ECONOMIC MEASURES TAKEN BY THE GOVERNMENT OF EL SALVADOR TO MITIGATE THE ECONOMIC IMPACT CAUSED BY THE COVID-19 WORLD PANDEMIC

DECREE 601.- POSTPONEMENT OF THE PAYMENT OF THE ELECTRIC POWER DISTRIBUTORS, TELEVISION, INTERNET AND TELEPHONE SERVICE PROVIDERS.

The purpose of the decree is to defer the payment of bills for water services, electricity and telecommunications services (cable, Internet and telephone). The provision applies to invoices for the months of March, April and May 2020, which will be canceled within a period of up to 12 months.

The beneficiaries of this decree will be individuals or legal entities and municipalities that have experienced a decrease in their income directly due to partial or total closings that have gradually been established as measures to contain the entry and expansion of the COVID-19 virus.

EXCLUSIONS FROM THE APPLICATION:

  • Exclusive benefit for natural or legal persons who have experienced a decrease in income directly due to the partial or total closings established;
  • The municipal taxes charged to the electric power bill.
  • In the case of natural persons, these benefits will be applied only if the electric power consumption is of up to 200 / Kwh per month;
  • The Ministry of Economy and the Ministry of Finance will develop the pertinent administrative dispositions for the application of this decree.

DECREE 603.- TRANSITIONAL PROVISIONS TO SIMPLIFY DONATIONS OF ASSETS BY THE COMPANIES REGULATED IN THE LAW OF INDUSTRIAL AND COMMERCIALIZATION FREE ZONES.

It is declared that the following are exempt from the payment of import duties, from the Tax on the Transfer of Movable Assets, and from the provision of services and any other type of tax or municipal levy that could apply to all those assets that are admitted to be DONATED to the Government of the Republic, Municipal Councils and public and private, non-profit, humanitarian, educational or other services to the community for the benefit of people affected by the national emergency of COVID-19.

DECREE 604.- MODIFICATION OF THE CENTRAL AMERICAN IMPORT TARIFF

It consists of taking urgent and temporary measures, aimed at ensuring the supply of essential consumer items to the population, as well as medicines for respiratory diseases, hygiene and cleaning products required under the current circumstances, so that they can be purchased at adequate prices and reasonable, so as not to harm consumers or local production.

The Central American import tariff was modified as follows:

 

CODEDESCRIPTIONDAI
0402.21.21.00— Containers with a net capacity lower than 5 kg0
0713.33.40.00Red Bean0

For an amount less than 25,000 TM

1006.30.90.00— Others0

For an amount less than 7,500 TM

1101.00.00.00WHEAT OR MORCAJO FLOUR (TRANQUILLON)0
1102.20.00.00– Cornmeal0
11.02.90.30.00— Rice Flour0
2005.10.00.00– Homogenized vegetables0
2005.59.00.00— Others0
2007.10.00.00– Homogenized preparations0
2104.20.00.00– Homogenized compound food preparations0
2106.90.79.00— Others0
2828.90.10.00– Sodium hypochlorite0
3004.20.10.00– For human use0
3004.32.10.00— For human use0
3004.50.10.00— For human use0
3004.90.11.00— For human use0
3004.90.91.00— For human use0
3401.11.11.00—- Medicinal, except disinfectant0
3401.11.19.00— Others0
3401.11.20.00— Organic surfactant products and preparations, used as soap0
3401.11.30.00— Paper, wadding, felt and non-woven fabric, impregnated, coated or covered with soap or detergents.0
3401.19.00.00— Others0
3401.20.10.00– Liquid, medicinal soap (except disinfectant)0
3401.20.90.00— Others0
3401.30.00.00— Organic surfactant products and preparations for skin washing, liquid or cream, put up for retail sale, even if they contain soap0
3402.20.00.00– Preparations put up for retail sale0
3402.90.20.00– Washing preparations and cleaning preparations0
3808.94.10.00— Based on pine oil and quaternary ammonium surfactant0
3808.94.90.00— Others0
4015.19.00.00— Others0
9619.00.10.00– Of plastic0
9619.00.29.00— Others0
9619.00.39.00— Others0
9619.00.40.00– Textile, knitted0
9619.00.90.00– Others0

 

DECREE 605.-ONLINE PURCHASES FACILITATION LAW.

It will be applied to the definitive importation into the Salvadoran customs territory of assets or merchandise, without commercial nature, made by physical persons online, coming from the United States, under the modalities of fast delivery or courier, postal shipments, small family shipments and agents of Parcels by air, with a value of less than $ 200, they will not be subject to the payment of import customs duties, and will be exempt from non-tariff requirements.

EXCEPTIONS TO THIS BENEFIT:

  • Definitive import of prescription drugs and medical supplies for human and veterinary use.
  • Chemical percussion stipulated in the United Nations Convention against the illicit traffic of narcotic drugs and psychotropic substances;
  • Firearms, ammunition, explosives, and related materials.

 

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