The Ministry of Industry & Commerce (MICM) explains that the DR is the top exporter of ostomy surgical procedure applications to the USA. The country is also the second exporter of electric switches to the USA and the third largest exporter of medical devices to the USA.
In a press release, the MICM explains that a growing number of free zone companies are making the Dominican Republic their top choice, relocating their businesses and their production plants.
The Ministry of Industry & Commerce explains manufacturing companies are moving to the Dominican Republic attracted by the fiscal framework. The DR offers zero income taxes, zero duties, and zero construction taxes for those entering the export free zone regime. Under Law 8-90, the robust tax exemption framework grants complete exemptions, amounting to 100% for nearly all national and local taxes.
The Ministry of Industry & Commerce says that zero taxes is not the only reason. The country’s strategic location in the heart of the Caribbean makes it the ideal destination for nearshoring. Companies enjoy no logistical complications thanks to the proximity to key markets in the United States and Europe.
The Dominican Republic boasts international gateways like Las Américas (SDQ) and Punta Cana (PUJ) airports with numerous nonstop connections to the Americas or Europe.
Likewise, key container ports, such as Haina and Caucedo, facilitate efficient import-export operations, ensuring minimal delays. A comprehensive logistics infrastructure, including modern roadways and distribution centers complement the ports.
The Ministry of Industry & Commerce highlights that the Dominican Republic’s nearshoring success stories span across various industries, with several multinational companies choosing to move their operations to the country. Notable examples include Convatec, Cardinal Health, Edwards Lifesciences, Rockwell Automation, Eaton, Jabil, Fresenius Kabi, Cosmed Group, and the most recent, League Holdings Group Co., Ltd. These multinational companies, along with many others, have experienced the benefits of nearshoring in the Dominican Republic and are witnessing operational efficiency, increased scalability, and enhanced customer satisfaction for a stronger global competitive advantage.
Recently, the country has been focused on attracting investments in the semiconductor supply chain, especially in assembly, testing, and packaging as well as printed circuit board manufacturing. Thus, the Dominican Republic can support the semiconductor factories poised to spring up across the United States thanks to the “CHIPS Act.”
The Dominican Republic’s successful track record of manufacturing electronics and medical devices offers clear advantages over its neighbors. Moreover, the attractiveness is further underscored by the country’s labor cost efficiency, making it an ideal hub for businesses seeking financial advantages and streamlined operational expenses.
The Ministry of Industry & Commerce stresses that as nearshoring continues to gain traction as a strategic business practice, the Dominican Republic is poised to become a go-to destination for companies seeking to optimize their operations and tap into new growth opportunities. With its exceptional workforce, favorable business environment, and geographic advantages, the country offers a compelling package that positions it as a frontrunner in the nearshoring landscape.
The Ministry of Industry, Commerce, and MSMEs (MICM) works in collaboration with the National Free Zones Council (CNZFE) and the Dominican Association of Free Zones (Adozona), to facilitate and promote nearshoring activities in the Dominican Republic.
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MICM
21 December 2023