President of the R Dominican Republic

Transcription

1 Dec. No which establishes the Regulation for the Application of Law No , for the Promotion of Cinematic Activity in the Dominican Republic. L e o n e l F e r n á n d e z President of the R Dominican Republic NUMBER: Whereas: The Constitution of the Dominican Republic, recognizing the importance of the cultural heritage and its value as a means of expression of cultural identities, provides for the promotion and protection of the different artistic expressions of Dominican culture, via incentives and support for cultural activities and plans, and the promotion of cultural diversity. Whereas: The film industry is a communications, artistic expression and entertainment medium, by way of which creative works of great value are transmitted which bring together and sensitize the whole of society in its collective identity, as well as its cultural and intellectual growth; Whereas: The State, in its work to safeguard the artistic and cultural heritage of the nation must generate the conditions for its protection, enrichment, conservation, restoration and having it valued, and to generate, in like manner, the mechanisms so that said activity be carried out in an efficient, equitable, controlled, transparent, collaborative and productive manner; Whereas: The training of professionals guided towards the production of cinematic works constitutes a valuable resource towards achieving the growth and development of the national cinematic industry, the generation of jobs, diversification of the cultural industry and a factor for the support of scientific research and cultural production; Whereas: The incentives for productive activity in the framework of the cinematic industry create the space to generate new sources of jobs, which contributes to the economic growth of the nation; Whereas: For the full application of Law No , dated 29 July 2010, for the promotion of cinematic activity in the Dominican Republic, it is necessary to enact a regulation which contributes to the pursuit of the objectives of said Law, via the creation of a normative framework in line with the realities and demands of the sector, to the benefit of the all the actors making up the industry and which, ultimately, projecting towards the whole of society. Whereas: Several Free Trade Agreements the Dominican Republic belongs to, acknowledge the importance and value of the cultural industries, facilitating cultural cooperation among member countries and improving the opportunities

2 for exchanges in the cultural services, assets and activities, especially in the audiovisual sector. HAVING SEEN: The Constitution of the Dominican Republic, enacted on 26 January 2010; HAVING SEEN: Law No. 318 of 14 June 1968, on the Cultural Heritage of the Nation; HAVING SEEN: Law No of 16 May 1992, which established the Tax Code; HAVING SEEN: Law No of 28 June 2000, which created the Ministry of Culture; HAVING SEEN: Law No of 29 July 2010, for the Promotion of Cinematic Activity in the Dominican Republic; HAVING SEEN: Law of 18 November 2010, which modified Law No of 29 July 2010, for the Promotion of Cinematic Activity in the Dominican Republic; HAVING SEEN: Resolution No of 17 September 2004, of the National Council of Culture, which created the National Movie Agency (Dirección Nacional de Cine - DINAC). In the exercise of the attributions conferred upon me by Article 128, number 1 letter b) of the Constitution of the Republic, I hand down the following Regulation for the Application of Law No of 29 July 2010, for the Promotion of Cinematic Activity in the Dominican Republic. CHAPTER I GENERAL AND INSTITUTIONAL PROVISIONS Article 1.- Objective of the Regulation. This Regulation has the objective of establishing the provisions necessary for the application of Law , on the Promotion of Cinematic Activity in the Dominican Republic. Section I Definitions Article 2.- Adoption of definitions. For the purposes of the application of this Regulation, the following definitions are adopted: 2

3 3 a) Animation (Animación). Cinematic production mechanism whereby images are produced via drawings, models, computerized design and other techniques, in such a way that upon being projected, they produce the sensation of movement; b) Definitive Qualification of Cinematic Studio and Movie Theater Projects (Calificación Definitiva de Proyectos de Salas de Cine y Estudios Cinematográficos): Qualification granted by Resolution of the Inter-Sector Council for the Promotion of Cinematic Activity in the Dominican Republic (Consejo Intersectorial para la Promoción of the Actividad Cinematografica en la República Dominicana - CIPAC), upon verification of the execution of a project for the installation of movie theaters and movie studios, required for the application of the Income Tax exemption established in articles 37 and 41 of Law ; c) Provisional Qualification of Cinematic Studio and Movie Theater Projects. (Calificación Provisional de Proyectos de Salas de Cine y Estudios Cinematográficos): Qualification granted by Resolution by CIPAC, upon the execution of a project for the installation of movie theaters or movie studios, required for the application of the exemptions established in article 38, item numbers 1 and 2 and in the Paragraph of article 41 of Law ; d) Definitive Certificate of Dominican Nationality (Certificado Definitivo de Nacionalidad Dominicana): Document issued by the General Movie Agency (Dirección General de Cine - DGCINE) for concluded audiovisual and cinematic works, which corroborate the definitive compliance with the requisites established in numbers 16 and 17 of article 7 of Law ; e) Provisional Certificate of Dominican Nationality (Certificado Provisional de Nacionalidad Dominicana): Document issued by DGCINE for audiovisual and cinematic works, which corroborates preliminary compliance with the requisites established in numbers 16 and 17 of article 7 of Law ; f) Classification of cinematic and audiovisual works (Clasificación de obras cinematogáficas y audiovisuales): System whereby audiovisual and cinematic works are characterized via relative criteria and the suitability of their content for the audiences they target; g) Movie Theater Complexes (Complejo de Salas de Cine): Set of two or more projection movie screens installed in a physical space with common areas and whose operation is carried out by the same exhibitor; h) Development (Desarrollo): Initial stage of production which includes the set of activities towards identifying the feasibility of a cinematic project; i) Documentary (Documental): A full length cinematic work that expresses reality objectively;

4 4 j) Movie film studio or the filming of cinematic works or cinematic studio (Estudio de filmación o grabaciem de obras cinematográficas o estudio cinematográfico) Establishment which has the technical resources necessary for the filming of images of cinematic works, by way of capturing same in closed or controlled spaces and in formats suitable for cinematic production; k) Mini-series (Miniseries): An audiovisual work with a pre-stipulated number of episodes and which follows a plot line which unfolds throughout same; l) Made-for-TV Movie (Pelicula para television): Feature-length cinematic works whose first commercial operation is dedicated to broadcast or radio transmission by television operators; m) Post-production (Postproducción): Stage of production covering the processing, assembly and editing of audiovisual and cinematic works, including visual effects, duplication, graphics, animation, data transfer, and others. n) Pre-production (Preproducción): Stage of production that brings together the preparative measures, including the selection of locations, selection of the cast and the establishment of the technical team who will be responsible for the production of the audiovisual or cinematic work; o) Production (Producción): Stage in which an audiovisual or cinematic work is created and shot; p) Television Series (Serie de television): An audiovisual work made up of a set of episodes with or without a common generic title, dedicated to broadcast by television operators successively and continuously, with each episode being able to correspond to a narrative unity or to have continuity with the following episode; q) Musical video (Video musical): Short feature that offers a visual representation of a musical performance, composed of short sequences. Section II On the General Movie Agency (Dirección General de Cine - DGCINE) Article 3.- Functions of DGCINE. In addition to those already established in Law 10810, the Director of DGCINE will have the following functions: a) To execute the functions and certify the processes established in Law No and in this Regulation. b) To execute the policies and regulations for the audiovisual and cinematic activities in the aspects related to the scope of the application of Law No

5 5 c) To exercise the functions corresponding to the Logistical and Technical Secretariat of CIPAC, according to the terms of this Regulation. d) To propose to CIPAC the plans and programs to be executed by DGCINE. e) To draft the proposed Annual Plan of Execution of the Cinematic Promotion Fund (Fondo de Promoción Cinematográfica - FONPROCINE) and submit it to the consideration of CIPAC. f) To draft the operational budget of DGCINE and submit it to the consideration of CIPAC. g) To draft and present to CIPAC the reports on the annual execution of the FONPROCINE in January of each year. h) To participate in the ordinary and extraordinary meetings of CIPAC, with the right to speak but not the right to vote, assuming the functions of Secretary of the Board. i) To draft the proposals for the internal norms and regulations of DGCINE, which will be submitted to the approval of CIPAC. j) To direct, administer and request the updating of the different Records of the Cinematic Registry and Information System (Sistema de Información and Registro Cinematográfico - SIRECINE). k) To establish the formats, frequency and mechanisms for the monitoring of information regarding the marketing of cinematic works in the country, pursuant to that established in this Regulation. l) To draft and distribute statistical reports on the projection of foreign and Dominican cinematic works in the projection theaters of the country. m) To conduct inspections of the establishments of cinematic agents referred to in this Regulation. n) To draft the pre-established formats and forms for the processes of registering in the Registries of SIRECINE, for obtaining the provisional and definitive certificates of Dominican nationality, obtaining the Sole Shooting Permit (Permiso Único de Rodaje) and for the different processes necessary for the application of the tax incentives of the law. o) To evaluate and decide on the applications for the Sole Shooting Permit. p) To request and process any authorization requested for the filming of a work whose competence corresponds to an entity of the public or municipal administration of the country. q) To evaluate and decide on the applications for Definitive and Provisional Certificates of Dominican Nationality of a cinematic work, carrying out the corroboration actions required by the law for such purposes. r) To draft the forms for the application of the support categories of the FONPROCINE. s) To propose candidates to CIPAC for the Selection Committee of the FONPROCINE bidding contests.

6 6 t) To evaluate the candidate projects for the purposes of the evaluation of the list of projects admitted in the FONPROCINE public bidding contests. u) To verify and monitor possible factors of incompatibility of the members of the Selection Committee for each FONPROCINE bidding contest. v) To draft and sign the contracts for the allotment of funds from FONPROCINE, pursuant to the terms of the resolutions of CIPAC which approve the economic assistance in the established categories. w) To carry out the evaluations, verifications and recommendations established in the procedures for the application of the tax incentives foreseen in the law and this Regulation. x) To decide on every appeal for reconsideration that may be submitted within the terms of this Regulation or general administrative procedures. y) Any other obligation or mandate established by Law No , this Regulation, or which may be decreed via a reasoned Resolution by CIPAC. Article 4.- Secretariat of CIPAC. The Cinematic Director General (Director General de Cine), exercises the functions of Secretary of CIPAC, by virtue of Article 13, item number 4 of Law No , understood to be the administration functions which, within a board of directors or management, correspond to the Secretary. The exercise of these functions imply, among other things, the following obligations under his or her responsibility: a) To keep a current record of the members of CIPAC. b) To draft, along with the President of CIPAC, the agenda corresponding to each session. c) To draft and remit in a timely fashion the ordinary and extraordinary convening notices to all the members of CIPAC, with their respective agendas. d) To draw up the minutes corresponding to the CIPAC meetings. e) To organize a file and keep it current at all times, of all the minutes of the meetings and activities of CIPAC, as well as all the resolutions issued by said agency. f) To remit to DGCINE, via the secretary of said commission, certified copies of all the documents making up the file established in the previous item number, in order for said agency to have a current file of the minutes and resolutions of CIPAC. g) To issue at the request of any person, certified copies of said minutes and resolutions, as well as any other certification that may be requested about the contents of these documents. Article 5.- Logistical and Technical Secretariat of CIPAC. The Cinematic Director General exercises the functions of Logistical and Technical Secretary of CIPAC, by virtue of Article 16 of Law No , understood to be those

7 7 dedicated to providing CIPAC with the logistic raw materials it may require for its internal functioning, as well as to facilitate its access to any technical resource needed for compliance with its functions. The exercise of these functions implies, among other things, the following obligations under his or her charge: a) To provide for the establishment of a Department, Section or Office within DGCINE, which will be for the exclusive use of the Secretary General of CIPAC, dedicated to the following purposes. 1. To facilitate the functions which in his or her capacity as Secretary of the Council will be under the charge of the Cinematic Director General including, without restriction, maintaining the file of CIPAC referred to in the previous article, issuing certifications and copies of minutes, and all the powers consistent with the capacity of Secretary of CIPAC. 2. To receive independently the instances and communications directed to CIPAC as an agency with a higher rank than DGCINE and to remit them to each one of its members. 3. To channel the applications which, by virtue of the law and this Regulation, must go through CIPAC. 4. Any other use that may be provided for by CIPAC or the Cinematic Director General which may be consistent with the objective of this office or department. b) To prepare and remit, prior to each ordinary or extraordinary meeting, copies of the files, documents and recommendations of DGCINE which will be submitted to the discussion and decision of CIPAC. c) To facilitate the contracting of any technical consultation that may be required by CIPAC, for the exercise of the functions which are placed by this law and this Regulation under the responsibility of said entity. d) To give logistical and technical support to the tasks and functions of CIPAC in the public bidding contests for the allotment of the economic aid from the FONPROCINE. e) Any other function that may be assigned to it by Resolution of CIPAC or by norms and regulations. Section III On the Inter-Sector Council for the Promotion of Cinematic Activity in the Dominican Republic (CIPAC)

8 8 Article 6.- Functions of CIPAC. The Inter-Sector Council for the Promotion of Cinematic Activity in the Dominican Republic (CIPAC), as the highest-ranking administrative agency of the General Cinematic Agency (DGCINE), has under its responsibility the following functions: a) To set and update via Resolution the national cinematic policy. b) To approve the Annual Plan for the execution of the FONPROCINE within the last two months of each year. c) To evaluate and approve the annual execution reports of the FONPROCINE presented by DGCINE in January of each year. d) To consider and decide on the proposed budget which may be submitted to it by DGCINE within the last two months of each year, as per that established by the law. e) To decide and provide for, via Resolution, the convening of the bidding contests for allotment of the economic support of the FONPROCINE, the categories of support, available funds and rules. f) To choose and designate the members of the Selection Committee for the public bidding contests for the allotment of the economic support of the FONPROCINE. g) To approve the internal regulations and norms necessary for the administrative and technical functioning of DGCINE, CIPAC and CCCINE. h) To approve the Regulation of functioning of the Cinemateca Nacional. i) To establish via Resolution, subject to review every two years, the levies that will be charged by DGCINE for each one of the processes established in the law and this Regulation, including the qualifications and resolutions of validation established for the different tax incentives. j) To establish via Resolution the minimal structural and technical requirements which a corporation must meet in order for their registration in the National Registry of Cinematic Agents (National Registry of Cinematic Agents) be admitted in the categories of cinematic studies and specialized technical services. k) To establish via Resolution the design of the National Seal of Cinematography, pursuant to the procedure established by Article 126 of this Regulation. l) To establish via Resolution the classification, requirements and procedures for inspection of movie theaters, pursuant to that established in Article 43 of this Regulation. m) To approve or deny via reasoned Resolution, the qualifications and validations established in this Regulation for the application of the tax incentives included in Law No n) To consider and decide on the recommendations and proposals remitted by CCCINE.

9 9 o) To hand town the resolutions and norms established in Law No and this Regulation, as well as all those that may be pertinent for the proper application of same. Article 7.- Criteria for the Election of the Members of CIPAC. For the election of the representatives belonging to CIPAC indicated in item numbers 7, 8, 9, and 10 of Law No , the following criteria should be followed: a) Being Dominican or a permanent resident in the Dominican Republic for at least five (5) years. b) Having reached twenty-five (25) years of age. c) Being in full exercise of political and civil rights. d) Having demonstrable experience within the scope of the competence of the kind of cinematic agent in question. Article 8.- Term of Designation. Two months before the conclusion of each term period foreseen in Paragraph II of Article 13 of Law No , DGCINE will open a term for the presentation of the candidates for representation of cinematic agents established in item numbers 7, 8, 9, and 10 of Article 13 of Law No Article 9.- Designation of Representatives of the Cinematic Agents. For making up the CIPAC, the representatives of the cinematic agents must be elected by the associations that are grouped and will be presented to DGCINE via a written attestment signed by its president and/or directors, which will be attached to the minutes of the Meeting where said selection has been approved. Said entities must be registered in the category of nongovernmental associations of the National Registry of Cinematic Agents of SIRECINE. Article 10.- Absence of Associations. In the event of there not existing associations which correspond to one of the categories of cinematic agents referred to in Article 13 of Law No , the proposal of the representative having the most number of registered members with the National Registry of Cinematic Agents, in the category in question, shall prevail. Article 11.- Multiple Associations. In the event there should be more than one association corresponding to one of the categories of cinematic agents to which Article 13 of Law No refers, the representative before CIPAC must be proposed by the one with the greatest representativeness, taking into account the membership of same and the registered members with the National Registry of Cinematic Agents of SIRECINE, in the category of agent in question. Article 12.- Persistence of Conflicts. In those cases in which the above provisions prove insufficient to resolve conflict situations or the multiplicity of proposals in the selection of any of its members, CIPAC will choose the member in question on the basis of the existing proposals, at all times taking into account the criteria of representativeness and fairness. Article 13.- Meetings of CIPAC. CIPAC will meet regularly once per month and extraordinarily as many times as requested by the Minister of Culture, the director of

10 10 DGCINE, or at least two members of said agency, who can request the Secretary General of CIPAC to begin the procedure for convening established in the following article. Article 14.- Convening notices. The convening of CIPAC will be carried out at least ten (10) days prior to the date of the meeting, via a physical or electronic communication. In the cases of extraordinary convening, a notice will also be published in a newspaper with national circulation and on the Internet portals of DGCINE and the Ministry of Culture, as well as by any other means of communication which DGCINE deems to be pertinent. Article 15.- Quorum. In order to constitute the quorum of CIPAC, the presence of over half of its voting members is necessary. If the required quorum is not met, a new convening notice will be made and the members of CIPAC who are present will be able to deliberate on the issues submitted. Paragraph: The new convening notices due to lack of quorum referred to in this article can be made within a term less than the ten days established in Article 14. Article 16.- Decisions of CIPAC. The resolutions and decisions of CIPAC will be approved by the majority of the voting parties present. Paragraph: In the event of having a tie in the voting due to there being an even number of CIPAC members present, the party presiding the session will have the decisive vote. Article 17.- Qualified Majority. The approval of the Annual Plan of Execution of the FONPROCINE and the budget for DGCINE necessarily requires the favorable vote of two thirds of the members present once quorum is constituted. Article 18.- Minutes. The minutes of the CIPAC sessions will be drawn up by the Director of DGCINE, in his or her functions as Secretary of the Board. Said minutes will include at least the following elements: a) Place, date and time in which the meeting was held. b) List of the CIPAC members who attended the session, indicating in each case the entity or sector they represent. c) A summary of the issues discussed in the meeting, as well as the recommendations, suggestions and ideas. d) The decisions and resolutions approved, with the number of votes with which they were adopted. e) The signature and initials of the members attending the meeting. Paragraph: Any minutes of a CIPAC session will be signed by the members attending same, no later than in the meeting following the one corresponding to the minutes in question. Article 19.- Participation of CIPAC in the FONPROCINE Funds. The members of CIPAC cannot access the FONPROCINE funds under personal nor business auspices, having to declare any conflict of interest that may be presented and to recuse themselves

11 11 when the entities represented by them should present projects to be beneficiaries of the funds. Section III On the Cinematic Consultative Commission (Comisión Consultiva Cinematográfica - CCCINE) Article 20.- CCCINE Sessions. The CCINE will meet ordinarily two (2) times a year and extraordinarily as many times as may be requested by at least two of its members or CIPAC s. Article 21.- Secretary. Annually, the CCINE will designate one of the members of the Commission as Secretary. The Secretary will have under his or her charge the convening and drawing up of the minutes corresponding to each session. Article 22.- Competences. The CCCINE must make pronouncements regarding any consultation requested by CIPAC or the DGCINE, within the thirty (30) days after receipt of same. In like manner, the CCINE can present to CIPAC any recommendation or proposal that is compatible with the objectives established in Article 15 of Law No Paragraph: The recommendations or proposals from the CCCINE remitted to CIPAC in the terms of this article, must be considered in the CIPAC session immediately subsequent to the remission of same. Article 23.- Functioning. The internal functioning of the CCCINE, as well as its convening notices, will follow the same terms and mechanisms for approval established for CIPAC, in articles 14, 15, 16, 17 and 18 of this Regulation. CHAPTER II ON THE DOMINICAN CINEMATIC REGISTRY AND INFORMATION SYSTEM Section I On the SIRECINE Registries Article 24.- Establishment of the SIRECINE Registries. The Cinematic Registry and Information System (Sistema de Información and Registro Cinematográfico - SIRECINE) is composed of the following Registries: a) National Registry of Cinematic Agents. b) Registry of Audiovisual and Cinematic Works.

12 12 c) National Registry of Movie Theaters. d) Tax Registry of Cinematic Suppliers and Agents. Paragraph I: The registration in the Registries established in letter items a), b) and c) is obligatory for any cinematic agent, audiovisual and cinematic work and for all the movie theaters which operate, exhibit or provide their services in Dominican territory respectively. Paragraph II: Registration in any of the registries established in this article will lead to the assignment of a registration code or number by DGCINE. Said code or number must be included in the processes and tasks carried out by DGCINE. Article 25.- Term for Response. DGCINE will respond to any request for registration within a term no greater than ten (10) days as of their being filed. Article 26.- Certificate of Registration. With the acceptance of the application, DGCINE will issue a certificate of registration which will attest to at least the following data: a) Name and general credentials of the agent, work or theater, with the qualifications that may be applicable. b) In the case of artificial persons, the data of the representative. c) Registration or code number assigned by DGCINE. d) Cinematic Registration in which the registration is made, in the categories that may be applicable. e) Period of effectiveness of the registration, if applicable. Article 27.- Publicity of the Registries. DGCINE will constantly make the current information of each one of the Cinematic Registries available to the public, with an indication of the name of the registered parties and the registration numbers or codes. Article 28.- Term of Effectiveness of the Registration. The registrations carried out and

13 13 approved by DGCINE in the Registries established in letter items a) and c) of Article 24, will have a term of effectiveness of four (4) years. Paragraph: The registrations in the indicated registries will be renewable for a like period of time, upon a request by the interested party. For such purposes, the applicant must file the updated information, along with the re-registration fees. Article 29.- Registration Fees. The setting of the fees for the registration in each one of the Registries established in Article 24, will be carried out via Resolution which CIPAC will hand down to that effect. For such purposes, CIPAC will take into account the kind of Registry, the category of agent and the nature of the person submitted for the registration. Section II On the National Registry of Cinematic Agents Article 30. Establishment of the National Registry of Cinematic Agents. Any cinematic agent who, pursuant to the terms of Article 7, item number 2) of Law No , provides their services in Dominican territory, must carry out their registration in the National Registry of Cinematic Agents, in at least one of the following categories: a) Cinematic Producers. b) Cinematic Distributors. c) Cinematic exhibitors. d) Cinematic studios. e) Cinematic artistic and creative personnel. f) Cinematic technical personnel. g) Not-for-profit organizations, festivals and associations in the cinematic sector. h) Cinematic academic entities. i) Cinematic technical service companies.

14 14 Paragraph I: The registration made by a physical person or corporation in any of the categories, will expressly include the artistic and technical specialization or kind of specialized service they are engaged in. Paragraph II: Cinematic agents whose activities correspond to more than one of the categories established in this article, will be able to apply for their registration for each one of the cinematic activities they carry out in the same process. When this application is made jointly, the applicant only has to pay down the fee corresponding to one registration. Article 31.- Requisites for registration. Registration in the National Registry of Cinematic Agents is made before DGCINE via the presentation of the following documents: a) Communication of the registration form or request corresponding to the category in question, which indicates the name of the applicant, their general credentials and indication of the cinematic activity in which they are engaged. b) In the cases of physical persons, copy of the identification document of the applicant. c) In the cases of corporations: 1. Copy of the formative documents: current Mercantile Registration and copy of the National Taxpayers Registry (Registro Nacional of the Contribuyente - RNC) card. 2. Registered copy of the minutes of the last meeting that designates the manager or board of directors of the corporation. 3. Copy of the identification document of the legal representative of the entity, as attested to in the minutes of the meeting. d) Receipt of payment of the fee corresponding to the registration. Paragraph: In addition, the following documentation must be included, depending on the category of cinematic agent: a) For the category of cinematic exhibitors: 1) Account and address of all the movie theaters operating in the country, including their capacity, classification and year of opening. 2) Copy of the permits and/or authorization in effect for each one of the theaters. b) For the categories of cinematic artistic and technical personnel:

15 15 1) Copy of the documents certifying their academic or technical training in the area, if applicable. 2) List of cinematic works in which they have provided their services. c) For the category of associations, festivals and other non-governmental organizations: 1) Current list of the membership of the institution. 2) Documentation of the constitution as a not-for-profit association or authorization of operations. 3) Last minutes of the meeting or election of directors, pursuant to that established in the bylaws of the institution. 4) Identification document of the persons who occupy the presidency and/or the address of the institution. 5) In the event that the representative before DGCINE is a person different from the president or director, a communication signed by one of them who previously designates the representative. 6) In the case of the cinematic showings and festivals, only the following will be required: Inclusion of the organizational persons or institution, certification of the registration of those who are organized in one of the registries of SIRECINE, frequency, duration, modality and place of exhibition. d) For the category of cinematic academic entities: 1) Academic programs offered in the cinematic area. 2) Documentation related to the recognition by the Ministry of Education or the Ministry of Technology, Science and Superior Education, if applicable. Article 32.- Requirements for Cinematic Studies and Technical Services. Via resolution to that effect, CIPAC will establish the minimal structural and technical requirements which a corporation must meet for its registration to be admitted in the categories of specialized technical services and cinematic studios. Said resolution will indicate, in like manner, the document and requisites which the agents in said categories must include in their application. Article 33.- Exoneration of the Registration Fee. The cinematic showings and

16 16 festivals, cinematic academic entities and not-for-profit organizations are exempted from the registration fees. Section III On the National Registry of Audiovisual and Cinematic Works (Registro Nacional de Obras Cinematográficas y Audiovisuales) Article 34.- Cinematic Works Subject to Registration. Any audiovisual or cinematic work produced or exhibited in the Dominican Republic must be registered in the Registry of Audiovisual and Cinematic Works. Article 35.- Registration Requisites. The application for registration must be presented along with the following documents: a) Conveying the registration form or application. b) Definitive or Provisional Certificate of Dominican Nationality (for the cases of Dominican works) or documentation that justifies the right of distribution of the applicant (for the cases of foreign works). c) Certificate of registration of the producer or distributor with the National Registry of Cinematic Agents of SIRECINE, issued by DGCINE. d) Information sheet, including: Title, producer, director, principal actors, nationality, duration, synopsis, genre or type of work, original language, dubbing or subtitles included, year of the work and classification of the work, if applicable. e) Receipt of payment of the registration fees.

17 17 Paragraph I: Applications for the registration of Dominican and foreign audiovisual or cinematic works, must be presented by their producers or distributors in the country, respectively. Paragraph II: Dominican audiovisual and cinematic works can effect their registration in this Registry simultaneously with the application for the Definitive Certificate of Dominican Nationality, via the filing of the requisites established in Article 111 of this Regulation. Article 36.- Classification of Works. When the audiovisual or cinematic works must be classified, pursuant to the procedures foreseen in the laws and regulations of the Dominican Republic, the classification procedure must be completed before the application for registration in SIRECINE. The documentation evidencing the classification of the work in question will be conveyed to DGCINE along with the application for the registration of the work. Article 37.- Duration of the Registration. The registration in the Registry of Audiovisual and Cinematic Works will be carried out only once, without said registration being affected by any kind of expiration. Article 38.- Exceptions to the Registration of Works. Cinematic works introduced into the country to be projected exclusively in cinematic festivals and showings conducted in Dominican territory are exempted from the requirement for registration in this Registry, as long as the festival or showing in question is duly registered with the National Registry of Cinematic Agents. Section IV National Registry of Movie Theaters (Registro Nacional de Salas de Cine) Article 39.- Registry of Theaters. Any kind of movie theater must be registered in the National Registry of Movie Theaters (Registro Nacional de Salas de Cine), via the filing of the following documents:

18 18 a) Registration form or application. b) General data on the establishment, including, among other things, the name of the theater, city and address. c) Certificate of registration of exhibitor with the National Registry of Cinematic Agents of SIRECINE, issued by DGCINE. d) Technical sheet of the establishment, including capacity, features of the projection equipment, features of the screen and features of comfort. e) Blueprints of the establishment approved by the Ministry of Public Works and Communications. f) Sample admission ticket. g) Documentation regarding the evacuation plans and security of the establishment. h) Receipt of payment of the registration fees. Article 40.- Inspection. Subsequent to the application for registration, DGCINE will carry out an inspection in order to proceed to classify the theater in question. Once the inspection is carried out and, compliance with the corresponding requisites is verified, DGCINE will assign the classification and will proceed to register the theater in the Registry, as of which time it can initiate its operations. Article 41.- Registration of Movie Theater Complexes. In the cases of theater complexes of projection halls, the request for registration will be submitted for the complex as a whole, as long as the technical sheet is presented for each screening hall individually. For these applications, DGCINE will verify that the approved blueprints and security documentation will cover all the projection halls of the complex.

19 19 Article 42.- Admission Tickets. Any admission ticket to a movie theater will have at least the following information: a) Name of the movie theater or complex. b) Classification of the theater. c) Name of the cinematic work. d) Date and time of projection. e) In the event of movie complexes, the number of the projection halls in which the projection is carried out. f) Cost of the ticket. g) Classification of the work. Article 43.- Other Regulations. Within three (3) months of the issuance of this Regulation, CIPAC will regulate, via resolution, the criteria for the classification of the movie theaters according to their capacity, comfort, kinds of movies they show and the kind of projection, as well as the procedure for the inspection of movie theaters. Article 44.- Theaters with Prior Approval. The theaters already authorized to operate, on the date of the issuance of this Regulation, will continue to operate pursuant to the terms of the permits and licenses they will have (sic) at that time. However, they must proceed to register and classify said theaters, pursuant to the procedure established by CIPAC, within a term of three (3) months as of the date of the resolutions referred to in Article 43.

20 20 Article 45.- Classification of Theaters. The classification granted to each theater must be in a visible place of the establishment and will be included in the publicity announcement and schedules. Article 46.- Notification of the Close of a Theater. The close of a movie theater must be communicated in writing to DGCINE within the thirty (30) days following the suspension of its operations. Section V On the Tax Registry of Cinematic Suppliers and Agents (Registro Fiscal de Agentes y Proveedores Cinematográficos) Article 47.- Establishment of the Tax Registry of Cinematic Suppliers and Agents. The Tax Registry of Cinematic Suppliers and Agents of SIRECINE is established, in which any party interested in applying for the mechanism of exemption from the ITBIS * established in Article 193 of this Regulation must necessarily register. Paragraph: Registration in this registry will be optional for cinematic agents and suppliers who avail themselves of the mechanisms for the exemption of ITBIS, established in the paragraph of Article 192 of this Regulation. Article 48.- Approval of the General Agency of Internal Taxes. Any application for registration in this registry will be presented to DGCINE, which in turn will remit the corresponding information to the General Agency of Internal Taxes (Dirección General de Impuestos Internos - DGII) for the purposes of approval. Article 49.- Registration Requirements. The request for registration must be presented ** ITBIS is a kind of Value-Added Tax - Translator

21 21 along with the following documents: a) Letter of application or application form for registration. b) Certificate of registration with the National Registry of Cinematic Agents, issued by DGCINE. c) Certification issued by DGII, that the applicant is current in compliance with their tax obligations. d) In the case of suppliers, listing of the goods and services it provided, pursuant to the listing established in Article 189 of this Regulation or resolutions of CIPAC on this issue. e) In the case of producers, listing of the projects in execution or to be executed with a copy of their respective Sole Shooting Permits, if applicable. f) Receipt of payment of the registration fees. Article 50.- Evaluation. After remitting the application by DGCINE, DGII will evaluate compliance with the tax obligations by the applicant and the classification of the assets and services offered pursuant to Article 189 of this Regulation. Paragraph I: The official notice of approval or rejection of the application will be issued by DGCINE within a term no greater than fifteen (15) days, as of the receipt of the application. In the event of approval, the official notice will expressly indicate the goods and services which the supplier is authorized to invoice without ITBIS, in Special Regimen Receipts (Comprobantes de Regímenes Especiales), which will be expressly included in the Registry along with the general data of the applicant. Paragraph II: In the event of rejection, the official notice will indicate the details of the objections to compliance with the tax obligations or to the list of goods and services. The applicant will have a maximum term of forty-five (45) days to correct or remedy the

22 22 objections presented by DGII and to proceed with the continuation of the application. If within that term, the applicant does not present evidence of the correction of the objections, the registration application will be rejected definitively. Article 51.- Any provider registered in said Registry can invoice any cinematic producer who is also registered without ITBIS, as long as the invoicing is carried out with the Special Regimen Receipts and exclusively includes the goods and services for which the supplier has been expressly approved by DGII. Article 52.- Duration of the Registration. The registrations in this Registry will have a duration of one (1) year, renewable for like periods, via application for renewal of the registration. For the purposes of renewal, the applicant must file the same documentation indicated in Article 49 of this Regulation. Article 53.- Other Requisites. The registration in said registry will be carried out without prejudice to the other requisites and formalities established by Articles 188 ff. of this Regulation. Section VI On the Information on the Marketing of Cinematic Works Article 54.- Supply of Information. The owners and operators of projection theaters, must supply, every four months, the information indicated below to DGCINE: a) Account of all the cinematic material shown, with details on each one of the works that was shown. The works will be identified with their title, distributor, code or Registry number of the work in SIRECINE, original language and an indication if the work was shown sub-titled or dubbed. b) Indication of the period of the showing of each work.

23 23 c) Number of tickets or admissions sold and the total collections for each work. Article 55.- Information of Multiple Theaters or Complexes. When an exhibitor operates several movie theaters, whether individually or as a complex, they must remit the above information broken down for each projection hall. Article 56.- Forms. DGCINE will make the forms available to the exhibitors in which they must remit the information to be presented. A resolution of the CIPAC will establish the formats, means and dates for which they must be remitted. Article 57.- Support for Information. If it should so deem it to be necessary, DGCINE will be able to request documentary backing which supports the remitted information. Article 58.- Reports and Dissemination. DGCINE will draw up and disseminate reports every four months in which it will make information available to the public about the showings and the collections of each work at the provincial and national level. CHAPTER III ON THE CINEMATIC PROMOTION FUND Section I On the Annual Execution Plan of FONPROCINE Article 59.- Targets of the Funds from FONPROCINE. The funds from FONPROCINE targeting the actions established in Article 28 of Law No , must be assigned and approved annually by CIPAC. Article 60.- Drawing up the Annual Plan for the Execution of FONPROCINE. Before the month of November of each year, DGCINE will prepare the proposed Annual Plan for the Execution of FONPROCINE corresponding to the following year, which will include the following information.

24 24 1. The budget for the internal functioning of DGCINE and its annual programming of activities. 2. The budget for the functioning of CIPAC. 3. The amounts to be allotted to the bidding contest for each category of support to cinematic production. 4. The budget for the internal functioning of the Cinemateca Dominicana and its annual programming of activities. 5. The budget corresponding to any special program or project to be developed pursuant to the objectives of the law, which do not require a public bidding contest in the terms of this Regulation. 6. The other amounts to be determined by the law or the regulations and norms approved via resolution by CIPAC. Article 61.- Approval Procedure. The proposed Annual Plan of Execution of FONPROCINE must be submitted to CIPAC, upon approval by CCCINE. CCCINE as well as CIPAC shall be able to present their observations and modifications. For the purposes of definitive approval of the Plan, the favorable vote of half plus one of the members of CIPAC will be required. Article 62.- Report of the Annual Plan of Execution. In the month of January of each year, DGCINE will remit to CCCINE and CIPAC a report containing the financial details, income, expenses, allotments, investments and support documents on the execution of the Annual Plan of Execution of FONPROCINE of the prior year. Said report will contain in like manner the information on the status of the execution of the funds granted by bidding contest to each one of the support categories. Section II On the Support Categories and Beneficiaries of FONPROCINE Article 63.- Support Categories. For the purposes of complying with the objectives established in Article 28, numbers 1), 2), 3) and 4) of Law No , l FONPROCINE will provide non-reimbursable economic support for the development, production, distribution, conservation and promotion of Dominican audiovisual and cinematic works, as well as for training in the cinematic area. Any candidate interested in benefiting from

25 25 said support, must present the project within one of the following categories: 1. Development of projects of feature-length cinematic works of fiction, animation and documentaries. 2. Production of feature-length works of fiction, animation or documentaries. 3. Production of medium-length and short cinematic works of fiction, animation or documentary.

26 26 4. Distribution of cinematic works of fiction, animation or documentary. 5. Professional training, via the financing of scholarships, internships, residencies, support to educational institutions and training program initiatives. 6. Programs for the conservation and promotion of the national audiovisual and film heritage. 7. Participation of Dominican cinematic works in international cinematic markets and festivals. 8. Development of festivals and showings of international and national cinematic works. Article 64.- Determination of Allotments. The economic allotments for each one of the support categories of FONPROCINE will be determined in the Annual Plan for the Execution of FONPROCINE. Article 65.- Beneficiaries of FONPROCINE. Dominican natural persons and corporations resident in the country, or foreign natural persons with permanent residency in the country for more than five (5) years can be beneficiaries of FONPROCINE. Article 66.- Registration in SIRECINE. Any candidate in the public bidding contests of FONPROCINE must present the documentation evidencing their registration in the SIRECINE Registry that is pertinent for the support category in which they participate. Article 67.- Excluded from being Beneficiaries. The candidates who have projects financed by FONOPROCINE on the date of the opening of the bidding contest or those who have incurred in non-compliance with prior agreements for the allotment of funds of FONPROCINE are disqualified from being beneficiaries of funds from FONPROCINE. Article 68.- Allotment of Reimbursable Funds. In addition to the economic support established in Article 63 of this Regulation, CIPAC can convene bidding contests for the allotments of reimbursable funds in the same categories established above. In these cases, the ground rules for the bidding contest must clearly specify the terms of the financing, the conditions for the reimbursements to FONPROCINE and the guarantees for execution and compliance. Section III On the Public Bidding Contest Article 69.- Annual Public Bidding Contest. The funds targeting the support categories

27 27 established in the preceding articles, will be allotted via a public bidding contest which CIPAC will convene annually, via DGCINE. Article 70.- Bases of the Bidding Contest. Each bidding contest will be governed by the ground rules which CIPAC will set to that effect, via a resolution which will include, non- restrictively, the modality of the bidding contest, the support categories which will be convened, the amounts to be allotted in each category the bidding conditions, the procedure for selection, the terms and calendars of the bidding contest, the documentary requisites, the general and particular selection criteria, the conditions and obligations derived from the required guarantees and allotment. Article 71.- Convening notice. The convening notices for each bidding contest will be open and will be published in at least one national circulation media, as well as any electronic or print media for dissemination DGCINE may have available. Paragraph I: The publication of the convening notice will indicate the terms for the presentation of candidacies, the support categories which have been convened, the availability of the ground rules for the bidding contest in DGCINE and the calendar for the process of evaluation and selection of the projects. Paragraph II: The convening notice for the bidding contest will be deemed to be open as of the publication to which this article refers and will have a duration of at least sixty (60) days. Paragraph III: As of the convening notice, the ground rules of each bidding contest will be made available to all the interested parties in the offices of DGCINE. Article 72.- Project Requisites. Any project must be presented to DGCINE within the term established in the convening notice. The presentation will be made via the filing of a portfolio which includes the application forms, the documents on the project and its budget, as well as all the requisites set forth in the ground rules of the bidding contest. Article 73.- Previous Financing. Any candidate project for the economic assistance of FONPROCINE, must prove at the time of its presentation, availability of financing for at least thirty percent (30%) of the total budget of the work or project.