Legislative evolution
in Dominican Republic.
Lic. Jacqueline Dhimes
Dhimes & Marra / attorneys
at law
For decades, the Dominican Republic was regulated by out
dated laws and obsolete dispositions that dated from the 1800’s
and, in greater number, from the Dictator Rafael Leonidas Trujillo
who ruled the country from 1930 to 1962.
During the 90’s, the legislature
began the migration from this legal antiquity and new laws initiated
the process of reforms to foment the investments and to equip
the country with a more efficient legal framework.
During the Government of President Leonel
Fernandez, dependent technical Commissions of the Executive branch
are created to promote the creation, modification and adaptation
of important legal pieces. These commissions of support to the
reform of the State and justice worked towards the modernization
of the governmental structures for the application of modern techniques
applied to the commerce and the industry.
Without limitation or minimization of other
important of legislation, the following compendium illustrates
the previously expressed considerations about this process of
evolution and legal reforms, which involved the Dominican Republic
during recent years:
• During 1990, the Law the 8-90 on
promotion for the Establishment of new Free Zones and the growth
of the existing was approved. This Law provides the regime of
the Free Zones of Exportation that are within geographic areas
with a customs and exoneration regime of a 100% of the most important
taxes of our tributary system. It has constituted an important
source of jobs mainly in the area of the manufacture and at the
present time as a result of this legislative advance and of its
maintenance, the country counts on more of 52 free zones industrial
parks that destine the production of goods and services to the
foreign market generating important sources of uses for the Dominican
population;
• During 1992, two important legal
bodies were approved: a new Tributary Code which derogates the
old fiscal structures that did not assure the fulfilment of tributary
obligations and, which has been modified twice in order to fortify
the new fiscal system and to increase the tax collections. The
other important legal piece was the Labour Code that, although
countermanded an old system, in our opinion constitutes a source
of excessive protections of the workers’ rights that in
most of occasions is translated in creation of inefficient jobs
that affect Dominican enterprise dynamics.
• During 1994, - based on the Convention
on the Children Rights approved by the General Assembly of the
Nations United in 1989- Law 14-94, or Code for the Protection
of Children, and Adolescents was published and are adopted new
administrative and judicial structures to create the institutional
bases and procedures to offer important integral protection to
this unprotected segment of the population.
• In 1995, the Law of Foreign Investment
introduced important new features to the previous system among
which we can mention the elimination of old prohibited areas of
investment and extending the spectrum of sectors for the installation
of foreign companies or capitals, contributing to the fortification
and the security of the investors. Also, old Executive Order 2245
prohibited the purchase of buildings by foreigners without the
authorization of the Executive Authority was repealed, therefore
citizens of other nationalities can acquire buildings without
authorizations of the President of the Republic.
• In 1997 a new Electoral Law is
approved along with the Law of Reformation of the Public Enterprise.
This piece was the turn out of an arduous work and strong political
and social will to change the legal form of the public enterprises.
It was an attempt to privatize some public services and to eliminate
the absolutist power of the State in companies of State Capital,
to benefit the population by privatizing managements and improving
the services.
• Law 153 of April 1998, on Telecommunications,
derogates the old Law of 1966, regulating, under principles of
competitiveness and harmony, the sector of the telecommunications,
to contribute to the socioeconomic expansion of the nation and,
to improve the services in benefit of the population. This Law
combines efforts for the development of activities of the private
sector and to promote the loyal, effective and sustainable competition
in a market.
• Year 2000 was of importance for
the industrial, artistic and literary creators: Law 20-00 on Industrial
Property protects the creators of distinguishing signs - commercial
trade names, logotypes, slogans- and places the country in the
vanguard of the legislations of this type and, observing the Conventions
and International Treaties on industrial property. Also, the new
Law of Protection to the Rights of Author was approved and includes
new mechanisms against the usurpation practices, falsification,
reproduction, imitation and other actions that attempt against
the intellectual creations of the authors. Another important Law
was the 64-00, General Law of Environment and Natural Resources
that protect and guarantee the conservation of the ecosystems
and other elements that allows the population to express its complaints
on the commercial and industrial establishments without adequate
mechanisms for the protection of the flora and fauna that in many
occasions cause direct damages not only to the ecosystem but to
the population also.
• Year 2001 was dominated by the
Reforms of the Health Sector and Social Security. After a long
process initiated during the Government of President Leonel Fernandez
with the auspices of the World Bank and the Inter-American Development
Bank, the General Law of Health and the Law that creates the New
Dominican System of Social Security was passed. Both laws sustained
the autonomic principles and state decentralization which pursue
the fortification of the governing roles of the authorities and
to separate the functions of benefit of services of health and
protection of the risks of oldness, incapacity, disease and survival,
etcetera.
• Another important Law issued in
2001 was the General Law of Electricity, which revolutionizes
the electrical sector when organizing the generation, distribution,
sale and provision of electrical energy, and creating new regulatory
structures of the sector that was dominated during many decades
by the company of state capital denominated Dominican Corporation
of Electricity (CDE). This legal piece of historical importance
and object of ample and sounded debates by all the sectors of
the economy and the governments, at the present time has received
greater use with the relations with foreign private companies
distributors of energy.
• In 2002, the Law of Mercantile
Registry was approved and modifies the procedures of publicity
for the incorporation and operations of commercial societies,
establishing the obligatory registry before the Chambers of Commerce
and Production of the different jurisdictions. The same year,
Law 1-02 entered into force on Disloyal Practices of Commerce
and Measures of Safeguard (Antidumping).
• Recently, the new Monetary and
Financial Code reorganized the banking structures and of the different
organizations that take part in the financial intermediation and,
fortify the role of regulation or rectory of the state organisms
in charge of the application of the Code approved. This Code was
the result of a true battle of more than 10 years between practically
all the sectors of the economy. Also it was promulgated September
11, 2002, new Law of Insurances and Finances of the Dominican
Republic that countermanded the old regime that dated from the
1971 and which was not agreed with the new systems of protection
of damages arisen in modern times.
The evolutionary process continues. The
population and the different groups and enterprise and social
associations continue promoting the elaboration of proposals and
modifications to avoid curtailing this evolutionary process initiated,
tending to equip and to maintain to the Dominican Republic updated
with modern and effective legal instruments to stimulate the economy
and the security in the investments.