2005News

Supreme Court on border companies

The entire western part of the Dominican Republic celebrated the Supreme Court decision that upheld the constitutionality of Law 28-01 that exempts all taxes to companies setting up operation in the seven provinces that border Haiti. The initial case had been brought before the Supreme Court by the Dominican Association of Cement Producers that objected to the incentives given to the Colombian company Cementos Andino that set up operations in Pedernales. Law 28-01 also concerned the three most important importers of appliances, Radiocentro, Lama and Corripio, that invested into a public relations campaign to discredit the dozen or so companies that are now selling air conditioners, stoves, refrigerators, television sets and even disposable diapers to the local consumers, after minimal assembly in the border plants. The Supreme Court decision validates the law that enables tax free operations in the area.