The following important measures have been implemented during the emergency that Puerto Rico is currently facing:

• The President of the United States has exempted Puerto Rico from Jones Act for 10 days starting September 28, 2017. This order is expected to help expedite the flow of fuel, products, key services and infrastructure operations into our Island.
• The Secretary of Treasury has extended the sales and use tax exemption on prepared foods until October 8. Administrative Determination 17-13 establishes that the exemption does not apply to alcoholic beverages but is applicable to carbonated beverages and any combination of flour, sugar or other mixed ingredient to be sold as a single product, as long as they are usually sold with utensils to be consumed by a natural person in Puerto Rico for its flavor or nutritional value.
• In a news release today, the Secretary of Treasury also announced that any donated goods coming into Puerto Rico to nonprofit entities or any person in Puerto Rico will not be subject to use tax and will be released from the ports immediately. The Governor has also signed an order to exempt from excise tax any truck arriving into Puerto Rico to assist in the transportation crisis during the emergency.
• The Secretary of Treasury also authorized the issuance of provisional licenses Class A or B to gasoline retailer on an expedite manner as long as the applicant had submitted all the applicable documentation on or before September 20, 2017 by email to puertos@hacienda.pr.gov. The provisional license will be valid for 60 days.

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This publication is a summary of the recently enacted legislation or pronouncements referred to herein and is not intended to substitute legal advice.  We encourage you to contact us or your tax advisor if you have any questions or need assistance regarding any of the matters presented herein.  An attorney-client relationship with Pellot-González, P.S.C. cannot be formed by reading or responding to this memorandum.  Such a relationship may be formed only by express agreement with Pellot-González, P.S.C.

On June 30, 2016, a Financial Oversight and Management Board has been assigned to Puerto Rico by the United States Federal Government with the enactment of Public Law 114-187 (“Puerto Rico Oversight, Management, and Economic Stability Act”).  This Oversight Board has ample powers over actions that may be taken by the Puerto Rico Government in pursuit of economic development, such as, new incentives laws or new tax decrees.

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