EL SALVADOR
N/A
Pillar Intermediary liability |
Sub-pillar Safe harbour for intermediaries for copyright infringement
Lack of intermediary liability framework in place for copyright infringements
A basic legal framework on intermediary liability for copyright infringement is absent in El Salvador's law and jurisprudence. However, Art. 15.11.27 of the Central America - United States - Dominican Republic Free Trade Agreement (DR-CAFTA) of 2013 regulates limitations on the liability of Service Providers for copyright and related rights, as well as Art. 272 of the Agreement with the European Union and Art. 15.69 of the Free Trade Agreement between the Republics of Central America and the Republic of Korea.
Coverage Internet intermediaries
Sources
- https://web.archive.org/web/20220303111222/https://www.competitividad.org.do/wp-content/uploads/2009/01/dr-cafta.pdf
- https://web.archive.org/web/20230427032136/http://www.sice.oas.org/Trade/CACM_EU/Text_Sept14/ESP/pIVt6_s.pdf
- https://web.archive.org/web/20221128142419/http://www.sice.oas.org/Trade/CACM_KOR/English/CACM_KOR_Chapter_15_e.pdf
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EL SALVADOR
Reported in 2017, last reported in 2023
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Screening of investment and acquisitions
Screening of investment and acquisitions
It is reported that certain restrictions apply to micro businesses, which are defined in Art. 3 of the Law on the Promotion, Protection and Development of Micro and Small Enterprises as having 10 or fewer employees and annual sales of approximately USD 175,930 or less. Investors who start operations with 10 or fewer employees must submit plans for increasing employment to the Ministry of Economy’s National Investment Office.
Coverage Micro businesses
EL SALVADOR
Since August 2006
Pillar Intellectual Property Rights (IPRs) |
Sub-pillar Participation in the Patent Cooperation Treaty (PCT)
Patent Cooperation Treaty (PCT)
El Salvador is a party to the Patent Cooperation Treaty (PCT).
Coverage Horizontal
EL SALVADOR
Since August 1993
Pillar Intellectual Property Rights (IPRs) |
Sub-pillar Copyright law with clear exceptions
Intellectual Property Law (Ley de Propiedad Intelectual)
El Salvador has a copyright regime under the Intellectual Property Law. However, the exceptions do not follow the fair use or fair dealing model, therefore limiting the lawful use of copyrighted work by others. Art. 44 lists the exceptions, which include activities carried out in family circles without lucrative purposes, of general utility, of didactic purposes, those used for people with disabilities, for commercial demonstrations, and those with charitable purposes.
Coverage Horizontal
EL SALVADOR
ITA signatory?
I
II
Pillar Tariffs and trade defence measures applied on Information and Communication Technology (ICT) goods |
Sub-pillar Effective tariff rate on ICT goods (applied weighted average)
Effective tariff rate to ICT goods (applied weighted average)
1.10%
Coverage rate of zero-tariffs on ICT goods (%)
82.58%
Coverage: Digital goods
Sources
- http://wits.worldbank.org/WITS/
- https://www.wto.org/english/news_e/brief_ita_e.htm#:~:text=ITA%20participants%3A%20Australia%3B%20Bahrain%3B,%3B%20Jordan%3B%20Korea%2C%20Rep.
- https://www.wto.org/english/res_e/booksp_e/ita20years_2017_full_e.pdf
- https://web.archive.org/web/20220120054410/https://trade.ec.europa.eu/doclib/docs/2016/april/tradoc_154430.pdf
- https://www.wto.org/english/tratop_e/inftec_e/itscheds_e.htm
EL SALVADOR
N/A
Pillar Tariffs and trade defence measures applied on Information and Communication Technology (ICT) goods |
Sub-pillar Participation in the World Trade Organization (WTO) Information Technology Agreement (ITA) and 2015 expansion (ITA II)
Lack of participation in the Information Technology Agreement Expansion Agreement (ITA II)
El Salvador is a signatory of the World Trade Organization (WTO) Information Technology Agreement (ITA) of 1996, but is not a signatory of its 2015 expansion (ITA II).
Coverage ICT goods
Sources
- https://www.wto.org/english/news_e/brief_ita_e.htm#:~:text=ITA%20participants%3A%20Australia%3B%20Bahrain%3B,%3B%20Jordan%3B%20Korea%2C%20Rep.
- https://www.wto.org/english/res_e/booksp_e/ita20years_2017_full_e.pdf
- https://web.archive.org/web/20220120054410/https://trade.ec.europa.eu/doclib/docs/2016/april/tradoc_154430.pdf
- https://www.wto.org/english/tratop_e/inftec_e/itscheds_e.htm
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EL SALVADOR
Since January 2023, entry into force in March 2023
Pillar Public procurement of ICT goods and online services |
Sub-pillar Other limitations on foreign participation in public procurement
Decree No. 652 - Law on Public Procurement (Decreto No. 652 - Ley de Compras Públicas)
Arts. 31-33 of the Public Procurement Act provide special rules for micro, small and medium-sized enterprises (MSMEs). Art. 31 stipulates that priority in the evaluation of bids may be given to goods manufactured and/or produced in the country. Art. 32 establishes that public administration entities and municipalities should seek to procure or contract with national MSMEs to the extent that they represent at least 25% of their annual budget for procurement and contracting of goods and services, provided that they guarantee the quality of the goods and services in question. Procurement should be sourced from national, regional and local SMEs in the area where the respective procurement and contracting takes place. Furthermore, at least 10% of the budget for procurement and contracting of goods and services should be procured or contracted from MSMEs that are owned, majority-owned or legally represented by women. Finally, Art. 33 establishes that, in the event of two or more evaluated bids whose price and qualification are equal based on the evaluation criteria and other conditions required in the application documents, preference shall be given to the bid submitted by a micro or small enterprise.
The Law on Acquisitions and Contracting of the Public Administration repealed the Law on Acquisitions and Contracting of the Public Administration, which contained similar requirements to those mentioned above in Arts. 39-A and 39-C.
The Law on Acquisitions and Contracting of the Public Administration repealed the Law on Acquisitions and Contracting of the Public Administration, which contained similar requirements to those mentioned above in Arts. 39-A and 39-C.
Coverage Horizontal
EL SALVADOR
Reported in 2022, last reported in 2024
Pillar Public procurement of ICT goods and online services |
Sub-pillar Other limitations on foreign participation in public procurement
Restrictions on foreign participation in public procurement
It is reported that foreign companies have expressed concerns about Salvadoran Government agencies not providing sufficient advance notice to foster wide participation in bidding procedures, particularly complex infrastructure works or public-private partnership projects.
Coverage Horizontal
EL SALVADOR
Reported in 2023, last reported in 2024
Pillar Public procurement of ICT goods and online services |
Sub-pillar Other limitations on foreign participation in public procurement
Restrictions on foreign participation in public procurement
It is reported that El Salvador has been operating under a State of Emergency since March 2022. Initially intended to be in effect for 30 days, the State of Emergency has been extended every month since April 2022. One consequence of the State of Emergency is that it allows the Executive branch to enter negotiations and make direct purchases of goods and services without adhering to the Public Procurement Law. Legal experts and businesses have expressed concerns that excluding purchases from bidding procedures for as long as the State of Emergency is in place will further undermine transparency.
Coverage Horizontal
EL SALVADOR
N/A
Pillar Public procurement of ICT goods and online services |
Sub-pillar Signatory of the World Trade Organization (WTO) Agreement on Government Procurement (GPA) with coverage of the most relevant services sectors (CPC 752, 754, 84)
Lack of participation in the WTO Agreement on Government Procurement (GPA)
El Salvador is not a party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA), nor does it have observer status.
Coverage Horizontal
EL SALVADOR
Since November 1999, last amended in 2013
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Maximum foreign equity share
Investment Law (Ley de Inversiones)
According to Art. 5 of the Investment Law, foreign investors have the same rights and obligations as Salvadoran investors and shall not be subject to unfair or discriminatory measures with respect to the establishment, administration, use, usufruct, extension, sale and liquidation of their investments.
Coverage Horizontal
CAMBODIA
Since August 1997
Pillar Online sales and transactions |
Sub-pillar Restrictions on online payments
Law on Foreign Exchange (ច្បាប់ស្តីពីការប្តូរប្រាក់បរទេស)
Art. 5 of the Law on Foreign Exchange states that foreign exchange operations shall be undertaken solely through authorised intermediaries. These operations include purchases and sales of foreign exchange on the foreign exchange market, transfers, all kinds of international settlements, and capital flows in foreign or domestic currency between Cambodia and the rest of the world or between residents and non-residents. As a result, only banks permanently established in the Kingdom of Cambodia are considered authorised intermediaries for international settlements.
Coverage Horizontal
CAMBODIA
Since March 2021
Pillar Online sales and transactions |
Sub-pillar Restrictions on online payments
Circular on E-KYC Guidance and Transaction Limit for Payment Service in Cambodia (សារាចរណែនាំ ស្តីពី នីតិវិធីស្គាល់អត្តសញ្ញាណអតិថិជន និងការកំណត់ទំ ប្រាក់ប្រតិបត្តិការ សម្រាប់សេវាទូទាត់សងប្រាក់នៅកម្ពុជា)
In March 2021, the National Bank of Cambodia (NBC) enforced the Circular on E-KYC Guidance and Transaction Limit for Payment Service in Cambodia, clarifying procedures and information required for payment service institutions to identify customers and to set limits on the daily transaction amounts allowed for each type of customer. The Circular established the Bakong Payment System by the NBC, which is a centralised platform that allows customers to make bank transfers across banks and payment institutions. Based on the Circular, the size of daily transactions permitted depends on the platform, the personal information provided by the customer, and the stage of the payment service institution’s review of the customer’s information. In accordance with the different customer risk levels, customer identification procedures are determined by the four following transaction types: (i) Transactions between Bakong Accounts; (ii) Transactions between Bakong Accounts and Bank Accounts/E-Wallet Accounts; (iii) Transactions between E-Wallet Accounts and E-Wallet Accounts/Bank Accounts and; (iv) Transactions between Bank Accounts and Bank Accounts via Bakong (Backbone).
For transactions falling under items 1 – 3 above, customers are classified into three categories:
- Basic Customers: The transaction limit is KHR 2 million (approx. USD 500) per day;
- Partial KYC: The transaction limit is KHR 12 million (approx. USD 3,000) per day;
- Full KYC: The transaction limit is KHR 40 million (approx. USD 10,000) per day.
- For transactions under item 4, customers are considered full KYC customers, and the transaction limit is KHR 200 million (approx. USD 50,000) per day.
For transactions falling under items 1 – 3 above, customers are classified into three categories:
- Basic Customers: The transaction limit is KHR 2 million (approx. USD 500) per day;
- Partial KYC: The transaction limit is KHR 12 million (approx. USD 3,000) per day;
- Full KYC: The transaction limit is KHR 40 million (approx. USD 10,000) per day.
- For transactions under item 4, customers are considered full KYC customers, and the transaction limit is KHR 200 million (approx. USD 50,000) per day.
Coverage Horizontal
Sources
- https://web.archive.org/web/20220706153026/https://www.nbc.org.kh/download_files/legislation/prakas_kh/Circular_on_E-KYC_and_transaction_limit.pdf
- https://web.archive.org/web/20230331130550/https://www.soksiphana.com/resources/alerts/national-bank-of-cambodia-issues-new-guidelines-on-payment-services/
- https://web.archive.org/web/20230321004409/https://www.dfdl.com/resources/legal-and-tax-updates/cambodia-new-transaction-amounts-know-your-customer-procedures-for-financial-institutions-payment-servic...
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CAMBODIA
Reported in 2021, last reported in 2023
Pillar Online sales and transactions |
Sub-pillar Threshold for ‘De Minimis’ rule
Low de minimis threshold
It is reported that the de minimis threshold, that is the minimum value of goods below which customs do not charge duties, is USD 50, below the 200 USD threshold recommended by the International Chamber of Commerce (ICC).
Coverage Horizontal
Sources
- https://web.archive.org/web/20240313090038/https://global-express.org/index.php?id=271&act=101&profile_id=-1&countries%5B%5D=-2&search_terms=&question-filter=&qid_34=1&qid_34_optid=1&qid_35=1&qid_36=1...
- https://web.archive.org/web/20220710064053/https://global-express.org/assets/files/GEA%20De%20Minimis%20Country%20information_6%20December%202021.pdf