offering local and foreign companies the ability to export to China under the special conditions that govern them, with the aim of achieving the high production volumes required.
Companies starting operations in free zones outside the metropolitan area will be fully exempt from income tax for 15 years.
From a press release issued by the Legislative Assembly of El Salvador:
With 82 votes from all of the parliamentary groups, the Legislature approved tonight reforms to the Law on Industrial Free Zones, which according to the ruling, will generate greater certainty and legal security for the productive sector.
The Chamber of Textile, Clothing Companies and Free Zones states that if the new law on Free Zone included the tax, it would drive away millions of dollars in investments.
Elmundo.com.sv reports that "The Chamber of Textile, Clothing Companies and Free Zones of El Salvador (Camtex) on Wednesday opposed changes made by the Finance Minister Carlos Cáceres to the proposed amendments to the Law on Free Zones, agreed with the sector since October 2011."
In El Salvador some companies will be left out of the new system introduced by the proposed reforms to the law on Free Zones.
If the draft amendment to the FTZ Act is approved, about ten companies, both national and foreign, would fall outside the new regime, said the director of the Agency for the Promotion of Exports and Investments in El Salvador (Proesa), Giovanni Berti.
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