DOMINICAN REPUBLIC Law and Practice Contributed by: Sarah de León Perelló, Elizabeth Silfa Micheli and Naomi Rodríguez Manzueta, Headrick Rizik Álvarez & Fernández
1. Legal System 1.1 Legal System and Judicial Order The Dominican Republic is a civil law jurisdiction. The judicial system is organised on a territorial basis and has a hierarchical structure. There are ordinary courts and courts of exception, which hear specific cases. The ordinary courts are the Courts of First Instance (trial courts) and the Courts of Appeal. The Courts of First Instance have jurisdiction over civil, criminal, commercial and administra - tive cases at the trial level. The Courts of Appeal hear appeals to judgments rendered by trial courts and review issues of law and errors of procedure. The Supreme Court of Justice is the highest court. It holds the ultimate authority and serves as the highest judicial body in the coun - try. It is responsible for evaluating the correct interpretation and application of laws. The courts of exception are the Justice of the Peace ( Juzgado de Paz ) and the Land Courts ( Tribunal de Jurisdicción Original/Tribunal Supe- rior de Tierras ). Specialised courts address specific areas of law, for instance, the Superior Electoral Court (Tribu - nal Superior Electoral) is the highest authority in electoral contentious matters, while the Superior Administrative Court ( Tribunal Superior Admin- istrativo ) has jurisdiction over disputes arising between the administration and private individu - als. The Constitutional Court is the supreme organ of interpretation and control of the constitutionality. Decisions rendered by the Constitutional Court are binding.
2. Restrictions on Foreign Investments 2.1 Approval of Foreign Investments Foreign investments do not require prior approv - al from the authorities except when a regulated sector requires regulatory approval both for domestic and foreign investment. In general, the Dominican Republic affords standard nation - al treatment to foreign investors. There are no exchange control restrictions and there is the right to free transfer of funds abroad. Foreign investment is regulated by Law No 16-95, which was enacted to promote foreign investment in the Dominican Republic and pro - vides equal treatment for foreign and local inves - tors. It includes attractive benefits for foreign investors. Under said Law, foreign investment is allowed in all sectors, with the exception of those linked to the disposal of certain hazardous materials or waste not produced in the country, activities that affect public health or the environ - ment, or the production of material and equip - ment linked to national defence and security. In order for foreign investors to obtain the ben - efits set out in Law No 16-95, interested parties must register their investment with the Prodo - minicana of the Export and Investment Center of the Dominican Republic (CEI-RD), after complet - ing their investment. 2.2 Procedure and Sanctions in the Event of Non-Compliance In the Dominican Republic, the registration of a foreign investment is done before the CEI-RD. Foreign investors investing without registration would not benefit from the incentives offered by the Law. Failure to register is not subject to sanctions.
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