BRAZIL Law and Practice Contributed by: Ricardo Barretto Ferreira da Silva and Camila Sabino Del Sasso, Azevedo Sette Advogados
tary courts (at both state and federal levels), and electoral courts. The superior courts are at the top of the hierar - chy and do not review facts, only matters of law or constitutionality, ensuring uniformity in legal interpretation. The Superior Court of Justice ( Superior Tribunal de Justiça , or STJ) is the high - est court for non-constitutional federal matters (civil, administrative, criminal law, etc), whereas specialised courts such as the Superior Labour Court ( Tribunal Superior do Trabalho , or TST), the Superior Electoral Court ( Tribunal Superior Eleitoral , or TSE), and the Superior Military Court ( Superior Tribunal Militar , or STM) handle spe - cific areas of law. The Federal Supreme Court ( Supremo Tribunal Federal , or STF) is the highest court in Brazil and is responsible for safeguarding the Constitution. It deals with constitutional issues, especially those involving public authorities, laws, and fundamental rights, and handles Direct Actions for the Declaration of Unconstitutionality ( Ações Diretas de Inconstitucionalidade , or ADIs), habe - as corpus, and extraditions. 2. Restrictions on Foreign Investments 2.1 Approval of Foreign Investments Foreign investments are generally not subject to prior approval by the government authori - ties, except in specific economic sectors. How - ever, registration with the Central Bank of Brazil ( Banco Central do Brasil , or “BACEN”) is man - datory for all foreign direct investments through the Electronic Declaratory Registration – Foreign Direct Investment ( Sistema de Prestação de Informações de Capital Estrangeiro de Investi- mento Estrangeiro Direto , or ”SCE-IED”) system.
Although most foreign investments in Brazil do not require prior governmental approval, there are specific sectors and scenarios where foreign investors must obtain prior authorisation from the relevant authorities, as follows. • The acquisition of rural properties by foreign individuals residing in Brazil, foreign legal entities, or Brazilian companies under foreign control is subject to specific legal require - ments and prior authorisation, as established by applicable legislation (Law No 5,709/1971). • The acquisition of real estate in border areas is subject to prior approval by the National Security Council. There are also restrictions or limitations on for - eign capital participation in various regulated sectors, including: • financial institutions; • aviation; • ownership and management of newspapers, magazines, and other publications; • radio and television broadcasting; • telecommunications; and • mining activities. 2.2 Procedure and Sanctions in the Event of Non-Compliance The approval process may vary according to the sector, but generally involves the following steps: • preliminary legal and regulatory overview about the sector of investment and determi - nation of the ownership structure and level of foreign participation; • submission of an application to the compe - tent authority to request prior authorisation from the regulatory body, presenting the necessary documents; and
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