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IMPORT-EXPORT:
AMERICAN BUSINESS RESOURCES
Your complete guide on how to start and do business with the USA,
Central and South America. Information such as import/export regulations,
customs information, tax , currency, copyrights, etc.
BUSINESS
IN VENEZUELA
IV. IMPORTING FROM VENEZUELA
1.
General Statistics
In general terms, Venezuelan exports has relied on the so-called
"traditional exports" (basically, oil and oil-related
products, iron, coffee and cocoa).
Nevertheless, non-traditional exports have shifted from a total
value of 2,633 million U.S. $ in 1991 to 4,422 Million U.S. $ in
1994. By November 1995, total non traditional exports from Venezuela
reached an amount of 4,148 Million U.S. $.
The major non-traditional sector of Venezuelan exports is the sector
of common metals (38.1%) in 1995, with a growth of 11.0% compared
to the same period in 1994. In second sector of importance is chemical
products (16.1%), followed by materials for transportation, (9.8%),
food, beverage and tobacco industry (6.6%) and agricultural sector
(4.6%).
Major commercial partners for non-traditional exports in 1995 were
Colombia (27.1%), United States (21.5%), Japan (6.5%) and Mexico
(4.0%).
2.
Exporting Rules
In an attempt to boost the economy, the Venezuelan government has
developed a policy of expansion and incentive for the export of
non-traditional products, (i.e. those products not derived from
petroleum, iron or
aluminum as well as coffee and cocoa) which to date have represented
a small volume of exports. In this regard, export procedures which
are presently governed by custom house officers have been simplified.
However, prior government authorization may be required for the
exportation of certain products deemed as essential, which comprise
a very restricted number of items. In 1973, a fund to finance non-traditional
exports was created. Its main function was to grant loans with preferential
conditions to Venezuelan exporters (FINEXPO from its Spanish initials).
Today this institution has been replaced by the recently created
Bank of Foreign Trade, which was the same purposes but is a more
substantial entity.
There is a fiscal credit incentive for exports in the form of a
tax "draw-back", applicable to exporters whose production
has been taxed by Venezuela's consumption tax: The Luxury Consumption
and Gross Sales Law provides for a tax rate of 0% in order to allow
the exporter to recover their tax credits.
3.
Export Taxes
Depending either on the destination county of an exported product
or on the nature of the product, an exporter may be requested to
fulfill specific prerequisites. These may take the form of export
licenses (products comprising the "basic basket"); sanitary
certificates; or certificates of origin (particularly for products
that benefit from integration or GSP schemes abroad).
4.
U.S. Tariff Treatment
As member of WTO, Venezuela enjoys in principle a most-favored-nation
treatment for its export products.
However, some Venezuelan export products enjoy a preferential treatment
under the U.S. GSP scheme. Said scheme applies on a discretionary
basis, and the list of products comprised therein is subject to
annual
revision by the U.S. authorities. For products listed under GSP
scheme a certificate of origin is required.
5.
U.S. Antidumping or CVD Duties
Venezuela has been subject to certain procedures regarding antidumping
and countervailing duties, mainly with U.S., EC and Canada. The
most recent is that involving an administrative review on a certain
electrical conductor aluminum redraw rod exported from this country.
In this connection, the U.S. Department of Commerce reduced the
amount of CVD's formerly set. On the other hand, Venezuela has reluctantly
adhered to voluntary export agreements ("VER's") involving
steel exports negotiated with the U.S. on an
annual basis. However, the Government has emphasized its unwillingness
to subject Venezuelan exports to any restraint, other than those
arising from unfair commerce rules.
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