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Dominican Republic Free Zones are specific geographic areas aimed at the industrialization for export purposes. Currently the Free Zones of the Dominican Republic has some 175,078 employees across the country, distributed as follows: 49% Region North, East Region 18%, National District 16% and 4.3%  Southern Region.

EPZs begin their development in the Dominican Republic in 1969 with the installation of a Zone in the city of La Romana. This area was first promoted by the transnational company Gulf and Western Americas Corporation, which had been operating in the country mainly in the sugar industry since 1967, when it acquired the property in the central South Porto Rico Sugar Company.

The South Porto Rico Sugar Company operated a large sugar complex in Puerto Rico which owned cane land near La Romana in the south, an investment which led in subsequent years to the establishment of one of the largest sugar mills in the world.

In 1959, the company changed its name from the South Porto Rico Sugar Company to the South Puerto Rico Sugar Company . In 1967, the South Puerto Rico Sugar Company merged with Gulf and Western Industries.

This first park zones was installed just a year after the enactment of Act 299, "Protection and Industrial Incentives." This legislation is important to set incentives in terms of tax exemptions for companies that hereafter be established in the zones and their production devoted to exports.

The second EPZ was established in 1972 under the auspices of the public sector through the Industrial Development Corporation (IFC), a decentralized state that this is still responsible for its administration and operation. This second area is located in San Pedro de Macoris.

In 1973 came another export processing zone located in the city of Santiago de los Caballeros, was created by the public sector but, unlike the San Pedro de Macoris, the administration and operation of it was delegated to a nonprofit corporation established for this purpose, under the guidance of experienced entrepreneurs from the north.

Currently, Free Zones have become one of the most dynamic sectors of the Dominican economy and in strategic link with the major international markets. With nearly 538 companies in 53 industrial parks, export processing zones are the main source of employment in the country, is currently generating about 200,000 jobs in direct form. Exports from the EPZs in 2002 exceeded U.S. $ 4.6 billions of dollars.

Central Bank figures show that sales by free zones companies climbed 0.4% last year compared with 2007, despite the global financial crisis.

Free Zones in year 2007

The export sector earned US$ 4.5 billion, which led to a jump in its participation in the country’s foreign trade, from 63.2% in 2007 to 65.4% last year.

Free Zones in year 2008

This contrasts with the US$2.4 billion in national exports outside the free zones in 2008, a 8.8% fall compared with the previous year.
 

Free Zones in year 2006

During the year 2006, the zones of the Dominican Republic, reported significant reductions in its main variable behavior is motivated by issues and / or factors of national and international order.

The variables that showed reductions in 2006 compared to the year 2005 were related to exports, foreign exchange, jobs, parks in operation, number of operating companies and textile exports.

Instead, the variables that increases were recorded for the area occupied buildings and salaries.

To get a better view of the performance of the sector zones, then proceed to a summary analysis of key variables.

The year 2006 ended with a total of 56 parks in operation, to show a relative decrease of 1.8% compared with 2005. Of all the parks in operation, 45% is concentrated in the northern region, while 23% is concentrated in the National District and Santo Domingo Province, 14% in the Eastern Region of the country and 11% in the Southern Region. Similarly, 61% of the parks is in the private sector, 34% belongs to the Government and the remaining 5% is of mixed ownership.

Regarding the number of firms, the year 2006 ended with a total of 555 enterprises in operation which, when compared to the existing (556) at the end of 2005, resulting in a relative decrease of 0.2%.

The total area of buildings occupied by businesses in free zones rose by 7% during 2006, because it amounted to 26.3 million square feet.

45% of companies in operation are located in parks zones privately owned, 26% in the parks of the Government, 15% owned joint parks, and 14 are special zones.

Similarly, 46% of businesses are located in the Northern Region, 22% in the National District and Santo Domingo Province, 16% in the South Region, while 14% are located in the Eastern Region.

As for the productive activities of firms, 35% (198 companies) is concentrated in the clothing business. Second in the number of established companies it is the activity of Services, they account for 11% of the total. Companies involved in marketing are the third largest, with 10%, followed by those dedicated to the Manufacture of Snuff and derivatives, with 9%.

With regard to the origin of firms, a total of 257 firms, ie 46%, comes from the United States, while a total of 178 companies (32%) is of Dominican origin, followed by those of Korean origin, with 4%.