imported for the fulfillment of the maquila programme, subject to CNIME authorization .155 The regulations stipulate restrictive criteria for authorizing domestic sales in order to complement the domestic demand for the product when the product is not produced in the country or when the condition for a balanced foreign exchange budget is met.156 Sales to the domestic market are subject to the payment of the duties and taxes required for placing the product on the domestic market and to income tax on the share sold in the domestic market, according to a “profitability coefficient“ established by the tax authority. Sales to the domestic market may not exceed 10 percent of the volume exported during the last year and must maintain the same quality checks and standards that apply to its exported products.157 Capital goods imported under the maquila regime may, as an exception, be nationalized by means of a definitive import dispatch after payment of all of the corresponding taxes.158
F. Uruguay Free Zone Law 1. General provisions The free zone regime was adopted in 1987.159 Free zones are public or private areas of the national territory, duly fenced off and efficiently isolated, which are designated by the government upon the advice of the Free Zones Honorary Advisory Committee, with the purpose of carrying out therein, under the tax exemptions and further benefits set forth by the Law, any kind of industrial, commercial, or service activities such as: (a) commercialisation of goods, storage, deposit, preparation, selection, sort, break down, assembly, handling, and mixture of any foreign or domestic goods or raw materials; (b) establishment and operation of manufacturing industries; (c) supply of any kind of service, either within the free zone or from the free zone to third countries; (d) other activities that the Executive Power might deem convenient for the development of the domestic economy or for the economic and social integration of the countries.160 The objective of free zones is to encourage investment, expand exports, increase the use of domestic labour, and foster international economic integration.161 Free zones must be operated either by the state or by duly authorised private persons known as free zone operators. In practice, there are three types of free zones: those belonging to and managed by the state, those owned by the state but managed privately, and private free zones.162 Aguada Park and the World Trade Centre Free Zone are expressly designed for service suppliers. 20