Mobility, Land Transportation, Transit and Road Safety Law No. 63-17
Issue
FHC worked hand in hand with our client to clarify an ambiguity that existed regarding the applicability of this law to their business model. The main objective was to differentiate the regulations for public versus private passenger transportation, in order to establish regulations for each category tailored to its specific characteristics.
Our Role
Despite being retained late in the legislative process, FHC was able to engage key members of the House of Representatives to advocate for an alternative wording to relevant portions of this law to include a definition for “private passenger transportation service”.
Results
The definition of “private passenger transportation service” was included in Article 5 of Law 63-17, enabling operational continuity for the client’s business model. This precedent later proved useful for the development of corresponding regulations to Law 63-17.
Eradication of Illicit Trade, Smuggling and Counterfeiting of Regulated Products Law No. 17-19
Issue
An FHC client in the Fast-Moving Consumer Goods (FMCG) sector retained us to collaborate in the drafting and approval process of a bill directed at criminalizing illicit trade of specific regulated products. The purpose of this initiative was to facilitate the criminal prosecution of those engaging in illicit trade under Dominican law, which was not previously possible under the existing legal framework.
Our Role
Working in tandem with several governmental entities responsible for preventing illicit trade and members of the Senate Industry and Commerce Committee, FHC and the advisors to other affected FMCG companies presented a consensus draft bill endorsed by multiple business associations. The goal was to ensure that the interests of each affected sector were reflected in the bill submitted by the sponsoring Senator. We then coordinated efforts among various industries to provide context to stakeholders and advocate for the bill’s approval.
Results
Promulgation of Law 17-19 in February 2019.
Crisis Management – COVID 2020
Issue
The pandemic resulted in curfews and closures that disrupted the private sector’s commercial activities, which resulted in the need for certain clients to implement a vaccination plan in the face of a scarcity of available supply in order to provide the required conditions for their operational continuity.
Our Role
In collaboration with the Presidential Health Cabinet, FHC facilitated the establishment of a vaccination center at a client’s Free Trade Zone industrial center, inoculating over 16,000 park employees and their families.
Results
This contributed to the well-being of the employees and the surrounding communities living near the industrial park and aided in the logistical effort to eradicate the pandemic.
Market Entry – Jamaican market 2020
Issue
Taxi operators and associations vehemently opposed the entry of a multinational ride sharing platform, claiming that it was violating road traffic laws. Correspondingly, cab unions lodged complaints since these apps were operating without compulsory cab or passenger transport licenses.
Our Role
To comply with existing regulations, FHC proposed an innovative plan for our client to commence their operations in Jamaica without contravening local laws.
Results
As a result, the model was successfully implemented by the company in Jamaica. This gave rise to the “rent-a-car-with-driver” modality compliant with the local regulatory framework.
Public-Private Partnerships (PPP) Law No. 47-20
Issue
In the process of congressional approval of this bill in 2020, FHC identified an article that could have constituted a latent risk for a multinational mass consumer goods company. Our objective was to safeguard the market structure to prevent the law from being utilized as a foundation for unfair competition.
Our Role
Through FHC’s efforts, a multinational beverage and brewing company was able to incorporate specific modifications into the Public-Private Partnerships (P3) Law. The focus was on the incorporation of clarifying language to the bill, to ensure that unsolicited private sector proposals under Law 47-20 could not include provisions that would change the competitive landscape in a manner prejudicial to already existing market participants. The task involved introducing very tailored modifications in the context of the bill approval process. FHC collaborated via the coordinating commission to articulate the concerns and propose solutions with respect to the preservation of fair competition.
Results
The comments were incorporated, providing the necessary legal certainty for this FMCG multinational to continue operating in the country without the need to constantly monitor new initiatives for competitive risks generated under this law.
Tourist Area Conflict Management 2020-2022
Issue
Starting in late 2020, police and transit agents began detaining drivers of a ride-sharing app “for providing cab services without a permit” in the province of La Altagracia. This initiative was prompted by political pressure in the form of multiple demonstrations by taxi transportation unions and threats to the safety of tourists using ride-sharing apps, in an effort to force them to use their cab service. The matter escalated to a level that the President of the Dominican Republic became involved.
Our Role
FHC, in collaboration with its client (a multinational ride-sharing platform) was able to resolve the conflict with the tourist taxi transport union through a heavily negotiated collaboration agreement, under enormous political pressure from various national government institutions.
Results
After several months of meetings with interested parties and continually managing political pressure from strikes and physical altercations, the client was able to forge a win-win strategic alliance with the taxi transportation union that guaranteed tourist safety in the region, economic empowerment for the taxi transportation union members, and the operational stability of the client’s business in that region.
Amendment No. 12-21 to the Border Province Economic Development Zone Law No. 28-01
Issue
FHC worked with clients in the food and beverage industry to mitigate the impact of a bill proposed in 2020 to amend Law 28-01 and extend tax benefits to companies that had established their business operations in specific border provinces, resulting in unfair competition within the food and beverage sector. As originally drafted, this law was intended to promote economic development for the border province regions but had the unintended consequence of generating unfair competition by allowing food and beverage companies availing themselves to Law 28-01’s tax benefits to sell their products throughout the country unrestricted.
Our Role
FHC developed a strategy consisting of direct interventions with the Ministers of Industry and Commerce and of Finance, as well as with the House of Representatives Speaker to find solutions that could ameliorate the competitive imbalance in the sector. FHC was key in forming a coalition consisting of several relevant industry players, together with international organizations and the US Embassy, which collaborated to mitigate resistance from border zone
Results
The amendment was approved, modifying provisions that generated unfair competition and unfairly harmed companies established outside of the border development zone. Reputational risk to the coalition members was mitigated due to the collaborative dynamics exercised.
Customs Law No. 168-21
Issue
The existing 68-year-old Customs Law did not contemplate various aspects of present day international trade. It was crucial to establish a new regulatory framework to streamline customs clearances through electronic means and non-intrusive inspection technologies, which were not permitted under the existing law.
Our Role
FHC actively engaged in working groups and congressional sub-committees to develop aspects of the legislation relevant to our clients, both directly and through various business associations, affording us the opportunity to incorporate multiple suggestions into the final version of the law. Additionally, FHC collaborated directly with the authorities to avoid the inclusion of provisions that could have compromised the operational stability of several FHC clients.
Results
The new Customs Law has been crucial in solidifying the Dominican Republic’s status as a Regional Logistics Hub. It incorporates the terms Logistics Centers, Logistics Center Operating Companies, and Logistics Corridors, which weren’t previously defined, and offers enhanced legal certainty to our clients.
Logistics suppliers in Haiti 2022
Issue
Issue: A multinational freight forwarder needed to replace a service provider in Haiti given its enhanced needs in the face of the increasing challenges in the distribution of packages and merchandise in the country. Due to the country’s political instability and general security issues, performing meaningful due diligence on potential local partners required local support.
Our Role
FHC performed a mapping of the existing market players throughout the island of La Hispaniola, identifying Dominican couriers who could provide the required services in Haiti, as well as Haitian couriers or businesspersons with experience in transportation and distribution keen on expanding their business. Leveraging our industry networks and collaborating with local intermediaries, FHC developed a short-list of the most suitable suppliers for the client to then assist in the selection of the best fit for its business model.
Results
The outcome was the successful identification of dependable suppliers that met standards of quality, infrastructure needs, and know-how.
National Social Security Council (CNSS) Rate Negotiation 2023
Issue
The Medical Diagnosis Center (MDC) sector has historically lacked cohesive representation and influence in health sector public policy discussions in the Dominican Republic. MDCs have been impacted operationally and financially since health insurers have typically leveraged their influence to establish fees, in some cases, barely covering the costs of providing various diagnostic services. Additionally, the non-existence of a representative trade association had excluded MDCs from benefiting from past rate indexation negotiations, which created a revenue gap versus other health service providers.
Our Role
Working with the ownership groups of select best-in-class MDCs, FHC established a new trade association from the ground up. In parallel, FHC implemented a comprehensive engagement plan involving key stakeholders in the health sector to bring awareness to the issues most acutely affecting MDCs. Additionally, FHC devised a strategy that focused on engagement with health regulators to develop solutions to targeted issues that aligned with the association’sinterests. These endeavors positioned the MDC association as a valuable contributor to the healthcare dialogue, and as a regular participant at the National Social Security Council (CNSS) working group for health providers.
Results
To date, the efforts have resulted in the inclusion of MDCs in Resolution 563-01 issued by the Superintendence of Health and Labor Risks (SISALRIL), which increased diagnostic fees for MDCs for examinations and tests by 7%.