Lens on Venezuela

LAW ON PROMOTION OF NON-OIL EXPORTS
The Law on Promotion of Non-Oil Exports was issued by the National Assembly and published in Official Gazette No. 6.824 Extraordinary, dated July 18, 2024 (the “Law”). The purpose of the Law is to establish and develop mechanisms
intended to facilitate the exportation of non-oil goods and services, generated in the Bolivarian Republic of Venezuela, in order to increase Venezuelan products’ participation and competitiveness in international markets, according to the
commitments and obligations undertaken in the frame of the multilateral, regional, and bilateral trade mechanisms and for the country’s integral and sustainable development.

Below are some of the most significant aspects of the Law:

1. FORMATION AND ACCESS TO THE INTERNATIONAL MARKET
The State will implement a national plan of integral formation that promotes an exporting vision, as well as education in the administrative, managerial, financial, technical-scientific and other important areas for the diversification of exports. Also, the National Executive must: i) Take the necessary actions to promote access to and exportable offer of non-oil goods and services, in order to further the commercialization of the same in the international markets; ii) Resort to different commercial promotion instruments; and iii) Implement measures and incentives that encourage the production and exportation of non-oil goods and services by the communes, small and medium-sized industries, and startups.

2. SIMPLIFICATION OF PROCESSES
The National Executive may suppress all administrative processes that are not essential for the development of exportation. To that end, the Executive may optimize and automate the administrative processes of the exporting activity, giving celerity to the compliance with the requirements established in the legal frame, facilitating the registration and control of the same by means of expeditious verification mechanisms, and establishing reasonable maximum periods of time for carrying out the processes; it may issue regulations on the information and communication systems and technologies applicable to the administrative processes relating to exports; and it may adopt mechanisms for supervision and control in relation to the simplification of the administrative processes, establishing the necessary periods of time for the implementation of the same.

3. Sole Foreign Trade Window
The Ventanilla Única de Comercio Exterior (VUCE) (Sole Foreign Trade Window) is created as a technological tool for the centralization and digital management of the information and documentation necessary for the exporting process. The natural or legal persons interested in exporting non-oil goods and services must be registered with the VUCE and obtain the relevant certificate, as an essential requirement to perform any operation in the area, and to have access to the benefits and incentives established in the Law.
The agencies and entities of the National Government with competence in exportation matters must incorporate into the platform the mechanisms allowing for the obtainment of the permits required for the exportation of non-oil goods and services, within a period of ninety (90) days following the entry into force of the Law. After said period of time, no authority may establish any permit that may not be processed through the VUCE as a requirement for exportation.

Rate for use of VUCE: The use of VUCE will be subject to the payment of a rate per each kind of process, in an amount of bolivars equivalent to up to one hundred and fifty (150) times the official rate of exchange of the currency with the highest value, as published by the Venezuelan Central Bank (VCB). The Ministry of Economy, Finance, and Foreign Trade will establish, by Resolution, the amount of the rate applicable to each type of process.

4. GENERAL DECREE OF EXPORT DUTIES
The National Executive will publish the “General Decree of Export Duties”, which will comprise all duties required by the agencies and entities of the Public Administration for the processes required in order to export non-oil goods and services. The President of the Republic may exempt the payment of the duties in relation to the processes and services required for the exportation.

5. TAX, FINANCIAL, AND OTHER INCENTIVES
The National Executive may establish tax incentives that reduce or remove the tax burden on the producers with non-oil exporting potential. For purposes of the Law, the incentives are:

Draw Back: The Executive will establish a procedure for determination, verification, certification, payment and competent authority in order to expeditiously carry out the Draw Back of non-oil exports. As an exception, the Executive may make the Draw Back of other national taxes for non-oil exportation.

Strategic production sectors: The President of the Republic may establish non-oil export strategic productive sectors with special economic incentive regimes, oriented to productive activities with a high national added value.

Credit insurance: The necessary measures to facilitate the establishment of a credit insurance mechanism for non-oil exportation will be adopted, with the purpose of covering the risks of lack of payment of the services or goods sold to abroad.

Financial incentive: The Executive will further public policies that facilitate access to financing for the acquisition of machinery, raw material, and consumable supplies that are intended to productive processes with non-oil exportation
purposes.

6. EXPORT PROMOTION AGENCY
The Agencia de Promoción de Exportaciones (APE) (Export Promotion Agency), assigned to the Ministry of Economy, Finance, and Foreign Trade, is created. It will be the competent level of authority for promoting the exports and advancing the positioning towards international markets of non-oil goods and services.
Although the Banco de Comercio Exterior will be the specialized financial institution for the financing of the exportation of non-oil goods and services, its functions in the area of promotion of exports will be assumed by the APE. Also, the National Fund for Exportation is created. It is assigned to and administered by the APE, with the purpose of financing the activities related to the promotion of the exportation of non-oil goods and services. Said entity will obtain its funds, among others, from a contribution of up to zero point five percent (0,5 %) of the value of the imports, payable upon the elapsing of thirty (30) days following the publication in the Official Gazette of the Resolution issued by the Ministry of Economy, Finance, and Foreign Trade. The contribution will be paid by the relevant importers, at the time of payment the import customs duty.

7. CENTRO NACIONAL DE COMERCIO EXTERIOR AND CORPORACIÓN VENEZOLANA DE COMERCIO EXTERIOR. (NATIONAL CENTER OF FOREIGN TRADE AND VENEZUELAN CORPORATION OF FOREIGN TRADE)
The Centro Nacional de Comercio Exterior (National Center of Foreign Trade) will be suppressed. Its functions will be assumed by the Ministry of the Popular Power for Economy, Finance and Foreign Trade.
Likewise, the functions in the area of centralization, simplification, and facilitation of exportation of non-oil goods and services, attributed to the Corporación Venezolana de Comercio Exterior (Venezuelan Corporation of Foreign Trade), will be assumed by the Ministry of Economy, Finance, and Foreign Trade.

The Law became effective upon publication in the Official Gazette.



Country

Venezuela

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