On April 3, 2020, the Department of Economic Development and Commerce (“DDEC”, by its Spanish acronym) issued Circular Letter No. 2020-05 (“CL 2020-05”) to provide further guidance regarding the businesses that are considered exempt and authorized to operate during the mandated lockdown declared by the Governor of Puerto Rico under Executive Order No.  2020-29.

On March 30, 2020, Puerto Rico Governor Wanda Vázquez issued Executive Order No. 2020-029 (“EO 2020-029”) to establish additional precautionary measures to avoid the spread of COVID-19 in Puerto Rico. Among the additional measures taken, the Governor of Puerto Rico extended the closing of all government and private sector operations from March 31, 2020 until April 12, 2020, with some exceptions (the “Lockdown Period”). CL 2020-05 provides more details on the type of business that may be deemed exempt from the lockdown. For more information and details regarding EO 2020-029, please refer to our O&B Client Alert: Puerto Rico Lockdown Extension from 4/1/20.

Following is a brief summary of the business operations guidelines issued under CL 2020-05.

DEPARTMENT OF ECONOMIC DEVELOPMENT AND COMMERCE – CL 2020-05

EO 2020-029 specifically orders the closing of all government operations, except essential services, and of all businesses in Puerto Rico during the Lockdown Period, subject to various exceptions. CL 2020-05 provides a list of those industries, merchants, businesses, services or activities that are considered exempt from the total closing order and that can continue operations under their regular schedules, including those that operate 24/7:

Food

(a)	Sale of prepared food, exclusively through “carry-out” or “delivery”, without allowing diners inside the establishments
(b)	Retail or wholesale sale of food
(c)	Businesses that are related to food distribution chains (includes farmers and agricultural industry employees) and beverages, including feed for animals, including food and beverage processors and producers, and businesses engaged in the distribution of food and beverages, hydroponic farms, and general agricultural activity
(d)	Supermarkets and grocery stores, including businesses whose components include supermarkets or grocery stores. (However, on Sundays supermarkets and grocery stores must remain closed.)

 

Medicines, medical articles or equipment, and pharmacies

Businesses that are engaged in the production, sale, or provision of services related to medications, medical articles or equipment, or provision of health care services, and those that are in their distribution chain, such as:

(i)	Pharmaceutical companies
(ii)	Medical devices (manufacture and sale)
(iii)	Biotechnology and agricultural biotechnology facilities
(iv)	Manufacture of hospital supplies
(v)	Hospitals
(vi)	Clinical laboratories
(vii)	Emergency rooms
(viii)	Medical services clinics
(ix)	Pharmacies
(x)	Medical cannabis dispensaries
(xi)	Medical cannabis cultivation and processing facilities
(xii)	Health centers
(xiii)	Pharmacies (Sundays pharmacies may only operate the prescription area, selling medicines and personal hygiene items)
(xiv)	Elderly care centers
(xv)	Private offices of medical doctors, only in case of emergency (Elective medical procedures must be suspended)
(xvi)	Dental offices, only in case of emergency

 

Gas stations and their distribution chain

(a)	Fuels (processing, sale, and distribution)
(b)	Refined: gasoline, diesel, “jetfuel,” “AV-Gas,” propane gas, butane gas, natural gas, liquefied gas, kerosene, among others
(c)	Mixed (“intermediate fuels” or “blended”)
(d)	Production, distribution, wholesale, retail (gas stations). However, on Sundays the gas stations may only operate to dispense fuel.

 

Financial institutions

(a)	Depository institutions that offer banking services (banks and credit unions)
(b)	Lending entities
(c)	Pawn shops, only for the receipt of goods for pawning through a pledge contract and for the payment of debts (the sale of goods and/or merchandise will not be permitted).

 

Services to respond to economically disadvantaged populations

(a)	Homeless shelters
(b)	Food Banks
(c)	Shelters for victims

 

Safety and Security

(a)	Private security agencies and companies
(b)	Roadside assistance, to the extent that it is requested by the subscriber of the service or by a law enforcement officer
(c)	Municipal police
(d)	Ranger Corps (DNER)
(e)	Internal Revenue Agents of the Department of the Treasury

 

National Security

(a)	Aerospace
(b)	Products or services related to any federal agency, including the U.S Department of Defense
(c)	Textile industry, in accordance with the provisions of Circular Letter No. 2020-04 issued by the DDEC on April 1, 2020.

 

Critical infrastructure

(a)

Infrastructure related to the Electric Power Authority, the Aqueducts and Sewers Authority, telecommunications, road system, solid and biomedical wastes, seaports, airports

(b)

Repair, replacement, maintenance, and rehabilitation of critical infrastructure and equipment to access such infrastructure, including, in the case of telecommunications infrastructure, cell phones, tablets, cable TV boxes, and other similar equipment necessary for the consumers to be able to use such critical infrastructure. In the case of cellphones, tablets, cable TV boxes, and similar equipment, the service must be provided remotely and new or replacement equipment sent by mail or other authorized freight system

 

Goods and services

(a)	Care of the elderly
(b)	Call centers
(c)	Public, private, state, and federal security companies
(d)	Roadside assistance services, only in case of emergency
(e)	Locksmith services, only in case of emergency
(f)	Companies that deliver and send packages and mail
(g)	Closed circuit services and alarms
(h)	Services to ports and airports
(i)	Press
(j)	Travel agencies operating with call centers
(k)	Recycling services
(l)	Maintenance and cleaning services
(m)	Plumbing, electrician, repair, maintenance, or replacement services for household electrical appliances, pest extermination and control, cleaning of swimming pools, independent companies and employees engaged in gardening and landscaping and/or landscaping, elevator maintenance and repair, maintenance and repair of access controls, and other services necessary to maintain the health, safety, and essential operation at the individual, residential, commercial, industrial, or public level
(n)	Garbage collection (private or public)
(o)	Funeral services relative to the collection or transfer of corpses, embalming, cremation and burial (no wakes)
(p)	Manufacture of goods for export
(q)	Vehicle parts and repair, including automotive technicians, tire workers, and parts distributors, may operate for the general public only in emergencies on Wednesdays and Thursdays between 9:00 am and 12:00 p.m. by appointment
(r)	Hardware store services may operate for the general public on Fridays and Saturdays between 9:00 am and 12:00 pm.

 

Construction

Construction sector is authorized to operate to offer critical, maintenance or repair services related to hospitals, drinking water, electricity and telecommunications subject to the implementation of strict measures to protect the health and safety of workers against COVID-19 and based on the Guideline of the Centers for Disease Control and Prevention (CDC), the U.S. Department of Health, the Occupational Safety and Health Administration, and the U.S. Department of Labor. The supply of materials for this sector is also authorized.

 

Supply chains relative to exempted goods and services

(a)	Companies that provide goods or services to the sectors exempted from closure, limiting their operations to supplying such supplies
(b)	Supply of articles for the sectors exempted from closure
(c)	Logistics and transport: customs brokers, sea and land cargo consolidation service, warehousing and distribution services to third parties, and the distribution of detergents, sanitizers, and hygiene and cleaning products
(d)	Technology: Manufacture of electronic appliances and articles, including printer ink
(e)	Fire prevention design, sale, and installation services
(f)	Sign services to sectors exempted from closure
(g)	Armory services for the security sector (police, security agencies, and federal security)
(h)	Employment agencies operating as call centers
(i)	Sale, installation, repair, and maintenance of energy production systems based on solar energy.

 

GENERAL PROVISIONS

The provisions of OE 2020-029 establishing limitations on the use of motor vehicles will not apply to industries, commerce, or businesses exempted from the total closing of operations under the CL 2020-05, nor to their employees.

For any questions or inquiries regarding this topic do not hesitate to contact us at info@oneillborges.com or your prime contact attorney at O’Neill & Borges.