Free Trade Agreement Puerto Rico
On 1 May 2006, the Puerto Rican government faced significant cash flow shortages, forcing the local ministry of education and 42 other government authorities to close their forces. The 1,536 public schools were closed and 95,762 people were crushed during the first-ever partial government shutdown in the island`s history.  On 10 May 2006, the budget crisis was resolved by a new tax reform agreement allowing all public servants to return to work. On 15 November 2006, a 5.5% turnover tax was introduced. Municipalities are legally obliged to apply a turnover tax of 1.5%, bringing VAT to 7%.  (ii) areas outside the United States and Puerto Rico and, like other EU countries, are subject to Puerto Rico trade agreements signed by the United States. As a non-communal territory, the current political status of the community prohibits the community from joining international organizations without the consent of the United States. However, because of its geographical and cultural nature, the U.S. State Department allows Puerto Rico to participate in a limited number of international organizations, of which it could belong if Puerto Rico were a sovereign state.
[n] Article 201: Definitions of General Application 1. For the purposes of this agreement, unless otherwise stated, the Commission appoints the Free Trade Commission established in accordance with Article 2001, paragraph 1, of the Free Trade Commission; Customs assessment code: the agreement on the implementation of Article VII of the General Agreement on Tariffs and Trade, including its interpretive notes; days are calendar days, including weekends and holidays; company: any entity incorporated or organized under existing legislation, whether for-profit or non-profit, private or governmental, including a capital corporation, trust, corporation, corporation, individual business, joint venture or other association; Businesses of a contracting party, a business incorporated or organized according to the right of a party; Existing resources in effect as of the effective date of this agreement; Generally accepted accounting principles refer to the consensus or essential support in the territory of a party with respect to the recording of revenues, expenses, costs, assets and liabilities, the publication of information and the establishment of financial statements. These standards can be developed on general guidelines of general application, as well as detailed standards, procedures and procedures; goods of a contracting party, as generally included in the agreement on tariffs and trade, or goods that can be agreed between the parties and the products related to the origin of that party; The Harmonized System (SH) refers to the harmonized system of description and codification of goods and its legal references, as well as the rules adopted and implemented by the parties in their respective customs legislation; Measures include all laws, regulations, procedures, requirements or practices; at the national level, a natural person who is a citizen or permanent resident of a contracting party and any other natural person within the meaning of Schedule 201.1; Origin: The rules of origin in Chapter 4 (rules of origin) are met; Person, individual or business a person from a contracting party, a national or a business of a contracting party; Secretariat: the secretariat established in accordance with Article 2002, paragraph 1 (secretariat); a public company, a company owned by a party or controlled by shares; the territory of a contracting party, in accordance with Schedule 201.1.